Citations Affected: IC 5-10.2-4.
Synopsis: Increase of PERF pension benefits. Provides that the
multiplier used in calculating pension benefits for members of the
public employees' retirement fund (PERF) who retire after June 30,
2000, is 1.1% plus an additional 0.02% for each year of service in
excess of ten years, with a maximum multiplier of 1.5%. (Current law
provides that the multiplier is 1.1%.)
Effective: July 1, 2000.
January 10, 2000, read first time and referred to Committee on Pensions and Labor.
A BILL FOR AN ACT to amend the Indiana Code concerning
, AS AMENDED BY P.L.195-1999,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2000]: Sec. 4. (a) The computation of benefits under this
section is subject to
(b) For retirement benefits payable on and after July 1, 1975, for a member retired on and after January 1, 1956, the pension (p) is computed as follows:
STEP ONE: Multiply
one and one-tenths percent (1.1%) the
applicable percentage (ap) determined under section 4.5 of
this chapter times the average of the annual compensation (aac)
and obtain a product.
STEP TWO: To obtain the pension, multiply the STEP ONE product by the total creditable service (scr) completed by the member on his retirement date.
(.011) (ap) times (aac) times (scr)
(c) Unless the member has chosen a lump sum payment under
section 2 of this chapter or elects to defer receiving in any form the
member's annuity savings account under section 2(c) of this chapter,
the annuity is the amount purchasable on the member's retirement date
by the amount credited to the member in the annuity savings account.
The amount purchasable is based on actuarial tables adopted by the
at an interest rate determined by the board.
SECTION 2. IC 5-10.2-4-4.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 4.5. (a) The applicable percentage referred to in section 4(b) of this chapter is one and one-tenth percent (1.1%) for:
(1) a member of the Indiana state teachers' retirement fund; and
(2) a member of the public employees' retirement fund who retires before July 1, 2000.
(b) For a member of the public employees' retirement fund who retires after June 30, 2000, the applicable percentage referred to in section 4(b) of this chapter is determined in STEP FOUR of the following formula:
STEP ONE: Subtract ten (10) from the member's total years of creditable service.
STEP TWO: Multiply the result determined under STEP ONE by two-hundredths percent (0.02%).
STEP THREE: Add the STEP TWO product to one and one-tenth percent (1.1%).
STEP FOUR: Determine the lesser of:
(A) the STEP THREE sum; or
(B) one and five-tenths percent (1.5%).