INDIANAPOLIS (AP) – Democratic lawmakers and labor unions are asking the state pension board to delay a change in Indiana’s pension law they say will cost retiring workers thousands of dollars per year.
The Indiana Public Retirement System’s board voted over the summer to privatize payouts from workers’ annuity savings accounts. But members of the General Assembly’s Pension Management Oversight Committee said Monday they may ask the pension board to hold off on the move.
Workers currently pay into the account over the course of their career and can then reinvest that savings with the state when they retire. In return, they’re guaranteed annual payouts equal to 7.5% of the invested amount.
State pension officials have said they’re concerned about the long-term stability of the program.