The Teachers’ Retirement System of the State of Kentucky (TRS) will receive full funding in the 2022-24 biennial budget approved recently by the General Assembly. This includes more than $1.36 billion over the two years to meet the actuarially required contribution for the Retirement Annuity Trust, which is separate from education appropriations of about $900 million that come to TRS in salary contributions.
The two years of the budget will be the seventh and eighth straight years of full or nearly full annuity funding.
The budget also includes $149 million for the state’s statutory contribution for both years for under-65 group health insurance under the 2010 Shared Responsibility law.
Additionally, the legislature appropriated $479.2 million to pay off liabilities for certain previously awarded benefits that had been amortized over several years. The budget as well provides $78 million up front for sick leave-related annuity liabilities projected to occur from retirements in the next two years.
“The continued full funding for teachers’ retirement benefits represented in these appropriations is immensely important and appreciated,” Executive Secretary Gary Harbin said. “We’re thankful that every version of the budget presented during this session provided full funding for retiree annuities and health insurance. This tremendous support keeps TRS on the path toward achieving actuarial funded ratios of 100%.”
(Posted April 2022)