CHAPTER 4. THE STATE POLICE 1987 BENEFIT SYSTEM
IC 10-12-4
Chapter 4. The State Police 1987 Benefit System
IC 10-12-4-1
Application of chapter; election of coverage
Sec. 1. (a) This chapter applies only to an employee beneficiary
who:
(1) is hired for the first time after June 30, 1987; or
(2) chooses coverage by this chapter under subsection (b).
(b) Subject to subsection (c), an employee beneficiary who is
hired for the first time before July 1, 1987, may choose to be covered
by this chapter instead of IC 10-12-3 if the employee files an election
with the trustee before July 1, 1988. An election filed under this
subsection is irrevocable and, except as provided in subsection (d),
takes effect after twelve (12) months of service as an eligible
employee following the filing of the election.
(c) This chapter is applicable only if the general assembly
provides sufficient funding for the increased cost of the benefits
provided by this chapter. If this chapter is not applicable, then
IC 10-12-3 applies to all employee beneficiaries regardless of when
hired for the first time.
(d) If an employee beneficiary's mandatory retirement date occurs
during the twelve (12) months following the filing of an election
under subsection (b), the election takes effect only if:
(1) the employee beneficiary serves as an eligible employee
until the mandatory retirement date; and
(2) the employee beneficiary pays to the trust fund a lump sum
equal to the remaining deductions that would have been made
from the employee beneficiary's wages under this chapter
during the twelve (12) months following the election if the
employee beneficiary had not retired.
The election takes effect on the mandatory retirement date or the date
when the lump sum payment is made, whichever is later.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-2
Limitations on trust
Sec. 2. The pension trust for employee beneficiaries covered by
this chapter is subject to limitations specified in this chapter.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-3
Retirement age
Sec. 3. The normal retirement age for an employee beneficiary
must be established by the pension trust.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-4
Deductions from wages
Sec. 4. An employee beneficiary shall contribute to the trust fund,
by monthly deduction, six percent (6%) of the employee beneficiary's
wages (excluding payments for overtime and determined without
regard to any salary reduction agreement established under Section
125 of the Internal Revenue Code).
As added by P.L.2-2003, SEC.3.
IC 10-12-4-5
Years of service for full pension amount; proportionate amount;
beginning of payments
Sec. 5. (a) An employee beneficiary who has completed
twenty-five (25) years of service with the department is entitled to
the full amount of the basic pension amount specified in section 7 of
this chapter.
(b) An employee beneficiary who has completed less than
twenty-five (25) years of service is entitled to a proportionate amount
of the basic pension amount specified in section 7 of this chapter,
based upon the employee beneficiary's years of service to the
department. However, benefit payments to an employee beneficiary
with less than twenty-five (25) years of service may not begin until
the first day of the month on or after the date on which:
(1) the employee beneficiary becomes fifty (50) years of age; or
(2) the employee beneficiary retires;
whichever is later.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-6
Right to net amount paid into fund from wages
Sec. 6. If an employee beneficiary ends employment for any
reason before qualifying for a benefit under this chapter, the trustee
shall pay to:
(1) the employee beneficiary;
(2) the employee beneficiary's beneficiary; or
(3) the employee beneficiary's estate;
the net amount paid into the trust fund from the employee
beneficiary's wages. This amount may be paid in a lump sum or in
monthly installments not less than the basic pension amount.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-7
Basic monthly pension amount; additional benefits
Sec. 7. (a) Benefits provided under this section are subject to
IC 10-12-2-3.
(b) Except as provided in subsection (c), the basic monthly
pension amount of an employee beneficiary may not exceed one-half
(1/2) of the employee beneficiary's average monthly wage (excluding
payments for overtime and determined without regard to any salary
reduction agreement established under Section 125 of the Internal
Revenue Code) received during the highest paid consecutive
thirty-six (36) months before retirement.
(c) For an employee beneficiary who retires after June 30, 1987,
and before July 1, 1988, the basic monthly pension may not exceed
the lesser of:
(1) the pension under subsection (b); or
(2) one-half (1/2) the maximum salary of a first sergeant.
(d) For an employee beneficiary who retires after June 30, 1988,
and before July 1, 1989, the basic monthly pension may not exceed
the lesser of:
(1) the pension under subsection (b); or
(2) one-half (1/2) the maximum salary of a captain.
(e) An employee beneficiary in the active service of the
department who has completed twenty-five (25) years of service after
July 1, 1937, and who continues after July 1, 1937, in the service of
the department is entitled to add to the basic monthly pension
amount, at retirement, the following:
(1) Five percent (5%) of the basic amount for each of the next
three (3) full years over twenty-five (25) years.
(2) Six percent (6%) of the basic amount for each of the next
two (2) full years over twenty-eight (28) years.
(3) Seven percent (7%) of the basic amount for each of the next
two (2) full years over thirty (30) years.
(4) Eight percent (8%) of the basic amount for each of the next
two (2) full years over thirty-two (32) years.
However, the total of these additional amounts may not exceed
seventy percent (70%) of the basic pension amount. These additional
benefits are subject to any compulsory retirement age provided by
the pension trust.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-8
Increase in pension to certain individuals
Sec. 8. (a) The basic monthly pension payable under section 7 of
this chapter after June 30, 1995, to a member of the pension trust
who retired after June 30, 1987, and before July 1, 1990, shall be
increased by thirty-nine dollars ($39).
(b) The department shall pay into the trust fund an amount
sufficient to pay the increased benefits granted under this section.
The trustee shall pay the increase in the monthly benefit required by
this section from money in the trust fund.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-9
Benefit increase payable after June 30, 2007
Sec. 9. (a) The basic monthly pension amount (plus postretirement
increases) payable after June 30, 2007, to an employee beneficiary
of the state police 1987 benefit system who retired or was disabled
after June 30, 1987, and before July 2, 2005, shall be increased by
one percent (1%) of the maximum basic monthly pension amount
payable to a retired state police employee in the grade of a trooper
who has completed twenty-five (25) years of service as of July 1,
2007, as calculated under section 7 of this chapter.
(b) The increases specified in this section:
(1) shall be based on the date of the employee beneficiary's
latest retirement or disability;
(2) do not apply to the benefits payable in a lump sum; and
(3) are in addition to any other increase provided by law.
As added by P.L.189-2007, SEC.2.
IC 10-12-4-10
Benefit increase payable after June 30, 2008
Sec. 10. (a) The basic monthly pension amount (plus
postretirement increases) payable after June 30, 2008, to an
employee beneficiary of the state police 1987 benefit system who
retired or was disabled after June 30, 1987, and before July 2, 2006,
shall be increased by one percent (1%) of the maximum basic
monthly pension amount payable to a retired state police employee
in the grade of trooper who has completed twenty-five (25) years of
service as of July 1, 2007, as calculated under section 7 of this
chapter.
(b) The increases specified in this section:
(1) shall be based on the date of the employee beneficiary's
latest retirement or disability;
(2) do not apply to the benefits payable in a lump sum; and
(3) are in addition to any other increase provided by law.
As added by P.L.189-2007, SEC.3.