Administration and Finance Committee Considers PERF Employee Retirement Plan Changes - July 14, 2026
Administration and Finance Committee Considers PERF Employee Retirement Plan Changes - July 14, 2026
The Administration and Finance Committee of the Indianapolis-Marion County City-County Council met on July 14, 2026 at 10:30 UTC to consider Proposal No. 208, 2026, a time-sensitive measure allowing certain employees to participate in the Public Employees' Retirement Fund (PERF) as administered by the Indiana Public Retirement System. The committee heard a presentation from City Controller Abby Hanson and HR Director Tawana Ellis, deliberated, and unanimously approved the proposal.
Discussion Items
- Proposal 208 – PERF Participation: Abby Hanson explained that Senate Enrolled Act 14 requires employers offering both PERF Hybrid (defined benefit) and My Choice (defined contribution) plans to provide a one-time opportunity for eligible employees hired between 2017 and 2021 (who had no choice) to switch to the Hybrid plan. This impacts 564 employees. The city's contribution rate would increase from 11.2% to 14.2% of their salaries if they choose to move. Hanson stated the administration believes it is the right thing to do and it would help retain employees.
- Councilor Boots asked whether elected officials on the council are among the 564 employees. Hanson said she would need to check the list and could follow up.
Key Outcomes
- The committee voted unanimously (all ayes, no nays) to approve Proposal 208. The motion was moved and seconded, and all members present voted in favor. The meeting then adjourned.
Meeting Transcript
Good evening. Welcome to the Adman and Finance Committee meeting. I start with the introductions to my left. Thank you, Mr. Chair. Derek Cahill, District 23. Thank you, Mr. Chairman. Mike Dilk, District 24. Thank you, Mr. Chair. Brian Mowery, District 25. Thank you, Mr. Chair Nick Roberts, District 4. Thank you, Chairman. Andy Nielsen, District 14. Thank you, Mr. Chairman Dan Boots, District 3. Thank you, Mr. Chairman. Maggie Lewis, District 5. Frank Mascarry, District 19 on the Southeast Side. Um, this we have only one proposal. This is time sensitive. That's what we're having, just one. Proposal 208 elects uh allows certain employees to participate in the public employees retirement fund. And Abby, you have the floor. Good evening, Mr. Chairman and members of the committee. I'm Abby Hanson, the controller with Tawana Ellis, our HR director. We are appreciative of you holding a meeting for this because it is a little bit time sensitive. So we want to start by saying thank you. Our presentation is relatively brief, but we are going to start with terminology and history, just because this is complicated and can be kind of confusing, so we thought we'd educate you so you understood uh what it is what we're asking to change. So first starting with a few of the definitions, but the PERP hybrid is a defined benefit plan. It provides benefits that are determined by a formula based on the employees' compensation and the number of years of service the employee had to complete it before retirement. PERP Hybrid had both the pension and a defined contribution account, formerly known as an uh annuity account or savings account, excuse me, an annuity savings account, and employees are vested after 10 years of service. PERP MyCHOIS is a defined contribution plan, which is the annuity savings account only, and employees are vested after five years of service. So prior to 2017, all employees were members of the PERP hybrid plan, which includes the pension and annuity savings account. Between 2017 and 2021, the majority employees are members of the my choice plan only. Beginning in 2022 to present, employees have a choice to be members of the PERP hybrid or my choice until the passing of Senate enroll Act 14. So under sin um under Send and Enrolled Act 14, employers that offer both the hybrid and the my choice plan provides eligible employees who did not have an opportunity to the hybrid plan and who are vested in the my choice plan with a one-time opportunity to move to the hybrid. So this impacts 564 employees who were hired in that period of time when they did not have an option. We have no idea if everyone's gonna choose to move, but they could. And the cost their cost does exist to us as the employer because it will raise our contribution from 11.2 percent to 14.2 percent of their salaries. But given that they are the only set of people who did not have the opportunity to make a decision, we feel like it's the right thing to do to offer this opportunity, and it has been something that we have heard over time that has been a detriment to people wanting to stay with the city of Indianapolis because this is a benefit they weren't given the opportunity to have. So with that, we'll take any questions that you might have. Thank you for presentation. Uh any questions? Counselors counselor boots. Thank you, Mr.
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