Introduced Version
HOUSE BILL No. 1479
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 10-12-5.
Synopsis: State police pensions. 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.) Modifies the: (1) terms of eligibility for; and (2) calculation
of; supplemental pension benefits and incentive increases.
Effective: July 1, 2025.
Davis
January 21, 2025, read first time and referred to Committee on Employment, Labor and
Pensions.
2025 IN 1479—LS 7568/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. 1479
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 10-12-5-1 IS AMENDED TO READ AS
2 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1. This chapter is
3 intended to be a supplement to IC 10-12-3 and IC 10-12-4 and does
4 not repeal, impair, or otherwise adversely affect the pension fund or
5 pension benefits provided for in IC 10-12-3 and IC 10-12-4 for eligible
6 employees of the department.
7 SECTION 2. IC 10-12-5-2 IS AMENDED TO READ AS
8 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 2. To become eligible
9 for any supplemental benefits provided in this chapter, an employee of
10 the department must:
11 (1) be at least fifty-five (55) years of age;
12 (2) have completed at least:
13 (A) twenty (20) years of service with the department, or be
14 retired by virtue of becoming fifty-five (55) years of age; if
15 IC 10-12-3 applies to the employee; or
16 (B) twenty-five (25) years of service with the department,
17 if IC 10-12-4 applies to the employee; and
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1 (3) be eligible to receive retirement benefits under IC 10-12-3 or
2 IC 10-12-4.
3 SECTION 3. IC 10-12-5-3, AS AMENDED BY P.L.201-2023,
4 SECTION 124, IS AMENDED TO READ AS FOLLOWS
5 [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) The pension advisory board
6 that administers the pension under IC 10-12-3 and IC 10-12-4 shall
7 direct and supervise the supplemental benefits provided in this chapter.
8 (b) The pension advisory board shall:
9 (1) annually provide a schedule showing the number of retirees
10 receiving pension benefits under IC 10-12-3 and IC 10-12-4; and
11 (2) meet at least one (1) time each year to add to the regular basic
12 monthly pension benefit amount or annuity and any previously
13 granted supplemental benefit the amount described in subsection
14 (c), or (d), (e), or (f).
15 (c) This subsection applies only to a retiree under IC 10-12-3 who
16 is eligible for the first time under section 2 of this chapter to receive a
17 supplemental benefit. The supplemental benefit referred to in
18 subsection (b)(2) for a retiree in the first year the retiree is eligible for
19 a supplemental benefit is the sum of:
20 (1) the difference between:
21 (A) the retiree's basic monthly pension benefit; amount; and
22 (B) the basic monthly pension benefit: amount:
23 (i) received by an employee retiring in that year from the
24 department with twenty (20) years of active service whose
25 average monthly wage is equal to the monthly wage
26 received by a police employee in the grade of trooper at
27 the beginning of the trooper's sixth year of service; and
28 (ii) computed on the day the pension advisory board meets
29 as required under subsection (b)(2); plus
30 (2) any amount computed under subsection (d) after the date the
31 retiree reaches fifty-five (55) years of age.
32 (d) This subsection applies to a retiree under IC 10-12-3 who is
33 eligible under section 2 of this chapter to receive a supplemental
34 benefit, but whose supplemental benefit is not computed under
35 subsection (c). The supplemental benefit referred to in subsection
36 (b)(2) is equal to fifty percent (50%) of the difference between:
37 (1) the basic monthly pension benefits amount to be received by
38 an employee retiring from the department:
39 (A) with twenty (20) years of active service; and
40 (B) whose average monthly wage is equal to the monthly
41 wage received by a police employee in the grade of trooper
42 at the beginning of the trooper's sixth year of service;
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1 the day after a change in the monthly wage received by a police
2 employee in the grade of trooper at the beginning of the trooper's
3 fourth sixth year of service; and
4 (2) the basic monthly pension benefit amount received by an
5 employee retiring from the department:
6 (A) with twenty (20) years of active service; and
7 (B) whose average monthly wage is equal to the monthly
8 wage received by a police employee in the grade of trooper
9 at the beginning of the trooper's sixth year of service;
10 the day before a change in the monthly wage received by a police
11 employee in the grade of trooper at the beginning of the trooper's
12 fourth sixth year of service.
13 (e) This subsection applies only to a retiree under IC 10-12-4
14 who is eligible for the first time under section 2 of this chapter to
15 receive a supplemental benefit. The supplemental benefit referred
16 to in subsection (b)(2) for a retiree in the first year the retiree is
17 eligible for a supplemental benefit is the sum of:
18 (1) the difference between:
19 (A) the retiree's basic monthly pension amount; and
20 (B) the basic monthly pension amount:
21 (i) received by an employee retiring in that year from the
22 department with twenty-five (25) years of active service
23 whose average monthly wage is equal to the monthly
24 wage received by a police employee in the grade of
25 trooper at the beginning of the trooper's sixth year of
26 service; and
27 (ii) computed on the day the pension advisory board
28 meets as required under subsection (b)(2); plus
29 (2) any amount computed under subsection (f) after the date
30 the retiree reaches fifty-five (55) years of age.
31 (f) This subsection applies to a retiree under IC 10-12-4 who is
32 eligible under section 2 of this chapter to receive a supplemental
33 benefit, but whose supplemental benefit is not computed under
34 subsection (e). The supplemental benefit referred to in subsection
35 (b)(2) is equal to fifty percent (50%) of the difference between:
36 (1) the basic monthly pension amount to be received by an
37 employee retiring from the department:
38 (A) with twenty-five (25) years of active service; and
39 (B) whose average monthly wage is equal to the monthly
40 wage received by a police employee in the grade of trooper
41 at the beginning of the trooper's sixth year of service;
42 the day after a change in the monthly wage received by a
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1 police employee in the grade of trooper at the beginning of the
2 trooper's sixth year of service; and
3 (2) the basic monthly pension amount received by an
4 employee retiring from the department:
5 (A) with twenty-five (25) years of active service; and
6 (B) whose average monthly wage is equal to the monthly
7 wage received by a police employee in the grade of trooper
8 at the beginning of the trooper's sixth year of service;
9 the day before a change in the monthly wage received by a
10 police employee in the grade of trooper at the beginning of the
11 trooper's sixth year of service.
12 SECTION 4. IC 10-12-5-4, AS AMENDED BY P.L.1-2009,
13 SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2025]: Sec. 4. This section applies to supplemental benefits
15 paid to employee beneficiaries receiving pension benefits under
16 IC 10-12-3. As an incentive to all employees of the department, the
17 supplemental pension benefits of this chapter shall be increased by
18 more than the increase provided in section 3(c) or 3(d) of this chapter,
19 at the rate of a five percent (5%) per year increase for each year of
20 active service over twenty (20) years up to thirty (30) years of service,
21 as calculated in section 3(c) or 3(d) of this chapter.
22 SECTION 5. IC 10-12-5-4.5 IS ADDED TO THE INDIANA CODE
23 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
24 1, 2025]: Sec. 4.5. This section applies to supplemental benefits paid
25 to employee beneficiaries receiving pension benefits under
26 IC 10-12-4. As an incentive to all employees of the department, the
27 supplemental pension benefits of this chapter shall be increased by
28 more than the increase provided in section 3(e) or 3(f) of this
29 chapter, at the rate of a five percent (5%) per year increase for
30 each year of active service over twenty-five (25) years up to
31 thirty-five (35) years of service, as calculated in section 3(e) or 3(f)
32 of this chapter.
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