Pension Note, House Floor Amendment No. 2 (Government Forecasting & Accountability)
HB 5196, as amended by HA 2, would extend the Accelerated Pension Buyout programs for two additional years, through June 30, 2028, and authorize an additional $1 billion in State Pension Obligation Acceleration Bonds to pay for the buyouts, bringing the total bond authorization for these programs to $3.2 billion. According to SERS, SURS, and TRS, the programs have resulted in an estimated $2.6 billion reduction in liabilities and required approximately $2 billion in buyout payments, based on the most recently provided data from each system (ranging from June 2025 to January 2026). Given the experience of the buyout programs to date, it may be reasonable to anticipate similar participation patterns during the extended period under HA 2, which could help reduce the liability. However, estimating the precise reduction in pension liabilities is uncertain by nature, as participation is voluntary and individual member decisions play a significant role in determining overall program impact.