State Rep. Woody Burton serves as chairman of the Pension Management Oversight Commission (PMOC). PMOC is charged with studying topics related to pensions, annuities and retirement benefits for public employees, teachers and public safety officers.
On Tuesday, the committee heard an in-depth annual report concerning the Indiana Public Retirement System (INPRS). INPRS officials reported a one percent earn on investments last year, which is significantly lower than their expectations. Despite the report, Indiana still fairs better than many other states with much larger unfunded pension obligations. Indiana has the lowest burden per household to fully fund public pensions in the U.S. The state’s public pensions are currently funded at 81 percent of what is owed.
INPRS officials are working to modernize their setup. They have completed the implementation of a new financial system and annuity savings account modernization. A new employer reporting Web portal will go live in October and a new benefits administration system will debut in April.
INPRS representatives also presented preliminary drafts of proposed legislation for the upcoming General Assembly. They suggested reducing the minimum number of years required for participation in the plan from 10 years to five years. They also recommended requiring a vested plan member to be separated from employment for at least 30 days before the member may make a withdrawal from the his or her account. INPRS also suggested several changes to align the regulations pertaining to the Public Employees’ Retirement Fund (PERF) and the Teachers’ Retirement Fund (TRF).
“According to the INPRS report we heard, Indiana has a stronger, more stable retirement system than most states,” said. Rep. Burton. “This committee will continue to practice the fiscal management needed to ensure a sound future for all Hoosiers.”
The next meeting will be held on Thursday, Aug. 30 at 10 a.m. at the Statehouse. The meeting will be broadcast over the Internet for those unable to attend. Please visit www.in.gov/legislative/2441 and select the video stream for room 404.
