Introduced Version




Citations Affected: IC 5-10.2-4-4.

Synopsis: Public employees' retirement fund multiplier. Provides that the multiplier used in calculating pension benefits for members of the public employees' retirement fund who retire after June 30, 2008, is increased from 1.1% to 1.6%.

Effective: July 1, 2008.


    January 8, 2008, read first time and referred to Committee on Pensions and Labor.


Second Regular Session 115th General Assembly (2008)

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    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 5-10.2-4-4; (08)IN0050.1.1. -->     SECTION 1. IC 5-10.2-4-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 4. (a) The computation of benefits under this section is subject to IC 5-10.2-2-1.5.
    (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 subsection (c) 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 the member's retirement date.
        Expressed mathematically:
        p = (.011) (ap) times (aac) times (scr).
     (c) The applicable percentage (ap) is one (1) of the following:
        (1) One and one-tenth percent (1.1%) for:
            (A) a member of the Indiana state teachers' retirement fund; and
            (B) a member of the public employees' retirement fund who retires before July 1, 2008.

         (2) One and six-tenths percent (1.6%) for a member of the public employees' retirement fund who retires after June 30, 2008.
     (d) Notwithstanding subsection (c), if a member of the public employees' retirement fund terminates from reemployment after June 30, 2008, the applicable percentage (ap) used to calculate the member's supplemental benefit under section 10 of this chapter for the period of reemployment is one and six-tenths percent (1.6%).
    (c) (e) 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 board under IC 5-10.2-2-10 at an interest rate determined by the board.