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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.