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Committee hears SB63 for a one-time "thirteenth check"; advocates say SRAs can cover cost
Summary
Lawmakers held testimony on SB63, a proposal for a one-time "thirteenth check" for multiple public retirement systems. Retiree groups urged passage and INPRS presented fiscal detail showing supplemental reserve accounts may cover the estimated $70.2 million cost; the committee took no vote and will revisit the bill in January.
Senator (author) described SB63 as a bipartisan effort to provide a one-time supplemental payment to retirees across several public retirement systems. The bill would cover TRF, PERF, TURF and certain public-safety funds and include an optional flat $50 supplement to many recipients.
Washington-based? (correction: in-session) testimony came from retired-teacher and retiree advocacy groups. Laura Penman, executive director of the Indiana Retired Teachers Association, said many retired educators live on fixed incomes and urged the panel to "continue to recognize the need to supplement the pensions of the teachers who dedicated their lives." Jessica Love of the Retired Indiana Public Employees Association told the committee that the supplemental reserve accounts (SRAs) were designed to pre-fund these types of payments and that, by the fiscal calculations presented, SRAs hold roughly three to five times what each affected fund would need for a one-time check. She stated the overall estimated cost as about $70.2 million and urged limiting any new $50 supplement to SRA funding so the base plans do not take on ongoing liability.
INPRS actuary Andy Blau provided updated fiscal estimates and recommended a technical edit to make clear the $50 supplement should be paid from the SRAs (or the general fund) in order to avoid creating new base-plan liabilities. Committee members thanked witnesses and agreed to continue work over the interim; the committee did not vote on SB63 today and will return to the measure in January.
