Funding is provided by state and member contributions, along with investment earnings.
The Board of Trustees is responsible for administering the system and approving retirement fund investment decisions. Expenditures from this fund are made without legislative appropriation. Disbursements are made to cover administrative expenses and payments of retirement, disability and death benefits granted to former employees of tax-supported public schools, junior colleges, universities and educational agencies. The increase was a result of an increase in the state's contribution rate from 7.2 percent to 7.65 percent and of adjustments made to the payroll base to reflect growth in salaries for public and higher education personnel. The purpose of this program is to provide health insurance benefits to retired public school teachers.