Presenter says state retirement plans are on track while noting COLA caps, rehiring limits and Social Security changes

Noah Pringle, a staff member, told a legislative committee that the state’s major public retirement plans have strengthened and are projected to move into combined surpluses over the budget outlook period, but he highlighted several limits and recent legal and policy changes that affect retirees.

"Around 8.8% per year. And this along with, you know, consistently con contributing to the pension plan, state and employers, at levels at or near that was recommended by the state actuary and plans, the growth in plan membership has led to the plan's overall financial condition continuing to strengthen," Pringle said, describing recent contribution and salary-base growth that increased total contributions to the plans.

Pringle said the Pension Funding Council’s 2021 decision to lower the assumed investment rate of return from 7.5% to 7% increased measured liabilities, while a 2020 legislative directive to deposit $250 million into the Teachers' Retirement System (TRS) Plan 1 fund reduced that plan’s unfunded liability. He told the committee that under current projections the combined plans would move from roughly even to a…