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.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that
adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles
conflicts between statutes enacted by the 2006 Regular Session of the General Assembly.
Be it enacted by the General Assembly of the State of Indiana:
contributions to the fund:
(A) that are equal to the product of:
(i) the member's salary at the time the member actually
makes a contribution for the service credit;
(ii) a percentage rate, as determined by the actuary of
the fund, based on the age of the member at the time the
member makes a contribution for service credit and
computed to result in a contribution amount that
approximates the actuarial present value of the benefit
attributable to the service credit purchased; and
(iii) the number of years of state quasi-governmental
entity service the member intends to purchase; and
(B) for any accrued interest, at a rate determined by the
actuary of the fund, for the period from the member's
initial membership in the fund to the date payment is made
by the member.
(4) The member must provide verification of the service with
the state quasi-governmental entity in a manner prescribed by
the fund.
(c) State quasi-governmental entity service that qualifies a
member for retirement in a private retirement system or a federal
retirement system may not be granted under this section.
(d) A member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service from
another tax supported public employee retirement plan other
than under the federal Social Security Act;
may withdraw the personal contributions made under the
contributory plan plus accumulated interest after submitting to the
fund a properly completed application for a refund.
(e) The following apply to the purchase of service credit under
this section:
(1) The board may allow a member to make periodic
payments of the contributions required for the purchase of
the service credit. The board shall determine the length of the
period during which the payments must be made.
(2) The board may deny an application for the purchase of
service credit if the purchase would exceed the limitations
under Section 415 of the Internal Revenue Code.
(3) A member may not claim the service credit for purposes
of determining eligibility or computing benefits unless the
member has made all payments required for the purchase of
the service credit.
SECTION 2. IC 36-8-8-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 18. (a) Except as
provided in subsection (b), if a unit becomes a participant in the 1977
fund, credit for prior service by police officers (including prior service
as a full-time, fully paid town marshal or full-time, fully paid deputy
town marshal by a police officer employed by a metropolitan board of
police commissioners) or by firefighters before the date of participation
may be given by the PERF board only if:
(1) the unit contributes to the 1977 fund the amount necessary to
amortize prior service liability over a period of not more than
forty (40) years, the amount and period to be determined by the
PERF board; and
(2) the police officers or firefighters pay, either in a lump sum or
in a series of payments determined by the PERF board, the
amount that they would have contributed if they had been
members of the 1977 fund during their prior service.
If the requirements of subdivisions (1) and (2) are not met, a fund
member is entitled to credit only for years of service after the date of
participation.
(b) If a unit becomes a participant in the 1977 fund under section
3(c) of this chapter, or if a firefighter becomes a member of the 1977
fund under section 7(g) of this chapter, credit for prior service before
the date of participation or membership shall be given by the PERF
board as follows:
(1) For a member who will accrue twenty (20) years of service
credit in the 1977 fund by the time the member reaches the
earliest retirement age under the fund at the time of the member's
date of participation in the 1977 fund, the member will be given
credit in the 1977 fund for one-third (1/3) of the member's years
of participation in PERF as a police officer, a firefighter, or an
emergency medical technician.
(2) For a member who will not accrue twenty (20) years of service
credit in the 1977 fund by the time the member reaches the
earliest retirement age under the fund at the time of the member's
date of participation in the 1977 fund, such prior service shall be
given only if:
(A) The unit contributes to the 1977 fund the amount
necessary to fund prior service liability amortized over a
period of not more than ten (10) years. The amount of
contributions must be based on the actual salary earned by a
first class firefighter at the time the unit becomes a participant
in the 1977 fund, or the firefighter becomes a member of the
1977 fund, or if no such salary designation exists, the actual
salary earned by the firefighter. However, credit for prior
service is limited to the amount necessary to allow the
firefighter to accrue twenty (20) years of service credit in the
1977 fund by the time the firefighter reaches the earliest
retirement age under the 1977 fund at the time of the member's
date of participation in the 1977 fund. The limit on credit for
prior service does not apply if the firefighter was a member of
the 1937 fund or 1977 fund whose participation was
terminated due to the creation of a new fire protection district
under IC 36-8-11-5 and who subsequently became a member
of the 1977 fund. A firefighter who was a member of or
reentered the 1937 fund or 1977 fund whose participation was
terminated due to the creation of a new fire protection district
under IC 36-8-11-5 is entitled to full credit for prior service in
an amount equal to the firefighter's years of service before
becoming a member of or reentering the 1977 fund. Service
may only be credited for time as a full-time, fully paid
firefighter or as an emergency medical technician under
section 7(g) of this chapter.
(B) The amount the firefighter would have contributed if the
firefighter had been a member of the 1977 fund during the
firefighter's prior service must be fully paid and must be based
on the firefighter's actual salary earned during that period
before service can be credited under this section.
(C) Any amortization schedule for contributions paid under
clause (A) and contributions to be paid under clause (B) must
include interest at a rate determined by the PERF board.
(3) If, at the time a unit entered the 1977 fund, the unit
contributed the amount required by subdivision (2) so that a fund
member received the maximum prior service credit allowed by
subdivision (2) and, at a later date, the earliest retirement age was
lowered, the unit may contribute to the 1977 fund on the fund
member's behalf an additional amount that is determined in the
same manner as under subdivision (2) with respect to the
additional prior service, if any, available as a result of the lower
retirement age. If the unit pays the additional amount described in
this subdivision in accordance with the requirements of
subdivision (2), the fund member shall receive the additional
service credit necessary for the fund member to retire at the lower
earliest retirement age.
(c) This subsection applies to a unit that:
(1) becomes a participant in the 1977 fund under section 3(c) of
this chapter; and
(2) is a fire protection district created under IC 36-8-11 that
includes a township or a municipality that had a 1937 fund.
A firefighter who continues uninterrupted service with a unit covered
by this subsection and who participated in the township or municipality
1937 fund is entitled to receive service credit for such service in the
1977 fund. However, credit for such service is limited to the amount
accrued by the firefighter in the 1937 fund or the amount necessary to
allow the firefighter to accrue twenty (20) years of service credit in the
1977 fund by the time the firefighter becomes fifty-five (55) years of
age, whichever is less.
(d) The unit shall contribute into the 1977 fund the amount
necessary to fund the amount of past service determined in accordance
with subsection (c), amortized over a period not to exceed ten (10)
years with interest at a rate determined by the PERF board.
(e) If the township or municipality has accumulated money in its
1937 fund, any amount accumulated that exceeds the present value of
all projected future benefits from the 1937 plan shall be paid by the
township or municipality to the unit for the sole purpose of making the
contributions determined in subsection (d).
(f) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing permissive service credit under this chapter,
a rollover of a distribution from any of the following:
(1) A qualified plan described in Section 401(a) or Section 403(a)
of the Internal Revenue Code.
(2) An annuity contract or account described in Section 403(b) of
the Internal Revenue Code.
(3) An eligible plan that is maintained by a state, a political
subdivision of a state, or an agency or instrumentality of a state or
political subdivision of a state under Section 457(b) of the
Internal Revenue Code.
(4) An individual retirement account or annuity described in
Section 408(a) or Section 408(b) of the Internal Revenue Code.
(g) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing permissive service credit under this chapter,
a trustee to trustee transfer from any of the following:
(1) An annuity contract or account described in Section 403(b) of
the Internal Revenue Code.
(2) An eligible deferred compensation plan under Section 457(b)
of the Internal Revenue Code.
SECTION 3. IC 36-8-8.5-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 12. (a) The retirement
benefit for a member who enters the DROP and retires on:
(1) the member's DROP retirement date; or
(2) the date the member retires because of a disability as
provided under section 16.5(d) of this chapter;
is determined under this chapter rather than under the provisions of the
applicable fund.
(b) A member who retires on the member's DROP retirement date
or on the date the member retires because of a disability as
provided under section 16.5(d) of this chapter may elect to receive
a retirement benefit in one of the following forms:
(1) A retirement benefit paid by and calculated under the
provisions of the applicable fund as if the member had never
entered the DROP.
(2) A retirement benefit paid by the applicable fund and
consisting of:
(A) the DROP frozen benefit; plus
(B) an additional amount, paid as the member elects under
subsection (c), calculated by multiplying:
(i) the amount of the DROP frozen benefit; by
(ii) the number of months that the member was in the
DROP.
(c) A member who chooses the retirement benefit described in
subdivision (b)(2) must elect to receive the additional amount
described in subdivision (b)(2)(B) as:
(1) a lump sum paid on:
(A) the member's DROP retirement date; or
(B) the date the member retires because of a disability as
provided under section 16.5(d) of this chapter; or
(2) three (3) equal annual payments:
(A) commencing on:
(i) the member's DROP retirement date; or
(ii) the date the member retires because of a disability as
provided under section 16.5(d) of this chapter; and
(B) thereafter paid on the anniversary of:
(i) the member's DROP retirement date; or
(ii) the date the member retires because of a disability as
provided under section 16.5(d) of this chapter.
(d) In calculating a member's retirement benefit under this chapter,
the applicable fund must use the lesser of:
(1) the member's actual years of service; or
(2) thirty-two (32) years of service.
(e) Except as provided under section 16.5(d) of this chapter, the
retirement benefits for a member who exits the DROP for any reason
other than retirement on the member's DROP retirement date are
calculated under the provisions of the applicable fund as if the member
had never entered the DROP.
SECTION 4. IC 36-8-8.5-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 13. (a) A cost of living
adjustment to the monthly benefit of a member of the 1925 fund, 1937
fund, or 1953 fund is determined in STEP FOUR of the following
formula:
STEP ONE: Calculate a percentage by dividing:
(A) the amount of any increase in the salary of a first class
officer or firefighter, whichever is applicable; by
(B) the prior year's salary of a first class officer or firefighter,
whichever is applicable.
STEP TWO: Add:
(A) the member's DROP frozen benefit; and
(B) the amount of any prior cost of living adjustments
calculated under this section.
STEP THREE: Multiply the percentage determined under STEP
ONE by the sum determined under STEP TWO.
STEP FOUR: Add the product determined under STEP THREE
to the sum determined under STEP TWO.
(b) A cost of living adjustment to the monthly benefit of a member
of the 1977 fund is determined under the provisions of IC 36-8-8, as
applied after:
(1) the member's DROP retirement date; or
(2) the date the member retires because of a disability as
provided under section 16.5(d) of this chapter.
SECTION 5. IC 36-8-8.5-14, AS AMENDED BY P.L.51-2006,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 14. (a) Subject to subsection (b), a member who
enters the DROP established by this chapter shall exit the DROP at the
earliest of:
(1) the member's DROP retirement date;
(2) thirty-six (36) months after the member's DROP entry date; or
(3) the mandatory retirement age applicable to the member, if
any; or
(4) the date the member retires because of a disability as
provided under section 16.5(d) of this chapter.
(b) A member of the 1925 fund, the 1937 fund, or the 1953 fund
who enters the DROP established by this chapter must exit the DROP
on the date the authority of the board of trustees of the public
employees' retirement fund to distribute from the pension relief fund
established under IC 5-10.3-11-1 to units of local government
(described in IC 5-10.3-11-3) amounts determined under
IC 5-10.3-11-4.7 expires.
SECTION 6. IC 36-8-8.5-16.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 16.5. (a) This section applies to a
member of the 1977 fund who becomes disabled after June 1, 2005,
while the member is in the DROP, because of a disability that arose
either in the line of duty or other than in the line of duty.
(b) The retirement benefit for a member who retires because of
a disability while in the DROP is determined under this chapter
rather than under the provisions of the applicable fund.
Determinations as to whether:
(1) the member is disabled; and
(2) a disability is in the line of duty;
under this chapter are made under the provisions of the applicable
fund.
(c) If the member retires because of a disability less than twelve
(12) months after the date the member enters the DROP, the
benefits for the member are calculated under the provisions of the
applicable fund as if the member had never entered the DROP.
(d) If the member retires because of a disability at least twelve
(12) months after the date the member enters the DROP, the
benefits for the member are calculated under section 12 of this
chapter, and the member's retirement date is the date the member
retires because of a disability rather than the member's DROP
retirement date.
SECTION 7. IC 36-8-10.5-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7. (a) The education
board shall adopt rules under IC 4-22-2 establishing minimum basic
training requirements for full-time firefighters and volunteer
firefighters, subject to subsection (b). that The requirements must
include training in the following areas:
(1) Orientation.
(2) Personal safety.
(3) Forcible entry.
(4) Ventilation.
(5) Apparatus.
(6) Ladders.
(7) Self-contained breathing apparatus.
(8) Hose loads.
(9) Streams.
(10) Basic recognition of special hazards.
(b) A person who fulfills the certification requirements for:
(1) Firefighter I, as described in 655 IAC 1-2.1-4; or
(2) Firefighter II, as described in 655 IAC 1-2.1-5;
is considered to comply with the requirements established under
subsection (a).
(b) (c) In addition to the requirements of subsections (a) and (c), (d),
the minimum basic training requirements for full-time firefighters and
volunteer firefighters must include successful completion of a basic or
inservice course of education and training on sudden infant death
syndrome that is certified by the emergency medical services
commission (created under IC 16-31-2-1) in conjunction with the state
health commissioner.
(c) (d) In addition to the requirements of subsections (a) and (b), (c),
the minimum basic training requirements for full-time and volunteer
firefighters must include successful completion of an instruction course
on vehicle emergency response driving safety. The education board
shall adopt rules under IC 4-22-2 to operate this course.
SECTION 8. IC 36-8-15-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 1. This chapter applies
to a county having: that has:
(1) a consolidated city; or
(2) a population of more than one hundred eighty-two thousand
seven hundred ninety (182,790) but less than two hundred
thousand (200,000); or
(3) adopted an ordinance providing for the county to be
governed by this chapter.
However, sections 9.5, 15, 16, 17, and 18 of this chapter apply only to
a county having a consolidated city.
SECTION 9. IC 36-8-15-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 19. (a) This subsection
applies to a county not having a consolidated city. that has a
population of more than one hundred eighty-two thousand seven
hundred ninety (182,790) but less than two hundred thousand
(200,000). For the purpose of raising money to fund the operation of
the district, the county fiscal body may impose, for property taxes first
due and payable during each year after the adoption of an ordinance
establishing the district, an ad valorem property tax levy on property
within the district. The property tax rate for that levy may not exceed
five cents ($0.05) on each one hundred dollars ($100) of assessed
valuation.
(b) This subsection applies to a county having a consolidated city.
The county fiscal body may elect to fund the operation of the district
from part of the certified distribution, if any, that the county is to
receive during a particular calendar year under IC 6-3.5-6-17. To make
such an election, the county fiscal body must adopt an ordinance before
September 1 of the immediately preceding calendar year. The county
fiscal body must specify in the ordinance the amount of the certified
distribution that is to be used to fund the operation of the district. If the
county fiscal body adopts such an ordinance, it shall immediately send
a copy of the ordinance to the county auditor.
(c) Subject to subsections (d), (e), and (f), if an ordinance or
resolution is adopted changing the territory covered by the district or
the number of public agencies served by the district, the local
government tax control board shall, for property taxes first due and
payable during the year after the adoption of the ordinance, adjust the
maximum permissible ad valorem property tax levy limits of the
district and the units participating in the district.
(d) If a unit by ordinance or resolution joins the district or elects to
have its public safety agencies served by the district, the local
government tax control board shall reduce the maximum permissible
ad valorem property tax levy of the unit for property taxes first due and
payable during the year after the adoption of the ordinance or
resolution. The reduction shall be based on the amount budgeted by the
unit for public safety communication services in the year in which the
ordinance was adopted. If such an ordinance or resolution is adopted,
the district shall refer its proposed budget, ad valorem property tax
levy, and property tax rate for the following year to the board, which
shall review and set the budget, levy, and rate as though the district
were covered by IC 6-1.1-18.5-7.
(e) If a unit by ordinance or resolution withdraws from the district
or rescinds its election to have its public safety agencies served by the
district, the local government tax control board shall reduce the
maximum permissible ad valorem property tax levy of the district for
property taxes first due and payable during the year after the adoption
of the ordinance or resolution. The reduction shall be based on the
amounts being levied by the district within that unit. If such an
ordinance or resolution is adopted, the unit shall refer its proposed
budget, ad valorem property tax levy, and property tax rate for public
safety communication services to the board, which shall review and set
the budget, levy, and rate as though the unit were covered by
IC 6-1.1-18.5-7.
(f) The adjustments provided for in subsections (c), (d), and (e) do
not apply to a district or unit located in a particular county if the county
fiscal body of that county does not impose an ad valorem property tax
levy under subsection (a) to fund the operation of the district.
(g) A county that has adopted an ordinance under section 1(3)
of this chapter may not impose an ad valorem property tax levy on
property within the district to fund the operation or
implementation of the district.
SECTION 10. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "board" refers to the following:
(1) For the 1925 fund, the local board as referenced in
IC 36-8-6-2.
(2) For the 1937 fund, the local board as referenced in
IC 36-8-7-3.
(3) For the 1953 fund, the local board as referenced in
IC 36-8-7.5-2.
(4) For the 1977 fund, the PERF board as referenced in
IC 36-8-8-4.
(b) As used in this SECTION, "member" means an individual
who is a member of any of the following funds:
(1) 1925 police pension fund (IC 36-8-6) (1925 fund).
(2) 1937 firefighters' pension fund (IC 36-8-7) (1937 fund).
(3) 1953 police pension fund (Indianapolis) (IC 36-8-7.5) (1953
fund).
(4) 1977 police officers' and firefighters' pension and
disability fund (IC 36-8-8) (1977 fund).
(c) A member:
(1) who, after March 14, 2006, and before July 1, 2006, made
or attempted to make an election to enter a deferred
retirement option plan (DROP) under IC 36-8-8.5-9 with a
DROP retirement date (as defined in IC 36-8-8.5-8) after
December 31, 2007; and
(2) whose election under subdivision (1) was not approved;
is entitled to resubmit the election described in subdivision (1) as
initially submitted.
(d) A member may not resubmit an election described in
subsection (c) after July 1, 2007.
(e) For an election that is resubmitted under subsection (c), the
board shall:
(1) accept the election as resubmitted; and
(2) use the DROP entry date (as defined in IC 36-8-8.5-6) and
the DROP retirement date (as defined in IC 36-8-8.5-8) shown
on the resubmitted election as the dates the member enters
and exits the DROP.
(f) This SECTION expires December 31, 2007.
SECTION 11. IC 36-8-8.5-16 IS REPEALED [EFFECTIVE JULY
1, 2007].
SECTION 12. An emergency is declared for this act.
Date: