The actuary for the Teacher Retirement System has not prepared an assessment of the actuarial impact of the bill.

The sections relating to the pass-through will have no actuarial impact.  

The provision relating to providing health insurance to certain future retirees (roughly those who are under the age of 65 and do not meet the rule of 80) could have a significant actuarial impact on the TRS retirement fund. The bill would have these certain retirees pay the full cost of insurance, balanced out by any appropriations made for this purpose. If no appropriations for this purpose are made, there will be no significant actuarial impact. However, if this provision were fully funded so that these certain retirees paid the same subsidized costs as other retirees, the actuarial impact could be significant, up to $100 million a year, annually into the future. 

TRS has estimated that if a public school teacher puts off retirement for 3 years, that is a $50,000 gain to the system, and if they retire 3 years earlier than expected, there will be a $50,000 loss to the system. It is estimated by TRS that 25 percent of retirees either use early retirement, or purchase service. It is unknown if this is the percentage of retirees who are affected by this provision, and we use 20 percent as an estimate. If 20 percent of each year's public school retirees (estimated to be 10,000 or greater) will be affected by this provision, and the subsidization of these retirees' health care moved up their retirement by 3 years, then there would be an annual $100 million actuarial loss to the system. There may be a one-time actuarial gain to the system by some active employees delaying retirement due to this provision, however since it is dependent upon an unknown appropriation any gain would appear to be minimal.