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
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. The Department of Education still has over $100 million of ITT Education Services money in the form of $100+ million Letters of Credit. That money was supposed to be used by The DOE to help students. The DOE did nothing to help students. The DOE essentially stole the money from ITT Tech and still has the money. The trustee should be going after the DOE to get the money back for people who are owed that money, including shareholders.

  2. Do you know who the sponsor of the last-minute amendment was?

  3. Law firms of over 50 don't deliver good value, thats what this survey really tells you. Anybody that has seen what they bill for compared to what they deliver knows that already, however.

  4. My husband left me and the kids for 2 years, i did everything humanly possible to get him back i prayed i even fasted nothing worked out. i was so diver-stated, i was left with nothing no money to pay for kids up keep. my life was tearing apart. i head that he was trying to get married to another lady in Italy, i look for urgent help then i found Dr.Mack in the internet by accident, i was skeptical because i don’t really believe he can bring husband back because its too long we have contacted each other, we only comment on each other status on Facebook and when ever he come online he has never talks anything about coming back to me, i really had to give Dr.Mack a chance to help me out, luckily for me he was God sent and has made everything like a dream to me, Dr.Mack told me that everything will be fine, i called him and he assured me that my Husband will return, i was having so many doubt but now i am happy,i can’t believe it my husband broke up with his Italian lady and he is now back to me and he can’t even stay a minute without me, all he said to me was that he want me back, i am really happy and i cried so much because it was unbelievable, i am really happy and my entire family are happy for me but they never know whats the secret behind this…i want you all divorce lady or single mother, unhappy relationship to please contact this man for help and everything will be fine i really guarantee you….if you want to contact him you can reach him through dr.mac@yahoo. com..,

  5. As one of the many consumers affected by this breach, I found my bank data had been lifted and used to buy over $200 of various merchandise in New York. I did a pretty good job of tracing the purchases to stores around a college campus just from the info on my bank statement. Hm. Mr. Hill, I would like my $200 back! It doesn't belong to the state, in my opinion. Give it back to the consumers affected. I had to freeze my credit and take out data protection, order a new debit card and wait until it arrived. I deserve something for my trouble!

ADVERTISEMENT