First Regular Session 116th General Assembly (2009)
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HOUSE ENROLLED ACT No. 1012
AN ACT to amend the Indiana Code concerning pensions.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 36-8-8-12; (09)HE1012.1.1. -->
SECTION 1. IC 36-8-8-12, AS AMENDED BY P.L.99-2007,
SECTION 219, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2009]: Sec. 12. (a) Benefits paid under this
section are subject to sections 2.5 and 2.6 of this chapter.
(b) If an active fund member has a covered impairment, as
determined under sections 12.3 through 13.1 of this chapter, the
member is entitled to receive the benefit prescribed by section 13.3 or
13.5 of this chapter. A member who has had a covered impairment and
returns to active duty with the department shall not be treated as a new
applicant seeking to become a member of the 1977 fund.
(c) If a retired fund member who has not yet reached the member's
fifty-second birthday is found by the PERF board to be permanently or
temporarily unable to perform all suitable work for which the member
is or may be capable of becoming qualified, the member is entitled to
receive during the disability the retirement benefit payments payable
at fifty-two (52) years of age. During a reasonable period in which a
fund member with a disability is becoming qualified for suitable work,
the member may continue to receive disability benefit payments.
However, benefits payable for disability under this subsection are
reduced by amounts for which the fund member is eligible from:
(1) a plan or policy of insurance providing benefits for loss of
time because of disability;
(2) a plan, fund, or other arrangement to which the fund member's
employer has contributed or for which the fund member's
employer has made payroll deductions, including a group life
policy providing installment payments for disability, a group
annuity contract, or a pension or retirement annuity plan other
than the fund established by this chapter;
(3) the federal Social Security Act (42 U.S.C. 401 et seq.), the
Railroad Retirement Act (45 U.S.C. 231 et seq.), the United States
Department of Veterans Affairs, or another federal, state, local, or
other governmental agency;
(4) worker's compensation payable under IC 22-3; and
(5) a salary or wage, including overtime and bonus pay and extra
or additional remuneration of any kind, the fund member receives
or is entitled to receive from the member's employer.
For the purposes of this subsection, a retired fund member is
considered eligible for benefits from subdivisions (1) through (5)
whether or not the member has made application for the benefits.
(d) Notwithstanding any other law, a plan, policy of insurance, fund,
or other arrangement:
(1) delivered, issued for delivery, amended, or renewed after
April 9, 1979; and
(2) described in subsection (c)(1) or (c)(2);
may not provide for a reduction or alteration of benefits as a result of
benefits for which a fund member may be eligible from the 1977 fund
under subsection (c).
(e) Time spent receiving disability benefits,
not to exceed twenty
(20) years, is considered active service for the purpose of determining
retirement benefits.
until the fund member has a total of twenty (20)
years of service. A fund member's retirement benefit shall be based
on:
(1) the member's years of active service; plus
(2) if applicable, the period, not to exceed twenty (20) years,
during which the member received disability benefits.
(f) A fund member who is receiving disability benefits:
(1) under section 13.3(d) of this chapter; or
(2) based on a determination under this chapter that the fund
member has a Class 3 impairment;
shall be transferred from disability to regular retirement status when the
member becomes fifty-five (55) years of age.
(g) A fund member who is receiving disability benefits:
(1) under section 13.3(c) of this chapter; or
(2) based on a determination under this chapter that the fund
member has a Class 1 or Class 2 impairment;
is entitled to receive a disability benefit for the remainder of the fund
member's life in the amount determined under the applicable
sections of this chapter.
SOURCE: IC 36-8-8-13.5; (09)HE1012.1.2. -->
SECTION 2. IC 36-8-8-13.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: 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.
(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
as determined under this
section are payable
until for the remainder of the fund
member
becomes fifty-two (52) years of age. member's life.
(h) 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 for the
remainder of the fund member's life if the
fund 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.
(i) Benefits for 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) (j) Upon becoming fifty-two (52) years of age, a fund member
with a
Class 1 or Class 2 impairment
determined under subsection
(h)(1) 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
(including both active service and
the period, not to exceed twenty (20) years, during which the
member received disability benefits) 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) (k) 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) (l) 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.
SOURCE: IC 36-8-8-23; (09)HE1012.1.3. -->
SECTION 3. IC 36-8-8-23 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2009]: Sec. 23. (a) This section applies to a fund member who:
(1) after June 30, 2009, receives a benefit based on a
determination that the member has a Class 1 or Class 2
impairment, regardless of whether the determination was
made before, on, or after June 30, 2009; and
(2) before July 1, 2009, has not had the member's disability
benefit recalculated under section 13.5 of this chapter.
(b) Upon becoming fifty-two (52) years of age, a fund member
receiving a Class 1 impairment benefit or Class 2 impairment
benefit under section 13.5(h)(2) of this chapter is entitled to receive
a monthly supplemental benefit determined in STEP THREE of the
following formula:
STEP ONE: Determine the greater of:
(A) the monthly retirement benefit payable to a fund
member with twenty (20) years of service; or
(B) the monthly retirement benefit payable to a fund
member with the total years of service (including both
active service and the period, not to exceed twenty (20)
years, during which the member received disability
benefits) and salary, as of the year the fund 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.
STEP TWO: Subtract from the amount determined under
STEP ONE the amount of any monthly benefit determined
under section 13.5 of this chapter that the fund member is
entitled to receive for the remainder of the fund member's
life.
STEP THREE: Determine the greater of the following:
(A) The remainder determined under STEP TWO.
(B) Zero (0).
(c) A monthly supplemental benefit determined under this
section is payable for the remainder of the fund member's life.
SOURCE: ; (09)HE1012.1.4. -->
SECTION 4. [EFFECTIVE JULY 1, 2009]
IC 36-8-8-12 and
IC 36-8-8-13.5, both as amended by this act, apply to a member of
the 1977 police officers' and firefighters' pension and disability
fund who:
(1) after June 30, 2009, receives a benefit based on a
determination that the member has a Class 1 or Class 2
impairment, regardless of whether the determination was
made before, on, or after June 30, 2009; and
(2) before July 1, 2009, has not had the member's disability
benefit recalculated under IC 36-8-8-13.5 (as the section read
before amendment by this act).
HEA 1012
Figure
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