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Related Link: Hoosiers For Higher EducationRelated Link: Indiana State Teachers Retirement Fund
Editor's Note: The following is an explanation from Indiana University President Myles Brand of "Referendum Question 2," which will appear on Indiana ballots on election day, Nov. 5.
An issue of importance to Indiana University and the future of higher education will appear on the ballot Nov. 5, Referendum Question 2. Let me review some common questions about this referendum.
Q: What is Referendum Question 2?
A: Wording of the Referendum Question 2 is as follows: "Shall Section 12 of Article 11 of the Constitution of the State of Indiana be amended to allow state retirement funds to invest in stocks and other securities?"
Q: What are the implications of the amendment?
A: The present funding liability of the state Teachers Retirement Fund is approximately $6 billion, with a projected future liability of $43 billion.
Passage of Question 2 would enable restructuring of the investment management of state retirement funds, removing the present restriction to bonds and allowing the funds to take advantage of the greater income possible from investing in stocks or equities. This expansion of investment opportunity could result in the decrease, perhaps even the elimination, of the future liability.
Q: Why is this important to Indiana University?
A: Several thousand of our employees have retirement plans that are managed under the state's Public Employee's Retirement Fund (PERF).
Q: Is this a radical proposal?
A: No. Currently, 48 states allow prudent diversification of state retirement funds.
If you have more questions, please feel free to call Sue Talbot, director of the Hoosiers for Higher Education office at IU, at 800-824-3044 or 812-855-0921, or E-mail her at hhe@indiana.edu.