Coming to the ballot in May of 2026:

Voters will again be asked whether funds in three education trust accounts should be used to pay retirement debt to create savings for employers and fund permanent teacher pay increases.

Here is how it would work:

Act 222 (formerly House Bill 473 by Representative Emerson) is the Constitutional Amendment that calls for the balance in three constitutionally-protected education trust funds to be used to erase a portion of the Teachers’ Retirement System’s (TRSL) Unfunded Accrued Liability (UAL), which is retirement debt owed to TRSL. Because the State has chosen to pay down the UAL by making it part of the annual employer contribution rate, employer costs would decrease.

Act 366 (formerly House Bill 466 by Representative Carlson) is a companion bill to House Bill 473 that directs the savings from the reduced employer contribution rate to be used to make permanent salary increases of $2,250 for teachers and $1,125 for school personnel beginning in the 2026-2027 school year if the constitutional amendment passes.

LRTA Supports:

• This nearly $2 billion payment significantly pays down the original retirement debt (UAL)
• Paying down the debt will cause our funding level to jump from approximately 76% to nearly 85%
• A higher funding level reduces future attacks on our current Defined Benefit plan
• This is standalone legislation with no negative tax reform provisions attached to the amendment as presented last spring
• The cost savings and reduction of debt will provide enough funding to convert the last two teacher stipends of $1000 each to a permanent pay increment avoiding lowering teacher salaries. There is also an additional $200 annually added to the total increase
• Making this large of a contribution to the IAUL is an acknowledgement by the state that it is their responsibility to pay off the state retirement debt

VOTE YES to the Constitutional Amendment in May 2026