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Indiana Pension Debate

Legislators are prodding Indiana's state pension system to reconsider a plan to farm out an annuity for retirees to a private company.

The Indiana Public Retirement System guarantees workers a seven-and-a-half-percent return if they reinvest their annuity savings accounts with the state when they retire.

That's higher than system's projection of how its own investments can be expected to perform.

Spokesman Jeffrey Hutson says if the state met those expectations, it would pay out 340-million dollars more than it brings in.

Legislators have supported INPRS's plan to reduce the guaranteed rate next year and bring the numbers back into line.

But lawmakers in both parties object to the plan to do it by hiring a private firm to administer an annuity linked to market rates.