The Indiana Law Blog

« Law - Kentucky papers are doing an audit of public records availability | Main | Ind. Gov't. - Ice Miller attorney appointed DNR chief »

Thursday, February 10, 2005

Ind. Law - What is being done to resolve the "PERF Privacy" issue from last session?

When I was doing the last entry on public records, I ran across a number of entries from last year on the "PERF Privacy" issue. Here is a review of the issue and a look at what, if anything, is happening this year.

First, the entries from last session.

The initial entry, from March 11, 2004, was based on an Indianapolis Star editorial which said, in part:

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.

Additional entries followed:

• March 14, 2004 - More on PERF Privacy and the Star's editorial

• March 15, 2004 - Even More on PERF Privacy. Here was my conclusion at the end of that entry:

  So what is the answer? As the result of the 2001 law, most PERF records are already subject to this exception to the public records law: "Fund records of individual members and membership information are confidential, except for the name and years of service of a fund member."

  HEA 1285 would add legislators and others omitted to the exception. The Star's story today ends with this quote from Senator Joe Harrison: "Harrison said the legislature could consider opening up pension information so the public can see the amount of pension a lawmaker is getting. But if the General Assembly did that, he said, then 'everyone's ought to be open.'"

  Perhaps that change should be considered -- change the language in all the PERF laws to read: "Fund records of individual members and membership information are confidential, except for the name and years of service, and pension amount received, of a fund member."

• March 15, 2004 - Public Access Counselor Opinion on PERF Privacy Issue

• March 16, 2004 - More Information on Proposed PERF Information Lock-Down

• March 18, 2004 - More on HEA 1285, the PERF Bill

• March 19, 2004 - Governor Kernan Signs PERF Confidentiality Bill into Law. The entry includes a statement issued by Governor Kernan when he signed HEA 1285:

  While personal information must remain confidential, I believe that Indiana law should make more pension information public. The public is entitled not only to the names and dates of service of PERF members, which is available under current law, but also to the amounts being paid to PERF members. Just as salary information for current employees is a public record, pension payment amounts also should be public records. I will work with the 2005 General Assembly to exempt PERF payment amounts from confidentiality restrictions.

Second, of course Governor Kernan was not relected. But what, if anything, is being done to resolve this public records issue this session?

I found one bill introduced this year to resolve the problem, House Bill 1195. The bill is authored by Representative Thompson and assigned to the Committee on Employment and Labor. Its digest reads:

Pension contributions. Provides that records concerning mandatory contributions by the state or another employer to a public retirement fund that are paid on behalf of and individually identifiable to a fund member are public records.

As far as I know, no committee hearing has been scheduled for this bill.

Posted by Marcia Oddi on February 10, 2005 10:51 AM
Posted to Indiana Government | Indiana Law