Regular Session News #8: ORP bill and proposed constitutional amendments head to Senate; task force to study phased retirement for postsecondary institutions

This week, the full House passed the following bills affecting TRSL that will now head to the Senate for consideration.
 
Optional Retirement Plan (ORP)

House Bill 24 (Rep. Bacala) would make changes to the terms of the optional retirement plan (ORP), a defined contribution plan available to unclassified faculty and staff in higher education. Read a detailed description of HB 24 provisions in our May 6 Legislative Update. HB 24 was referred to the Senate Retirement Committee.
 
Additional Payment toward Unfunded Accrued Liability (UAL)/Teacher Salaries

House Bill 473 (Rep. Emerson), a proposed constitutional amendment, would apply the balance in three educational trust funds to make a one-time payment to erase a portion of the retirement debt owed to TRSL, also known as the unfunded accrued liability (UAL). The one-time payment would pay off TRSL’s two oldest debt schedules, thereby, reducing the employer contribution rate for TRSL-participating employers. 

House Bill 466 (Rep. Carlson), a companion bill to HB 473, would require the savings realized from the reduced employer contribution rate for TRSL-participating employers to be used for permanent salary increases for teachers ($2,000) and school personnel ($1,000) beginning in the 2027-2028 school year. HB 466 includes provisions for state funding if the realized savings for any school district from HB 473 are insufficient to cover the raises. It also establishes specific purposes for which school systems must use any realized savings that exceed what is needed to fund the pay increases.
 
HB 473 was referred to the Senate Finance Committee, and HB 466 was referred to the Senate Education Committee.
 
Mineral Revenue Dedication to Initial Unfunded Accrued Liability (IUAL)
 
House Bill 678 (Rep. Emerson) would remove several constitutional dedications of mineral revenues, including dedications to pay down TRSL’s initial unfunded accrued liability (IUAL), which is debt that was accrued before June 30, 1988. HB 678 was referred to the Senate Finance Committee.

The House Appropriations Committee favorably reported House Bill 460 (Rep. McFarland). HB 460 was amended to remove a proposed supplemental appropriation of nonrecurring state revenue for payment toward TRSL’s UAL. A separate supplemental appropriation to TRSL of certain recurring revenues remains in the bill. HB 460 will be considered by the full House today.