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As illustrated by the following quote from the fiscal note for this bill, the TRS is already in trouble and need of structural repair: "According to the TRS actuary, and based on the February 28, 2017 actuarial valuation update, the bill would increase the unfunded actuarial accrued liability (UAAL) by $1.29 billion, decrease the funded ratio from 79.5 percent to 78.9 percent, and increase the funding period from 34.3 years to 38.1 years."
This bill would violate our limited government principle by adding unfunded liabilities to the TRS which would further destabilize the already troubled system. We oppose HB 80.
It is our understanding that an amendment may be offered to make a COLA under this legislation contingent on the TRS first being actuarially sound and continuing to be actuarially sound after implementation of the COLA. We would support such an amendment.