Indiana 2025 Regular Session

Indiana House Bill HB1314 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. 1314
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 36-8-8.5.
7	7	Synopsis: Deferred retirement option plan. Allows a member of the
8	8	1925 police pension fund, 1937 firefighters' pension fund, 1953 police
9	9	pension fund (Indianapolis), or 1977 police officers' and firefighters'
10	10	pension and disability fund to withdraw from the deferred retirement
11	11	option plan (DROP) and make an election to enter the DROP for a
12	12	second time not earlier than three years after the date the member
13	13	withdraws from the DROP. Provides that a member may make an
14	14	election to enter the DROP only twice in the member's lifetime.
15	15	Effective: July 1, 2025.
16	16	Smith V
17	17	January 13, 2025, read first time and referred to Committee on Employment, Labor and
18	18	Pensions.
19	19	2025 IN 1314—LS 6031/DI 153 Introduced
20	20	First Regular Session of the 124th General Assembly (2025)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2024 Regular Session of the General Assembly.
30	30	HOUSE BILL No. 1314
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning
32	32	pensions.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 36-8-8.5-10, AS AMENDED BY P.L.129-2024,
35	35	2 SECTION 10 AND P.L.136-2024, SECTION 56, IS AMENDED TO
36	36	3 READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 10. A
37	37	4 member who elects to enter the DROP shall do the following:
38	38	5 (1) Agree to the following:
39	39	6 (A) Except as provided in clause (F), the member shall
40	40	7 execute an irrevocable election to retire on the DROP
41	41	8 retirement date and shall remain in active service until that
42	42	9 date.
43	43	10 (B) While in the DROP, the member shall continue to make
44	44	11 contributions to the applicable fund under the provisions of
45	45	12 that fund.
46	46	13 (C) The member shall elect a DROP retirement date not less
47	47	14 than twelve (12) months and not more than:
48	48	15 (i) thirty-six (36) months after the member's DROP entry
49	49	16 date, for a member who executes an election described in
50	50	17 clause (A) before July 1, 2024; or
51	51	2025 IN 1314—LS 6031/DI 153 2
52	52	1 (ii) sixty (60) months after the member's DROP entry date,
53	53	2 for a member who executes an election described in clause
54	54	3 (A) after June 30, 2024.
55	55	4 (D) The member may not remain in the DROP after the date
56	56	5 the member reaches any mandatory retirement age that may
57	57	6 apply to the member.
58	58	7 (E) The member may make an election to enter the DROP only
59	59	8 once in the member's lifetime.
60	60	9 (F) The member may:
61	61	10 (i) withdraw from the DROP before the DROP
62	62	11 retirement date; and
63	63	12 (ii) make an election to enter the DROP for a second time
64	64	13 not earlier than three (3) years after the date the
65	65	14 member withdrew from the DROP.
66	66	15 (2) Notify the member's employer of the DROP election within
67	67	16 thirty (30) days of the election.
68	68	17 SECTION 2. IC 36-8-8.5-10.5, AS ADDED BY P.L.129-2024,
69	69	18 SECTION 11 AND P.L.136-2024, SECTION 57, IS AMENDED TO
70	70	19 READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 10.5. (a)
71	71	20 Notwithstanding section 10 of this chapter, a member that entered the
72	72	21 DROP before July 1, 2024, and that has not exited or withdrawn from
73	73	22 the DROP may elect to extend the member's DROP retirement date up
74	74	23 to sixty (60) months after the member's DROP entry date.
75	75	24 (b) A member that makes the election described in subsection (a)
76	76	25 shall notify the member's employer within thirty (30) days of the
77	77	26 election.
78	78	27 SECTION 3. IC 36-8-8.5-10.7 IS ADDED TO THE INDIANA
79	79	28 CODE AS A NEW SECTION TO READ AS FOLLOWS
80	80	29 [EFFECTIVE JULY 1, 2025]: Sec. 10.7. If a member makes an
81	81	30 election to enter the DROP for a second time as set forth in section
82	82	31 10(1)(F) of this chapter, the:
83	83	32 (1) DROP entry date; and
84	84	33 (2) DROP retirement date;
85	85	34 are based on the member's most recent DROP election.
86	86	35 SECTION 4. IC 36-8-8.5-14, AS AMENDED BY P.L.129-2024,
87	87	36 SECTION 12 AND P.L.136-2024, SECTION 58, IS AMENDED TO
88	88	37 READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 14. (a)
89	89	38 Subject to subsection (b), a member who enters the DROP established
90	90	39 by this chapter shall exit the DROP at the earliest of:
91	91	40 (1) the member's DROP retirement date;
92	92	41 (2) either:
93	93	42 (A) thirty-six (36) months after the member's DROP entry
94	94	2025 IN 1314—LS 6031/DI 153 3
95	95	1 date, if the member:
96	96	2 (i) executes an election described in section 10 of this
97	97	3 chapter before July 1, 2024; and
98	98	4 (ii) does not execute an extension described in section 10.5
99	99	5 of this chapter; or
100	100	6 (B) sixty (60) months after the member's DROP entry date, if
101	101	7 the member:
102	102	8 (i) executes an election described in section 10 of this
103	103	9 chapter after June 30, 2024; or
104	104	10 (ii) executes an extension described in section 10.5 of this
105	105	11 chapter;
106	106	12 (3) the mandatory retirement age applicable to the member, if
107	107	13 any; or
108	108	14 (4) the date the member retires because of a disability as provided
109	109	15 under section 16.5(d) of this chapter; or
110	110	16 (5) the date the member withdraws from the DROP under
111	111	17 section 10(1)(F) of this chapter.
112	112	18 (b) A member of the 1925 fund, the 1937 fund, or the 1953 fund
113	113	19 who enters the DROP established by this chapter must exit the DROP
114	114	20 on the date the authority of the board of trustees of the Indiana public
115	115	21 retirement system to distribute from the pension relief fund established
116	116	22 under IC 5-10.3-11-1 to units of local government (described in
117	117	23 IC 5-10.3-11-3) amounts determined under IC 5-10.3-11-4.7 expires.
118	118	2025 IN 1314—LS 6031/DI 153