ILNews

Change to public employee annuities spurs exodus in Porter County

Back to TopCommentsE-mailPrintBookmark and Share

A northwestern Indiana judge will lose a combined 67 years of experience this month when all three of his employees retire.

Porter Superior Court Judge Roger Bradford's executive assistant, bailiff and court reporter all are retiring Aug. 29, partly to avoid reductions in the amount of money they'll receive from their public employee retirement plan annuities, The (Munster) Times reported Sunday.

Executive assistant Julie Powell said she and her co-workers on Bradford's staff must leave now to avoid watching the returns on the annuity portions of their retirement plans fall from a guaranteed 7.5 percent to lower market-based rates under changes the Indiana Public Retirement System made nearly a year ago to reduce the possibility of unfunded liabilities.

The upcoming losses proved incentive enough to persuade the three court staffers to follow through on retirement plans even after Bradford surprised them by opting to seek a sixth term, which he'll begin in January.

"We said, 'Hey, we're in the mindset to go now,'" Powell said.

The Indiana Lawyer wrote about the pending change to the guaranteed interest rate in May.  Effective Oct. 1, the Indiana Public Retirement System will reduce the guaranteed interest rate for workers who choose to annuitize investments in their annuity savings accounts. Employees covered by the Public Employees’ Retirement Fund have 3 percent of their salary invested in those accounts and may elect to invest a greater portion of their earnings.

But the interest rate the state previously guaranteed on those annuities has proved to be unsustainable. NPRS says the change was needed because Americans are living longer and guaranteed rates of return on investment have fallen. The change has prompted units of government to alert workers about how their retirement benefits may be affected.

The loss of retirement money affects not just state and local government employees, but teachers as well. While there's no mass exodus among educators, some are calling it quits to avoid losing any money on their self-funded annuities. Teachers Dave Kenning and Judy Commers are retiring this year from the Porter County Career Center, taking with them more than 60 years of combined experience and institutional knowledge, said Jon Groth, the school's director.

Officials at the Indiana Public Retirement System project about 9,700 retirements in 2014 from the PERF and the Teachers Retirement Fund.

Porter County government is losing a total of 12 employees, including Porter County Treasurer Mike Bucko and County Highway Department Supervisor Al Hoagland.

Porter County Auditor Bob Wichlinski said he was unsure how many, if any, of the posts, will be left vacant in light of the County Council's call on departments in the financially strapped county to reduce their proposed budgets by 10 percent for next year.

The Porter County Public Library System is losing three employees to the PERF change, Director Jim Cline said. That's just 5 percent of the 60 full-time employees, but two of the three have worked for the library system for more than 22 years, he said.

The Valparaiso Police Department suffered a similar loss when an administrative assistant retired due to the PERF change and took 28 years of experience with her, Clerk-Treasurer Sharon Swihart said.

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 Indiana Lawyer 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

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. The sad thing is that no fish were thrown overboard The "greenhorn" who had never fished before those 5 days was interrogated for over 4 hours by 5 officers until his statement was illicited, "I don't want to go to prison....." The truth is that these fish were measured frozen off shore and thawed on shore. The FWC (state) officer did not know fish shrink, so the only reason that these fish could be bigger was a swap. There is no difference between a 19 1/2 fish or 19 3/4 fish, short fish is short fish, the ticket was written. In addition the FWC officer testified at trial, he does not measure fish in accordance with federal law. There was a document prepared by the FWC expert that said yes, fish shrink and if these had been measured correctly they averaged over 20 inches (offshore frozen). This was a smoke and mirror prosecution.

  2. I love this, Dave! Many congrats to you! We've come a long way from studying for the bar together! :)

  3. This outbreak illustrates the absurdity of the extreme positions taken by today's liberalism, specifically individualism and the modern cult of endless personal "freedom." Ebola reminds us that at some point the person's own "freedom" to do this and that comes into contact with the needs of the common good and "freedom" must be curtailed. This is not rocket science, except, today there is nonstop propaganda elevating individual preferences over the common good, so some pundits have a hard time fathoming the obvious necessity of quarantine in some situations....or even NATIONAL BORDERS...propagandists have also amazingly used this as another chance to accuse Western nations of "racism" which is preposterous and offensive. So one the one hand the idolatry of individualism has to stop and on the other hand facts people don't like that intersect with race-- remain facts nonetheless. People who respond to facts over propaganda do better in the long run. We call it Truth. Sometimes it seems hard to find.

  4. It would be hard not to feel the Kramers' anguish. But Catholic Charities, by definition, performed due diligence and held to the statutory standard of care. No good can come from punishing them for doing their duty. Should Indiana wish to change its laws regarding adoption agreements and or putative fathers, the place for that is the legislature and can only apply to future cases. We do not apply new laws to past actions, as the Kramers seem intent on doing, to no helpful end.

  5. I am saddened to hear about the loss of Zeff Weiss. He was an outstanding member of the Indianapolis legal community. My thoughts are with his family.

ADVERTISEMENT