Rep. Thompson: Indiana's Pre-1996 Teachers' Retirement Fund to be fully funded a decade earlier than projected

STATEHOUSE (Sept. 24, 2026) – State Rep. Jeff Thompson (R-Lizton) applauded the announcement at today's Interim Study Committee on Pension Management Oversight that Indiana's Pre-1996 Teachers' Retirement Fund is expected to be fully funded a decade earlier than projected.

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.

Thompson, who chairs the pension committee, 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.

"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."

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.

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.

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State Rep. Jeff Thompson (R-Lizton) represents House District 28,
which includes portions of Boone, Hendricks and Montgomery counties.
Click here to download a high-resolution photo.

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