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Tuesday, March 16, 2004

Indiana Law - More Information on Proposed PERF Information Lock-Down

More information is available this morning on the proposal, via HEA 1285, to amend various retirement fund laws, including the General Assembly's, to limit public access to fund records.

House Enrolled Act 1285 was presented to Governor Kernan on March 11, 2004. Under Article 5, Sec. 14 of the Indiana Constitution, he has "seven days after the day of presentment to act upon such bill."

More editorials and stories today on the proposal. The Indianapolis Star has this editorial. Some quotes:

Our position is: The public does not stand to profit from pension privacy the legislature voted for itself. * * *

Especially legislators. No state employee gets the kind of deal these part-timers enjoy. For every dollar they kick in, the taxpayers contribute $4. That's $5.5 million of your money since 1998, and it's not the only retirement perk these public servants rake in along with their salary, per diem and health benefits.

No wonder HB 1285 was hastily amended retroactive to a time before WTHR (Channel 13) requested a look at the pension funds and was told by the state public access counselor that the law allowed it.

The Munster NWI Times also has a new editorial today. Access it here. The Times also has this story today headlined: "Daniels decries hidden pensions -- GOP candidate: 'We are going to have a major cleanup job to do in Indiana state government.'" Some quotes:
SCHERERVILLE -- GOP gubernatorial candidate Mitch Daniels is taking the state Democratic administration to task for hiding pension payments to corrupt local officials.

"I can't think of a logical reason that you would reward people who chose to abuse the public trust. We are going to have a major cleanup job to do in Indiana state government," Daniels said Monday during a trip to Lake County.

A Times investigation revealed that more than a dozen former Lake County officials convicted of graft are members of the Public Employee Retirement system and eligible for benefits.

PERF officials delayed for more than a month before complying last week with the State's Access to Public Records law and providing the names. They refused to disclose individual records showing how much it pays Lake County officials convicted of lining their pockets. * * *

"Way too much about Indiana government is secret now," Daniels said. "The whole world of pensions is shrouded in secrecy. As part of a general housecleaning, we will be looking to raise Indiana's standards not only in ethics, but also of openness."

Finally, for now, today's Indianapolis Star also has this Letter to the Editor from long-time state Senator Joe Harrison, author of both HEA 1285 and the 2001 changes. Some quotes:
Over the last few years, The Star has been quick to report on scandals and fraud within the Public Employees' Retirement Fund. The problems occurring in that office were frightening. In 2001, we passed a law to protect thousands of current and former state employees' pension records. The intent was to protect all state employees at all levels of government. It was brought to my attention that the 2001 measure covered only a select group, excluding prosecutors, judges, some law enforcement officers and legislators. In turn, we passed a provision this year to make the law all-encompassing.
The Indianapolis Star did indeed bring about the initial investigations of PERF. However, this occurred not in 2001 but in August of 2002, when an investigation by the Star revealed that a convicted felon had been hired to serve as Chief Benefits Officer for Indiana’s Public Employee Retirement Fund.

Posted by Marcia Oddi on March 16, 2004 09:08 AM
Posted to Indiana Law