The bill would modify public school financing and would provide a compensation increase to certain school employees. Except as otherwise stated, the bill would be effective September 1, 2019.

According to the Teacher Retirement System (TRS), the actuarial impact of the bill on the pension fund could not be estimated, as actual salary increases resulting from the bill are unknown. Additionally, the bill would shift costs between the State and certain employers as it relates to the statutory minimum. Salary increases under the bill would provide for increased revenue to the pension fund, but a significant change to the salary levels would impact the initial actuarial accrued liability.

TRS further notes that the bill may also provide a slight increase in contributions paid to the pension fund under the current law that requires employers that do not participate in social security to contribute 1.5 percent. Since the bill would reduce the number of employees subject to the minimum salary schedule, the 1.5 percent rate of contribution would apply to an employee's full salary.

TRS stated that any administrative costs to TRS could be absorbed within existing resources.

SOURCE
E-mail correspondence from TRS May 23, 2019.