All school districts and participating charter schools would see the same percentage reduction for their teachers that are members of the ’96 Fund. The impact as a total percent of a school district’s total teacher compensation may vary slightly since the mix of teachers who are members between TRF Pre-‘96 and TRF ’96 may be slightly different.
TRF’s Pre-‘96 fund is a pay-as-you-go plan. This plan is funded by the General Assembly, not employers. The Indiana General Assembly recognized the potential risks of the pay-as-you-go approach and, in 1995, established the Pension Stabilization Fund (PSF). At that time, the pre ’96 plan was closed to new entrants and the actuarially funded TRF ‘96 Fund was established for all new members.