AN ACT to amend the Indiana Code concerning pensions.
SECTION 1. IC 10-1-1.9-10 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 10. "Supplementary trust agreement" means an
agreement that has the force and effect of law between the
department and the trustee concerning the police benefit fund (as
described in IC 10-1-2-6).
SECTION 2. IC 10-1-2-4 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2002]: Sec. 4. (a) As used in this section, the
"Americans with Disabilities Act" means the Americans with
Disabilities Act (42 U.S.C. 12101, et seq.) and the regulations and
amendments related thereto.
(b) Authority is hereby granted to the department to establish,
operate, and make necessary contributions to a disability reserve
account for the payment of disability expense reimbursement and
pension to disabled employee beneficiaries. The department also may
do the following:
(1) Establish, under the terms of a supplementary trust
agreement, disability expense reimbursements and disability
pensions to be paid to employee beneficiaries who incur a
disability in the line of duty.
(2) Establish, under the terms of a supplementary trust
agreement, disability expense reimbursements and disability
pensions to be paid to employee beneficiaries who incur a
disability not in the line of duty.
(3) Seek rulings from the Internal Revenue Service as to the
federal tax treatment for the line of duty disability benefits
authorized by this section.
Except as provided in subsection (e), no monthly disability pension
shall exceed the maximum basic pension amount. However, in the case
of disability incurred in line of duty, such employee beneficiary may
receive not more than forty dollars ($40) per month for each dependent
parent and dependent child less than eighteen (18) years of age, in
addition to the monthly disability pension payment under this chapter.
Time in disability pension status shall be deemed qualifying active
service for purposes of calculating retirement pension. and retirement
pension contributions in the amount prevailing at the commencement
of disability leave shall be withheld from monthly disability pension
payments rather than from wages for the duration of disability leave.
(c) This section shall be administered in a manner that is consistent
with the Americans with Disabilities Act, to the extent required by such
act.
(d) A disability payment made under this chapter is worker's
compensation in lieu of a payment under IC 22-3-2 through IC 22-3-7.
(e) A regular, paid police employee of the state police
department who is permanently and totally disabled by a
catastrophic personal injury that:
(1) is sustained in the line of duty after January 1, 2001; and
(2) permanently prevents the employee from performing any
gainful work;
shall receive a disability pension equal to the employee's regular
salary at the commencement of the disability. The disability
pension provided under this subsection is provided instead of the
regular monthly disability pension. The disability pension provided
under this subsection must be increased at a rate equal to any
salary increases the employee would have received if the employee
remained in active service.
SECTION 3. IC 10-1-2-11 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 11. The child or spouse of an employee beneficiary
who has been permanently and totally disabled by a catastrophic
personal injury that was sustained in the line of duty and
permanently prevents the employee beneficiary from performing
any gainful work may not be required to pay tuition or mandatory
fees at any state supported college, university, or technical school,
if:
(1) the child is less than twenty-three (23) years of age and is
a full-time student pursuing a prescribed course of study; or
(2) the spouse is pursuing a prescribed course of study toward
an undergraduate degree.
SECTION 4. [EFFECTIVE JULY 1, 2002] IC 10-1-2-11, as added
by this act, applies to the child or spouse of a regular, paid police
employee of the state police department if the regular police
employee of the state police department was permanently and
totally disabled by a catastrophic personal injury that:
(1) was sustained in the line of duty; and
(2) permanently prevents the employee from performing any
gainful work;
before, on, or after July 1, 2002.