Pension Note (Government Forecasting & Accountability)
HB 2564, as engrossed exempts school districts from having to compensate TRS for salary increases over 6% that compose a teachers’ final average salary (FAS), contingent upon it being the result of “overload work” on or after July 1, 2025. Overload work is defined as summer school or educational work in excess of the standard number of classes assigned to a teacher. The fiscal impact of HB 2564, as engrossed, is commensurate with the number of teachers engaged in overload work in any given school year. To the extent that exemptions to the FAS Cap would be granted that would otherwise not be allowed under current law, there would be a slight negative impact upon TRS. As of its June 2024 valuation, TRS has an unfunded liability of $82.9 billion, and a funding ratio of 46.3%.