SUMMARY OF CONTRIBUTIONS

The contributions made to the Teachers Retirement System are additional benefits granted by special acts, for retirees and their beneficiaries. Benefits include: health insurance plan contributions, Christmas bonus, bonus for medications, summer bonus, death benefits, and cost of living adjustment. The Teachers Retirement System Administration is the Agency that manages the appropriations authorized by the following acts.

LEGAL AUTHORITY

Act 91-2004, as amended, known as the Puerto Rico Teachers Retirement System Act. This Act establishes the benefits, services and legal guidelines ruling the System and its members. The System's funds will be used as provided by this law for the benefit of the members and their dependents or beneficiaries, for the payment of retirement pensions or disability, death benefits and others.

Act No. 124 of June 8, 1973, as amended, increased the pensions granted under the provisions of Act No. 447 of May 15, 1951, as amended, or for pensions superseded by this law and by Act No. 218 of May 6, 1951, as amended. In addition, authorizes the Government Employees Retirement System and the Teachers Retirement System Administrators to implement this law.

Act 162-2003, granted a tax free medications bonus for retired teachers and beneficiaries of the Teachers Retirement System.

Act 272- 2004, increased the minimum death benefits from $500 to $1,000 for the beneficiaries of the Teachers Retirement System.

Act 38-2001, established a tax free summer bonus of $100 for the Teachers Retirement System retirees.

Act 39-2001, authorized the Puerto Rico Teachers Retirement System to increase by 3% the pensions under the provisions of Act No. 218 of May 6, 1951, as amended, awarded on or before January 1, 1998. Act No. 218, supra, was repealed by Act 91-2004.

Act No. 47 of June 1, 1984, increased the pensions granted under the provisions of Act No. 218 of May 6, 1951, as amended, that created the Teachers Retirement System, under the funds or pensions superseded by this system and to provide the necessary funds.

Act No. 49 of May 23, 1980, as amended, granted a Christmas bonus in December of every year to retired teachers under the provisions of Act No. 218 of May 6, 1951, as amended, and to retired teachers under any other act.

Act 62-1992, known as the Government of Puerto Rico Retired Teachers Pension Adjustment Act, mandates the Teachers Retirement System created by Act No. 218 of May 6, 1951, as amended, to increase the pensions by 3% every three years, beginning on January 1, 1992.

Act No. 72 of June 20, 1956, as amended, authorized the use of the Teachers Retirement Fund and the General Fund to grant cultural trips loans to active and retired teachers.

Act No. 95 of June 29, 1963, as amended, known as the Public Employees Health Benefits Act, established a Health Insurance plan that includes hospitalization and supplementary benefits for the Government of Puerto Rico employees. This law also includes retired teachers.

FISCAL YEAR 2012-2013 PROPOSED BUDGET

The proposed consolidated budget for Fiscal Year 2012-2013 amounts to $99,127,000 from the Special Appropriations- General Fund.

This budget reflects an increase of $487,000 when compared to funds assigned in Fiscal Year 2011-2012. The System expects an increase in the amount of retired members receiving health insurance benefits.

Resources allocated in fiscal year 2012-13 to cover the costs of benefits granted by these special laws were reprogramed in accordance to the historical costs incurred in prior years.

The resources allocated to the Teachers Retirement System will be used to provide funds for the special benefits authorized and mandated by law.

SUMMARY OF CONTRIBUTED FUNDS