State Retirement System

Shutting Down TERI

H. 4479:  This bill seeks to close the TERI program to new participants and to repeal the legislation after five years.  As we’ve pointed out many times before, the TERI program – a program that allows state employees to start drawing retirement while still working and drawing salaries – is in large measure to blame for the State Retirement System’s $17 billion unfunded liability. Ending the program ought to be a priority. It’s understandable that lawmakers don’t want to take the political risk of abolishing TERI. See also H. 4453, which seeks to close the TERI program to new participants on July 1, 2012, and to repeal the legislation after five years, as of July 1, 2017.

Passing the Buck on TERI

S. 1027:  This bill puts forth a statewide advisory referendum regarding TERI held at the same time as the 2012 general election  – in effect allowing lawmakers to avoid blame for ending a program that’s popular with many state employees. Surely, though, the financial sustainability of state government should be a matter lawmakers are capable of dealing with themselves.