Indiana will use a chunk of its $2.2 billion surplus to make contributions to the state’s pension funds, Gov. Mitch Daniels announced last week.
The state will put a total of $361 million in its various pension funds.
The contributions include $207 million in teacher pensions, $90 million in pensions for judges and $32 million for state police pensions. Others are the $208 million in the pre-1996 Teachers’ Retirement Fund, $17.4 million in the Prosecutors’ Pension Fund, and $15 million in the Conservation, Gaming and Excise Officers’ Pension fund.
“Many pension funds in other states are headed for massive defaults, but not here,” Daniels said at a press conference touting the contributions.
The surplus is more than 14% of the state budget.
A 2011 law requires that a surplus over 10% of the budget triggers an automatic taxpayer rebate.
Of the current year surplus, $720 million will be used to give taxpayers an automatic refund.
Daniels made the announcement as he closes his final year in office. He will become president of Purdue University in January.