CHAPTER 7. 1937 FIREFIGHTERS' PENSION FUND
IC 36-8-7
Chapter 7. 1937 Firefighters' Pension Fund
IC 36-8-7-1
Application of chapter
Sec. 1. (a) This chapter applies to pension benefits for members
of fire departments hired before May 1, 1977, in units for which a
1937 fund was established before May 1, 1977.
(b) A firefighter with twenty (20) years of service is covered by
this chapter and not by IC 36-8-8 if the firefighter:
(1) was hired before May 1, 1977;
(2) did not convert under IC 19-1-36.5-7 (repealed September
1, 1981); and
(3) is rehired after April 30, 1977, by the same employer.
(c) A firefighter is covered by this chapter and not by IC 36-8-8
if the firefighter:
(1) was hired before May 1, 1977;
(2) did not convert under IC 19-1-36.5-7 (repealed September
1, 1981);
(3) was rehired after April 30, 1977, but before February 1,
1979; and
(4) was made, before February 1, 1979, a member of a 1937
fund.
(d) A firefighter who:
(1) is covered by this chapter before a consolidation under
IC 36-3-1-6.1; and
(2) becomes a member of a fire department of a consolidated
city under IC 36-3-1-6.1;
is covered by this chapter after the effective date of the
consolidation, and the firefighter's service as a member of a fire
department of a consolidated city is considered active service under
this chapter.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.3-1990,
SEC.130; P.L.170-2002, SEC.162; P.L.227-2005, SEC.39.
IC 36-8-7-2
"Fire company" defined
Sec. 2. As used in this chapter, "fire company" means each
organization or group doing duty as part of the fire department,
including engine companies, hose companies, those in the telephone
or telegraph service, inspectors, mechanics, watchmen, and others in
charge of apparatus for extinguishing fires.
As added by Acts 1981, P.L.309, SEC.57.
IC 36-8-7-2.5
Qualification of 1937 fund under Internal Revenue Code; benefit
limitations
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 1937 fund shall satisfy the qualification requirements in
Section 401 of the Internal Revenue Code, as applicable to the 1937
fund. In order to meet those requirements, the 1937 fund is subject
to the following provisions, notwithstanding any other provision of
this chapter:
(1) The local board shall distribute the corpus and income of the
1937 fund to members and their beneficiaries in accordance
with this chapter.
(2) No part of the corpus or income of the 1937 fund may be
used or diverted to any purpose other than the exclusive benefit
of the members 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 member would otherwise receive under this chapter.
(4) If the 1937 fund is terminated, or if all contributions to the
1937 fund are completely discontinued, the rights of each
affected member 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 1937 fund 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 1937 fund is subject to
the following provisions:
(A) The life expectancy of a member, the member's spouse,
or the member's beneficiary shall not be recalculated after
the initial determination, for purposes of determining
benefits.
(B) If a member dies before the distribution of the member'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 member died.
(C) The amount of an annuity paid to a member's beneficiary
may not exceed the maximum determined under the
incidental death benefit requirement of the Internal Revenue
Code.
(6) The local board may not:
(A) determine eligibility for benefits;
(B) compute rates of contribution; or
(C) compute benefits of members or beneficiaries;
in a manner that discriminates in favor of members 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 local board may not engage in a transaction prohibited
by Section 503(b) of the Internal Revenue Code.
(c) Notwithstanding any other provision of this chapter, and solely
for the purposes of the benefits provided under this chapter, the
benefit limitations of Section 415 of the Internal Revenue Code shall
be determined by applying the provisions of Section 415(b)(10) of
the Internal Revenue Code, as amended by the Technical and
Miscellaneous Revenue Act of 1988. This section constitutes an
election under Section 415(b)(10)(C) of the Internal Revenue Code
to have Section 415(b) of the Internal Revenue Code, other than
Section 415(b)(2)(G) of the Internal Revenue Code, applied without
regard to Section 415(b)(2)(F) of the Internal Revenue Code to
anyone who did not first become a participant before January 1,
1990.
As added by P.L.55-1989, SEC.52. Amended by P.L.4-1990, SEC.16.
IC 36-8-7-2.7
"Americans with Disabilities Act"
Sec. 2.7. As used in this chapter, "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.
As added by P.L.4-1992, SEC.36.
IC 36-8-7-2.9
Administration of fund
Sec. 2.9. The 1937 fund 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.37.
IC 36-8-7-3
Creation of fund; management by board of trustees; powers and
duties
Sec. 3. (a) A firefighters' pension fund to be known as the 1937
fund is established in each unit described by section 1(a) of this
chapter.
(b) The 1937 fund shall be managed by a board of trustees
(referred to as the "local board" in this chapter) composed of seven
(7) trustees. Two (2) trustees are the executive of the unit and the fire
chief, who are ex officio voting trustees. The other trustees are one
(1) retired member of the fire department and four (4) active
members of the fire department elected for the terms and in the
manner provided in this chapter.
(c) The local board has control of the 1937 fund of the unit. The
local board shall manage, use, and disburse the fund for the purpose
and in the manner prescribed by this chapter. The local board may
adopt and enforce bylaws that do not conflict with this chapter and
are considered necessary to enable it to achieve the purposes for
which it was organized. Each trustee shall, before entering upon the
duties of his office, take an oath to faithfully perform his duties.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.236-1996,
SEC.3.
IC 36-8-7-4
Fire departments with fewer than five members; trustees; elections
Sec. 4. (a) If a unit has less than five (5) members in its fire
department, the unit may provide for the organization of a local
board consisting of the fire chief, the executive of the unit, and one
(1) member of the fire department.
(b) The trustee from the fire department shall be elected under this
section.
(c) The local board may amend the bylaws of the fund to elect the
trustee from the fire department in an election held on any three (3)
consecutive days in February specified in the bylaws. The election
shall be called by the fire chief and held at the house or quarters of
the fire department. Subject to this section, the election shall be
conducted in the manner specified in the bylaws.
(d) This subsection applies only if the local board does not elect
to be governed by subsection (c). The trustee from the fire
department shall be elected at a meeting held on the second Monday
in February each year. The meeting shall be called by the fire chief
and held at the house or quarters of the fire department.
(e) The term of the elected trustee is one (1) year beginning
immediately after the trustee's election.
(f) Each member of the department is entitled to one (1) ballot and
the person receiving the highest number of votes is elected. The
executive of the unit, the fire chief, and the city or county clerk shall
canvass and count the ballots, and the clerk shall issue a certificate
of election to the person having received the highest number of votes.
If two (2) persons have received the same number of votes, the
executive and the chief shall immediately determine by lot who will
be the trustee from the persons receiving an equal number of votes.
(g) This section does not apply to a township if the fire
department of the township is consolidated under IC 36-3-1-6.1.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.170-1994,
SEC.1; P.L.227-2005, SEC.40.
IC 36-8-7-5
Trustees; election of active members
Sec. 5. (a) An election shall be held each year under this section
to elect one (1) trustee from the active members of the fire
department for a term of four (4) years, commencing on the day of
his election. The fire chief shall fix a time for holding a convention
to nominate candidates for trustees to be elected at each election.
Each convention must be held at least five (5) days before the day on
which the annual election is held. A convention consists of one (1)
delegate from each fire company and one (1) delegate to be selected
by the chief and the chief's assistants. The delegate from each fire
company shall be elected by ballot by the members of the company
at a time to be fixed by the chief in the call for a convention. The
election of delegates shall be certified by the captain or other officer
of the company, or, if there is not an officer present, then by the
oldest member of the company present. The convention, when
assembled, shall nominate six (6) members of the fire department to
be voted upon as trustees, and the delegates shall report the names of
the persons nominated as candidates to their respective companies in
writing.
(b) The local board may amend the bylaws of the fund to elect the
trustee from the active members of the fire department in an election
held on any three (3) consecutive days in February specified in the
bylaws. The election shall be called by the fire chief and held at the
house or quarters of the respective companies of the fire department.
Subject to this section, the election shall be conducted in the manner
specified in the bylaws.
(c) This subsection applies only if the local board does not elect
to be governed by subsection (b). The election shall be held at the
houses or quarters of the respective companies on the second
Monday in February between 9 a.m. and 6 p.m.
(d) Each member of a fire company is entitled to one (1) ballot,
and the ballot may not contain the names of more than one (1)
person, chosen from the six (6) persons nominated by the convention.
The candidate receiving the highest number of votes is elected.
(e) The captain or other officer in command of each of the fire
companies, immediately after the casting of all ballots, shall canvass
and count the ballots. The captain or other officer shall certify in
writing the total number of ballots cast and the number of votes
received by each candidate for the office of trustee. After signing the
certificate, the officer shall enclose it, together with all the ballots
cast by the fire company, in an envelope, securely sealed and
addressed, and deliver them to the fire chief. The fire chief shall
deliver them to the executive of the unit as soon as the chief receives
all the certificates and ballots. Upon receipt the executive shall, in
the presence of the chief and the clerk of the unit, open the
envelopes, examine the certificates, and determine the total number
of votes cast for each of the candidates. The executive shall then
issue a certificate of election to the candidate having received the
highest number of votes. If two (2) or more candidates have received
the same number of votes, the executive and the chief shall
immediately determine by lot who will be trustee from the persons
receiving an equal number of votes. An election may not be set aside
for lack of formality in balloting by the members or in certifying or
transmitting the returns of an election by the officers in charge.
(f) This section does not apply to a township if the fire department
of the township is consolidated under IC 36-3-1-6.1.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.170-1994,
SEC.2; P.L.227-2005, SEC.41.
IC 36-8-7-6
Trustees; election of retired members
Sec. 6. (a) An election shall be held under this section every two
(2) years to elect one (1) trustee from the retired members of the fire
department for a term of two (2) years, commencing on the day of
the trustee's election, if the retired list contains at least three (3)
retired members at the time of election. The fire chief shall fix a time
for holding a convention to nominate candidates for trustee to be
elected at each election. Each convention must be held at least fifteen
(15) days before the day on which the biennial election is held. All
retired members of the fire department may participate in the
convention. The convention, when assembled, shall nominate not
more than four (4) members of the retired list to be voted upon as
trustee. The secretary of the board shall mail the names of the
persons nominated along with an official ballot to the retired
members within forty-eight (48) hours of the end of the convention.
(b) The election shall be conducted by mail. Each retired member
is entitled to cast one (1) ballot by mail and the ballot may not
contain more than one (1) name, chosen from the list of retired
persons nominated by the convention. The candidate receiving the
highest number of votes by 6 p.m. on the second Monday in February
or an alternative date in February specified in the bylaws of the fund
is elected.
(c) The ballots must remain closed and inviolate until the close of
the election, at which time, in the presence of the executive of the
unit, the fire chief, and the clerk of the unit, the ballots shall be
opened and counted. A certificate of election shall be issued to the
candidate receiving the highest number of votes. If two (2) or more
candidates receive the same number of votes, the executive and the
chief shall immediately determine by lot who will be trustee from the
persons receiving an equal number of votes.
(d) This section does not apply to a township if the fire
department of the township is consolidated under IC 36-3-1-6.1.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.170-1994,
SEC.3; P.L.227-2005, SEC.42.
IC 36-8-7-6.5
Securing ballots; tampering with ballots
Sec. 6.5. (a) All ballots voted under this chapter shall be secured
until the balloting is closed.
(b) Tampering with a ballot for an election under this chapter is
a Class A infraction.
(c) This section does not apply to a township if the fire
department of the township is consolidated under IC 36-3-1-6.1.
As added by P.L.170-1994, SEC.4. Amended by P.L.227-2005,
SEC.43.
IC 36-8-7-7
Trustees; officers; adoption of rules; duty to hear applications for
pensions
Sec. 7. (a) The fire chief is the president of the local board.
(b) At the first meeting after each election, the local board shall
elect a secretary, who may be chosen from among the trustees.
However, the local board may consider it proper to have a secretary
who is a member of the fire department, to be elected by the
companies for a term of four (4) years in the same manner as the
election for trustees. The secretary shall keep a full record of all the
proceedings of the local board in a book provided for that purpose.
(c) The local board shall make all rules necessary for the
discharge of its duties and shall hear and determine all applications
for relief or pensions under this chapter.
(d) This section does not apply to a township if the fire
department of the township is consolidated under IC 36-3-1-6.1.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.227-2005,
SEC.44.
IC 36-8-7-8
Derivation of money in fund
Sec. 8. The 1937 fund is derived from the following sources:
(1) From all money and other property that is given to the local
board or 1937 fund for the uses and purposes for which the fund
is created. The local board may take by gift, grant, devise, or
bequest any money, personal property, real estate, or an interest
in it. The gift, grant, devise, or bequest may be absolute or in
fee simple or upon the condition that only the rents, income, or
profits arising from it may be applied to the purposes for which
the fund is established.
(2) All money, fees, rewards, or emoluments that are paid,
given, devised, or bequeathed to the fire department or one (1)
of the fire companies.
(3) All money accruing as interest on the securities or
investments that are owned by and held in the name of the local
board.
(4) All money received by the local board from the sale or by
the maturity of securities or investments owned by the local
board.
(5) An assessment made during the period of his employment
or for thirty-two (32) years, whichever is shorter, on the salary
of each member equal to six percent (6%) of the salary of a
fully paid first class firefighter. However, the employer may pay
all or a part of the assessment for the member. The secretary of
the fire department, or the person whose duty it is to make out
the payrolls, shall place on the payroll opposite the name of
every member the amount of assessment on his salary. The
unit's fiscal officer shall deduct monthly from the salary of
every member the sum listed opposite his name, other than any
amount paid on behalf of the member, and shall credit that
amount to the 1937 fund. Except to the extent the assessment is
paid on behalf of the member, every person who becomes a
member of the fire department is liable for the assessment and
is conclusively considered to agree to pay it by having it
deducted from his salary as required in this section.
(6) Appropriations that are made for the fund by the unit's fiscal
body.
As added by Acts 1981, P.L.309, SEC.57. Amended by Acts 1981,
P.L.182, SEC.6; P.L.312-1989, SEC.2.
IC 36-8-7-9
Use of funds
Sec. 9. The 1937 fund and the appropriations made for the fund
shall be used exclusively for the following:
(1) Payments to retired members and the dependents of
deceased members.
(2) Death benefits.
(3) Other incidental expenses that are authorized by and are
essential to the proper administration of this chapter, including
the payment of all costs of litigation (including attorney's fees)
arising in connection with the 1937 fund.
(4) Payments described in section 9.5 of this chapter.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.349-1987,
SEC.1; P.L.182-2009(ss), SEC.429.
IC 36-8-7-9.5
Use of certain amounts in 1937 fund
Sec. 9.5. (a) This section applies to a balance in a 1937 fund that:
(1) accrued from property taxes;
(2) is not necessary to meet the pension, disability, and survivor
benefit payment obligations of the 1937 fund because of
amendments to IC 5-10.3-11-4.7 in 2008; and
(3) is determined under subsection (c).
(b) A local board may authorize the use of money in the 1937
fund to pay any or all of the following:
(1) The costs of health insurance or other health benefits
provided to members, survivors, and beneficiaries of the 1937
fund.
(2) The unit's employer contributions under IC 36-8-8-6.
(3) The contributions paid by the unit for a member under
IC 36-8-8-8(a).
(c) The maximum amount that may be used under subsection (b)
is equal to the sum of the following:
(1) the unencumbered balance of the 1937 fund on December
31, 2008; plus
(2) the amount of property taxes:
(A) imposed for an assessment date before January 16, 2008,
for the benefit of the 1937 fund; and
(B) deposited in the 1937 fund after December 31, 2008.
As added by P.L.182-2009(ss), SEC.430.
IC 36-8-7-10
Investment of funds
Sec. 10. (a) The local board shall determine how much of the
1937 fund may be safely invested and how much should be retained
for the needs of the fund. Investments are restricted to the following:
(1) Interest bearing direct obligations of the United States or of
the state or bonds lawfully issued by an Indiana political
subdivision. The securities shall be deposited with and must
remain in the custody of the treasurer of the local board, who
shall collect the interest on them as it becomes due and payable.
(2) Savings deposits or certificates of deposit of a chartered
national, state, or mutual bank whose deposits are insured by a
federal agency. However, deposits may not be made in excess
of the amount of insurance protection afforded a member or
investor of the bank.
(3) Shares of a federal savings association organized under 12
U.S.C. 1461, as amended, and having its principal office in
Indiana, or of a savings association organized and operating
under Indiana statutes whose accounts are insured by a federal
agency. However, shares may not be purchased in excess of the
amount of insurance protection afforded a member or investor
of the association.
(4) An investment made under IC 5-13-9.
(b) All securities must be kept on deposit with the unit's fiscal
officer, who shall collect all interest due and credit it to the 1937
fund.
(c) The fiscal officer shall keep a separate account of the 1937
fund and shall fully and accurately set forth a statement of all money
received and paid out by him. The officer shall, on the first Monday
of January and June of each year, make a report to the local board of
all money received and distributed by him. The president of the local
board shall execute the officer's bond in the sum that the local board
considers adequate, conditioned that the fiscal officer will faithfully
discharge the duties of the fiscal officer's office and faithfully
account for and pay over to the persons authorized to receive it all
money that comes into the fiscal officer's hands by virtue of the fiscal
officer's office. The bond and sureties must be approved by the local
board and filed with the executive of the unit. The local board shall
make a full and accurate report of the condition of the 1937 fund to
the unit's fiscal officer on the first Monday of February in each year.
(d) All securities that were owned by and held in the name of the
local board on January 1, 1938, shall be held and kept for the local
board by the unit's fiscal officer until they mature and are retired.
However, if an issue of the securities is refunded, the local board
shall accept refunding securities in exchange for and in an amount
equal to the securities refunded. All money received by the local
board for the surrender of matured and retired securities shall be paid
into and constitutes a part of the 1937 fund of the unit, as provided
in section 8 of this chapter.
(e) Investments under this section are subject to section 2.5 of this
chapter.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.55-1989,
SEC.53; P.L.79-1998, SEC.109; P.L.35-1999, SEC.9; P.L.173-2003,
SEC.34.
IC 36-8-7-11
Members retiring due to disability or inability to perform essential
functions of job; monthly benefit
Sec. 11. (a) Benefits paid under this section are subject to section
2.5 of this chapter.
(b) If a member of the fire department becomes seventy (70) years
of age or is found upon examination by a medical officer to have a
physical or mental disability and to be unable to perform the
essential functions of the job, considering reasonable accommodation
to the extent required by the Americans with Disabilities Act, so as
to make necessary the person's retirement from all service with the
department, the local board shall retire the person.
(c) The local board may retire a person for disability only after a
hearing conducted under IC 36-8-8-12.7.
(d) If after the hearing the local board determines that a person
who became disabled before July 1, 2000, is disabled and unable to
perform the essential functions of the job, considering reasonable
accommodation to the extent required by the Americans with
Disabilities Act, the local board shall then authorize the monthly
payment to the person from the 1937 fund of an amount equal to
fifty-five percent (55%) of the salary of a fully paid first class
firefighter in the unit at the time of the payment of the pension. All
physical and mental examinations of members of the fire department
shall be made on order of the local board by a medical officer
designated by the local board.
(e) If after the hearing under this section and a recommendation
under section 12.5 of this chapter, the 1977 fund advisory committee
determines that a person who becomes disabled after June 30, 2000:
(1) has a disability that is:
(A) the direct result of:
(i) a personal injury that occurs while the fund member is
on duty;
(ii) a personal injury that occurs while the fund member is
responding to an emergency or reported emergency for
which the fund member is trained; or
(iii) an occupational disease (as defined in IC 22-3-7-10),
including a duty related disease that is also included
within clause (B);
(B) a duty related disease (for purposes of this section, a
"duty related disease" means a disease arising out of the fund
member's employment. A disease is considered to arise out
of the fund member's employment if it is apparent to the
rational mind, upon consideration of all of the
circumstances, that:
(i) there is a connection between the conditions under
which the fund member's duties are performed and the
disease;
(ii) the disease can be seen to have followed as a natural
incident of the fund member's duties as a result of the
exposure occasioned by the nature of the fund member's
duties; and
(iii) the disease can be traced to the fund member's
employment as the proximate cause); or
(C) a disability presumed incurred in the line of duty under
IC 5-10-13 or IC 5-10-15; and
(2) is unable to perform the essential functions of the job,
considering reasonable accommodation to the extent required
by the Americans with Disabilities Act;
the local board shall then authorize the monthly payment to the
person from the 1937 fund of an amount equal to fifty-five percent
(55%) of the salary of a fully paid first class firefighter in the unit at
the time of the payment of the pension. All physical and mental
examinations of members of the fire department shall be made on
order of the local board by a medical officer designated by the local
board.
(f) If after the hearing under this section and a recommendation
under section 12.5 of this chapter, the 1977 fund advisory committee
determines that a person who becomes disabled after June 30, 2000:
(1) has a disability that is not a disability described in
subsection (e)(1); and
(2) is unable to perform the essential functions of the job,
considering reasonable accommodation to the extent required
by the Americans with Disabilities Act;
the local board shall then authorize the monthly payment to the
person from the 1937 fund of an amount equal to fifty-five percent
(55%) of the salary of a fully paid first class firefighter in the unit at
the time of the payment of the pension. All physical and mental
examinations of members of the fire department shall be made on
order of the local board by a medical officer designated by the local
board.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.364-1983,
SEC.3; P.L.199-1984, SEC.2; P.L.38-1986, SEC.4; P.L.55-1989,
SEC.54; P.L.311-1989, SEC.3; P.L.4-1992, SEC.38; P.L.197-1993,
SEC.3; P.L.40-1997, SEC.6; P.L.118-2000, SEC.10; P.L.246-2001,
SEC.14; P.L.185-2002, SEC.7; P.L.62-2006, SEC.3; P.L.99-2007,
SEC.216.
IC 36-8-7-12
Repealed
(Repealed by P.L.196-1988, SEC.5.)
IC 36-8-7-12.1
Members retiring with 20 years service
Sec. 12.1. (a) Benefits paid under this section are subject to
section 2.5 of this chapter.
(b) A member who has been in service twenty (20) years, upon
making a written application to the fire chief, may be retired from all
service with the department without a medical examination or
disability. Except as provided in subsection (f), the local board shall
authorize the payment to the retired member of fifty percent (50%)
of the salary of a fully paid first class firefighter of the unit at the
time of the payment of the pension, plus:
(1) for a member who retires before January 1, 1986, two
percent (2%) of that salary for each year of service; or
(2) for a member who retires after December 31, 1985, one
percent (1%) of that salary for each six (6) months of service;
over twenty (20) years. However, the pension in one (1) year may not
exceed an amount greater than seventy-four percent (74%) of the
salary of a fully paid first class firefighter.
(c) A member who is discharged from the fire department after
having served at least twenty (20) years is entitled to receive the
amount equal to the amount that the member would have received if
the member retired voluntarily.
(d) All pensions in a class are on an equal basis. The local board
may not depart from this chapter in authorizing the payment of
pensions.
(e) The monthly pension payable to a member may not be reduced
below the amount of the first full monthly pension received by that
person.
(f) The monthly pension payable to a member who is transferred
from disability to regular retirement status may not be reduced below
fifty-five percent (55%) of the salary of a fully paid first class
firefighter in the unit at the time of the payment of the pension.
(g) A benefit payable under this section shall be paid in not less
than twelve (12) monthly installments.
(h) A fund member who is receiving disability benefits under
section 11(d) or 11(f) of this chapter shall be transferred from
disability to regular retirement status when the member becomes
fifty-five (55) years of age.
(i) A fund member who is receiving disability benefits under
section 11(e) of this chapter is entitled to:
(1) receive a disability benefit for the remainder of the fund
member's life; and
(2) have the amount of the disability benefit computed under
section 11(e) of this chapter when the fund member becomes
fifty-five (55) years of age.
As added by P.L.196-1988, SEC.2. Amended by P.L.1-1989, SEC.71;
P.L.55-1989, SEC.55; P.L.171-1990, SEC.2; P.L.197-1993, SEC.4;
P.L.52-1993, SEC.4; P.L.1-1994, SEC.179; P.L.231-1997, SEC.3;
P.L.40-1997, SEC.7; P.L.118-2000, SEC.11; P.L.62-2006, SEC.4.
IC 36-8-7-12.2
Members dying other than in line of duty
Sec. 12.2. (a) This section applies to an active or retired member
who dies other than in the line of duty (as defined in section 12.4 of
this chapter).
(b) If a member of the fire department or a retired member of the
1937 fund dies and leaves:
(1) a surviving spouse;
(2) a child or children less than eighteen (18) years of age;
(3) a child or children at least eighteen (18) years of age who
are mentally or physically incapacitated; or
(4) a child or children less than twenty-three (23) years of age
who are:
(A) enrolled in and regularly attending a secondary school;
or
(B) full-time students at an accredited college or university;
the local board shall authorize the payment to the surviving spouse
and to the child or children the amount from the fund as prescribed
by this section. If the surviving spouse of a deceased member
remarried before September 1, 1983, and pension benefits ceased on
the date of remarriage, the benefits for the surviving spouse shall be
reinstated on July 1, 1997, and continue during the life of the
surviving spouse. If the pension of the surviving spouse of a
deceased member has ceased by virtue of the spouse's remarriage,
and if the person to whom the spouse has remarried was a retired
member of the fire department who was also entitled to a pension,
then upon the death of the member to whom the spouse had
remarried, the spouse is entitled to receive a pension as the surviving
spouse of a deceased member as though the spouse had not been
remarried.
(c) If a deceased member of the fire department leaves no
surviving spouse or children but leaves a dependent parent, and upon
satisfactory proof that the parent was wholly dependent upon the
deceased member, the local board shall authorize the monthly
payment to the parent from the 1937 fund that is prescribed by this
section.
(d) If a member dies while in active service or after retirement:
(1) the surviving spouse is entitled to receive an amount fixed
by ordinance but not less than:
(A) for the surviving spouse of a member who dies before
January 1, 1989, thirty percent (30%) of the salary of a fully
paid first class firefighter in the unit at the time of the
payment of the pension; and
(B) for the surviving spouse of a member who dies after
December 31, 1988, except as otherwise provided in this
clause, an amount per month, during the spouse's life, equal
to the greater of thirty percent (30%) of the monthly pay of
a first class firefighter or fifty-five percent (55%) of the
monthly benefit the deceased member was receiving or was
entitled to receive on the date of the member's death (these
amounts shall be proportionately increased or decreased if
the salary of a first class firefighter is increased or
decreased); however, if the deceased member was not
entitled to a benefit because the member had not completed
twenty (20) years of service, for purposes of computing the
second amount under this item, the member's benefit is
considered to be fifty percent (50%) of the monthly salary of
a first class firefighter in the unit at the time of payment of
the pension;
(2) the member's children who are:
(A) less than eighteen (18) years of age; or
(B) less than twenty-three (23) years of age if the children
are enrolled in and regularly attending a secondary school or
are full-time students at an accredited college or university;
are each entitled to receive an amount fixed by ordinance but
not less than twenty percent (20%) of the salary of a fully paid
first class firefighter in the unit at the time of the payment of the
pension; and
(3) each parent of a deceased member who was eligible for a
pension is entitled to receive jointly an amount equal to thirty
percent (30%) of the salary of a fully paid first class firefighter
in the unit at the time of the payment of the pension.
If the local board finds upon the submission of satisfactory proof that
a child eighteen (18) years of age or older is mentally or physically
incapacitated, is not a ward of the state, and is not receiving a benefit
under subdivision (2)(B), the child is entitled to receive the same
amount as is paid to the surviving spouse of a deceased firefighter,
as long as the mental or physical incapacity continues. A sum paid
for the benefit of a child or children shall be paid to the remaining
parent, if alive, as long as the child or children reside with and are
supported by the parent. If the parent dies, the sum shall be paid to
the lawful guardian of the child or children.
(e) The monthly pension payable to a survivor may not be reduced
below the amount of the first full monthly pension received by that
person.
(f) A benefit payable under this section shall be paid in not less
than twelve (12) monthly installments.
As added by P.L.118-2000, SEC.12.
IC 36-8-7-12.3
Members dying in line of duty before September 1, 1982
Sec. 12.3. (a) This section applies to a member who died in the
line of duty (as defined in section 12.4 of this chapter) before
September 1, 1982.
(b) If a member of the fire department or a retired member of the
1937 fund dies and leaves:
(1) a surviving spouse;
(2) a child or children less than eighteen (18) years of age;
(3) a child or children at least eighteen (18) years of age who
are mentally or physically incapacitated; or
(4) a child or children less than twenty-three (23) years of age
who are:
(A) enrolled in and regularly attending a secondary school;
or
(B) full-time students at an accredited college or university;
the local board shall authorize the payment to the surviving spouse
and to the child or children of the amount from the fund as
prescribed by this section. If the surviving spouse of a deceased
member remarried before September 1, 1983, and pension benefits
ceased on the date of remarriage, the benefits for the surviving
spouse shall be reinstated on July 1, 1997, and continue during the
life of the surviving spouse. If the pension of the surviving spouse of
a deceased member has ceased by virtue of the spouse's remarriage,
and if the person to whom the spouse has remarried was a retired
member of the fire department who was also entitled to a pension,
then upon the death of the member to whom the spouse had
remarried, the spouse is entitled to receive a pension as the surviving
spouse of a deceased member as though the spouse had not been
remarried.
(c) If a deceased member of the fire department leaves no
surviving spouse or children but leaves a dependent parent, and upon
satisfactory proof that the parent was wholly dependent upon the
deceased member, the local board shall authorize the monthly
payment to the parent from the 1937 fund that is prescribed by this
section.
(d) If a member dies while in active service:
(1) the surviving spouse is entitled to receive an amount fixed
by ordinance but not less than thirty percent (30%) of the salary
of a fully paid first class firefighter in the unit at the time of the
payment of the pension;
(2) the member's children who are:
(A) less than eighteen (18) years of age; or
(B) less than twenty-three (23) years of age if the children
are enrolled in and regularly attending a secondary school or
are full-time students at an accredited college or university;
are each entitled to receive an amount fixed by ordinance but
not less than twenty percent (20%) of the salary of a fully paid
first class firefighter in the unit at the time of the payment of the
pension; and
(3) each parent of a deceased member who was eligible for a
pension is entitled to receive jointly an amount equal to thirty
percent (30%) of the salary of a fully paid first class firefighter
in the unit at the time of the payment of the pension.
If the local board finds upon the submission of satisfactory proof that
a child eighteen (18) years of age or older is mentally or physically
incapacitated, is not a ward of the state, and is not receiving a benefit
under subdivision (2)(B), the child is entitled to receive the same
amount as is paid to the surviving spouse of a deceased firefighter as
long as the mental or physical incapacity continues. A sum paid for
the benefit of a child or children shall be paid to the remaining
parent, if alive, as long as the child or children reside with and are
supported by the parent. If the parent dies, the sum shall be paid to
the lawful guardian of the child or children.
(e) The monthly pension payable to a survivor may not be reduced
below the amount of the first full monthly pension received by that
person.
(f) A benefit payable under this section shall be paid in not less
than twelve (12) monthly installments.
(g) The unit of local government that employed the deceased
member shall after December 31, 2003, offer to provide and pay for
health insurance coverage for the member's surviving spouse and for
each natural child, stepchild, or adopted child of the member:
(1) until the child becomes eighteen (18) years of age;
(2) until the child becomes twenty-three (23) years of age if the
child is enrolled in and regularly attending a secondary school
or is a full-time student at an accredited college or university;
or
(3) during the entire period of the child's physical or mental
disability;
whichever period is longest. If health insurance coverage is offered
by the unit to active members, the health insurance provided to a
surviving spouse and child under this subsection must be equal in
coverage to that offered to active members. The offer to provide and
pay for health insurance coverage shall remain open for as long as
there is a surviving spouse or as long as a natural child, stepchild, or
adopted child of the member is eligible for the coverage under
subdivision (1), (2), or (3).
As added by P.L.118-2000, SEC.13. Amended by P.L.86-2003,
SEC.4.
IC 36-8-7-12.4
Members dying in line of duty after August 31, 1982
Sec. 12.4. (a) This section applies to an active member who dies
in the line of duty after August 31, 1982.
(b) If a member dies in the line of duty after August 31, 1982, the
surviving spouse is entitled to a monthly benefit, during the spouse's
lifetime, equal to the benefit to which the member would have been
entitled on the date of the member's death, but not less than fifty
percent (50%) of the monthly wage received by a fully paid first
class firefighter. If the spouse remarried before September 1, 1983,
and benefits ceased on the date of remarriage, the benefits for the
surviving spouse shall be reinstated on July 1, 1997, and continue
during the life of the surviving spouse. If the pension of the surviving
spouse of a deceased member has ceased by virtue of the spouse's
remarriage, and if the person to whom the spouse has remarried was
a retired member of the fire department who was also entitled to a
pension, then upon the death of the member to whom the spouse had
remarried, the spouse is entitled to receive a pension as the surviving
spouse of a deceased member as though the spouse had not been
remarried.
(c) If a member dies while in active service, the member's children
who are:
(1) less than eighteen (18) years of age; or
(2) less than twenty-three (23) years of age if the children are
enrolled in and regularly attending a secondary school or are
full-time students at an accredited college or university;
are each entitled to receive an amount fixed by ordinance but not less
than twenty percent (20%) of the salary of a fully paid first class
firefighter in the unit at the time of the payment of the pension.
(d) The surviving children of the deceased member who are
eligible to receive a benefit under subsection (c) may receive an
additional benefit in an amount fixed by ordinance, but the total
additional benefit under this subsection to all the member's children
may not exceed a total of thirty percent (30%) of the monthly wage
received by a first class firefighter. However, this limitation does not
apply to the children of a member who have a physical or mental
disability.
(e) If a deceased member of the fire department leaves no
surviving spouse or children but leaves a dependent parent, and upon
satisfactory proof that the parent was wholly dependent upon the
deceased member, the local board shall authorize the monthly
payment to the parent from the 1937 fund. Each parent of a deceased
member who was eligible for a pension under this subsection is
entitled to receive jointly an amount equal to thirty percent (30%) of
the salary of a fully paid first class firefighter in the unit at the time
of the payment of the pension.
(f) For purposes of this section, "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
member, in the member's capacity as a firefighter:
(1) is obligated or authorized by rule, regulation, condition of
employment or service, or law to perform; or
(2) performs while on the scene of an emergency run (including
false alarms) or on the way to or from the scene.
The term includes a death presumed incurred in the line of duty
under IC 5-10-13.
(g) If the local board finds upon the submission of satisfactory
proof that a child eighteen (18) years of age or older is mentally or
physically incapacitated, is not a ward of the state, and is not
receiving a benefit under subsection (c)(2), the child is entitled to
receive the same amount as is paid to the surviving spouse of a
deceased firefighter, as long as the mental or physical incapacity
continues. A sum paid for the benefit of a child or children shall be
paid to the remaining parent, if alive, as long as the child or children
reside with and are supported by the parent. If the parent dies, the
sum shall be paid to the lawful guardian of the child or children.
(h) The monthly pension payable to a survivor may not be reduced
below the amount of the first full monthly pension received by that
person.
(i) A benefit payable under this section shall be paid in not less
than twelve (12) monthly installments.
(j) The unit of local government that employed the deceased
member shall after December 31, 2003, offer to provide and pay for
health insurance coverage for the member's surviving spouse and for
each natural child, stepchild, or adopted child of the member:
(1) until the child becomes eighteen (18) years of age;
(2) until the child becomes twenty-three (23) years of age if the
child is enrolled in and regularly attending a secondary school
or is a full-time student at an accredited college or university;
or
(3) during the entire period of the child's physical or mental
disability;
whichever period is longest. If health insurance coverage is offered
by the unit to active members, the health insurance provided to a
surviving spouse and child under this subsection must be equal in
coverage to that offered to active members. The offer to provide and
pay for health insurance coverage shall remain open for as long as
there is a surviving spouse or as long as a natural child, stepchild, or
adopted child of the member is eligible for the coverage under
subdivision (1), (2), or (3).
As added by P.L.118-2000, SEC.14. Amended by P.L.62-2002,
SEC.2; P.L.185-2002, SEC.8; P.L.86-2003, SEC.5; P.L.99-2007,
SEC.217.
IC 36-8-7-12.5
Determination whether disability in line of duty
Sec. 12.5. (a) If a local board determines that a fund member has
a temporary or a permanent disability, the local board shall also make
a recommendation to the 1977 fund advisory committee concerning
whether the disability is:
(1) a disability in the line of duty (as described in section
11(e)(1) of this chapter); or
(2) a disability not in the line of duty (a disability other than a
disability described in section 11(e)(1) of this chapter).
The local board shall forward its recommendation to the 1977 fund
advisory committee.
(b) The 1977 fund advisory committee shall review the local
board's recommendation not later than forty-five (45) days after
receiving the recommendation and shall then issue an initial
determination of whether the disability is in the line of duty or not in
the line of duty. The 1977 fund advisory committee shall notify the
local board, the safety board, and the fund member of its initial
determination.
(c) The fund member, the safety board, or the local board may
object in writing to the 1977 fund advisory committee's initial
determination under subsection (b) not later than fifteen (15) days
after the initial determination is issued. If a written objection is not
filed, the 1977 fund advisory committee's initial determination
becomes final. If a timely written objection is filed, the 1977 fund
advisory committee shall issue a final determination after a hearing.
The final determination must be issued not later than one hundred
eighty (180) days after the date of receipt of the local board's
recommendation.
As added by P.L.118-2000, SEC.15.
IC 36-8-7-12.7
Reemployment after retirement
Sec. 12.7. (a) Not less than thirty (30) days after a member retires
from a fire department covered by this chapter, the member may:
(1) be rehired by the same unit that employed the member as a
firefighter for a position other than that of a full-time, fully paid
firefighter; and
(2) continue to receive the member's pension benefit under this
chapter.
(b) This section may be implemented unless the local board
receives from the Internal Revenue Service a determination that
prohibits the implementation.
As added by P.L.130-2008, SEC.5.
IC 36-8-7-13
Lump sum death benefit
Sec. 13. (a) Benefits paid under this section are subject to section
2.5 of this chapter.
(b) Upon the death of a disabled, retired, or discharged member
of the fire department who was receiving or entitled to receive a
pension at the time of the member's death, or upon the death of a
member in active service at the time of the member's death, the local
board shall authorize and pay out of the 1937 fund at least twelve
thousand dollars ($12,000) as death benefits.
(c) The death benefit described under this section shall be paid:
(1) to the surviving spouse;
(2) if there is no surviving spouse, to the surviving children; and
(3) if there is no surviving spouse, and if there are no surviving
children, to the estate;
of the deceased member and is in addition to other benefits paid to
a member or survivor under this chapter.
As added by Acts 1981, P.L.309, SEC.57. Amended by Acts 1981,
P.L.182, SEC.7; P.L.200-1984, SEC.3; P.L.55-1989, SEC.56;
P.L.169-1994, SEC.3; P.L.49-1998, SEC.4; P.L.28-2008, SEC.2.
IC 36-8-7-14
Annual statement of receipts and disbursements; payment of excess
expenditures by unit; appropriations
Sec. 14. (a) The local board shall meet annually and prepare an
itemized estimate, in the form prescribed by the state board of
accounts, of the amount of money that will be receipted into and
disbursed from the 1937 fund during the next fiscal year. The
estimated receipts consist of the items enumerated in section 8 of this
chapter. The estimated disbursements must be divided into two (2)
parts, designated as part 1 and part 2.
(b) Part 1 of the estimated disbursements consists of an estimate
of the amount of money that will be needed by the local board during
the next fiscal year to defray the expenses and obligations incurred
and that will be incurred by the local board in making the payments
prescribed by this chapter to retired members, to members who are
eligible to and expect to retire during the next fiscal year, and to the
dependents of deceased members. Part 2 of the estimated
disbursements consists of an estimate of the amount of money that
will be needed to pay death benefits and other expenditures that are
authorized or required by this chapter.
(c) At the time when the estimates are prepared and submitted, the
local board shall also prepare and submit a certified statement
showing the following:
(1) The name, age, and date of retirement of each retired
member and the monthly and yearly amount of the payment to
which the retired member is entitled.
(2) The name and age of each member who is eligible to and
expects to retire during the next fiscal year, the date on which
the member expects to retire, and the monthly and yearly
amount of the payment that the member will be entitled to
receive.
(3) The name and the age of each dependent, the date on which
the dependent became a dependent, the date on which the
dependent will cease to be a dependent by reason of attaining
the age at which dependents cease to be dependents, and the
monthly and yearly amount of the payment to which the
dependent is entitled.
(4) The amount that would be required for the next fiscal year
to maintain level cost funding during the active fund members'
employment on an actuarial basis.
(5) The amount that would be required for the next fiscal year
to amortize accrued liability for active members, retired
members, and dependents over a period determined by the local
board, but not to exceed forty (40) years.
(d) The total receipts shall be deducted from the total
expenditures as listed in the itemized estimate. The amount of the
excess of the estimated expenditures over the estimated receipts shall
be paid by the unit in the same manner as other expenses of the unit
are paid, and an appropriation shall be made annually for that
purpose. The estimates submitted shall be prepared and filed in the
same manner and form and at the same time that estimates of other
offices and departments of the unit are prepared and filed.
(e) The estimates shall be made a part of the annual budget of the
unit. When revising the estimates, the executive, the fiscal officer,
and other fiduciary officers may not reduce the items in part 1 of the
estimated disbursements.
(f) The unit's fiscal body shall make the appropriations necessary
to pay that proportion of the budget of the 1937 fund that the unit is
obligated to pay under subsection (d). In addition, the fiscal body
may make appropriations for purposes of subsection (c)(4), (c)(5), or
both. All appropriations shall be made to the local board for the
exclusive use of the 1937 fund, including the payments described in
section 9.5 of this chapter. The amounts listed in part 1 of the
estimated disbursements, if found to be correct and in conformity
with the data submitted in the certified statement, are a binding
obligation upon the unit. Notwithstanding any other law, neither the
county board of tax adjustment nor the department of local
government finance may reduce the appropriations made to pay the
amount equal to estimated disbursements minus estimated receipts.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.345-1985,
SEC.1; P.L.90-2002, SEC.488; P.L.224-2007, SEC.124;
P.L.146-2008, SEC.777; P.L.182-2009(ss), SEC.431.
IC 36-8-7-15
Insufficient funds for appropriations; loans; tax levy to repay loans
Sec. 15. If the appropriations for any of the purposes
contemplated in section 14 of this chapter are exhausted before the
end of the fiscal year for which the appropriations have been made,
the unit's fiscal body shall make the necessary additional
appropriations according to IC 6-1.1-18-5. If the amount of money in
the general fund not otherwise appropriated is less than the
additional appropriations found to be necessary