Pension Board Suspends Outsourcing Annuity Program
Indiana's pension board is putting off a decision on whether to outsource the administration of an annuity program for retirees.
On Monday, a legislative oversight panel warned against hiring a private firm to handle the annuity program.
But INPRS executive director Steve Russo says that contradicts a simultaneous directive not to incur any unfunded liability.
He says even the safest investment carries a risk of falling short of income projections.
If the state farms out the program to a private fund manager, retirees would buy their annuity directly from that firm, and it would be the company's assets at risk, not the states.