*SB0250.2*
February 14, 2025
SENATE BILL No. 250
_____
DIGEST OF SB 250 (Updated February 13, 2025 10:47 am - DI 120)
Citations Affected: IC 5-1; IC 5-10.2; IC 5-10.3; IC 5-10.4; IC 5-11.
Synopsis: Pension matters. Modifies the definition of "average of the
annual compensation" for a member of the public employees'
retirement fund (PERF) who retires after December 31, 2026. Specifies
that compensation received in contemplation of retirement is excluded
from the average of the annual compensation for particular members
of PERF and the Indiana state teachers' retirement fund (TRF). Repeals
a provision requiring the board of trustees of the Indiana public
retirement system (board) to maintain separate accounts for each unit
of local government. Provides that amounts forfeited under the public
employees defined contribution plan must be used as determined by the
board. (Current law requires these amounts to be used to reduce the
unfunded accrued liability of PERF.) Specifies a process by which a
fully vested member of the public employees' defined contribution plan
or the teachers' defined contribution plan may irrevocably elect to
participate in PERF or TRF, as applicable. Modifies the information
that must be included in a delinquency notice to a delinquent political
subdivision. Makes conforming amendments. (The introduced version
of this bill was prepared by the interim study committee on pension
management oversight.)
Effective: Upon passage; July 1, 2025.
Buchanan, Rogers, Niezgodski
January 13, 2025, read first time and referred to Committee on Pensions and Labor.
January 29, 2025, amended, reported favorably — Do Pass; reassigned to Committee on
Appropriations.
February 13, 2025, amended, reported favorably — Do Pass.
SB 250—LS 6769/DI 144 February 14, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 250
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 5-1-14-15, AS AMENDED BY P.L.146-2008,
2 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 15. (a) Before July 1, 2008, a county or
4 municipality may issue bonds, notes, or other obligations for the
5 purpose of providing funds to pay pension benefits under IC 36-8-6,
6 IC 36-8-7, or IC 36-8-7.5.
7 (b) Notwithstanding any other law:
8 (1) bonds, notes, or other obligations issued for the purpose
9 described in this section may have a final maturity date up to, but
10 not exceeding, forty (40) years from the date of original issuance;
11 and
12 (2) the amount of bonds, notes, or other obligations that may be
13 issued for the purpose described in this section may not exceed
14 two percent (2%) of the true tax value of property located within
15 the county or municipality. and
16 (3) the proceeds of bonds, notes, or other obligations issued for
17 the purpose described in this section may be deposited to the
SB 250—LS 6769/DI 144 2
1 issuing county's or municipality's separate account described in
2 IC 5-10.3-11-6.
3 (c) This section is supplemental to all other laws but does not
4 relieve a county or municipality from complying with other procedural
5 requirements for the issuance of bonds, notes, or other obligations.
6 SECTION 2. IC 5-10.2-4-3, AS AMENDED BY P.L.2-2007,
7 SECTION 93, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2025]: Sec. 3. (a) This subsection applies to a member who
9 retires before January 1, 2027. Except as provided in subsection (f),
10 (h), in computing the retirement benefit for a nonteacher member,
11 "average of the annual compensation" means the average annual
12 compensation calculated using the twenty (20) calendar quarters of
13 service in a position covered by the retirement fund before retirement
14 in which the member's annual compensation was the highest. However,
15 in order for a quarter to be included in the twenty (20) calendar
16 quarters, the nonteacher member must have performed service
17 throughout the calendar quarter. All twenty (20) calendar quarters do
18 need not have to be continuous but they must be in groups of four (4)
19 consecutive calendar quarters. The same calendar quarter may not be
20 included in two (2) different groups.
21 (b) This subsection applies to a member who retires after
22 December 31, 2026. This subsection does not apply to a teacher
23 member described in subsection (d) or (e). Except as provided in
24 subsection (h), in computing the retirement benefit for a
25 nonteacher member, "average of the annual compensation" means
26 average annual compensation calculated using the greater of the
27 following:
28 (1) The five (5) calendar years of service before retirement in
29 which the member's annual compensation for the calendar
30 year was the highest.
31 (2) The five (5) fiscal years of service before retirement in
32 which the member's annual compensation for the fiscal year
33 was the highest.
34 (c) The following apply to the calculation under subsection (b):
35 (1) A year does not qualify for inclusion in the calculation
36 unless:
37 (A) the year is equal to twelve (12) months; and
38 (B) the member received creditable service for at least six
39 (6) months throughout the year.
40 (2) A calendar year begins on January 1.
41 (3) A fiscal year begins on July 1.
42 (4) The five (5) years need not be continuous.
SB 250—LS 6769/DI 144 3
1 (b) (d) This subsection does not apply to a teacher member
2 described in subsection (c). (e). In computing the retirement benefit for
3 a teacher member, "average of the annual compensation" means the
4 average annual compensation for the five (5) years of service before
5 retirement in which the member's annual compensation was highest. In
6 order for a year to be included in the five (5) years, the teacher member
7 must have received for the year credit under IC 5-10.4-4-2 for at least
8 one-half (1/2) year of service. The five (5) years do need not have to be
9 continuous.
10 (c) (e) This subsection applies to a member of the Indiana state
11 teachers' retirement fund who serves in an elected position for which
12 the member takes an unpaid leave of absence. In computing the
13 retirement benefit for a teacher member described in this subsection for
14 years of service to which IC 5-10.4-5-7 does not apply, "average of the
15 annual compensation" means the annual compensation for the one (1)
16 year of service before retirement in which the member's annual
17 compensation was highest. In order for a year to be used, the teacher
18 member must have received for the year credit under IC 5-10.4-4-2 for
19 at least one-half (1/2) year of service.
20 (d) (f) Subject to IC 5-10.2-2-1.5, "annual compensation" means:
21 (1) the basic salary earned by and paid to the member plus the
22 amount that would have been part of that salary but for:
23 (A) the state's, a school corporation's, a participating political
24 subdivision's, or a state educational institution's paying the
25 member's contribution to the fund for the member; or
26 (B) the member's salary reduction agreement established under
27 Section 125, 403(b), or 457 of the Internal Revenue Code; and
28 (2) in the case of a member described in subsection (c) (e) and for
29 years of service to which IC 5-10.4-5-7 does not apply, the basic
30 salary that was not paid during the year but would have been paid
31 to the member during the year under the member's employment
32 contracts, if the member had not taken any unpaid leave of
33 absence to serve in an elected position.
34 The portion of a back pay award or a similar award that the board
35 determines is compensation under an agreement or under a judicial or
36 an administrative proceeding shall be allocated by the board among the
37 years the member earned or should have earned the compensation.
38 Only that portion of the award allocated to the year the award is made
39 is considered to have been earned during the year the award was made.
40 Interest on an award is not considered annual compensation for any
41 year.
42 (e) (g) This subsection applies to a member who retires before
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1 January 1, 2027. Compensation of not more than two thousand dollars
2 ($2,000) received from the employer in contemplation of the member's
3 retirement, including severance pay, termination pay, retirement bonus,
4 or commutation of unused sick leave or personal leave, may be
5 included in the total annual compensation from which the average of
6 the annual compensation is determined, if it is received:
7 (1) before the member ceases service; or
8 (2) within twelve (12) months after the member ceases service.
9 (f) (h) This subsection applies to a member of the general assembly:
10 (1) who is a participant in the legislators' retirement system
11 established under IC 2-3.5;
12 (2) who is also a member of the public employees' retirement fund
13 or the Indiana state teachers' retirement fund; and
14 (3) whose years of service in the general assembly may not be
15 considered in determining the average of the annual
16 compensation under this section, as provided in
17 IC 2-3.5-1-2(b)(2) or IC 2-3.5-3-1(c).
18 The board shall use the board's actuarial salary increase assumption to
19 project the salary for any previous year needed to determine the
20 average of the annual compensation.
21 SECTION 3. IC 5-10.2-4-3.2 IS ADDED TO THE INDIANA
22 CODE AS A NEW SECTION TO READ AS FOLLOWS
23 [EFFECTIVE JULY 1, 2025]: Sec. 3.2. (a) This section applies to the
24 calculation of the average of the annual compensation under
25 section 3 of this chapter.
26 (b) For purposes of this section, "compensation received in
27 contemplation of retirement" means compensation that:
28 (1) a member received:
29 (A) during the member's last year of service; and
30 (B) after the member's last year of service; and
31 (2) is greater than one hundred twenty percent (120%) of the
32 compensation the member received during the year before the
33 member's last year of service.
34 (c) For a member who:
35 (1) retires after December 31, 2026; and
36 (2) served in a covered position during the entire year before
37 the member's last year of service;
38 compensation received in contemplation of retirement is excluded
39 from the average of the annual compensation.
40 (d) For purposes of this section, a year must begin on January
41 1 or July 1.
42 SECTION 4. IC 5-10.3-7-1, AS AMENDED BY P.L.92-2019,
SB 250—LS 6769/DI 144 5
1 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JULY 1, 2025]: Sec. 1. (a) This section does not apply to:
3 (1) members of the general assembly; or
4 (2) employees covered by section 3 of this chapter.
5 (b) As used in this section, "employees of the state" includes:
6 (1) employees of the judicial circuits whose compensation is paid
7 from state funds;
8 (2) elected and appointed state officers;
9 (3) prosecuting attorneys and deputy prosecuting attorneys of the
10 judicial circuits, whose compensation is paid in whole or in part
11 from state funds, including participants in the prosecuting
12 attorneys retirement fund established under IC 33-39-7;
13 (4) employees in the classified service;
14 (5) employees of any state department, institution, board,
15 commission, office, agency, court, or division of state government
16 receiving state appropriations and having the authority to certify
17 payrolls from appropriations or from a trust fund held by the
18 treasurer of state or by any department;
19 (6) employees of any state agency that is a body politic and
20 corporate;
21 (7) except as provided under IC 5-10.5-7-4, employees of the
22 board of trustees of the Indiana public retirement system;
23 (8) persons who:
24 (A) are employed by the state;
25 (B) have been classified as federal employees by the United
26 States Secretary of Agriculture; and
27 (C) are excluded from coverage as federal employees by the
28 federal Social Security program under 42 U.S.C. 410;
29 (9) the directors and employees of county offices of family and
30 children; and
31 (10) members and employees of the state lottery commission.
32 (c) An employee of the state or of a participating political
33 subdivision who:
34 (1) became a full-time employee of the state or of a participating
35 political subdivision in a covered position; and
36 (2) had not become a member of the fund;
37 before April 1, 1988, shall on April 1, 1988, become a member of the
38 fund unless the employee is excluded from membership under section
39 2 of this chapter.
40 (d) Except as otherwise provided, any individual who becomes a
41 full-time employee of the state or of a participating political
42 subdivision in a covered position after March 31, 1988, becomes a
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1 member of the fund on the date the individual's employment begins
2 unless the individual is excluded from membership under section 2 of
3 this chapter.
4 (e) An individual:
5 (1) who becomes a full-time employee of a political subdivision
6 in a covered position after June 30, 2015;
7 (2) who is employed by a political subdivision that has elected in
8 an ordinance or resolution adopted under IC 5-10.3-6-1 and
9 approved by the board to require an employee in the covered
10 position to become a member of the fund; and
11 (3) who is not excluded from membership under section 2 of this
12 chapter;
13 becomes a member of the fund on the date the individual's employment
14 begins.
15 (f) An individual:
16 (1) who becomes a full-time employee of a political subdivision
17 in a covered position after an ordinance or resolution described in
18 subdivision (2) that is adopted by the political subdivision has
19 been approved by the board;
20 (2) who is employed by a political subdivision that has elected in
21 an ordinance or resolution adopted under IC 5-10.3-6-1 and
22 approved by the board:
23 (A) to allow an employee in the covered position to become a
24 member of the fund or a member of the public employees'
25 defined contribution plan at the discretion of the employee;
26 and
27 (B) to require an employee in a covered position to make an
28 election under IC 5-10.3-12-20.5 in order to become a member
29 of the plan;
30 (3) who does not make an election under IC 5-10.3-12-20.5 to
31 become a member of the public employees' defined contribution
32 plan; and
33 (4) who is not excluded from membership under section 2 of this
34 chapter;
35 becomes a member of the fund on the date the individual's employment
36 begins.
37 (g) An individual:
38 (1) who becomes a full-time employee of a political subdivision
39 in a covered position after an ordinance or resolution described in
40 subdivision (2) that is adopted by the political subdivision has
41 been approved by the board;
42 (2) who is employed by a political subdivision that has elected in
SB 250—LS 6769/DI 144 7
1 an ordinance or resolution adopted under IC 5-10.3-6-1 and
2 approved by the board:
3 (A) to allow an employee in the covered position to become a
4 member of the fund or the public employees' defined
5 contribution plan at the discretion of the employee; and
6 (B) to require an employee to make an election under section
7 1.1 of this chapter in order to become a member of the fund;
8 (3) who does make an election under section 1.1 of this chapter to
9 become a member of the fund; and
10 (4) who is not excluded from membership under section 2 of this
11 chapter;
12 becomes a member of the fund on the date the individual's employment
13 begins.
14 (h) An individual who makes an election to participate in the
15 fund under IC 5-10.3-12-33 becomes a member of the fund on the
16 date the board receives the election.
17 SECTION 5. IC 5-10.3-11-3, AS AMENDED BY P.L.27-2019,
18 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2025]: Sec. 3. The pension relief fund may be used only for
20 making payments to cities, counties, towns, and townships, referred to
21 as "units of local government" in this chapter, having pension funds
22 established under IC 18-1-12, IC 19-1-18, IC 19-1-24, IC 19-1-25-4,
23 IC 19-1-30, IC 19-1-37, or IC 19-1-44 (all before their repeal), and
24 paying reasonable administrative expenses approved by the state board.
25 Payments received by the units may be used only for
26 (1) pension payments from a pension fund listed in this section.
27 or
28 (2) withdrawals under section 6 of this chapter.
29 SECTION 6. IC 5-10.3-11-6 IS REPEALED [EFFECTIVE JULY
30 1, 2025]. Sec. 6. (a) The state board shall maintain separate accounts
31 for each unit of local government for purposes of this section. The
32 accounts are separate and distinct accounts within the public
33 employees' retirement fund and the pension relief fund.
34 (b) A unit of local government may do the following:
35 (1) Make deposits at any time to the separate account established
36 for the unit under this section.
37 (2) Withdraw once each year from the unit's separate account all
38 or a part of the balance in the account to pay pension benefits
39 under IC 36-8-6, IC 36-8-7, or IC 36-8-7.5.
40 (3) Direct the state board at any time to pay from the unit's
41 separate account all or a part of either or both of the following:
42 (A) The unit's employer contributions under IC 36-8-8-6.
SB 250—LS 6769/DI 144 8
1 (B) The contributions paid by the unit for a member under
2 IC 36-8-8-8(a).
3 SECTION 7. IC 5-10.3-12-25, AS AMENDED BY P.L.241-2015,
4 SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 UPON PASSAGE]: Sec. 25. (a) Member contributions and net
6 earnings on the member contributions in the member contribution
7 subaccount belong to the member at all times and do not belong to any
8 employer.
9 (b) A member is vested in the employer contribution subaccount in
10 accordance with the following schedule:
11 Years of participation in the Vested percentage of
12 plan employer contributions
13 and earnings
14 1 20%
15 2 40%
16 3 60%
17 4 80%
18 5 100%
19 For purposes of vesting in the employer contribution subaccount, only
20 a member's full years of participation in the plan may be counted.
21 (c) The amount that a member may withdraw from the member's
22 account is limited to the vested portion of the account.
23 (d) A member who attains normal retirement age is fully vested in
24 all amounts in the member's account.
25 (e) If a member separates from service with the member's employer
26 before the member is fully vested in the employer contribution
27 subaccount, the amount in the employer contribution subaccount that
28 is not vested is forfeited as of the date the member separates from
29 service.
30 (f) Amounts forfeited under subsection (e) must be used to reduce
31 the unfunded accrued liability of the fund as determined under
32 IC 5-10.2-2-11(a)(3) and IC 5-10.2-2-11(a)(4). as determined by the
33 board.
34 (g) A member may not earn creditable service (as defined in
35 IC 5-10.2-3-1(a)) under the plan.
36 SECTION 8. IC 5-10.3-12-27, AS AMENDED BY P.L.86-2018,
37 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2025]: Sec. 27. (a) For purposes of this section, "member"
39 includes an individual who makes an election to participate in the
40 fund under section 33 of this chapter.
41 (a) (b) If a member dies:
42 (1) while in service in a position covered by the plan but not in
SB 250—LS 6769/DI 144 9
1 the line of duty; or
2 (2) after terminating service in a position covered by the plan but
3 before withdrawing the member's account;
4 to the extent that the member is vested, the member's account shall be
5 paid to the beneficiary or beneficiaries designated by the member on
6 a form prescribed by the board. The amount paid shall be valued as
7 provided in IC 5-10.2-2-3 and IC 5-10.2-2-4 (expired). The board shall
8 invest the total amount in the member's account in the stable value fund
9 not later than thirty (30) days after receiving notification of a member's
10 death.
11 (b) (c) If there is no properly designated beneficiary, or if no
12 beneficiary survives the member, the member's account shall be paid
13 to:
14 (1) the surviving spouse of the member;
15 (2) if there is not a surviving spouse, the surviving dependent or
16 dependents of the member in equal shares; or
17 (3) if there is not a surviving spouse or dependent, the member's
18 estate.
19 (c) (d) The beneficiary or beneficiaries designated under subsection
20 (a) (b) or a survivor determined under subsection (b) (c) may elect to
21 have the member's account paid as:
22 (1) a lump sum;
23 (2) a direct rollover to another eligible retirement plan; or
24 (3) a monthly annuity in accordance with rules of the board.
25 A monthly annuity is an option only on or after the beneficiary or
26 survivor attains sixty-two (62) years of age. The board shall establish
27 the forms of annuity by rule, in consultation with the board's actuary.
28 Further, the board may establish a minimum account balance or a
29 minimum monthly payment amount that is required in order for a
30 beneficiary or survivor to select the monthly annuity option.
31 (d) (e) If a member dies in the line of duty while in service in a
32 covered position, the designated beneficiary or beneficiaries or the
33 surviving spouse or dependents, as applicable, are entitled to payment
34 of the member's account as provided in this section. In addition, if the
35 member was not fully vested in the employer contribution subaccount,
36 the account is deemed to be fully vested for purposes of withdrawal
37 under this section.
38 SECTION 9. IC 5-10.3-12-33 IS ADDED TO THE INDIANA
39 CODE AS A NEW SECTION TO READ AS FOLLOWS
40 [EFFECTIVE JULY 1, 2025]: Sec. 33. (a) This section applies
41 notwithstanding sections 20, 20.3, 20.5, and 31 of this chapter.
42 (b) An employer that participates in the fund may allow a
SB 250—LS 6769/DI 144 10
1 member who is fully vested in the employer contribution
2 subaccount under section 25(b) of this chapter to make an election
3 to participate in the fund.
4 (c) The following apply to an election made under subsection
5 (b):
6 (1) The election must be made:
7 (A) within a time; and
8 (B) in a form and manner;
9 approved by the board.
10 (2) An employee who makes an election:
11 (A) becomes a member of the fund; and
12 (B) is no longer a member of the plan;
13 on the date described in IC 5-10.3-7-1(h).
14 (3) The election is irrevocable.
15 (d) A member who does not make an election under subsection
16 (b) remains a member of the plan. The failure to make an election
17 under subsection (b) is irrevocable.
18 SECTION 10. IC 5-10.4-4-1, AS AMENDED BY P.L.104-2022,
19 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2025]: Sec. 1. (a) The members of the fund include:
21 (1) legally qualified and regularly employed teachers in the public
22 schools;
23 (2) persons employed by a governing body, who were qualified
24 before their election or appointment;
25 (3) legally qualified and regularly employed teachers at Ball State
26 University, Indiana State University, University of Southern
27 Indiana, and Vincennes University;
28 (4) legally qualified and regularly employed teachers in a state
29 educational institution whose teachers devote their entire time to
30 teaching;
31 (5) legally qualified and regularly employed teachers in state
32 benevolent, charitable, or correctional institutions;
33 (6) legally qualified and regularly employed teachers in an
34 experimental school in a state university who teach elementary or
35 high school students;
36 (7) as determined by the board, certain instructors serving in a
37 state educational institution extension division not covered by a
38 state retirement law;
39 (8) employees and officers of the department of education and of
40 the fund who were qualified before their election or appointment;
41 (9) a person who:
42 (A) is employed as a nurse appointed under IC 20-34-3-6 by a
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1 school corporation located in a city having a population of more
2 than sixty-nine thousand (69,000) and less than sixty-nine
3 thousand five hundred (69,500); and
4 (B) participated in the fund before December 31, 1991, in the
5 position described in clause (A); and
6 (10) persons who are employed by the fund.
7 (b) Teachers in any state institution who accept the benefits of a
8 state supported retirement benefit system comparable to the fund's
9 benefits may not come under the fund unless permitted by law or the
10 rules of the board.
11 (c) The members of the fund do not include substitute teachers who
12 have not obtained an associate degree or a baccalaureate degree.
13 (d) Except as provided in IC 5-10.4-8-18, the members of the fund
14 do not include individuals who participate in the teachers' defined
15 contribution plan under IC 5-10.4-8.
16 (e) An individual who makes an election to participate in the
17 fund under IC 5-10.4-8-18 becomes a member of the fund on the
18 date the board receives the election.
19 SECTION 11. IC 5-10.4-8-13, AS ADDED BY P.L.217-2017,
20 SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2025]: Sec. 13. (a) For purposes of this section, "member"
22 includes an individual who makes an election to participate in the
23 fund under section 18 of this chapter.
24 (a) (b) If a member dies:
25 (1) while in service in a position covered by the plan; or
26 (2) after terminating service in a position covered by the plan but
27 before withdrawing the member's account;
28 to the extent that the member is vested, the member's account shall be
29 paid to the beneficiary or beneficiaries designated by the member on
30 a form prescribed by the board. The amount paid must be valued as
31 provided in IC 5-10.2-2-3. The board shall invest the total amount in
32 the member's account in the stable value fund not later than thirty (30)
33 days after receiving notification of a member's death.
34 (b) (c) If there is no properly designated beneficiary, or if no
35 beneficiary survives the member, the member's account shall be paid
36 to:
37 (1) the surviving spouse of the member;
38 (2) if there is not a surviving spouse, the surviving dependent or
39 dependents of the member in equal shares; or
40 (3) if there is not a surviving spouse or dependent, the member's
41 estate.
42 (c) (d) The beneficiary or beneficiaries designated under subsection
SB 250—LS 6769/DI 144 12
1 (a) (b) or a survivor determined under subsection (b) (c) may elect to
2 have the member's account paid as:
3 (1) a lump sum;
4 (2) a direct rollover to another eligible retirement plan; or
5 (3) a monthly annuity in accordance with rules of the board.
6 A monthly annuity is an option only on or after the date the beneficiary
7 or survivor becomes sixty-two (62) years of age. The board shall
8 establish the forms of annuity by rule, in consultation with the board's
9 actuary. Further, The board may establish a minimum account balance
10 or a minimum monthly payment amount that is required in order for a
11 beneficiary or survivor to select the monthly annuity option.
12 SECTION 12. IC 5-10.4-8-18 IS ADDED TO THE INDIANA
13 CODE AS A NEW SECTION TO READ AS FOLLOWS
14 [EFFECTIVE JULY 1, 2025]: Sec. 18. (a) This section applies
15 notwithstanding sections 6 and 17 of this chapter.
16 (b) A member who is fully vested in the employer contribution
17 subaccount under section 11 of this chapter may make an election
18 to participate in the fund.
19 (c) The following apply to an election made under subsection
20 (b):
21 (1) The election must be made:
22 (A) within a time; and
23 (B) in a form and manner;
24 approved by the board.
25 (2) An employee who makes an election under subsection (b):
26 (A) becomes a member of the fund; and
27 (B) is no longer a member of the plan;
28 on the date described in IC 5-10.4-4-1(e).
29 (3) The election is irrevocable.
30 (d) A member who does not make an election under subsection
31 (b) remains a member of the plan. The failure to make an election
32 under subsection (b) is irrevocable.
33 SECTION 13. IC 5-11-20-6, AS ADDED BY P.L.129-2024,
34 SECTION 8 AND P.L.136-2024, SECTION 5, IS AMENDED TO
35 READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 6. (a) On or
36 before June 15 of each year, the system shall send a delinquency notice
37 to a delinquent political subdivision. The delinquency notice must
38 inform the delinquent political subdivision that: of the following:
39 (1) An employee retirement plan offered by the delinquent
40 political subdivision:
41 (A) received less than ninety-five percent (95%) of the
42 actuarially determined contribution for at least three (3) out of
SB 250—LS 6769/DI 144 13
1 the last five (5) immediately preceding fiscal year, years, as
2 determined by the system or its agent; or
3 (B) was less than fifty percent (50%) funded at any time during
4 the immediately preceding fiscal year, as determined by the
5 system or its agent. and
6 (2) That the delinquent political subdivision must take the steps
7 described in comply with subsection (b).
8 (b) After receiving the notice described in subsection (a), a political
9 subdivision shall make a presentation that includes a remediation plan
10 to the interim study committee on pension management oversight
11 (established by IC 2-5-1.3-4) regarding the delinquent employee
12 retirement plan described in subsection (a).
13 SECTION 14. An emergency is declared for this act.
SB 250—LS 6769/DI 144 14
COMMITTEE REPORT
Mr. President: The Senate Committee on Pensions and Labor, to
which was referred Senate Bill No. 250, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill be AMENDED as follows:
Page 14, line 1, delete "However, a delinquent".
Page 14, delete lines 2 through 4.
and when so amended that said bill do pass and be reassigned to the
Senate Committee on Appropriations.
(Reference is to SB 250 as introduced.)
ROGERS, Chairperson
Committee Vote: Yeas 11, Nays 0.
_____
COMMITTEE REPORT
Mr. President: The Senate Committee on Appropriations, to which
was referred Senate Bill No. 250, has had the same under consideration
and begs leave to report the same back to the Senate with the
recommendation that said bill be AMENDED as follows:
Page 4, delete line 42.
Page 5, delete lines 1 through 30.
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to SB 250 as printed January 30, 2025.)
MISHLER, Chairperson
Committee Vote: Yeas 10, Nays 1.
SB 250—LS 6769/DI 144