Some Allen County sheriff’s officers and retirees could receive better pension benefits if the County Council agrees to spend an extra $366,000 this year.
The Sheriff’s Merit Board voted unanimously Thursday to support a change in pension benefits, retroactive to 1995. The change puts the plan in line with what most Indiana counties offer. The County Council will consider the extra funding next week.
Seventeen retired officers would receive larger pension checks, and the changes would affect current officers who will eventually retire. The 17 officers who retired since 1995 could receive a few hundred extra dollars in their monthly pension check, depending on their years of service.
But the bulk of the $366,487 needed to pay for the changes would allow the county to save for future retirees, attorney John Feighner told the merit board.
Sheriff Ken Fries asked the plan’s administrator to review the benefits after a retired officer filed a tort claim. In the claim, the officer said his benefits are unfairly lower compared with retired officers from other counties. Fries wanted to ensure Allen County’s benefits are fair and competitive, Feighner said, speaking for Fries, who was out of town.
Under Allen County’s current plan, officers can retire at age 55. They can also retire after working 25 years but wouldn’t begin receiving pension until turning 55.
But officers who work beyond their 25th year don’t get credit for the extra time when their pension amounts are calculated. Likewise, officers who hit 25 years before turning 55 aren’t eligible for larger pensions, said Elaine Beaty, with McCready and Keene, an actuary service.
Beaty recommended that benefits could increase up to 32 years of service – the ceiling used in two-thirds of Indiana counties.
The proposed changes would even the playing field, Capt. Ron Rayl said, and would make the benefits based solely on years worked, not how old an officer is at retirement.
This year, the county set aside $1.2 million to pay for officer retirement benefits. A mix of property taxes, interest revenue and miscellaneous fees covers those expenses.
Beaty recommended the county increase the amount to $1.6 million. The expanded benefits would have to be funded in future years too, she said.
County Councilwoman Paula Hughes, R-2nd, said the council would consider the ongoing cost during budget hearings this summer.
But she said the county faces a budget shortfall next year because of new caps on property taxes.
