THE TRUTH - SUMMARY

The Teachers' Retirement System of Oklahoma is one of the five worst-funded state-run pension plans in the country.

As of June 30, 1998, the annual actuarial valuation of the Teachers' Retirement System reported assets of $4.085 billion and liabilities of $8.891 billion.

The System is underfunded because the state has not contributed the necessary amounts to establish proper reserves.

Actuarial liabilities have grown steadily during the last 30 years.

The state of Oklahoma has contributed the actuarial required amount only five times in the last 30 years.

The System must have additional revenues to cover already existing obligations.

TRS has achieved above average investment returns.

There is no immediate danger of a default by the System.

Benefits earned by members are a true liability of the state.

Fixing the financial condition of the System will require hardships and discipline.

The TRS Board recommends maintaining the present funding schedule, providing assistance to public schools to meet their annual contribution payments and including a plan to fund benefit improvements when enacted.

TRS has suggested directing a portion of the state's tobacco case settlement and annual appropriations from the state's Rainy Day Fund to help pay down unfunded liabilities.