*SB0078.1*
January 7, 2022
SENATE BILL No. 78
_____
DIGEST OF SB 78 (Updated January 5, 2022 10:41 am - DI 140)
Citations Affected: IC 36-8.
Synopsis: 1977 pension and disability fund. Provides that after July 1,
2022, if the board of trustees of the Indiana public retirement system
(system board) determines that a new police officer or firefighter in the
public employees' retirement fund (PERF) should be a member of the
1977 fund, the system board shall require the employer to transfer the
member into the 1977 fund and contribute the amount that the system
board determines is necessary to fund fully the member's service credit
in the 1977 fund for all service earned as a police officer or firefighter
in PERF. Provides that a police officer or firefighter who is an active
member of the 1977 fund with an employer that participates in the
1977 fund, separates from that employer, and more than 180 days after
the date of the separation becomes employed as a full-time police
officer or firefighter with the same or a second employer that
participates in the 1977 fund, is a member of the 1977 fund without
meeting the age limitations under certain circumstances. (The
introduced version of this bill was prepared by the interim study
committee on pension management oversight.)
Effective: July 1, 2022.
Boots, Ford Jon, Niezgodski
January 4, 2022, read first time and referred to Committee on Pensions and Labor.
January 6, 2022, reported favorably — Do Pass.
SB 78—LS 6075/DI 141 January 7, 2022
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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SENATE BILL No. 78
A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 36-8-1-9.5 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2022]: Sec. 9.5. "PERF" refers to the public employees'
4 retirement fund established under IC 5-10.3-2-1.
5 SECTION 2. IC 36-8-3.2-2, AS AMENDED BY P.L.35-2012,
6 SECTION 108, IS AMENDED TO READ AS FOLLOWS
7 [EFFECTIVE JULY 1, 2022]: Sec. 2. (a) A person who is an applicant
8 to become a firefighter or police officer must, before being hired, be
9 certified by the local board to the board of trustees of the Indiana public
10 retirement system as having passed the minimum agility and aptitude
11 tests outlined in this chapter.
12 (b) An applicant who:
13 (1) passes the baseline statewide physical and mental
14 examination under IC 36-8-8-19; and
15 (2) meets the conditions for eligibility under IC 36-8-8-7;
16 shall be a member of the 1977 fund.
17 SECTION 3. IC 36-8-4-7, AS AMENDED BY P.L.103-2021,
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1 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2022]: Sec. 7. (a) Subject to IC 36-8-4.7, a person may not be
3 appointed as a member of the:
4 (1) fire department after the person has reached thirty-six (36)
5 years of age; or
6 (2) police department after the person has reached forty (40) years
7 of age.
8 A person may be reappointed as a member of the any department only
9 if the person is a former member or a retired member not yet receiving
10 retirement benefits of the 1925, 1937, 1953, or 1977 fund and can
11 complete twenty (20) years of service before reaching sixty (60) years
12 of age.
13 (b) This section does not apply to a fire chief appointed under a
14 waiver under section 6(c) of this chapter or a police chief appointed
15 under a waiver under section 6.5(c) of this chapter.
16 (c) A person must pass the aptitude, physical agility, and physical
17 examination required by the local board of the fund and by
18 IC 36-8-8-19 to be appointed or reappointed as a member of the
19 department.
20 (d) A fire chief appointed under a waiver under section 6(c) of this
21 chapter or police chief appointed under a waiver under section 6.5(c)
22 of this chapter who is receiving, or is entitled to receive, benefits from
23 the 1925, 1937, 1953, or 1977 fund may receive those benefits while
24 serving as chief, subject to all normal requirements for receipt of a
25 benefit, including a separation from service.
26 SECTION 4. IC 36-8-8-3, AS AMENDED BY P.L.103-2021,
27 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2022]: Sec. 3. (a) If a town establishes a board of metropolitan
29 police commissioners, or if a town becomes a city, the municipality
30 shall participate in the 1977 fund and shall enroll all full-time police
31 officers and firefighters in the 1977 fund. However, if a police officer
32 or former marshal is a member of the public employees' retirement
33 fund, the police officer or former marshal may continue as a member
34 of that fund instead of the 1977 fund. Notwithstanding the age
35 requirements under section 7(a) of this chapter, a police officer or
36 former marshal employed by a municipality at the time the
37 municipality enters the 1977 fund under this section shall be a member
38 of the 1977 fund unless the police officer or former marshal elects to
39 continue as a member of the public employees' retirement fund. A
40 person may become a member of the 1977 fund under this subsection
41 without meeting the age limitation under section 7(a) of this chapter
42 only if the person satisfies:
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1 (1) any aptitude, physical agility, or physical and mental standards
2 established by a local board under IC 36-8-3.2; and
3 (2) the minimum standards that are:
4 (A) adopted by the system board under section 19 of this
5 chapter; and
6 (B) in effect on the date the person becomes a member of the
7 1977 fund.
8 Credit for prior service of a person who becomes a member of the 1977
9 fund under this subsection shall be determined under section 18 or 18.1
10 of this chapter. No service credit beyond that allowed under section 18
11 or 18.1 of this chapter may be recognized under the 1977 fund.
12 (b) If a unit did not establish a 1937 fund for its firefighters, the unit
13 may participate in the public employees' retirement fund or it may
14 participate in the 1977 fund. If a unit established a 1937 fund for its
15 firefighters, the unit is and shall remain a participant in the 1977 fund.
16 (c) A unit that:
17 (1) has not established a pension fund for its firefighters; or
18 (2) is participating in the public employees' retirement fund under
19 subsection (b);
20 may participate in the 1977 fund upon approval by the fiscal body,
21 notwithstanding IC 5-10.3-6-8. A unit that participates in the 1977 fund
22 under this subsection must comply with section 21 of this chapter.
23 However, if a police officer or firefighter is a member of the public
24 employees' retirement fund, the police officer or firefighter may
25 continue as a member of that fund instead of the 1977 fund.
26 (d) If a unit that participates in the 1977 fund provides longevity
27 increases, the amount of the longevity increase provided in a year must
28 be greater than or equal to the amount of the longevity increase
29 provided in the previous year.
30 SECTION 5. IC 36-8-8-5, AS AMENDED BY P.L.35-2012,
31 SECTION 117, IS AMENDED TO READ AS FOLLOWS
32 [EFFECTIVE JULY 1, 2022]: Sec. 5. (a) The system board shall:
33 (1) determine eligibility for and make payments of benefits,
34 except as provided in section 12 of this chapter;
35 (2) in accordance with the powers and duties granted it in
36 IC 5-10.3-5-3 through IC 5-10.3-5-6, IC 5-10.5-4, and
37 IC 5-10.5-5, administer the 1977 fund;
38 (3) provide by rule for the implementation of this chapter; and
39 (4) authorize deposits.
40 (b) A determination by the system board may be appealed under the
41 procedures in IC 4-21.5.
42 (c) The powers and duties of the director appointed by the system
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1 board, the actuary of the system board, and the attorney general, with
2 respect to the 1977 fund, are those specified in IC 5-10.3-3,
3 IC 5-10.3-4, and IC 5-10.5.
4 (d) The system board may hire additional personnel, including
5 hearing officers, to assist it in the implementation of this chapter.
6 (e) The 1977 fund records of individual members and membership
7 information are confidential, except for the name and years of service
8 of a 1977 fund member.
9 (f) After July 1, 2022, if the system board determines that a new
10 police officer or firefighter in PERF should be a member of the
11 1977 fund, the system board shall require the employer to:
12 (1) transfer the member into the 1977 fund; and
13 (2) contribute the amount that the system board determines
14 is necessary to fund fully the member's service credit in the
15 1977 fund for all service earned as a police officer or
16 firefighter in PERF.
17 SECTION 6. IC 36-8-8-7, AS AMENDED BY P.L.96-2020,
18 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2022]: Sec. 7. (a) Subject to IC 36-8-4.7 and except as
20 provided in subsections (d), (e), (f), (g), (h), (k), (l), and (m):
21 (1) a police officer who is less than forty (40) years of age; or
22 (2) a firefighter who is less than thirty-six (36) years of age;
23 who passes the baseline statewide physical and mental examinations
24 required under section 19 of this chapter shall be a member of the 1977
25 fund and is not a member of the 1925 fund, the 1937 fund, or the 1953
26 fund.
27 (b) A police officer or firefighter with service before May 1, 1977,
28 who is hired or rehired after April 30, 1977, may receive credit under
29 this chapter for service as a police officer or firefighter prior to entry
30 into the 1977 fund if the employer who rehires the police officer or
31 firefighter chooses to contribute to the 1977 fund the amount necessary
32 to amortize the police officer's or firefighter's prior service liability over
33 a period of not more than thirty (30) years, the amount and the period
34 to be determined by the system board. If the employer chooses to make
35 the contributions, the police officer or firefighter is entitled to receive
36 credit for the police officer's or firefighter's prior years of service
37 without making contributions to the 1977 fund for that prior service. In
38 no event may a police officer or firefighter receive credit for prior years
39 of service if the police officer or firefighter is receiving a benefit or is
40 entitled to receive a benefit in the future from any other public pension
41 plan with respect to the prior years of service.
42 (c) Except as provided in section 18 of this chapter, a police officer
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1 or firefighter is entitled to credit for all years of service after April 30,
2 1977, with the police or fire department of an employer covered by this
3 chapter.
4 (d) A police officer or firefighter with twenty (20) years of service
5 does not become a member of the 1977 fund and is not covered by this
6 chapter, if the police officer or firefighter:
7 (1) was hired before May 1, 1977;
8 (2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both
9 of which were repealed September 1, 1981); and
10 (3) is rehired after April 30, 1977, by the same employer.
11 (e) A police officer or firefighter does not become a member of the
12 1977 fund and is not covered by this chapter if the police officer or
13 firefighter:
14 (1) was hired before May 1, 1977;
15 (2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both
16 of which were repealed September 1, 1981);
17 (3) was rehired after April 30, 1977, but before February 1, 1979;
18 and
19 (4) was made, before February 1, 1979, a member of a 1925,
20 1937, or 1953 fund.
21 (f) A police officer or firefighter does not become a member of the
22 1977 fund and is not covered by this chapter if the police officer or
23 firefighter:
24 (1) was hired by the police or fire department of a unit before May
25 1, 1977;
26 (2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both
27 of which were repealed September 1, 1981);
28 (3) is rehired by the police or fire department of another unit after
29 December 31, 1981; and
30 (4) is made, by the fiscal body of the other unit after December
31 31, 1981, a member of a 1925, 1937, or 1953 fund of the other
32 unit.
33 If the police officer or firefighter is made a member of a 1925, 1937, or
34 1953 fund, the police officer or firefighter is entitled to receive credit
35 for all the police officer's or firefighter's years of service, including
36 years before January 1, 1982.
37 (g) As used in this subsection, "emergency medical services" and
38 "emergency medical technician" have the meanings set forth in
39 IC 16-18-2-110 and IC 16-18-2-112. A firefighter who:
40 (1) is employed by a unit that is participating in the 1977 fund;
41 (2) was employed as an emergency medical technician by a
42 political subdivision wholly or partially within the department's
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1 jurisdiction;
2 (3) was a member of the public employees' retirement fund during
3 the employment described in subdivision (2); and
4 (4) ceased employment with the political subdivision and was
5 hired by the unit's fire department due to the reorganization of
6 emergency medical services within the department's jurisdiction;
7 shall participate in the 1977 fund. A firefighter who participates in the
8 1977 fund under this subsection is subject to sections 18 and 21 of this
9 chapter.
10 (h) A police officer or firefighter does not become a member of the
11 1977 fund and is not covered by this chapter if the individual was
12 appointed as:
13 (1) a fire chief under a waiver under IC 36-8-4-6(c); or
14 (2) a police chief under a waiver under IC 36-8-4-6.5(c);
15 unless the executive of the unit requests that the 1977 fund accept the
16 individual in the 1977 fund and the individual previously was a
17 member of the 1977 fund.
18 (i) A police matron hired or rehired after April 30, 1977, and before
19 July 1, 1996, who is a member of a police department in a second or
20 third class city on March 31, 1996, is a member of the 1977 fund.
21 (j) A park ranger who:
22 (1) completed at least the number of weeks of training at the
23 Indiana law enforcement academy or a comparable law
24 enforcement academy in another state that were required at the
25 time the park ranger attended the Indiana law enforcement
26 academy or the law enforcement academy in another state;
27 (2) graduated from the Indiana law enforcement academy or a
28 comparable law enforcement academy in another state; and
29 (3) is employed by the parks department of a city having a
30 population of more than one hundred ten thousand (110,000) but
31 less than one hundred fifty thousand (150,000);
32 is a member of the fund.
33 (k) Notwithstanding any other provision of this chapter, a police
34 officer or firefighter:
35 (1) who is a member of the 1977 fund before a consolidation
36 under IC 36-3-1-5.1 or IC 36-3-1-6.1;
37 (2) whose employer is consolidated into the consolidated law
38 enforcement department or the fire department of a consolidated
39 city under IC 36-3-1-5.1 or IC 36-3-1-6.1; and
40 (3) who, after the consolidation, becomes an employee of the
41 consolidated law enforcement department or the consolidated fire
42 department under IC 36-3-1-5.1 or IC 36-3-1-6.1;
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1 is a member of the 1977 fund without meeting the requirements under
2 sections 19 and 21 of this chapter.
3 (l) Notwithstanding any other provision of this chapter, if:
4 (1) before a consolidation under IC 8-22-3-11.6, a police officer
5 or firefighter provides law enforcement services or fire protection
6 services for an entity in a consolidated city;
7 (2) the provision of those services is consolidated into the law
8 enforcement department or fire department of a consolidated city;
9 and
10 (3) after the consolidation, the police officer or firefighter
11 becomes an employee of the consolidated law enforcement
12 department or the consolidated fire department under
13 IC 8-22-3-11.6;
14 the police officer or firefighter is a member of the 1977 fund without
15 meeting the requirements under sections 19 and 21 of this chapter.
16 (m) A police officer or firefighter who is a member of the 1977 fund
17 under subsection (k) or (l) may not be:
18 (1) retired for purposes of section 10 of this chapter; or
19 (2) disabled for purposes of section 12 of this chapter;
20 solely because of a change in employer under the consolidation.
21 (n) Notwithstanding any other provision of this chapter and subject
22 to subsection (o), a police officer or firefighter who:
23 (1) is an active member of the 1977 fund with an employer that
24 participates in the 1977 fund;
25 (2) separates from that employer; and
26 (3) not later than one hundred eighty (180) days after the date of
27 the separation described in subdivision (2), becomes employed as
28 a full-time police officer or firefighter with the same or a second
29 employer that participates in the 1977 fund;
30 is a member of the 1977 fund without meeting for a second time the
31 age limitation under subsection (a) and the requirements under sections
32 19 and 21 of this chapter. A police officer or firefighter to whom this
33 subsection applies is entitled to receive credit for all years of 1977 fund
34 covered service as a police officer or firefighter with all employers that
35 participate in the 1977 fund.
36 (o) The one hundred eighty (180) day limitation described in
37 subsection (n)(3) does not apply to a member of the 1977 fund who is
38 eligible for reinstatement under IC 36-8-4-11.
39 (p) Notwithstanding any other provision of this chapter, a veteran
40 who is:
41 (1) described in IC 36-8-4.7; and
42 (2) employed as a firefighter or police officer;
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1 is a member of the 1977 fund.
2 (q) Notwithstanding any other provision of this chapter and
3 except as provided in subsection (o), a police officer or firefighter
4 who:
5 (1) is an active member of the 1977 fund with an employer
6 that participates in the 1977 fund;
7 (2) separates from that employer; and
8 (3) more than one hundred eighty (180) days after the date of
9 the separation described in subdivision (2), becomes employed
10 as a full-time police officer or firefighter with the same or a
11 second employer that participates in the 1977 fund;
12 is a member of the 1977 fund without meeting the age limitation
13 under subsection (a) provided the member can accrue twenty (20)
14 years of service credit in the 1977 fund by the time the firefighter
15 becomes sixty (60) years of age. A police officer or firefighter who
16 participates in the 1977 fund under this subsection must pass the
17 baseline statewide physical and mental examination under section
18 19 of this chapter. A police officer or firefighter to whom this
19 subsection applies is entitled to receive credit for all years of 1977
20 fund covered service as a police officer or firefighter with all
21 employers that participate in the 1977 fund.
SB 78—LS 6075/DI 141 9
COMMITTEE REPORT
Madam President: The Senate Committee on Pensions and Labor,
to which was referred Senate Bill No. 78, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill DO PASS.
(Reference is to SB 78 as introduced.)
BOOTS, Chairperson
Committee Vote: Yeas 10, Nays 0
SB 78—LS 6075/DI 141