Dear friend,
Recently, members of the Pension Management Oversight Interim Study Committee held their final meeting to make recommendations to the General Assembly for the 2016 legislative session.
Working with the Indiana Public Retirement System (INPRS), we recommended making changes to the current structure of the public employees' and teachers' retirement funds (PERF and TRF). These changes include the elimination of the guaranteed fund for eligible PERF and TRF plans and instead moving to a fund that ensures a higher rate of return on investment. In addition, members of these retirement funds would have the option to change their beneficiaries as often as they would like. These recommendations were passed unanimously by the committee.
At the meeting, I also addressed the fiscal impact of including a cost-of-living adjustment (COLA) each and every year for the pre-’96 teacher’s fund. According to INPRS data, if the General Assembly approves a 1 percent annual COLA, the fund would become completely self-sufficient by 2038. If an annual COLA was not approved, that date would move forward to 2036. The committee members agreed to discuss this issue in further detail during session.
To view all of the committee documentation and the final report when it becomes available, please visit iga.in.gov. For more information on the committee's final recommendations, I encourage you to contact me at h28@iga.in.gov or 317-232-9790
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