UPDATE

RETIREMENT "CREDIT" ISSUE

October 12, 2010

In July, OREA reported on the recent failure of the state to provide approximately $35 million in annual funding to the Teachers’ Retirement System to pay for the active educator retirement “credit,” a program that for the last 12 years has paid a portion of retirement contributions for active teachers.  The State Board of Education and Republican leaders of the House and Senate have debated publicly over who is responsible for the funding failure, each blaming the other.

OREA’s position on the matter is very clear.  It really doesn’t matter who is responsible for the problem, but we expect the $35 million to be provided to TRS, the sooner the better.  That appears to be the position of the TRS Board of Trustees as well.  In its regular August meeting, the Board authorized Executive Director James Wilbanks to seek an opinion from Attorney General Drew Edmondson’s office to serve as guidance for the Board to proceed in seeking payment of the funds.  OREA is fully supportive of the Board of Trustees on this matter, and will take whatever action is deemed appropriate to assist.

In the meantime, OREA members are urged to contact their legislators to express dissatisfaction regarding the retirement “credit” issue.  State dedicated tax revenues to TRS were down approximately $35 million during the 2009-10 fiscal year (more than $50 million over the last two years), and the system can ill afford the loss of more revenue when funding demands are greater than ever.  Call the OREA office if you have questions or comments on this issue.