Flood Warning issued May 4 at 2:44PM EDT expiring May 5 at 2:44AM EDT in effect for: Jackson, Lawrence, Washington
Those in charge of investing the pension funds of Indiana's state and local governments and schools are adjusting their sights downward.After a bad year in 2011, they are now forecasting lower returns in the future, RTV6's Norman Cox reported.Last year, the state only made about 1 percent on the money it has invested to pay pensions for state and local government employees and teachers.So far this year it's a bit better, but not enough to prevent the Indiana Public Retirement System from downgrading its long-term expectations for future returns.Officials have now set that figure at 6.75 percent, the lowest in the country.However, experts said it doesn't mean Indiana is earning the least; it's just projecting the least, which officials believe is being realistic."Essentially what it's saying is that we have one of the lowest and most conservative assumed rates of return in the nation, said INPRS spokesperson Jeff Hutson. It's because we simply don't believe that the market and the economy is going to generate any real home run returns for many investors, but including the Indiana Public Retirement System."Officials said Indiana is close to achieving the new investment return projection, and they said they hope actual returns go above that figure.If returns continue to come in below expectations, it won't affect payments to current or future retirees, but it will require them to collect more money from their employers.