*ES0388.1*
March 20, 2025
ENGROSSED
SENATE BILL No. 388
_____
DIGEST OF SB 388 (Updated March 19, 2025 2:15 pm - DI 140)
Citations Affected: IC 36-8.
Synopsis: 1977 pension and disability fund. 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. Provides that a municipality, a unit, an airport
authority, a school corporation, or a charter school may require certain
members of the public employees retirement fund to continue as
members of that fund instead of the 1977 police officers' and
firefighters' pension and disability fund.
Effective: Upon passage; July 1, 2025.
Rogers, Baldwin, Niezgodski,
Goode, Donato, Pol Jr.,
Randolph Lonnie M
(HOUSE SPONSOR — VANNATTER)
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, reported favorably — Do Pass.
February 17, 2025, read second time, amended, ordered engrossed.
February 18, 2025, engrossed.
February 20, 2025, read third time, passed. Yeas 49, nays 0.
HOUSE ACTION
March 3, 2025, read first time and referred to Committee on Employment, Labor and
Pensions.
March 20, 2025, reported — Do Pass. Referred to Committee on Ways and Means
pursuant to Rule 126.3.
ES 388—LS 6751/DI 153 March 20, 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.
ENGROSSED
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 36-8-8-3, AS AMENDED BY P.L.135-2024,
2 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 3. (a) If a town establishes a board of
4 metropolitan police commissioners, or if a town becomes a city, the
5 municipality shall participate in the 1977 fund and shall enroll all
6 full-time police officers and firefighters in the 1977 fund. However, if
7 a police officer or former marshal is a member of the public employees'
8 retirement fund, the police officer or former marshal may continue as
9 a member of that fund instead of the 1977 fund. Notwithstanding the
10 age requirements under section 7(a) of this chapter, a police officer or
11 former marshal employed by a municipality at the time the
12 municipality enters the 1977 fund under this section shall be a member
13 of the 1977 fund unless the municipality elects to require a police
14 officer or former marshal elects to continue as a member of the public
15 employees' retirement fund. A person may become a member of the
16 1977 fund under this subsection without meeting the age limitation
17 under section 7(a) of this chapter only if the person satisfies:
ES 388—LS 6751/DI 153 2
1 (1) any aptitude, physical agility, or physical and mental standards
2 established by a local board under IC 36-8-3.2; and
3 (2) the minimum standards that are:
4 (A) adopted by the system board under section 19 of this
5 chapter; and
6 (B) in effect on the date the person becomes a member of the
7 1977 fund.
8 Credit for prior service of a person who becomes a member of the 1977
9 fund under this subsection shall be determined under section 18 or 18.1
10 of this chapter. No service credit beyond that allowed under section 18
11 or 18.1 of this chapter may be recognized under the 1977 fund.
12 (b) If a unit did not establish a 1937 fund for its firefighters, the unit
13 may participate in the public employees' retirement fund or it may
14 participate in the 1977 fund. If a unit established a 1937 fund for its
15 firefighters, the unit is and shall remain a participant in the 1977 fund.
16 (c) A unit that:
17 (1) has not established a pension fund for its firefighters; or
18 (2) is participating in the public employees' retirement fund under
19 subsection (b);
20 may participate in the 1977 fund upon approval by the fiscal body,
21 notwithstanding IC 5-10.3-6-8. A unit that participates in the 1977 fund
22 under this subsection must comply with section 21 of this chapter.
23 However, if the unit may elect to require a police officer or firefighter
24 that is a member of the public employees' retirement fund the police
25 officer or firefighter may to continue as a member of that fund instead
26 of the 1977 fund.
27 (d) If a unit that participates in the 1977 fund provides longevity
28 increases, the amount of the longevity increase provided in a year must
29 be greater than or equal to the amount of the longevity increase
30 provided in the previous year.
31 (e) An airport authority may participate in the 1977 fund. An airport
32 authority that participates in the 1977 fund under this subsection must
33 comply with section 21 of this chapter. However, if the airport
34 authority may elect to require a police officer or firefighter that is a
35 member of the public employees' retirement fund the police officer or
36 firefighter may to continue as a member of that fund instead of the
37 1977 fund.
38 (f) A school corporation or charter school that:
39 (1) employs a school resource officer; or
40 (2) enters into a contract or memorandum of understanding with
41 a:
42 (A) local law enforcement agency;
ES 388—LS 6751/DI 153 3
1 (B) private entity; or
2 (C) nonprofit corporation;
3 to employ a school resource officer;
4 may participate in the 1977 fund. A school corporation or charter
5 school that participates in the 1977 fund under this subsection or
6 subsection (g) must comply with section 21.5 of this chapter. However,
7 if the school corporation or charter school may elect to require a
8 school resource officer that is a member of the public employees'
9 retirement fund the school resource officer may to continue as a
10 member of that fund instead of the 1977 fund.
11 (g) A school resource officer hired or rehired after June 30, 2024,
12 who is a member of the 1977 fund shall remain in the 1977 fund.
13 SECTION 2. IC 36-8-8-8, AS AMENDED BY P.L.92-2021,
14 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2025]: Sec. 8. (a) Each fund member shall contribute during
16 the period of the fund member's employment or for thirty-two (32)
17 years, whichever is shorter, an amount equal to six percent (6%) six
18 and one-half percent (6.5%) of the salary of a first class patrolman or
19 firefighter. However, the employer may pay all or a part of the
20 contribution for the member. The amount of the contribution, other
21 than contributions paid on behalf of a member, shall be deducted each
22 pay period from each fund member's salary by the disbursing officer of
23 the employer. The employer shall send to the system board each year
24 on March 31, June 30, September 30, and December 31, for the
25 calendar quarters ending on those dates, or an alternate date established
26 by the rules of the system board, a certified list of fund members and
27 a warrant issued by the employer for the total amount deducted for fund
28 members' contributions.
29 (b) After December 31, 2011, an employer shall submit:
30 (1) the list described in subsection (a) in a uniform format through
31 a secure connection over the Internet or through other electronic
32 means specified by the system board; and
33 (2) the contributions paid by or on behalf of a member under
34 subsection (a) by electronic funds transfer.
35 (c) Except as provided in section 7(n) or 7.2 of this chapter, if a fund
36 member ends the fund member's employment other than by death or
37 disability before the fund member completes twenty (20) years of
38 active service, the system board shall return to the fund member in a
39 lump sum the fund member's contributions plus interest at a rate
40 specified by rule by the system board. If the fund member returns to
41 service, the fund member is entitled to credit for the years of service for
42 which the fund member's contributions were refunded if the fund
ES 388—LS 6751/DI 153 4
1 member repays the amount refunded to the fund member plus interest
2 at a rate specified by rule by the system board in either a lump sum or
3 a series of payments determined by the system board.
4 SECTION 3. IC 36-8-8-11, AS AMENDED BY P.L.146-2019,
5 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2025]: Sec. 11. (a) Benefits paid under this section are subject
7 to section 2.5 of this chapter.
8 (b) This subsection applies to a fund member who retires before
9 July 1, 2019. Each fund member who qualifies for a retirement benefit
10 payment under section 10(b) of this chapter is entitled to receive a
11 monthly benefit equal to fifty percent (50%) of the monthly salary of
12 a first class patrolman or firefighter in the year the member ended the
13 member's active service plus:
14 (1) for a member who retires before January 1, 1986, two percent
15 (2%) of that salary for each full year of active service; or
16 (2) for a member who retires after December 31, 1985, one
17 percent (1%) of that salary for each six (6) months of active
18 service;
19 over twenty (20) years, to a maximum of twelve (12) years.
20 (c) This subsection applies to a fund member who retires after June
21 30, 2019. Each fund member who qualifies for a retirement benefit
22 payment under section 10(b) of this chapter is entitled to receive a
23 monthly benefit equal to fifty-two percent (52%) of the monthly salary
24 of a first class patrolman or firefighter in the year the member ended
25 the member's active service plus one percent (1%) of that salary for
26 each six (6) months of active service over twenty (20) years, to a
27 maximum of twelve (12) years.
28 (d) This subsection applies to a fund member who retires before
29 July 1, 2019. Each fund member who qualifies for a retirement benefit
30 payment under section 10(c) of this chapter is entitled to receive a
31 monthly benefit equal to fifty percent (50%) of the monthly salary of
32 a first class patrolman or firefighter in the year the member ended the
33 member's active service plus one percent (1%) of that salary for each
34 six (6) months of active service over twenty (20) years, to a maximum
35 of twelve (12) years, all actuarially reduced for each month (if any) of
36 benefit payments prior to fifty-two (52) years of age, by a factor
37 established by the fund's actuary from time to time.
38 (e) This subsection applies to a fund member who retires after June
39 30, 2019. Each fund member who qualifies for a retirement benefit
40 payment under section 10(c) of this chapter is entitled to receive a
41 monthly benefit equal to fifty-two percent (52%) of the monthly salary
42 of a first class patrolman or firefighter in the year the member ended
ES 388—LS 6751/DI 153 5
1 the member's active service plus one percent (1%) of that salary for
2 each six (6) months of active service over twenty (20) years, to a
3 maximum of twelve (12) years, all actuarially reduced for each month
4 (if any) of benefit payments prior to fifty-two (52) years of age, by a
5 factor established by the fund's actuary from time to time.
6 (b) Each fund member who qualifies for a retirement benefit
7 payment under section 10(b) of this chapter is entitled to receive a
8 monthly benefit equal to the following:
9 (1) For a fund member who retires before July 1, 2019, fifty
10 percent (50%) of the monthly salary of a first class patrolman
11 or firefighter in the year the member ended the member's
12 active service plus:
13 (A) for a member who retires before January 1, 1986,
14 two percent (2%) of that salary for each full year of
15 active service; or
16 (B) for a member who retires after December 31, 1985,
17 one percent (1%) of that salary for each six (6) months
18 of active service;
19 over twenty (20) years, to a maximum of twelve (12) years.
20 (2) For a fund member who retires after June 30, 2019, and
21 before July 1, 2025, fifty-two percent (52%) of the monthly
22 salary of a first class patrolman or firefighter in the year the
23 member ended the member's active service plus one percent
24 (1%) of that salary for each six (6) months of active service
25 over twenty (20) years, to a maximum of twelve (12) years.
26 (3) For a fund member who retires after June 30, 2025,
27 fifty-three percent (53%) of the monthly salary of a first class
28 patrolman or firefighter in the year the member ended the
29 member's active service plus one percent (1%) of that salary
30 for each six (6) months of active service over twenty (20)
31 years, to a maximum of twelve (12) years.
32 (c) Each fund member who qualifies for a retirement benefit
33 payment under section 10(c) of this chapter is entitled to receive a
34 monthly benefit equal to the following:
35 (1) For a fund member who retires before July 1, 2019, fifty
36 percent (50%) of the monthly salary of a first class patrolman
37 or firefighter in the year the member ended the member's
38 active service plus one percent (1%) of that salary for each six
39 (6) months of active service over twenty (20) years, to a
40 maximum of twelve (12) years, all actuarially reduced for
41 each month (if any) of benefit payments prior to fifty-two (52)
42 years of age, by a factor established by the fund's actuary
ES 388—LS 6751/DI 153 6
1 from time to time.
2 (2) For a fund member who retires after June 30, 2019, and
3 before July 1, 2025, fifty-two percent (52%) of the monthly
4 salary of a first class patrolman or firefighter in the year the
5 member ended the member's active service plus one percent
6 (1%) of that salary for each six (6) months of active service
7 over twenty (20) years, to a maximum of twelve (12) years, all
8 actuarially reduced for each month (if any) of benefit
9 payments prior to fifty-two (52) years of age, by a factor
10 established by the fund's actuary from time to time.
11 (3) For a fund member who retires after June 30, 2025,
12 fifty-three percent (53%) of the monthly salary of a first class
13 patrolman or firefighter in the year the member ended the
14 member's active service plus one percent (1%) of that salary
15 for each six (6) months of active service over twenty (20)
16 years, to a maximum of twelve (12) years, all actuarially
17 reduced for each month (if any) of benefit payments prior to
18 fifty-two (52) years of age, by a factor established by the
19 fund's actuary from time to time.
20 SECTION 4. An emergency is declared for this act.
ES 388—LS 6751/DI 153 7
COMMITTEE REPORT
Mr. President: The Senate Committee on Pensions and Labor, to
which was referred Senate Bill No. 388, 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 1, line 5, delete "eight".
Page 1, line 6, delete "and one-half percent (8.5%)" and insert "six
and one-half percent (6.5%)".
Page 3, line 40, delete "fifty-five percent (55%)" and insert
"fifty-three percent (53%)".
Page 3, line 42, delete "and one-quarter".
Page 4, line 1, delete "(1.25%)" and insert "(1%)".
Page 4, line 25, delete "fifty-five percent (55%)" and insert
"fifty-three percent (53%)".
Page 4, line 27, delete "and one-quarter".
Page 4, line 28, delete "(1.25%)" and insert "(1%)".
and when so amended that said bill do pass and be reassigned to the
Senate Committee on Appropriations.
(Reference is to SB 388 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. 388, has had the same under consideration
and begs leave to report the same back to the Senate with the
recommendation that said bill DO PASS.
(Reference is to SB 388 as printed January 30, 2025.)
MISHLER, Chairperson
Committee Vote: Yeas 12, Nays 0
ES 388—LS 6751/DI 153 8
SENATE MOTION
Mr. President: I move that Senate Bill 388 be amended to read as
follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 36-8-8-3, AS AMENDED BY P.L.135-2024,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. (a) If a town establishes a board of
metropolitan police commissioners, or if a town becomes a city, the
municipality shall participate in the 1977 fund and shall enroll all
full-time police officers and firefighters in the 1977 fund. However, if
a police officer or former marshal is a member of the public employees'
retirement fund, the police officer or former marshal may continue as
a member of that fund instead of the 1977 fund. Notwithstanding the
age requirements under section 7(a) of this chapter, a police officer or
former marshal employed by a municipality at the time the
municipality enters the 1977 fund under this section shall be a member
of the 1977 fund unless the municipality elects to require a police
officer or former marshal elects to continue as a member of the public
employees' retirement fund. A person may become a member of the
1977 fund under this subsection without meeting the age limitation
under section 7(a) of this chapter only if the person satisfies:
(1) any aptitude, physical agility, or physical and mental standards
established by a local board under IC 36-8-3.2; and
(2) the minimum standards that are:
(A) adopted by the system board under section 19 of this
chapter; and
(B) in effect on the date the person becomes a member of the
1977 fund.
Credit for prior service of a person who becomes a member of the 1977
fund under this subsection shall be determined under section 18 or 18.1
of this chapter. No service credit beyond that allowed under section 18
or 18.1 of this chapter may be recognized under the 1977 fund.
(b) If a unit did not establish a 1937 fund for its firefighters, the unit
may participate in the public employees' retirement fund or it may
participate in the 1977 fund. If a unit established a 1937 fund for its
firefighters, the unit is and shall remain a participant in the 1977 fund.
(c) A unit that:
(1) has not established a pension fund for its firefighters; or
(2) is participating in the public employees' retirement fund under
subsection (b);
ES 388—LS 6751/DI 153 9
may participate in the 1977 fund upon approval by the fiscal body,
notwithstanding IC 5-10.3-6-8. A unit that participates in the 1977 fund
under this subsection must comply with section 21 of this chapter.
However, if the unit may elect to require a police officer or firefighter
that is a member of the public employees' retirement fund the police
officer or firefighter may to continue as a member of that fund instead
of the 1977 fund.
(d) If a unit that participates in the 1977 fund provides longevity
increases, the amount of the longevity increase provided in a year must
be greater than or equal to the amount of the longevity increase
provided in the previous year.
(e) An airport authority may participate in the 1977 fund. An airport
authority that participates in the 1977 fund under this subsection must
comply with section 21 of this chapter. However, if the airport
authority may elect to require a police officer or firefighter that is a
member of the public employees' retirement fund the police officer or
firefighter may to continue as a member of that fund instead of the
1977 fund.
(f) A school corporation or charter school that:
(1) employs a school resource officer; or
(2) enters into a contract or memorandum of understanding with
a:
(A) local law enforcement agency;
(B) private entity; or
(C) nonprofit corporation;
to employ a school resource officer;
may participate in the 1977 fund. A school corporation or charter
school that participates in the 1977 fund under this subsection or
subsection (g) must comply with section 21.5 of this chapter. However,
if the school corporation or charter school may elect to require a
school resource officer that is a member of the public employees'
retirement fund the school resource officer may to continue as a
member of that fund instead of the 1977 fund.
(g) A school resource officer hired or rehired after June 30, 2024,
who is a member of the 1977 fund shall remain in the 1977 fund.".
Page 4, after line 32, begin a new paragraph and insert:
"SECTION 4. An emergency is declared for this act.".
Renumber all SECTIONS consecutively.
(Reference is to SB 388 as printed February 14, 2025.)
ROGERS
ES 388—LS 6751/DI 153 10
COMMITTEE REPORT
Mr. Speaker: Your Committee on Employment, Labor and Pensions,
to which was referred Senate Bill 388, has had the same under
consideration and begs leave to report the same back to the House with
the recommendation that said bill do pass.
(Reference is to SB 388 as reprinted February 18, 2025.)
VANNATTER
Committee Vote: Yeas 12, Nays 0
ES 388—LS 6751/DI 153