IN
Indiana House Bill HB1221

Indiana 2025 Regular Session

Indiana House Bill HB1221 Compare Versions

OldNewDifferences
1-*EH1221.2*
2-April 11, 2025
1+*EH1221.1*
2+March 28, 2025
33 ENGROSSED
44 HOUSE BILL No. 1221
55 _____
6-DIGEST OF HB 1221 (Updated April 10, 2025 11:31 am - DI 120)
7-Citations Affected: IC 5-10.5; IC 10-12.
8-Synopsis: Pension matters. Amends provisions regarding the
9-surcharge rates established by the board of trustees of the Indiana
10-public retirement system to actuarially prefund certain postretirement
11-benefits. Adds provisions to require the treasurer of state to determine
12-a surcharge amount that is to be paid into the supplemental reserve
13-account for the state police pre-1987 and 1987 benefit systems.
14-Effective: July 1, 2025.
6+DIGEST OF HB 1221 (Updated March 26, 2025 10:37 am - DI 153)
7+Citations Affected: IC 5-10.2; IC 5-10.5; IC 10-12; noncode.
8+Synopsis: Pension matters. Provides for a thirteenth check in certain
9+years for certain members, participants, or beneficiaries of the: (1)
10+Indiana state teachers' retirement fund; (2) Indiana public employees'
11+retirement fund; (3) state excise police, gaming agent, gaming control
12+officer, and conservation enforcement officers' retirement plan; (4)
13+state police pre-1987 benefit system; and (5) state police 1987 benefit
14+system. Makes conforming changes.
15+Effective: July 1, 2025; January 1, 2027.
1516 Karickhoff, Smaltz, VanNatter,
1617 Porter
1718 (SENATE SPONSORS — BUCHANAN, ROGERS, HUNLEY, POL JR.,
18-DONATO, NIEZGODSKI, YODER, MAXWELL, RANDOLPH LONNIE M)
19+DONATO, NIEZGODSKI)
1920 January 9, 2025, read first time and referred to Committee on Employment, Labor and
2021 Pensions
2122 January 13, 2025, reassigned to Committee on Ways and Means.
2223 January 30, 2025, amended, reported — Do Pass.
2324 February 3, 2025, read second time, ordered engrossed.
2425 February 4, 2025, engrossed. Read third time, passed. Yeas 89, nays 0.
2526 SENATE ACTION
2627 February 18, 2025, read first time and referred to Committee on Pensions and Labor.
2728 March 27, 2025, amended, reported favorably — Do Pass; reassigned to Committee on
2829 Appropriations.
29-April 10, 2025, amended, reported favorably — Do Pass.
30-EH 1221—LS 6891/DI 153 April 11, 2025
30+EH 1221—LS 6891/DI 153 March 28, 2025
3131 First Regular Session of the 124th General Assembly (2025)
3232 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
3333 Constitution) is being amended, the text of the existing provision will appear in this style type,
3434 additions will appear in this style type, and deletions will appear in this style type.
3535 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
3636 provision adopted), the text of the new provision will appear in this style type. Also, the
3737 word NEW will appear in that style type in the introductory clause of each SECTION that adds
3838 a new provision to the Indiana Code or the Indiana Constitution.
3939 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
4040 between statutes enacted by the 2024 Regular Session of the General Assembly.
4141 ENGROSSED
4242 HOUSE BILL No. 1221
4343 A BILL FOR AN ACT to amend the Indiana Code concerning
4444 pensions.
4545 Be it enacted by the General Assembly of the State of Indiana:
46-1 SECTION 1. IC 5-10.5-4-8, AS ADDED BY P.L.129-2024,
47-2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
48-3 JULY 1, 2025]: Sec. 8. (a) The board shall set the surcharge rates under
49-4 IC 5-10.2-12-3 at a level to actuarially prefund:
50-5 (1) annual indexed thirteenth checks for all current retired
51-6 members and beneficiaries retired before July 1, 2025; July 1,
52-7 2029; and
53-8 (2) one percent (1%) annual cost of living adjustments to future
54-9 in-payment members and beneficiaries retired on or after July 1,
55-10 2025. July 1, 2029.
56-11 (b) The board shall not reduce the surcharge rates under
57-12 IC 5-10.2-12-3 from the prior year.
58-13 (c) The board may increase the surcharge rates under IC 5-10.2-12-3
59-14 by not more than one-tenth percent (0.1%) of payroll from the prior
60-15 year.
61-16 (d) This section expires December 31, 2029. 2031.
62-17 SECTION 2. IC 10-12-7-3, AS ADDED BY P.L.129-2024,
46+1 SECTION 1. IC 5-10.2-12-4, AS ADDED BY P.L.127-2018,
47+2 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
48+3 JULY 1, 2025]: Sec. 4. (a) In each even-numbered calendar year,
49+4 beginning in 2018, the board shall present to the interim study
50+5 committee on pension management oversight (established by
51+6 IC 2-5-1.3-4) an actuarial report concerning the status of each
52+7 supplemental allowance reserve account.
53+8 (b) The general assembly may grant a postretirement benefit
54+9 increase, thirteenth check, or other benefit change or adjustment for
55+10 members of or participants in a fund or plan listed in section 1 of this
56+11 chapter only
57+12 (1) in an odd-numbered calendar year; and
58+13 (2) if the postretirement benefit increase, thirteenth check, or
59+14 other benefit change or adjustment:
60+15 (A) (1) may be funded from the uncommitted balance in the
61+16 supplemental allowance reserve account of the particular fund
62+17 or plan; and
6363 EH 1221—LS 6891/DI 153 2
64-1 SECTION 9 AND P.L.136-2024, SECTION 36, IS AMENDED TO
65-2 READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 3. The
66-3 account consists of:
67-4 (1) amounts appropriated by the general assembly;
68-5 (2) or amounts transferred to the account by the general
69-6 assembly; and
70-7 (3) surcharge amounts deposited under section 5 of this
71-8 chapter.
72-9 SECTION 3. IC 10-12-7-5 IS ADDED TO THE INDIANA CODE
73-10 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
74-11 1, 2025]: Sec. 5. (a) The treasurer of state shall determine a
75-12 surcharge amount that is to be paid into the account.
76-13 (b) In establishing the surcharge, the treasurer of state shall
77-14 determine an equivalent amount to be included in the state general
78-15 fund appropriations for the supplemental allowance reserve
79-16 accounts.
80-17 (c) The surcharge shall be paid from a separate charge for both
81-18 employer and employee contributions.
64+1 (B) (2) may be paid in the same amount or percentage, or by
65+2 using the same formula or computation method, to members
66+3 of or participants in each of the funds and plans listed in
67+4 section 1 of this chapter.
68+5 SECTION 2. IC 5-10.2-12-5 IS ADDED TO THE INDIANA CODE
69+6 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
70+7 JANUARY 1, 2027]: Sec. 5. (a) As used in this section, "fund"
71+8 refers to the Indiana state teachers' retirement fund established by
72+9 IC 5-10.4-2-1.
73+10 (b) As used in this section, "supplemental allowance reserve
74+11 account" refers to the supplemental allowance reserve account
75+12 established under IC 5-10.2-2-2(c)(3).
76+13 (c) Not later than October 1 of each year, the supplemental
77+14 allowance reserve account shall pay a thirteenth check to a
78+15 member of the fund (or to a survivor or beneficiary of a member)
79+16 who retired or was disabled on or before December 1 of the prior
80+17 year, and who is entitled to receive a monthly benefit on July 1 of
81+18 the year in which the thirteenth check would be paid, consisting of
82+19 an amount equal to the greater of:
83+20 (1) the amount determined under subsection (d); or
84+21 (2) the result of:
85+22 (A) fifteen dollars ($15); multiplied by
86+23 (B) the member's number of years of creditable service.
87+24 However, the number of years used as a factor under this
88+25 clause may not exceed thirty (30).
89+26 The amount is not an increase in the pension portion of the
90+27 monthly benefit.
91+28 (d) For purposes of determining the amount paid under
92+29 subsection (c), the applicable amount is determined as follows:
93+30 If a Member's Creditable The Amount Is:
94+31 Service Is:
95+32 At least 5 years, but less than 10 years $150
96+33 At least 10 years, but less than 20 years $275
97+34 At least 20 years, but less than 30 years $375
98+35 At least 30 years $450
99+36 (e) The creditable service used to determine the amount paid to
100+37 a member (or to a survivor or beneficiary of a member) under
101+38 subsection (c) is the creditable service that was used to compute the
102+39 member's retirement benefit under IC 5-10.2-4-4, except that
103+40 partial years of creditable service may not be used to determine the
104+41 amount paid under subsection (c).
105+42 (f) If two (2) or more survivors or beneficiaries of a member are
82106 EH 1221—LS 6891/DI 153 3
107+1 entitled to an amount paid under subsection (c), the amount shall
108+2 be allocated to the survivors or beneficiaries in shares using the
109+3 same percentages as the percentages determined under
110+4 IC 5-10.2-3-7.5 or IC 5-10.4-4-10 to pay the monthly benefit to the
111+5 survivors or beneficiaries.
112+6 (g) This section expires July 1, 2029.
113+7 SECTION 3. IC 5-10.2-12-6 IS ADDED TO THE INDIANA CODE
114+8 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
115+9 JANUARY 1, 2027]: Sec. 6. (a) As used in this section, "fund"
116+10 refers to the Indiana public employees' retirement fund established
117+11 by IC 5-10.3-2-1.
118+12 (b) As used in this section, "supplemental allowance reserve
119+13 account" refers to the supplemental allowance reserve account
120+14 established under IC 5-10.2-2-2(a)(3).
121+15 (c) Not later than October 1 of each year, the supplemental
122+16 allowance reserve account shall pay a thirteenth check to a
123+17 member of the fund (or to a survivor or beneficiary of a member)
124+18 who retired or was disabled on or before December 1 of the prior
125+19 year, and who is entitled to receive a monthly benefit on July 1 of
126+20 the year in which the thirteenth check would be paid, consisting of
127+21 an amount equal to the greater of:
128+22 (1) the amount determined under subsection (d); or
129+23 (2) the result of:
130+24 (A) fifteen dollars ($15); multiplied by
131+25 (B) the member's number of years of creditable service.
132+26 However, the number of years used as a factor under this
133+27 clause may not exceed thirty (30).
134+28 The amount is not an increase in the pension portion of the
135+29 monthly benefit.
136+30 (d) For purposes of determining the amount paid under
137+31 subsection (c), the applicable amount is determined as follows:
138+32 If a Member's Creditable The Amount Is:
139+33 Service Is:
140+34 At least 5 years, but less than 10 years $150
141+35 At least 10 years, but less than 20 years $275
142+36 At least 20 years, but less than 30 years $375
143+37 At least 30 years $450
144+38 (e) The creditable service used to determine the amount paid to
145+39 a member (or to a survivor or beneficiary of a member) under
146+40 subsection (c) is the creditable service that was used to compute the
147+41 member's retirement benefit under IC 5-10.2-4-4, except that
148+42 partial years of creditable service may not be used to determine the
149+EH 1221—LS 6891/DI 153 4
150+1 amount paid under subsection (c).
151+2 (f) If two (2) or more survivors or beneficiaries of a member are
152+3 entitled to an amount paid under subsection (c), the amount shall
153+4 be allocated to the survivors or beneficiaries in shares using the
154+5 same percentages as the percentages determined under
155+6 IC 5-10.2-3-7.5 or IC 5-10.3-8-15 to pay the monthly benefit to the
156+7 survivors or beneficiaries.
157+8 (g) This section expires July 1, 2029.
158+9 SECTION 4. IC 5-10.2-12-7 IS ADDED TO THE INDIANA CODE
159+10 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
160+11 JANUARY 1, 2027]: Sec. 7. (a) As used in this section, "plan" refers
161+12 to the state excise police, gaming agent, gaming control officer, and
162+13 conservation enforcement officers' retirement plan created by
163+14 IC 5-10-5.5-2.
164+15 (b) As used in this section, "supplemental allowance reserve
165+16 account" refers to the supplemental allowance reserve account
166+17 established under IC 5-10-5.5-4(c).
167+18 (c) Not later than October 1 of each year, the supplemental
168+19 allowance reserve account shall pay a thirteenth check to a plan
169+20 participant (or to a survivor or beneficiary of a plan participant)
170+21 who retired or was disabled on or before December 1 of the prior
171+22 year, and who is entitled to receive a monthly benefit on July 1 of
172+23 the year in which the thirteenth check would be paid, consisting of
173+24 an amount equal to the greater of:
174+25 (1) the amount determined under subsection (d); or
175+26 (2) the result of:
176+27 (A) fifteen dollars ($15); multiplied by
177+28 (B) the plan participant's number of years of creditable
178+29 service. However, the number of years used as a factor
179+30 under this clause may not exceed thirty (30).
180+31 The amount is not an increase in the pension portion of the
181+32 monthly benefit.
182+33 (d) For purposes of determining the amount paid under
183+34 subsection (c), the applicable amount is determined as follows:
184+35 If a Plan Participant's Creditable The Amount Is:
185+36 Service Is:
186+37 At least 5 years, but less than 10 years $150
187+38 At least 10 years, but less than 20 years $275
188+39 At least 20 years, but less than 30 years $375
189+40 At least 30 years $450
190+41 (e) The creditable service used to determine the amount paid to
191+42 a plan participant (or to a survivor or beneficiary of a plan
192+EH 1221—LS 6891/DI 153 5
193+1 participant) under subsection (c) is the creditable service that was
194+2 used to compute the plan participant's retirement allowance under
195+3 IC 5-10-5.5-10 and IC 5-10-5.5-12, except that partial years of
196+4 creditable service may not be used to determine the amount paid
197+5 under subsection (c).
198+6 (f) If two (2) or more survivors or beneficiaries of a plan
199+7 participant are entitled to an amount paid under subsection (c), the
200+8 amount shall be allocated to the survivors or beneficiaries in shares
201+9 using the same percentages as the percentages determined under
202+10 IC 5-10-5.5-16 to pay the monthly benefit to the survivors or
203+11 beneficiaries.
204+12 (g) This section expires July 1, 2029.
205+13 SECTION 5. IC 5-10.5-4-8, AS ADDED BY P.L.129-2024,
206+14 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
207+15 JULY 1, 2025]: Sec. 8. (a) The board shall set the surcharge rates under
208+16 IC 5-10.2-12-3 at a level to actuarially prefund:
209+17 (1) annual indexed thirteenth checks for all current retired
210+18 members and beneficiaries retired before July 1, 2025; July 1,
211+19 2029; and
212+20 (2) one percent (1%) annual cost of living adjustments to future
213+21 in-payment members and beneficiaries retired on or after July 1,
214+22 2025. July 1, 2029.
215+23 (b) The board shall not reduce the surcharge rates under
216+24 IC 5-10.2-12-3 from the prior year.
217+25 (c) The board may increase the surcharge rates under IC 5-10.2-12-3
218+26 by not more than one-tenth percent (0.1%) of payroll from the prior
219+27 year.
220+28 (d) This section expires December 31, 2029. 2031.
221+29 SECTION 6. IC 10-12-7-5 IS ADDED TO THE INDIANA CODE
222+30 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
223+31 JANUARY 1, 2027]: Sec. 5. (a) Not later than October 1 of each
224+32 year, the trustee shall pay a thirteenth check from the account to
225+33 each employee beneficiary of the state police pre-1987 benefit
226+34 system covered by IC 10-12-3 who:
227+35 (1) retired or was disabled before July 2 of the prior year; and
228+36 (2) is entitled to receive a monthly benefit on September 1 of
229+37 the year in which the thirteenth check would be paid;
230+38 consisting of an amount equal to one percent (1%) of the maximum
231+39 basic annual pension amount payable to a retired state police
232+40 employee in the grade of trooper who has completed twenty (20)
233+41 years of service on July 1 of the year in which the thirteenth check
234+42 would be paid, as calculated under IC 10-12-3-7.
235+EH 1221—LS 6891/DI 153 6
236+1 (b) The amount paid under this section is not an increase in the
237+2 monthly pension amount of an employee beneficiary.
238+3 (c) This section expires July 1, 2029.
239+4 SECTION 7. IC 10-12-7-6 IS ADDED TO THE INDIANA CODE
240+5 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
241+6 JANUARY 1, 2027]: Sec. 6. (a) Not later than October 1 of each
242+7 year, the trustee shall pay a thirteenth check from the account to
243+8 each employee beneficiary of the state police 1987 benefit system
244+9 covered by IC 10-12-4 who:
245+10 (1) retired or was disabled after June 30, 1987, and before
246+11 July 2 of the prior year; and
247+12 (2) is entitled to receive a monthly benefit on September 1 of
248+13 the year in which the thirteenth check would be paid;
249+14 an amount equal to one percent (1%) of the maximum basic annual
250+15 pension amount payable to a retired state police employee in the
251+16 grade of trooper who has completed twenty-five (25) years of
252+17 service on July 1 of the year in which the thirteenth check would be
253+18 paid, as calculated under IC 10-12-4-7.
254+19 (b) The amount paid under this section is not an increase in the
255+20 monthly pension amount of an employee beneficiary
256+21 (c) This section expires July 1, 2029.
257+22 SECTION 8. [EFFECTIVE JULY 1, 2025] (a) As used in this
258+23 SECTION, "fund" refers to the Indiana state teachers' retirement
259+24 fund established by IC 5-10.4-2-1.
260+25 (b) As used in this SECTION, "supplemental allowance reserve
261+26 account" refers to the supplemental allowance reserve account
262+27 established under IC 5-10.2-2-2(c)(3).
263+28 (c) As used in this SECTION, "thirteenth check" means a
264+29 supplemental payment to a member of the fund (or to a survivor
265+30 or beneficiary of a member) that is determined as either:
266+31 (1) a fixed amount based on the member's years of creditable
267+32 service; or
268+33 (2) a variable amount based on the member's base pension
269+34 benefit payment and the member's years of creditable service.
270+35 (d) Not later than October 1, 2025, the supplemental allowance
271+36 reserve account shall pay a thirteenth check to a member of the
272+37 fund (or to a survivor or beneficiary of a member) who retired or
273+38 was disabled on or before December 1, 2024, and who is entitled to
274+39 receive a monthly benefit on July 1, 2025, an amount equal to the
275+40 greater of:
276+41 (1) the amount determined under subsection (f) for the
277+42 member of the fund; or
278+EH 1221—LS 6891/DI 153 7
279+1 (2) the result of:
280+2 (A) fifteen dollars ($15); multiplied by
281+3 (B) the member's number of years of creditable service.
282+4 However, the number of years used as a factor under this
283+5 clause may not exceed thirty (30).
284+6 The amount is not an increase in the pension portion of the
285+7 monthly benefit.
286+8 (e) After June 30, 2026, and not later than October 1, 2026, the
287+9 supplemental allowance reserve account shall pay a thirteenth
288+10 check to a member of the fund (or to a survivor or beneficiary of
289+11 a member) who retired or was disabled on or before December 1,
290+12 2025, and who is entitled to receive a monthly benefit on July 1,
291+13 2026, an amount equal to the greater of:
292+14 (1) the amount determined under subsection (f) for the
293+15 member of the fund; or
294+16 (2) the result of:
295+17 (A) fifteen dollars ($15); multiplied by
296+18 (B) the member's number of years of creditable service.
297+19 However, the number of years used as a factor under this
298+20 clause may not exceed thirty (30).
299+21 The amount is not an increase in the pension portion of the
300+22 monthly benefit.
301+23 (f) For purposes of determining the amount paid under
302+24 subsection (d) or (e) to a member of the fund (or to a survivor or
303+25 beneficiary of a member) who meets the requirements of
304+26 subsection (d) or (e), the applicable amount is determined as
305+27 follows:
306+28 If a Member's Creditable The Amount Is:
307+29 Service Is:
308+30 At least 5 years, but less than 10 years $150
309+31 At least 10 years, but less than 20 years $275
310+32 At least 20 years, but less than 30 years $375
311+33 At least 30 years $450
312+34 (g) The creditable service used to determine the amount paid to
313+35 a member (or to a survivor or beneficiary of a member) under
314+36 subsection (d) or (e) is the creditable service that was used to
315+37 compute the member's retirement benefit under IC 5-10.2-4-4,
316+38 except that partial years of creditable service may not be used to
317+39 determine the amount paid under subsection (d) or (e).
318+40 (h) If two (2) or more survivors or beneficiaries of a member are
319+41 entitled to an amount paid under subsection (d) or (e), the amount
320+42 shall be allocated to the survivors or beneficiaries in shares using
321+EH 1221—LS 6891/DI 153 8
322+1 the same percentages as the percentages determined under
323+2 IC 5-10.2-3-7.5 or IC 5-10.4-4-10 to pay the monthly benefit to the
324+3 survivors or beneficiaries.
325+4 (i) This SECTION applies notwithstanding IC 5-10.2-12-4(b).
326+5 (j) This SECTION expires January 1, 2027.
327+6 SECTION 9. [EFFECTIVE JULY 1, 2025] (a) As used in this
328+7 SECTION, "fund" refers to the Indiana public employees'
329+8 retirement fund established by IC 5-10.3-2-1.
330+9 (b) As used in this SECTION, "supplemental allowance reserve
331+10 account" refers to the supplemental allowance reserve account
332+11 established under IC 5-10.2-2-2(a)(3).
333+12 (c) As used in this SECTION, "thirteenth check" means a
334+13 supplemental payment to a member of the fund (or to a survivor
335+14 or beneficiary of a member) that is determined as either:
336+15 (1) a fixed amount based on the member's years of creditable
337+16 service; or
338+17 (2) a variable amount based on the member's base pension
339+18 benefit payment and the member's years of creditable service.
340+19 (d) Not later than October 1, 2025, the supplemental allowance
341+20 reserve account shall pay a thirteenth check to a member of the
342+21 fund (or to a survivor or beneficiary of a member) who retired or
343+22 was disabled on or before December 1, 2024, and who is entitled to
344+23 receive a monthly benefit on July 1, 2025, an amount equal to the
345+24 greater of:
346+25 (1) the amount determined under subsection (f) for the
347+26 member of the fund; or
348+27 (2) the result of:
349+28 (A) fifteen dollars ($15); multiplied by
350+29 (B) the member's number of years of creditable service.
351+30 However, the number of years used as a factor under this
352+31 clause may not exceed thirty (30).
353+32 The amount is not an increase in the pension portion of the
354+33 monthly benefit.
355+34 (e) After June 30, 2026, and not later than October 1, 2026, the
356+35 supplemental allowance reserve account shall pay a thirteenth
357+36 check to a member of the fund (or to a survivor or beneficiary of
358+37 a member) who retired or was disabled on or before December 1,
359+38 2025, and who is entitled to receive a monthly benefit on July 1,
360+39 2026, an amount equal to the greater of:
361+40 (1) the amount determined under subsection (f) for the
362+41 member of the fund; or
363+42 (2) the result of:
364+EH 1221—LS 6891/DI 153 9
365+1 (A) fifteen dollars ($15); multiplied by
366+2 (B) the member's number of years of creditable service.
367+3 However, the number of years used as a factor under this
368+4 clause may not exceed thirty (30).
369+5 The amount is not an increase in the pension portion of the
370+6 monthly benefit.
371+7 (f) For purposes of determining the amount paid under
372+8 subsection (d) or (e) to a member of the fund (or to a survivor or
373+9 beneficiary of a member) who meets the requirements of
374+10 subsection (d) or (e), the applicable amount is determined as
375+11 follows:
376+12 If a Member's Creditable The Amount Is:
377+13 Service Is:
378+14 At least 5 years, but less than 10 years $150
379+15 At least 10 years, but less than 20 years $275
380+16 At least 20 years, but less than 30 years $375
381+17 At least 30 years $450
382+18 (g) The creditable service used to determine the amount paid to
383+19 a member (or to a survivor or beneficiary of a member) under
384+20 subsection (d) or (e) is the creditable service that was used to
385+21 compute the member's retirement benefit under IC 5-10.2-4-4,
386+22 except that partial years of creditable service may not be used to
387+23 determine the amount paid under subsection (d) or (e).
388+24 (h) If two (2) or more survivors or beneficiaries of a member are
389+25 entitled to an amount paid under subsection (d) or (e), the amount
390+26 shall be allocated to the survivors or beneficiaries in shares using
391+27 the same percentages as the percentages determined under
392+28 IC 5-10.2-3-7.5 or IC 5-10.3-8-15 to pay the monthly benefit to the
393+29 survivors or beneficiaries.
394+30 (i) This SECTION applies notwithstanding IC 5-10.2-12-4(b).
395+31 (j) This SECTION expires January 1, 2027.
396+32 SECTION 10. [EFFECTIVE JULY 1, 2025] (a) As used in this
397+33 SECTION, "participant" has the meaning set forth in
398+34 IC 5-10-5.5-1.
399+35 (b) As used in this SECTION, "plan" refers to the state excise
400+36 police, gaming agent, gaming control officer, and conservation
401+37 enforcement officers' retirement plan created by IC 5-10-5.5-2.
402+38 (c) As used in this SECTION, "supplemental allowance reserve
403+39 account" refers to the supplemental allowance reserve account
404+40 established under IC 5-10-5.5-4(c).
405+41 (d) As used in this SECTION, "thirteenth check" means a
406+42 supplemental payment to a plan participant (or to a survivor or
407+EH 1221—LS 6891/DI 153 10
408+1 beneficiary of a plan participant) that is determined as either:
409+2 (1) a fixed amount based on the plan participant's years of
410+3 creditable service; or
411+4 (2) a variable amount based on the plan participant's base
412+5 pension benefit payment and the plan participant's years of
413+6 creditable service.
414+7 (e) Not later than October 1, 2025, the supplemental allowance
415+8 reserve account shall pay a thirteenth check to a plan participant
416+9 (or to a survivor or beneficiary of a plan participant) who retired
417+10 or was disabled on or before December 1, 2024, and who is entitled
418+11 to receive a monthly benefit on July 1, 2025, an amount equal to
419+12 the greater of:
420+13 (1) the amount determined under subsection (g) for the plan
421+14 participant of the fund; or
422+15 (2) the result of:
423+16 (A) fifteen dollars ($15); multiplied by
424+17 (B) the plan participant's number of years of creditable
425+18 service. However, the number of years used as a factor
426+19 under this clause may not exceed thirty (30).
427+20 The amount is not an increase in the pension portion of the
428+21 monthly benefit.
429+22 (f) After June 30, 2026, and not later than October 1, 2026, the
430+23 supplemental allowance reserve account shall pay a thirteenth
431+24 check to a plan participant (or to a survivor or beneficiary of a
432+25 plan participant) who retired or was disabled on or before
433+26 December 1, 2025, and who is entitled to receive a monthly benefit
434+27 on July 1, 2026, an amount equal to the greater of:
435+28 (1) the amount determined under subsection (g) for the plan
436+29 participant of the fund; or
437+30 (2) the result of:
438+31 (A) fifteen dollars ($15); multiplied by
439+32 (B) the plan participant's number of years of creditable
440+33 service. However, the number of years used as a factor
441+34 under this clause may not exceed thirty (30).
442+35 The amount is not an increase in the pension portion of the
443+36 monthly benefit.
444+37 (g) For purposes of determining the amount paid under
445+38 subsection (e) or (f) to a plan participant (or to a survivor or
446+39 beneficiary of a plan participant) who meets the requirements of
447+40 subsection (e) or (f), the applicable amount is determined as
448+41 follows:
449+42 If a Plan Participant's Creditable The Amount Is:
450+EH 1221—LS 6891/DI 153 11
451+1 Service Is:
452+2 At least 5 years, but less than 10 years $150
453+3 At least 10 years, but less than 20 years $275
454+4 At least 20 years, but less than 30 years $375
455+5 At least 30 years $450
456+6 (h) The creditable service used to determine the amount paid to
457+7 a plan participant (or to a survivor or beneficiary of a plan
458+8 participant) under subsection (e) or (f) is the creditable service that
459+9 was used to compute the plan participant's retirement allowance
460+10 under IC 5-10-5.5-10 and IC 5-10-5.5-12, except that partial years
461+11 of creditable service may not be used to determine the amount paid
462+12 under subsection (e) or (f).
463+13 (i) If two (2) or more survivors or beneficiaries of a plan
464+14 participant are entitled to an amount paid under subsection (e) or
465+15 (f), the amount shall be allocated to the survivors or beneficiaries
466+16 in shares using the same percentages as the percentages
467+17 determined under IC 5-10-5.5-16 to pay the monthly benefit to the
468+18 survivors or beneficiaries.
469+19 (j) This SECTION applies notwithstanding IC 5-10.2-12-4(b).
470+20 (k) This SECTION expires January 1, 2027.
471+21 SECTION 11. [EFFECTIVE JULY 1, 2025] (a) As used in this
472+22 SECTION, "thirteenth check" means a supplemental payment to
473+23 an employee beneficiary that is determined as either:
474+24 (1) a fixed amount based on the employee beneficiary's years
475+25 of creditable service; or
476+26 (2) a variable amount based on the employee beneficiary's
477+27 base pension benefit payment and the employee beneficiary's
478+28 years of creditable service.
479+29 (b) As used in this SECTION, "trustee" has the meaning set
480+30 forth in IC 10-12-1-10.
481+31 (c) As used in this SECTION, "trust fund" has the meaning set
482+32 forth in IC 10-12-1-11.
483+33 (d) Not later than October 1, 2025, the trustee shall pay a
484+34 thirteenth check from the trust fund to each employee beneficiary
485+35 of the state police pre-1987 benefit system covered by IC 10-12-3
486+36 who:
487+37 (1) retired or was disabled before July 2, 2024; and
488+38 (2) is entitled to receive a monthly benefit as of September 1,
489+39 2025;
490+40 an amount equal to one percent (1%) of the maximum basic annual
491+41 pension amount payable to a retired state police employee in the
492+42 grade of trooper who has completed twenty (20) years of service as
493+EH 1221—LS 6891/DI 153 12
494+1 of July 1, 2025, as calculated under IC 10-12-3-7.
495+2 (e) After September 1, 2026, and not later than October 1, 2026,
496+3 the trustee shall pay a thirteenth check from the trust fund to each
497+4 employee beneficiary of the state police pre-1987 benefit system
498+5 covered by IC 10-12-3 who:
499+6 (1) retired or was disabled before July 2, 2025; and
500+7 (2) is entitled to receive a monthly benefit as of September 1,
501+8 2026;
502+9 an amount equal to one percent (1%) of the maximum basic annual
503+10 pension amount payable to a retired state police employee in the
504+11 grade of trooper who has completed twenty (20) years of service as
505+12 of July 1, 2026, as calculated under IC 10-12-3-7.
506+13 (f) The amounts paid under this SECTION are not an increase
507+14 in the monthly pension amount of an employee beneficiary.
508+15 (g) This SECTION applies notwithstanding IC 10-12-7-2.
509+16 (h) This SECTION expires January 1, 2027.
510+17 SECTION 12. [EFFECTIVE JULY 1, 2025] (a) As used in this
511+18 SECTION, "thirteenth check" means a supplemental payment to
512+19 an employee beneficiary that is determined as either:
513+20 (1) a fixed amount based on the employee beneficiary's years
514+21 of creditable service; or
515+22 (2) a variable amount based on the employee beneficiary's
516+23 base pension benefit payment and the employee beneficiary's
517+24 years of creditable service.
518+25 (b) As used in this SECTION, "trustee" has the meaning set
519+26 forth in IC 10-12-1-10.
520+27 (c) As used in this SECTION, "trust fund" has the meaning set
521+28 forth in IC 10-12-1-11.
522+29 (d) Not later than October 1, 2025, the trustee shall pay a
523+30 thirteenth check from the trust fund to each employee beneficiary
524+31 of the state police 1987 benefit system covered by IC 10-12-4 who:
525+32 (1) retired or was disabled after June 30, 1987, and before
526+33 July 2, 2024; and
527+34 (2) is entitled to receive a monthly benefit as of September 1,
528+35 2025;
529+36 an amount equal to one percent (1%) of the maximum basic annual
530+37 pension amount payable to a retired state police employee in the
531+38 grade of trooper who has completed twenty-five (25) years of
532+39 service as of July 1, 2025, as calculated under IC 10-12-4-7.
533+40 (e) After September 1, 2026, and not later than October 1, 2026,
534+41 the trustee shall pay a thirteenth check from the trust fund to each
535+42 employee beneficiary of the state police 1987 benefit system
536+EH 1221—LS 6891/DI 153 13
537+1 covered by IC 10-12-4 who:
538+2 (1) retired or was disabled after June 30, 1987, and before
539+3 July 2, 2025; and
540+4 (2) is entitled to receive a monthly benefit as of September 1,
541+5 2026;
542+6 an amount equal to one percent (1%) of the maximum basic annual
543+7 pension amount payable to a retired state police employee in the
544+8 grade of trooper who has completed twenty-five (25) years of
545+9 service as of July 1, 2026, as calculated under IC 10-12-4-7.
546+10 (f) The amount paid under this SECTION is not an increase in
547+11 the monthly pension amount of an employee beneficiary.
548+12 (g) This SECTION applies notwithstanding IC 10-12-7-2.
549+13 (h) This SECTION expires January 1, 2027.
550+EH 1221—LS 6891/DI 153 14
83551 COMMITTEE REPORT
84552 Mr. Speaker: Your Committee on Ways and Means, to which was
85553 referred House Bill 1221, has had the same under consideration and
86554 begs leave to report the same back to the House with the
87555 recommendation that said bill be amended as follows:
88556 Delete the title and insert the following:
89557 A BILL FOR AN ACT concerning pensions.
90558 Page 1, delete lines 1 through 17.
91559 Page 2, delete lines 1 through 13.
92560 Page 2, between lines 19 and 20, begin a new paragraph and insert:
93561 "(c) As used in this SECTION, "thirteenth check" means a
94562 supplemental payment to a member of the fund (or to a survivor
95563 or beneficiary of a member) that is determined as either:
96564 (1) a fixed amount based on the member's years of creditable
97565 service; or
98566 (2) a variable amount based on the member's base pension
99567 benefit payment and the member's years of creditable
100568 service.".
101569 Page 2, line 20, delete "(c)" and insert "(d)".
102570 Page 2, line 21, delete "the amount determined under subsection"
103571 and insert "a thirteenth check".
104572 Page 2, line 22, delete "(e)".
105573 Page 2, line 24, after "July 1," insert "2025, an amount equal to the
106574 greater of:
107575 (1) the amount determined under subsection (f) for the
108576 member of the fund; or
109577 (2) the result of:
110578 (A) fifteen dollars ($15); multiplied by
111579 (B) the member's number of years of creditable service.
112580 However, the number of years used as a factor under this
113581 clause may not exceed thirty (30).
114582 The amount is not an increase in the pension portion of the
115583 monthly benefit.".
116584 Page 2, delete lines 25 through 26.
117585 Page 2, line 27, delete "(d)" and insert "(e)".
118586 Page 2, line 28, delete "the amount" and insert "a thirteenth
119587 check".
120588 Page 2, line 29, delete "determined under subsection (e)".
121589 Page 2, line 32, delete "2026. The amount is not an increase in" and
122590 insert "2026, an amount equal to the greater of:
123591 (1) the amount determined under subsection (f) for the
124592 member of the fund; or
125-EH 1221—LS 6891/DI 153 4
593+EH 1221—LS 6891/DI 153 15
126594 (2) the result of:
127595 (A) fifteen dollars ($15); multiplied by
128596 (B) the member's number of years of creditable service.
129597 However, the number of years used as a factor under this
130598 clause may not exceed thirty (30).
131599 The amount is not an increase in the pension portion of the
132600 monthly benefit.".
133601 Page 2, delete line 33.
134602 Page 2, line 34, delete "(e) The" and insert "(f) For purposes of
135603 determining the".
136604 Page 2, line 34, delete "(c) or (d)" and insert "(d) or (e)".
137605 Page 2, line 36, delete "(c) or (d)" and insert "(d) or (e), the
138606 applicable amount".
139607 Page 2, delete lines 40 through 41.
140608 Page 3, line 3, delete "(f)" and insert "(g)".
141609 Page 3, line 5, delete "(c) or (d)" and insert "(d) or (e)".
142610 Page 3, line 8, delete "(c) or (d)." and insert "(d) or (e).".
143611 Page 3, line 9, delete "(g)" and insert "(h)".
144612 Page 3, line 10, delete "(c) or (d)," and insert "(d) or (e),".
145613 Page 3, line 15, delete "(h)" and insert "(i)".
146614 Page 3, line 16, delete "(i)" and insert "(j)".
147615 Page 3, between lines 22 and 23, begin a new paragraph and insert:
148616 "(c) As used in this SECTION, "thirteenth check" means a
149617 supplemental payment to a member of the fund (or to a survivor
150618 or beneficiary of a member) that is determined as either:
151619 (1) a fixed amount based on the member's years of creditable
152620 service; or
153621 (2) a variable amount based on the member's base pension
154622 benefit payment and the member's years of creditable
155623 service.".
156624 Page 3, line 23, delete "(c)" and insert "(d)".
157625 Page 3, line 24, delete "the amount determined under subsection"
158626 and insert "a thirteenth check".
159627 Page 3, line 25, delete "(e)".
160628 Page 3, line 27, after "July 1," insert "2025, an amount equal to the
161629 greater of:
162630 (1) the amount determined under subsection (f) for the
163631 member of the fund; or
164632 (2) the result of:
165633 (A) fifteen dollars ($15); multiplied by
166634 (B) the member's number of years of creditable service.
167635 However, the number of years used as a factor under this
168-EH 1221—LS 6891/DI 153 5
636+EH 1221—LS 6891/DI 153 16
169637 clause may not exceed thirty (30).
170638 The amount is not an increase in the pension portion of the
171639 monthly benefit.".
172640 Page 3, delete lines 28 through 29.
173641 Page 3, line 30, delete "(d)" and insert "(e)".
174642 Page 3, line 31, delete "the amount" and insert "a thirteenth
175643 check".
176644 Page 3, line 32, delete "determined under subsection (e)".
177645 Page 3, line 35, delete "2026. The amount is not an increase in" and
178646 insert "2026, an amount equal to the greater of:
179647 (1) the amount determined under subsection (f) for the
180648 member of the fund; or
181649 (2) the result of:
182650 (A) fifteen dollars ($15); multiplied by
183651 (B) the member's number of years of creditable service.
184652 However, the number of years used as a factor under this
185653 clause may not exceed thirty (30).
186654 The amount is not an increase in the pension portion of the
187655 monthly benefit.".
188656 Page 3, delete line 36.
189657 Page 3, line 37, delete "(e) The" and insert "(f) For purposes of
190658 determining the".
191659 Page 3, line 37, delete "(c) or (d)" and insert "(d) or (e)".
192660 Page 3, line 39, delete "(c) or (d)" and insert "(d) or (e), the
193661 applicable amount".
194662 Page 4, delete lines 1 through 2.
195663 Page 4, line 6, delete "(f)" and insert "(g)".
196664 Page 4, line 8, delete "(c) or (d)" and insert "(d) or (e)".
197665 Page 4, line 11, delete "(c) or (d)." and insert "(d) or (e).".
198666 Page 4, line 12, delete "(g)" and insert "(h)".
199667 Page 4, line 13, delete "(c) or (d)," and insert "(d) or (e),".
200668 Page 4, line 18, delete "(h)" and insert "(i)".
201669 Page 4, line 19, delete "(i)" and insert "(j)".
202670 Page 4, between lines 28 and 29, begin a new paragraph and insert:
203671 "(d) As used in this SECTION, "thirteenth check" means a
204672 supplemental payment to a plan participant (or to a survivor or
205673 beneficiary of a plan participant) that is determined as either:
206674 (1) a fixed amount based on the plan participant's years of
207675 creditable service; or
208676 (2) a variable amount based on the plan participant's base
209677 pension benefit payment and the plan participant's years of
210678 creditable service.".
211-EH 1221—LS 6891/DI 153 6
679+EH 1221—LS 6891/DI 153 17
212680 Page 4, line 29, delete "(d)" and insert "(e)".
213681 Page 4, line 30, delete "the amount determined under subsection"
214682 and insert "a thirteenth check".
215683 Page 4, line 31, delete "(f)".
216684 Page 4, line 33, after "July 1," insert "2025, an amount equal to the
217685 greater of:
218686 (1) the amount determined under subsection (g) for the plan
219687 participant of the fund; or
220688 (2) the result of:
221689 (A) fifteen dollars ($15); multiplied by
222690 (B) the plan participant's number of years of creditable
223691 service. However, the number of years used as a factor
224692 under this clause may not exceed thirty (30).
225693 The amount is not an increase in the pension portion of the
226694 monthly benefit.".
227695 Page 4, delete lines 34 through 35.
228696 Page 4, line 36, delete "(e)" and insert "(f)".
229697 Page 4, line 37, delete "the amount" and insert "a thirteenth
230698 check".
231699 Page 4, line 38, delete "determined under subsection (f)".
232700 Page 4, line 41, delete "2026. The amount is not an" and insert
233701 "2026, an amount equal to the greater of:
234702 (1) the amount determined under subsection (g) for the plan
235703 participant of the fund; or
236704 (2) the result of:
237705 (A) fifteen dollars ($15); multiplied by
238706 (B) the plan participant's number of years of creditable
239707 service. However, the number of years used as a factor
240708 under this clause may not exceed thirty (30).
241709 The amount is not an increase in the pension portion of the
242710 monthly benefit.".
243711 Page 4, delete line 42.
244712 Page 5, line 1, delete "(f) The" and insert "(g) For purposes of
245713 determining the".
246714 Page 5, line 1, delete "(d) or (e)" and insert "(e) or (f)".
247715 Page 5, line 3, delete "(d) or (e)" and insert "(e) or (f), the
248716 applicable amount".
249717 Page 5, delete lines 8 through 9.
250718 Page 5, line 13, delete "(g)" and insert "(h)".
251719 Page 5, line 15, delete "(d) or (e)" and insert "(e) or (f)".
252720 Page 5, line 19, delete "(d) or (e)." and insert "(e) or (f).".
253721 Page 5, line 20, delete "(h)" and insert "(i)".
254-EH 1221—LS 6891/DI 153 7
722+EH 1221—LS 6891/DI 153 18
255723 Page 5, line 21, delete "(d) or" and insert "(e) or (f),".
256724 Page 5, line 22, delete "(e),".
257725 Page 5, line 26, delete "(i)" and insert "(j)".
258726 Page 5, line 27, delete "(j)" and insert "(k)".
259727 Page 5, line 28, after "(a)" insert "As used in this SECTION,
260728 "thirteenth check" means a supplemental payment to an employee
261729 beneficiary that is determined as either:
262730 (1) a fixed amount based on the employee beneficiary's years
263731 of creditable service; or
264732 (2) a variable amount based on the employee beneficiary's
265733 base pension benefit payment and the employee beneficiary's
266734 years of creditable service.
267735 (b)".
268736 Page 5, line 30, delete "(b)" and insert "(c)".
269737 Page 5, line 32, delete "(c)" and insert "(d)".
270738 Page 5, line 32, after "pay" insert "a thirteenth check".
271739 Page 5, line 42, delete "(d)" and insert "(e)".
272740 Page 6, line 1, after "pay" insert "a thirteenth check".
273741 Page 6, line 11, delete "(e)" and insert "(f)".
274742 Page 6, line 13, delete "(f)" and insert "(g)".
275743 Page 6, line 13, delete "IC 5-10.2-12-4(b)." and insert "IC
276744 10-12-7-2.".
277745 Page 6, line 14, delete "(g)" and insert "(h)".
278746 Page 6, line 15, after "(a)" insert "As used in this SECTION,
279747 "thirteenth check" means a supplemental payment to an employee
280748 beneficiary that is determined as either:
281749 (1) a fixed amount based on the employee beneficiary's years
282750 of creditable service; or
283751 (2) a variable amount based on the employee beneficiary's
284752 base pension benefit payment and the employee beneficiary's
285753 years of creditable service.
286754 (b)".
287755 Page 6, line 17, delete "(b)" and insert "(c)".
288756 Page 6, line 19, delete "(c)" and insert "(d)".
289757 Page 6, line 19, after "pay" insert "a thirteenth check".
290758 Page 6, line 30, delete "(d)" and insert "(e)".
291759 Page 6, line 31, after "pay" insert "a thirteenth check".
292760 Page 6, line 42, delete "(e)" and insert "(f)".
293761 Page 7, line 2, delete "(f)" and insert "(g)".
294762 Page 7, line 2, delete "IC 5-10.2-12-4(b)." and insert "IC
295763 10-12-7-2.".
296764 Page 7, line 3, delete "(g)" and insert "(h)".
297-EH 1221—LS 6891/DI 153 8
765+EH 1221—LS 6891/DI 153 19
298766 Renumber all SECTIONS consecutively.
299767 and when so amended that said bill do pass.
300768 (Reference is to HB 1221 as introduced.)
301769 THOMPSON
302770 Committee Vote: yeas 24, nays 0.
303771 _____
304772 COMMITTEE REPORT
305773 Mr. President: The Senate Committee on Pensions and Labor, to
306774 which was referred House Bill No. 1221, has had the same under
307775 consideration and begs leave to report the same back to the Senate with
308776 the recommendation that said bill be AMENDED as follows:
309777 Delete the title and insert the following:
310778 A BILL FOR AN ACT to amend the Indiana Code concerning
311779 pensions.
312780 Page 1, between the enacting clause and line 1, begin a new
313781 paragraph and insert:
314782 "SECTION 1. IC 5-10.2-12-4, AS ADDED BY P.L.127-2018,
315783 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
316784 JULY 1, 2025]: Sec. 4. (a) In each even-numbered calendar year,
317785 beginning in 2018, the board shall present to the interim study
318786 committee on pension management oversight (established by
319787 IC 2-5-1.3-4) an actuarial report concerning the status of each
320788 supplemental allowance reserve account.
321789 (b) The general assembly may grant a postretirement benefit
322790 increase, thirteenth check, or other benefit change or adjustment for
323791 members of or participants in a fund or plan listed in section 1 of this
324792 chapter only
325793 (1) in an odd-numbered calendar year; and
326794 (2) if the postretirement benefit increase, thirteenth check, or
327795 other benefit change or adjustment:
328796 (A) (1) may be funded from the uncommitted balance in the
329797 supplemental allowance reserve account of the particular fund
330798 or plan; and
331799 (B) (2) may be paid in the same amount or percentage, or by
332800 using the same formula or computation method, to members
333801 of or participants in each of the funds and plans listed in
334-EH 1221—LS 6891/DI 153 9
802+EH 1221—LS 6891/DI 153 20
335803 section 1 of this chapter.
336804 SECTION 2. IC 5-10.2-12-5 IS ADDED TO THE INDIANA CODE
337805 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
338806 JANUARY 1, 2027]: Sec. 5. (a) As used in this section, "fund"
339807 refers to the Indiana state teachers' retirement fund established by
340808 IC 5-10.4-2-1.
341809 (b) As used in this section, "supplemental allowance reserve
342810 account" refers to the supplemental allowance reserve account
343811 established under IC 5-10.2-2-2(c)(3).
344812 (c) Not later than October 1 of each year, the supplemental
345813 allowance reserve account shall pay a thirteenth check to a
346814 member of the fund (or to a survivor or beneficiary of a member)
347815 who retired or was disabled on or before December 1 of the prior
348816 year, and who is entitled to receive a monthly benefit on July 1 of
349817 the year in which the thirteenth check would be paid, consisting of
350818 an amount equal to the greater of:
351819 (1) the amount determined under subsection (d); or
352820 (2) the result of:
353821 (A) fifteen dollars ($15); multiplied by
354822 (B) the member's number of years of creditable service.
355823 However, the number of years used as a factor under this
356824 clause may not exceed thirty (30).
357825 The amount is not an increase in the pension portion of the
358826 monthly benefit.
359827 (d) For purposes of determining the amount paid under
360828 subsection (c), the applicable amount is determined as follows:
361829 If a Member's Creditable The Amount Is:
362830 Service Is:
363831 At least 5 years, but less than 10 years $150
364832 At least 10 years, but less than 20 years $275
365833 At least 20 years, but less than 30 years $375
366834 At least 30 years $450
367835 (e) The creditable service used to determine the amount paid to
368836 a member (or to a survivor or beneficiary of a member) under
369837 subsection (c) is the creditable service that was used to compute the
370838 member's retirement benefit under IC 5-10.2-4-4, except that
371839 partial years of creditable service may not be used to determine the
372840 amount paid under subsection (c).
373841 (f) If two (2) or more survivors or beneficiaries of a member are
374842 entitled to an amount paid under subsection (c), the amount shall
375843 be allocated to the survivors or beneficiaries in shares using the
376844 same percentages as the percentages determined under
377-EH 1221—LS 6891/DI 153 10
845+EH 1221—LS 6891/DI 153 21
378846 IC 5-10.2-3-7.5 or IC 5-10.4-4-10 to pay the monthly benefit to the
379847 survivors or beneficiaries.
380848 (g) This section expires July 1, 2029.
381849 SECTION 3. IC 5-10.2-12-6 IS ADDED TO THE INDIANA CODE
382850 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
383851 JANUARY 1, 2027]: Sec. 6. (a) As used in this section, "fund"
384852 refers to the Indiana public employees' retirement fund established
385853 by IC 5-10.3-2-1.
386854 (b) As used in this section, "supplemental allowance reserve
387855 account" refers to the supplemental allowance reserve account
388856 established under IC 5-10.2-2-2(a)(3).
389857 (c) Not later than October 1 of each year, the supplemental
390858 allowance reserve account shall pay a thirteenth check to a
391859 member of the fund (or to a survivor or beneficiary of a member)
392860 who retired or was disabled on or before December 1 of the prior
393861 year, and who is entitled to receive a monthly benefit on July 1 of
394862 the year in which the thirteenth check would be paid, consisting of
395863 an amount equal to the greater of:
396864 (1) the amount determined under subsection (d); or
397865 (2) the result of:
398866 (A) fifteen dollars ($15); multiplied by
399867 (B) the member's number of years of creditable service.
400868 However, the number of years used as a factor under this
401869 clause may not exceed thirty (30).
402870 The amount is not an increase in the pension portion of the
403871 monthly benefit.
404872 (d) For purposes of determining the amount paid under
405873 subsection (c), the applicable amount is determined as follows:
406874 If a Member's Creditable The Amount Is:
407875 Service Is:
408876 At least 5 years, but less than 10 years $150
409877 At least 10 years, but less than 20 years $275
410878 At least 20 years, but less than 30 years $375
411879 At least 30 years $450
412880 (e) The creditable service used to determine the amount paid to
413881 a member (or to a survivor or beneficiary of a member) under
414882 subsection (c) is the creditable service that was used to compute the
415883 member's retirement benefit under IC 5-10.2-4-4, except that
416884 partial years of creditable service may not be used to determine the
417885 amount paid under subsection (c).
418886 (f) If two (2) or more survivors or beneficiaries of a member are
419887 entitled to an amount paid under subsection (c), the amount shall
420-EH 1221—LS 6891/DI 153 11
888+EH 1221—LS 6891/DI 153 22
421889 be allocated to the survivors or beneficiaries in shares using the
422890 same percentages as the percentages determined under
423891 IC 5-10.2-3-7.5 or IC 5-10.3-8-15 to pay the monthly benefit to the
424892 survivors or beneficiaries.
425893 (g) This section expires July 1, 2029.
426894 SECTION 4. IC 5-10.2-12-7 IS ADDED TO THE INDIANA CODE
427895 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
428896 JANUARY 1, 2027]: Sec. 7. (a) As used in this section, "plan" refers
429897 to the state excise police, gaming agent, gaming control officer, and
430898 conservation enforcement officers' retirement plan created by
431899 IC 5-10-5.5-2.
432900 (b) As used in this section, "supplemental allowance reserve
433901 account" refers to the supplemental allowance reserve account
434902 established under IC 5-10-5.5-4(c).
435903 (c) Not later than October 1 of each year, the supplemental
436904 allowance reserve account shall pay a thirteenth check to a plan
437905 participant (or to a survivor or beneficiary of a plan participant)
438906 who retired or was disabled on or before December 1 of the prior
439907 year, and who is entitled to receive a monthly benefit on July 1 of
440908 the year in which the thirteenth check would be paid, consisting of
441909 an amount equal to the greater of:
442910 (1) the amount determined under subsection (d); or
443911 (2) the result of:
444912 (A) fifteen dollars ($15); multiplied by
445913 (B) the plan participant's number of years of creditable
446914 service. However, the number of years used as a factor
447915 under this clause may not exceed thirty (30).
448916 The amount is not an increase in the pension portion of the
449917 monthly benefit.
450918 (d) For purposes of determining the amount paid under
451919 subsection (c), the applicable amount is determined as follows:
452920 If a Plan Participant's Creditable The Amount Is:
453921 Service Is:
454922 At least 5 years, but less than 10 years $150
455923 At least 10 years, but less than 20 years $275
456924 At least 20 years, but less than 30 years $375
457925 At least 30 years $450
458926 (e) The creditable service used to determine the amount paid to
459927 a plan participant (or to a survivor or beneficiary of a plan
460928 participant) under subsection (c) is the creditable service that was
461929 used to compute the plan participant's retirement allowance under
462930 IC 5-10-5.5-10 and IC 5-10-5.5-12, except that partial years of
463-EH 1221—LS 6891/DI 153 12
931+EH 1221—LS 6891/DI 153 23
464932 creditable service may not be used to determine the amount paid
465933 under subsection (c).
466934 (f) If two (2) or more survivors or beneficiaries of a plan
467935 participant are entitled to an amount paid under subsection (c), the
468936 amount shall be allocated to the survivors or beneficiaries in shares
469937 using the same percentages as the percentages determined under
470938 IC 5-10-5.5-16 to pay the monthly benefit to the survivors or
471939 beneficiaries.
472940 (g) This section expires July 1, 2029.
473941 SECTION 5. IC 5-10.5-4-8, AS ADDED BY P.L.129-2024,
474942 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
475943 JULY 1, 2025]: Sec. 8. (a) The board shall set the surcharge rates under
476944 IC 5-10.2-12-3 at a level to actuarially prefund:
477945 (1) annual indexed thirteenth checks for all current retired
478946 members and beneficiaries retired before July 1, 2025; July 1,
479947 2029; and
480948 (2) one percent (1%) annual cost of living adjustments to future
481949 in-payment members and beneficiaries retired on or after July 1,
482950 2025. July 1, 2029.
483951 (b) The board shall not reduce the surcharge rates under
484952 IC 5-10.2-12-3 from the prior year.
485953 (c) The board may increase the surcharge rates under IC 5-10.2-12-3
486954 by not more than one-tenth percent (0.1%) of payroll from the prior
487955 year.
488956 (d) This section expires December 31, 2029. 2031.
489957 SECTION 6. IC 10-12-7-5 IS ADDED TO THE INDIANA CODE
490958 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
491959 JANUARY 1, 2027]: Sec. 5. (a) Not later than October 1 of each
492960 year, the trustee shall pay a thirteenth check from the account to
493961 each employee beneficiary of the state police pre-1987 benefit
494962 system covered by IC 10-12-3 who:
495963 (1) retired or was disabled before July 2 of the prior year; and
496964 (2) is entitled to receive a monthly benefit on September 1 of
497965 the year in which the thirteenth check would be paid;
498966 consisting of an amount equal to one percent (1%) of the maximum
499967 basic annual pension amount payable to a retired state police
500968 employee in the grade of trooper who has completed twenty (20)
501969 years of service on July 1 of the year in which the thirteenth check
502970 would be paid, as calculated under IC 10-12-3-7.
503971 (b) The amount paid under this section is not an increase in the
504972 monthly pension amount of an employee beneficiary.
505973 (c) This section expires July 1, 2029.
506-EH 1221—LS 6891/DI 153 13
974+EH 1221—LS 6891/DI 153 24
507975 SECTION 7. IC 10-12-7-6 IS ADDED TO THE INDIANA CODE
508976 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
509977 JANUARY 1, 2027]: Sec. 6. (a) Not later than October 1 of each
510978 year, the trustee shall pay a thirteenth check from the account to
511979 each employee beneficiary of the state police 1987 benefit system
512980 covered by IC 10-12-4 who:
513981 (1) retired or was disabled after June 30, 1987, and before
514982 July 2 of the prior year; and
515983 (2) is entitled to receive a monthly benefit on September 1 of
516984 the year in which the thirteenth check would be paid;
517985 an amount equal to one percent (1%) of the maximum basic annual
518986 pension amount payable to a retired state police employee in the
519987 grade of trooper who has completed twenty-five (25) years of
520988 service on July 1 of the year in which the thirteenth check would be
521989 paid, as calculated under IC 10-12-4-7.
522990 (b) The amount paid under this section is not an increase in the
523991 monthly pension amount of an employee beneficiary
524992 (c) This section expires July 1, 2029.".
525993 Renumber all SECTIONS consecutively.
526994 and when so amended that said bill do pass and be reassigned to the
527995 Senate Committee on Appropriations.
528996 (Reference is to HB 1221 as printed January 30, 2025.)
529997 ROGERS, Chairperson
530998 Committee Vote: Yeas 10, Nays 0.
531-_____
532-COMMITTEE REPORT
533-Mr. President: The Senate Committee on Appropriations, to which
534-was referred Engrossed House Bill No. 1221, has had the same under
535-consideration and begs leave to report the same back to the Senate with
536-the recommendation that said bill be AMENDED as follows:
537-Page 1, delete lines 1 through 17.
538-Delete pages 2 through 4.
539-Page 5, delete lines 1 through 12.
540-Page 5, delete lines 29 through 42, begin a new paragraph and
541-insert:
542-"SECTION 2. IC 10-12-7-3, AS ADDED BY P.L.129-2024,
543-SECTION 9 AND P.L.136-2024, SECTION 36, IS AMENDED TO
544-EH 1221—LS 6891/DI 153 14
545-READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 3. The
546-account consists of:
547-(1) amounts appropriated by the general assembly;
548-(2) or amounts transferred to the account by the general
549-assembly; and
550-(3) surcharge amounts deposited under section 5 of this
551-chapter.
552-SECTION 3. IC 10-12-7-5 IS ADDED TO THE INDIANA CODE
553-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
554-1, 2025]: Sec. 5. (a) The treasurer of state shall determine a
555-surcharge amount that is to be paid into the account.
556-(b) In establishing the surcharge, the treasurer of state shall
557-determine an equivalent amount to be included in the state general
558-fund appropriations for the supplemental allowance reserve
559-accounts.
560-(c) The surcharge shall be paid from a separate charge for both
561-employer and employee contributions.".
562-Delete pages 6 through 13.
563-Renumber all SECTIONS consecutively.
564-and when so amended that said bill do pass.
565-(Reference is to EHB 1221 as printed March 28, 2025.)
566-MISHLER, Chairperson
567-Committee Vote: Yeas 11, Nays 1.
568999 EH 1221—LS 6891/DI 153