Introduced Version






HOUSE BILL No. 1270

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 10-1.

Synopsis: COLA for state police retirees. Provides a cost of living adjustment (COLA) to members of the 1987 state police benefit system who retired or were disabled after July 1, 1987, and before July 2, 2001, and are at least 60 years of age. Provides that a member is not entitled to a COLA if the member's pension benefits exceed the pension benefits received by a trooper retiring July 1, 2002, with 25 years of service. Reduces from 20 to ten the years of service required for a retired member of the state police pre-1987 benefit system (pre-1987 system) to be eligible for the basic supplemental pension benefit. Provides that the amount of the supplemental pension is equal to 50% of the total increase occurring after the retiree's retirement date in the pension benefits to be received by an employee retiring from the department with 20 years of service. Provides that the supplemental pension benefit is increased 5% per year for each year of active service over 20 years to a maximum of 30 years of active service, which service entitles a retiree to receive 100% of the total increase occurring after the retiree's retirement date in the pension benefits of employees who retire with 20 years active service. Provides a COLA to retired or disabled members of the pre-1987 system.

Effective: July 1, 2002.





Klinker, Friend, Leuck, Ruppel




    January 14, 2002, read first time and referred to Committee on Ways and Means.







Introduced

Second Regular Session 112th General Assembly (2002)


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. 1270



    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 10-1-2.3-9; (02)IN1270.1.1. -->     SECTION 1. IC 10-1-2.3-9 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 9. (a) The pension portion (plus postretirement increases to the pension portion), provided by employer contributions, of the monthly benefit payable after June 30, 2002, to a member of the state police 1987 benefit system who retired or was disabled after July 1, 1987, and before July 2, 2001, and who is at least sixty (60) years of age shall be increased by the lesser of:
        (1) two percent (2%) of the member's monthly benefit; or
        (2) the amount by which the maximum monthly pension benefit paid to a state police employee in the rank of trooper retiring July 1, 2002, with twenty-five (25) years of service exceeds the member's monthly benefit.
    (b) The increases specified in this section:
        (1) shall be based upon the date of the member's latest retirement or disability;
        (2) do not apply to benefits payable in a lump sum; and
        (3) are in addition to any other increase provided by law.

SOURCE: IC 10-1-2.6-2; (02)IN1270.1.2. -->     SECTION 2. IC 10-1-2.6-2 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 2. In order for any employee of the department to become eligible for any supplemental benefits provided for in this chapter, the employee must:
         (1) have reached age fifty-five (55); must
         (2) have completed at least twenty (20) years service with the department, at least ten (10) years service with the department; or
         (3) have been retired by virtue of reaching age fifty-five (55) years;
and be first eligible to receive retirement benefits under IC 10-1-2.2.
SOURCE: IC 10-1-2.6-3; (02)IN1270.1.3. -->     SECTION 3. IC 10-1-2.6-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 3. (a) The supplemental benefits provided for in this chapter shall be under the direction and supervision of the pension advisory board that administers the pension under IC 10-1-2.2.
     (b) The pension advisory board shall annually provide a schedule showing the number of retirees receiving pension benefits under IC 10-1-2.2 and shall add to the regular pension benefit, or annuity, as the case may be, a supplemental benefit in a sum sufficient to equal fifty percent (50%) of the difference between the retiree's pension amount and total increase occurring after the retiree's retirement date in the pension benefits to be received by an employee retiring from the department after July 1, 1970, with twenty (20) years of active service.
SOURCE: IC 10-1-2.6-4; (02)IN1270.1.4. -->     SECTION 4. IC 10-1-2.6-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 4. As an incentive to all employees of the department, the supplemental pension benefits of this chapter shall be increased over and above the fifty percent (50%) increase provided for in section 3 of this chapter, at the rate of five percent (5%) per year for each year of active service up over twenty (20) years to a maximum of thirty (30) years service, so as to provide that retired employees with thirty (30) years service are entitled to one hundred percent (100%) of the regular total increase occurring after the retiree's retirement date in the pension benefits of employees who retire with twenty (20) years active service after July 1, 1970.
SOURCE: IC 10-1-2.6-8; (02)IN1270.1.5. -->     SECTION 5. IC 10-1-2.6-8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 8. (a) The pension portion (plus postretirement increases to the pension portion), provided by employer contributions, of the monthly benefit payable after June 30, 2002,

to a member of the state police pre-1987 benefit system who is retired or disabled shall be increased by the greater of:
        (1) the amount of supplemental benefit that will accrue to the member after June 30, 2002, and before July 1, 2003, under sections 3 and 4 of this chapter; or
        (2) an amount equal to the pension portion (plus postretirement increases to the pension portion) multiplied by:
            (A) two percent (2%), for a member who retired or was disabled after July 1, 1984, and before July 2, 2001;
            (B) three percent (3%), for a member who retired or was disabled after July 1, 1976, and before July 2, 1984; or
            (C) four percent (4%), for a member who retired or was disabled before July 2, 1976.
    (b) The increases specified in this section:
        (1) shall be based upon the date of the member's latest retirement or disability;
        (2) do not apply to benefits payable in a lump sum; and
        (3) are in addition to any other increase provided by law.