Indiana 2022 Regular Session

Indiana Senate Bill SB0078 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	SB0078.1
	2	+	January 7, 2022
	3	+	SENATE BILL No. 78
	4	+	_____
	5	+	DIGEST OF SB 78 (Updated January 5, 2022 10:41 am - DI 140)
	6	+	Citations Affected: IC 36-8.
	7	+	Synopsis: 1977 pension and disability fund. Provides that after July 1,
	8	+	2022, if the board of trustees of the Indiana public retirement system
	9	+	(system board) determines that a new police officer or firefighter in the
	10	+	public employees' retirement fund (PERF) should be a member of the
	11	+	1977 fund, the system board shall require the employer to transfer the
	12	+	member into the 1977 fund and contribute the amount that the system
	13	+	board determines is necessary to fund fully the member's service credit
	14	+	in the 1977 fund for all service earned as a police officer or firefighter
	15	+	in PERF. Provides that a police officer or firefighter who is an active
	16	+	member of the 1977 fund with an employer that participates in the
	17	+	1977 fund, separates from that employer, and more than 180 days after
	18	+	the date of the separation becomes employed as a full-time police
	19	+	officer or firefighter with the same or a second employer that
	20	+	participates in the 1977 fund, is a member of the 1977 fund without
	21	+	meeting the age limitations under certain circumstances. (The
	22	+	introduced version of this bill was prepared by the interim study
	23	+	committee on pension management oversight.)
	24	+	Effective: July 1, 2022.
	25	+	Boots, Ford Jon, Niezgodski
	26	+	January 4, 2022, read first time and referred to Committee on Pensions and Labor.
	27	+	January 6, 2022, reported favorably — Do Pass.
	28	+	SB 78—LS 6075/DI 141 January 7, 2022
1	29		Second Regular Session of the 122nd General Assembly (2022)
2	30		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3	31		Constitution) is being amended, the text of the existing provision will appear in this style type,
4	32		additions will appear in this style type, and deletions will appear in this style type.
5	33		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
6	34		provision adopted), the text of the new provision will appear in this style type. Also, the
7	35		word NEW will appear in that style type in the introductory clause of each SECTION that adds
8	36		a new provision to the Indiana Code or the Indiana Constitution.
9	37		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
10	38		between statutes enacted by the 2021 Regular Session of the General Assembly.
11		-	SENATE ENROLLED ACT No. 78
12		-	AN ACT to amend the Indiana Code concerning pensions.
	39	+	SENATE BILL No. 78
	40	+	A BILL FOR AN ACT to amend the Indiana Code concerning
	41	+	pensions.
13	42		Be it enacted by the General Assembly of the State of Indiana:
14		-	SECTION 1. IC 36-8-1-9.5 IS ADDED TO THE INDIANA CODE
15		-	AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
16		-	1, 2022]: Sec. 9.5. "PERF" refers to the public employees'
17		-	retirement fund established under IC 5-10.3-2-1.
18		-	SECTION 2. IC 36-8-3.2-2, AS AMENDED BY P.L.35-2012,
19		-	SECTION 108, IS AMENDED TO READ AS FOLLOWS
20		-	[EFFECTIVE JULY 1, 2022]: Sec. 2. (a) A person who is an applicant
21		-	to become a firefighter or police officer must, before being hired, be
22		-	certified by the local board to the board of trustees of the Indiana public
23		-	retirement system as having passed the minimum agility and aptitude
24		-	tests outlined in this chapter.
25		-	(b) An applicant who:
26		-	(1) passes the baseline statewide physical and mental
27		-	examination under IC 36-8-8-19; and
28		-	(2) meets the conditions for eligibility under IC 36-8-8-7;
29		-	shall be a member of the 1977 fund.
30		-	SECTION 3. IC 36-8-4-7, AS AMENDED BY P.L.103-2021,
31		-	SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32		-	JULY 1, 2022]: Sec. 7. (a) Subject to IC 36-8-4.7, a person may not be
33		-	appointed as a member of the:
34		-	(1) fire department after the person has reached thirty-six (36)
35		-	years of age; or
36		-	SEA 78 2
37		-	(2) police department after the person has reached forty (40) years
38		-	of age.
39		-	A person may be reappointed as a member of the any department only
40		-	if the person is a former member or a retired member not yet receiving
41		-	retirement benefits of the 1925, 1937, 1953, or 1977 fund and can
42		-	complete twenty (20) years of service before reaching sixty (60) years
43		-	of age.
44		-	(b) This section does not apply to a fire chief appointed under a
45		-	waiver under section 6(c) of this chapter or a police chief appointed
46		-	under a waiver under section 6.5(c) of this chapter.
47		-	(c) A person must pass the aptitude, physical agility, and physical
48		-	examination required by the local board of the fund and by
49		-	IC 36-8-8-19 to be appointed or reappointed as a member of the
50		-	department.
51		-	(d) A fire chief appointed under a waiver under section 6(c) of this
52		-	chapter or police chief appointed under a waiver under section 6.5(c)
53		-	of this chapter who is receiving, or is entitled to receive, benefits from
54		-	the 1925, 1937, 1953, or 1977 fund may receive those benefits while
55		-	serving as chief, subject to all normal requirements for receipt of a
56		-	benefit, including a separation from service.
57		-	SECTION 4. IC 36-8-8-3, AS AMENDED BY P.L.103-2021,
58		-	SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
59		-	JULY 1, 2022]: Sec. 3. (a) If a town establishes a board of metropolitan
60		-	police commissioners, or if a town becomes a city, the municipality
61		-	shall participate in the 1977 fund and shall enroll all full-time police
62		-	officers and firefighters in the 1977 fund. However, if a police officer
63		-	or former marshal is a member of the public employees' retirement
64		-	fund, the police officer or former marshal may continue as a member
65		-	of that fund instead of the 1977 fund. Notwithstanding the age
66		-	requirements under section 7(a) of this chapter, a police officer or
67		-	former marshal employed by a municipality at the time the
68		-	municipality enters the 1977 fund under this section shall be a member
69		-	of the 1977 fund unless the police officer or former marshal elects to
70		-	continue as a member of the public employees' retirement fund. A
71		-	person may become a member of the 1977 fund under this subsection
72		-	without meeting the age limitation under section 7(a) of this chapter
73		-	only if the person satisfies:
74		-	(1) any aptitude, physical agility, or physical and mental standards
75		-	established by a local board under IC 36-8-3.2; and
76		-	(2) the minimum standards that are:
77		-	(A) adopted by the system board under section 19 of this
78		-	chapter; and
79		-	SEA 78 3
80		-	(B) in effect on the date the person becomes a member of the
81		-	1977 fund.
82		-	Credit for prior service of a person who becomes a member of the 1977
83		-	fund under this subsection shall be determined under section 18 or 18.1
84		-	of this chapter. No service credit beyond that allowed under section 18
85		-	or 18.1 of this chapter may be recognized under the 1977 fund.
86		-	(b) If a unit did not establish a 1937 fund for its firefighters, the unit
87		-	may participate in the public employees' retirement fund or it may
88		-	participate in the 1977 fund. If a unit established a 1937 fund for its
89		-	firefighters, the unit is and shall remain a participant in the 1977 fund.
90		-	(c) A unit that:
91		-	(1) has not established a pension fund for its firefighters; or
92		-	(2) is participating in the public employees' retirement fund under
93		-	subsection (b);
94		-	may participate in the 1977 fund upon approval by the fiscal body,
95		-	notwithstanding IC 5-10.3-6-8. A unit that participates in the 1977 fund
96		-	under this subsection must comply with section 21 of this chapter.
97		-	However, if a police officer or firefighter is a member of the public
98		-	employees' retirement fund, the police officer or firefighter may
99		-	continue as a member of that fund instead of the 1977 fund.
100		-	(d) If a unit that participates in the 1977 fund provides longevity
101		-	increases, the amount of the longevity increase provided in a year must
102		-	be greater than or equal to the amount of the longevity increase
103		-	provided in the previous year.
104		-	SECTION 5. IC 36-8-8-5, AS AMENDED BY P.L.35-2012,
105		-	SECTION 117, IS AMENDED TO READ AS FOLLOWS
106		-	[EFFECTIVE JULY 1, 2022]: Sec. 5. (a) The system board shall:
107		-	(1) determine eligibility for and make payments of benefits,
108		-	except as provided in section 12 of this chapter;
109		-	(2) in accordance with the powers and duties granted it in
110		-	IC 5-10.3-5-3 through IC 5-10.3-5-6, IC 5-10.5-4, and
111		-	IC 5-10.5-5, administer the 1977 fund;
112		-	(3) provide by rule for the implementation of this chapter; and
113		-	(4) authorize deposits.
114		-	(b) A determination by the system board may be appealed under the
115		-	procedures in IC 4-21.5.
116		-	(c) The powers and duties of the director appointed by the system
117		-	board, the actuary of the system board, and the attorney general, with
118		-	respect to the 1977 fund, are those specified in IC 5-10.3-3,
119		-	IC 5-10.3-4, and IC 5-10.5.
120		-	(d) The system board may hire additional personnel, including
121		-	hearing officers, to assist it in the implementation of this chapter.
122		-	SEA 78 4
123		-	(e) The 1977 fund records of individual members and membership
124		-	information are confidential, except for the name and years of service
125		-	of a 1977 fund member.
126		-	(f) After July 1, 2022, if the system board determines that a new
127		-	police officer or firefighter in PERF should be a member of the
128		-	1977 fund, the system board shall require the employer to:
129		-	(1) transfer the member into the 1977 fund; and
130		-	(2) contribute the amount that the system board determines
131		-	is necessary to fund fully the member's service credit in the
132		-	1977 fund for all service earned as a police officer or
133		-	firefighter in PERF.
134		-	SECTION 6. IC 36-8-8-7, AS AMENDED BY P.L.96-2020,
135		-	SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
136		-	JULY 1, 2022]: Sec. 7. (a) Subject to IC 36-8-4.7 and except as
137		-	provided in subsections (d), (e), (f), (g), (h), (k), (l), and (m):
138		-	(1) a police officer who is less than forty (40) years of age; or
139		-	(2) a firefighter who is less than thirty-six (36) years of age;
140		-	who passes the baseline statewide physical and mental examinations
141		-	required under section 19 of this chapter shall be a member of the 1977
142		-	fund and is not a member of the 1925 fund, the 1937 fund, or the 1953
143		-	fund.
144		-	(b) A police officer or firefighter with service before May 1, 1977,
145		-	who is hired or rehired after April 30, 1977, may receive credit under
146		-	this chapter for service as a police officer or firefighter prior to entry
147		-	into the 1977 fund if the employer who rehires the police officer or
148		-	firefighter chooses to contribute to the 1977 fund the amount necessary
149		-	to amortize the police officer's or firefighter's prior service liability over
150		-	a period of not more than thirty (30) years, the amount and the period
151		-	to be determined by the system board. If the employer chooses to make
152		-	the contributions, the police officer or firefighter is entitled to receive
153		-	credit for the police officer's or firefighter's prior years of service
154		-	without making contributions to the 1977 fund for that prior service. In
155		-	no event may a police officer or firefighter receive credit for prior years
156		-	of service if the police officer or firefighter is receiving a benefit or is
157		-	entitled to receive a benefit in the future from any other public pension
158		-	plan with respect to the prior years of service.
159		-	(c) Except as provided in section 18 of this chapter, a police officer
160		-	or firefighter is entitled to credit for all years of service after April 30,
161		-	1977, with the police or fire department of an employer covered by this
162		-	chapter.
163		-	(d) A police officer or firefighter with twenty (20) years of service
164		-	does not become a member of the 1977 fund and is not covered by this
165		-	SEA 78 5
166		-	chapter, if the police officer or firefighter:
167		-	(1) was hired before May 1, 1977;
168		-	(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both
169		-	of which were repealed September 1, 1981); and
170		-	(3) is rehired after April 30, 1977, by the same employer.
171		-	(e) A police officer or firefighter does not become a member of the
172		-	1977 fund and is not covered by this chapter if the police officer or
173		-	firefighter:
174		-	(1) was hired before May 1, 1977;
175		-	(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both
176		-	of which were repealed September 1, 1981);
177		-	(3) was rehired after April 30, 1977, but before February 1, 1979;
178		-	and
179		-	(4) was made, before February 1, 1979, a member of a 1925,
180		-	1937, or 1953 fund.
181		-	(f) A police officer or firefighter does not become a member of the
182		-	1977 fund and is not covered by this chapter if the police officer or
183		-	firefighter:
184		-	(1) was hired by the police or fire department of a unit before May
185		-	1, 1977;
186		-	(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both
187		-	of which were repealed September 1, 1981);
188		-	(3) is rehired by the police or fire department of another unit after
189		-	December 31, 1981; and
190		-	(4) is made, by the fiscal body of the other unit after December
191		-	31, 1981, a member of a 1925, 1937, or 1953 fund of the other
192		-	unit.
193		-	If the police officer or firefighter is made a member of a 1925, 1937, or
194		-	1953 fund, the police officer or firefighter is entitled to receive credit
195		-	for all the police officer's or firefighter's years of service, including
196		-	years before January 1, 1982.
197		-	(g) As used in this subsection, "emergency medical services" and
198		-	"emergency medical technician" have the meanings set forth in
199		-	IC 16-18-2-110 and IC 16-18-2-112. A firefighter who:
200		-	(1) is employed by a unit that is participating in the 1977 fund;
201		-	(2) was employed as an emergency medical technician by a
202		-	political subdivision wholly or partially within the department's
203		-	jurisdiction;
204		-	(3) was a member of the public employees' retirement fund during
205		-	the employment described in subdivision (2); and
206		-	(4) ceased employment with the political subdivision and was
207		-	hired by the unit's fire department due to the reorganization of
208		-	SEA 78 6
209		-	emergency medical services within the department's jurisdiction;
210		-	shall participate in the 1977 fund. A firefighter who participates in the
211		-	1977 fund under this subsection is subject to sections 18 and 21 of this
212		-	chapter.
213		-	(h) A police officer or firefighter does not become a member of the
214		-	1977 fund and is not covered by this chapter if the individual was
215		-	appointed as:
216		-	(1) a fire chief under a waiver under IC 36-8-4-6(c); or
217		-	(2) a police chief under a waiver under IC 36-8-4-6.5(c);
218		-	unless the executive of the unit requests that the 1977 fund accept the
219		-	individual in the 1977 fund and the individual previously was a
220		-	member of the 1977 fund.
221		-	(i) A police matron hired or rehired after April 30, 1977, and before
222		-	July 1, 1996, who is a member of a police department in a second or
223		-	third class city on March 31, 1996, is a member of the 1977 fund.
224		-	(j) A park ranger who:
225		-	(1) completed at least the number of weeks of training at the
226		-	Indiana law enforcement academy or a comparable law
227		-	enforcement academy in another state that were required at the
228		-	time the park ranger attended the Indiana law enforcement
229		-	academy or the law enforcement academy in another state;
230		-	(2) graduated from the Indiana law enforcement academy or a
231		-	comparable law enforcement academy in another state; and
232		-	(3) is employed by the parks department of a city having a
233		-	population of more than one hundred ten thousand (110,000) but
234		-	less than one hundred fifty thousand (150,000);
235		-	is a member of the fund.
236		-	(k) Notwithstanding any other provision of this chapter, a police
237		-	officer or firefighter:
238		-	(1) who is a member of the 1977 fund before a consolidation
239		-	under IC 36-3-1-5.1 or IC 36-3-1-6.1;
240		-	(2) whose employer is consolidated into the consolidated law
241		-	enforcement department or the fire department of a consolidated
242		-	city under IC 36-3-1-5.1 or IC 36-3-1-6.1; and
243		-	(3) who, after the consolidation, becomes an employee of the
244		-	consolidated law enforcement department or the consolidated fire
245		-	department under IC 36-3-1-5.1 or IC 36-3-1-6.1;
246		-	is a member of the 1977 fund without meeting the requirements under
247		-	sections 19 and 21 of this chapter.
248		-	(l) Notwithstanding any other provision of this chapter, if:
249		-	(1) before a consolidation under IC 8-22-3-11.6, a police officer
250		-	or firefighter provides law enforcement services or fire protection
251		-	SEA 78 7
252		-	services for an entity in a consolidated city;
253		-	(2) the provision of those services is consolidated into the law
254		-	enforcement department or fire department of a consolidated city;
255		-	and
256		-	(3) after the consolidation, the police officer or firefighter
257		-	becomes an employee of the consolidated law enforcement
258		-	department or the consolidated fire department under
259		-	IC 8-22-3-11.6;
260		-	the police officer or firefighter is a member of the 1977 fund without
261		-	meeting the requirements under sections 19 and 21 of this chapter.
262		-	(m) A police officer or firefighter who is a member of the 1977 fund
263		-	under subsection (k) or (l) may not be:
264		-	(1) retired for purposes of section 10 of this chapter; or
265		-	(2) disabled for purposes of section 12 of this chapter;
266		-	solely because of a change in employer under the consolidation.
267		-	(n) Notwithstanding any other provision of this chapter and subject
268		-	to subsection (o), a police officer or firefighter who:
269		-	(1) is an active member of the 1977 fund with an employer that
270		-	participates in the 1977 fund;
271		-	(2) separates from that employer; and
272		-	(3) not later than one hundred eighty (180) days after the date of
273		-	the separation described in subdivision (2), becomes employed as
274		-	a full-time police officer or firefighter with the same or a second
275		-	employer that participates in the 1977 fund;
276		-	is a member of the 1977 fund without meeting for a second time the
277		-	age limitation under subsection (a) and the requirements under sections
278		-	19 and 21 of this chapter. A police officer or firefighter to whom this
279		-	subsection applies is entitled to receive credit for all years of 1977 fund
280		-	covered service as a police officer or firefighter with all employers that
281		-	participate in the 1977 fund.
282		-	(o) The one hundred eighty (180) day limitation described in
283		-	subsection (n)(3) does not apply to a member of the 1977 fund who is
284		-	eligible for reinstatement under IC 36-8-4-11.
285		-	(p) Notwithstanding any other provision of this chapter, a veteran
286		-	who is:
287		-	(1) described in IC 36-8-4.7; and
288		-	(2) employed as a firefighter or police officer;
289		-	is a member of the 1977 fund.
290		-	(q) Notwithstanding any other provision of this chapter and
291		-	except as provided in subsection (o), a police officer or firefighter
292		-	who:
293		-	(1) is an active member of the 1977 fund with an employer
294		-	SEA 78 8
295		-	that participates in the 1977 fund;
296		-	(2) separates from that employer; and
297		-	(3) more than one hundred eighty (180) days after the date of
298		-	the separation described in subdivision (2), becomes employed
299		-	as a full-time police officer or firefighter with the same or a
300		-	second employer that participates in the 1977 fund;
301		-	is a member of the 1977 fund without meeting the age limitation
302		-	under subsection (a) provided the member can accrue twenty (20)
303		-	years of service credit in the 1977 fund by the time the firefighter
304		-	becomes sixty (60) years of age. A police officer or firefighter who
305		-	participates in the 1977 fund under this subsection must pass the
306		-	baseline statewide physical and mental examination under section
307		-	19 of this chapter. A police officer or firefighter to whom this
308		-	subsection applies is entitled to receive credit for all years of 1977
309		-	fund covered service as a police officer or firefighter with all
310		-	employers that participate in the 1977 fund.
311		-	SEA 78 President of the Senate
312		-	President Pro Tempore
313		-	Speaker of the House of Representatives
314		-	Governor of the State of Indiana
315		-	Date: Time:
316		-	SEA 78
	43	+	1 SECTION 1. IC 36-8-1-9.5 IS ADDED TO THE INDIANA CODE
	44	+	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
	45	+	3 1, 2022]: Sec. 9.5. "PERF" refers to the public employees'
	46	+	4 retirement fund established under IC 5-10.3-2-1.
	47	+	5 SECTION 2. IC 36-8-3.2-2, AS AMENDED BY P.L.35-2012,
	48	+	6 SECTION 108, IS AMENDED TO READ AS FOLLOWS
	49	+	7 [EFFECTIVE JULY 1, 2022]: Sec. 2. (a) A person who is an applicant
	50	+	8 to become a firefighter or police officer must, before being hired, be
	51	+	9 certified by the local board to the board of trustees of the Indiana public
	52	+	10 retirement system as having passed the minimum agility and aptitude
	53	+	11 tests outlined in this chapter.
	54	+	12 (b) An applicant who:
	55	+	13 (1) passes the baseline statewide physical and mental
	56	+	14 examination under IC 36-8-8-19; and
	57	+	15 (2) meets the conditions for eligibility under IC 36-8-8-7;
	58	+	16 shall be a member of the 1977 fund.
	59	+	17 SECTION 3. IC 36-8-4-7, AS AMENDED BY P.L.103-2021,
	60	+	SB 78—LS 6075/DI 141 2
	61	+	1 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	62	+	2 JULY 1, 2022]: Sec. 7. (a) Subject to IC 36-8-4.7, a person may not be
	63	+	3 appointed as a member of the:
	64	+	4 (1) fire department after the person has reached thirty-six (36)
	65	+	5 years of age; or
	66	+	6 (2) police department after the person has reached forty (40) years
	67	+	7 of age.
	68	+	8 A person may be reappointed as a member of the any department only
	69	+	9 if the person is a former member or a retired member not yet receiving
	70	+	10 retirement benefits of the 1925, 1937, 1953, or 1977 fund and can
	71	+	11 complete twenty (20) years of service before reaching sixty (60) years
	72	+	12 of age.
	73	+	13 (b) This section does not apply to a fire chief appointed under a
	74	+	14 waiver under section 6(c) of this chapter or a police chief appointed
	75	+	15 under a waiver under section 6.5(c) of this chapter.
	76	+	16 (c) A person must pass the aptitude, physical agility, and physical
	77	+	17 examination required by the local board of the fund and by
	78	+	18 IC 36-8-8-19 to be appointed or reappointed as a member of the
	79	+	19 department.
	80	+	20 (d) A fire chief appointed under a waiver under section 6(c) of this
	81	+	21 chapter or police chief appointed under a waiver under section 6.5(c)
	82	+	22 of this chapter who is receiving, or is entitled to receive, benefits from
	83	+	23 the 1925, 1937, 1953, or 1977 fund may receive those benefits while
	84	+	24 serving as chief, subject to all normal requirements for receipt of a
	85	+	25 benefit, including a separation from service.
	86	+	26 SECTION 4. IC 36-8-8-3, AS AMENDED BY P.L.103-2021,
	87	+	27 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	88	+	28 JULY 1, 2022]: Sec. 3. (a) If a town establishes a board of metropolitan
	89	+	29 police commissioners, or if a town becomes a city, the municipality
	90	+	30 shall participate in the 1977 fund and shall enroll all full-time police
	91	+	31 officers and firefighters in the 1977 fund. However, if a police officer
	92	+	32 or former marshal is a member of the public employees' retirement
	93	+	33 fund, the police officer or former marshal may continue as a member
	94	+	34 of that fund instead of the 1977 fund. Notwithstanding the age
	95	+	35 requirements under section 7(a) of this chapter, a police officer or
	96	+	36 former marshal employed by a municipality at the time the
	97	+	37 municipality enters the 1977 fund under this section shall be a member
	98	+	38 of the 1977 fund unless the police officer or former marshal elects to
	99	+	39 continue as a member of the public employees' retirement fund. A
	100	+	40 person may become a member of the 1977 fund under this subsection
	101	+	41 without meeting the age limitation under section 7(a) of this chapter
	102	+	42 only if the person satisfies:
	103	+	SB 78—LS 6075/DI 141 3
	104	+	1 (1) any aptitude, physical agility, or physical and mental standards
	105	+	2 established by a local board under IC 36-8-3.2; and
	106	+	3 (2) the minimum standards that are:
	107	+	4 (A) adopted by the system board under section 19 of this
	108	+	5 chapter; and
	109	+	6 (B) in effect on the date the person becomes a member of the
	110	+	7 1977 fund.
	111	+	8 Credit for prior service of a person who becomes a member of the 1977
	112	+	9 fund under this subsection shall be determined under section 18 or 18.1
	113	+	10 of this chapter. No service credit beyond that allowed under section 18
	114	+	11 or 18.1 of this chapter may be recognized under the 1977 fund.
	115	+	12 (b) If a unit did not establish a 1937 fund for its firefighters, the unit
	116	+	13 may participate in the public employees' retirement fund or it may
	117	+	14 participate in the 1977 fund. If a unit established a 1937 fund for its
	118	+	15 firefighters, the unit is and shall remain a participant in the 1977 fund.
	119	+	16 (c) A unit that:
	120	+	17 (1) has not established a pension fund for its firefighters; or
	121	+	18 (2) is participating in the public employees' retirement fund under
	122	+	19 subsection (b);
	123	+	20 may participate in the 1977 fund upon approval by the fiscal body,
	124	+	21 notwithstanding IC 5-10.3-6-8. A unit that participates in the 1977 fund
	125	+	22 under this subsection must comply with section 21 of this chapter.
	126	+	23 However, if a police officer or firefighter is a member of the public
	127	+	24 employees' retirement fund, the police officer or firefighter may
	128	+	25 continue as a member of that fund instead of the 1977 fund.
	129	+	26 (d) If a unit that participates in the 1977 fund provides longevity
	130	+	27 increases, the amount of the longevity increase provided in a year must
	131	+	28 be greater than or equal to the amount of the longevity increase
	132	+	29 provided in the previous year.
	133	+	30 SECTION 5. IC 36-8-8-5, AS AMENDED BY P.L.35-2012,
	134	+	31 SECTION 117, IS AMENDED TO READ AS FOLLOWS
	135	+	32 [EFFECTIVE JULY 1, 2022]: Sec. 5. (a) The system board shall:
	136	+	33 (1) determine eligibility for and make payments of benefits,
	137	+	34 except as provided in section 12 of this chapter;
	138	+	35 (2) in accordance with the powers and duties granted it in
	139	+	36 IC 5-10.3-5-3 through IC 5-10.3-5-6, IC 5-10.5-4, and
	140	+	37 IC 5-10.5-5, administer the 1977 fund;
	141	+	38 (3) provide by rule for the implementation of this chapter; and
	142	+	39 (4) authorize deposits.
	143	+	40 (b) A determination by the system board may be appealed under the
	144	+	41 procedures in IC 4-21.5.
	145	+	42 (c) The powers and duties of the director appointed by the system
	146	+	SB 78—LS 6075/DI 141 4
	147	+	1 board, the actuary of the system board, and the attorney general, with
	148	+	2 respect to the 1977 fund, are those specified in IC 5-10.3-3,
	149	+	3 IC 5-10.3-4, and IC 5-10.5.
	150	+	4 (d) The system board may hire additional personnel, including
	151	+	5 hearing officers, to assist it in the implementation of this chapter.
	152	+	6 (e) The 1977 fund records of individual members and membership
	153	+	7 information are confidential, except for the name and years of service
	154	+	8 of a 1977 fund member.
	155	+	9 (f) After July 1, 2022, if the system board determines that a new
	156	+	10 police officer or firefighter in PERF should be a member of the
	157	+	11 1977 fund, the system board shall require the employer to:
	158	+	12 (1) transfer the member into the 1977 fund; and
	159	+	13 (2) contribute the amount that the system board determines
	160	+	14 is necessary to fund fully the member's service credit in the
	161	+	15 1977 fund for all service earned as a police officer or
	162	+	16 firefighter in PERF.
	163	+	17 SECTION 6. IC 36-8-8-7, AS AMENDED BY P.L.96-2020,
	164	+	18 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
	165	+	19 JULY 1, 2022]: Sec. 7. (a) Subject to IC 36-8-4.7 and except as
	166	+	20 provided in subsections (d), (e), (f), (g), (h), (k), (l), and (m):
	167	+	21 (1) a police officer who is less than forty (40) years of age; or
	168	+	22 (2) a firefighter who is less than thirty-six (36) years of age;
	169	+	23 who passes the baseline statewide physical and mental examinations
	170	+	24 required under section 19 of this chapter shall be a member of the 1977
	171	+	25 fund and is not a member of the 1925 fund, the 1937 fund, or the 1953
	172	+	26 fund.
	173	+	27 (b) A police officer or firefighter with service before May 1, 1977,
	174	+	28 who is hired or rehired after April 30, 1977, may receive credit under
	175	+	29 this chapter for service as a police officer or firefighter prior to entry
	176	+	30 into the 1977 fund if the employer who rehires the police officer or
	177	+	31 firefighter chooses to contribute to the 1977 fund the amount necessary
	178	+	32 to amortize the police officer's or firefighter's prior service liability over
	179	+	33 a period of not more than thirty (30) years, the amount and the period
	180	+	34 to be determined by the system board. If the employer chooses to make
	181	+	35 the contributions, the police officer or firefighter is entitled to receive
	182	+	36 credit for the police officer's or firefighter's prior years of service
	183	+	37 without making contributions to the 1977 fund for that prior service. In
	184	+	38 no event may a police officer or firefighter receive credit for prior years
	185	+	39 of service if the police officer or firefighter is receiving a benefit or is
	186	+	40 entitled to receive a benefit in the future from any other public pension
	187	+	41 plan with respect to the prior years of service.
	188	+	42 (c) Except as provided in section 18 of this chapter, a police officer
	189	+	SB 78—LS 6075/DI 141 5
	190	+	1 or firefighter is entitled to credit for all years of service after April 30,
	191	+	2 1977, with the police or fire department of an employer covered by this
	192	+	3 chapter.
	193	+	4 (d) A police officer or firefighter with twenty (20) years of service
	194	+	5 does not become a member of the 1977 fund and is not covered by this
	195	+	6 chapter, if the police officer or firefighter:
	196	+	7 (1) was hired before May 1, 1977;
	197	+	8 (2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both
	198	+	9 of which were repealed September 1, 1981); and
	199	+	10 (3) is rehired after April 30, 1977, by the same employer.
	200	+	11 (e) A police officer or firefighter does not become a member of the
	201	+	12 1977 fund and is not covered by this chapter if the police officer or
	202	+	13 firefighter:
	203	+	14 (1) was hired before May 1, 1977;
	204	+	15 (2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both
	205	+	16 of which were repealed September 1, 1981);
	206	+	17 (3) was rehired after April 30, 1977, but before February 1, 1979;
	207	+	18 and
	208	+	19 (4) was made, before February 1, 1979, a member of a 1925,
	209	+	20 1937, or 1953 fund.
	210	+	21 (f) A police officer or firefighter does not become a member of the
	211	+	22 1977 fund and is not covered by this chapter if the police officer or
	212	+	23 firefighter:
	213	+	24 (1) was hired by the police or fire department of a unit before May
	214	+	25 1, 1977;
	215	+	26 (2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both
	216	+	27 of which were repealed September 1, 1981);
	217	+	28 (3) is rehired by the police or fire department of another unit after
	218	+	29 December 31, 1981; and
	219	+	30 (4) is made, by the fiscal body of the other unit after December
	220	+	31 31, 1981, a member of a 1925, 1937, or 1953 fund of the other
	221	+	32 unit.
	222	+	33 If the police officer or firefighter is made a member of a 1925, 1937, or
	223	+	34 1953 fund, the police officer or firefighter is entitled to receive credit
	224	+	35 for all the police officer's or firefighter's years of service, including
	225	+	36 years before January 1, 1982.
	226	+	37 (g) As used in this subsection, "emergency medical services" and
	227	+	38 "emergency medical technician" have the meanings set forth in
	228	+	39 IC 16-18-2-110 and IC 16-18-2-112. A firefighter who:
	229	+	40 (1) is employed by a unit that is participating in the 1977 fund;
	230	+	41 (2) was employed as an emergency medical technician by a
	231	+	42 political subdivision wholly or partially within the department's
	232	+	SB 78—LS 6075/DI 141 6
	233	+	1 jurisdiction;
	234	+	2 (3) was a member of the public employees' retirement fund during
	235	+	3 the employment described in subdivision (2); and
	236	+	4 (4) ceased employment with the political subdivision and was
	237	+	5 hired by the unit's fire department due to the reorganization of
	238	+	6 emergency medical services within the department's jurisdiction;
	239	+	7 shall participate in the 1977 fund. A firefighter who participates in the
	240	+	8 1977 fund under this subsection is subject to sections 18 and 21 of this
	241	+	9 chapter.
	242	+	10 (h) A police officer or firefighter does not become a member of the
	243	+	11 1977 fund and is not covered by this chapter if the individual was
	244	+	12 appointed as:
	245	+	13 (1) a fire chief under a waiver under IC 36-8-4-6(c); or
	246	+	14 (2) a police chief under a waiver under IC 36-8-4-6.5(c);
	247	+	15 unless the executive of the unit requests that the 1977 fund accept the
	248	+	16 individual in the 1977 fund and the individual previously was a
	249	+	17 member of the 1977 fund.
	250	+	18 (i) A police matron hired or rehired after April 30, 1977, and before
	251	+	19 July 1, 1996, who is a member of a police department in a second or
	252	+	20 third class city on March 31, 1996, is a member of the 1977 fund.
	253	+	21 (j) A park ranger who:
	254	+	22 (1) completed at least the number of weeks of training at the
	255	+	23 Indiana law enforcement academy or a comparable law
	256	+	24 enforcement academy in another state that were required at the
	257	+	25 time the park ranger attended the Indiana law enforcement
	258	+	26 academy or the law enforcement academy in another state;
	259	+	27 (2) graduated from the Indiana law enforcement academy or a
	260	+	28 comparable law enforcement academy in another state; and
	261	+	29 (3) is employed by the parks department of a city having a
	262	+	30 population of more than one hundred ten thousand (110,000) but
	263	+	31 less than one hundred fifty thousand (150,000);
	264	+	32 is a member of the fund.
	265	+	33 (k) Notwithstanding any other provision of this chapter, a police
	266	+	34 officer or firefighter:
	267	+	35 (1) who is a member of the 1977 fund before a consolidation
	268	+	36 under IC 36-3-1-5.1 or IC 36-3-1-6.1;
	269	+	37 (2) whose employer is consolidated into the consolidated law
	270	+	38 enforcement department or the fire department of a consolidated
	271	+	39 city under IC 36-3-1-5.1 or IC 36-3-1-6.1; and
	272	+	40 (3) who, after the consolidation, becomes an employee of the
	273	+	41 consolidated law enforcement department or the consolidated fire
	274	+	42 department under IC 36-3-1-5.1 or IC 36-3-1-6.1;
	275	+	SB 78—LS 6075/DI 141 7
	276	+	1 is a member of the 1977 fund without meeting the requirements under
	277	+	2 sections 19 and 21 of this chapter.
	278	+	3 (l) Notwithstanding any other provision of this chapter, if:
	279	+	4 (1) before a consolidation under IC 8-22-3-11.6, a police officer
	280	+	5 or firefighter provides law enforcement services or fire protection
	281	+	6 services for an entity in a consolidated city;
	282	+	7 (2) the provision of those services is consolidated into the law
	283	+	8 enforcement department or fire department of a consolidated city;
	284	+	9 and
	285	+	10 (3) after the consolidation, the police officer or firefighter
	286	+	11 becomes an employee of the consolidated law enforcement
	287	+	12 department or the consolidated fire department under
	288	+	13 IC 8-22-3-11.6;
	289	+	14 the police officer or firefighter is a member of the 1977 fund without
	290	+	15 meeting the requirements under sections 19 and 21 of this chapter.
	291	+	16 (m) A police officer or firefighter who is a member of the 1977 fund
	292	+	17 under subsection (k) or (l) may not be:
	293	+	18 (1) retired for purposes of section 10 of this chapter; or
	294	+	19 (2) disabled for purposes of section 12 of this chapter;
	295	+	20 solely because of a change in employer under the consolidation.
	296	+	21 (n) Notwithstanding any other provision of this chapter and subject
	297	+	22 to subsection (o), a police officer or firefighter who:
	298	+	23 (1) is an active member of the 1977 fund with an employer that
	299	+	24 participates in the 1977 fund;
	300	+	25 (2) separates from that employer; and
	301	+	26 (3) not later than one hundred eighty (180) days after the date of
	302	+	27 the separation described in subdivision (2), becomes employed as
	303	+	28 a full-time police officer or firefighter with the same or a second
	304	+	29 employer that participates in the 1977 fund;
	305	+	30 is a member of the 1977 fund without meeting for a second time the
	306	+	31 age limitation under subsection (a) and the requirements under sections
	307	+	32 19 and 21 of this chapter. A police officer or firefighter to whom this
	308	+	33 subsection applies is entitled to receive credit for all years of 1977 fund
	309	+	34 covered service as a police officer or firefighter with all employers that
	310	+	35 participate in the 1977 fund.
	311	+	36 (o) The one hundred eighty (180) day limitation described in
	312	+	37 subsection (n)(3) does not apply to a member of the 1977 fund who is
	313	+	38 eligible for reinstatement under IC 36-8-4-11.
	314	+	39 (p) Notwithstanding any other provision of this chapter, a veteran
	315	+	40 who is:
	316	+	41 (1) described in IC 36-8-4.7; and
	317	+	42 (2) employed as a firefighter or police officer;
	318	+	SB 78—LS 6075/DI 141 8
	319	+	1 is a member of the 1977 fund.
	320	+	2 (q) Notwithstanding any other provision of this chapter and
	321	+	3 except as provided in subsection (o), a police officer or firefighter
	322	+	4 who:
	323	+	5 (1) is an active member of the 1977 fund with an employer
	324	+	6 that participates in the 1977 fund;
	325	+	7 (2) separates from that employer; and
	326	+	8 (3) more than one hundred eighty (180) days after the date of
	327	+	9 the separation described in subdivision (2), becomes employed
	328	+	10 as a full-time police officer or firefighter with the same or a
	329	+	11 second employer that participates in the 1977 fund;
	330	+	12 is a member of the 1977 fund without meeting the age limitation
	331	+	13 under subsection (a) provided the member can accrue twenty (20)
	332	+	14 years of service credit in the 1977 fund by the time the firefighter
	333	+	15 becomes sixty (60) years of age. A police officer or firefighter who
	334	+	16 participates in the 1977 fund under this subsection must pass the
	335	+	17 baseline statewide physical and mental examination under section
	336	+	18 19 of this chapter. A police officer or firefighter to whom this
	337	+	19 subsection applies is entitled to receive credit for all years of 1977
	338	+	20 fund covered service as a police officer or firefighter with all
	339	+	21 employers that participate in the 1977 fund.
	340	+	SB 78—LS 6075/DI 141 9
	341	+	COMMITTEE REPORT
	342	+	Madam President: The Senate Committee on Pensions and Labor,
	343	+	to which was referred Senate Bill No. 78, has had the same under
	344	+	consideration and begs leave to report the same back to the Senate with
	345	+	the recommendation that said bill DO PASS.
	346	+	(Reference is to SB 78 as introduced.)
	347	+
	348	+	BOOTS, Chairperson
	349	+	Committee Vote: Yeas 10, Nays 0
	350	+	SB 78—LS 6075/DI 141