Hendricks County lawmakers: Indiana’s Pre-1996 Teachers’ Retirement Fund to be fully funded a decade earlier than projected

STATEHOUSE (Oct. 9, 2026) – Hendricks County legislators are applauding the announcement at a recent Interim Study Committee on Pension Management Oversight meeting that Indiana’s Pre-1996 Teachers’ Retirement Fund is expected to be fully funded a decade earlier than projected.

State Rep. Jeff Thompson (R-Lizton), who chairs the pension committee, said the Pre-96 fund supports pension payments for Hoosier teachers hired before July 1, 1995. It was designed to be a “pay-as-you-go” model where benefits are paid out as they come due. The fund supports nearly 52,000 retired teachers and will support approximately 3,900 additional currently active teachers.

“Fiscal responsibility and smart spending decisions have lowered the debt burden on Hoosier taxpayers, meaning fewer tax dollars are tied up on paying for past obligations,” said Thompson, who also chairs the House Ways and Means Committee. “Indiana continues to put taxpayers first, fulfill our commitments and keep the state on strong fiscal footing.”

State Rep. Greg Steuerwald (R-Avon) said additional payments on top of the annual appropriations will make the fund fully vested by 2028 instead of ’38, saving future taxpayers the need to cover over $1 billion annually in defined benefit costs.

“House Republicans have made a committed effort to properly fund this account so these teachers can rely on their pensions and Hoosiers can be confident their tax dollars are invested wisely,” Steuerwald said. “To hear this fund is reaching full vestment so much earlier than expected is an incredible achievement for our state and huge savings for Indiana taxpayers.”

State Rep. Becky Cash (R-Zionsville) said the General Assembly earmarked nearly $14 billion to the Pre-96 fund in the last decade. More than $4 billion of that was additional contributions. Those investments have saved Hoosier K-12 schools more than $14 billion over the last decade.

“Teachers spend their careers investing in Hoosier children, and they deserve to know the state is keeping its commitment to them,” said Cash, who serves on the House Education Committee. “Reaching full funding ahead of schedule provides greater certainty for thousands of teachers and reinforces our commitment to honoring the benefits they’ve earned through years of service.”

State Rep. Craig Haggard (R-Mooresville) said Indiana continues to maintain one of the lowest debt burdens among all states. According to S&P Global Ratings, Indiana has the fourth-lowest net tax-supported debt per capita in the country.

“Paying off this commitment a decade ahead of schedule shows how strong fiscal stewardship benefits the state and all Hoosiers,” Haggard said “This is a major win for Indiana that has saved schools and taxpayers billions of dollars while providing more secure retirements for our teachers.”