Introduced Version






SENATE BILL No. 166

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 36-8.

Synopsis: Disability benefits for public safety officers. Provides that a member of the 1925 police pension fund, 1937 firefighters' pension fund, 1953 police pension fund, and 1977 police officers' and firefighters' pension fund who develops cancer or a heart condition that is related to the police officer's or firefighter's duties is entitled to 75% of the salary of a first class patrolman or firefighter. Provides that the death of a police officer or firefighter from cancer or a heart condition related to the police officer's or firefighter's duties is a death in the line of duty.

Effective: July 1, 2000.





Craycraft




    January 10, 2000, read first time and referred to Committee on Pensions and Labor.







Introduced

Second Regular Session 111th General Assembly (2000)


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 1999 General Assembly.

SENATE BILL No. 166



    A BILL FOR AN ACT to amend the Indiana Code concerning local government.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 36-8-6-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 8. (a) Except as provided in subsection (f), the 1925 fund shall be used to pay a pension in a sum determined by the local board, but not exceeding:
        (1) for a disability or disease occurring before July 1, 1982, fifty percent (50%); and
        (2) for a disability or disease occurring after June 30, 1982, fifty-five percent (55%);
of the salary of a first class patrolman, to a member of the police department who has suffered or contracted a mental or physical disease or disability that renders him unable to perform the essential functions of any duty in the police department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act. If a member who becomes eligible for a disability pension has more than twenty (20) years of service, he is entitled to receive a disability pension equal to the pension he would have received if he had retired on the date of the disability.


    (b) The member must have retired from active service after a physical examination by the police surgeon or another surgeon appointed by the local board. The disability must be determined solely by the local board after the examination and a hearing conducted under IC 36-8-8-12.7. A member shall be retained on active duty with full pay until he is retired by the local board because of the disability.
    (c) After a member has been retired upon pension, the local board may, at any time, require the retired member to again be examined by the police surgeon or another surgeon appointed by the local board. After the examination the local board shall conduct a hearing under IC 36-8-8-12.7 to determine whether the disability still exists and whether the retired member should remain on the pension roll. The retired member shall be retained on the pension roll until reinstated in the service of the police department, except in case of resignation. If after the examination and hearing the retired member is found to have recovered from his disability and to be again fit for active duty, then the member shall be put on active duty with full pay and from that time is no longer entitled to payments from the 1925 fund. If the member fails or refuses to return to active duty, he waives all rights to further benefits from the 1925 fund.
    (d) If the salary of a first class patrolman is increased or decreased, the pension payable shall be proportionately increased or decreased. However, the monthly pension payable to a member or survivor may not be reduced below:
        (A) (1) the amount of the first full monthly pension received by that person; or
        (B) (2) fifty-five percent (55%) of the salary of a first class patrolman;
whichever is greater.
    (e) Time spent receiving disability benefits is considered active service for the purpose of determining retirement benefits until the member has a total of twenty (20) years of service.
     (f) A member of the police department who is unable to perform the member's duties in the police department because of a disabling cancer or heart condition that:
        (1) develops and manifests itself while the member is in the service of the police department; and
        (2) may be caused by exposure to heat, radiation, or a known or suspected carcinogen or the physical stresses of the member's duties;
is entitled to receive a disability benefit in the amount of seventy-five percent (75%) of the salary of a first class patrolman.

    SECTION 2. IC 36-8-6-10.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 10.1. (a) If a member dies in the line of duty after August 31, 1982, the surviving spouse is entitled to an additional monthly benefit, during the spouse's lifetime, equal to the difference between:
        (1) the benefit to which the member would have been entitled on the date of the member's death, but no less than fifty percent (50%) of the monthly wage received by a first class patrolman; and
        (2) the amount received by the spouse under section 9.8(c) of this chapter.
If the surviving spouse remarried before September 1, 1983, and benefits ceased on the date of remarriage, the benefits for the surviving spouse shall be reinstated on July 1, 1997, and continue during the life of the surviving spouse.
    (b) The children of a spouse receiving benefits under this section may not receive more than a total of thirty percent (30%) of the monthly wage received by a first class patrolman. However, this limitation does not apply to the children of a spouse receiving benefits under this section who are physically or mentally disabled.
    (c) For purposes of this section, "dies in the line of duty" means death that occurs as a direct result of personal injury or illness resulting from:
         (1) any action that the member, in the member's capacity as a police officer, is obligated or authorized by rule, regulation, condition of employment or service, or law to perform in the course of controlling or reducing crime or enforcing the criminal law; or
        (2) cancer or a heart condition that:
            (A) develops and manifests itself while the member is in the service of the police department; and
            (B) may be caused by exposure to heat, radiation, or a known or suspected carcinogen or the physical stresses of the member's duties.

    SECTION 3. IC 36-8-7-12.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 12.1. (a) Benefits paid under this section are subject to section 2.5 of this chapter.
    (b) The sum that shall be paid to permanently disabled members and to the surviving spouses, children, and parents of deceased members is as follows:
        (1) Except as provided in subdivision (4), upon retirement with disability during service, a member is entitled to receive in

monthly installments an amount equal to fifty-five percent (55%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension.
        (2) If a member dies while in active service or after retirement:
            (A) the surviving spouse is entitled to receive an amount fixed by ordinance but not less than:
                (i) for the surviving spouse of a member who dies before January 1, 1989, thirty percent (30%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension; and
                (ii) for the surviving spouse of a member who dies after December 31, 1988, an amount per month, during the spouse's life, equal to the greater of thirty percent (30%) of the monthly pay of a first class firefighter or fifty-five percent (55%) of the monthly benefit the deceased member was receiving or was entitled to receive on the date of the member's death (these amounts shall be proportionately increased or decreased if the salary of a first class firefighter is increased or decreased); however, if the deceased member was not entitled to a benefit because the member had not completed twenty (20) years of service, for the purposes of computing the second amount under this item, the member's benefit shall be considered to be fifty percent (50%) of the monthly salary of a first class firefighter in the unit at the time of payment of the pension;
            (B) the member's children who are:
                (i) under eighteen (18) years of age; or
                (ii) less than twenty-three (23) years of age if the children are enrolled in and regularly attending a secondary school or are full-time students at an accredited college or university;
            are each entitled to receive an amount fixed by ordinance but not less than twenty percent (20%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension; and
            (C) each parent of a deceased member who was eligible for a pension is entitled to receive jointly an amount equal to thirty percent (30%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension.
        (3) If a member dies in the line of duty after August 31, 1982, the surviving spouse is entitled to an additional monthly benefit, during the spouse's lifetime, equal to the difference between the benefit to which the member would have been entitled on the date

of the member's death, but not less than fifty percent (50%) of the monthly wage received by a fully paid first class firefighter and the amount received by the spouse under subdivision (2)(A). If the spouse remarried before September 1, 1983, and benefits ceased on the date of remarriage, the benefits for the surviving spouse shall be reinstated on July 1, 1997, and continue during the life of the surviving spouse. The children of a spouse receiving benefits under this subdivision may not receive more than a total of thirty percent (30%) of the monthly wage received by a fully paid first class firefighter. However, this limitation does not apply to the children of a spouse receiving benefits under this subdivision who are physically or mentally disabled. For purposes of this subdivision, "dies in the line of duty" means death that occurs as a direct result of personal injury or illness resulting from:
             (A) any action that the member, in the member's capacity as a firefighter, is obligated or authorized by rule, regulation, condition of employment or service, or law to perform while on the scene of an emergency run (including false alarms) or on the way to or from the scene; or
            (B) cancer or a heart condition that:
                (i) develops and manifests itself while the member is in the service of the fire department; and
                (ii) may be caused by exposure to heat, radiation, or a known carcinogen or the physical stresses of the member's duties.
        (4) A member who is unable to perform the member's duties in the fire department because of a disabling cancer or heart condition that:
            (A) develops and manifests itself while the member is in the service of the fire department; and
            (B) may be caused by exposure to heat, radiation, or a known or suspected carcinogen or the physical stresses of the member's duties;
        is entitled to receive a disability benefit in the amount of seventy-five percent (75%) of the salary of a first class firefighter.

If the local board finds upon the submission of satisfactory proof that a child eighteen (18) years of age or older is mentally or physically incapacitated, is not a ward of the state, and is not receiving a benefit under subdivision (2)(B)(ii), the child is entitled to receive the same amount as is paid to the surviving spouse of a deceased firefighter, as

long as the mental or physical incapacity continues. A sum paid for the benefit of a child or children shall be paid to the remaining parent, if alive, as long as the child or children reside with and are supported by the parent. If the parent dies, the sum shall be paid to the lawful guardian of the child or children.
    (c) A member who has been in service twenty (20) years, upon making a written application to the fire chief, may be retired from all service with the department without a medical examination or disability. Except as provided in subsection (g), the local board shall authorize the payment to the retired member of fifty percent (50%) of the salary of a fully paid first class firefighter of the unit at the time of the payment of the pension, plus:
        (1) for a member who retires before January 1, 1986, two percent (2%) of that salary for each year of service; or
        (2) for a member who retires after December 31, 1985, one percent (1%) of that salary for each six (6) months of service;
over twenty (20) years. However, the pension in one (1) year may not exceed an amount greater than seventy-four percent (74%) of the salary of a fully paid first class firefighter. The pension of the dependents of retired members is the same if the member dies after retirement as it is for dependents of members who die in the service or after retirement with disability.
    (d) A member who is discharged from the fire department after having served at least twenty (20) years is entitled to receive the amount equal to the amount that the member would have received if the member retired voluntarily. If a member dies after retirement and leaves a surviving spouse or dependent child or children, they are entitled to receive the amount provided for the dependents of members who have died in the service of the fire department.
    (e) All pensions in a class are on an equal basis. The local board may not depart from this chapter in authorizing the payment of pensions.
    (f) The monthly pension payable to a member or survivor may not be reduced below the amount of the first full monthly pension received by that person.
    (g) The monthly pension payable to a member who is transferred from disability to regular retirement status may not be reduced below fifty-five percent (55%) of the salary of a fully paid first class firefighter in the unit at the time of the payment of the pension.
    (h) A benefit payable under this section shall be paid in not less than twelve (12) monthly installments.
    SECTION 4. IC 36-8-7.5-13 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 13. (a) Except as provided in subsection (i), the 1953 fund shall be used to pay a pension in an annual sum equal to:
        (1) fifty percent (50%), for a disease or disability occurring before July 1, 1991; and
        (2) fifty-five percent (55%), for a disease or disability occurring after June 30, 1991;
of the salary of a first class patrolman in the police department, computed and payable as prescribed by section 12(b) of this chapter, to an active member of the police department who has been in active service for more than one (1) year and who has suffered or contracted a mental or physical disease or disability that render the member permanently unfit for active duty in the police department, or to an active member of the police department who has been in active service for less than one (1) year who has suffered or received personal injury from violent external causes while in the actual discharge of his duties as a police officer. The pensions provided for in this subsection shall be paid only so long as the member of the police department remains unfit for active duty in the police department.
    (b) The 1953 fund shall be used to pay temporary benefits in an annual sum equal to thirty percent (30%) of the salary of a first class patrolman in the police department, computed and payable as prescribed by section 12(a) of this chapter, to an active member of the police department who has been in active service for more than one (1) year and who has suffered any physical or mental disability that renders the member temporarily or permanently unable to perform his duties as a member of the police department, or to an active member of the police department who has been in active service for less than one (1) year and who has suffered or received personal injury from violent external causes while in the actual discharge of his duties as a police officer, until the time the member is physically and mentally able to return to active service on the police department.
    (c) If an application is made by an active member of the police department because of physical or mental disability for temporary benefits as provided in subsection (a) or (b), the benefit is not payable until the local board determines after a hearing conducted under IC 36-8-8-12.7 that the member is unfit for active duty on the police department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act. Before the hearing, a physician to be appointed by the local board shall examine the member and certify in writing whether in his opinion the member is unfit, physically or mentally, for active duty in the police department. After

the pension or benefit has been granted by the local board, the payment commences with the original date of the injury or illness causing the disability.
    (d) A member who has been granted a disability benefit under subsection (a) or (b) and who fails or refuses to submit to a physical examination at any time by the local board physician has no right in the future to receive the disability benefit, and any benefit that has been granted shall be immediately canceled by the local board.
    (e) The local board may, from time to time, require a member of the police department who is receiving at any time disability benefits or pensions as provided in subsection (a) or (b) to be examined by the physician appointed by the local board. After the examination, the local board shall conduct a hearing under IC 36-8-8-12.7 to determine whether the disability still exists and whether the member should continue to receive the pension or benefit. If after the examination and hearing the member is found to have recovered from his disability and is fit for active duty on the police department, then upon written notice to the member by the local board, the member shall be reinstated in active service, the safety board shall be informed of the action of the local board, and from that time the member is no longer entitled to payments from the 1953 fund. If the member fails or refuses to return to active duty after ordered by the local board, he ceases to be a member of the 1953 fund and waives all rights to any further pensions or benefits provided by the 1953 fund.
    (f) Notwithstanding any other provision of this chapter, no disability benefit may be paid for any disability based upon or caused by any mental or physical condition that a member had at the time he entered or reentered his active service in the police department.
    (g) If a member who is receiving disability benefits under subsection (a) for a disease or disability occurring after June 30, 1991, is transferred from disability to regular retirement status, the member's monthly pension may not be reduced below fifty-five percent (55%) of the salary of a first class patrolman at the time of payment of the pension.
    (h) To the extent required by the Americans with Disabilities Act, the transcripts, reports, records, and other material compiled to determine the existence of a disability shall be:
        (1) kept in separate medical files for each member; and
        (2) treated as confidential medical records.
     (i) A member of the police department who is unable to perform the member's duties in the police department because of a disabling cancer or heart condition that:


        (1) develops and manifests itself while the member is in the service of the police department; and
        (2) may be caused by exposure to heat, radiation, or a known or suspected carcinogen or the physical stresses of the member's duties;
is entitled to receive a disability benefit in the amount of seventy-five percent (75%) of the salary of a first class patrolman.

    SECTION 5. IC 36-8-7.5-14.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 14.1. (a) If a member dies in the line of duty after August 31, 1982, the surviving spouse is entitled to an additional monthly benefit, during the spouse's lifetime equal to the difference between:
        (1) the benefit to which the member would have been entitled on the date of the member's death, but not less than fifty percent (50%) of the monthly wage received by a first class patrolman; and
        (2) the amount received by the spouse under section 13.8(c) of this chapter.
If the spouse remarried before September 1, 1983, benefits ceased on the date of remarriage. However, if a member of the police department dies in the line of duty after August 31, 1982, and the member's surviving spouse remarried before September 1, 1983, the benefits for the surviving spouse shall be reinstated on July 1, 1995, and continue during the life of the surviving spouse.
    (b) The children of a spouse receiving benefits under this section may not receive more than a total of thirty percent (30%) of the monthly wage received by a first class patrolman. However, this limitation does not apply to the children of a spouse receiving benefits under this section who are physically or mentally disabled.
    (c) For purposes of this section, "dies in the line of duty" means death that occurs as a direct result of personal injury or illness resulting from:
         (1) any action that the member, in the member's capacity as a police officer, is obligated or authorized by rule, regulation, condition of employment or service, or law to perform in the course of controlling or reducing crime or enforcing the criminal law; or
        (2) cancer or a heart condition that:
            (A) develops and manifests itself while the member is in the service of the police department; and
            (B) may be caused by exposure to heat, radiation, or a known or suspected carcinogen or the physical stresses of

the member's duties.
    SECTION 6. IC 36-8-8-12.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 12.5. (a) This section applies only to a fund member who:
        (1) is hired for the first time after December 31, 1989;
        (2) chooses coverage by this section and section 13.5 of this chapter under section 12.4 of this chapter; or
        (3) is described in section 12.3(c)(2) of this chapter.
    (b) At the same hearing where the determination of whether the fund member has a covered impairment is made, the local board shall determine the following:
        (1) Whether the fund member has a Class 1 impairment. A Class 1 impairment is a covered impairment that is the direct result of one (1) or more of the following:
            (A) A personal injury that occurs while the fund member is on duty.
            (B) A personal injury that occurs while the fund member is off duty and is responding to:
                (i) an offense or a reported offense, in the case of a police officer; or
                (ii) an emergency or reported emergency for which the fund member is trained, in the case of a firefighter.
            (C) An occupational disease (as defined in IC 22-3-7-10 ). A covered impairment that is included within this clause and subdivision (2) shall be considered a Class 1 impairment.
             (D) Cancer or a heart condition that:
                (i) develops and manifests itself while the fund member is in the service of the police or fire department; and
                (ii) may be caused by exposure to heat, radiation, or a known or suspected carcinogen or the physical stresses of the fund member's duties.

        (2) Whether the fund member has a Class 2 impairment. A Class 2 impairment is a covered impairment that is a duty related disease. A duty related disease means a disease arising out of the fund member's employment. A disease shall be considered to arise out of the fund member's employment if it is apparent to the rational mind, upon consideration of all of the circumstances, that:
            (A) there is a connection between the conditions under which the fund member's duties are performed and the disease;
            (B) the disease can be seen to have followed as a natural incident of the fund member's duties as a result of the exposure

occasioned by the nature of the fund member's duties; and
            (C) the disease can be traced to the fund member's employment as the proximate cause.
        (3) Whether the fund member has a Class 3 impairment. A Class 3 impairment is a covered impairment that is not a Class 1 impairment or a Class 2 impairment.
    SECTION 7. IC 36-8-8-13.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 13.5. (a) This section applies only to a fund member who:
        (1) is hired for the first time after December 31, 1989;
        (2) chooses coverage by this section and section 12.5 of this chapter under section 12.4 of this chapter; or
        (3) is described in section 12.3(c)(2) of this chapter.
    (b) A fund member who is determined to have a Class 1 impairment and for whom it is determined that there is no suitable and available work within the fund member's department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, is entitled to a monthly base benefit equal to forty-five percent (45%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment. However, a fund member who is determined to have a Class 1 impairment under section 12.5(b)(1)(D) of this chapter is entitled to receive a monthly disability benefit in the amount of seventy-five percent (75%) of the monthly salary of a first class patrolman or firefighter.
    (c) A fund member who is determined to have a Class 2 impairment and for whom it is determined that there is no suitable and available work within the fund member's department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, is entitled to a monthly base benefit equal to twenty-two percent (22%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment plus one-half percent (0.5%) of that salary for each year of service, up to a maximum of thirty (30) years of service.
    (d) For applicants hired before March 2, 1992, a fund member who is determined to have a Class 3 impairment and for whom it is determined that there is no suitable and available work within the fund member's department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, is entitled to a monthly base benefit equal to the product of the member's years of service (not to exceed thirty (30) years of service) multiplied by one percent (1%) of the monthly salary of a first class patrolman or

firefighter in the year of the local board's determination of impairment.
    (e) For applicants hired after March 1, 1992, or described in section 12.3(c)(2) of this chapter, a fund member who is determined to have a Class 3 impairment and for whom it is determined that there is no suitable and available work within the fund member's department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, is entitled to the following benefits instead of benefits provided under subsection (d):
        (1) If the fund member did not have a Class 3 excludable condition under section 13.6 of this chapter at the time the fund member entered or reentered the fund, the fund member is entitled to a monthly base benefit equal to the product of the member's years of service, not to exceed thirty (30) years of service, multiplied by one percent (1%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment.
        (2) Except as provided in subdivision (5), a fund member is entitled to receive the benefits set forth in subdivision (1) if:
            (A) the fund member had a Class 3 excludable condition under section 13.6 of this chapter at the time the fund member entered or reentered the fund;
            (B) the fund member has a Class 3 impairment that is not related in any manner to the Class 3 excludable condition described in clause (A); and
            (C) the Class 3 impairment described in clause (B) occurs after the fund member has completed four (4) years of service with the employer after the date the fund member entered or reentered the fund.
        (3) Except as provided in subdivision (5), a fund member is not entitled to a monthly base benefit for a Class 3 impairment if:
            (A) the fund member had a Class 3 excludable condition under section 13.6 of this chapter at the time the fund member entered or reentered the fund; and
            (B) the Class 3 impairment occurs before the fund member has completed four (4) years of service with the employer after the date the fund member entered or reentered the fund.
        (4) A fund member is not entitled to a monthly base benefit for a Class 3 impairment if:
            (A) the fund member had a Class 3 excludable condition under section 13.6 of this chapter at the time the fund member entered or reentered the fund; and
            (B) the Class 3 impairment is related in any manner to the

Class 3 excludable condition.
        (5) If, during the first four (4) years of service with the employer:
            (A) a fund member with a Class 3 excludable condition is determined to have a Class 3 impairment; and
            (B) the Class 3 impairment is attributable to an accidental injury that is not related in any manner to the fund member's Class 3 excludable condition;
        the member is entitled to receive the benefits provided in subdivision (1) with respect to the accidental injury. For purposes of this subdivision, the local board shall make the initial determination of whether an impairment is attributable to an accidental injury. The local board shall forward the initial determination to the director of the PERF board for a final determination by the PERF board or the PERF board's designee.
    (f) If a fund member is entitled to a monthly base benefit under subsection (b), (c), (d), or (e), the fund member is also entitled to a monthly amount that is no less than ten percent (10%) and no greater than forty-five percent (45%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment. The additional monthly amount shall be determined by the PERF medical authority based on the degree of impairment.
    (g) Benefits for a Class 1 impairment are payable until the fund member becomes fifty-two (52) years of age. Benefits for a Class 2 and a Class 3 impairment are payable:
        (1) for a period equal to the years of service of the member, if the member's total disability benefit is less than thirty percent (30%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment and the member has fewer than four (4) years of service; or
        (2) until the member becomes fifty-two (52) years of age if the member's benefit is:
            (A) equal to or greater than thirty percent (30%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment; or
            (B) less than thirty percent (30%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment if the member has at least four (4) years of service.
    (h) Upon becoming fifty-two (52) years of age, a fund member with a Class 1 or Class 2 impairment is entitled to receive the retirement benefit payable to a fund member with:
        (1) twenty (20) years of service; or


        (2) the total years of service and salary, as of the year the member becomes fifty-two (52) years of age, that the fund member would have earned if the fund member had remained in active service until becoming fifty-two (52) years of age;
whichever is greater.
    (i) Upon becoming fifty-two (52) years of age, a fund member who is receiving or has received a Class 3 impairment benefit that is:
        (1) equal to or greater than thirty percent (30%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment; or
        (2) less than thirty percent (30%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment if the member has at least four (4) years of service;
is entitled to receive the retirement benefit payable to a fund member with twenty (20) years of service.
    (j) Notwithstanding section 12.3 of this chapter and any other provision of this section, a member who:
        (1) has had a covered impairment;
        (2) recovers and returns to active service with the department; and
        (3) within two (2) years after returning to active service has an impairment that, except for section 12.3(b)(3) of this chapter, would be a covered impairment;
is entitled to the benefit under this subsection if the impairment described in subdivision (3) results from the same condition or conditions (without an intervening circumstance) that caused the covered impairment described in subdivision (1). The member is entitled to receive the monthly disability benefit amount paid to the member at the time of the member's return to active service plus any adjustments under section 15 of this chapter that would have been applicable during the member's period of reemployment.
    SECTION 8. IC 36-8-8-14.1 , AS AMENDED BY P.L.195-1999, SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 14.1. (a) Benefits paid under this section are subject to section 2.5 of this chapter.
    (b) If a fund member dies while receiving retirement or disability benefits, the following apply:
        (1) Each of the member's surviving children is entitled to a monthly benefit equal to twenty percent (20%) of the fund member's monthly benefit:
            (A) until the child reaches eighteen (18) years of age; or
            (B) until the child reaches twenty-three (23) years of age if the

child is enrolled in and regularly attending a secondary school or is a full-time student at an accredited college or university;
        whichever period is longer. However, if the board finds upon the submission of satisfactory proof that a child who is at least eighteen (18) years of age is mentally or physically incapacitated, is not a ward of the state, and is not receiving a benefit under subdivision (1)(B), the child is entitled to receive an amount each month that is equal to the greater of thirty percent (30%) of the monthly pay of a first class patrolman or first class firefighter or fifty-five percent (55%) of the monthly benefit the deceased member was receiving or was entitled to receive on the date of the member's death as long as the mental or physical incapacity of the child continues. Benefits paid for a child shall be paid to the surviving parent as long as the child resides with and is supported by the surviving parent. If the surviving parent dies, the benefits shall be paid to the legal guardian of the child.
        (2) The member's surviving spouse is entitled to a monthly benefit equal to sixty percent (60%) of the fund member's monthly benefit during the spouse's lifetime. If the spouse remarried before September 1, 1983, and benefits ceased on the date of remarriage, the benefits for the surviving spouse shall be reinstated on July 1, 1997, and continue during the life of the surviving spouse.
If a fund member dies while receiving retirement or disability benefits, there is no surviving eligible child or spouse, and there is proof satisfactory to the local board, subject to review in the manner specified in section 13.1(b) of this chapter, that the parent was wholly dependent on the fund member, the member's surviving parent is entitled, or both surviving parents if qualified are entitled jointly, to receive fifty percent (50%) of the fund member's monthly benefit during the parent's or parents' lifetime.
    (c) If a fund member dies while on active duty or while retired and not receiving benefits, the member's children and the member's spouse, or the member's parent or parents, are entitled to receive a monthly benefit determined under subsection (b). If the fund member did not have at least twenty (20) years of service or was not at least fifty-two (52) years old, the benefit is computed as if the member:
        (1) did have twenty (20) years of service; and
        (2) was fifty-two (52) years of age.
    (d) If a fund member dies in the line of duty after August 31, 1982, the member's surviving spouse is entitled to an additional monthly benefit during the spouse's lifetime, equal to the difference between the benefit payable under subsection (b)(2) and the benefit to which the

member would have been entitled on the date of the member's death, but not less than the benefit payable to a member with twenty (20) years service at fifty-two (52) years of age. If the spouse remarried before September 1, 1983, and benefits ceased on the date of remarriage, the benefits for the surviving spouse shall be reinstated on July 1, 1997, and continue during the life of the surviving spouse. For purposes of this subsection, "dies in the line of duty" means death that occurs as a direct result of personal injury or illness resulting from:
        (1) any action that the member, in the member's capacity as a police officer:
            (A) is obligated or authorized by rule, regulation, condition of employment or service, or law to perform; or
            (B) performs in the course of controlling or reducing crime or enforcing the criminal law; or
        (2) any action that the member, in the member's capacity as a firefighter:
            (A) is obligated or authorized by rule, regulation, condition of employment or service, or law to perform; or
            (B) performs while on the scene of an emergency run (including false alarms) or on the way to or from the scene; or
        (3) cancer or a heart condition that:
            (A) develops and manifests itself while the member is in the service of the police or fire department; and
            (B) may be caused by exposure to heat, radiation, or a known or suspected carcinogen or the physical stresses of the member's duties.