The financial system of the pension system of Georgia’s teachers worth 100 billion dollars

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When Georgia was hit by the COVID-19 pandemic in March, the stock market crashed, and with it the assets of the pension system, on which nearly 400,000 government teachers and retirees depend.

Buster Evans suffers from stomach pain as billions of dollars are wasted on paperwork. But after nearly a year and a half, TRS is now worth nearly $ 103 billion, and from that low, about 58% of excess inventory and other investment has grown.

Abnormal growth can have political implications. This could complicate the discussion in the General Assembly in 2022 on changes to the pension system, which has been under pressure from some Republican legislators in recent years.

School principal Georgia Evans said: “The problem of pension reform will never go away.” He added that investment in TRS for the fiscal year 2021 ending June 30 will be the fastest-growing since 1986. “It’s really helpful in a year like this,” he said.

The market has guaranteed the economic strength of the system, making it higher than the pensions of many other teachers across the country.

But just a few years ago, the government increased taxpayer payments to the system by almost $ 600 million, which also brought in huge tax revenues in 2017 and 2018. This increase in tax revenues has increased the efforts of some legislators to consider the changes. A system that allows new teachers to receive about 401 (k) savings and investment funds from the government instead of a pension.

Stephen Owens, Georgia’s top political budget and analyst, said the latest data suggests there will be a lot of pressure to change these retirement plans, which teachers strongly support. “There are many private pensions,” he said. If we don’t have to pay government officials as teachers, we have to pay. “