STATEHOUSE (Sept. 24, 2026) –State Rep. Heath VanNatter (R-Kokomo) applauded the announcement at today’sInterim Study Committee on Pension Management Oversight that Indiana’s Pre-1996 Teachers’ Retirement Fund is expected to be fully funded a decade earlier than projected.
The Pre-96 fund supports pension payments for Hoosier teachers hired before July 1, 1995. It was designed to be a “pay-as-you-go” model where benefits are paid out as they come due. The fund supports nearly 52,000 retired teachers and will support approximately 3,900 additional currently active teachers.
VanNatter, who chairs the standingHouse Employment, Labor and Pensions Committee, said additional payments on top of the annual appropriations will make the fund fully vested by 2028 instead of ’38, saving future taxpayers the need to cover over $1 billion annually in defined benefit costs.
“Hoosier teachers dedicated their careers to educating our children, and they deserve the peace of mind that comes with knowing their retirement benefits are secure,” said VanNatter, who is a member of the Interim Study Committee on Pension Management Oversight. “Indiana has taken a responsible, committed approach to managing these obligations, ensuring we keep our promises to teachers while protecting future generations of Hoosier taxpayers.”
The General Assembly earmarked nearly $14 billion to the Pre-96 fund in the last decade. More than $4 billion of that was additional contributions. Those investments have saved Hoosier K-12 schools more than $14 billion over the last decade.
“Sound fiscal management is a critical part of maintaining Indiana’s status as a state with low debt and dependable regulations,” VanNatter said. “I remain committed to making responsible decisions today that protect our teachers and taxpayers tomorrow.”
Indiana continues to maintain one of the lowest debt burdens among all states. According to S&P Global Ratings, Indiana has thefourth-lowest net tax-supported debt per capita in the country.