Introduced Version
SENATE BILL No. 160
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-8.
Synopsis: Local government pensions. Increases the 1977 police
officers' and firefighters' pension and disability fund's maximum annual
cost of living adjustment from 3% to 5%. Increases the maximum
duration that members of certain funds can participate in the deferred
retirement option plan from 36 to 60 months.
Effective: July 1, 2024.
Pol Jr.
January 8, 2024, read first time and referred to Committee on Pensions and Labor.
2024 IN 160—LS 6626/DI 153 Introduced
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,
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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a new provision to the Indiana Code or the Indiana Constitution.
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between statutes enacted by the 2023 Regular Session of the General Assembly.
SENATE BILL No. 160
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 36-8-8-15, AS AMENDED BY P.L.35-2012,
2 SECTION 134, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2024]: Sec. 15. Each year the system board
4 shall determine if there has been an increase or decrease in the
5 consumer price index (United States city average) prepared by the
6 United States Department of Labor by comparing the arithmetic mean
7 of the consumer price index for January, February, and March of that
8 year with the arithmetic mean for the same three (3) months of the
9 preceding year. If there has been an increase, or a decrease, it shall be
10 stated as a percentage of the arithmetic mean for the preceding three
11 (3) month period. The percentage shall be rounded to the nearest
12 one-tenth of one percent (0.1%) and may not exceed three five percent
13 (3%). (5%). If there is a percentage increase of the arithmetic mean for
14 the preceding three (3) month period, a fund member's or survivor's
15 monthly benefit, beginning with the July payment, shall be increased
16 by an amount equal to the June payment times the percentage increase.
17 However, a fund member's or survivor's monthly benefit may not be
2024 IN 160—LS 6626/DI 153 2
1 increased under this section until July of the year following the year of
2 the first monthly benefit payment to the fund member or survivor. In
3 computing a fund member's benefit, the increase is based only on those
4 years for which the fund member was eligible for benefit payments
5 under this chapter. A monthly benefit may not be reduced if there is a
6 percentage decrease of the arithmetic mean for the preceding three (3)
7 month period.
8 SECTION 2. IC 36-8-8.5-10 IS AMENDED TO READ AS
9 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. A member who
10 elects to enter the DROP shall agree to the following:
11 (1) The member shall execute an irrevocable election to retire on
12 the DROP retirement date and shall remain in active service until
13 that date.
14 (2) While in the DROP, the member shall continue to make
15 contributions to the applicable fund under the provisions of that
16 fund.
17 (3) The member shall elect a DROP retirement date not less than
18 twelve (12) months and not more than:
19 (A) thirty-six (36) months after the member's DROP entry
20 date, for a member who executes an election described in
21 subdivision (1) before July 1, 2024; or
22 (B) sixty (60) months after the member's DROP entry date,
23 for a member who executes an election described in
24 subdivision (1) after June 30, 2024.
25 (4) The member may not remain in the DROP after the date the
26 member reaches any mandatory retirement age that may apply to
27 the member.
28 (5) The member may make an election to enter the DROP only
29 once in the member's lifetime.
30 SECTION 3. IC 36-8-8.5-10.7 IS ADDED TO THE INDIANA
31 CODE AS A NEW SECTION TO READ AS FOLLOWS
32 [EFFECTIVE JULY 1, 2024]: Sec. 10.7. Notwithstanding section 10
33 of this chapter, a member who entered the DROP before July 1,
34 2024, and who has not exited the DROP may elect to extend the
35 member's DROP retirement date up to sixty (60) months after the
36 member's DROP entry date.
37 SECTION 4. IC 36-8-8.5-14, AS AMENDED BY P.L.156-2020,
38 SECTION 147, IS AMENDED TO READ AS FOLLOWS
39 [EFFECTIVE JULY 1, 2024]: Sec. 14. (a) Subject to subsection (b), a
40 member who enters the DROP established by this chapter shall exit the
41 DROP at the earliest of:
42 (1) the member's DROP retirement date;
2024 IN 160—LS 6626/DI 153 3
1 (2) either:
2 (A) thirty-six (36) months after the member's DROP entry
3 date, if the member:
4 (i) executes an election described in section 10 of this
5 chapter before July 1, 2024; and
6 (ii) does not execute an extension described in section
7 10.7 of this chapter; or
8 (B) sixty (60) months after the member's DROP entry date,
9 if the member:
10 (i) executes an election described in section 10 of this
11 chapter after June 30, 2024; or
12 (ii) executes an extension described in section 10.7 of this
13 chapter;
14 (3) the mandatory retirement age applicable to the member, if
15 any; or
16 (4) the date the member retires because of a disability as provided
17 under section 16.5(d) of this chapter.
18 (b) A member of the 1925 fund, the 1937 fund, or the 1953 fund
19 who enters the DROP established by this chapter must exit the DROP
20 on the date the authority of the board of trustees of the Indiana public
21 retirement system to distribute from the pension relief fund established
22 under IC 5-10.3-11-1 to units of local government (described in
23 IC 5-10.3-11-3) amounts determined under IC 5-10.3-11-4.7 expires.
2024 IN 160—LS 6626/DI 153