SB159 Summary

• Creates an irrevocable trust named the "Education Retirees' Trust Fund for Cost-of-Living Adjustments" to be managed by the Teachers' Retirement System Board of Control.

• Establishes funding sources including legislative appropriations, investment income, gifts, grants, and contributions to provide cost-of-living adjustments or one-time bonuses to retired education employees and beneficiaries.

• Grants trustees authority to invest trust assets in permitted investments, employ advisors and consultants, and amend the trust for tax advantages or accounting compliance without conflicts to legislative intent.

• Exempts all trust assets and income from state and local taxation and protects assets from creditor claims, bankruptcy, and attachment while providing trustees immunity from personal liability except for willful misconduct.

• Requires annual financial statements prepared under generally accepted accounting principles and independent audits; ensures personnel and vendors hired reflect the state's racial and ethnic diversity.