Introduced Version
HOUSE BILL No. 1020
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-8-8.
Synopsis: 1977 pension and disability fund. Increases the following
in regard to the 1977 police officers' and firefighters' pension and
disability fund: (1) the maximum annual cost of living adjustment from
3% to 5%; and (2) the death benefit payable to the heirs or estate of a
fund member from $12,000 to $15,000.
Effective: Upon passage; July 1, 2025.
Haggard
January 8, 2025, read first time and referred to Committee on Employment, Labor and
Pensions.
2025 IN 1020—LS 6322/DI 153 Introduced
First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1020
A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
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 UPON PASSAGE]: 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 percent
13 (3%). five percent (5%). If there is a percentage increase of the
14 arithmetic mean for the preceding three (3) month period, a fund
15 member's or survivor's monthly benefit, beginning with the July
16 payment, shall be increased by an amount equal to the June payment
17 times the percentage increase. However, a fund member's or survivor's
2025 IN 1020—LS 6322/DI 153 2
1 monthly benefit may not be increased under this section until July of
2 the year following the year of the first monthly benefit payment to the
3 fund member or survivor. In computing a fund member's benefit, the
4 increase is based only on those years for which the fund member was
5 eligible for benefit payments under this chapter. A monthly benefit may
6 not be reduced if there is a percentage decrease of the arithmetic mean
7 for the preceding three (3) month period.
8 SECTION 2. IC 36-8-8-16, AS AMENDED BY P.L.28-2008,
9 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2025]: Sec. 16. (a) Benefits paid under this section are subject
11 to section 2.5 of this chapter.
12 (b) The heirs or estate of a fund member is entitled to receive at
13 least twelve thousand dollars ($12,000) fifteen thousand dollars
14 ($15,000) upon the fund member's death.
15 SECTION 3. [EFFECTIVE JULY 1, 2025] (a) IC 36-8-8-16, as
16 amended by this act, applies only to benefits payable with respect
17 to a member of the 1977 police officers' and firefighters' pension
18 and disability fund who dies after June 30, 2025.
19 (b) This SECTION expires July 1, 2026.
20 SECTION 4. [EFFECTIVE UPON PASSAGE] (a) As used in this
21 SECTION, "system board" refers to the board of trustees of the
22 Indiana public retirement system established by IC 5-10.5-3-1.
23 (b) The system board shall use IC 36-8-8-15, as amended by this
24 act, for the purpose of calculating the cost of living increase for the
25 1977 police officers' and firefighters' pension and disability fund
26 that will begin with the July 2025 payment.
27 (c) This SECTION expires July 1, 2026.
28 SECTION 5. An emergency is declared for this act.
2025 IN 1020—LS 6322/DI 153