SB299 Summary

• Creates the Education Retirees' Trust Fund for Cost-of-Living Adjustments as an irrevocable trust managed by the Teachers' Retirement System Board of Control to provide cost-of-living adjustments to retired education employees.

• Funds the trust through legislative appropriations, 25% of net lottery proceeds dedicated to the Education Trust Fund, investment income, gifts, grants, and other permitted sources.

• Requires trustees to report trust asset values annually to the Teachers' Retirement System actuary; when assets are sufficient to fund a one percent or greater cost-of-living adjustment, funds transfer to the system effective the following October 1.

• Grants trustees broad powers to manage trust investments, enter contracts, employ advisors and consultants, and amend the trust document if consistent with legislative intent and for tax advantages or accounting standards compliance.

• Becomes effective upon passage and approval by the Governor, contingent upon voter ratification of a constitutional amendment authorizing a state lottery in the 2019 Regular Session.