SB350 Summary

• Creates a separate COLA Trust Fund for the Teachers' Retirement System in the State Treasury as an irrevocable permanent trust to fund cost-of-living adjustments for education retirees and beneficiaries.

• Designates the Teachers' Retirement System Board of Control members as trustees who manage and control the trust, serve without compensation, and may be reimbursed for reasonable expenses.

• Permits trust funding through legislative appropriations, investment income, gifts, grants, contributions, and other lawful sources, with assets restricted to acquiring permitted investments, paying administrative expenses, and providing COLA benefits.

• Exempts trust assets and income from state taxation and creditor claims, prohibits legislative appropriation of trust assets, and requires annual financial statements and independent audits prepared according to generally accepted accounting principles.

• Takes effect immediately upon passage and gubernatorial approval, clarifies that the trust does not create new COLA benefit rights beyond those previously granted by the pension plan, and requires trust personnel and vendors to reflect state diversity.