Indiana 2025 Regular Session

Indiana Senate Bill SB0416 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 416
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 5-10-8-8; IC 5-10.3-7; IC 5-10.5-2-2;
7	7	IC 33-39-7.
8	8	Synopsis: Public defender participation in PARF. Adds a person who
9	9	serves in one of the following positions on or after January 1, 2016, to
10	10	the prosecuting attorneys retirement fund (PARF): (1) The state public
11	11	defender or chief deputy state public defender employed by the state
12	12	public defender. (2) The executive director of the public defender
13	13	council of Indiana or the second highest paid staff person or a full-time
14	14	staff attorney employed by the public defender council of Indiana. (3)
15	15	The highest paid or the second highest paid staff person employed by
16	16	the Indiana commission on court appointed attorneys. (4) A chief
17	17	public defender or chief deputy public defender. Allows staff attorneys
18	18	of the prosecuting attorneys council of Indiana employed on or after
19	19	January 1, 2012, to participate in PARF. Changes the name of the
20	20	prosecuting attorneys retirement fund to the prosecuting attorneys and
21	21	public defenders retirement fund. Provides that after a participant has
22	22	contributed to PARF for 22 years, the state or county shall pay the
23	23	contributions to the fund for the participant. Provides that the
24	24	computation of benefits is based in part on the highest salary that was
25	25	paid to the participant before separation from service. Provides that 1%
26	26	shall be added to the percentage used to calculate benefits for each year
27	27	of service after 22 years. Provides that a reduced annual retirement
28	28	benefit equals the benefit that would be payable if the participant were
29	29	65 years of age reduced by 0.10% for each month before the
30	30	participant's sixty-fifth birthday. Provides for a cost of living
31	31	adjustment for participants of PARF based on increases to judge
32	32	salaries. Allows a participant to receive service credit in PARF for
33	33	more than one year and less than 10 years of service received by the
34	34	(Continued next page)
35	35	Effective: July 1, 2025.
36	36	Rogers
37	37	January 13, 2025, read first time and referred to Committee on Judiciary.
38	38	2025 IN 416—LS 7154/DI 153 Digest Continued
39	39	participant in the public employees' retirement fund under certain
40	40	conditions. Provides for the calculation of an offset of PARF benefits
41	41	payable to a participant from a participant's public employees'
42	42	retirement fund benefits based on the concurrent service and wages the
43	43	participant earned in both the public employees' retirement fund and
44	44	PARF. Makes corresponding changes.
45	45	2025 IN 416—LS 7154/DI 1532025 IN 416—LS 7154/DI 153 Introduced
46	46	First Regular Session of the 124th General Assembly (2025)
47	47	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
48	48	Constitution) is being amended, the text of the existing provision will appear in this style type,
49	49	additions will appear in this style type, and deletions will appear in this style type.
50	50	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
51	51	provision adopted), the text of the new provision will appear in this style type. Also, the
52	52	word NEW will appear in that style type in the introductory clause of each SECTION that adds
53	53	a new provision to the Indiana Code or the Indiana Constitution.
54	54	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
55	55	between statutes enacted by the 2024 Regular Session of the General Assembly.
56	56	SENATE BILL No. 416
57	57	A BILL FOR AN ACT to amend the Indiana Code concerning
58	58	pensions.
59	59	Be it enacted by the General Assembly of the State of Indiana:
60	60	1 SECTION 1. IC 5-10-8-8, AS AMENDED BY P.L.121-2017,
61	61	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
62	62	3 JULY 1, 2025]: Sec. 8. (a) This section applies only to the state and
63	63	4 employees who are not covered by a plan established under section 6
64	64	5 of this chapter.
65	65	6 (b) After June 30, 1986, the state shall provide a group health
66	66	7 insurance plan to each retired employee:
67	67	8 (1) whose retirement date is:
68	68	9 (A) after June 29, 1986, for a retired employee who was a
69	69	10 member of the field examiners' retirement fund;
70	70	11 (B) after May 31, 1986, for a retired employee who was a
71	71	12 member of the Indiana state teachers' retirement fund; or
72	72	13 (C) after June 30, 1986, for a retired employee not covered by
73	73	14 clause (A) or (B);
74	74	15 (2) who will have reached fifty-five (55) years of age on or before
75	75	2025 IN 416—LS 7154/DI 153 2
76	76	1 the employee's retirement date but who will not be eligible on that
77	77	2 date for Medicare coverage as prescribed by 42 U.S.C. 1395 et
78	78	3 seq.; and
79	79	4 (3) who:
80	80	5 (A) for an employee who retires before January 1, 2007, will
81	81	6 have completed:
82	82	7 (i) twenty (20) years of creditable employment with a public
83	83	8 employer on or before the employee's retirement date, ten
84	84	9 (10) years of which shall have been completed immediately
85	85	10 preceding the retirement; and
86	86	11 (ii) at least fifteen (15) years of participation in the
87	87	12 retirement plan of which the employee is a member on or
88	88	13 before the employee's retirement date; or
89	89	14 (B) for an employee who retires after December 31, 2006, will
90	90	15 have completed fifteen (15) years of creditable employment
91	91	16 with a public employer on or before the employee's retirement
92	92	17 date, ten (10) years of which shall have been completed
93	93	18 immediately preceding the retirement.
94	94	19 (c) The state shall provide a group health insurance program to each
95	95	20 retired employee:
96	96	21 (1) who is a retired judge;
97	97	22 (2) whose retirement date is after June 30, 1990;
98	98	23 (3) who is at least sixty-two (62) years of age;
99	99	24 (4) who is not eligible for Medicare coverage as prescribed by 42
100	100	25 U.S.C. 1395 et seq.; and
101	101	26 (5) who has at least eight (8) years of service credit as a
102	102	27 participant in the Indiana judges' retirement fund, with at least
103	103	28 eight (8) years of that service credit completed immediately
104	104	29 preceding the judge's retirement.
105	105	30 (d) The state shall provide a group health insurance program to each
106	106	31 retired employee:
107	107	32 (1) who is a retired participant under the prosecuting attorneys
108	108	33 and public defenders retirement fund;
109	109	34 (2) whose retirement date is after January 1, 1990;
110	110	35 (3) who is at least sixty-two (62) years of age;
111	111	36 (4) who is not eligible for Medicare coverage as prescribed by 42
112	112	37 U.S.C. 1395 et seq.; and
113	113	38 (5) who has at least ten (10) years of service credit as a participant
114	114	39 in the prosecuting attorneys and public defenders retirement
115	115	40 fund, with at least ten (10) years of that service credit completed
116	116	41 immediately preceding the participant's retirement.
117	117	42 (e) The state shall make available a group health insurance program
118	118	2025 IN 416—LS 7154/DI 153 3
119	119	1 to each former member of the general assembly or surviving spouse of
120	120	2 each former member, if the former member:
121	121	3 (1) is no longer a member of the general assembly;
122	122	4 (2) is not eligible for Medicare coverage as prescribed by 42
123	123	5 U.S.C. 1395 et seq. or, in the case of a surviving spouse, the
124	124	6 surviving spouse is not eligible for Medicare coverage as
125	125	7 prescribed by 42 U.S.C. 1395 et seq.; and
126	126	8 (3) has at least ten (10) years of service credit as a member in the
127	127	9 general assembly.
128	128	10 A former member or surviving spouse of a former member who obtains
129	129	11 insurance under this section is responsible for paying both the
130	130	12 employer and the employee share of the cost of the coverage.
131	131	13 (f) The group health insurance program required under subsections
132	132	14 (b) through (e) and subsection (k) must be equal to that offered active
133	133	15 employees. The retired employee may participate in the group health
134	134	16 insurance program if the retired employee pays an amount equal to the
135	135	17 employer's and the employee's premium for the group health insurance
136	136	18 for an active employee and if the retired employee within ninety (90)
137	137	19 days after the employee's retirement date files a written request for
138	138	20 insurance coverage with the employer. Except as provided in
139	139	21 subsection (l), the employer may elect to pay any part of the retired
140	140	22 employee's premium with respect to insurance coverage under this
141	141	23 chapter.
142	142	24 (g) Except as provided in subsection (j), a retired employee's
143	143	25 eligibility to continue insurance under this section ends when the
144	144	26 employee becomes eligible for Medicare coverage as prescribed by 42
145	145	27 U.S.C. 1395 et seq., or when the employer terminates the health
146	146	28 insurance program. A retired employee who is eligible for insurance
147	147	29 coverage under this section may elect to have the employee's spouse
148	148	30 covered under the health insurance program at the time the employee
149	149	31 retires. If a retired employee's spouse pays the amount the retired
150	150	32 employee would have been required to pay for coverage selected by the
151	151	33 spouse, the spouse's subsequent eligibility to continue insurance under
152	152	34 this section is not affected by the death of the retired employee. The
153	153	35 surviving spouse's eligibility ends on the earliest of the following:
154	154	36 (1) When the spouse becomes eligible for Medicare coverage as
155	155	37 prescribed by 42 U.S.C. 1395 et seq.
156	156	38 (2) When the employer terminates the health insurance program.
157	157	39 (3) Two (2) years after the date of the employee's death.
158	158	40 (4) The date of the spouse's remarriage.
159	159	41 (h) This subsection does not apply to an employee who is entitled
160	160	42 to group insurance coverage under IC 20-28-10-2(b). An employee
161	161	2025 IN 416—LS 7154/DI 153 4
162	162	1 who is on leave without pay is entitled to participate for ninety (90)
163	163	2 days in any health insurance program maintained by the employer for
164	164	3 active employees if the employee pays an amount equal to the total of
165	165	4 the employer's and the employee's premiums for the insurance.
166	166	5 (i) An employer may provide group health insurance for retired
167	167	6 employees or their spouses not covered by this section and may provide
168	168	7 group health insurance that contains provisions more favorable to
169	169	8 retired employees and their spouses than required by this section. A
170	170	9 public employer may provide group health insurance to an employee
171	171	10 who is on leave without pay for a longer period than required by
172	172	11 subsection (h).
173	173	12 (j) An employer may elect to permit former employees and their
174	174	13 spouses, including surviving spouses, to continue to participate in a
175	175	14 group health insurance program under this chapter after the former
176	176	15 employee (who is otherwise qualified under this chapter to participate
177	177	16 in a group insurance program) or spouse has become eligible for
178	178	17 Medicare coverage as prescribed by 42 U.S.C. 1395 et seq.
179	179	18 (k) The state shall provide a group health insurance program to each
180	180	19 retired employee:
181	181	20 (1) who was employed as a teacher in a state institution under:
182	182	21 (A) IC 11-10-5;
183	183	22 (B) IC 12-24-3;
184	184	23 (C) IC 16-33-3;
185	185	24 (D) IC 16-33-4;
186	186	25 (E) IC 20-21-2-1; or
187	187	26 (F) IC 20-22-2-1;
188	188	27 (2) who is at least fifty-five (55) years of age on or before the
189	189	28 employee's retirement date;
190	190	29 (3) who is not eligible for Medicare coverage as prescribed by 42
191	191	30 U.S.C. 1395 et seq.; and
192	192	31 (4) who:
193	193	32 (A) has at least fifteen (15) years of service credit as a
194	194	33 participant in the retirement fund of which the employee is a
195	195	34 member on or before the employee's retirement date; or
196	196	35 (B) completes at least ten (10) years of service credit as a
197	197	36 participant in the retirement fund of which the employee is a
198	198	37 member immediately before the employee's retirement.
199	199	38 (l) The president pro tempore of the senate and the speaker of the
200	200	39 house of representatives may not elect to pay any part of the premium
201	201	40 for insurance coverage under this chapter for a former member of the
202	202	41 general assembly or the spouse of a former member of the general
203	203	42 assembly whose last day of service as a member of the general
204	204	2025 IN 416—LS 7154/DI 153 5
205	205	1 assembly is after July 31, 2007.
206	206	2 (m) This subsection applies to a former member of the general
207	207	3 assembly:
208	208	4 (1) whose last day of service as a member of the general assembly
209	209	5 was before August 1, 2007;
210	210	6 (2) who, upon ceasing the service described in subdivision (1),
211	211	7 obtained group health insurance coverage as a retired employee
212	212	8 under this chapter;
213	213	9 (3) whose employer elected under subsection (f) to pay any part
214	214	10 of the retired employee premium for the group health insurance
215	215	11 coverage; and
216	216	12 (4) who, after December 31, 2016, is elected to any public office
217	217	13 through which the former member may obtain coverage under a
218	218	14 policy or contract for basic health care services (as defined in
219	219	15 IC 27-13-1-4).
220	220	16 The eligibility of the former member, and of any spouse, former
221	221	17 spouse, or dependent of the former member, to continue the group
222	222	18 health insurance coverage described in subdivision (2) ends, and an
223	223	19 election described in subdivision (3) is void, on the date on which the
224	224	20 former member takes office.
225	225	21 SECTION 2. IC 5-10.3-7-1, AS AMENDED BY P.L.92-2019,
226	226	22 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
227	227	23 JULY 1, 2025]: Sec. 1. (a) This section does not apply to:
228	228	24 (1) members of the general assembly; or
229	229	25 (2) employees covered by section 3 of this chapter.
230	230	26 (b) As used in this section, "employees of the state" includes:
231	231	27 (1) employees of the judicial circuits whose compensation is paid
232	232	28 from state funds;
233	233	29 (2) elected and appointed state officers;
234	234	30 (3) prosecuting attorneys and deputy prosecuting attorneys of the
235	235	31 judicial circuits, whose compensation is paid in whole or in part
236	236	32 from state funds, persons described in IC 33-39-7-8(a),
237	237	33 including participants in the prosecuting attorneys and public
238	238	34 defenders retirement fund established under IC 33-39-7;
239	239	35 (4) employees in the classified service;
240	240	36 (5) employees of any state department, institution, board,
241	241	37 commission, office, agency, court, or division of state government
242	242	38 receiving state appropriations and having the authority to certify
243	243	39 payrolls from appropriations or from a trust fund held by the
244	244	40 treasurer of state or by any department;
245	245	41 (6) employees of any state agency that is a body politic and
246	246	42 corporate;
247	247	2025 IN 416—LS 7154/DI 153 6
248	248	1 (7) except as provided under IC 5-10.5-7-4, employees of the
249	249	2 board of trustees of the Indiana public retirement system;
250	250	3 (8) persons who:
251	251	4 (A) are employed by the state;
252	252	5 (B) have been classified as federal employees by the United
253	253	6 States Secretary of Agriculture; and
254	254	7 (C) are excluded from coverage as federal employees by the
255	255	8 federal Social Security program under 42 U.S.C. 410;
256	256	9 (9) the directors and employees of county offices of family and
257	257	10 children; and
258	258	11 (10) members and employees of the state lottery commission.
259	259	12 (c) An employee of the state or of a participating political
260	260	13 subdivision who:
261	261	14 (1) became a full-time employee of the state or of a participating
262	262	15 political subdivision in a covered position; and
263	263	16 (2) had not become a member of the fund;
264	264	17 before April 1, 1988, shall on April 1, 1988, become a member of the
265	265	18 fund unless the employee is excluded from membership under section
266	266	19 2 of this chapter.
267	267	20 (d) Except as otherwise provided, any individual who becomes a
268	268	21 full-time employee of the state or of a participating political
269	269	22 subdivision in a covered position after March 31, 1988, becomes a
270	270	23 member of the fund on the date the individual's employment begins
271	271	24 unless the individual is excluded from membership under section 2 of
272	272	25 this chapter.
273	273	26 (e) An individual:
274	274	27 (1) who becomes a full-time employee of a political subdivision
275	275	28 in a covered position after June 30, 2015;
276	276	29 (2) who is employed by a political subdivision that has elected in
277	277	30 an ordinance or resolution adopted under IC 5-10.3-6-1 and
278	278	31 approved by the board to require an employee in the covered
279	279	32 position to become a member of the fund; and
280	280	33 (3) who is not excluded from membership under section 2 of this
281	281	34 chapter;
282	282	35 becomes a member of the fund on the date the individual's employment
283	283	36 begins.
284	284	37 (f) An individual:
285	285	38 (1) who becomes a full-time employee of a political subdivision
286	286	39 in a covered position after an ordinance or resolution described in
287	287	40 subdivision (2) that is adopted by the political subdivision has
288	288	41 been approved by the board;
289	289	42 (2) who is employed by a political subdivision that has elected in
290	290	2025 IN 416—LS 7154/DI 153 7
291	291	1 an ordinance or resolution adopted under IC 5-10.3-6-1 and
292	292	2 approved by the board:
293	293	3 (A) to allow an employee in the covered position to become a
294	294	4 member of the fund or a member of the public employees'
295	295	5 defined contribution plan at the discretion of the employee;
296	296	6 and
297	297	7 (B) to require an employee in a covered position to make an
298	298	8 election under IC 5-10.3-12-20.5 in order to become a member
299	299	9 of the plan;
300	300	10 (3) who does not make an election under IC 5-10.3-12-20.5 to
301	301	11 become a member of the public employees' defined contribution
302	302	12 plan; and
303	303	13 (4) who is not excluded from membership under section 2 of this
304	304	14 chapter;
305	305	15 becomes a member of the fund on the date the individual's employment
306	306	16 begins.
307	307	17 (g) An individual:
308	308	18 (1) who becomes a full-time employee of a political subdivision
309	309	19 in a covered position after an ordinance or resolution described in
310	310	20 subdivision (2) that is adopted by the political subdivision has
311	311	21 been approved by the board;
312	312	22 (2) who is employed by a political subdivision that has elected in
313	313	23 an ordinance or resolution adopted under IC 5-10.3-6-1 and
314	314	24 approved by the board:
315	315	25 (A) to allow an employee in the covered position to become a
316	316	26 member of the fund or the public employees' defined
317	317	27 contribution plan at the discretion of the employee; and
318	318	28 (B) to require an employee to make an election under section
319	319	29 1.1 of this chapter in order to become a member of the fund;
320	320	30 (3) who does make an election under section 1.1 of this chapter to
321	321	31 become a member of the fund; and
322	322	32 (4) who is not excluded from membership under section 2 of this
323	323	33 chapter;
324	324	34 becomes a member of the fund on the date the individual's employment
325	325	35 begins.
326	326	36 SECTION 3. IC 5-10.3-7-2, AS AMENDED BY P.L.198-2016,
327	327	37 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
328	328	38 JULY 1, 2025]: Sec. 2. The following employees may not be members
329	329	39 of the fund:
330	330	40 (1) Officials of a political subdivision elected by vote of the
331	331	41 people, unless the governing body specifically provides for the
332	332	42 participation of locally elected officials.
333	333	2025 IN 416—LS 7154/DI 153 8
334	334	1 (2) Employees occupying positions normally requiring
335	335	2 performance of service of less than six hundred (600) hours
336	336	3 during a year who:
337	337	4 (A) were hired before July 1, 1982; or
338	338	5 (B) are employed by a participating school corporation.
339	339	6 (3) Independent contractors or officers or employees paid wholly
340	340	7 on a fee basis.
341	341	8 (4) Employees who occupy positions that are covered by other
342	342	9 pension or retirement funds or plans, maintained in whole or in
343	343	10 part by appropriations by the state or a political subdivision,
344	344	11 except:
345	345	12 (A) the federal Social Security program; and
346	346	13 (B) the prosecuting attorneys and public defenders retirement
347	347	14 fund established by IC 33-39-7-9.
348	348	15 (5) Managers or employees of a license branch of the bureau of
349	349	16 motor vehicles commission, except those persons who may be
350	350	17 included as members under IC 9-14-10.
351	351	18 (6) Employees, except employees of a participating school
352	352	19 corporation, hired after June 30, 1982, occupying positions
353	353	20 normally requiring performance of service of less than one
354	354	21 thousand (1,000) hours during a year.
355	355	22 (7) Persons who:
356	356	23 (A) are employed by the state;
357	357	24 (B) have been classified as federal employees by the Secretary
358	358	25 of Agriculture of the United States; and
359	359	26 (C) are covered by the federal Social Security program as
360	360	27 federal employees under 42 U.S.C. 410.
361	361	28 SECTION 4. IC 5-10.5-2-2, AS AMENDED BY P.L.27-2019,
362	362	29 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
363	363	30 JULY 1, 2025]: Sec. 2. The system consists of the following public
364	364	31 pension or retirement funds:
365	365	32 (1) The public employees' retirement fund established under
366	366	33 IC 5-10.2 and IC 5-10.3.
367	367	34 (2) The public employees' defined contribution plan established
368	368	35 under IC 5-10.3-12.
369	369	36 (3) The Indiana state teachers' retirement fund established under
370	370	37 IC 5-10.2 and IC 5-10.4.
371	371	38 (4) The teachers' defined contribution plan established under
372	372	39 IC 5-10.4-8.
373	373	40 (5) The Indiana judges' retirement fund established under
374	374	41 IC 33-38-6.
375	375	42 (6) The prosecuting attorneys and public defenders retirement
376	376	2025 IN 416—LS 7154/DI 153 9
377	377	1 fund established under IC 33-39-7.
378	378	2 (7) The state excise police, gaming agent, gaming control officer,
379	379	3 and conservation enforcement officers' retirement fund
380	380	4 established under IC 5-10-5.5.
381	381	5 (8) The 1977 police officers' and firefighters' pension and
382	382	6 disability fund established under IC 36-8-8.
383	383	7 (9) The legislators' retirement system established under IC 2-3.5.
384	384	8 (10) The pension relief fund established under IC 5-10.3-11.
385	385	9 (11) The special death benefit fund established under IC 5-10-9.8.
386	386	10 SECTION 5. IC 33-39-7-1 IS AMENDED TO READ AS
387	387	11 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1. This chapter applies
388	388	12 only to:
389	389	13 (1) an individual who serves as a prosecuting attorney or chief
390	390	14 deputy prosecuting attorney on or after January 1, 1990; and
391	391	15 (2) a participant employed in a position described in section
392	392	16 8(a)(2) or 8(a)(3) of this chapter who serves in the position after
393	393	17 June 30, 1995;
394	394	18 (3) a participant employed in a position described in section
395	395	19 8(a)(4) of this chapter on or after January 1, 2012; and
396	396	20 (4) a participant employed in a position described in section
397	397	21 8(a)(5) through 8(a)(8) of this chapter who serves in the
398	398	22 position on or after January 1, 2016.
399	399	23 SECTION 6. IC 33-39-7-3.3 IS ADDED TO THE INDIANA CODE
400	400	24 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
401	401	25 1, 2025]: Sec. 3.3. As used in this chapter, "chief deputy public
402	402	26 defender" means the one (1) individual who is:
403	403	27 (1) appointed to assist the chief public defender in carrying
404	404	28 out the chief public defender's management activities; and
405	405	29 (2) paid a salary in accordance with standards adopted by the
406	406	30 commission.
407	407	31 The term does not include a person who engages in the private
408	408	32 practice of law.
409	409	33 SECTION 7. IC 33-39-7-3.5 IS ADDED TO THE INDIANA CODE
410	410	34 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
411	411	35 1, 2025]: Sec. 3.5. As used in this chapter, "chief public defender"
412	412	36 means the chief executive officer of a county public defender
413	413	37 agency who is:
414	414	38 (1) responsible for the overall management of the agency,
415	415	39 including daily administration, personnel, training, caseload
416	416	40 management, ethics, and quality control; and
417	417	41 (2) paid a salary in accordance with standards adopted by the
418	418	42 commission.
419	419	2025 IN 416—LS 7154/DI 153 10
420	420	1 The term does not include a person who engages in the private
421	421	2 practice of law.
422	422	3 SECTION 8. IC 33-39-7-3.7 IS ADDED TO THE INDIANA CODE
423	423	4 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
424	424	5 1, 2025]: Sec. 3.7. As used in this chapter, "commission" refers to
425	425	6 the Indiana commission on court appointed attorneys established
426	426	7 by IC 33-40-5-2.
427	427	8 SECTION 9. IC 33-39-7-5 IS AMENDED TO READ AS
428	428	9 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 5. As used in this
429	429	10 chapter, "fund" refers to the prosecuting attorneys and public
430	430	11 defenders retirement fund established by this chapter.
431	431	12 SECTION 10. IC 33-39-7-7 IS AMENDED TO READ AS
432	432	13 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 7. As used in this
433	433	14 chapter, "salary" means the salary paid to a participant by the state and
434	434	15 by a county or counties, determined without regard to any salary
435	435	16 reduction agreement established under Section 125 of the Internal
436	436	17 Revenue Code. The term does not include an amount paid to a
437	437	18 participant any additional salary provided by a county or counties
438	438	19 under IC 36-2-5-14 or IC 36-3-6-3(c).
439	439	20 SECTION 11. IC 33-39-7-8, AS AMENDED BY P.L.57-2014,
440	440	21 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
441	441	22 JULY 1, 2025]: Sec. 8. (a) As used in this chapter, "services" means
442	442	23 the sum of all periods in which a person is employed as:
443	443	24 (1) a prosecuting attorney or chief deputy prosecuting attorney;
444	444	25 (2) any other deputy prosecuting attorney who is:
445	445	26 (A) appointed under IC 33-39-6-2; and
446	446	27 (B) paid by the state from the state general fund; or
447	447	28 (3) the executive director or the assistant executive director of the
448	448	29 prosecuting attorneys council of Indiana;
449	449	30 (4) a staff attorney of the prosecuting attorneys council of
450	450	31 Indiana;
451	451	32 (5) the state public defender appointed under IC 33-40-1-1 or
452	452	33 chief deputy state public defender employed by the state
453	453	34 public defender;
454	454	35 (6) the executive director of the public defender council of
455	455	36 Indiana or the second highest paid staff person or a full-time
456	456	37 staff attorney employed by the public defender council of
457	457	38 Indiana;
458	458	39 (7) the highest paid or the second highest paid staff person
459	459	40 employed by the commission; or
460	460	41 (8) a chief public defender or chief deputy public defender.
461	461	42 If an individual is elected or appointed to a position described in
462	462	2025 IN 416—LS 7154/DI 153 11
463	463	1 subdivisions (1) through (3) and serves one (1) or more terms or part
464	464	2 of a term, then retires from office or otherwise separates from service,
465	465	3 but at a later period or periods is appointed or elected and serves in a
466	466	4 position described in subdivisions (1) through (3), the individual shall
467	467	5 pay into the fund during all the periods that the individual serves in that
468	468	6 position, except as otherwise provided in this chapter, whether the
469	469	7 periods are connected or disconnected. In addition, the term includes
470	470	8 any period of service, after December 31, 2015, in the public
471	471	9 employees' retirement fund (IC 5-10.2 and IC 5-10.3) credited to
472	472	10 a person described in subdivisions (5) through (8) while serving in
473	473	11 a position described in subdivisions (5) through (8).
474	474	12 (b) A senior prosecuting attorney appointed under IC 33-39-10-1 is
475	475	13 not required to pay into the fund during any period of service as a
476	476	14 senior prosecuting attorney.
477	477	15 SECTION 12. IC 33-39-7-9 IS AMENDED TO READ AS
478	478	16 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 9. The prosecuting
479	479	17 attorneys and public defenders retirement fund is established. The
480	480	18 fund consists of the following:
481	481	19 (1) Each participant's contributions to the fund.
482	482	20 (2) All gifts, grants, devises, and bequests in money, property, or
483	483	21 other form made to the fund.
484	484	22 (3) All interest on investments or on deposits of the funds.
485	485	23 (4) A contribution or payment to the fund made in a manner
486	486	24 provided by the general assembly.
487	487	25 SECTION 13. IC 33-39-7-12, AS AMENDED BY P.L.9-2024,
488	488	26 SECTION 521, IS AMENDED TO READ AS FOLLOWS
489	489	27 [EFFECTIVE JULY 1, 2025]: Sec. 12. (a) Except as otherwise
490	490	28 provided in this section, each participant shall make contributions to
491	491	29 the fund as follows:
492	492	30 (1) A participant described in section 8(a)(1) of this chapter shall
493	493	31 make contributions of six percent (6%) of each payment of salary
494	494	32 received for services after December 31, 1989.
495	495	33 (2) A participant described in section 8(a)(2) or 8(a)(3) of this
496	496	34 chapter shall make contributions of six percent (6%) of each
497	497	35 payment of salary received for services after June 30, 1994.
498	498	36 (3) A participant described in section 8(a)(4) through 8(a)(8)
499	499	37 of this chapter shall make contributions to the fund of six
500	500	38 percent (6%) of each payment of salary received for services
501	501	39 on or after July 1, 2025.
502	502	40 (b) A participant's contributions shall be deducted from the
503	503	41 participant's monthly salary for the initial twenty-two (22) years by
504	504	42 the:
505	505	2025 IN 416—LS 7154/DI 153 12
506	506	1 (1) state comptroller and credited to the fund; or
507	507	2 (2) county auditor and transferred to the auditor of state to be
508	508	3 credited to the fund;
509	509	4 whichever is applicable.
510	510	5 (b) (c) The state or county may pay the contributions for a
511	511	6 participant. The state or county may elect to pay the contribution for
512	512	7 the participant as a pickup under Section 414(h) of the Internal
513	513	8 Revenue Code.
514	514	9 (c) (d) After a participant has contributed to the fund as provided in
515	515	10 subsection (a) for twenty-two (22) years:
516	516	11 (1) the participant is not required to make additional contributions
517	517	12 to the fund; and
518	518	13 (2) the state or county, whichever is applicable, shall pay the
519	519	14 contributions to the fund for the participant.
520	520	15 (d) (e) After December 31, 2011, The state comptroller shall submit
521	521	16 the contributions paid by or on behalf of a participant under this section
522	522	17 by electronic funds transfer in accordance with section 12.5 of this
523	523	18 chapter.
524	524	19 SECTION 14. IC 33-39-7-12.5, AS ADDED BY P.L.13-2011,
525	525	20 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
526	526	21 JULY 1, 2025]: Sec. 12.5. (a) This section applies to reports, records,
527	527	22 and contributions submitted after December 31, 2011, under this
528	528	23 chapter.
529	529	24 (b) As used in this section, "electronic funds transfer" has the
530	530	25 meaning set forth in IC 4-8.1-2-7(f).
531	531	26 (c) The state and a county auditor shall submit through the use of
532	532	27 electronic funds transfer contributions paid by or on behalf of a
533	533	28 participant under section 12 of this chapter.
534	534	29 (d) The state and a county auditor shall submit in a uniform format
535	535	30 through a secure connection over the Internet or through other
536	536	31 electronic means specified by the board the reports and records
537	537	32 required by the board under this chapter.
538	538	33 (e) The board shall establish by rule the due dates for all reports,
539	539	34 records, and contributions required under this chapter.
540	540	35 SECTION 15. IC 33-39-7-16, AS AMENDED BY P.L.27-2019,
541	541	36 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
542	542	37 JULY 1, 2025]: Sec. 16. (a) This section does not apply to a participant
543	543	38 who becomes permanently disabled, as described in section 17 of this
544	544	39 chapter.
545	545	40 (b) A participant who:
546	546	41 (1) applies for a retirement benefit; and
547	547	42 (2) is at least:
548	548	2025 IN 416—LS 7154/DI 153 13
549	549	1 (A) sixty-five (65) years of age; or
550	550	2 (B) fifty-five (55) years of age and the participant's age in
551	551	3 years plus the participant's years of service is at least
552	552	4 eighty-five (85);
553	553	5 is entitled to an annual retirement benefit as calculated in subsection
554	554	6 (c).
555	555	7 (c) Except as provided in subsections (d), (e), and (f), the amount of
556	556	8 the annual retirement benefit to which a participant described in
557	557	9 subsection (b) is entitled equals the product of:
558	558	10 (1) the highest annual salary that was paid to the participant
559	559	11 before separation from service; multiplied by
560	560	12 (2) the percentage prescribed in the following table:
561	561	13 Participant's Years Percentage
562	562	14 of Service
563	563	15 Less than 8 0
564	564	16 8 24%
565	565	17 9 27%
566	566	18 10 30%
567	567	19 11 33%
568	568	20 12 50%
569	569	21 13 51%
570	570	22 14 52%
571	571	23 15 53%
572	572	24 16 54%
573	573	25 17 55%
574	574	26 18 56%
575	575	27 19 57%
576	576	28 20 58%
577	577	29 21 59%
578	578	30 22 or more 60%
579	579	31 One percent (1%) shall be added to the percentage prescribed
580	580	32 under subdivision (2) for each year of service completed after
581	581	33 twenty-two (22) years by a participant who serves in a position
582	582	34 described in section 8(a) of this chapter after June 30, 2025. If a
583	583	35 participant has a partial year of service in addition to at least eight (8)
584	584	36 full years of service, an additional percentage is calculated under this
585	585	37 subsection by prorating between the applicable percentages, based on
586	586	38 the number of months in the partial year of service.
587	587	39 (d) Except as provided in subsections (e) and (f), and section
588	588	40 19(c)(2)(B) of this chapter, a participant who:
589	589	41 (1) applies for a retirement benefit; and
590	590	42 (2) is not described in subsection (b);
591	591	2025 IN 416—LS 7154/DI 153 14
592	592	1 is entitled to receive a reduced annual retirement benefit that equals the
593	593	2 benefit that would be payable if the participant were sixty-five (65)
594	594	3 years of age reduced by one-fourth percent (0.25%) ten-hundredths
595	595	4 percent (0.10%) for each month that the participant's age at retirement
596	596	5 precedes the participant's sixty-fifth birthday.
597	597	6 (e) Except as provided in subsection (f), benefits payable to a costs
598	598	7 from the prosecuting attorneys and public defenders fund benefits
599	599	8 payable to a participant under this section are to be offset by the
600	600	9 amount of public employees' retirement fund benefits calculated
601	601	10 based on the amount of concurrent service and wages the
602	602	11 participant earned in both the public employees' retirement fund
603	603	12 and the prosecuting attorneys and public defenders fund. The
604	604	13 concurrent public employees' retirement fund service and wages
605	605	14 may not be used in any calculation of a separate public employees'
606	606	15 retirement fund retirement benefit. The calculation and offset shall
607	607	16 be made regardless of whether the participant has vested in a
608	608	17 public employees' retirement fund pension benefit. Benefits
609	609	18 payable to a participant under this section are not reduced by
610	610	19 annuity payments made to the participant from the public
611	611	20 employees' retirement fund or by postretirement increases to the
612	612	21 pension, if any, that the participant is receiving from the public
613	613	22 employees' retirement fund. participant under this section are
614	614	23 reduced by the pension, if any, that:
615	615	24 (1) the participant is receiving from the public employees'
616	616	25 retirement fund, if the participant is receiving a pension from the
617	617	26 public employees' retirement fund on the date of the participant's
618	618	27 retirement from the prosecuting attorneys retirement fund; or
619	619	28 (2) would be payable to the participant from the public employees'
620	620	29 retirement fund if the participant had retired from the public
621	621	30 employees' retirement fund on the date of the participant's
622	622	31 retirement from the prosecuting attorneys retirement fund, if the
623	623	32 participant is not receiving a pension from the public employees'
624	624	33 retirement fund on the date of the participant's retirement from the
625	625	34 prosecuting attorneys retirement fund.
626	626	35 Benefits payable to a participant under this section are not reduced by
627	627	36 annuity payments made to the participant from the public employees'
628	628	37 retirement fund or by postretirement increases to the pension, if any,
629	629	38 that the participant is receiving from the public employees' retirement
630	630	39 fund. A participant to whom subdivision (2) applies is entitled to a
631	631	40 recalculation of the benefits payable to the participant under this
632	632	41 section after the participant has begun receiving a pension from the
633	633	42 public employees' retirement fund based on the actual amount of the
634	634	2025 IN 416—LS 7154/DI 153 15
635	635	1 pension that the participant is receiving from the public employees'
636	636	2 retirement fund.
637	637	3 (f) This subsection applies to a participant who is a member of the
638	638	4 public employees' defined contribution plan established by
639	639	5 IC 5-10.3-12-18. Benefits payable to a participant under this section are
640	640	6 reduced by the pension portion of the retirement benefit, if any, that
641	641	7 would be payable to the participant from the public employees'
642	642	8 retirement fund if the participant:
643	643	9 (1) had not made an election under IC 5-10.3-12-20 to become a
644	644	10 member of the public employees' defined contribution plan; and
645	645	11 (2) had retired from the public employees' retirement fund on the
646	646	12 date of the participant's retirement from the prosecuting attorneys
647	647	13 and public defenders retirement fund.
648	648	14 (g) If benefits payable from the public employees' retirement fund
649	649	15 exceed the benefits payable from the prosecuting attorneys retirement
650	650	16 fund, the participant is entitled at retirement to withdraw from the
651	651	17 prosecuting attorneys retirement fund the total sum contributed plus
652	652	18 interest at a rate specified by rule by the board.
653	653	19 SECTION 16. IC 33-39-7-16.5 IS ADDED TO THE INDIANA
654	654	20 CODE AS A NEW SECTION TO READ AS FOLLOWS
655	655	21 [EFFECTIVE JULY 1, 2025]: Sec. 16.5. If a salary increase is
656	656	22 provided in a particular state fiscal year under IC 33-38-5-8.1, the
657	657	23 monthly benefit payable under this chapter to a participant shall
658	658	24 be increased by the same percentage by which salaries are
659	659	25 increased under IC 33-38-5-8.1(b) in that state fiscal year. The
660	660	26 percentage increase shall be applied to the monthly benefit
661	661	27 (including any previous increases to the monthly benefit received
662	662	28 under this section or under any other provision) received by the
663	663	29 participant as of June 30 of the immediately preceding state fiscal
664	664	30 year. The percentage increase to the monthly benefit takes effect
665	665	31 at the same time that the salary increase under IC 33-38-5-8.1
666	666	32 takes effect.
667	667	33 SECTION 17. IC 33-39-7-18, AS AMENDED BY P.L.27-2019,
668	668	34 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
669	669	35 JULY 1, 2025]: Sec. 18. (a) Except as provided in subsections (b) and
670	670	36 (c), a participant who becomes permanently disabled, as described in
671	671	37 section 17 of this chapter, is entitled to an annual benefit equal to the
672	672	38 product of:
673	673	39 (1) the annual highest salary that was paid to the participant at the
674	674	40 time of before separation from service; multiplied by
675	675	41 (2) the percentage prescribed in the following table:
676	676	42 Participant's Years Percentage
677	677	2025 IN 416—LS 7154/DI 153 16
678	678	1 of Service
679	679	2 0-12 50%
680	680	3 13 51%
681	681	4 14 52%
682	682	5 15 53%
683	683	6 16 54%
684	684	7 17 55%
685	685	8 18 56%
686	686	9 19 57%
687	687	10 20 58%
688	688	11 21 59%
689	689	12 22 or more 60%
690	690	13 One percent (1%) shall be added to the percentage prescribed
691	691	14 under subdivision (2) for each year of service completed after
692	692	15 twenty-two (22) years by a participant who serves in a position
693	693	16 described in section 8(a) of this chapter after June 30, 2025. If a
694	694	17 participant has a partial year of service in addition to at least ten (10)
695	695	18 eight (8) years of service, an additional percentage is calculated under
696	696	19 this subsection by prorating between the applicable percentages, based
697	697	20 on the number of months in the partial year of service.
698	698	21 (b) Except as provided in subsection (c), benefits payable to a
699	699	22 participant under this section are reduced by the amounts, if any, that
700	700	23 are payable to the participant from the public employees' retirement
701	701	24 fund for time served in a position described in section 8(a) of this
702	702	25 chapter.
703	703	26 (c) This subsection applies to a participant who is a member of the
704	704	27 public employees' defined contribution plan established by
705	705	28 IC 5-10.3-12-18. Benefits payable to a participant under this section are
706	706	29 reduced by the pension portion of the retirement benefit, if any, that
707	707	30 would be payable to the participant from the public employees'
708	708	31 retirement fund if the participant had not made an election under
709	709	32 IC 5-10.3-12-20 to become a member of the public employees' defined
710	710	33 contribution plan.
711	711	34 SECTION 18. IC 33-39-7-27 IS ADDED TO THE INDIANA
712	712	35 CODE AS A NEW SECTION TO READ AS FOLLOWS
713	713	36 [EFFECTIVE JULY 1, 2025]: Sec. 27. (a) This section applies to a
714	714	37 person who:
715	715	38 (1) is serving in a position described in section 8(a) of this
716	716	39 chapter;
717	717	40 (2) was a member of the public employees' retirement fund
718	718	41 while employed in a position not described in section 8(a) of
719	719	42 this chapter; and
720	720	2025 IN 416—LS 7154/DI 153 17
721	721	1 (3) received more than one (1) year and less than ten (10)
722	722	2 years of service credit in the public employees' retirement
723	723	3 fund for the employment described in subdivision (2).
724	724	4 (b) This section does not apply to a person who has received at
725	725	5 least ten (10) years of service credit in the public employees'
726	726	6 retirement fund.
727	727	7 (c) If a person becomes a participant in the prosecuting
728	728	8 attorneys and public defenders retirement fund, credit for service
729	729	9 by the participant in a position not described in section 8(a) of this
730	730	10 chapter shall be granted under this chapter by the board if:
731	731	11 (1) the service was credited under the public employees'
732	732	12 retirement fund;
733	733	13 (2) the state or county, whichever is applicable, contributes to
734	734	14 the prosecuting attorneys and public defenders retirement
735	735	15 fund the amount the board determines necessary to amortize
736	736	16 the service liability over a period determined by the board,
737	737	17 but not more than nine (9) years; and
738	738	18 (3) the participant pays in a lump sum or in a series of
739	739	19 payments determined by the board, not exceeding five (5)
740	740	20 annual payments, the amount the participant would have
741	741	21 contributed if the participant had been a member of the
742	742	22 prosecuting attorneys and public defenders retirement fund
743	743	23 during the service.
744	744	24 (d) If the requirements of subsection (c)(2) and (c)(3) are not
745	745	25 satisfied, a participant is entitled to credit only for years of service
746	746	26 earned as a participant in the prosecuting attorneys and public
747	747	27 defenders retirement fund.
748	748	28 (e) An amortization schedule for contributions paid under
749	749	29 subsection (c)(2) or (c)(3) must include interest at a rate
750	750	30 determined by the board.
751	751	31 (f) The following provisions apply to a person described in
752	752	32 subsection (a):
753	753	33 (1) If the requirements of subsection (c)(2) and (c)(3) are
754	754	34 satisfied, the board shall transfer from the public employees'
755	755	35 retirement fund to the prosecuting attorneys and public
756	756	36 defenders retirement fund the amount credited to the annuity
757	757	37 savings account and the present value of the retirement
758	758	38 benefit payable at sixty-five (65) years of age or at least
759	759	39 fifty-five (55) years of age under section 16(b)(2) of this
760	760	40 chapter that is attributable to the transferring participant.
761	761	41 (2) The amount the state or county, whichever is applicable,
762	762	42 and the participant must contribute to the prosecuting
763	763	2025 IN 416—LS 7154/DI 153 18
764	764	1 attorneys and public defenders retirement fund under
765	765	2 subsection (c) shall be reduced by the amount transferred to
766	766	3 the prosecuting attorneys and public defenders retirement
767	767	4 fund by the board under subdivision (1).
768	768	5 (3) If the requirements of subsection (c)(2) and (c)(3) are
769	769	6 satisfied, credit for service in the public employees' retirement
770	770	7 fund as a participant in a position not described in section 8(a)
771	771	8 of this chapter is waived. Any credit for the service under the
772	772	9 prosecuting attorneys and public defenders retirement fund
773	773	10 may be granted only under subsection (c).
774	774	11 (g) To the extent permitted by the Internal Revenue Code and
775	775	12 the applicable regulations, the prosecuting attorneys and public
776	776	13 defenders retirement fund may accept, on behalf of a participant
777	777	14 who is purchasing permissive service credit under subsection (c),
778	778	15 a rollover of a distribution from any of the following:
779	779	16 (1) A qualified plan described in Section 401(a) or Section
780	780	17 403(a) of the Internal Revenue Code.
781	781	18 (2) An annuity contract or account described in Section 403(b)
782	782	19 of the Internal Revenue Code.
783	783	20 (3) An eligible plan that is maintained by a state, a political
784	784	21 subdivision of a state, or an agency or instrumentality of a
785	785	22 state or political subdivision of a state under Section 457(b) of
786	786	23 the Internal Revenue Code.
787	787	24 (4) An individual retirement account or annuity described in
788	788	25 Section 408(a) or Section 408(b) of the Internal Revenue
789	789	26 Code.
790	790	27 (h) To the extent permitted by the Internal Revenue Code and
791	791	28 the applicable regulations, the prosecuting attorneys and public
792	792	29 defenders retirement fund may accept, on behalf of a participant
793	793	30 who is purchasing permissive service credit under subsection (c),
794	794	31 a trustee to trustee transfer from any of the following:
795	795	32 (1) An annuity contract or account described in Section 403(b)
796	796	33 of the Internal Revenue Code.
797	797	34 (2) An eligible deferred compensation plan under Section
798	798	35 457(b) of the Internal Revenue Code.
799	799	2025 IN 416—LS 7154/DI 153