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Hearing held on bill to let certain school staff opt into Teacher Retirement System; actuarial study shows limited state cost
Summary
Senate Bill 209, presented by Senator Goodman, would give eligible public‑school employees a one‑time irrevocable option to join the Teacher Retirement System; the actuarial study presented shows no cost to TRS, local employer costs (~0.02% increase, cited as ~ $300/month per employee) and an estimate of roughly 11,000 potential electors producing about $21.1M annual normal-cost increase.
Senator Goodman presented Senate Bill 209 for a committee hearing. The bill would give certain public-school employees who currently participate in the Public School Employees Retirement System (PSERS) a one‑time, irrevocable option to switch into the Teacher Retirement System (TRS). The sponsor said the idea came from local superintendents struggling to retain bus drivers, custodians, cafeteria staff and other classified employees who typically receive low retirement benefits under existing arrangements.
The sponsor asked actuarial and legal staff to clarify drafting and financial effects. Staff told the committee the actuarial exhibit shows no cost to the Teacher Retirement System but does show increased costs to local school systems. Staff cited an employer contribution-rate increase of approximately 0.02 percent and an illustrative local cost described by the sponsor as roughly "$300 a month" for an affected employee. An estimate in the actuarial presentation suggested about 11,000 employees might elect to switch, producing an annual increase in normal cost on the order of $21.1 million.
Committee members sought details about eligibility and practical effects. Staff said the bill, as discussed, would require participating employees to be at least half‑time to qualify. Staff also compared typical retirement outcomes: an example calculation showed a long‑service, low‑salary employee could see pension amounts roughly double under TRS but would also face higher contributions (staff corrected an earlier figure and explained an employee contribution of 6 percent would be more substantial than current contributions).
Members asked whether employees in systems that opted out of Social Security would face Medicare or other coverage gaps; staff said they would need to research specifics and that systems that had opted out would generally have a qualified Social Security replacement plan in place.
Edward Lindsey of Dentons, representing DeKalb County School System, testified in support and offered to provide DeKalb-specific counts before the next meeting. Senators asked for additional information and indicated the bill would return for further action and possible amendment.
The committee did not vote on SB 209 during this hearing; sponsors and staff scheduled follow-up drafting and review.
