Indiana 2025 Regular Session

Indiana Senate Bill SB0388 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~ES0388~~.1
2		-	~~March 20, 2025~~
3		-	~~ENGROSSED~~
	1	+	SB0388.3
	2	+	Reprinted
	3	+	February 18, 2025
4	4		SENATE BILL No. 388
5	5		_____
6		-	DIGEST OF SB 388 (Updated ~~March 19~~, 2025 2:15 pm - DI ~~140~~)
	6	+	DIGEST OF SB 388 (Updated February 17, 2025 2:46 pm - DI 153)
7	7		Citations Affected: IC 36-8.
8	8		Synopsis: 1977 pension and disability fund. Increases the basic
9	9		monthly pension benefit payable to a member of the 1977 police
10	10		officers' and firefighters' pension and disability fund who retires after
11	11		June 30, 2025, with 20 years of service. Increases the contribution rate
12	12		of fund members. Provides that a municipality, a unit, an airport
13	13		authority, a school corporation, or a charter school may require certain
14	14		members of the public employees retirement fund to continue as
15	15		members of that fund instead of the 1977 police officers' and
16	16		firefighters' pension and disability fund.
17	17		Effective: Upon passage; July 1, 2025.
18	18		Rogers, Baldwin, Niezgodski,
19	19		Goode, Donato, Pol Jr.,
20	20		Randolph Lonnie M
21		-	(HOUSE SPONSOR — VANNATTER)
22	21		January 13, 2025, read first time and referred to Committee on Pensions and Labor.
23	22		January 29, 2025, amended, reported favorably — Do Pass; reassigned to Committee on
24	23		Appropriations.
25	24		February 13, 2025, reported favorably — Do Pass.
26	25		February 17, 2025, read second time, amended, ordered engrossed.
27		-	February 18, 2025, engrossed.
28		-	February 20, 2025, read third time, passed. Yeas 49, nays 0.
29		-	HOUSE ACTION
30		-	March 3, 2025, read first time and referred to Committee on Employment, Labor and
31		-	Pensions.
32		-	March 20, 2025, reported — Do Pass. Referred to Committee on Ways and Means
33		-	pursuant to Rule 126.3.
34		-	ES 388—LS 6751/DI 153 March 20, 2025
	26	+	SB 388—LS 6751/DI 153 Reprinted
	27	+	February 18, 2025
35	28		First Regular Session of the 124th General Assembly (2025)
36	29		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
37	30		Constitution) is being amended, the text of the existing provision will appear in this style type,
38	31		additions will appear in this style type, and deletions will appear in this style type.
39	32		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
40	33		provision adopted), the text of the new provision will appear in this style type. Also, the
41	34		word NEW will appear in that style type in the introductory clause of each SECTION that adds
42	35		a new provision to the Indiana Code or the Indiana Constitution.
43	36		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
44	37		between statutes enacted by the 2024 Regular Session of the General Assembly.
45		-	ENGROSSED
46	38		SENATE BILL No. 388
47	39		A BILL FOR AN ACT to amend the Indiana Code concerning
48	40		pensions.
49	41		Be it enacted by the General Assembly of the State of Indiana:
50	42		1 SECTION 1. IC 36-8-8-3, AS AMENDED BY P.L.135-2024,
51	43		2 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
52	44		3 UPON PASSAGE]: Sec. 3. (a) If a town establishes a board of
53	45		4 metropolitan police commissioners, or if a town becomes a city, the
54	46		5 municipality shall participate in the 1977 fund and shall enroll all
55	47		6 full-time police officers and firefighters in the 1977 fund. However, if
56	48		7 a police officer or former marshal is a member of the public employees'
57	49		8 retirement fund, the police officer or former marshal may continue as
58	50		9 a member of that fund instead of the 1977 fund. Notwithstanding the
59	51		10 age requirements under section 7(a) of this chapter, a police officer or
60	52		11 former marshal employed by a municipality at the time the
61	53		12 municipality enters the 1977 fund under this section shall be a member
62	54		13 of the 1977 fund unless the municipality elects to require a police
63	55		14 officer or former marshal elects to continue as a member of the public
64	56		15 employees' retirement fund. A person may become a member of the
65	57		16 1977 fund under this subsection without meeting the age limitation
66	58		17 under section 7(a) of this chapter only if the person satisfies:
67		-	ES 388—LS 6751/DI 153 2
	59	+	SB 388—LS 6751/DI 153 2
68	60		1 (1) any aptitude, physical agility, or physical and mental standards
69	61		2 established by a local board under IC 36-8-3.2; and
70	62		3 (2) the minimum standards that are:
71	63		4 (A) adopted by the system board under section 19 of this
72	64		5 chapter; and
73	65		6 (B) in effect on the date the person becomes a member of the
74	66		7 1977 fund.
75	67		8 Credit for prior service of a person who becomes a member of the 1977
76	68		9 fund under this subsection shall be determined under section 18 or 18.1
77	69		10 of this chapter. No service credit beyond that allowed under section 18
78	70		11 or 18.1 of this chapter may be recognized under the 1977 fund.
79	71		12 (b) If a unit did not establish a 1937 fund for its firefighters, the unit
80	72		13 may participate in the public employees' retirement fund or it may
81	73		14 participate in the 1977 fund. If a unit established a 1937 fund for its
82	74		15 firefighters, the unit is and shall remain a participant in the 1977 fund.
83	75		16 (c) A unit that:
84	76		17 (1) has not established a pension fund for its firefighters; or
85	77		18 (2) is participating in the public employees' retirement fund under
86	78		19 subsection (b);
87	79		20 may participate in the 1977 fund upon approval by the fiscal body,
88	80		21 notwithstanding IC 5-10.3-6-8. A unit that participates in the 1977 fund
89	81		22 under this subsection must comply with section 21 of this chapter.
90	82		23 However, if the unit may elect to require a police officer or firefighter
91	83		24 that is a member of the public employees' retirement fund the police
92	84		25 officer or firefighter may to continue as a member of that fund instead
93	85		26 of the 1977 fund.
94	86		27 (d) If a unit that participates in the 1977 fund provides longevity
95	87		28 increases, the amount of the longevity increase provided in a year must
96	88		29 be greater than or equal to the amount of the longevity increase
97	89		30 provided in the previous year.
98	90		31 (e) An airport authority may participate in the 1977 fund. An airport
99	91		32 authority that participates in the 1977 fund under this subsection must
100	92		33 comply with section 21 of this chapter. However, if the airport
101	93		34 authority may elect to require a police officer or firefighter that is a
102	94		35 member of the public employees' retirement fund the police officer or
103	95		36 firefighter may to continue as a member of that fund instead of the
104	96		37 1977 fund.
105	97		38 (f) A school corporation or charter school that:
106	98		39 (1) employs a school resource officer; or
107	99		40 (2) enters into a contract or memorandum of understanding with
108	100		41 a:
109	101		42 (A) local law enforcement agency;
110		-	ES 388—LS 6751/DI 153 3
	102	+	SB 388—LS 6751/DI 153 3
111	103		1 (B) private entity; or
112	104		2 (C) nonprofit corporation;
113	105		3 to employ a school resource officer;
114	106		4 may participate in the 1977 fund. A school corporation or charter
115	107		5 school that participates in the 1977 fund under this subsection or
116	108		6 subsection (g) must comply with section 21.5 of this chapter. However,
117	109		7 if the school corporation or charter school may elect to require a
118	110		8 school resource officer that is a member of the public employees'
119	111		9 retirement fund the school resource officer may to continue as a
120	112		10 member of that fund instead of the 1977 fund.
121	113		11 (g) A school resource officer hired or rehired after June 30, 2024,
122	114		12 who is a member of the 1977 fund shall remain in the 1977 fund.
123	115		13 SECTION 2. IC 36-8-8-8, AS AMENDED BY P.L.92-2021,
124	116		14 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
125	117		15 JULY 1, 2025]: Sec. 8. (a) Each fund member shall contribute during
126	118		16 the period of the fund member's employment or for thirty-two (32)
127	119		17 years, whichever is shorter, an amount equal to six percent (6%) six
128	120		18 and one-half percent (6.5%) of the salary of a first class patrolman or
129	121		19 firefighter. However, the employer may pay all or a part of the
130	122		20 contribution for the member. The amount of the contribution, other
131	123		21 than contributions paid on behalf of a member, shall be deducted each
132	124		22 pay period from each fund member's salary by the disbursing officer of
133	125		23 the employer. The employer shall send to the system board each year
134	126		24 on March 31, June 30, September 30, and December 31, for the
135	127		25 calendar quarters ending on those dates, or an alternate date established
136	128		26 by the rules of the system board, a certified list of fund members and
137	129		27 a warrant issued by the employer for the total amount deducted for fund
138	130		28 members' contributions.
139	131		29 (b) After December 31, 2011, an employer shall submit:
140	132		30 (1) the list described in subsection (a) in a uniform format through
141	133		31 a secure connection over the Internet or through other electronic
142	134		32 means specified by the system board; and
143	135		33 (2) the contributions paid by or on behalf of a member under
144	136		34 subsection (a) by electronic funds transfer.
145	137		35 (c) Except as provided in section 7(n) or 7.2 of this chapter, if a fund
146	138		36 member ends the fund member's employment other than by death or
147	139		37 disability before the fund member completes twenty (20) years of
148	140		38 active service, the system board shall return to the fund member in a
149	141		39 lump sum the fund member's contributions plus interest at a rate
150	142		40 specified by rule by the system board. If the fund member returns to
151	143		41 service, the fund member is entitled to credit for the years of service for
152	144		42 which the fund member's contributions were refunded if the fund
153		-	ES 388—LS 6751/DI 153 4
	145	+	SB 388—LS 6751/DI 153 4
154	146		1 member repays the amount refunded to the fund member plus interest
155	147		2 at a rate specified by rule by the system board in either a lump sum or
156	148		3 a series of payments determined by the system board.
157	149		4 SECTION 3. IC 36-8-8-11, AS AMENDED BY P.L.146-2019,
158	150		5 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
159	151		6 JULY 1, 2025]: Sec. 11. (a) Benefits paid under this section are subject
160	152		7 to section 2.5 of this chapter.
161	153		8 (b) This subsection applies to a fund member who retires before
162	154		9 July 1, 2019. Each fund member who qualifies for a retirement benefit
163	155		10 payment under section 10(b) of this chapter is entitled to receive a
164	156		11 monthly benefit equal to fifty percent (50%) of the monthly salary of
165	157		12 a first class patrolman or firefighter in the year the member ended the
166	158		13 member's active service plus:
167	159		14 (1) for a member who retires before January 1, 1986, two percent
168	160		15 (2%) of that salary for each full year of active service; or
169	161		16 (2) for a member who retires after December 31, 1985, one
170	162		17 percent (1%) of that salary for each six (6) months of active
171	163		18 service;
172	164		19 over twenty (20) years, to a maximum of twelve (12) years.
173	165		20 (c) This subsection applies to a fund member who retires after June
174	166		21 30, 2019. Each fund member who qualifies for a retirement benefit
175	167		22 payment under section 10(b) of this chapter is entitled to receive a
176	168		23 monthly benefit equal to fifty-two percent (52%) of the monthly salary
177	169		24 of a first class patrolman or firefighter in the year the member ended
178	170		25 the member's active service plus one percent (1%) of that salary for
179	171		26 each six (6) months of active service over twenty (20) years, to a
180	172		27 maximum of twelve (12) years.
181	173		28 (d) This subsection applies to a fund member who retires before
182	174		29 July 1, 2019. Each fund member who qualifies for a retirement benefit
183	175		30 payment under section 10(c) of this chapter is entitled to receive a
184	176		31 monthly benefit equal to fifty percent (50%) of the monthly salary of
185	177		32 a first class patrolman or firefighter in the year the member ended the
186	178		33 member's active service plus one percent (1%) of that salary for each
187	179		34 six (6) months of active service over twenty (20) years, to a maximum
188	180		35 of twelve (12) years, all actuarially reduced for each month (if any) of
189	181		36 benefit payments prior to fifty-two (52) years of age, by a factor
190	182		37 established by the fund's actuary from time to time.
191	183		38 (e) This subsection applies to a fund member who retires after June
192	184		39 30, 2019. Each fund member who qualifies for a retirement benefit
193	185		40 payment under section 10(c) of this chapter is entitled to receive a
194	186		41 monthly benefit equal to fifty-two percent (52%) of the monthly salary
195	187		42 of a first class patrolman or firefighter in the year the member ended
196		-	ES 388—LS 6751/DI 153 5
	188	+	SB 388—LS 6751/DI 153 5
197	189		1 the member's active service plus one percent (1%) of that salary for
198	190		2 each six (6) months of active service over twenty (20) years, to a
199	191		3 maximum of twelve (12) years, all actuarially reduced for each month
200	192		4 (if any) of benefit payments prior to fifty-two (52) years of age, by a
201	193		5 factor established by the fund's actuary from time to time.
202	194		6 (b) Each fund member who qualifies for a retirement benefit
203	195		7 payment under section 10(b) of this chapter is entitled to receive a
204	196		8 monthly benefit equal to the following:
205	197		9 (1) For a fund member who retires before July 1, 2019, fifty
206	198		10 percent (50%) of the monthly salary of a first class patrolman
207	199		11 or firefighter in the year the member ended the member's
208	200		12 active service plus:
209	201		13 (A) for a member who retires before January 1, 1986,
210	202		14 two percent (2%) of that salary for each full year of
211	203		15 active service; or
212	204		16 (B) for a member who retires after December 31, 1985,
213	205		17 one percent (1%) of that salary for each six (6) months
214	206		18 of active service;
215	207		19 over twenty (20) years, to a maximum of twelve (12) years.
216	208		20 (2) For a fund member who retires after June 30, 2019, and
217	209		21 before July 1, 2025, fifty-two percent (52%) of the monthly
218	210		22 salary of a first class patrolman or firefighter in the year the
219	211		23 member ended the member's active service plus one percent
220	212		24 (1%) of that salary for each six (6) months of active service
221	213		25 over twenty (20) years, to a maximum of twelve (12) years.
222	214		26 (3) For a fund member who retires after June 30, 2025,
223	215		27 fifty-three percent (53%) of the monthly salary of a first class
224	216		28 patrolman or firefighter in the year the member ended the
225	217		29 member's active service plus one percent (1%) of that salary
226	218		30 for each six (6) months of active service over twenty (20)
227	219		31 years, to a maximum of twelve (12) years.
228	220		32 (c) Each fund member who qualifies for a retirement benefit
229	221		33 payment under section 10(c) of this chapter is entitled to receive a
230	222		34 monthly benefit equal to the following:
231	223		35 (1) For a fund member who retires before July 1, 2019, fifty
232	224		36 percent (50%) of the monthly salary of a first class patrolman
233	225		37 or firefighter in the year the member ended the member's
234	226		38 active service plus one percent (1%) of that salary for each six
235	227		39 (6) months of active service over twenty (20) years, to a
236	228		40 maximum of twelve (12) years, all actuarially reduced for
237	229		41 each month (if any) of benefit payments prior to fifty-two (52)
238	230		42 years of age, by a factor established by the fund's actuary
239		-	ES 388—LS 6751/DI 153 6
	231	+	SB 388—LS 6751/DI 153 6
240	232		1 from time to time.
241	233		2 (2) For a fund member who retires after June 30, 2019, and
242	234		3 before July 1, 2025, fifty-two percent (52%) of the monthly
243	235		4 salary of a first class patrolman or firefighter in the year the
244	236		5 member ended the member's active service plus one percent
245	237		6 (1%) of that salary for each six (6) months of active service
246	238		7 over twenty (20) years, to a maximum of twelve (12) years, all
247	239		8 actuarially reduced for each month (if any) of benefit
248	240		9 payments prior to fifty-two (52) years of age, by a factor
249	241		10 established by the fund's actuary from time to time.
250	242		11 (3) For a fund member who retires after June 30, 2025,
251	243		12 fifty-three percent (53%) of the monthly salary of a first class
252	244		13 patrolman or firefighter in the year the member ended the
253	245		14 member's active service plus one percent (1%) of that salary
254	246		15 for each six (6) months of active service over twenty (20)
255	247		16 years, to a maximum of twelve (12) years, all actuarially
256	248		17 reduced for each month (if any) of benefit payments prior to
257	249		18 fifty-two (52) years of age, by a factor established by the
258	250		19 fund's actuary from time to time.
259	251		20 SECTION 4. An emergency is declared for this act.
260		-	ES 388—LS 6751/DI 153 7
	252	+	SB 388—LS 6751/DI 153 7
261	253		COMMITTEE REPORT
262	254		Mr. President: The Senate Committee on Pensions and Labor, to
263	255		which was referred Senate Bill No. 388, has had the same under
264	256		consideration and begs leave to report the same back to the Senate with
265	257		the recommendation that said bill be AMENDED as follows:
266	258		Page 1, line 5, delete "eight".
267	259		Page 1, line 6, delete "and one-half percent (8.5%)" and insert "six
268	260		and one-half percent (6.5%)".
269	261		Page 3, line 40, delete "fifty-five percent (55%)" and insert
270	262		"fifty-three percent (53%)".
271	263		Page 3, line 42, delete "and one-quarter".
272	264		Page 4, line 1, delete "(1.25%)" and insert "(1%)".
273	265		Page 4, line 25, delete "fifty-five percent (55%)" and insert
274	266		"fifty-three percent (53%)".
275	267		Page 4, line 27, delete "and one-quarter".
276	268		Page 4, line 28, delete "(1.25%)" and insert "(1%)".
277	269		and when so amended that said bill do pass and be reassigned to the
278	270		Senate Committee on Appropriations.
279	271		(Reference is to SB 388 as introduced.)
280	272		ROGERS, Chairperson
281	273		Committee Vote: Yeas 11, Nays 0.
282	274		_____
283	275		COMMITTEE REPORT
284	276		Mr. President: The Senate Committee on Appropriations, to which
285	277		was referred Senate Bill No. 388, has had the same under consideration
286	278		and begs leave to report the same back to the Senate with the
287	279		recommendation that said bill DO PASS.
288	280		(Reference is to SB 388 as printed January 30, 2025.)
289	281
290	282		MISHLER, Chairperson
291	283		Committee Vote: Yeas 12, Nays 0
292		-	ES 388—LS 6751/DI 153 8
	284	+	SB 388—LS 6751/DI 153 8
293	285		SENATE MOTION
294	286		Mr. President: I move that Senate Bill 388 be amended to read as
295	287		follows:
296	288		Page 1, between the enacting clause and line 1, begin a new
297	289		paragraph and insert:
298	290		"SECTION 1. IC 36-8-8-3, AS AMENDED BY P.L.135-2024,
299	291		SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
300	292		UPON PASSAGE]: Sec. 3. (a) If a town establishes a board of
301	293		metropolitan police commissioners, or if a town becomes a city, the
302	294		municipality shall participate in the 1977 fund and shall enroll all
303	295		full-time police officers and firefighters in the 1977 fund. However, if
304	296		a police officer or former marshal is a member of the public employees'
305	297		retirement fund, the police officer or former marshal may continue as
306	298		a member of that fund instead of the 1977 fund. Notwithstanding the
307	299		age requirements under section 7(a) of this chapter, a police officer or
308	300		former marshal employed by a municipality at the time the
309	301		municipality enters the 1977 fund under this section shall be a member
310	302		of the 1977 fund unless the municipality elects to require a police
311	303		officer or former marshal elects to continue as a member of the public
312	304		employees' retirement fund. A person may become a member of the
313	305		1977 fund under this subsection without meeting the age limitation
314	306		under section 7(a) of this chapter only if the person satisfies:
315	307		(1) any aptitude, physical agility, or physical and mental standards
316	308		established by a local board under IC 36-8-3.2; and
317	309		(2) the minimum standards that are:
318	310		(A) adopted by the system board under section 19 of this
319	311		chapter; and
320	312		(B) in effect on the date the person becomes a member of the
321	313		1977 fund.
322	314		Credit for prior service of a person who becomes a member of the 1977
323	315		fund under this subsection shall be determined under section 18 or 18.1
324	316		of this chapter. No service credit beyond that allowed under section 18
325	317		or 18.1 of this chapter may be recognized under the 1977 fund.
326	318		(b) If a unit did not establish a 1937 fund for its firefighters, the unit
327	319		may participate in the public employees' retirement fund or it may
328	320		participate in the 1977 fund. If a unit established a 1937 fund for its
329	321		firefighters, the unit is and shall remain a participant in the 1977 fund.
330	322		(c) A unit that:
331	323		(1) has not established a pension fund for its firefighters; or
332	324		(2) is participating in the public employees' retirement fund under
333	325		subsection (b);
334		-	ES 388—LS 6751/DI 153 9
	326	+	SB 388—LS 6751/DI 153 9
335	327		may participate in the 1977 fund upon approval by the fiscal body,
336	328		notwithstanding IC 5-10.3-6-8. A unit that participates in the 1977 fund
337	329		under this subsection must comply with section 21 of this chapter.
338	330		However, if the unit may elect to require a police officer or firefighter
339	331		that is a member of the public employees' retirement fund the police
340	332		officer or firefighter may to continue as a member of that fund instead
341	333		of the 1977 fund.
342	334		(d) If a unit that participates in the 1977 fund provides longevity
343	335		increases, the amount of the longevity increase provided in a year must
344	336		be greater than or equal to the amount of the longevity increase
345	337		provided in the previous year.
346	338		(e) An airport authority may participate in the 1977 fund. An airport
347	339		authority that participates in the 1977 fund under this subsection must
348	340		comply with section 21 of this chapter. However, if the airport
349	341		authority may elect to require a police officer or firefighter that is a
350	342		member of the public employees' retirement fund the police officer or
351	343		firefighter may to continue as a member of that fund instead of the
352	344		1977 fund.
353	345		(f) A school corporation or charter school that:
354	346		(1) employs a school resource officer; or
355	347		(2) enters into a contract or memorandum of understanding with
356	348		a:
357	349		(A) local law enforcement agency;
358	350		(B) private entity; or
359	351		(C) nonprofit corporation;
360	352		to employ a school resource officer;
361	353		may participate in the 1977 fund. A school corporation or charter
362	354		school that participates in the 1977 fund under this subsection or
363	355		subsection (g) must comply with section 21.5 of this chapter. However,
364	356		if the school corporation or charter school may elect to require a
365	357		school resource officer that is a member of the public employees'
366	358		retirement fund the school resource officer may to continue as a
367	359		member of that fund instead of the 1977 fund.
368	360		(g) A school resource officer hired or rehired after June 30, 2024,
369	361		who is a member of the 1977 fund shall remain in the 1977 fund.".
370	362		Page 4, after line 32, begin a new paragraph and insert:
371	363		"SECTION 4. An emergency is declared for this act.".
372	364		Renumber all SECTIONS consecutively.
373	365		(Reference is to SB 388 as printed February 14, 2025.)
374	366		ROGERS
375		-	ES 388—LS 6751/DI 153 10
376		-	COMMITTEE REPORT
377		-	Mr. Speaker: Your Committee on Employment, Labor and Pensions,
378		-	to which was referred Senate Bill 388, has had the same under
379		-	consideration and begs leave to report the same back to the House with
380		-	the recommendation that said bill do pass.
381		-	(Reference is to SB 388 as reprinted February 18, 2025.)
382		-	VANNATTER
383		-	Committee Vote: Yeas 12, Nays 0
384		-	ES 388—LS 6751/DI 153
	367	+	SB 388—LS 6751/DI 153