As previously reported, the House and Senate have both adopted a shift of teacher pensions as a part of their FY 2013 budget plan. The Senate plan shifts the costs over four-years, $68.3 million in FY 2013 growing to $254.8 million in FY 2016. The House plan shifts the costs over three, $137 million in FY 2013 growing to $261 million in FY 2015.
Both plans base the shift on the “normal” costs of the system (the costs of retirement for active employees, which does not include unfunded, accrued liabilities). As reported by the Gazette:
A shift of some of the state’s teacher pension costs might be inevitable for counties, but the $19 billion unfunded liability will likely remain a burden for the state.
However, the outcome is not yet clear.
Whether the full unfunded liability remains with the state will ultimately depend on a final ruling by the Governmental Accounting Standards Board and how it interprets the law, said Michael Rubenstein of the state Department of Legislative Services.