Brought to you by WBIW News and Network Indiana
Last updated on Tuesday, June 19, 2012
(UNDATED) - A new Pew Research study shows Indiana is facing a major shortfall in funding public retirement systems.
The study shows Indiana has a shortfall of about 13.7 billion dollars for its pension promises and 400 million dollars for its retiree health care promises.
David Draine, Senior Researcher at the Pew Center on the States, says by and large, it's the teachers plan that is responsible for the shortfall. He says the data only goes back to 1997 but in that year, the teachers plan was only 34-percent funded but Indiana has put effort to try and close the gap and is now better funded than in the past.
Draine says Indiana certainly isn't in the worst shape. He says other states are below the 55-percent threshold such as Kentucky, Illinois, Rhode Island and Connecticut. Draine adds that Indiana has taken measures to close the entire shortfall but it has taken time because the gap is so large.
Jeff Huttson with the Indiana Public Retirement System says they are about ten percent better funded than the national average. Huttson says studies like this usually include a teachers retirement fund that serves as a "pay-as-you-go plan" which was never intended to be actually funded.
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