On Tuesday night, Holcomb said in his State of the State speech that the state will use $150 million from its surplus to pay off a teacher pension liability that schools have been gradually paying down.
The plan would be offered to teachers as an alternative to the current pension-style plan. Some fear the state eventually could try to phase out the latter.
The Indiana Public Retirement System lowered the interest rate on its annuity savings accounts on Oct. 1, possibly contributing to a 35-percent jump in retirements for state and local government workers this year.
The Indiana state pension system is pressing ahead with a proposal to privatize state employees' annuity savings accounts, even as legislators consider placing a hold on the move for five years amid widespread concerns that state workers would lose valuable benefits.
The Indiana Public Retirement System has cut its assumed rate of return from 7 percent to 6.75 percent, becoming the first large pension system in the country to go below 7 percent.
The $25.3 billion Indiana Public Retirement System is in the midst of hiring managers to carry out a strategy where more money will be in hedge funds, private equity and real estate than stocks.
State senators allocated more state money for victims of the Indiana State Fair stage collapse and full-day kindergarten as part of a broad spending plan approved Wednesday.
The pension fund that holds benefits for public employees has seen improved investment returns over the last two years, but the hammering it took during the depths of the recession continues to deal a blow to cities, counties and other employers.
A look at some major legislation considered this year by the Indiana General Assembly.
As if voters don't have enough to be angry about this election year, the government is expected to announce this week that more than 58 million Social Security recipients will go through another year without an increase in their monthly benefits.
Timothy Walsh will take over a $68 billion pension fund, eight times larger than the $8.5 billion Indiana State Teachers Retirement
Fund he headed since 2008.
Indiana is among the nation’s five most underfunded teacher pension programs, but low ranking is misleading.