HOUSE BILL No. 1049
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-10.2-5-35.
Synopsis: TRF COLA and "thirteenth check". Provides for a cost of
living adjustment (COLA) and a supplemental "thirteenth check" for
members of the teachers retirement fund (TRF) (or their survivors or
beneficiaries) for 2005.
Effective: July 1, 2004.
January 13, 2004, read first time and referred to Committee on Ways and Means.
Second Regular Session 113th General Assembly (2004)
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HOUSE BILL No. 1049
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 5-10.2-5-35; (04)IN1049.1.1. -->
SECTION 1. IC 5-10.2-5-35 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 35. (a) The pension portion (plus postretirement
increases to the pension portion) provided by employer
contributions of the monthly benefit payable after December 31,
2004, to a member of the Indiana state teachers' retirement fund
(or to a survivor or beneficiary of a member of the Indiana state
teachers' retirement fund) who retired or was disabled:
(1) after July 1, 1996, and before July 2, 2002, shall be
increased by one percent (1%);
(2) after July 1, 1978, and before July 2, 1996, shall be
increased by two percent (2%); and
(3) before July 2, 1978, shall be increased by three percent
(b) The increases specified in this section:
(1) are based upon the date of the member's latest retirement
(2) do not apply to benefits payable in a lump sum; and
(3) are in addition to any other increase provided by law.
SOURCE: ; (04)IN1049.1.2. -->
SECTION 2. [EFFECTIVE JULY 1, 2004] (a) As used in this
SECTION, "fund" refers to the Indiana state teachers' retirement
fund established by IC 21-6.1-2-1.
(b) The amount determined in the following STEPS shall be
paid from the annuity reserve account of the fund on November 1,
2004, to any person who was a retired member (or to a survivor or
beneficiary of a retired member) of the fund as of July 2, 2003, and
who was entitled to receive a monthly benefit on October 1, 2004:
STEP ONE: Determine the difference between:
(A) the balance in the fund's retired teacher annuity
reserve account as of June 30, 2003; and
(B) the computed liability of the annuity portion of the
normal allowance for the retired members as of June 30,
STEP TWO: Multiply the STEP ONE result by ten percent
The amount shall be paid in a single check. The amount is not an
increase in the pension portion of the monthly benefit.
(c) The amounts distributed under subsection (b) shall be
distributed to each retired member (or to a survivor or beneficiary
of a retired member) who meets the requirements of subsection (b)
in an amount determined under the following STEPS:
STEP ONE: Determine the sum of:
(A) the total number of years of creditable service
(excluding creditable service under Acts 1965, c.410, s.4) in
the fund of all retired members eligible to receive a portion
of the distribution; plus
(B) the total number of years that all retired members who
are eligible to receive a portion of the distribution have
STEP TWO: Determine the sum of:
(A) the eligible retired member's total number of years of
creditable service (excluding creditable service under Acts
1965, c.410, s.4) in the fund; plus
(B) the total number of years since the eligible retired
member retired from the last covered position held by the
STEP THREE: Divide the amount determined in STEP TWO
by the amount determined in STEP ONE.
STEP FOUR: Multiply the amount determined in STEP
THREE by the amount of the distribution under STEP TWO
of subsection (b).
STEP FIVE: Determine the greater of fifty dollars ($50) or
the amount determined in STEP FOUR.
(d) This SECTION expires December 1, 2004.