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Pension Stabilization Fund a good use for surplus

Posted by Tom Mellish, Executive Director, IRTA on Aug 3, 2015 5:16:00 PM

After reading the Indianapolis Star on Saturday morning, August 1, 2015 I ask that you join me in emailing, or writing, Governor Pence on what he should do with the $210 million dollar surplus that he has sole discretion on how to spend. He mentioned many areas where the money could be used, but not once mentioned that the Pension Stabilization Fund was even in consideration. If you did not write the first time I sent this message out, I ask you to do so now. If you previously wrote the governor, I don’t think it would hurt to do it again.

In 2013 he used all $66 million to pay off prison construction loans and none into the Pension Stabilization Fund. If Governor Pence this year would use half of the surplus amount ($100 million) and pay it toward the PSF, the legislature could then grant a COLA and/or a “13th Check” to retired educators in 2016 without increasing the liability on the pre-1996 Retirement Fund.  I will give you  points that you may want to use in your personal emails or letters to the Governor:

  • Paying down Pension Stabilization Fund helps long term fiscal health of state and bond ratings
  • Legislature would have the opportunity to give a COLA without further burden to pre-1996 unfunded liability
  • Over 14,000 retired educators make less than $1,000/month in their pension
  • Over 7 years without a cost of living increase
  • Retired Educators have lost 16 percent purchasing power since 2008
  • Less spending, less tax revenue

Please remember to write in a polite and positive manner in your own words. Share any hardships that you have experienced due to lack of a pension increase in last 7 years.

Thank you for your support.

Where to Write

The Honorable Mike Pence
Office of the Governor
200 West Washington Street, Room 206
Indianapolis, IN  46204

Click here to email the Governor

 

Telephone - 317-232-4567

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