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More and more teachers in Indiana opt for Early Retirement!


Back in October - a new law went into effect that cut spending on teacher and public employee benefits.

 

Now, the state is starting to see some of the consequences of those cuts.

 

"Well, I think I in the short term what we are seeing is an increase in retirements," said Dr. Marvin Lynn, the dean of the School of Education at IUSB. "So in all the districts that we serve, we are seeing a significant increase in the number of teachers who are retiring early." 

 

Part of the reason is that waiting to retire could cost teachers money.

 

Any teacher that chose to retire from October 1st last year until September 30th, 2015 will get a 5.75 percent interest rate on their retirement investments. Anyone retiring after September 30th until the end of 2016 is guaranteed at least a 4.5 percent interest rate.

 

But starting in 2017 they will only get the market interest rate on their retirement investments - which right now is only about 4 percent.

 

"It would not be good for the profession if we continue to have retirements at the rate we're seeing them now," Lynn said. "Particularly for teachers who still want to teach and enjoy it and are still effective."

 

"I don't think we can stop people leaving the profession," said Dr. David Freitas with the Indiana State Board of Education.

 

"They're entitled to their retirements. While I hate to see them go, they provided years of great service for us and for the students of Indiana, so I wish them well," he said.

While some would argue this is only a short term problem, others say this makes teaching less attractive and creates another long term problem.

 

"They're going to have to find a way to make the profession attractive again for new teachers to say in the profession and for teachers who are experienced to stay in the profession until retirement," Lynn said.

 

The interest rates for retirement packages do vary and can change quite a bit.

So when they switch to the market interest rate in 2017 - that actually COULD be higher than what it is now, and obviously it could be a lot lower.

 

Experts still aren't so sure what the long term affects of this will be.

Short term they think it will create more opportunities for young teachers, which has some benefits as well.


FOR PREVIOUS INFORMATION GO TO ARCHIVES

10/25/13 PERF(INPRS) BOARD MEETING  

 

VERY DISAPPOINTING

THEY VOTED NOT TO CHANGE THEIR PLANS AT THIS TIME. THEY NEEDED MORE TIME TO UNDERSTAND WHAT THE PMOC MEANT BY THIER RECOMMENDATION

Next meeting December 13, 2013

So now we have need to write and call all of your House and Senate members, ask them to support the recommendations of PMOC as they were sent to INPRS on our ASA accounts,

NO THIRD PARTY VENDOR!

These numbers can be found by using the

(Who's Your Elected Representatives?) tab on this site.

Also call the members of PMOC and thank them for their unanimous support on this issue!

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COLAs, Thirteenth Checks, and Minimum Pension Benefit Scenarios
Representative Thompson introduced PD 3285 (Exhibit E), which establishes a formula for
annual postretirement benefit adjustments for members, survivors, and beneficiaries of PERF
and TRF. Representative Thompson explained that the formula included in the preliminary draft
is meant to provide a postretirement increase that will benefit those that have been retired for
many years as well as those retirees who had many years of service.
The Commission members discussed this language at length, with some showing concern
about the potential fiscal impact and others having questions as to whether the postretirement
benefit increase would be awarded as a 13th Check or as a COLA. As a result of the discussion,
Chairman Boots requested that the Commission not consider a motion to recommend the
legislation.
Senator Tallian and Senator Walker offered a motion that does not include a recommendation
of the actual preliminary draft per se, but rather a recommendation of the postretirement benefit
increase formula within the draft. The motion reads:
(1) Should the Indiana General Assembly adopt a 13th Check or a COLA, the
formula contained within PD 3285 is the formula that should be utilized to
calculate the level of benefit increase.
The Commission adopted the motion 9-0, with Representative Thompson abstaining.
Determination of Authors for PDs Recommended by the Commission
(1) PD 3342 (State-Assisted Retirement Plan). Senators Tallian and Walker agreed
to be authors of PD 3342.
(2) PD 3302 (Benefits for Municipal EMS Workers). Senators Boots and Hume
agreed to be authors of PD 3302.
(3) PD 3285 (PERF and TRF Benefit Adjustments). Senators Tallian, Hume, and
Walker will author a Senate version, and Representatives Moseley and Burton
agreed to be authors of a House version.
Consideration of
COLAs, Thirteenth Checks, and Minimum Pension Benefit Scenarios
Representative Thompson introduced PD 3285 (Exhibit E), which establishes a formula for
annual postretirement benefit adjustments for members, survivors, and beneficiaries of PERF
and TRF. Representative Thompson explained that the formula included in the preliminary draft
is meant to provide a postretirement increase that will benefit those that have been retired for
many years as well as those retirees who had many years of service.
The Commission members discussed this language at length, with some showing concern
about the potential fiscal impact and others having questions as to whether the postretirement
benefit increase would be awarded as a 13th Check or as a COLA. As a result of the discussion,
Chairman Boots requested that the Commission not consider a motion to recommend the
legislation.
Senator Tallian and Senator Walker offered a motion that does not include a recommendation
of the actual preliminary draft per se, but rather a recommendation of the postretirement benefit
increase formula within the draft. The motion reads:
(1) Should the Indiana General Assembly adopt a 13th Check or a COLA, the
formula contained within PD 3285 is the formula that should be utilized to
calculate the level of benefit increase.
The Commission adopted the motion 9-0, with Representative Thompson abstaining.
Determination of Authors for PDs Recommended by the Commission
(1) PD 3342 (State-Assisted Retirement Plan). Senators Tallian and Walker agreed
to be authors of PD 3342.
(2) PD 3302 (Benefits for Municipal EMS Workers). Senators Boots and Hume
agreed to be authors of PD 3302.
(3) PD 3285 (PERF and TRF Benefit Adjustments). Senators Tallian, Hume, and
Walker will author a Senate version, and Representatives Moseley and Burton
agreed to be authors of a House version.
Consideration of


DECEMBER 13th INPRS (PERF) BOARD MEETING

EVEN THOUGH THERE ARE AT LEAST TWO BILLS COMING IN THE UPCOMING LEGISLATIVE SESSION, THE BOARD VOTED TO CONTINUE TO SPEND YOUR DOLLARS TO HIRE ANOTHER THIRD PARTY CONTRACTOR TO WORK ON THE SETUP OF YOUR ASA MONEY!

WE ARE CONTINUING TO FIGHT THIS BOARDS MOVE!

IT LOOKS AS THOUGH THE INPRS BOARD IS JUST IGNORING THE GENERAL ASSEMBLY’S DETERMINATION TO FIND OUT WHAT IS BEST. 

------------------------

INPRS SENT A LETTER TO THE GENERAL ASSEMBLY TRYING TO EXPLAIN WHY IT IS NECESSARY TO SPEND YOU PENSION (ASA) MONEY,  A LOT OF THIS IN OUR OPINION IS NOTHING MORE THAT SCARE TACTICS.  THEY ARE ALSO OFFERING TO EDUCATE THE GENERAL ASSEMBLY. 

(see attched)

  TIME IS GETTING SHORT, PLESE CONTACT YOUR LEGISLATORS AND ASK THEM TO SUPPORT ANY LEGISLATION STOPPING A THIRD PARTY CONTRACTOR FOR YOUR "ASA" PART OF YOU PENSION!

 

SUMMER STUDY COMMITTEES

CHECK HERE TO SEE WHAT IS GOING ON

COMMITTEES

 

 COMMITTEE HEARINGS

MAY WE WORK TOGETHER TO KEEP THIS FLAG FLYING HIGH AND WITH RESPECT!

The State's plans to use the 401-H plan as  written, in many case to steal your money. If it were voluntary it would be great.