Chairman Gutwein applauds legislation signed into law

Posted by: Kelly Sweeney  | Thursday, April 10, 2014 8:00 am

STATEHOUSE — Employment, Labor and Pensions Committee Chairman Doug Gutwein (R-Franscesville) applauded the signing of House Enrolled Acts (HEAs) 1074 and 1075 into law. Chairman Gutwein attended the governor’s ceremonial signing along with House colleague and author of the legislation, State Rep. Woody Burton (R-Whiteland).

The first law, HEA 1074, offers a 13th check, a one-time, post-retirement payment, to Indiana’s public retirees. Calculated by years of service, the 13th check will provide financial relief to nearly 130,000 retirees.

“Proving a thirteenth check for our public retirees is a major accomplishment and a way to show our gratitude for those committed to making Indiana a better place to live, work and raise a family,” said Chairman Gutwein.  “I’m pleased that we were able to provide some financial assistance to these dedicated public servants, which goes a long way in times of economic uncertainty, and I will continue to work for Indiana’s public employees that have given so much in return to our state.”   

HEA 1074 affects the following public retirees: members of the Public Employees’ Retirement Fund (PERF) and Teachers’ Retirement Fund (TRF), State Excise Police, Gaming Agent, Gaming Control Officer and Conservation Enforcement Officers’ Retirement Fund; State Police 1987 Benefits System and certain members of the State Police Pre-1987 Benefit System.

“By managing our state’s finances responsibly, we are able to provide financial relief for these retirees whose pension benefits have not gone as far as they once did. I was proud to author this legislation, working alongside Employment, Labor and Pensions Committee Chairman Doug Gutwein, to reward those who devoted years of selfless service to Indiana,” said Rep. Burton.

The second piece of legislation is HEA 1075 which prevents the Indiana Public Retirement System (INPRS) from privatizing the Annuity Savings Account (ASA) before Jan. 1, 2017. This legislation prohibits INPRS from entering into an agreement with a third-party provider to offer annuities to retiring and retired members of PERF and TRF.

Additionally, HEA 1075 establishes the interest rates used to determine annuity amounts. The following information includes when the new interest rates will apply:

• Oct 1, 2014 – Sept. 30, 2015: The interest rate will be 5.75 percent. 

• Oct 1, 2016 – Dec. 31, 2017: The interest rate will be the greater of; the interest rate for similar annuities being purchased in the private market, as determined by the board, or 4.5 percent.

• After Dec. 31, 2016: Whenever the board enters into an agreement with a third party provider, the interest rate is equal to the rate similar for annuities being purchased in the private market.

Visit www.in.gov/legislative for more information about HEAs 1074 and 1075.

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