State of Indiana may move away from worker pensions

Indiana continues to look at ways to make the state even more fiscally sound.

Legislation expected to be filed next year at the General Assembly automatically would register new state employees as members of a 401(k)-style defined contribution retirement plan, unless the new hires submit additional paperwork and elect to join the state pension fund.

risk of covering retirement benefits should properly fall on individual workers, rather than Hoosier taxpayers, and promoting a defined contribution plan instead of a pension will give employees more control over their retirement savings.

Since 2013, new state employees have had the option to join the defined contribution plan instead of the pension 

If Culver’s plan is enacted into law, INPRS estimates up to 80 percent of state hires may lose their pensions by failing to indicate their interest in joining the fund.

Read the rest here via

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