IBJNews

No more double dips for public pension retirees

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Legislature has passed a bill that would cut off supplemental benefits for public pensioners in their second careers—a practice commonly known as double-dipping.

The proposal would affect any member of the Public Employees Retirement Fund, or PERF, who retires after June 30 but takes another PERF-eligible job. Those second-career retirees will be allowed to continue drawing the benefits they’ve earned, but they can’t accumulate any more.

PERF table kathleen double dipCutting off double dips will save PERF an estimated $5.5 million while slightly lowering employer contribution rates. But it won’t make a dent in the funding ratio, which is 85 percent, according to the fiscal note on Senate Bill 526, which has passed both chambers.

Unfunded liabilities are a big problem for state pension plans, but double-dipping isn’t a major cause, said David Draine, senior researcher at the Pew Charitable Trusts.

“At the same time, there’s two reasons one should pay attention to it,” Draine said. “Tax dollars should be used in accordance with what voters want. Voters in many states have said this is not a good use of it.”

There are 531 PERF retirees continuing to accumulate benefits. State government, Indiana University and Purdue University and large local governments, including Marion County, are their biggest employers.

The double-dippers represent a tiny fraction of PERF’s 145,519 active members. The average retirement age is 64, which means most members probably don’t want to continue working.

Retirees are losing a benefit, but it’s probably not one that drives their decision to go back to work.

“I think they probably go back for the additional pay,” said Bill Murphy, executive director of the Retired Indiana Public Employees Association. The average monthly benefit is $555—the second-lowest of eight funds managed by the Indiana Public Retirement System.

Double-dipping is already against the rules for teachers, police and firefighters, excise police, judges, prosecutors and legislators. The Legislature ended supplemental benefits for Teachers Retirement Fund retirees in 2007, so changing the rules for PERF seemed like the logical next step, said Sen. Phil Boots, who authored SB 526.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Angela IS the best RD

  2. We are a nation of speed. All of our younger lives are filled with deadlines, quotas and bottom lines. We start to ease out of the pressured rat-race when we finally see "retirement." The most enjoyable travel on the planet is passenger rail service. Indy to Chicago does not beat Megabus or Southwest Airlines in speed. Passenger rail however has the best seating, mammoth legroon, seat backs that recline to more than 45 degrees and employers that really want you to return as a customer. Indiana municipalities need to maintain subsidies to support this transportation mode. Losing it is loss for all of us.

  3. Good day! I just want to testify how i got my loan from Mr. Eric Lefkofsky after i applied several times from various loan lenders who claimed to also testify right in this forum,i thought the testimonies where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan. Until a friend of mine introduce me to this popular Mr. Eric Lefkofsky who promised to help me and indeed he did as he promised without any form of delay. I never thought there are still reliable loan lenders until i met Mr. Eric lefkofsky who indeed helped me with the loan and changed my belief. I promised to share this testimony after I got my loan. I don't know if you are in any way in need of a genuine and urgent loan,free feel to contact Mr. Eric Lefkofsky via their email{grouponfunding@hotmail.com}

  4. Its a THUG issue. Bleecker Street and NYX are thug bars. They attract thugs of all races. Places that attract thugs need to be kicked out of Broad Ripple. Ain't nobody got time for that!

  5. Hello everyone, My name is Marian Gareth, I am from the Texas, United State, am here to testify of how i got my loan from Mr Andre Frank {frankloancompany@yahoo.com} after i applied Two times from various loan lenders who claimed to be lenders right in this forum,i thought their lending where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan.Until a friend of mine introduce me to Mr Andre Frank the C.E.O of Andre Frank Loan Company who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I never thought there are still reliable loan lenders until i met Mr Andre Frank, who really help me with my loan and changed my lief for better. I don't know if you are in need of an urgent loan, free feel to contact Mr Andre Frank on his email{ Frankloancompany@yahoo.com} for help

ADVERTISEMENT