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Thursday, March 11, 2004

Indiana Law - Questions raised about pension privacy measure

This editorial today in the Indianapolis Star is titled "Putting the glare on PERF 'privacy'." It begins:

A little-noticed amendment to a pension bill passed during the just-concluded legislative session could cost taxpayers dearly by locking the door to public records.

Gov. Joe Kernan should veto House Bill 1285 and urge the legislature to honestly address the issues of privacy and accountability that the measure purports to resolve.

On the surface, the bill seems innocent enough. It requires a feasibility study of early withdrawals from the Public Employees Retirement Fund in cases of dire need. The rub, however, is an amendment, offered by Sen. Joseph Harrison, R-Attica, that would declare all retirement fund members' records -- including those of legislators -- confidential.

The amendment is a backlash to efforts by WTHR (Channel 13) to review PERF records in the course of a probe into possible mishandling of those funds. Media investigations in other states have turned up public pension fraud that has poured millions into undeserving pockets, and PERF is fair game given its management scandals and a criminal conviction within the past year.

But when Channel 13 asked to review PERF records, and state Public Access Counselor Michael Hurst opined that the law did not stand in the way, the legislature slammed the door, as it has done routinely on public information issues in recent years.

The bill at issue, HEA 1285, passed the House with this digest:
Early withdrawal of PERF contributions. Authorizes a member of the public employees' retirement fund (PERF), before retirement, to withdraw voluntary contributions to the member's annuity savings account when the member demonstrates an immediate and great financial need.
Per the Senate amendments, that language was changed to a study committee and the provisions referenced in the Star editorial were inserted. Here is HEA 1285 as passed and eligible for the Governor's review. Interestingly, the provisions making the records confidential are retroactive to September 1, 2003.

Note: A check of the advisory opinions issued by the Indiana Public Access Counselor indicates that NO advisory opinions have been issued since September 16, 2003, although it looks like about half-a-dozen were issued per month before that date.

[Update] I'm told the Public Access Counselor indeed may have issued advisory opinions since September 16, 2003, but that they have not been publicly posted. Interesting.

Posted by Marcia Oddi on March 11, 2004 08:00 AM
Posted to Indiana Law