Ind. Code ch. 5-10-5.5

Ind. Code ch. 5-10-5.5
in effect

Ind. Code § 5-10-5.5-0.1 Application of certain amendments; payment options for a survivor of a participant who dies in the line of duty between January 31, 2018, and April 1, 2020

Sec. 0.1. (a) As used in this section, "plan" refers to the state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement plan established by section 2 of this chapter. (b) The following amendments to this chapter apply as follows: (1) The addition of section 7.5 of this chapter by P.L.180-2007 applies after June 30, 2007, to active participants of the plan. (2) The amendments made to section 8 of this chapter by P.L.180-2007 apply after June 30, 2007, to active participants of the plan. (3) The amendments made to sections 10, 11, and 12 of this chapter by P.L.180-2007 apply to participants of the plan who retire after June 30, 2007. (4) The amendments made to sections 7 and 13.5 of this chapter by P.L.180-2007 apply to participants of the plan who become disabled after June 30, 2007. (5) The addition of section 22 of this chapter by P.L.128-2008 applies only to a participant in the plan who is in active service after June 30, 2008. (6) The amendments made to sections 9 and 10 of this chapter by P.L.128-2008 apply only to a participant in the plan who is in active service after June 30, 2008. (7) The amendments made to section 22 of this chapter during the 2020 regular session of the general assembly apply only to a participant who: (A) enters the DROP, before, on, or after June 30, 2020; and (B) dies after June 30, 2020. (c) Notwithstanding any other law, if a participant dies in the line of duty after January 31, 2018, and before April 1, 2020, and a survivors' benefit is paid under section 17(b) of this chapter to the participant's survivor, either: (1) the survivor may repay the full amount distributed under section 17(b) of this chapter and the board shall provide the full annual survivors' allowance allowed under section 16.6 of this chapter; or (2) the board may adjust the amount of the full annual survivors' allowance allowed under section 16.6 of this chapter to account for any amount distributed under section 17(b) of this chapter. As added by P.L.220-2011, SEC.64. Amended by P.L.6-2020, SEC.1; P.L.133-2020, SEC.12; P.L.145-2020, SEC.1.

Ind. Code § 5-10-5.5-1 Definitions

Sec. 1. The following definitions apply throughout this chapter, unless the context clearly denotes otherwise: (1) "Americans with Disabilities Act" refers to the Americans with Disabilities Act (42 U.S.C. 12101 et seq.) and any amendments and regulations related to the Act. (2) "Average annual salary" means the average annual salary of an officer during the five (5) years of highest annual salary in the ten (10) years immediately preceding an officer's retirement date, determined without regard to any salary reduction agreement established under Section 125 of the Internal Revenue Code. (3) "Board" refers to the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1. (4) "Commission" means the alcohol and tobacco commission. (5) "Department" means the Indiana department of natural resources. (6) "Dies in the line of duty" means death that occurs as a direct result of personal injury or illness caused by incident, accident, or violence that results from any action that the participant, in the participant's capacity as an officer: (A) is obligated or authorized by rule, regulation, condition of employment or service, or law to perform; or (B) performs in the course of controlling or reducing crime or enforcing the criminal law. The term includes a death presumed incurred in the line of duty under IC 5-10-13 for an officer who is an Indiana state excise police officer or an Indiana state conservation enforcement officer. (7) "Interest" means the rate of interest specified by rule by the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1. (8) "Officer" means any Indiana state excise police officer, any Indiana state conservation enforcement officer, any gaming agent, or any gaming control officer. (9) "Participant" means any officer who has elected to participate in the retirement plan created by this chapter. (10) "Public employees' retirement act" means IC 5-10.3. (11) "Public employees' retirement fund" refers to the public employees' retirement fund created by IC 5-10.3-2. (12) "Salary" means the total compensation, exclusive of expense allowances, paid to any officer by the department or the commission, determined without regard to any salary reduction agreement established under Section 125 of the Internal Revenue Code. (13) Other words and phrases when used in this chapter have the meanings set forth in IC 5-10.3-1. Formerly: Acts 1972, P.L.1, SEC.1. As amended by P.L.25-1986, SEC.27; P.L.5-1992, SEC.3; P.L.4-1992, SEC.5; P.L.204-2001, SEC.10; P.L.170-2005, SEC.11; P.L.227-2007, SEC.51; P.L.16-2011, SEC.1; P.L.23-2011, SEC.3; P.L.6-2012, SEC.25; P.L.35-2012, SEC.23; P.L.6-2020, SEC.2.

Ind. Code § 5-10-5.5-2 Creation; investment of plan assets

Sec. 2. (a) There is hereby created a state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement plan to establish a means of providing special retirement, disability and survivor benefits to employees of the department, the Indiana gaming commission, and the commission who are engaged exclusively in the performance of law enforcement duties. (b) The assets of the retirement plan created by this section may be commingled for investment purposes with the assets of other funds administered by the board. Formerly: Acts 1972, P.L.1, SEC.1. As amended by P.L.170-2005, SEC.12; P.L.227-2007, SEC.52; P.L.193-2016, SEC.1.

Ind. Code § 5-10-5.5-2.5 Qualification of plan under Internal Revenue Code

Sec. 2.5. (a) As used in this chapter, "Internal Revenue Code": (1) means the Internal Revenue Code of 1954, as in effect on September 1, 1974, if permitted with respect to governmental plans; or (2) to the extent not inconsistent with subdivision (1), has the meaning set forth in IC 6-3-1-11. (b) The state excise police, gaming agent, gaming control officer, and conservation officers' retirement plan shall satisfy the qualification requirements in Section 401 of the Internal Revenue Code, as applicable to the retirement plan. In order to meet those requirements, the retirement plan is subject to the following provisions, notwithstanding any other provision of this chapter: (1) The board shall distribute the corpus and income of the retirement plan to participants and their beneficiaries in accordance with this chapter. (2) No part of the corpus or income of the retirement plan may be used or diverted to any purpose other than the exclusive benefit of the participants and their beneficiaries. (3) Forfeitures arising from severance of employment, death, or for any other reason may not be applied to increase the benefits any participant would otherwise receive under this chapter. (4) If the retirement plan is terminated, or if all contributions to the retirement plan are completely discontinued, the rights of each affected participant to the benefits accrued at the date of the termination or discontinuance, to the extent then funded, are nonforfeitable. (5) All benefits paid from the retirement plan shall be distributed in accordance with the requirements of Section 401(a)(9) of the Internal Revenue Code and the regulations under that section. In order to meet those requirements, the retirement plan is subject to the following provisions: (A) The life expectancy of a participant, the participant's spouse, or the participant's beneficiary shall not be recalculated after the initial determination, for purposes of determining benefits. (B) If a participant dies before the distribution of the participant's benefits has begun, distributions to beneficiaries must begin no later than December 31 of the calendar year immediately following the calendar year in which the participant died. (C) The amount of an annuity paid to a participant's beneficiary may not exceed the maximum determined under the incidental death benefit requirement of the Internal Revenue Code. (6) The board may not: (A) determine eligibility for benefits; (B) compute rates of contribution; or (C) compute benefits of participants or beneficiaries; in a manner that discriminates in favor of participants who are considered officers, supervisors, or highly compensated, as prohibited under Section 401(a)(4) of the Internal Revenue Code. (7) Benefits paid under this chapter may not exceed the maximum benefit specified by Section 415 of the Internal Revenue Code. (8) The salary taken into account under this chapter may not exceed the applicable amount under Section 401(a)(17) of the Internal Revenue Code. (9) The board may not engage in a transaction prohibited by Section 503(b) of the Internal Revenue Code. As added by P.L.55-1989, SEC.1. Amended by P.L.170-2005, SEC.13; P.L.227-2007, SEC.53.

Ind. Code § 5-10-5.5-3 Management; confidentiality of retirement plan records

Sec. 3. (a) The management administration of the retirement plan created by this chapter is hereby vested in the board. (b) Records of individual participants in the retirement plan created by this chapter and participants' information are confidential, except for the name and years of service of a retirement plan participant. Formerly: Acts 1972, P.L.1, SEC.1. As amended by P.L.94-2004, SEC.3; P.L.23-2011, SEC.4.

Ind. Code § 5-10-5.5-3.5 Administration of retirement plan consistent with Americans with Disabilities Act

Sec. 3.5. The state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement plan shall be administered in a manner that is consistent with the Americans with Disabilities Act, to the extent required by the Act. As added by P.L.4-1992, SEC.6. Amended by P.L.170-2005, SEC.14; P.L.227-2007, SEC.54.

Ind. Code § 5-10-5.5-4 Participants' saving fund; creation

Sec. 4. (a) A participants' savings fund is hereby created. This fund shall be maintained by the board as a trust fund, separate and distinct from all other entities for the purpose of securing payment of benefits to participants and their survivors, as provided in this chapter. (b) The participants' savings fund shall consist of the following: (1) each participant's contributions to the fund; (2) all gifts, grants, devises and bequests in money, property, or other form which may be made to the fund; (3) all interest on investments or on deposits of the fund; (4) all contributions or payments to the fund made in any manner provided by the general assembly, including appropriations from the general fund of the state; and (5) any funds transferred to the fund from the public employees' retirement fund under the provisions of section 6 of this chapter. (c) Within the participants' savings fund established by subsection (a), the board shall maintain a supplemental allowance reserve account for the purpose of paying postretirement benefit adjustments, including postretirement benefit increases, thirteenth checks, and other benefit changes or adjustments granted by the general assembly after June 30, 2018, to participants of the state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement plan. The account consists of: (1) amounts allotted to the account by the board from amounts transferred to the Indiana public retirement system under IC 4-30-16-3; (2) amounts appropriated or transferred to the account by the general assembly; (3) contributions from employers under IC 5-10.2-12-3; and (4) donations, gifts, bequests, and devises made to the account. Formerly: Acts 1972, P.L.1, SEC.1. As amended by P.L.127-2018, SEC.4; P.L.136-2018, SEC.33.

Ind. Code § 5-10-5.5-5 Participants; eligibility

Sec. 5. (a) Every person who is an officer on September 2, 1971, shall become a participant, unless the officer files a written notice of his election not to participate with the board within twenty (20) days prior to September 2, 1971. (b) Every person who becomes an officer after September 2, 1971 shall become a participant as a condition of his employment. (c) Any officer who elects not to become a participant shall thereafter be forever ineligible to become a participant. Formerly: Acts 1972, P.L.1, SEC.1.

Ind. Code § 5-10-5.5-6 Transfer of funds to savings fund

Sec. 6. (a) Upon election to become a participant by any officer who is a member of the public employees' retirement fund, the board shall transfer all funds standing to the credit of the electing officer in the public employees' retirement fund to the participants' savings fund created by this chapter. (b) Except as otherwise provided in this chapter, a transfer of funds under the provisions of subsection (a) of this section constitutes a full and complete discharge of all of the rights of the electing officer under the public employees' retirement fund. Formerly: Acts 1972, P.L.1, SEC.1.

Ind. Code § 5-10-5.5-7 Transfer of creditable service; credit during disability

Sec. 7. (a) Upon election to become a participant by any officer who is a member of the public employees' retirement fund, the board shall transfer all creditable service standing to the credit of the electing officer under the public employees' retirement fund to the credit of the electing officer under the retirement plan created by this chapter. (b) Creditable service under this chapter, including credit for military service, shall accrue and be computed and credited to participants in the same manner and in the same amount as creditable service accrues, is computed and credited under the public employees' retirement law. (c) In addition to creditable service computed under subsection (b), a participant is entitled to receive creditable service under this chapter for the time the participant receives disability benefits under a disability plan established under IC 5-10-8-7. Formerly: Acts 1972, P.L.1, SEC.1. As amended by P.L.180-2007, SEC.1.

Ind. Code § 5-10-5.5-7.5 Purchase of service credit earned in certain Indiana public retirement funds

Sec. 7.5. (a) As used in this section, "board" refers to the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1. (b) As used in this section, "public retirement fund" refers collectively to: (1) the public employees' retirement fund (IC 5-10.3); (2) the Indiana state teachers' retirement fund (IC 5-10.4); (3) the state police pension trust (IC 10-12); and (4) the 1977 police officers' and firefighters' pension and disability fund (IC 36-8-8). (c) Subject to this section, a participant may purchase and claim service credit for the participant's prior service in a position covered by a public retirement fund. (d) To purchase the service credit described in subsection (c), a participant must meet the following requirements: (1) The participant has at least one (1) year of creditable service in the retirement plan created by this chapter. (2) The participant has not attained vested status in and is not an active participant in the public retirement fund from which the participant is purchasing the service credit. (3) Before the participant retires, the participant makes contributions to the retirement plan created by this chapter as follows: (A) Contributions that are equal to the product of the following: (i) The participant's salary at the time the participant actually makes a contribution for the service credit. (ii) A rate, determined by the actuary for the retirement plan created by this chapter, based on the age of the participant at the time the participant actually 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. (iii) The number of years of service credit the participant intends to purchase. (B) Contributions for any accrued interest, at a rate determined by the actuary for the retirement plan created by this chapter, for the period from the participant's initial participation in the retirement plan created by this chapter to the date payment is made by the participant. (e) At the request of the participant purchasing service credit under this section, the amount a participant is required to contribute under subsection (d)(3) may be reduced by a trustee to trustee transfer from a public retirement fund in which the participant has an account that contains amounts attributable to member contributions (plus any credited earnings) to the retirement plan created by this chapter. The participant may direct the transfer of an amount only to the extent necessary to fund the service purchase under subsection (d)(3). The participant shall complete any forms required by the public retirement fund from which the participant is requesting a transfer or the retirement plan created by this chapter before the transfer is made. (f) At least ten (10) years of service in the retirement plan created by this chapter is required before a participant may receive a benefit based on service credit purchased under this section. (g) A participant who: (1) terminates employment before satisfying the eligibility requirements necessary to receive an annual retirement allowance; or (2) receives an annual retirement allowance for the same service from another tax supported governmental retirement plan other than under the federal Social Security Act; may withdraw the purchase amount plus accumulated interest after submitting a properly completed application for a refund to the retirement plan created by this chapter. (h) The following may apply to the purchase of service credit under this section: (1) The board may allow a participant 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 participant may not claim the service credit for purposes of determining eligibility for a benefit or computing benefits unless the participant has made all payments required for the purchase of the service credit. (i) To the extent permitted by the Internal Revenue Code and applicable regulations, the retirement plan created by this chapter may accept, on behalf of a participant 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. (j) To the extent permitted by the Internal Revenue Code and applicable regulations, the retirement plan created by this chapter may accept, on behalf of a participant 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. As added by P.L.180-2007, SEC.2. Amended by P.L.23-2011, SEC.5; P.L.8-2015, SEC.1.

Ind. Code § 5-10-5.5-8 Contributions; rate; payroll deductions; employer pick-up of contributions

Sec. 8. (a) Except as provided in subsection (c), every participant shall contribute four percent (4%) of the participant's annual salary to the participants' savings fund. (b) Contributions shall be made in the form of payroll deductions from each and every payment of salary received by the participant. Every participant shall, as a condition precedent to becoming a participant, consent to the payroll deductions. (c) An employer may pay all or a part of the contributions for the participant. All contributions made by an employer under this subsection shall be treated as pick-up contributions under Section 414(h)(2) of the Internal Revenue Code. (d) After December 31, 2011, an employer shall submit the contributions paid by or on behalf of a participant under this section by electronic funds transfer in accordance with section 8.5 of this chapter. Formerly: Acts 1972, P.L.1, SEC.1. As amended by P.L.180-2007, SEC.3; P.L.13-2011, SEC.1.

Ind. Code § 5-10-5.5-8.5 Submission of contributions, reports, and records electronically

Sec. 8.5. (a) This section applies to reports, records, and contributions submitted after December 31, 2011. (b) As used in this section, "electronic funds transfer" has the meaning set forth in IC 4-8.1-2-7(f). (c) An employer shall submit through the use of electronic funds transfer: (1) employer contributions, determined by the board, to fund the retirement, disability, and survivor benefits described in this chapter; and (2) contributions paid by or on behalf of a participant under section 8 of this chapter. (d) An employer shall submit in a uniform format through a secure connection over the Internet or through other electronic means specified by the board the reports and records required by the board under this chapter. (e) The board shall establish by rule the due dates for all reports, records, and contributions required under this chapter. As added by P.L.13-2011, SEC.2.

Ind. Code § 5-10-5.5-9 Retirement provisions

Sec. 9. (a) Except as provided in subsection (b), every participant is required to retire on the first day of the month following the participant's sixty-fifth birthday. (b) An officer who becomes a participant after becoming fifty (50) years of age is required to retire on the earlier of: (1) the first day of the month following the participant's sixty-fifth birthday; or (2) the first day of the month following the completion of fifteen (15) years of service. Formerly: Acts 1972, P.L.1, SEC.1. As amended by P.L.38-1986, SEC.1; P.L.55-1987, SEC.1; P.L.55-1989, SEC.2; P.L.128-2008, SEC.2.

Ind. Code § 5-10-5.5-10 Retirement allowance

Sec. 10. (a) Benefits provided under this section are subject to section 2.5 of this chapter. (b) Except as provided in section 10.5 of this chapter, the annual retirement allowance of a participant, payable in equal monthly installments beginning on the participant's normal retirement date, shall be a percentage of the participant's average annual salary, such percentage to be twenty-five percent (25%) increased by one and two-thirds percent (1 2/3%) of the participant's average annual salary for each completed year of creditable service more than ten (10) years. However, the annual retirement allowance computed under this subsection may not exceed seventy-five percent (75%) of the participant's average annual salary. (c) The annual retirement allowance under subsection (b) shall cease with the last monthly payment prior to the death of the participant. Formerly: Acts 1972, P.L.1, SEC.1. As amended by P.L.55-1989, SEC.3; P.L.180-2007, SEC.4; P.L.128-2008, SEC.3; P.L.79-2026, SEC.1.

Ind. Code § 5-10-5.5-10.5 Joint and survivor option

Sec. 10.5. (a) This section applies to a participant who retires after June 30, 2026. (b) A participant may elect a joint and survivor option for the payment of the participant's retirement allowance instead of the annual retirement allowance provided under section 10 of this chapter. The amount of the optional payments shall be determined under rules of the board and shall be the actuarial equivalent of the benefit payable under section 10 of this chapter. (c) The following apply to the joint and survivor option under subsection (b): (1) The participant receives a decreased retirement benefit during the participant's lifetime, and there is a benefit payable after the participant's death to a designated beneficiary during the lifetime of the beneficiary, which benefit equals, at the option of the participant, either the full decreased retirement benefit or two-thirds (2/3) or one-half (1/2) of that benefit. (2) If the participant dies before retirement, the designated beneficiary may receive survivors' benefits if the individual is entitled to survivors' benefits under section 16.3 of this chapter. (3) If the designated beneficiary dies before the participant retires, the election is automatically canceled and the participant may make a new beneficiary election. A participant described by this subdivision may elect the joint and survivor option after making a new beneficiary election. As added by P.L.79-2026, SEC.2.

Ind. Code § 5-10-5.5-11 Early retirement

Sec. 11. (a) Any participant who has attained the age of forty-five (45) years and has accrued at least fifteen (15) years of creditable service may retire and become eligible for benefits as provided in section 12(a) of this chapter. (b) If: (1) a participant is at least fifty-five (55) years of age; and (2) the sum of the participant's years of creditable service and age in years equals at least eighty-five (85); the participant may retire and become eligible for benefits as provided in section 12(b) of this chapter. (c) A participant who: (1) is at least fifty (50) years of age; and (2) has accrued at least twenty-five (25) years of creditable service; may retire and become eligible for benefits under section 12(b) of this chapter. Formerly: Acts 1972, P.L.1, SEC.1. As amended by P.L.10-1995, SEC.2; P.L.180-2007, SEC.5.

Ind. Code § 5-10-5.5-12 Early retirement allowance; monthly installments

Sec. 12. (a) The amount of annual retirement allowance payable in equal monthly installments to a participant who retires under section 11(a) of this chapter (relating to early retirement) shall be determined in accordance with section 10 of this chapter (relating to normal retirement). However, the amount of annual retirement allowance otherwise payable upon early retirement shall be reduced by one-quarter percent (1/4%) for each full month that the date of early retirement precedes the attainment of the participant's sixtieth birthday. (b) The amount of annual retirement allowance payable in equal monthly installments to a participant who retires under section 11(b) or 11(c) of this chapter (relating to early retirement) shall be determined in accordance with section 10 of this chapter (relating to normal retirement). Formerly: Acts 1972, P.L.1, SEC.1. As amended by P.L.10-1995, SEC.3; P.L.180-2007, SEC.6; P.L.3-2008, SEC.23.

Ind. Code § 5-10-5.5-12.7 Determinations by board of trustees; impairment standards; transcripts, reports, records, and other materials

Sec. 12.7. (a) Upon a petition from a participant, the department, or the commission, the board of trustees of the Indiana public retirement system, or its designee, shall make the determinations required by section 13 of this chapter and shall also determine: (1) the degree of impairment of any officer determined to have a disability; and (2) whether the disability arose in the line of duty (as defined in section 13.5 of this chapter). (b) The impairment standards contained in the United States Department of Veterans Affairs Schedule for Rating Disabilities in effect at the time the application for disability benefits is filed with the board of trustees shall be used to determine the degree of impairment. (c) To the extent required by the Americans with Disabilities Act, the transcripts, reports, records, and other material generated as a result of a hearing, a review, or an appeal conducted under this chapter to determine the existence of a disability, the cause of a disability, or the degree of impairment shall be: (1) kept in separate medical files for each member; and (2) treated as confidential medical records. As added by P.L.56-1987, SEC.2. Amended by P.L.1-1990, SEC.57; P.L.4-1992, SEC.7; P.L.25-1994, SEC.1; P.L.99-2007, SEC.12; P.L.35-2012, SEC.24.

Ind. Code § 5-10-5.5-13 Permanent or temporary disability

Sec. 13. Any participant who becomes permanently or temporarily disabled from performing all suitable and available work on the force for which he is or may be capable of becoming qualified, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, shall be entitled to disability benefits in the amount provided by this chapter. Benefits may not be provided under this section for any disability: (1) resulting from an intentionally self-inflicted injury or attempted suicide while sane or insane; (2) resulting from the member's commission or attempted commission of a felony; or (3) which begins within two (2) years after a member's entry or reentry into active service on the force and which was caused or contributed to by a mental or physical condition which manifested itself before the member entered or reentered active service. Formerly: Acts 1972, P.L.1, SEC.1. As amended by Acts 1981, P.L.48, SEC.1; P.L.56-1987, SEC.3; P.L.4-1992, SEC.8.

Ind. Code § 5-10-5.5-13.5 Disability occurring after June 30, 1987; presumption for line of duty disability; monthly benefits

Sec. 13.5. (a) This section applies to participants whose disability occurred after June 30, 1987. (b) Benefits provided under this section are subject to section 2.5 of this chapter. (c) As used in this section, a disability is to be considered to have arisen in the line of duty if the disability is the direct result of: (1) a personal injury that occurs while the participant is on duty; or (2) a personal injury that occurs while the participant is off duty and responding to an offense or an emergency or a reported offense or emergency; or if the disability is presumed incurred in the line of duty under IC 5-10-13. (d) A participant whose disability arose in the line of duty is entitled to a monthly benefit equal to the participant's monthly salary on the date of disability multiplied by the degree of impairment (expressed as a percentage impairment of the person as a whole). However, the monthly benefit under this subsection must be at least: (1) twenty percent (20%) of the participant's monthly salary on the date of the disability if the participant has more than five (5) years of service; or (2) ten percent (10%) of the participant's monthly salary on the date of the disability if the participant has five (5) or fewer years of service. (e) A participant whose disability did not arise in the line of duty is entitled to a monthly benefit equal to one-half (1/2) of the participant's monthly salary on the date of disability multiplied by the degree of impairment (expressed as a percentage of the person as a whole). However, the monthly benefit under this subsection must be at least: (1) ten percent (10%) of the participant's monthly salary on the date of the disability if the participant has more than five (5) years of service; or (2) five percent (5%) of the participant's monthly salary on the date of the disability if the participant has five (5) or fewer years of service. (f) A participant who is receiving a disability benefit under subsection (d) is entitled: (1) to receive a disability benefit for the remainder of the participant's life; and (2) to have the participant's benefit recomputed under section 10 of this chapter (relating to normal retirement) when the participant becomes sixty (60) years of age. As added by P.L.56-1987, SEC.4. Amended by P.L.55-1989, SEC.4; P.L.185-2002, SEC.1; P.L.180-2007, SEC.7.

Ind. Code § 5-10-5.5-14 Disability occurring before July 1, 1987; allowance; monthly installments; cessation

Sec. 14. (a) Benefits provided under this section are subject to section 2.5 of this chapter. (b) This subsection applies to participants who were disabled before July 1, 1987. Any participant eligible to receive disability benefits under section 13 of this chapter is entitled to an annual disability allowance payable in equal monthly installments and equal to a percentage of his average annual salary determined in accordance with the provisions of section 10(a) of this chapter (relating to normal retirement). (c) Payment of disability benefits shall begin with the month next succeeding the month in which the participant is determined to be disabled and shall cease: (1) with the last payment prior to the participant's death; or (2) with the last payment before the time the participant is no longer disabled; whichever occurs first. However, after becoming forty-five (45) years of age, a participant receiving a disability benefit may request that the disability benefit payments cease and that any retirement benefit for which the participant is eligible begin. (d) If a member receives disability or retirement benefits from another state funded pension fund, he is not entitled to receive disability benefits under this section. Formerly: Acts 1972, P.L.1, SEC.1. As amended by Acts 1977, P.L.2, SEC.4; Acts 1981, P.L.48, SEC.2; P.L.56-1987, SEC.5; P.L.55-1989, SEC.5; P.L.41-1991, SEC.1.

Ind. Code § 5-10-5.5-15 Surviving mothers, fathers, spouses, or unmarried children; eligibility for benefits

Sec. 15. (a) This subsection applies to participants who die before February 1, 2018. Surviving mothers, fathers, surviving spouses or unmarried children under the age of eighteen (18) years, of participants who have accrued at least fifteen (15) years of creditable service and who die, shall be entitled to receive survivors' benefits in the amount provided in this chapter. Survivors' benefits shall be paid to such of the above enumerated persons as the participant shall nominate by written direction duly acknowledged and filed with the board. (b) This subsection applies to participants who die after January 31, 2018. Only surviving mothers, fathers, surviving spouses, or unmarried children under the age of eighteen (18) years of participants who die are eligible to receive survivors' benefits in the amount provided by this chapter. Survivors' benefits shall be paid to those eligible persons whom the participant nominates by written direction duly acknowledged and filed with the board. Formerly: Acts 1972, P.L.1, SEC.1; Acts 1975, P.L.21, SEC.2. As amended by P.L.136-2018, SEC.34; P.L.6-2020, SEC.3.

Ind. Code § 5-10-5.5-16 Survivors' benefits; death before February 1, 2018; amount

Sec. 16. (a) This section applies to participants who die before February 1, 2018. (b) Benefits provided under this section are subject to section 2.5 of this chapter. (c) A surviving mother or father nominated by the participant to receive survivors' benefits under the provisions of this chapter shall be entitled to an annual survivors' allowance for life equal to fifty percent (50%) of the amount the participant would have been entitled to if the participant had retired. (d) A surviving spouse nominated by the participant to receive survivors' benefits under the provisions of this chapter shall be entitled to an annual survivors' allowance equal to fifty percent (50%) of the amount the participant would have been entitled to if the participant had retired. In the case of a surviving spouse who is more than five (5) years younger than the deceased participant at the time of the participant's death, the amount of the annual survivors' allowance shall be reduced actuarially, without regard to the sex of the spouse or the participant. In all cases the survivors' allowance to a surviving spouse shall cease with the last payment prior to the surviving spouse's death. (e) A surviving child eligible and nominated by the participant to receive survivors' benefits under the provisions of this chapter shall be entitled to an annual survivors' allowance equal to fifty percent (50%) of the amount the participant would have been entitled to if the participant had retired. If more than one (1) surviving child is eligible and nominated to receive survivors' benefits, the annual allowance shall be divided equally between or among such children. In all cases, the survivors' allowance to a child shall cease when the child attains the age of eighteen (18) years or marries, whichever occurs first. Where a survivors' allowance is divided between or among more than one (1) child, and payments to one (1) or more children cease, the total annual allowance payable shall be divided evenly among or between such of the remaining children who are eligible therefor. (f) In the event that no nomination is made by an eligible participant, or in the event that the nominated survivor predeceases the participant and no contingent survivor is nominated and an eligible participant dies, no survivors' allowance shall be payable. In such case, the board shall make a lump sum payment to the estate of the deceased participant equal to the total of all funds standing to the credit of the participant in the participant's savings fund plus accumulated interest thereon. (g) A survivor's allowance under this section that was terminated because of a surviving spouse's remarriage shall be reinstated on July 1, 1997, and continue during the life of the surviving spouse. Formerly: Acts 1972, P.L.1, SEC.1; Acts 1975, P.L.21, SEC.3. As amended by P.L.55-1989, SEC.6; P.L.40-1997, SEC.1; P.L.6-2020, SEC.4.

Ind. Code § 5-10-5.5-16.3 Survivors' benefits; other than line of duty death after January 31, 2018; amount

Sec. 16.3. (a) This section applies to: (1) an active participant, regardless of the participant's years of creditable service; and (2) an inactive participant with at least fifteen (15) years of creditable service; who dies other than in the line of duty after January 31, 2018. Except as provided in section 10.5(c)(2) of this chapter, this section does not apply to a participant who elects the joint and survivor option under section 10.5 of this chapter. (b) Benefits provided under this section are subject to section 2.5 of this chapter. (c) A surviving mother or father nominated by the participant to receive survivors' benefits under the provisions of this chapter is entitled to an annual survivors' allowance for life equal to fifty percent (50%) of the amount to which the participant would have been entitled if the participant had retired with twenty-five (25) years of service at fifty (50) years of age. (d) A surviving spouse nominated by the participant to receive survivors' benefits under the provisions of this chapter is entitled to an annual survivors' allowance equal to fifty percent (50%) of the amount to which the participant would have been entitled if the participant had retired with twenty-five (25) years of service at fifty (50) years of age. A survivors' allowance payable to a surviving spouse under this subsection ends with the last payment before the surviving spouse's death. (e) An eligible surviving child who is nominated by the participant to receive survivors' benefits under this chapter is entitled to an annual survivors' allowance equal to fifty percent (50%) of the amount to which the participant would have been entitled if the participant had retired with twenty-five (25) years of service at fifty (50) years of age. If more than one (1) eligible surviving child is nominated to receive survivors' benefits, the annual survivors' allowance shall be divided equally between or among the eligible surviving children who were nominated to receive survivors' benefits. A survivors' allowance to a child ends when the child attains the age of eighteen (18) years or marries, whichever occurs first. If a survivors' allowance is divided between or among more than one (1) child, and payments to one (1) or more children receiving the survivor's allowance cease because of the age, marriage, or death of the child, the total annual survivors' allowance payable under this subsection shall be divided evenly among or between the surviving children, if any, who remain eligible to receive the survivors' allowance. As added by P.L.6-2020, SEC.5. Amended by P.L.79-2026, SEC.3.

Ind. Code § 5-10-5.5-16.6 Survivors' benefits; line of duty death after January 31, 2018; amount

Sec. 16.6. (a) This section applies to participants who die in the line of duty after January 31, 2018. (b) Benefits provided under this section are subject to section 2.5 of this chapter. (c) A surviving mother or father nominated by the participant to receive survivors' benefits under the provisions of this chapter is entitled to an annual survivors' allowance for life equal to one hundred percent (100%) of the amount to which the participant would have been entitled if the participant had retired with twenty-five (25) years of service at fifty (50) years of age. (d) A surviving spouse nominated by the participant to receive survivors' benefits under the provisions of this chapter is entitled to an annual survivors' allowance equal to one hundred percent (100%) of the amount to which the participant would have been entitled if the participant had retired with twenty-five (25) years of service at fifty (50) years of age. A survivors' allowance payable to a surviving spouse under this subsection ends with the last payment before the surviving spouse's death. (e) An eligible surviving child who is nominated by the participant to receive survivors' benefits under this chapter is entitled to an annual survivors' allowance equal to one hundred percent (100%) of the amount to which the participant would have been entitled if the participant had retired with twenty-five (25) years of service at fifty (50) years of age. If more than one (1) eligible surviving child is nominated to receive survivors' benefits, the annual survivors' allowance shall be divided equally between or among the eligible surviving children who were nominated to receive survivors' benefits. A survivors' allowance to a child ends when the child attains the age of eighteen (18) years or marries, whichever occurs first. If a survivors' allowance is divided between or among more than one (1) child, and payments to one (1) or more children receiving the survivor's allowance cease because of the age, marriage, or death of the child, the total annual survivors' allowance payable under this subsection shall be divided evenly among or between the surviving children, if any, who remain eligible to receive the survivors' allowance. As added by P.L.6-2020, SEC.6.

Ind. Code § 5-10-5.5-17 Lump sum refund of contributions or payments

Sec. 17. (a) Any participant whose employment as an officer is terminated before accumulating fifteen (15) years of creditable service and is not receiving a disability benefit under this chapter shall be entitled to a lump-sum refund of all contributions standing to the participant's credit in the participants' savings fund plus accumulated interest thereon. (b) This subsection applies to participants who die before February 1, 2018. If a participant dies before accumulating fifteen (15) years of creditable service, all contributions standing to the participant's credit in the participants' savings fund plus the accumulated interest thereon shall be paid by the board to the person the participant shall nominate by written direction duly acknowledged and filed with the board. The payment may be in the form of a lump sum or a series of payments, at the discretion of the board. (c) If a participant dies before accumulating fifteen (15) years of creditable service and has nominated no beneficiary, or in the event that the participant's nominee predeceases the participant, all contributions standing to the participant's credit in the participants' savings fund, plus accumulated interest thereon shall be paid by the board to the estate of the deceased participant. The payment may be in the form of a lump sum or a series of payments, at the discretion of the board. (d) If a participant terminates the participant's employment after accumulating fifteen (15) years of creditable service, but before becoming eligible for any benefits under this chapter, no refund of contributions and interest shall be allowed. In such case, the participant's contributions shall be retained by the board until the participant becomes eligible for benefits. At that time, benefits shall be paid to, or on behalf of the participant in the same manner and in the same amount as all similar benefits are paid. Formerly: Acts 1972, P.L.1, SEC.1. As amended by P.L.6-2020, SEC.7; P.L.32-2021, SEC.8.

Ind. Code § 5-10-5.5-18 Termination of service before accumulating 15 years of creditable service

Sec. 18. Any participant who terminates his service as an officer before accumulating fifteen (15) years of creditable service may, in the manner and under the conditions provided in the public employees' retirement law, again become a member of the public employees' retirement fund. Upon payment of contributions and interest required by the board, the withdrawing participant shall be entitled to transfer creditable service standing to his credit under this chapter to his credit under the public employees' retirement law. Formerly: Acts 1972, P.L.1, SEC.1.

Ind. Code § 5-10-5.5-19 Public employees retirement fund law; applicability

Sec. 19. The retirement plan created by this chapter shall, in all respects to the extent applicable and except as otherwise specifically enumerated in this chapter, be governed by the law creating the public employees' retirement fund, and for that purpose, the provisions of IC 5-10.3 are hereby incorporated into this chapter by reference. Formerly: Acts 1972, P.L.1, SEC.1. As amended by P.L.25-1986, SEC.28.

Ind. Code § 5-10-5.5-20 Old age and survivors benefits; supplemental retirement benefits; rights and liabilities not affected

Sec. 20. Participation in the retirement plan created by this chapter shall not affect the participant's rights and liabilities under the provisions of IC 5-10.1, IC 5-10.2, and IC 5-10.3. Formerly: Acts 1972, P.L.1, SEC.1. As amended by P.L.25-1986, SEC.29.

Ind. Code § 5-10-5.5-21 Increase in monthly benefits

Sec. 21. (a) Except as provided in subsection (d), the monthly benefit payable after June 30, 1987, to a participant, or a survivor or beneficiary of a participant, who retired or was disabled before July 2, 1986, shall be increased by an amount determined by the board. The board shall determine the amount for each participant, survivor, and beneficiary so that the monthly benefit is increased by one-half (1/2) the amount that the monthly benefit would have been increased if the participant had been a member of the public employees' retirement fund on the date of retirement or disability. (b) Except as provided in subsection (d), the monthly benefit payable after June 30, 1988, to a participant, or a survivor or beneficiary of a participant, who retired or was disabled before July 2, 1987, shall be increased by an amount determined by the board. The board shall determine the amount for each participant, survivor, and beneficiary so that the monthly benefit is increased to the amount that the monthly benefit would have equaled if the participant had been a member of the public employees' retirement fund on the date of retirement or disability. (c) Except as provided in subsection (d), the monthly benefit payable after June 30, 1989, to participants, survivors, and beneficiaries shall be increased by the same percentages and under the same conditions as monthly benefits are increased under IC 5-10.2-5 for members of the public employees' retirement fund and their survivors and beneficiaries. (d) This section is applicable only if the general assembly provides sufficient funding for the increased cost of the benefits provided by this section. As added by P.L.56-1987, SEC.6. Amended by P.L.4-1990, SEC.4.

Ind. Code § 5-10-5.5-22 Deferred retirement option plan

Sec. 22. (a) As used in this section, "DROP" refers to a deferred retirement option plan established under this section. (b) As used in this section, "DROP entry date" means the date that a participant's election to enter a DROP becomes effective. (c) As used in this section, "DROP frozen benefit" refers to an annual retirement allowance computed under section 10 of this chapter based on a participant's: (1) average annual salary; and (2) years of creditable service; on the date the participant enters the DROP. (d) As used in this section, "DROP retirement date" means the future retirement date selected by a participant at the time the participant elects to enter the DROP. (e) Only a participant who is eligible to receive an unreduced annual retirement allowance immediately upon termination of employment may elect to enter a DROP. A participant who elects to enter the DROP shall do the following: (1) Agree to the following: (A) The participant shall execute an irrevocable election to retire on the DROP retirement date and must remain in active service until that date. (B) While in the DROP, the participant shall continue to make contributions under section 8 of this chapter. (C) The participant shall select a DROP retirement date not less than twelve (12) months and not more than: (i) thirty-six (36) months after the participant's DROP entry date, for a participant who executes an election described in clause (A) before July 1, 2024; or (ii) sixty (60) months after the participant's DROP entry date, for a participant who executes an election described in clause (A) after June 30, 2024. (D) The participant may not remain in the DROP after the date the participant reaches the mandatory retirement age under section 9 of this chapter. (E) The participant may make an election to enter the DROP only once in the participant's lifetime. (2) Notify the participant's employer of the DROP election within thirty (30) days of the election. (f) Notwithstanding subsection (e), a participant that entered the DROP before July 1, 2024, and that has not exited the DROP may elect to extend the participant's DROP retirement date up to sixty (60) months after the participant's DROP entry date. (g) A participant that makes the election described in subsection (f) shall notify the participant's employer within thirty (30) days of the election. (h) Contributions or payments provided by the general assembly under section 4(b)(4) of this chapter continue for a participant while the participant is in the DROP. (i) A participant shall exit the DROP on the earliest of the following: (1) The participant's DROP retirement date. (2) Either: (A) thirty-six (36) months after the participant's DROP entry date, if the participant: (i) executes an election described in subsection (e) before July 1, 2024; and (ii) does not execute an extension described in subsection (f); or (B) sixty (60) months after the participant's DROP entry date, if the participant: (i) executes an election described in subsection (e) after June 30, 2024; or (ii) executes an extension described in subsection (f). (3) The participant's mandatory retirement age. (4) The date the participant retires because of a disability as provided by subsection (m). (j) A participant who retires on the participant's DROP retirement date or on the date the participant retires because of a disability as provided by subsection (m) may elect to receive an annual retirement allowance: (1) computed under section 10 of this chapter as if the participant had never entered the DROP; or (2) consisting of: (A) the DROP frozen benefit; plus (B) an additional amount, paid as the participant elects under subsection (k), determined by multiplying: (i) the DROP frozen benefit; by (ii) the number of months the participant was in the DROP. (k) The participant shall elect, at the participant's retirement, to receive the additional amount calculated under subsection (j)(2)(B) in one (1) of the following ways: (1) A lump sum paid on: (A) the participant's DROP retirement date; or (B) the date the participant retires because of a disability as provided by subsection (m). (2) Three (3) equal annual payments: (A) commencing on: (i) the participant's DROP retirement date; or (ii) the date the participant retires because of a disability as provided by subsection (m); and (B) thereafter paid on: (i) the anniversary of the participant's DROP retirement date; or (ii) the date the participant retires because of a disability as provided by subsection (m). (l) A cost of living increase determined under section 21(c) of this chapter does not apply to the additional amount calculated under subsection (j)(2)(B) at the participant's DROP retirement date or the date the participant retires because of a disability as provided by subsection (m). No cost of living increase is applied to a DROP frozen benefit while the participant is in the DROP. After the participant's DROP retirement date or the date the participant retires because of a disability as provided by subsection (m), cost of living increases determined under section 21(c) of this chapter apply to the participant's annual retirement allowance computed under this section. (m) If a participant becomes disabled, in the line of duty or other than in the line of duty while in the DROP, the participant's annual retirement allowance is computed as follows: (1) If the participant retires because of a disability less than twelve (12) months after the date the participant enters the DROP, the participant's annual retirement allowance is calculated as if the participant had never entered the DROP. (2) If the participant retires because of a disability at least twelve (12) months after the date the participant enters the DROP, the participant's annual retirement allowance is calculated under this section, and the participant's retirement date is the date the member retires because of a disability rather than the participant's DROP retirement date. (n) If, before payment of the participant's annual retirement allowance begins, the participant dies in the line of duty or other than in the line of duty, death benefits are payable to the participant's surviving spouse. If there is no surviving spouse, the death benefits must be divided equally among the participant's surviving children. If there are no surviving children, the death benefits are paid to the participant's parents. If there are no surviving parents, the death benefits are paid to the participant's estate. The death benefits are determined as follows: (1) If the participant dies less than twelve (12) months after the date the participant enters the DROP, the death benefits are calculated as if the participant had never entered the DROP. (2) If the participant dies at least twelve (12) months after the date the participant enters the DROP, the death benefits consist of both of the following: (A) At the election of the survivor or survivors to whom the benefit is payable, the benefit calculated under subsection (j)(2)(B) is paid in either: (i) a lump sum; or (ii) three (3) equal annual payments, the first as soon as practicable after the date of the participant's death, the second on the first anniversary of the participant's death, and the third on the second anniversary of the participant's death. (B) A benefit is paid on the DROP frozen benefit under the terms of the retirement plan created by this chapter. (o) Except as provided under subsections (m) and (n), the annual retirement allowance for a participant who exits the DROP for any reason other than retirement on the participant's DROP retirement date is calculated as if the participant had never entered the DROP. As added by P.L.128-2008, SEC.4. Amended by P.L.145-2020, SEC.2; P.L.129-2024, SEC.2; P.L.136-2024, SEC.2.

Ind. Code § 5-10-5.5-23 Voluntary benefit deductions

Sec. 23. (a) Notwithstanding any other provision of this chapter, a participant, survivor, or beneficiary receiving a monthly benefit under this chapter may, after June 30, 2017, authorize the board to make a deduction from the monthly benefit. (b) An authorization for a deduction from a monthly benefit paid under this chapter is valid only if all of the following requirements are met: (1) The authorization is: (A) in writing; (B) signed personally by the individual receiving the monthly benefit; (C) revocable at any time by the individual receiving the monthly benefit upon written notice to the board; and (D) agreed to in writing by the board. (2) An executed copy of the authorization is delivered to the board not later than ten (10) days after its execution. (3) The deduction is made for a purpose described in subsection (c). (c) A deduction under this section may be made for the purpose of paying any of the following: (1) A premium on a policy of insurance for life, medical, surgical, hospitalization, dental, vision, long term care, or Medicare supplement coverage offered to retired participants by the participant's former employer, the state, or the board. (2) Dues payable by the individual receiving the benefit to a labor organization of which the individual is a member. As added by P.L.41-2017, SEC.1. Amended by P.L.179-2018, SEC.3.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026

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