LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7568 NOTE PREPARED: Jan 17, 2025
BILL NUMBER: HB 1479 BILL AMENDED:
SUBJECT: State Police Pensions.
FIRST AUTHOR: Rep. Davis BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill extends eligibility for supplemental pension benefits and incentive
increases to employee beneficiaries of the State Police 1987 Benefit System. (Current law provides eligibility
to employee beneficiaries under the State Police Pre-1987 Benefit System.)
The bill also modifies the: (1) terms of eligibility for; and (2) calculation of; supplemental pension benefits
and incentive increases.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The bill will increase annual state General Fund expenditures for
supplemental pension benefits for state police retirees by an estimated $6.9 M beginning in FY 2026. The
increased expenditures would be ongoing and would further increase whenever a change to the state police
salary matrix increases sixth year trooper salary.
Additional Information - The state appropriated $5.45 M in FY 2024 and in FY 2025 for supplemental
pension benefits for employee beneficiaries of the State Police Pre-1987 Benefit System. Supplemental
pension benefits are paid through state General Fund appropriations and are separate from the State Police
Pension Trust. Supplemental benefits are not included in the calculations of unfunded liabilities and funded
status of the State Police Pension Trust.
1987 Benefit System: Allowing member beneficiaries of the State Police 1987 Benefit System to receive
supplemental pension benefits under the bill would increase annual state General Fund expenditures by an
estimated $6.3 M. Supplemental benefits would be given if the retiree’s basic monthly pension amount is less
than what a retiree would be eligible for if their average monthly wage was equal to the sixth year trooper
salary. In the first year that an individual is eligible for supplemental benefits, they would be eligible for an
amount equal to the difference between the two amounts. In future years, if there is an increase in the sixth
year trooper salary, they would receive half of the difference in the increase for a sixth year trooper.
Additionally, retirees with more than 25 years of service would receive an additional 5% per year increase
HB 1479 1 for each year of service over 25 years of service up to 35 years of service. Any increase to supplemental
benefits in one year is carried forward to subsequent years.
Pre-1987 Benefit System: Changing the calculation of supplemental benefits for retirees of the Pre-1987
benefit system from a fourth-year trooper to a six-year trooper would increase annual state General Fund
expenditures by an estimated $0.6 M beginning in FY 2026. Member beneficiaries of the Pre-1987 Benefit
System would have their supplemental pension benefits increased in FY 2026 and whenever an increase in
supplemental benefits is triggered by an increase in the state police salary for a trooper in the sixth year of
service.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: Indiana State Police; Treasurer of State.
Local Agencies Affected:
Information Sources: State Police.
Fiscal Analyst: Camille Tesch, 317-232-5293.
HB 1479 2