The Herald Bulletin

Evening Update

Local News

August 27, 2013

Pension board change cuts retiree payouts

INDIANAPOLIS — Indiana lawmakers grilled the head of the state's pension system Tuesday on a decision to push future retirees into a market-based system that could almost halve the amount they earn from annuity plans.

The Indiana Public Retirement System voted unanimously last month to change how much new retirees earn from their annuity savings accounts, or ASAs. The state currently allows retirees to return a lump-sum amount earned over their time working for the government to the pension fund, in return for guaranteed monthly payouts based on 7.5 percent of that lump sum.

More than half of the roughly 425,000 retirees enrolled in Indiana's major pension plans, the public employee retirement fund and the teacher's retirement fund are enrolled in the annuity plan. But employees who retire after July 1, 2014, would have to look to market-based rates and a sharp drop in that guaranteed money.

INPRS Executive Director Steve Russo told the panel the new payout would likely drop from 7.5 percent to a figure equaling the 10-year Treasury Note rates plus another 1.5 percentage points. The 10-year Treasury yield on Tuesday was listed at 2.75 percent, making the new payout likely 4.25 percent.

The pension board's July vote followed a last-minute push by the Senate's lead budget-writer, Luke Kenley, to end the annuity payouts over concerns the state could not afford them. But lawmakers, including House Speaker Brian Bosma, R-Indianapolis, said the decision needed a public vetting and pulled it from the state budget.

Democrats on the panel said they were caught off guard by the changes.

"This is a big decision that affects a lot of people" said Sen. Karen Tallian, D-Portage. "Frankly, I had expected that this was something that would be vetted before PMOC, at one or two meetings, rather than have you just come back and say, 'Well, this is what we did.'"

Text Only
Local News
  • NWS - HB0417 - mother arrest - JC 5.JPG Police: Woman brings handgun to school

    An Anderson woman said she forgot she was carrying a gun Wednesday when she went to St. Mary’s School to meet with a principal and discuss a threat made against her son.

    April 16, 2014 2 Photos

  • NWS - HB0416 - sperry reunion Baby born after deadly accident released to family

    A baby girl born the same day a deadly accident claimed her father's life was released from the hospital Tuesday afternoon.

    April 15, 2014 1 Photo

  • Former Indy radio personality accused of defrauding family members in Madison County A former Indianapolis radio personality was arrested Monday, suspected of stealing the identities of four Madison County family members over a four-year span.

    April 16, 2014

  • Primary voting starts at courthouse Through the first week of early voting for the May 6 primary, the Madison County Voter Registration office has been less than overwhelmed.

    April 15, 2014

  • What's Where: April 16 Local meetings and activities are scheduled for Wednesday, April 16.

    April 16, 2014

  • Dog owners invited to Easter egg hunt McCulloch Park will be going to the dogs on Saturday. Residents are invited to join in for the Easter egg hunt specifically for canines and their human companions.

    April 16, 2014

  • Arrest Log: April 17 Arrests made by Madison County law enforcement on Tuesday and Wednesday, based on Madison County Jail records.

    April 16, 2014

  • AU students giving back to community

    For the past five years Anderson University students have been sprucing up the city through the Operation Foundation program.

    April 16, 2014

  • NWS - HB0408 - Crash Sperrys 2 Family, friends bid farewell to Jesse Sperry

    The fussing of 10-day-old Autumn Marie Sperry seemed to coincide with the beginning of the funeral service for her father, Jesse Sperry, whose lifeless body rested just a few feet away. More than 200 friends and family members gathered at Edgewood Baptist Church this afternoon to pay their respects to Jesse, who was killed April 6 in a traffic accident on West Indiana 32.

    April 16, 2014 1 Photo

  • Arrest Log: April 16 Arrests made by Madison County law enforcement on Monday and Tuesday, based on Madison County Jail records.

    April 16, 2014

March Staff Photos


Buy and browse more photos from The Herald Bulletin

More Resources from The Herald Bulletin
Auto Industry Book
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Facebook