Mishler: Pre-1996 Teachers' Retirement Fund to be fully funded nearly 10 years ahead of schedule

Friday, September 25, 2026 at 3:00 AM

By Kathy Bottorff

Thanks to the leadership and fiscal discipline of the Senate Republican caucus, the Pre-1996 Teachers' Retirement Fund will be fully funded nearly 10 years ahead of schedule, according to State Senator Ryan Mishler (R-Mishawaka), chair of the Senate Committee on Appropriations.

In 2018, the expected payoff date for the Fund's unfunded liability was 2037. However, after Senate Republicans aggressively contributed $4.3 billion in extra payments, the state is now projected to pay off the liability in fiscal year 2028 with an estimated $160 million appropriation. Eliminating the unfunded liability provides the General Assembly with financial freedom and fiscal flexibility heading into the 2027 budget session.

"Paying off the Pre-1996 unfunded liability has consistently been a huge priority for our caucus," Mishler said. "It's a big win for Indiana and an achievement many other states can't attain. This is a result of our commitment to pass balanced budgets, work within our means, and keep our financial promises to retired teachers in our state. As we approach the 2027 budget session, we must remain disciplined to keep Indiana in a strong fiscal position."

In addition to the regular $1 billion in annual payments, Senate Republicans spearheaded a series of extra contributions to accelerate the payoff:

The 2021 budget appropriated $600 million to the Pre-96 TRF.
In 2022, Indiana's reserve amounts triggered the sending of $545 million to the Fund.
A law passed during the 2022 session prompted $2.5 billion to be sent to the Fund to pay down the pension liability in fiscal year 2023.
The 2023 budget appropriated $700 million to the Fund.

The Pre-1996 Teachers' Retirement Fund is the state's only pay-as-you-go pension plan and is managed by the Indiana Public Retirement System (INPRS) for public school teachers hired before 1996. Senate Republicans began pursuing an aggressive buydown of the plan in 2021 to ensure all of the state's pension funds remain healthy going forward.