Audit Finds University System Shorted the Teacher Retirement Fund
The University System of Georgia has shorted its employees’ pension fund over $600 million since it stopped making legally required payments to the fund over a decade ago, according to a state audit.
When the Optional Retirement Program, a 401(k) plan for USG employees, was created in 1990, legislation required the USG to make two types of annual payments to the Teacher Retirement System to make up for fewer employees paying into the TRS pension fund. Roughly 400,000 current and former teachers, librarians and university faculty and staff are part of TRS.
One of those required payments has not been made since 2008, equaling an estimated $600 million to $660 million, according to the audit. The other payment has never been made, and state auditors don’t know the amount. The audit also found that USG shorted Optional Retirement Program members $12.6 million in fiscal year 2007.
The first payment required by a 2010 law requires USG to make an unfunded accrued liability payment to the TRS equal to the amount that would have been made for ORP employees if they joined TRS. But TRS never billed USG for those payments from 2008–2018.
Read more: https://flagpole.com/news/news-features/2019/04/03/audit-finds-university-system-shorted-the-teacher-retirement-fund