Introduced Version






HOUSE BILL No. 1506

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 36-8-8-15.

Synopsis: 1977 fund cost of living adjustments. Provides that cost of living adjustments (COLAs) for fund members and survivors under the 1977 police officers' and firefighters' pension and disability fund shall be based on increases or decreases in the Consumer Price Index plus 1%. (Under current law, the COLAs are based on increases or decreases in the Consumer Price Index.) Retains the current overall limit of 3% on these increases or decreases.

Effective: Upon passage.





Buell




    January 11, 2001, read first time and referred to Committee on Ways and Means.







Introduced

First Regular Session 112th General Assembly (2001)


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.
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HOUSE BILL No. 1506



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

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

SOURCE: IC 36-8-8-15; (01)IN1506.1.1. -->     SECTION 1. IC 36-8-8-15 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. Each year the PERF board shall determine if there has been an increase or decrease in the Consumer Price Index (United States city average) prepared by the United States Department of Labor by comparing the arithmetic mean of the consumer price index for January, February, and March of that year with the arithmetic mean for the same three (3) months of the preceding year. If there has been an increase or a decrease, it shall be stated as a percentage of the arithmetic mean for the preceding three (3) month period. The percentage shall be rounded to the nearest one-tenth of one percent (0.1%). and may not exceed three percent (3%). A fund member's or survivor's monthly benefit, beginning with the July payment, shall be increased or decreased by an amount equal to the June payment times the lesser of:
        (1) the sum of the
percentage increase or decrease in the Consumer Price Index plus one percent (1%); or
        (2) three percent (3%).

However, a fund member's or survivor's monthly benefit may not be increased or decreased under this section until July of the year following the year of the first monthly benefit payment to the fund member or survivor. In computing a fund member's benefit, the increase or decrease is based only on those years for which the fund member was eligible for benefit payments under this chapter. A monthly benefit may not be reduced below the amount of the first monthly benefit received by the fund member or survivor.
SOURCE: ; (01)IN1506.1.2. -->     SECTION 2. An emergency is declared for this act.