1. It appears as though INPRS understands the issues surrounding current year teachers and their ability to retire and still come under the existing annuitization policy. Steve Russo, executive director of INPRS, in an email to me indicated that “The intent of the INPRS board was to make the changes effective on a date that would allow teachers to finish out the school year before having to retire. As you and others have pointed out, the rules specific to TRF would require a teacher to have a last day in pay status on or before May 31st, 2014. Now aware of this, I will recommend to the INPRS board a delay by 1 month that would in essence permit teachers’ to finish out the school year. The next INPRS board meeting is in September. I will see what flexibility we have in communicating the intent before the board considers the change in September.”
As you will note, Steve’s response is very much a teacher (TRF)-focused response. Other school employees (who might be under PERF) may not be jeopardized by a June retirement date, but I will investigate further.
2. The Pension Management Oversight Commission is meeting tomorrow (Tuesday, August 27) and Steve Russo is on the agenda to provide his annual report of the Pension Systems. I presume that the policy changes approved by INPRS dealing with the long-term rate and the outsourcing of the annuitization will come up because legislators who sit on the commission have likely heard about it. ISTA will testify if public testimony is scheduled. More likely, there will be a subsequent meeting on these changes specifically. Please stay tuned.
3. Nobody has really made the case that the annuitization change, in particular, is warranted. Even if there is rationale, there are many ways in which INPRS and/or the Legislature could address it—and INPRS took one of the most aggressive approaches—negatively impacting the most soonest.
Below is a link to an article from August 28. It gives you some figures to go along with the changes in TRF/PERF. Be on the lookout for a flyer regarding an informational session with ISTA’s chief lobbyist on 9/17. She will provide details on the changes, information she received from her meeting with the governing board, and will also entertain questions from the audience. It will be in Ft. Wayne...members and spouses will be welcome – as well as those in PERF such as police and fire as it affects them as well. More coming your way very soon!!!
State board cuts public pensions
Please use the link below to the Keep the Promise website to see an update on the changes to TRF/PERF. This will impact retirements for this year as well as in upcoming years.
Pension Management Oversight Committee Discusses Changes to TRF/PERF