Introduced Version
HOUSE BILL No. 1263
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-10.2-15.
Synopsis: Forfeiture of retirement benefits. Provides that particular
elected officials who are convicted of a crime violating public trust
forfeit state retirement benefits. Specifies exceptions.
Effective: July 1, 2025.
Greene
January 9, 2025, read first time and referred to Committee on Employment, Labor and
Pensions.
2025 IN 1263—LS 6643/DI 144 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1263
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 5-10.2-15 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]:
4 Chapter 15. Forfeiture of Retirement Benefits for Crimes
5 Violating Public Trust
6 Sec. 1. This chapter applies to an individual who:
7 (1) is:
8 (A) elected to;
9 (B) appointed to; or
10 (C) selected or confirmed to fill a vacancy in; or
11 (2) succeeds to;
12 a state public office for the first time after June 30, 2025.
13 Sec. 2. As used in this chapter, "crime violating public trust"
14 means one (1) or more of the following offenses committed while an
15 individual holds or held a state public office:
16 (1) IC 2-7-6-4 (member of the general assembly conspiring
17 with a lobbyist).
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1 (2) An offense under IC 3-14 (elections offenses).
2 (3) An offense under IC 35-44.1-1 (general public
3 administration).
4 (4) IC 35-43-5-4 (fraud).
5 (5) An offense under 15 U.S.C. 78dd-1 through 15 U.S.C.
6 78dd-3.
7 (6) An offense under 18 U.S.C. 2.
8 (7) An offense under 18 U.S.C. 201.
9 (8) An offense under 18 U.S.C. 241.
10 (9) An offense under 18 U.S.C. 242.
11 (10) An offense under 18 U.S.C. 245.
12 (11) An offense under 18 U.S.C. 371.
13 (12) An offense under 18 U.S.C. 666.
14 (13) An offense under 18 U.S.C. 911.
15 (14) An offense under 18 U.S.C. 1001.
16 (15) An offense under 18 U.S.C. 1015.
17 (16) An offense under 18 U.S.C. 1341.
18 (17) An offense under 18 U.S.C. 1343.
19 (18) An offense under 18 U.S.C. 1505.
20 (19) An offense under 18 U.S.C. 1519.
21 (20) An offense under 18 U.S.C. 1951.
22 (21) An offense under 18 U.S.C. 1952.
23 (22) An offense under 18 U.S.C. 1956.
24 (23) An offense under 18 U.S.C. Chapter 29.
25 (24) An offense under 18 U.S.C. Chapter 95.
26 (25) An offense under 18 U.S.C. Chapter 96.
27 (26) An offense under 52 U.S.C. 10307.
28 (27) An offense under 52 U.S.C. 10308.
29 (28) An offense under 52 U.S.C. 20511.
30 (29) An offense under 52 U.S.C. Chapter 301.
31 Sec. 3. (a) As used in this chapter, "deferred compensation
32 employer contribution" means an individual's retirement benefit
33 under one (1) or more of the following:
34 (1) A defined contribution plan established:
35 (A) under IC 5-10-1.1-1.5 and Section 401(a) of the
36 Internal Revenue Code; and
37 (B) for the purpose of matching all or a portion of state
38 employee contributions to the state employees' deferred
39 compensation plan.
40 (2) A defined contribution plan established:
41 (A) under IC 5-10-1.1-7.5 and Sections 401(a) and 414(d)
42 of the Internal Revenue Code; and
2025 IN 1263—LS 6643/DI 144 3
1 (B) for the purpose of converting unused excess accrued
2 leave to a monetary contribution for employees of a state
3 agency.
4 (b) The term includes only the portion of an individual's
5 retirement benefit that:
6 (1) is funded by or consists of amounts contributed by an
7 employer or the state:
8 (A) for or on behalf of the individual; and
9 (B) while the individual held the state public office in
10 which the individual was serving when the individual
11 committed a crime violating public trust; or
12 (2) constitutes net earnings on contributions described in
13 subdivision (1).
14 Sec. 4. (a) As used in this chapter, except as provided in
15 subsection (b), "retirement benefit" means an individual's pension
16 or retirement benefit under:
17 (1) IC 4-3-3 (governor's pension);
18 (2) IC 2-3.5-5 (legislators' defined contribution plan);
19 (3) IC 5-10.3-2 (public employees' retirement fund); and
20 (4) IC 5-10.3-12 (public employees' defined contribution plan).
21 (b) The term includes only the portion of an individual's pension
22 or retirement benefit that:
23 (1) is funded by or consists of amounts contributed by an
24 employer or the state:
25 (A) for or on behalf of the individual; and
26 (B) while the individual held the state public office in
27 which the individual was serving when the individual
28 committed a crime violating public trust; or
29 (2) constitutes net earnings on contributions described in
30 subdivision (1).
31 Sec. 5. (a) As used in this chapter, "RMBA employer
32 contribution" means an individual's benefit under a retirement
33 medical benefits account established:
34 (1) under IC 5-10.3-8-14 and Section 401(h) of the Internal
35 Revenue Code or as a separate fund under another applicable
36 section of the Internal Revenue Code; and
37 (2) for the purpose of converting unused excess accrued leave
38 to a monetary contribution for an employee of the state to
39 fund on a pretax basis benefits for sickness, accident,
40 hospitalization, and medical expenses for the employee and
41 the spouse and dependents of the employee after the
42 employee's retirement.
2025 IN 1263—LS 6643/DI 144 4
1 (b) The term includes only the portion of an individual's benefit
2 that:
3 (1) is funded by or consists of amounts contributed by an
4 employer or the state:
5 (A) for or on behalf of the individual; and
6 (B) while the individual held the state public office in
7 which the individual was serving when the individual
8 committed a crime violating public trust; or
9 (2) constitutes net earnings on contributions described in
10 subdivision (1).
11 Sec. 6. As used in this chapter, "state public office" means the
12 following offices:
13 (1) Member of the general assembly.
14 (2) Governor.
15 (3) Lieutenant governor.
16 (4) Secretary of state.
17 (5) Treasurer of state.
18 (6) Auditor of state (also known as the state comptroller).
19 (7) Attorney general.
20 Sec. 7. (a) Notwithstanding any other law, except as provided in
21 section 12 of this chapter, an individual who:
22 (1) held or holds a state public office; and
23 (2) is convicted of a crime violating public trust as a felony;
24 forfeits the individual's retirement benefit, deferred compensation
25 employer contribution, and RMBA employer contribution.
26 (b) Notwithstanding any other law, an individual's employment
27 in the state public office in which the individual was serving when
28 the individual committed a crime violating public trust may not be
29 considered for purposes of the following:
30 (1) Determining the individual's years of creditable service in
31 the Indiana state teachers' retirement fund or the public
32 employees' retirement fund.
33 (2) Calculating the average of the annual compensation for
34 purposes of the Indiana state teachers' retirement fund or the
35 public employees' retirement fund.
36 Sec. 8. Not later than sixty (60) days after an individual is
37 convicted of a crime violating public trust, the following shall
38 provide written notice of the conviction to the board and the state
39 comptroller:
40 (1) The court in which the individual was convicted.
41 (2) The prosecuting attorney of the county in which the
42 individual was convicted.
2025 IN 1263—LS 6643/DI 144 5
1 Sec. 9. When the board receives notice that an individual who
2 held or holds a state public office has been convicted of a crime
3 that violates public trust, the board shall do the following:
4 (1) Cease payment of retirement benefits and RMBA
5 employer contributions to the individual.
6 (2) Provide written notice to the individual, by first class mail,
7 that specifies the retirement benefits and RMBA employer
8 contributions that have been forfeited as a result of the
9 conviction.
10 Sec. 10. When the state comptroller receives notice that an
11 individual who held or holds a state public office has been
12 convicted of a crime that violates public trust, the state comptroller
13 shall do the following:
14 (1) Cease payment of deferred compensation employer
15 contributions to the individual.
16 (2) Provide written notice to the individual, by first class mail,
17 that specifies the deferred compensation employer
18 contributions that have been forfeited as a result of the
19 conviction.
20 Sec. 11. The board and the state comptroller shall administer
21 amounts forfeited under this chapter in accordance with federal
22 law.
23 Sec. 12. If a conviction described in section 7(a)(2) of this
24 chapter is reversed, vacated, or set aside after the board or the
25 state comptroller takes the actions required under section 9 or 10
26 of this chapter, the board or the state comptroller, as applicable,
27 shall do the following:
28 (1) Resume payment of retirement benefits, deferred
29 compensation employer contributions, and RMBA employer
30 contributions to the individual.
31 (2) Pay to the individual the following:
32 (A) The retirement benefits, deferred compensation
33 employer contributions, and RMBA employer
34 contributions that the individual would have received
35 during the period between the date payments ceased under
36 section 9(1) or 10(1) of this chapter and the resumption of
37 payments under subdivision (1).
38 (B) A rate of return on the benefits or contributions under
39 clause (A) determined by the board or the state
40 comptroller, as applicable.
41 (3) Provide written notice to the individual, by first class mail,
42 of the actions taken under subdivisions (1) and (2).
2025 IN 1263—LS 6643/DI 144