Indiana 2024 Regular Session

Indiana Senate Bill SB0160 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 160
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 36-8.
7	7	Synopsis: Local government pensions. Increases the 1977 police
8	8	officers' and firefighters' pension and disability fund's maximum annual
9	9	cost of living adjustment from 3% to 5%. Increases the maximum
10	10	duration that members of certain funds can participate in the deferred
11	11	retirement option plan from 36 to 60 months.
12	12	Effective: July 1, 2024.
13	13	Pol Jr.
14	14	January 8, 2024, read first time and referred to Committee on Pensions and Labor.
15	15	2024 IN 160—LS 6626/DI 153 Introduced
16	16	Second Regular Session of the 123rd General Assembly (2024)
17	17	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
18	18	Constitution) is being amended, the text of the existing provision will appear in this style type,
19	19	additions will appear in this style type, and deletions will appear in this style type.
20	20	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
21	21	provision adopted), the text of the new provision will appear in this style type. Also, the
22	22	word NEW will appear in that style type in the introductory clause of each SECTION that adds
23	23	a new provision to the Indiana Code or the Indiana Constitution.
24	24	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
25	25	between statutes enacted by the 2023 Regular Session of the General Assembly.
26	26	SENATE BILL No. 160
27	27	A BILL FOR AN ACT to amend the Indiana Code concerning local
28	28	government.
29	29	Be it enacted by the General Assembly of the State of Indiana:
30	30	1 SECTION 1. IC 36-8-8-15, AS AMENDED BY P.L.35-2012,
31	31	2 SECTION 134, IS AMENDED TO READ AS FOLLOWS
32	32	3 [EFFECTIVE JULY 1, 2024]: Sec. 15. Each year the system board
33	33	4 shall determine if there has been an increase or decrease in the
34	34	5 consumer price index (United States city average) prepared by the
35	35	6 United States Department of Labor by comparing the arithmetic mean
36	36	7 of the consumer price index for January, February, and March of that
37	37	8 year with the arithmetic mean for the same three (3) months of the
38	38	9 preceding year. If there has been an increase, or a decrease, it shall be
39	39	10 stated as a percentage of the arithmetic mean for the preceding three
40	40	11 (3) month period. The percentage shall be rounded to the nearest
41	41	12 one-tenth of one percent (0.1%) and may not exceed three five percent
42	42	13 (3%). (5%). If there is a percentage increase of the arithmetic mean for
43	43	14 the preceding three (3) month period, a fund member's or survivor's
44	44	15 monthly benefit, beginning with the July payment, shall be increased
45	45	16 by an amount equal to the June payment times the percentage increase.
46	46	17 However, a fund member's or survivor's monthly benefit may not be
47	47	2024 IN 160—LS 6626/DI 153 2
48	48	1 increased under this section until July of the year following the year of
49	49	2 the first monthly benefit payment to the fund member or survivor. In
50	50	3 computing a fund member's benefit, the increase is based only on those
51	51	4 years for which the fund member was eligible for benefit payments
52	52	5 under this chapter. A monthly benefit may not be reduced if there is a
53	53	6 percentage decrease of the arithmetic mean for the preceding three (3)
54	54	7 month period.
55	55	8 SECTION 2. IC 36-8-8.5-10 IS AMENDED TO READ AS
56	56	9 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. A member who
57	57	10 elects to enter the DROP shall agree to the following:
58	58	11 (1) The member shall execute an irrevocable election to retire on
59	59	12 the DROP retirement date and shall remain in active service until
60	60	13 that date.
61	61	14 (2) While in the DROP, the member shall continue to make
62	62	15 contributions to the applicable fund under the provisions of that
63	63	16 fund.
64	64	17 (3) The member shall elect a DROP retirement date not less than
65	65	18 twelve (12) months and not more than:
66	66	19 (A) thirty-six (36) months after the member's DROP entry
67	67	20 date, for a member who executes an election described in
68	68	21 subdivision (1) before July 1, 2024; or
69	69	22 (B) sixty (60) months after the member's DROP entry date,
70	70	23 for a member who executes an election described in
71	71	24 subdivision (1) after June 30, 2024.
72	72	25 (4) The member may not remain in the DROP after the date the
73	73	26 member reaches any mandatory retirement age that may apply to
74	74	27 the member.
75	75	28 (5) The member may make an election to enter the DROP only
76	76	29 once in the member's lifetime.
77	77	30 SECTION 3. IC 36-8-8.5-10.7 IS ADDED TO THE INDIANA
78	78	31 CODE AS A NEW SECTION TO READ AS FOLLOWS
79	79	32 [EFFECTIVE JULY 1, 2024]: Sec. 10.7. Notwithstanding section 10
80	80	33 of this chapter, a member who entered the DROP before July 1,
81	81	34 2024, and who has not exited the DROP may elect to extend the
82	82	35 member's DROP retirement date up to sixty (60) months after the
83	83	36 member's DROP entry date.
84	84	37 SECTION 4. IC 36-8-8.5-14, AS AMENDED BY P.L.156-2020,
85	85	38 SECTION 147, IS AMENDED TO READ AS FOLLOWS
86	86	39 [EFFECTIVE JULY 1, 2024]: Sec. 14. (a) Subject to subsection (b), a
87	87	40 member who enters the DROP established by this chapter shall exit the
88	88	41 DROP at the earliest of:
89	89	42 (1) the member's DROP retirement date;
90	90	2024 IN 160—LS 6626/DI 153 3
91	91	1 (2) either:
92	92	2 (A) thirty-six (36) months after the member's DROP entry
93	93	3 date, if the member:
94	94	4 (i) executes an election described in section 10 of this
95	95	5 chapter before July 1, 2024; and
96	96	6 (ii) does not execute an extension described in section
97	97	7 10.7 of this chapter; or
98	98	8 (B) sixty (60) months after the member's DROP entry date,
99	99	9 if the member:
100	100	10 (i) executes an election described in section 10 of this
101	101	11 chapter after June 30, 2024; or
102	102	12 (ii) executes an extension described in section 10.7 of this
103	103	13 chapter;
104	104	14 (3) the mandatory retirement age applicable to the member, if
105	105	15 any; or
106	106	16 (4) the date the member retires because of a disability as provided
107	107	17 under section 16.5(d) of this chapter.
108	108	18 (b) A member of the 1925 fund, the 1937 fund, or the 1953 fund
109	109	19 who enters the DROP established by this chapter must exit the DROP
110	110	20 on the date the authority of the board of trustees of the Indiana public
111	111	21 retirement system to distribute from the pension relief fund established
112	112	22 under IC 5-10.3-11-1 to units of local government (described in
113	113	23 IC 5-10.3-11-3) amounts determined under IC 5-10.3-11-4.7 expires.
114	114	2024 IN 160—LS 6626/DI 153