Introduced Version






HOUSE BILL No. 1185

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 36-8-8.

Synopsis: 1977 Fund benefit enhancement. For a member of the 1977 police officers' and firefighters' pension and disability fund (1977 fund) who retires after June 30, 2009, increases from 1% to 1.25% the amount by which the retirement benefit increases for each six months of active service greater than 20 years and less than 32 years. Increases from 6% to 8.3% the percentage of the salary of a first class patrolman or firefighter contributed by or on behalf of a 1977 fund member or converted member to pay for the benefit increase.

Effective: July 1, 2009.





Murphy




    January 12, 2009, read first time and referred to Committee on Labor and Employment.







Introduced

First Regular Session 116th General Assembly (2009)


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HOUSE BILL No. 1185



    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 36-8-8-8; (09)IN1185.1.1. -->     SECTION 1. IC 36-8-8-8, AS AMENDED BY P.L.180-2007, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 8. (a) For contributions payable to the PERF board before July 1, 2009, each fund member shall contribute during the period of the fund member's employment or for thirty-two (32) years, whichever is shorter, an amount equal to six percent (6%) of the salary of a first class patrolman or firefighter. For contributions payable to the PERF board after June 30, 2009, each fund member shall contribute during the period of the member's employment or for thirty-two (32) years, whichever is shorter, an amount equal to eight and three-tenths percent (8.3%) of the salary of a first class patrolman or firefighter. However, the employer may pay all or a part of the contribution for the member. The amount of the contribution, other than contributions paid on behalf of a member, shall be deducted each pay period from each fund member's salary by the disbursing officer of the employer. The employer shall send to the PERF board each year on March 31, June 30, September 30, and December 31, for

the calendar quarters ending on those dates, a certified list of fund members and a warrant issued by the employer for the total amount deducted for fund members' contributions.
    (b) Except as provided in section 7.2 of this chapter, if a fund member ends the fund member's employment other than by death or disability before the fund member completes twenty (20) years of active service, the PERF board shall return to the fund member in a lump sum the fund member's contributions plus interest as determined by the PERF board. If the fund member returns to service, the fund member is entitled to credit for the years of service for which the fund member's contributions were refunded if the fund member repays the amount refunded to the fund member in either a lump sum or a series of payments determined by the PERF board.

SOURCE: IC 36-8-8-9; (09)IN1185.1.2. -->     SECTION 2. IC 36-8-8-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 9. (a) This section applies to all police officers and firefighters who converted their benefits under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both of which were repealed September 1, 1981).
    (b) A police officer or firefighter who converted his benefits from a 1925, 1937, or 1953 fund to the benefits and conditions of this chapter is not entitled to receive any benefits from the original fund. However, he the police officer or firefighter is entitled to credit for all years of service for which he the police officer or firefighter would have received credit before his the conversion in that original fund.
    (c) A police officer or firefighter who:
        (1) converted his benefits from a 1925, 1937, or 1953 fund;
        (2) retired or became disabled on or before June 30, 1998; and
        (3) is entitled to receive benefits provided under this chapter based on the eligibility requirements of this chapter;
shall be treated as a member of this fund for purposes of paying his benefits from the 1977 fund effective for benefits paid on or after October 1, 1998. Prior to October 1, 1998, he the police officer or firefighter remains a member of the original fund entitled to receive only the benefits provided under this chapter based on the eligibility requirements of this chapter.
    (d) A police officer or firefighter who:
        (1) converted his benefits from a 1925, 1937, or 1953 fund;
        (2) who did not retire or become disabled on or before June 30, 1998; and
        (3) who is entitled to receive benefits provided under this chapter based on the eligibility requirements of this chapter;
remains a member of that original fund but is entitled to receive only

the benefits provided under this chapter and based on the eligibility requirements of this chapter.
    (e) For contributions payable before July 1, 2009, a police officer or firefighter who converted shall contribute six percent (6%) of the salary of a first class patrolman or firefighter to the 1925, 1937, or 1953 fund. For contributions payable after June 30, 2009, a police officer or firefighter who converted shall contribute eight and three-tenths percent (8.3%) of the salary of a first class patrolman or firefighter to the 1925, 1937, or 1953 fund. This amount shall be deducted from his the police officer's or firefighter's salary each pay period by the disbursing officer of the employer. Contributions under this subsection may not be refunded.

SOURCE: IC 36-8-8-11; (09)IN1185.1.3. -->     SECTION 3. IC 36-8-8-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 11. (a) Benefits paid under this section are subject to section 2.5 of this chapter.
    (b) Each fund member who qualifies for a retirement benefit payment under section 10(b) of this chapter is entitled to receive a monthly benefit equal to fifty percent (50%) of the monthly salary of a first class patrolman or firefighter in the year the member ended his active service, plus:
        (1) for a member who retires before January 1, 1986, two percent (2%) of that salary for each full year of active service; or
        (2) for a member who retires after December 31, 1985, and before July 1, 2009, one percent (1%) of that salary for each six (6) months of active service; or
        (3) for a member who retires after June 30, 2009, one and twenty-five hundredths percent (1.25%) of that salary for each six (6) months of active service;

over twenty (20) years, to a maximum of twelve (12) years.
    (c) Each fund member who qualifies for a retirement benefit payment under section 10(c) of this chapter is entitled to receive a monthly benefit equal to fifty percent (50%) of the monthly salary of a first class patrolman or firefighter in the year the member ended his active service, plus:
         (1) for a member who retires before July 1, 2009, one percent (1%) of that salary; or
        (2) for a member who retires after June 30, 2009, one and twenty-five hundredths percent (1.25%) of that salary;

for each six (6) months of active service over twenty (20) years, to a maximum of twelve (12) years, all actuarially reduced for each month (if any) of benefit payments prior to fifty-two (52) years of age, by a factor established by the fund's actuary from time to time.