Pharos-Tribune

State News

October 4, 2012

Daniels announces boost to state pension funds

INDIANAPOLIS — A 2011 law that triggers an automatic taxpayer refund when the state has a surplus has also provided a boost to the state’s pension funds.

On Thursday, Gov. Mitch Daniels announced that $360 million from the state’s budget surplus will go to shore up five public pension funds.

“There are many states and some localities that are never, ever going to be able to honor the (pension) obligations that they made,” Daniels said. “That will never be the case in Indiana.”

Daniels said the payments mean that four of the five funds are considered “fully funded,” meaning they’re at or above 80 percent of their obligations.

Indiana law requires the governor to return excess funds when the state’s reserves exceed a certain threshold. A portion goes back to taxpayers in the form of an automatic refund and a matching amount goes to boost the funding levels of the state’s pension funds.

The payments announced Thursday include $90.2 million to the Judges Pension Fund; $14.6 million to the Conservation, Gaming and Excise Officers Pension Fund; $17.4 million to the Prosecutors Pension Fund; $31.7 million to the State Police Pension Fund; and $206.8 million to what’s called the “pre-1996” Teachers’ Retirement Fund.

It’s that pre-1996 teachers’ fund that has about $11 billion in unfunded liabilities, according to Steve Russo, director of the Indiana Public Retirement System. It’s a fund that was set up in 1921 as a “pay as you go” system. The Legislature has been allocating money each year from the state’s general fund to pay off the obligations over time; meanwhile, the state has put into place a post-1996 teachers retirement fund that is paid for like the other state pension funds are.

As Daniels earlier announced, the state will return $360 million from the budget surplus to state taxpayers. Each individual filing a return is expected to get about $100; joint filers will get $200. It’s money returned to taxpayers as a deduction rather than a check.

1
Text Only | Photo Reprints
State News
  • NWS-PT040714 Hogsett mug.jpg The job? Guarding public trust INDIANAPOLIS -- Joe Hogsett was being vetted for the job of U.S. Attorney four years ago when he asked a federal judge for advice. That judge observed that there hadn't been a high-profile public corruption case in the southern district of Indiana s

    April 7, 2014 1 Photo

  • Flood Insurance Indiana [Duplicate] Indiana braces for flood insurance subsidy changes INDIANAPOLIS -- Thousands of Indiana homeowners who live in flood-prone neighborhoods are bracing for insurance premium increases, despite Congress' latest fix for the government's debt-saddled flood insurance program. More than 13,300 Indiana homeow

    March 30, 2014 2 Photos

  • NWS-PT031714 Wolkins mug.jpg Zooming through: Rules on mo-peds headed to governor's desk INDIANAPOLIS -- Rep. Dave Wolkins could only oppose mo-ped regulations for so long, as more bikes zipped along the roads and were involved in an increasing number of accidents. So Wolkins -- who spent five years fighting to keep Indiana among the few

    March 17, 2014 2 Photos

  • Prison inmates part of new Legion post TERRE HAUTE -- Wearing khaki-colored matching uniforms, more than 20 veterans inside a maximum-security prison stood tall to salute the flag of the United States at an event that welcomed them as new American Legion members. These men, inmates at the

    March 17, 2014

  • NWS-PT031414 beer alcohol.jpg Old ban on beer booze level may be tapped out INDIANAPOLIS -- Loughmiller's Pub across from the Statehouse is a favorite hangout for legislators and lobbyists who like the tavern's menu of gourmet burgers and craft beers. State police are regular lunch customers, as are state officials who regul

    March 14, 2014 1 Photo

  • Indiana House leader: Tax, preschool deals near INDIANAPOLIS -- Republican leaders working on a series of last-minute compromises on top-tier issues of tax cuts, preschool and road funding announced Tuesday they were close to final agreements. "I say agreement in principle because we still have to

    March 12, 2014

  • Same-sex couples sue state over ban LOUISVILLE -- Erin Brock says she's prepared to fight to have her love legally recognized by the state of Indiana. Brock and her fiancé Melissa Love share a home and children in Jeffersonville and are one of four same-sex couples from Southern Indian

    March 10, 2014

  • Ivy Tech's $83M wish list meets skeptical audience INDIANAPOLIS (AP) -- Ivy Tech Community College says it needs $83 million more from the state so it can double its enrollment and graduation rates and help the state meet its own goal of increasing the number of Indiana residents with post-high-schoo

    March 9, 2014

  • Bill ends automatic license suspensions for many crimes INDIANAPOLIS -- Unpaid parking fines, falling behind on child support, drunken driving: So many offenses trigger a suspended driver's license in Indiana that more than a half-million Hoosiers have lost their driving privileges. In fact, driving on a

    March 7, 2014

  • NWS-PT030314 Zionsville bus.jpg Rolling billboards: Legislation may create pilot program INDIANAPOLIS — Cash hungry schools may start selling ads on the sides of buses to make up millions of dollars lost because of property tax caps. Legislation moving through the General Assembly would create a pilot program allowing a few districts to

    March 3, 2014 1 Photo

Hyperlocal Search
Premier Guide
Find a business

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

Should e-cigarette marketing be regulated like tobacco?

Yes
No
Unsure
     View Results
Featured Ads
AP Video
Obama Hopeful on Ukraine, Will Watch Russians Flamingo Frenzy Ahead of Zoo Construction Crew Criticized Over Handling of Ferry Disaster Agreement Reached to Calm Ukraine Tensions Raw: Pope Francis Performs Pre-easter Ritual Raw: Bulgarian Monastery Dyes 5000 Easter Eggs Diplomats Reach Deal to Ease Tensions in Ukraine U.S. Sending Nonlethal Aid to Ukraine Military Holder: Americans Stand With KC Mourners Obama Greets Wounded Warriors Malaysia Plane: Ocean Floor Images 'Very Clear' Sparks Fly With Derulo and Jordin on New Album Franco Leads Star-studded Broadway Cast Raw: Two Lucky Kids Get Ride in Popemobile Boston Bombing Survivors One Year Later Sister of Slain MIT Officer Reflects on Bombing
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.