Introduced Version
SENATE BILL No. 388
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-8-8.
Synopsis: 1977 fund benefits. Increases the basic monthly pension
benefit payable to a member of the 1977 police officers' and
firefighters' pension and disability fund who retires after June 30, 2025,
with 20 years of service. Increases the contribution rate of fund
members.
Effective: July 1, 2025.
Rogers, Baldwin
January 13, 2025, read first time and referred to Committee on Pensions and Labor.
2025 IN 388—LS 6751/DI 153 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.
SENATE BILL No. 388
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 36-8-8-8, AS AMENDED BY P.L.92-2021,
2 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 8. (a) Each fund member shall contribute during
4 the period of the fund member's employment or for thirty-two (32)
5 years, whichever is shorter, an amount equal to six percent (6%) eight
6 and one-half percent (8.5%) of the salary of a first class patrolman or
7 firefighter. However, the employer may pay all or a part of the
8 contribution for the member. The amount of the contribution, other
9 than contributions paid on behalf of a member, shall be deducted each
10 pay period from each fund member's salary by the disbursing officer of
11 the employer. The employer shall send to the system board each year
12 on March 31, June 30, September 30, and December 31, for the
13 calendar quarters ending on those dates, or an alternate date established
14 by the rules of the system board, a certified list of fund members and
15 a warrant issued by the employer for the total amount deducted for fund
16 members' contributions.
17 (b) After December 31, 2011, an employer shall submit:
2025 IN 388—LS 6751/DI 153 2
1 (1) the list described in subsection (a) in a uniform format through
2 a secure connection over the Internet or through other electronic
3 means specified by the system board; and
4 (2) the contributions paid by or on behalf of a member under
5 subsection (a) by electronic funds transfer.
6 (c) Except as provided in section 7(n) or 7.2 of this chapter, if a fund
7 member ends the fund member's employment other than by death or
8 disability before the fund member completes twenty (20) years of
9 active service, the system board shall return to the fund member in a
10 lump sum the fund member's contributions plus interest at a rate
11 specified by rule by the system board. If the fund member returns to
12 service, the fund member is entitled to credit for the years of service for
13 which the fund member's contributions were refunded if the fund
14 member repays the amount refunded to the fund member plus interest
15 at a rate specified by rule by the system board in either a lump sum or
16 a series of payments determined by the system board.
17 SECTION 2. IC 36-8-8-11, AS AMENDED BY P.L.146-2019,
18 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2025]: Sec. 11. (a) Benefits paid under this section are subject
20 to section 2.5 of this chapter.
21 (b) This subsection applies to a fund member who retires before
22 July 1, 2019. Each fund member who qualifies for a retirement benefit
23 payment under section 10(b) of this chapter is entitled to receive a
24 monthly benefit equal to fifty percent (50%) of the monthly salary of
25 a first class patrolman or firefighter in the year the member ended the
26 member's active service plus:
27 (1) for a member who retires before January 1, 1986, two percent
28 (2%) of that salary for each full year of active service; or
29 (2) for a member who retires after December 31, 1985, one
30 percent (1%) of that salary for each six (6) months of active
31 service;
32 over twenty (20) years, to a maximum of twelve (12) years.
33 (c) This subsection applies to a fund member who retires after June
34 30, 2019. Each fund member who qualifies for a retirement benefit
35 payment under section 10(b) of this chapter is entitled to receive a
36 monthly benefit equal to fifty-two percent (52%) of the monthly salary
37 of a first class patrolman or firefighter in the year the member ended
38 the member's active service plus one percent (1%) of that salary for
39 each six (6) months of active service over twenty (20) years, to a
40 maximum of twelve (12) years.
41 (d) This subsection applies to a fund member who retires before
42 July 1, 2019. Each fund member who qualifies for a retirement benefit
2025 IN 388—LS 6751/DI 153 3
1 payment under section 10(c) of this chapter is entitled to receive a
2 monthly benefit equal to fifty percent (50%) of the monthly salary of
3 a first class patrolman or firefighter in the year the member ended the
4 member's active service plus one percent (1%) of that salary for each
5 six (6) months of active service over twenty (20) years, to a maximum
6 of twelve (12) years, all actuarially reduced for each month (if any) of
7 benefit payments prior to fifty-two (52) years of age, by a factor
8 established by the fund's actuary from time to time.
9 (e) This subsection applies to a fund member who retires after June
10 30, 2019. Each fund member who qualifies for a retirement benefit
11 payment under section 10(c) of this chapter is entitled to receive a
12 monthly benefit equal to fifty-two percent (52%) of the monthly salary
13 of a first class patrolman or firefighter in the year the member ended
14 the member's active service plus one percent (1%) of that salary for
15 each six (6) months of active service over twenty (20) years, to a
16 maximum of twelve (12) years, all actuarially reduced for each month
17 (if any) of benefit payments prior to fifty-two (52) years of age, by a
18 factor established by the fund's actuary from time to time.
19 (b) Each fund member who qualifies for a retirement benefit
20 payment under section 10(b) of this chapter is entitled to receive a
21 monthly benefit equal to the following:
22 (1) For a fund member who retires before July 1, 2019, fifty
23 percent (50%) of the monthly salary of a first class patrolman
24 or firefighter in the year the member ended the member's
25 active service plus:
26 (A) for a member who retires before January 1, 1986,
27 two percent (2%) of that salary for each full year of
28 active service; or
29 (B) for a member who retires after December 31, 1985,
30 one percent (1%) of that salary for each six (6) months
31 of active service;
32 over twenty (20) years, to a maximum of twelve (12) years.
33 (2) For a fund member who retires after June 30, 2019, and
34 before July 1, 2025, fifty-two percent (52%) of the monthly
35 salary of a first class patrolman or firefighter in the year the
36 member ended the member's active service plus one percent
37 (1%) of that salary for each six (6) months of active service
38 over twenty (20) years, to a maximum of twelve (12) years.
39 (3) For a fund member who retires after June 30, 2025,
40 fifty-five percent (55%) of the monthly salary of a first class
41 patrolman or firefighter in the year the member ended the
42 member's active service plus one and one-quarter percent
2025 IN 388—LS 6751/DI 153 4
1 (1.25%) of that salary for each six (6) months of active service
2 over twenty (20) years, to a maximum of twelve (12) years.
3 (c) Each fund member who qualifies for a retirement benefit
4 payment under section 10(c) of this chapter is entitled to receive a
5 monthly benefit equal to the following:
6 (1) For a fund member who retires before July 1, 2019, fifty
7 percent (50%) of the monthly salary of a first class patrolman
8 or firefighter in the year the member ended the member's
9 active service plus one percent (1%) of that salary for each six
10 (6) months of active service over twenty (20) years, to a
11 maximum of twelve (12) years, all actuarially reduced for
12 each month (if any) of benefit payments prior to fifty-two (52)
13 years of age, by a factor established by the fund's actuary
14 from time to time.
15 (2) For a fund member who retires after June 30, 2019, and
16 before July 1, 2025, fifty-two percent (52%) of the monthly
17 salary of a first class patrolman or firefighter in the year the
18 member ended the member's active service plus one percent
19 (1%) of that salary for each six (6) months of active service
20 over twenty (20) years, to a maximum of twelve (12) years, all
21 actuarially reduced for each month (if any) of benefit
22 payments prior to fifty-two (52) years of age, by a factor
23 established by the fund's actuary from time to time.
24 (3) For a fund member who retires after June 30, 2025,
25 fifty-five percent (55%) of the monthly salary of a first class
26 patrolman or firefighter in the year the member ended the
27 member's active service plus one and one-quarter percent
28 (1.25%) of that salary for each six (6) months of active service
29 over twenty (20) years, to a maximum of twelve (12) years, all
30 actuarially reduced for each month (if any) of benefit
31 payments prior to fifty-two (52) years of age, by a factor
32 established by the fund's actuary from time to time.
2025 IN 388—LS 6751/DI 153