Vanderburgh sheriff outlines remediation plan as state flags pension underfunding

Sheriff Noah Robinson and the pension plan's actuary presented a remediation plan to the Vanderburgh County Council on Sept. 4 after state pension oversight designated the sheriff's fund delinquent.

Kevin Carey, the plan's actuary, told the council that the fund missed its actuarially determined contribution (ADC) in several recent years and that market losses in 2022 and changes to demographic and investment assumptions have increased liabilities. Carey said the state now requires a remediation plan and that the pension board's preferred proposal would demonstrate a credible path back to full funding.

Carey summarized the board's preferred package: a one-time $125,000 contribution from the sheriff's commissary fund in 2024 and $100,000 annually thereafter; a county contribution of $125,000 in 2024 plus one-third of the computed ADC in 2025'27; an employer contribution-rate ramp that would reach roughly 31% of payroll by 2030 in the board's scenario; and a 2% across-the-board raise for active employees in 2027. Carey said those numbers are "substantial" but would create cushion and bring the plan back toward the funded goal under the assumptions used in the presentation.

Robinson said the pension board also plans to seek member concessions that could reduce cost, citing one example: removing overtime from pensionable compensation for some categories of pay. "If we eliminate any amount of that overtime from being factored into the deputy's retirement, then that would be some cost savings," he said, framing that as a potential show of good faith if the council is asked to provide additional funding.

During questions, council members pushed on alternatives: whether a large lump-sum payment would be more efficient, what the state's oversight options include, and how much the county itself might be required to contribute by statute versus what the board is asking. Carey said an injection helps but does not fully replace the need to meet annual ADCs because of amortization rules; he also described the statutory remedies the state could take if plans remain delinquent.

Carey and Robinson said the pension board will present options to the Indiana oversight committee and return to county council with more specific scenarios. Council members agreed to further work sessions and to consider the pension board's requests during upcoming budget hearings. The sheriff requested permission to present the options to the state oversight committee and said he would report back after that meeting.

Next steps: the pension board and county staff will refine cost scenarios (including a lump-sum alternative) and return to council at the October budget meetings for further consideration and possible formal action.