Indiana 2025 Regular Session

Indiana House Bill HB1263 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. 1263
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 5-10.2-15.
7	7	Synopsis: Forfeiture of retirement benefits. Provides that particular
8	8	elected officials who are convicted of a crime violating public trust
9	9	forfeit state retirement benefits. Specifies exceptions.
10	10	Effective: July 1, 2025.
11	11	Greene
12	12	January 9, 2025, read first time and referred to Committee on Employment, Labor and
13	13	Pensions.
14	14	2025 IN 1263—LS 6643/DI 144 Introduced
15	15	First Regular Session of the 124th General Assembly (2025)
16	16	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
17	17	Constitution) is being amended, the text of the existing provision will appear in this style type,
18	18	additions will appear in this style type, and deletions will appear in this style type.
19	19	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
20	20	provision adopted), the text of the new provision will appear in this style type. Also, the
21	21	word NEW will appear in that style type in the introductory clause of each SECTION that adds
22	22	a new provision to the Indiana Code or the Indiana Constitution.
23	23	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
24	24	between statutes enacted by the 2024 Regular Session of the General Assembly.
25	25	HOUSE BILL No. 1263
26	26	A BILL FOR AN ACT to amend the Indiana Code concerning
27	27	pensions.
28	28	Be it enacted by the General Assembly of the State of Indiana:
29	29	1 SECTION 1. IC 5-10.2-15 IS ADDED TO THE INDIANA CODE
30	30	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
31	31	3 JULY 1, 2025]:
32	32	4 Chapter 15. Forfeiture of Retirement Benefits for Crimes
33	33	5 Violating Public Trust
34	34	6 Sec. 1. This chapter applies to an individual who:
35	35	7 (1) is:
36	36	8 (A) elected to;
37	37	9 (B) appointed to; or
38	38	10 (C) selected or confirmed to fill a vacancy in; or
39	39	11 (2) succeeds to;
40	40	12 a state public office for the first time after June 30, 2025.
41	41	13 Sec. 2. As used in this chapter, "crime violating public trust"
42	42	14 means one (1) or more of the following offenses committed while an
43	43	15 individual holds or held a state public office:
44	44	16 (1) IC 2-7-6-4 (member of the general assembly conspiring
45	45	17 with a lobbyist).
46	46	2025 IN 1263—LS 6643/DI 144 2
47	47	1 (2) An offense under IC 3-14 (elections offenses).
48	48	2 (3) An offense under IC 35-44.1-1 (general public
49	49	3 administration).
50	50	4 (4) IC 35-43-5-4 (fraud).
51	51	5 (5) An offense under 15 U.S.C. 78dd-1 through 15 U.S.C.
52	52	6 78dd-3.
53	53	7 (6) An offense under 18 U.S.C. 2.
54	54	8 (7) An offense under 18 U.S.C. 201.
55	55	9 (8) An offense under 18 U.S.C. 241.
56	56	10 (9) An offense under 18 U.S.C. 242.
57	57	11 (10) An offense under 18 U.S.C. 245.
58	58	12 (11) An offense under 18 U.S.C. 371.
59	59	13 (12) An offense under 18 U.S.C. 666.
60	60	14 (13) An offense under 18 U.S.C. 911.
61	61	15 (14) An offense under 18 U.S.C. 1001.
62	62	16 (15) An offense under 18 U.S.C. 1015.
63	63	17 (16) An offense under 18 U.S.C. 1341.
64	64	18 (17) An offense under 18 U.S.C. 1343.
65	65	19 (18) An offense under 18 U.S.C. 1505.
66	66	20 (19) An offense under 18 U.S.C. 1519.
67	67	21 (20) An offense under 18 U.S.C. 1951.
68	68	22 (21) An offense under 18 U.S.C. 1952.
69	69	23 (22) An offense under 18 U.S.C. 1956.
70	70	24 (23) An offense under 18 U.S.C. Chapter 29.
71	71	25 (24) An offense under 18 U.S.C. Chapter 95.
72	72	26 (25) An offense under 18 U.S.C. Chapter 96.
73	73	27 (26) An offense under 52 U.S.C. 10307.
74	74	28 (27) An offense under 52 U.S.C. 10308.
75	75	29 (28) An offense under 52 U.S.C. 20511.
76	76	30 (29) An offense under 52 U.S.C. Chapter 301.
77	77	31 Sec. 3. (a) As used in this chapter, "deferred compensation
78	78	32 employer contribution" means an individual's retirement benefit
79	79	33 under one (1) or more of the following:
80	80	34 (1) A defined contribution plan established:
81	81	35 (A) under IC 5-10-1.1-1.5 and Section 401(a) of the
82	82	36 Internal Revenue Code; and
83	83	37 (B) for the purpose of matching all or a portion of state
84	84	38 employee contributions to the state employees' deferred
85	85	39 compensation plan.
86	86	40 (2) A defined contribution plan established:
87	87	41 (A) under IC 5-10-1.1-7.5 and Sections 401(a) and 414(d)
88	88	42 of the Internal Revenue Code; and
89	89	2025 IN 1263—LS 6643/DI 144 3
90	90	1 (B) for the purpose of converting unused excess accrued
91	91	2 leave to a monetary contribution for employees of a state
92	92	3 agency.
93	93	4 (b) The term includes only the portion of an individual's
94	94	5 retirement benefit that:
95	95	6 (1) is funded by or consists of amounts contributed by an
96	96	7 employer or the state:
97	97	8 (A) for or on behalf of the individual; and
98	98	9 (B) while the individual held the state public office in
99	99	10 which the individual was serving when the individual
100	100	11 committed a crime violating public trust; or
101	101	12 (2) constitutes net earnings on contributions described in
102	102	13 subdivision (1).
103	103	14 Sec. 4. (a) As used in this chapter, except as provided in
104	104	15 subsection (b), "retirement benefit" means an individual's pension
105	105	16 or retirement benefit under:
106	106	17 (1) IC 4-3-3 (governor's pension);
107	107	18 (2) IC 2-3.5-5 (legislators' defined contribution plan);
108	108	19 (3) IC 5-10.3-2 (public employees' retirement fund); and
109	109	20 (4) IC 5-10.3-12 (public employees' defined contribution plan).
110	110	21 (b) The term includes only the portion of an individual's pension
111	111	22 or retirement benefit that:
112	112	23 (1) is funded by or consists of amounts contributed by an
113	113	24 employer or the state:
114	114	25 (A) for or on behalf of the individual; and
115	115	26 (B) while the individual held the state public office in
116	116	27 which the individual was serving when the individual
117	117	28 committed a crime violating public trust; or
118	118	29 (2) constitutes net earnings on contributions described in
119	119	30 subdivision (1).
120	120	31 Sec. 5. (a) As used in this chapter, "RMBA employer
121	121	32 contribution" means an individual's benefit under a retirement
122	122	33 medical benefits account established:
123	123	34 (1) under IC 5-10.3-8-14 and Section 401(h) of the Internal
124	124	35 Revenue Code or as a separate fund under another applicable
125	125	36 section of the Internal Revenue Code; and
126	126	37 (2) for the purpose of converting unused excess accrued leave
127	127	38 to a monetary contribution for an employee of the state to
128	128	39 fund on a pretax basis benefits for sickness, accident,
129	129	40 hospitalization, and medical expenses for the employee and
130	130	41 the spouse and dependents of the employee after the
131	131	42 employee's retirement.
132	132	2025 IN 1263—LS 6643/DI 144 4
133	133	1 (b) The term includes only the portion of an individual's benefit
134	134	2 that:
135	135	3 (1) is funded by or consists of amounts contributed by an
136	136	4 employer or the state:
137	137	5 (A) for or on behalf of the individual; and
138	138	6 (B) while the individual held the state public office in
139	139	7 which the individual was serving when the individual
140	140	8 committed a crime violating public trust; or
141	141	9 (2) constitutes net earnings on contributions described in
142	142	10 subdivision (1).
143	143	11 Sec. 6. As used in this chapter, "state public office" means the
144	144	12 following offices:
145	145	13 (1) Member of the general assembly.
146	146	14 (2) Governor.
147	147	15 (3) Lieutenant governor.
148	148	16 (4) Secretary of state.
149	149	17 (5) Treasurer of state.
150	150	18 (6) Auditor of state (also known as the state comptroller).
151	151	19 (7) Attorney general.
152	152	20 Sec. 7. (a) Notwithstanding any other law, except as provided in
153	153	21 section 12 of this chapter, an individual who:
154	154	22 (1) held or holds a state public office; and
155	155	23 (2) is convicted of a crime violating public trust as a felony;
156	156	24 forfeits the individual's retirement benefit, deferred compensation
157	157	25 employer contribution, and RMBA employer contribution.
158	158	26 (b) Notwithstanding any other law, an individual's employment
159	159	27 in the state public office in which the individual was serving when
160	160	28 the individual committed a crime violating public trust may not be
161	161	29 considered for purposes of the following:
162	162	30 (1) Determining the individual's years of creditable service in
163	163	31 the Indiana state teachers' retirement fund or the public
164	164	32 employees' retirement fund.
165	165	33 (2) Calculating the average of the annual compensation for
166	166	34 purposes of the Indiana state teachers' retirement fund or the
167	167	35 public employees' retirement fund.
168	168	36 Sec. 8. Not later than sixty (60) days after an individual is
169	169	37 convicted of a crime violating public trust, the following shall
170	170	38 provide written notice of the conviction to the board and the state
171	171	39 comptroller:
172	172	40 (1) The court in which the individual was convicted.
173	173	41 (2) The prosecuting attorney of the county in which the
174	174	42 individual was convicted.
175	175	2025 IN 1263—LS 6643/DI 144 5
176	176	1 Sec. 9. When the board receives notice that an individual who
177	177	2 held or holds a state public office has been convicted of a crime
178	178	3 that violates public trust, the board shall do the following:
179	179	4 (1) Cease payment of retirement benefits and RMBA
180	180	5 employer contributions to the individual.
181	181	6 (2) Provide written notice to the individual, by first class mail,
182	182	7 that specifies the retirement benefits and RMBA employer
183	183	8 contributions that have been forfeited as a result of the
184	184	9 conviction.
185	185	10 Sec. 10. When the state comptroller receives notice that an
186	186	11 individual who held or holds a state public office has been
187	187	12 convicted of a crime that violates public trust, the state comptroller
188	188	13 shall do the following:
189	189	14 (1) Cease payment of deferred compensation employer
190	190	15 contributions to the individual.
191	191	16 (2) Provide written notice to the individual, by first class mail,
192	192	17 that specifies the deferred compensation employer
193	193	18 contributions that have been forfeited as a result of the
194	194	19 conviction.
195	195	20 Sec. 11. The board and the state comptroller shall administer
196	196	21 amounts forfeited under this chapter in accordance with federal
197	197	22 law.
198	198	23 Sec. 12. If a conviction described in section 7(a)(2) of this
199	199	24 chapter is reversed, vacated, or set aside after the board or the
200	200	25 state comptroller takes the actions required under section 9 or 10
201	201	26 of this chapter, the board or the state comptroller, as applicable,
202	202	27 shall do the following:
203	203	28 (1) Resume payment of retirement benefits, deferred
204	204	29 compensation employer contributions, and RMBA employer
205	205	30 contributions to the individual.
206	206	31 (2) Pay to the individual the following:
207	207	32 (A) The retirement benefits, deferred compensation
208	208	33 employer contributions, and RMBA employer
209	209	34 contributions that the individual would have received
210	210	35 during the period between the date payments ceased under
211	211	36 section 9(1) or 10(1) of this chapter and the resumption of
212	212	37 payments under subdivision (1).
213	213	38 (B) A rate of return on the benefits or contributions under
214	214	39 clause (A) determined by the board or the state
215	215	40 comptroller, as applicable.
216	216	41 (3) Provide written notice to the individual, by first class mail,
217	217	42 of the actions taken under subdivisions (1) and (2).
218	218	2025 IN 1263—LS 6643/DI 144