Indiana pensions hit as economic doldrums continue - 13 WTHR Indianapolis

Indiana pensions hit as economic doldrums continue

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INDIANAPOLIS -

Indiana's public pension overseers are readjusting for a gloomier financial future after taking an investment hit last year.

Officials from the Indiana Public Retirement System told state lawmakers Tuesday they earned only 1 percent on investments last year. They say that wasn't a major blow to the pension funds for public employees, but it spurred them to lower expectations on future earnings. That could result in either an increase in contributions or a decrease in benefits paid out by pension plans.

Officials say Indiana still sits on better ground than many other states with much larger unfunded pension obligations. Indiana's public pensions were covered for 81 percent of what they owe workers last year.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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