Indiana 2024 Regular Session

Indiana House Bill HB1261 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1261
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 36-8-8.5.
7	7	Synopsis: Deferred retirement option plan. Allows a member of the
8	8	1925 police pension fund, 1937 firefighters' pension fund, 1953 police
9	9	pension fund (Indianapolis), or 1977 police officers' and firefighters'
10	10	pension and disability fund to withdraw from the deferred retirement
11	11	option plan (DROP) and make an election to enter the DROP for a
12	12	second time not earlier than three years after the date the member
13	13	withdrew from the DROP. Provides that a member may make an
14	14	election to enter the DROP only twice in the member's lifetime.
15	15	Effective: July 1, 2024.
16	16	Smith V
17	17	January 9, 2024, read first time and referred to Committee on Employment, Labor and
18	18	Pensions.
19	19	2024 IN 1261—LS 6103/DI 141 Introduced
20	20	Second Regular Session of the 123rd General Assembly (2024)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2023 Regular Session of the General Assembly.
30	30	HOUSE BILL No. 1261
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning
32	32	pensions.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 36-8-8.5-10 IS AMENDED TO READ AS
35	35	2 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. A member who
36	36	3 elects to enter the DROP shall agree to the following:
37	37	4 (1) Except as provided in subdivision (5), the member shall
38	38	5 execute an irrevocable election to retire on the DROP retirement
39	39	6 date and shall remain in active service until that date.
40	40	7 (2) While in the DROP, the member shall continue to make
41	41	8 contributions to the applicable fund under the provisions of that
42	42	9 fund.
43	43	10 (3) The member shall elect a DROP retirement date not less than
44	44	11 twelve (12) months and not more than thirty-six (36) months after
45	45	12 the member's DROP entry date.
46	46	13 (4) The member may not remain in the DROP after the date the
47	47	14 member reaches any mandatory retirement age that may apply to
48	48	15 the member.
49	49	16 (5) The member may:
50	50	17 (A) withdraw from the DROP before the DROP retirement
51	51	2024 IN 1261—LS 6103/DI 141 2
52	52	1 date; and
53	53	2 (B) make an election to enter the DROP for a second time
54	54	3 not earlier than three (3) years after the date the member
55	55	4 withdrew from the DROP.
56	56	5 (5) (6) The member may make an election to enter the DROP only
57	57	6 once twice in the member's lifetime.
58	58	7 SECTION 2. IC 36-8-8.5-10.5 IS ADDED TO THE INDIANA
59	59	8 CODE AS A NEW SECTION TO READ AS FOLLOWS
60	60	9 [EFFECTIVE JULY 1, 2024]: Sec. 10.5. If a member makes an
61	61	10 election to enter the DROP for a second time as set forth in section
62	62	11 10(5) of this chapter, the:
63	63	12 (1) DROP entry date; and
64	64	13 (2) DROP retirement date;
65	65	14 are based on the member's most recent DROP election.
66	66	15 SECTION 3. IC 36-8-8.5-14, AS AMENDED BY P.L.156-2020,
67	67	16 SECTION 147, IS AMENDED TO READ AS FOLLOWS
68	68	17 [EFFECTIVE JULY 1, 2024]: Sec. 14. (a) Subject to subsection (b), a
69	69	18 member who enters the DROP established by this chapter shall exit the
70	70	19 DROP at the earliest of:
71	71	20 (1) the member's DROP retirement date;
72	72	21 (2) thirty-six (36) months after the member's DROP entry date;
73	73	22 (3) the mandatory retirement age applicable to the member, if
74	74	23 any; or
75	75	24 (4) the date the member retires because of a disability as provided
76	76	25 under section 16.5(d) of this chapter; or
77	77	26 (5) the date the member withdraws from the DROP under
78	78	27 section 10(5) of this chapter.
79	79	28 (b) A member of the 1925 fund, the 1937 fund, or the 1953 fund
80	80	29 who enters the DROP established by this chapter must exit the DROP
81	81	30 on the date the authority of the board of trustees of the Indiana public
82	82	31 retirement system to distribute from the pension relief fund established
83	83	32 under IC 5-10.3-11-1 to units of local government (described in
84	84	33 IC 5-10.3-11-3) amounts determined under IC 5-10.3-11-4.7 expires.
85	85	2024 IN 1261—LS 6103/DI 141