Authors: Representative Woody Burton
Co-authors: Representative Ronald Bacon, Representative Charles Moseley, Representative David Niezgodski
Sponsors: Senator Greg Walker, Senator Karen Tallian, Senator Vaneta Becker
Co-Sponsors: Senator Lonnie Randolph
Advisors: Representative Michael Karickhoff, Representative Charles Moseley
Provides that the board of trustees (board) of the Indiana public retirement system may not, before January 1, 2017, enter into an agreement with a third party provider to provide annuities to retiring and retired members of the public employees' retirement fund (PERF) and the teachers' retirement fund (TRF). Specifies the interest rate used to determine the annuity amount is: (1) 5.75%, after September 30, 2014, and before October 1, 2015 and (2) the greater of: (A) the interest rate for similar annuities being purchased in the private market as determined by the board; or (B) 4.5%; after September 30, 2015, and before January 1, 2017. Provides that, after December 31, 2016, whenever the board enters into an agreement with a third party provider, the interest rate used to determine the annuity amount is equal to the rate for similar annuities being purchased in the private market as recommended by the third party provider. Removes language terminating an annual pension paid to the surviving spouse of a governor if the surviving spouse remarries. Increases from 3% to 5% the maximum percentage of a state employee's base salary that may be deducted as an automatic contribution to the state's deferred compensation plan.