LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6075 NOTE PREPARED: Nov 5, 2021
BILL NUMBER: SB 78 BILL AMENDED:
SUBJECT: 1977 Pension and Disability Fund.
FIRST AUTHOR: Sen. Boots BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill provides that after July 1, 2022, if the board of trustees of the Indiana
Public Retirement System (INPRS) determines that a new police officer or firefighter in the Public
Employees' Retirement Fund (PERF) should be a member of the 1977 Fund (‘77 Fund), the system board
shall require the employer to transfer the member into the ‘77 Fund and contribute the amount that the INPRS
board determines is necessary to fund fully the member's service credit in the ‘77 Fund for all service earned
as a police officer or firefighter in PERF. It provides that a police officer or firefighter who is an active
member of the ‘77 Fund with an employer that participates in the ‘77 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 ‘77 Fund, is a member of the ‘77 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 Date: July 1, 2022.
Explanation of State Expenditures: The bill may increase workload for INPRS to determine if new police
officers or fire fighters should be in the ‘77 Fund rather than in PERF and enforce the transfer of individuals
from PERF to the ‘77 Fund. The costs of administering the ‘77 Fund are paid from the fund.
Explanation of State Revenues: If the bill results in increased membership in the ‘77 Fund and reduced
membership in PERF, the ‘77 Fund would receive increased revenues in the form of additional employer
contributions while PERF would see reduced revenues from employer contributions. [This would be coupled
with an increase in liabilities to pay future pension benefits for the members of the ‘77 Fund and reduced
liabilities for PERF.]
SB 78 1 Explanation of Local Expenditures: If additional police officers and fire fighters are placed into the ‘77
Fund rather than into PERF, the employing police and fire departments would pay higher employer
contributions for these employees. The employer contribution rates for the ‘77 Fund is 17.5% of wages for
CY 2022 while the rate for PERF is 11.2% of wages.
Explanation of Local Revenues:
State Agencies Affected: Indiana Public Retirement System.
Local Agencies Affected: Local police and fire departments.
Information Sources: Interim Study Committee on Pension Management Oversight,
October 7, 2021 Meeting,
https://iga.in.gov/information/archives/2021/video/committee_i_pension_management_oversight_interim
_study_committee_on/
INPRS. 2021-2022 Employer Contribution Rates for the Indiana Public Retirement System Pension
Plans,
https://www.in.gov/inprs/employers/employer-communication/er-contribution-rate-info/
Fiscal Analyst: Camille Tesch, 317-232-5293.
SB 78 2