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