Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pensions Teachers topic
No spam. Unsubscribe anytime.
Teachers Retirement System posts actuarial gain; funded status at 74.26%
Summary
Shawn Graham, executive director of the Montana Teachers Retirement System, told the Senate committee TRS earned an 8.89% return in FY24, improving funded status to 74.26% with an amortization period of 21 years; the TRS board is carrying two bills including a housekeeping bill and a university supplemental contribution measure.
Shawn Graham, executive director of the Montana Teachers Retirement System, told the Senate State Administration Committee on Jan. 14 that TRS’s consolidated assets stood at about $5.3 billion and that the system’s funded status improved to 74.26% as of the July 1, 2024, valuation.
Graham said TRS earned a market return of 8.89% for fiscal year 2024, above the plan’s assumed rate of 7.3%, which produced an actuarial gain that raised the funded ratio and shortened the amortization period from 24 years to 21 years. The board adopted the valuation results in October 2024; TRS is conducting an actuarial audit that Graham said Milliman is performing on the system’s contract actuary.
TRS covers teachers, administrators and other educational-service employees in public K–12 districts, community colleges, some state agencies and a limited number of university-system positions. Graham reported roughly 20,000 active members, about 8,500 inactive members with money on account, and around 18,000 retirees receiving monthly benefits. The system serves about 365 employers and employs 23 full‑time staff.
Graham described funding flows for fiscal year 2024: employee contributions at 8.15% of compensation, employer (school district) contributions at 9.47%, and an additional state contribution of 2.49% plus a fixed $25 million that is deposited each July 1. TRS received about $255 million in contributions in 2024 while paying about $444 million in benefits; Graham said about two-thirds of benefit payments are financed by investment earnings.
On legislative priorities, Graham said the TRS board is carrying two bills this session: House Bill 67, a housekeeping measure focused on administrative efficiencies and tax qualification; and House Bill 51, a University System supplemental contribution bill that has previously been heard but has not advanced into law in prior sessions.
Graham also described the board’s schedule for actuarial work: TRS conducts an experience study at least every four years and an actuarial audit every five years. He said the next experience study will begin based on the July 1, 2025, valuation with results expected in May 2026.
The committee asked several questions about the nature of actuarial studies and the drivers of recent funding improvement; Graham cited favorable investment returns, including the FY21 return he described as unusually high (27.8% in FY21), as a significant factor.
No committee vote was taken on the TRS presentation during the session.
