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)
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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.