Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1004
AN ACT to amend the Indiana Code concerning pensions.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 5-10-1.1-3.5, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2024 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3.5. (a) This section applies to an individual
who becomes an employee of the state after June 30, 2007.
(b) Unless an employee notifies the state that the employee does not
want to enroll in the deferred compensation plan or makes an
affirmative election under subsection (h), on day thirty-one (31) of
the employee's employment:
(1) the employee is automatically enrolled in the deferred
compensation plan; and
(2) the state is authorized to begin deductions as otherwise
allowed under this chapter.
(c) The auditor of state comptroller shall provide notice to an
employee of the provisions of this chapter. The notice provided under
this subsection must:
(1) contain a statement concerning:
(A) the purposes of;
(B) procedures for notifying the state that the employee does
not want to enroll in;
(C) the tax consequences of; and
(D) the details of the state match for employee contribution to;
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the deferred compensation plan; and
(2) list the telephone number, electronic mail address, and other
contact information for the plan administrator.
(d) This subsection applies to contributions made before July 1,
2011. Notwithstanding IC 22-2-6, except as provided by subsection (h),
the state shall deduct from an employee's compensation as a
contribution to the deferred compensation plan established by the state
under this chapter an amount equal to the maximum amount of any
match provided by the state on behalf of the employee to a defined
contribution plan established under section 1.5(a) of this chapter.
(e) This subsection applies to contributions made after June 30,
2011, and before July 1, 2013. Notwithstanding IC 22-2-6 and except
as provided by subsection (h), during the first year an employee is
enrolled under subsection (b) in the deferred compensation plan, the
state shall deduct each pay period from the employee's compensation
as a contribution to the deferred compensation plan an amount equal
to the greater of the following:
(1) The maximum amount of any match provided by the state on
behalf of the employee to a defined contribution plan established
under section 1.5(a) of this chapter.
(2) One-half percent (0.5%) of the employee's base salary.
(f) This subsection applies to contributions made after June 30,
2013. Notwithstanding IC 22-2-6 and except as provided by subsection
(h), during the first year an employee is enrolled under subsection (b)
in the deferred compensation plan, the state shall deduct each pay
period from the employee's compensation as a contribution to the
deferred compensation plan an amount equal to the greater of the
following:
(1) The maximum amount of any match provided by the state on
behalf of the employee to a defined contribution plan established
under section 1.5(a) of this chapter.
(2) Two percent (2%) of the employee's base salary.
(g) This subsection applies to a year:
(1) after the first year in which an employee is enrolled in the
deferred compensation plan; and
(2) in which the employee does not affirmatively choose a
contribution amount under subsection (h).
The percentage of the employee's base salary used for the year in
subsection (e)(2) or (f)(2) to determine the employee's contribution
increases by one-half percent (0.5%) from the percentage determined
in the immediately preceding year. The maximum percentage of an
employee's base salary that may be deducted under this subsection is
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five percent (5%). The contribution increase occurs on the anniversary
date of the employee's enrollment in the deferred compensation plan.
(h) An employee may affirmatively elect to enroll in the deferred
compensation plan in the amount described in subsections (d)
through (g). An employee may contribute to the deferred
compensation plan established by the state under this chapter an
amount other than the amount described in subsections (d) through (g)
by affirmatively choosing to contribute:
(1) a higher amount;
(2) a lower amount; or
(3) zero (0).
SECTION 2. IC 5-10-5.5-22, AS AMENDED BY P.L.145-2020,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 22. (a) As used in this section, "DROP" refers to
a deferred retirement option plan established under this section.
(b) As used in this section, "DROP entry date" means the date that
a participant's election to enter a DROP becomes effective.
(c) As used in this section, "DROP frozen benefit" refers to an
annual retirement allowance computed under section 10 of this chapter
based on a participant's:
(1) average annual salary; and
(2) years of creditable service;
on the date the participant enters the DROP.
(d) As used in this section, "DROP retirement date" means the
future retirement date selected by a participant at the time the
participant elects to enter the DROP.
(e) Only a participant who is eligible to receive an unreduced annual
retirement allowance immediately upon termination of employment
may elect to enter a DROP. A participant who elects to enter the DROP
must shall do the following:
(1) Agree to the following:
(1) (A) The participant shall execute an irrevocable election to
retire on the DROP retirement date and must remain in active
service until that date.
(2) (B) While in the DROP, the participant shall continue to
make contributions under section 8 of this chapter.
(3) (C) The participant shall select a DROP retirement date not
less than twelve (12) months and not more than:
(i) thirty-six (36) months after the participant's DROP entry
date, for a participant who executes an election described
in clause (A) before July 1, 2024; or
(ii) sixty (60) months after the participant's DROP entry
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date, for a participant who executes an election
described in clause (A) after June 30, 2024.
(4) (D) The participant may not remain in the DROP after the
date the participant reaches the mandatory retirement age
under section 9 of this chapter.
(5) (E) The participant may make an election to enter the
DROP only once in the participant's lifetime.
(2) Notify the participant's employer of the DROP election
within thirty (30) days of the election.
(f) Notwithstanding subsection (e), a participant that entered the
DROP before July 1, 2024, and that has not exited the DROP may
elect to extend the participant's DROP retirement date up to sixty
(60) months after the participant's DROP entry date.
(g) A participant that makes the election described in subsection
(f) shall notify the participant's employer within thirty (30) days of
the election.
(f) (h) Contributions or payments provided by the general assembly
under section 4(b)(4) of this chapter continue for a participant while
the participant is in the DROP.
(g) (i) A participant shall exit the DROP on the earliest of the
following:
(1) The participant's DROP retirement date.
(2) Either:
(A) thirty-six (36) months after the participant's DROP entry
date, if the participant:
(i) executes an election described in subsection (e) before
July 1, 2024; and
(ii) does not execute an extension described in subsection
(f); or
(B) sixty (60) months after the participant's DROP entry
date, if the participant:
(i) executes an election described in subsection (e) after
June 30, 2024; or
(ii) executes an extension described in subsection (f).
(3) The participant's mandatory retirement age.
(4) The date the participant retires because of a disability as
provided by subsection (k). (m).
(h) (j) A participant who retires on the participant's DROP
retirement date or on the date the participant retires because of a
disability as provided by subsection (k) (m) may elect to receive an
annual retirement allowance:
(1) computed under section 10 of this chapter as if the participant
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had never entered the DROP; or
(2) consisting of:
(A) the DROP frozen benefit; plus
(B) an additional amount, paid as the participant elects under
subsection (i), (k), determined by multiplying:
(i) the DROP frozen benefit; by
(ii) the number of months the participant was in the DROP.
(i) (k) The participant shall elect, at the participant's retirement, to
receive the additional amount calculated under subsection (h)(2)(B)
(j)(2)(B) in one (1) of the following ways:
(1) A lump sum paid on:
(A) the participant's DROP retirement date; or
(B) the date the participant retires because of a disability as
provided by subsection (k). (m).
(2) Three (3) equal annual payments:
(A) commencing on:
(i) the participant's DROP retirement date; or
(ii) the date the participant retires because of a disability as
provided by subsection (k); (m); and
(B) thereafter paid on:
(i) the anniversary of the participant's DROP retirement
date; or
(ii) the date the participant retires because of a disability as
provided by subsection (k). (m).
(j) (l) A cost of living increase determined under section 21(c) of
this chapter does not apply to the additional amount calculated under
subsection (h)(2)(B) (j)(2)(B) at the participant's DROP retirement date
or the date the participant retires because of a disability as provided by
subsection (k). (m). No cost of living increase is applied to a DROP
frozen benefit while the participant is in the DROP. After the
participant's DROP retirement date or the date the participant retires
because of a disability as provided by subsection (k), (m), cost of living
increases determined under section 21(c) of this chapter apply to the
participant's annual retirement allowance computed under this section.
(k) (m) If a participant becomes disabled, in the line of duty or other
than in the line of duty while in the DROP, the participant's annual
retirement allowance is computed as follows:
(1) If the participant retires because of a disability less than
twelve (12) months after the date the participant enters the DROP,
the participant's annual retirement allowance is calculated as if
the participant had never entered the DROP.
(2) If the participant retires because of a disability at least twelve
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(12) months after the date the participant enters the DROP, the
participant's annual retirement allowance is calculated under this
section, and the participant's retirement date is the date the
member retires because of a disability rather than the participant's
DROP retirement date.
(l) (n) If, before payment of the participant's annual retirement
allowance begins, the participant dies in the line of duty or other than
in the line of duty, death benefits are payable to the participant's
surviving spouse. If there is no surviving spouse, the death benefits
must be divided equally among the participant's surviving children. If
there are no surviving children, the death benefits are paid to the
participant's parents. If there are no surviving parents, the death
benefits are paid to the participant's estate. The death benefits are
determined as follows:
(1) If the participant dies less than twelve (12) months after the
date the participant enters the DROP, the death benefits are
calculated as if the participant had never entered the DROP.
(2) If the participant dies at least twelve (12) months after the date
the participant enters the DROP, the death benefits consist of both
of the following:
(A) At the election of the survivor or survivors to whom the
benefit is payable, the benefit calculated under subsection
(h)(2)(B) (j)(2)(B) is paid in either:
(i) a lump sum; or
(ii) three (3) equal annual payments, the first as soon as
practicable after the date of the participant's death, the
second on the first anniversary of the participant's death, and
the third on the second anniversary of the participant's death.
(B) A benefit is paid on the DROP frozen benefit under the
terms of the retirement plan created by this chapter.
(m) (o) Except as provided under subsections (k) (m) and (l), (n),
the annual retirement allowance for a participant who exits the DROP
for any reason other than retirement on the participant's DROP
retirement date is calculated as if the participant had never entered the
DROP.
SECTION 3. IC 5-10.2-12-3, AS ADDED BY P.L.127-2018,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. (a) For 2019 and each year thereafter, the
contribution rate established by the board for each employer shall
include a surcharge determined by the board
(1) that is paid to the supplemental allowance reserve account of
the applicable fund or plan. and
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(2) that does not exceed one percent (1%) of the employer's
payroll that is attributable to employees who are:
(A) members of the public employees' retirement fund;
(B) members of the 1996 account of the Indiana state teachers'
retirement fund; and
(C) participants in the state excise police, gaming agent,
gaming control officer, and conservation enforcement officers'
retirement plan.
The board shall determine an equivalent amount to be included in the
general fund appropriations for the supplemental allowance reserve
accounts of the legislators' defined benefit plan and, subject to
IC 5-10.4-2-5, the pre-1996 account of the Indiana state teachers'
retirement fund.
(b) The surcharge described in subsection (a) shall be paid in the
same manner as other employer contributions required under
IC 5-10-5.5-4, IC 5-10.2-2-12.5, IC 5-10.3-7-12.5, and IC 5-10.4-7-6.
SECTION 4. IC 5-10.5-4-7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7. (a) For purposes of this section, "fund"
means the Indiana public employees' retirement fund, Indiana
state teachers' retirement fund, legislators' defined benefit plan,
and state excise police, gaming agent, gaming control officer, and
conservation enforcement officers' retirement plan.
(b) The board shall develop the technological and administrative
capabilities sufficient to categorize fund members into separate
groups in which:
(1) certain members receive a service based thirteenth check;
and
(2) certain members receive a cost of living adjustment.
SECTION 5. IC 5-10.5-4-8 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 8. (a) The board shall set the surcharge rates under
IC 5-10.2-12-3 at a level to actuarially prefund:
(1) annual indexed thirteenth checks for all current retired
members and beneficiaries retired before July 1, 2025; and
(2) one percent (1%) annual cost of living adjustments to
future in-payment members and beneficiaries retired on or
after July 1, 2025.
(b) The board shall not reduce the surcharge rates under
IC 5-10.2-12-3 from the prior year.
(c) The board may increase the surcharge rates under
IC 5-10.2-12-3 by not more than one-tenth percent (0.1%) of
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payroll from the prior year.
(d) This section expires December 31, 2029.
SECTION 6. IC 5-11-20-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1.5. (a) As used in this chapter, "delinquent
political subdivision" means a political subdivision offering an
employee retirement plan described in section 3(b) of this chapter
that:
(1) received less than the actuarially determined contribution
for at least three (3) out of the last five (5) immediately
preceding fiscal years, as determined by the system or its
agent; or
(2) was less than fifty percent (50%) funded at any time
during the immediately preceding fiscal year, as determined
by the system or its agent.
(b) As used in this chapter, "delinquent political subdivision"
does not include a political subdivision offering an employee
retirement plan described in section 3(b) of this chapter that:
(1) satisfies subsection (a)(1) or (a)(2) but is subject to an
existing court order requiring the political subdivision to fund
the plan benefits; or
(2) satisfies subsection (a)(1) or (a)(2) but was established
some time during the last five (5) immediately preceding fiscal
years.
(c) A police benefit fund qualifies as a delinquent political
subdivision if it satisfies subsection (a)(1). A police benefit fund
does not qualify as a delinquent political subdivision if it satisfies
subsection (a)(2) but does not satisfy subsection (a)(1).
SECTION 7. IC 5-11-20-2.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2.5. As used in this chapter, "system"
refers to the Indiana public retirement system established by
IC 5-10.5-2-1.
SECTION 8. IC 5-11-20-6 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6. (a) On or before June 15 of each year,
the system shall send a delinquency notice to a delinquent political
subdivision. The delinquency notice must inform the delinquent
political subdivision that:
(1) an employee retirement plan offered by the delinquent
political subdivision:
(A) received less than ninety-five percent (95%) of the
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actuarially determined contribution for the immediately
preceding fiscal year, as determined by the system or its
agent; or
(B) was less than fifty percent (50%) funded at any time
during the immediately preceding fiscal year, as
determined by the system or its agent; and
(2) the delinquent political subdivision must take the steps
described in subsection (b).
(b) After receiving the notice described in subsection (a), a
political subdivision shall make a presentation that includes a
remediation plan to the interim study committee on pension
management oversight (established by IC 2-5-1.3-4) regarding the
delinquent employee retirement plan described in subsection (a).
SECTION 9. IC 10-12-7 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]:
Chapter 7. Supplemental Allowance Reserve Account
Sec. 0.5. This chapter applies to the state police pre-1987 benefit
system covered by IC 10-12-3 and the state police 1987 benefit
system covered by IC 10-12-4.
Sec. 1. For purposes of this chapter, "account" means the
supplemental allowance reserve account described in section 2 of
this chapter.
Sec. 2. (a) The trustee shall maintain a separate supplemental
allowance reserve account for both the state police pre-1987 benefit
system under IC 10-12-3 and the state police 1987 benefit system
under IC 10-12-4 for the purpose of paying postretirement benefit
adjustments, including:
(1) postretirement benefit increases; and
(2) thirteenth checks;
granted by the general assembly to employee beneficiaries after
June 30, 2025.
(b) For purposes of subsection (a), "postretirement benefit
adjustments" does not include a supplemental pension benefit
under IC 10-12-5.
Sec. 3. The account consists of amounts appropriated or
transferred to the account by the general assembly.
Sec. 4. The trustee may not:
(1) deposit money in the account; or
(2) transfer money to the account.
SECTION 10. IC 36-8-8.5-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. A member who
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elects to enter the DROP shall do the following:
(1) Agree to the following:
(1) (A) The member shall execute an irrevocable election to
retire on the DROP retirement date and shall remain in active
service until that date.
(2) (B) While in the DROP, the member shall continue to
make contributions to the applicable fund under the provisions
of that fund.
(3) (C) The member shall elect a DROP retirement date not
less than twelve (12) months and not more than:
(i) thirty-six (36) months after the member's DROP entry
date, for a member who executes an election described in
clause (A) before July 1, 2024; or
(ii) sixty (60) months after the member's DROP entry
date, for a member who executes an election described in
clause (A) after June 30, 2024.
(4) (D) The member may not remain in the DROP after the
date the member reaches any mandatory retirement age that
may apply to the member.
(5) (E) The member may make an election to enter the DROP
only once in the member's lifetime.
(2) Notify the member's employer of the DROP election
within thirty (30) days of the election.
SECTION 11. IC 36-8-8.5-10.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 10.5. (a) Notwithstanding section
10 of this chapter, a member that entered the DROP before July 1,
2024, and that has not exited the DROP may elect to extend the
member's DROP retirement date up to sixty (60) months after the
member's DROP entry date.
(b) A member that makes the election described in subsection
(a) shall notify the member's employer within thirty (30) days of
the election.
SECTION 12. IC 36-8-8.5-14, AS AMENDED BY P.L.156-2020,
SECTION 147, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 14. (a) Subject to subsection (b), a
member who enters the DROP established by this chapter shall exit the
DROP at the earliest of:
(1) the member's DROP retirement date;
(2) either:
(A) thirty-six (36) months after the member's DROP entry
date, if the member:
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(i) executes an election described in section 10 of this
chapter before July 1, 2024; and
(ii) does not execute an extension described in section
10.5 of this chapter; or
(B) sixty (60) months after the member's DROP entry date,
if the member:
(i) executes an election described in section 10 of this
chapter after June 30, 2024; or
(ii) executes an extension described in section 10.5 of this
chapter;
(3) the mandatory retirement age applicable to the member, if
any; or
(4) the date the member retires because of a disability as provided
under section 16.5(d) of this chapter.
(b) A member of the 1925 fund, the 1937 fund, or the 1953 fund
who enters the DROP established by this chapter must exit the DROP
on the date the authority of the board of trustees of the Indiana public
retirement system to distribute from the pension relief fund established
under IC 5-10.3-11-1 to units of local government (described in
IC 5-10.3-11-3) amounts determined under IC 5-10.3-11-4.7 expires.
SECTION 13. [EFFECTIVE JULY 1, 2024] (a) As used in this
SECTION, "fund" refers to the Indiana state teachers' retirement
fund established by IC 5-10.4-2-1.
(b) As used in this SECTION, "supplemental allowance reserve
account" refers to the applicable supplemental allowance reserve
account established by IC 5-10.2-2-2(c)(3).
(c) Not later than October 1, 2024, the supplemental allowance
reserve account shall pay the amount determined under subsection
(d) to a member of the fund (or to a survivor or beneficiary of a
member) who retired or was disabled on or before December 1,
2023, and who is entitled to receive a monthly benefit on July 1,
2024. The amount is not an increase in the pension portion of the
monthly benefit.
(d) The amount paid under subsection (c) to a member of the
fund (or to a survivor or beneficiary of a member) who meets the
requirements of subsection (c) is determined as follows:
If a Member's Creditable The Amount Is:
Service Is:
At least 5 years, but less than 10 years $150
At least 10 years, but less than 20 years $275
At least 20 years, but less than 30 years $375
At least 30 years $450
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(e) The creditable service used to determine the amount paid to
a member (or to a survivor or beneficiary of a member) under
subsection (c) is the creditable service that was used to compute the
member's retirement benefit under IC 5-10.2-4-4, except that
partial years of creditable service may not be used to determine the
amount paid under subsection (c).
(f) If two (2) or more survivors or beneficiaries of a member are
entitled to an amount paid under subsection (c), the amount shall
be allocated to the survivors or beneficiaries in shares using the
same percentages as the percentages determined under
IC 5-10.2-3-7.5 or IC 5-10.4-4-10 to pay the monthly benefit to the
survivors or beneficiaries.
(g) This SECTION applies notwithstanding IC 5-10.2-12-4(b).
(h) This SECTION expires July 1, 2025.
SECTION 14. [EFFECTIVE JULY 1, 2024] (a) As used in this
SECTION, "fund" refers to the Indiana public employees'
retirement fund established by IC 5-10.3-2-1.
(b) As used in this SECTION, "supplemental allowance reserve
account" refers to the supplemental allowance reserve account
established by IC 5-10.2-2-2(a)(3).
(c) Not later than October 1, 2024, the supplemental allowance
reserve account shall pay the amount determined under subsection
(d) to a member of the fund (or to a survivor or beneficiary of a
member) who retired or was disabled on or before December 1,
2023, and who is entitled to receive a monthly benefit on July 1,
2024. The amount is not an increase in the pension portion of the
monthly benefit.
(d) The amount paid under subsection (c) to a member of the
fund (or to a survivor or beneficiary of a member) who meets the
requirements of subsection (c) is determined as follows:
If a Member's Creditable The Amount Is:
Service Is:
At least 5 years, but less than 10 years $150
At least 10 years, but less than 20 years $275
At least 20 years, but less than 30 years $375
At least 30 years $450
(e) The creditable service used to determine the amount paid to
a member (or to a survivor or beneficiary of a member) under
subsection (c) is the creditable service that was used to compute the
member's retirement benefit under IC 5-10.2-4-4, except that
partial years of creditable service may not be used to determine the
amount paid under subsection (c).
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(f) If two (2) or more survivors or beneficiaries of a member are
entitled to an amount paid under subsection (c), the amount shall
be allocated to the survivors or beneficiaries in shares using the
same percentages as the percentages determined under
IC 5-10.2-3-7.5 or IC 5-10.3-8-15 to pay the monthly benefit to the
survivors or beneficiaries.
(g) This SECTION applies notwithstanding IC 5-10.2-12-4(b).
(h) This SECTION expires July 1, 2025.
SECTION 15. [EFFECTIVE JULY 1, 2024] (a) As used in this
SECTION, "participant" has the meaning set forth in
IC 5-10-5.5-1.
(b) As used in this SECTION, "plan" refers to the state excise
police, gaming agent, gaming control officer, and conservation
enforcement officers' retirement plan created by IC 5-10-5.5-2.
(c) As used in this SECTION, "supplemental allowance reserve
account" refers to the supplemental allowance reserve account
established by IC 5-10-5.5-4(c).
(d) Not later than October 1, 2024, the supplemental allowance
reserve account shall pay the amount determined under subsection
(e) to a plan participant (or to a survivor or beneficiary of a plan
participant) who retired or was disabled on or before December 1,
2023, and who is entitled to receive a monthly benefit on July 1,
2024. The amount is not an increase in the annual retirement
allowance.
(e) The amount paid under subsection (d) to a plan participant
(or to a survivor or beneficiary of a plan participant) who meets
the requirements of subsection (d) is determined as follows:
If a Plan Participant's Creditable The Amount Is:
Service Is:
At least 5 years, but less than 10 years $150
At least 10 years, but less than 20 years $275
At least 20 years, but less than 30 years $375
At least 30 years $450
(f) The creditable service used to determine the amount paid to
a plan participant (or to a survivor or beneficiary of a plan
participant) under subsection (d) is the creditable service that was
used to compute the plan participant's retirement allowance under
IC 5-10-5.5-10 and IC 5-10-5.5-12, except that partial years of
creditable service may not be used to determine the amount paid
under subsection (d).
(g) If two (2) or more survivors or beneficiaries of a plan
participant are entitled to an amount paid under subsection (d), the
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amount shall be allocated to the survivors or beneficiaries in shares
using the same percentages as the percentages determined under
IC 5-10-5.5-16 to pay the monthly benefit to the survivors or
beneficiaries.
(h) This SECTION applies notwithstanding IC 5-10.2-12-4(b).
(i) This SECTION expires July 1, 2025.
SECTION 16. [EFFECTIVE JULY 1, 2024] (a) As used in this
SECTION, "trustee" has the meaning set forth in IC 10-12-1-10.
(b) As used in this SECTION, "trust fund" has the meaning set
forth in IC 10-12-1-11.
(c) Not later than October 1, 2024, the trustee shall pay from the
trust fund to each employee beneficiary of the state police pre-1987
benefit system covered by IC 10-12-3 who:
(1) retired or was disabled before July 2, 2023; and
(2) is entitled to receive a monthly benefit as of September 1,
2024;
an amount equal to one percent (1%) of the maximum basic annual
pension amount payable to a retired state police employee in the
grade of trooper who has completed twenty (20) years of service as
of July 1, 2024, as calculated under IC 10-12-3-7.
(d) The amount paid under this SECTION is not an increase in
the monthly pension amount of an employee beneficiary.
(e) This SECTION applies notwithstanding IC 5-10.2-12-4(b).
(f) This SECTION expires July 1, 2025.
SECTION 17. [EFFECTIVE JULY 1, 2024] (a) As used in this
SECTION, "trustee" has the meaning set forth in IC 10-12-1-10.
(b) As used in this SECTION, "trust fund" has the meaning set
forth in IC 10-12-1-11.
(c) Not later than October 1, 2024, the trustee shall pay from the
trust fund to each employee beneficiary of the state police 1987
benefit system covered by IC 10-12-4 who:
(1) retired or was disabled after June 30, 1987, and before
July 2, 2023; and
(2) is entitled to receive a monthly benefit as of September 1,
2024;
an amount equal to one percent (1%) of the maximum basic annual
pension amount payable to a retired state police employee in the
grade of trooper who has completed twenty-five (25) years of
service as of July 1, 2024, as calculated under IC 10-12-4-7.
(d) The amount paid under this SECTION is not an increase in
the monthly pension amount of an employee beneficiary.
(e) This SECTION applies notwithstanding IC 5-10.2-12-4(b).
HEA 1004 — CC 1 15
(f) This SECTION expires July 1, 2025.
SECTION 18. An emergency is declared for this act.
HEA 1004 — CC 1 Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1004 — CC 1