Indiana 2025 Regular Session

Indiana House Bill HB1225 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. 1225
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 10-12-2.
7	7	Synopsis: Pension garnishment for restitution. Provides that when a
8	8	court issues a restitution order against an employee beneficiary of the
9	9	state police benefit system (system), the prosecuting attorney must
10	10	bring an action requesting garnishment of amounts that the employee
11	11	beneficiary is entitled to receive under the system. Requires the court
12	12	to order the trustee to take certain actions if the court finds that the
13	13	restitution order has been issued and has not been fully satisfied or
14	14	discharged.
15	15	Effective: Upon passage.
16	16	Dant Chesser
17	17	January 9, 2025, read first time and referred to Committee on Judiciary.
18	18	2025 IN 1225—LS 7126/DI 144 Introduced
19	19	First Regular Session of the 124th General Assembly (2025)
20	20	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
21	21	Constitution) is being amended, the text of the existing provision will appear in this style type,
22	22	additions will appear in this style type, and deletions will appear in this style type.
23	23	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
24	24	provision adopted), the text of the new provision will appear in this style type. Also, the
25	25	word NEW will appear in that style type in the introductory clause of each SECTION that adds
26	26	a new provision to the Indiana Code or the Indiana Constitution.
27	27	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
28	28	between statutes enacted by the 2024 Regular Session of the General Assembly.
29	29	HOUSE BILL No. 1225
30	30	A BILL FOR AN ACT to amend the Indiana Code concerning
31	31	pensions.
32	32	Be it enacted by the General Assembly of the State of Indiana:
33	33	1 SECTION 1. IC 10-12-2-10, AS AMENDED BY P.L.203-2019,
34	34	2 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35	35	3 UPON PASSAGE]: Sec. 10. (a) A person entitled to, having an interest
36	36	4 in, or sharing a pension or benefit from the trust funds does not, before
37	37	5 the actual payment of the pension or benefit, have the right to
38	38	6 anticipate, sell, assign, pledge, mortgage, or otherwise dispose of or
39	39	7 encumber the pension or benefit.
40	40	8 (b) Except as provided in subsections (c) through (f) and section
41	41	9 10.5 of this chapter, a person's interest, share, pension, or benefit,
42	42	10 before the actual payment of the interest, share, pension, or benefit,
43	43	11 may not be:
44	44	12 (1) used to satisfy the debts or liabilities of the person entitled to
45	45	13 the interest, share, pension, or benefit;
46	46	14 (2) subject to attachment, garnishment, execution, or levy or sale
47	47	15 on judicial proceedings; or
48	48	16 (3) transferred by any means, voluntarily or involuntarily.
49	49	17 (c) The trustee may pay from the trust fund the amounts that the
50	50	2025 IN 1225—LS 7126/DI 144 2
51	51	1 trustee determines are proper and necessary expenses of the trust fund.
52	52	2 (d) However, the person's contributions or benefits, or both, may be
53	53	3 transferred to reimburse the person's employer for loss resulting from
54	54	4 the person's criminal taking of the employer's property by the trustee if
55	55	5 the trustee receives adequate proof of the loss. The loss resulting from
56	56	6 the person's criminal taking of the employer's property must be proven
57	57	7 by an order for restitution in favor of the employer issued by the
58	58	8 sentencing court following a felony or misdemeanor conviction.
59	59	9 (e) The trustee may withhold payment of the person's contributions
60	60	10 and interest if the employer of the person notifies the trustee that felony
61	61	11 or misdemeanor charges accusing the person of the criminal taking of
62	62	12 the employer's property have been filed.
63	63	13 (f) The trustee may withhold payment of a person's contributions
64	64	14 and interest under subsection (e) until the final resolution of the
65	65	15 criminal charges.
66	66	16 (g) Subsections (e) and (f) do not apply to the:
67	67	17 (1) monthly benefit of a retired employee beneficiary; or
68	68	18 (2) disability pension of an employee beneficiary with a disability.
69	69	19 SECTION 2. IC 10-12-2-10.5 IS ADDED TO THE INDIANA
70	70	20 CODE AS A NEW SECTION TO READ AS FOLLOWS
71	71	21 [EFFECTIVE UPON PASSAGE]: Sec. 10.5. (a) This section applies
72	72	22 when a court issues a restitution order under IC 35-50-5-3
73	73	23 requiring an employee beneficiary to make restitution to the victim
74	74	24 of a crime, the victim's estate, or the family of a victim who is
75	75	25 deceased.
76	76	26 (b) The prosecuting attorney of the county in which the
77	77	27 restitution order was issued shall bring an action in the name of the
78	78	28 state requesting garnishment of amounts that an employee
79	79	29 beneficiary is entitled to receive under this article.
80	80	30 (c) Notwithstanding any other law, if the court presiding over an
81	81	31 action filed under subsection (b) finds both of the following, the
82	82	32 court shall enter an order under subsection (d):
83	83	33 (1) A restitution order has been issued under IC 35-50-5-3
84	84	34 requiring an employee beneficiary to make restitution to the
85	85	35 victim of a crime, the victim's estate, or the family of a victim
86	86	36 who is deceased.
87	87	37 (2) The restitution order has not been fully satisfied or
88	88	38 discharged.
89	89	39 (d) A court that makes both findings under subsection (c) shall
90	90	40 order the trustee to do the following:
91	91	41 (1) Cease payment to the employee beneficiary of any
92	92	42 amounts the employee beneficiary is entitled to receive under
93	93	2025 IN 1225—LS 7126/DI 144 3
94	94	1 this article.
95	95	2 (2) Pay the amounts described in subdivision (1) to the
96	96	3 individual entitled to receive payment under the restitution
97	97	4 order. If more than one (1) individual is entitled to receive
98	98	5 payment under the restitution order, the trustee shall pay the
99	99	6 amounts described in subdivision (1) in the manner required
100	100	7 by the restitution order.
101	101	8 (e) Payment under subsection (d)(2) must occur at the time the
102	102	9 employee beneficiary would have received the amounts, unless the
103	103	10 trustee determines that paying the amounts earlier is appropriate.
104	104	11 (f) The court shall vacate an order issued under subsection (d)
105	105	12 if the restitution order against the employee beneficiary is fully
106	106	13 satisfied or discharged.
107	107	14 (g) The court shall provide notice to the trustee when an order
108	108	15 is:
109	109	16 (1) issued under subsection (d); and
110	110	17 (2) vacated under subsection (f).
111	111	18 SECTION 3. An emergency is declared for this act.
112	112	2025 IN 1225—LS 7126/DI 144