CHAPTER 8. 1977 POLICE OFFICERS' AND FIREFIGHTERS' PENSION AND DISABILITY FUND
IC 36-8-8
Chapter 8. 1977 Police Officers' and Firefighters' Pension and
Disability Fund
IC 36-8-8-1
Application of chapter
Sec. 1. This chapter applies to:
(1) full-time police officers hired or rehired after April 30,
1977, in all municipalities, or who converted their benefits
under IC 19-1-17.8-7 (repealed September 1, 1981);
(2) full-time fully paid firefighters hired or rehired after April
30, 1977, or who converted their benefits under IC 19-1-36.5-7
(repealed September 1, 1981);
(3) a police matron hired or rehired after April 30, 1977, and
before July 1, 1996, who is a member of a police department in
a second or third class city on March 31, 1996;
(4) a park ranger who:
(A) completed at least the number of weeks of training at the
Indiana law enforcement academy or a comparable law
enforcement academy in another state that were required at
the time the park ranger attended the Indiana law
enforcement academy or the law enforcement academy in
another state;
(B) graduated from the Indiana law enforcement academy or
a comparable law enforcement academy in another state; and
(C) is employed by the parks department of a city having a
population of more than one hundred twenty thousand
(120,000) but less than one hundred fifty thousand
(150,000);
(5) a full-time fully paid firefighter who is covered by this
chapter before the effective date of consolidation and becomes
a member of the fire department of a consolidated city under
IC 36-3-1-6.1, provided that the firefighter's service as a
member of the fire department of a consolidated city is
considered active service under this chapter;
(6) except as otherwise provided, a full-time fully paid
firefighter who is hired or rehired after the effective date of the
consolidation by a consolidated fire department established
under IC 36-3-1-6.1;
(7) a full-time police officer who is covered by this chapter
before the effective date of consolidation and becomes a
member of the consolidated law enforcement department as part
of the consolidation under IC 36-3-1-5.1, provided that the
officer's service as a member of the consolidated law
enforcement department is considered active service under this
chapter; and
(8) except as otherwise provided, a full-time police officer who
is hired or rehired after the effective date of the consolidation
by a consolidated law enforcement department established
under IC 36-3-1-5.1;
except as provided by section 7 of this chapter.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.3-1990,
SEC.132; P.L.236-1996, SEC.4; P.L.43-1997, SEC.6; P.L.22-1998,
SEC.16; P.L.246-2001, SEC.16; P.L.227-2005, SEC.46.
IC 36-8-8-2
"Employer" defined
Sec. 2. As used in this chapter, "employer" means:
(1) a municipality that established a 1925 or 1953 fund or that
participates in the 1977 fund under section 3 or 18 of this
chapter;
(2) a unit that established a 1937 fund or that participates in the
1977 fund under section 3 or 18 of this chapter;
(3) a consolidated city that consolidated the fire departments of
units that:
(A) established a 1937 fund; or
(B) participated in the 1977 fund;
before the units' consolidation into the fire department of a
consolidated city established by IC 36-3-1-6.1; or
(4) a consolidated city that establishes a consolidated law
enforcement department under IC 36-3-1-5.1.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.227-2005,
SEC.47.
IC 36-8-8-2.1
"Local board" defined
Sec. 2.1. (a) As used in this chapter, "local board" means the
following:
(1) For a unit that established a 1925 fund for its police officers,
the local board described in IC 36-8-6-2.
(2) For a unit that established a 1937 fund for its firefighters,
the local board described in IC 36-8-7-3.
(3) For a consolidated city that established a 1953 fund for its
police officers, the local board described in IC 36-8-7.5-2.
(4) For a unit, other than a consolidated city, that did not
establish a 1925 fund for its police officers or a 1937 fund for
its firefighters, the local board described in subsection (b) or
(c).
(b) If a unit did not establish a 1925 fund for its police officers, a
local board shall be composed in the same manner described in
IC 36-8-6-2(b). However, if there is not a retired member of the
department, no one shall be appointed to that position until such time
as there is a retired member.
(c) If a unit did not establish a 1937 fund for its firefighters, a
local board shall be composed in the same manner described in
IC 36-8-7-3(b). However, if there is not a retired member of the
department, no one shall be appointed to that position until such time
as there is a retired member.
As added by P.L.236-1996, SEC.5.
IC 36-8-8-2.5
Qualification of 1977 fund 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 1977 fund shall satisfy the qualification requirements in
Section 401 of the Internal Revenue Code, as applicable to the 1977
fund. In order to meet those requirements, the 1977 fund is subject
to the following provisions, notwithstanding any other provision of
this chapter:
(1) The PERF board shall distribute the corpus and income of
the 1977 fund to members and their beneficiaries in accordance
with this chapter.
(2) No part of the corpus or income of the 1977 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 1977 fund is terminated, or if all contributions to the
1977 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 1977 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 1977 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 PERF 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 trustee may not engage in a transaction prohibited by
Section 503(b) of the Internal Revenue Code.
As added by P.L.55-1989, SEC.61.
IC 36-8-8-2.6
Administration of fund
Sec. 2.6. The 1977 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.43.
IC 36-8-8-3
Participation by units
Sec. 3. (a) If a town establishes a board of metropolitan police
commissioners, or if a town becomes a city, the municipality shall
participate in the 1977 fund. However, if a police officer or former
marshal is a member of the public employees' retirement fund, he
may continue as a member of that fund instead of the 1977 fund.
Notwithstanding the age requirements under section 7(a) of this
chapter, a police officer or former marshal employed by a
municipality at the time the municipality enters the 1977 fund under
this section shall be a member of the 1977 fund unless the police
officer or former marshal elects to continue as a member of the
public employees' retirement fund. A person may become a member
of the 1977 fund under this subsection without meeting the age
limitation under section 7(a) of this chapter only if the person
satisfies:
(1) any aptitude, physical agility, or physical and mental
standards established by a local board under IC 36-8-3.2; and
(2) the minimum standards that are:
(A) adopted by the PERF board under section 19 of this
chapter; and
(B) in effect on the date the person becomes a member of the
1977 fund.
Credit for prior service of a person who becomes a member of the
1977 fund under this subsection shall be determined under section 18
or 18.1 of this chapter. No service credit beyond that allowed under
section 18 or 18.1 of this chapter may be recognized under the 1977
fund.
(b) If a unit did not establish a 1937 fund for its firefighters, the
unit may participate in the public employees' retirement fund or it
may participate in the 1977 fund. If a unit established a 1937 fund for
its firefighters, the unit is and shall remain a participant in the 1977
fund.
(c) A unit that:
(1) has not established a pension fund for its firefighters; or
(2) is participating in the public employees' retirement fund
under subsection (b);
may participate in the 1977 fund upon approval by the fiscal body,
notwithstanding IC 5-10.3-6-8. A unit that participates in the 1977
fund under this subsection must comply with section 21 of this
chapter. However, if a firefighter is a member of the public
employees' retirement fund, the firefighter may continue as a member
of that fund instead of the 1977 fund.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.313-1989,
SEC.1; P.L.213-1995, SEC.6; P.L.236-1996, SEC.6; P.L.101-1998,
SEC.1; P.L.195-1999, SEC.32.
IC 36-8-8-4
Creation of fund; management by PERF board; fund advisory
committee; membership; term
Sec. 4. (a) There is established a police officers' and firefighters'
pension and disability fund to be known as the 1977 fund. The 1977
fund consists of fund member and employer contributions, plus the
earnings on them, to be used to make benefit payments to fund
members and their survivors in the amounts and under the conditions
specified in this chapter.
(b) The board of trustees of the public employees' retirement fund
(referred to in this chapter as the "PERF board") shall administer the
1977 fund, which may be commingled with the public employees'
retirement fund for investment purposes. All actuarial data shall be
computed on the total membership of the fund, and the cost of
participation is the same for all employers in the fund. The fund
member and employer contributions shall be recorded separately for
each employer.
(c) The 1977 fund advisory committee, referred to as the
committee, is established. The PERF board shall consult with the
committee on matters pertaining to the administration of this chapter
and IC 5-10.3-11. The committee shall consist of the following
members appointed by the governor every two (2) years for a term of
two (2) years:
(1) Two (2) firefighters:
(A) each of whom must be an active or retired member of the
1937 fund or the 1977 fund; and
(B) neither of whom may be in an upper level policymaking
position.
(2) Two (2) police officers:
(A) each of whom must be an active or retired member of the
1925 fund, the 1953 fund, or the 1977 fund; and
(B) neither of whom may be in an upper level policymaking
position.
(3) Two (2) members, each of whom must be an executive of an
employer.
(4) Two (2) members, each of whom must be a member of the
legislative body of an employer.
The term of each member begins on July 1 following appointment
and continues until his successor is qualified. A member of the
committee who no longer holds the position that qualified him for
appointment under subdivision (1), (2), (3), or (4) forfeits his
membership on the committee. The governor shall appoint a person
to fill a vacancy on the committee for the remainder of the unexpired
term.
(d) Each member of the committee who is not a state employee is
entitled to reimbursement for expenses actually incurred in
connection with the member's duties. Such a member is also entitled
to reimbursement for traveling expenses and other expenses actually
incurred in connection with the member's duties, as approved by the
PERF board.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.201-1984,
SEC.1; P.L.342-1985, SEC.5; P.L.119-2000, SEC.8.
IC 36-8-8-5
PERF board; powers and duties; appeals; confidentiality of fund
records
Sec. 5. (a) The PERF board shall:
(1) determine eligibility for and make payments of benefits,
except as provided in section 12 of this chapter;
(2) in accordance with the powers and duties granted it in
IC 5-10.3-3-7, IC 5-10.3-3-8, and IC 5-10.3-5-3 through
IC 5-10.3-5-6, administer the 1977 fund;
(3) provide by rule for the implementation of this chapter; and
(4) authorize deposits.
(b) A determination by the PERF board may be appealed under
the procedures in IC 4-21.5.
(c) The powers and duties of the director and the actuary of the
PERF board, the attorney general, and the auditor of state, with
respect to the 1977 fund, are those specified in IC 5-10.3-3 and
IC 5-10.3-4.
(d) The PERF board may hire additional personnel, including
hearing officers, to assist it in the implementation of this chapter.
(e) The 1977 fund records of individual members and membership
information are confidential, except for the name and years of service
of a 1977 fund member.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.5-1988,
SEC.219; P.L.5-1990, SEC.21; P.L.94-2004, SEC.8; P.L.99-2010,
SEC.11.
IC 36-8-8-6
Employer contributions
Sec. 6. (a) Each employer shall annually on March 31, June 30,
September 30, and December 31, for the calendar quarters ending on
those dates, pay into the 1977 fund an amount determined by the
PERF board:
(1) for administration expenses; and
(2) sufficient to maintain level cost funding during the period of
employment on an actuarial basis for members hired after April
30, 1977.
(b) If an employer fails to make the payments required by
subsection (a) or fails to send the fund members' contributions
required by section 8(a) of this chapter, the amount payable, on
request of the PERF board, may be withheld by the auditor of state
from money payable to the employer and transferred to the fund. In
the alternative, the amount payable may be recovered in the circuit
or superior court of the county in which the employer is located, in
an action by the state on the relation of the PERF board, prosecuted
by the attorney general.
As added by Acts 1981, P.L.309, SEC.59. Amended by Acts 1982,
P.L.33, SEC.39.
IC 36-8-8-7
Membership in fund
Sec. 7. (a) Except as provided in subsections (d), (e), (f), (g), (h),
(k), (l), and (m):
(1) a police officer; or
(2) a firefighter;
who is less than thirty-six (36) years of age and who passes the
baseline statewide physical and mental examinations required under
section 19 of this chapter shall be a member of the 1977 fund and is
not a member of the 1925 fund, the 1937 fund, or the 1953 fund.
(b) A police officer or firefighter with service before May 1, 1977,
who is hired or rehired after April 30, 1977, may receive credit under
this chapter for service as a police officer or firefighter prior to entry
into the 1977 fund if the employer who rehires the police officer or
firefighter chooses to contribute to the 1977 fund the amount
necessary to amortize the police officer's or firefighter's prior service
liability over a period of not more than forty (40) years, the amount
and the period to be determined by the PERF board. If the employer
chooses to make the contributions, the police officer or firefighter is
entitled to receive credit for the police officer's or firefighter's prior
years of service without making contributions to the 1977 fund for
that prior service. In no event may a police officer or firefighter
receive credit for prior years of service if the police officer or
firefighter is receiving a benefit or is entitled to receive a benefit in
the future from any other public pension plan with respect to the
prior years of service.
(c) Except as provided in section 18 of this chapter, a police
officer or firefighter is entitled to credit for all years of service after
April 30, 1977, with the police or fire department of an employer
covered by this chapter.
(d) A police officer or firefighter with twenty (20) years of service
does not become a member of the 1977 fund and is not covered by
this chapter, if the police officer or firefighter:
(1) was hired before May 1, 1977;
(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7
(both of which were repealed September 1, 1981); and
(3) is rehired after April 30, 1977, by the same employer.
(e) A police officer or firefighter does not become a member of
the 1977 fund and is not covered by this chapter if the police officer
or firefighter:
(1) was hired before May 1, 1977;
(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7
(both of which were 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 1925,
1937, or 1953 fund.
(f) A police officer or firefighter does not become a member of
the 1977 fund and is not covered by this chapter if the police officer
or firefighter:
(1) was hired by the police or fire department of a unit before
May 1, 1977;
(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7
(both of which were repealed September 1, 1981);
(3) is rehired by the police or fire department of another unit
after December 31, 1981; and
(4) is made, by the fiscal body of the other unit after December
31, 1981, a member of a 1925, 1937, or 1953 fund of the other
unit.
If the police officer or firefighter is made a member of a 1925, 1937,
or 1953 fund, the police officer or firefighter is entitled to receive
credit for all the police officer's or firefighter's years of service,
including years before January 1, 1982.
(g) As used in this subsection, "emergency medical services" and
"emergency medical technician" have the meanings set forth in
IC 16-18-2-110 and IC 16-18-2-112. A firefighter who:
(1) is employed by a unit that is participating in the 1977 fund;
(2) was employed as an emergency medical technician by a
political subdivision wholly or partially within the department's
jurisdiction;
(3) was a member of the public employees' retirement fund
during the employment described in subdivision (2); and
(4) ceased employment with the political subdivision and was
hired by the unit's fire department due to the reorganization of
emergency medical services within the department's
jurisdiction;
shall participate in the 1977 fund. A firefighter who participates in
the 1977 fund under this subsection is subject to sections 18 and 21
of this chapter.
(h) A police officer or firefighter does not become a member of
the 1977 fund and is not covered by this chapter if the individual was
appointed as:
(1) a fire chief under a waiver under IC 36-8-4-6(c); or
(2) a police chief under a waiver under IC 36-8-4-6.5(c);
unless the executive of the unit requests that the 1977 fund accept the
individual in the 1977 fund and the individual previously was a
member of the 1977 fund.
(i) A police matron hired or rehired after April 30, 1977, and
before July 1, 1996, who is a member of a police department in a
second or third class city on March 31, 1996, is a member of the
1977 fund.
(j) A park ranger who:
(1) completed at least the number of weeks of training at the
Indiana law enforcement academy or a comparable law
enforcement academy in another state that were required at the
time the park ranger attended the Indiana law enforcement
academy or the law enforcement academy in another state;
(2) graduated from the Indiana law enforcement academy or a
comparable law enforcement academy in another state; and
(3) is employed by the parks department of a city having a
population of more than one hundred twenty thousand
(120,000) but less than one hundred fifty thousand (150,000);
is a member of the fund.
(k) Notwithstanding any other provision of this chapter, a police
officer or firefighter:
(1) who is a member of the 1977 fund before a consolidation
under IC 36-3-1-5.1 or IC 36-3-1-6.1;
(2) whose employer is consolidated into the consolidated law
enforcement department or the fire department of a
consolidated city under IC 36-3-1-5.1 or IC 36-3-1-6.1; and
(3) who, after the consolidation, becomes an employee of the
consolidated law enforcement department or the consolidated
fire department under IC 36-3-1-5.1 or IC 36-3-1-6.1;
is a member of the 1977 fund without meeting the requirements
under sections 19 and 21 of this chapter.
(l) Notwithstanding any other provision of this chapter, if:
(1) before a consolidation under IC 8-22-3-11.6, a police officer
or firefighter provides law enforcement services or fire
protection services for an entity in a consolidated city;
(2) the provision of those services is consolidated into the law
enforcement department or fire department of a consolidated
city; and
(3) after the consolidation, the police officer or firefighter
becomes an employee of the consolidated law enforcement
department or the consolidated fire department under
IC 8-22-3-11.6;
the police officer or firefighter is a member of the 1977 fund without
meeting the requirements under sections 19 and 21 of this chapter.
(m) A police officer or firefighter who is a member of the 1977
fund under subsection (k) or (l) may not be:
(1) retired for purposes of section 10 of this chapter; or
(2) disabled for purposes of section 12 of this chapter;
solely because of a change in employer under the consolidation.
As added by Acts 1981, P.L.309, SEC.59. Amended by Acts 1981,
P.L.182, SEC.9; Acts 1982, P.L.33, SEC.40; P.L.365-1983, SEC.1;
P.L.202-1984, SEC.1; P.L.38-1986, SEC.6; P.L.55-1987, SEC.5;
P.L.3-1990, SEC.133; P.L.4-1990, SEC.18; P.L.4-1992, SEC.44;
P.L.2-1993, SEC.204; P.L.213-1995, SEC.7; P.L.236-1996, SEC.7;
P.L.43-1997, SEC.7; P.L.22-1998, SEC.17; P.L.246-2001, SEC.17;
P.L.227-2005, SEC.48; P.L.1-2006, SEC.575.
IC 36-8-8-7.2
Fire chief or police chief transfer of service credit to PERF
Sec. 7.2. (a) This section applies to an individual:
(1) who becomes a member of the 1977 fund under section 7(h)
of this chapter;
(2) whose appointment as a fire chief or police chief ends after
June 30, 2007; and
(3) who is not eligible to receive a benefit from the 1977 fund
at the end of the individual's appointment as a fire chief or
police chief.
(b) A fund member described in subsection (a) may elect:
(1) to receive the fund member's contributions to the 1977 fund
under section 8 of this chapter; or
(2) to transfer the fund member's service credit earned as a fire
chief or police chief to PERF under subsection (c).
(c) If a fund member makes the election described in subsection
(b)(2), the PERF board shall:
(1) grant to the fund member service credit in PERF for all
service earned as a fire chief or police chief in the 1977 fund;
and
(2) transfer from the 1977 fund to PERF:
(A) the fund member's contributions made during the fund
member's appointment as a fire chief or police chief to the
1977 fund; plus
(B) the present value of the unreduced benefit that would be
payable to the transferring fund member upon retirement
under section 10 of this chapter.
(d) The PERF board shall deposit the amounts transferred to
PERF under subsection (c) as follows:
(1) The fund member's contributions to the 1977 fund shall be
credited to the fund member's PERF annuity savings account.
(2) The present value of the unreduced benefit that would be
payable to the transferring fund member upon retirement under
section 10 of this chapter shall be credited to PERF's retirement
allowance account.
(e) For a fund member who makes the election described in
subsection (b)(2), all credit for service as a fire chief or police chief
in the 1977 fund is waived.
As added by P.L.180-2007, SEC.9.
IC 36-8-8-8
Employee contributions; lump sum withdrawal on termination of
employment
Sec. 8. (a) Each fund member shall contribute during the period
of the fund member's employment or for thirty-two (32) years,
whichever is shorter, an amount equal to six percent (6%) of the
salary of a first class patrolman or firefighter. However, the employer
may pay all or a part of the contribution for the member. The amount
of the contribution, other than contributions paid on behalf of a
member, shall be deducted each pay period from each fund member's
salary by the disbursing officer of the employer. The employer shall
send to the PERF board each year on March 31, June 30, September
30, and December 31, for the calendar quarters ending on those
dates, a certified list of fund members and a warrant issued by the
employer for the total amount deducted for fund members'
contributions.
(b) Except as provided in section 7.2 of this chapter, if a fund
member ends the fund member's employment other than by death or
disability before the fund member completes twenty (20) years of
active service, the PERF board shall return to the fund member in a
lump sum the fund member's contributions plus interest as
determined by the PERF board. If the fund member returns to
service, the fund member is entitled to credit for the years of service
for which the fund member's contributions were refunded if the fund
member repays the amount refunded to the fund member in either a
lump sum or a series of payments determined by the PERF board.
As added by Acts 1981, P.L.309, SEC.59. Amended by Acts 1981,
P.L.182, SEC.10; P.L.312-1989, SEC.4; P.L.180-2007, SEC.10.
IC 36-8-8-8.3
Purchase of military service credit
Sec. 8.3. (a) This section applies to a fund member who, after
June 30, 2009, completes service for which the 1977 fund gives
credit.
(b) A fund member may purchase not more than two (2) years of
service credit for the fund member's service on active duty in the
armed services if the fund member meets the following conditions:
(1) The fund member has at least one (1) year of credited
service in the fund.
(2) The fund member serves on active duty in the armed
services of the United States for at least six (6) months.
(3) The fund member receives an honorable discharge from the
armed services.
(4) Before the fund member retires, the fund member makes
contributions to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The salary of a first class patrolman or firefighter at the
time the fund member actually makes a contribution for
the service credit.
(ii) A rate, determined by the actuary of the 1977 fund,
that is based on the age of the fund member at the time the
fund member actually makes a contribution for service
credit and that is computed to result in a contribution
amount that approximates the actuarial present value of
the retirement benefit attributable to the service credit
purchased.
(iii) The number of years of service credit the fund
member intends to purchase.
(B) Contributions for any accrued interest, at a rate
determined by the actuary of the 1977 fund, for the period
from the fund member's initial membership in the 1977 fund
to the date payment is made by the fund member.
(c) A fund member must have at least twenty (20) years of service
before a fund member may receive a benefit based on a service credit
purchased under this section. A fund member's years of service may
not exceed thirty-two (32) years with the inclusion of the service
credit purchased under this section.
(d) A fund member may not receive service credit under this
section:
(1) for service credit received under IC 36-8-5-7; or
(2) if the military service for which the fund member requests
credit also qualifies the fund member for a benefit in a military
or another governmental retirement system.
(e) A fund member who:
(1) terminates service before satisfying the eligibility
requirements necessary to receive a retirement benefit payment
from the 1977 fund; or
(2) receives a retirement benefit for the same service from
another retirement system, other than under the federal Social
Security Act;
may withdraw the fund member's contributions made under this
section plus accumulated interest after submitting to the fund a
properly completed application for a refund.
(f) The following apply to the purchase of service credit under
this section:
(1) The PERF board may allow a fund member to make
periodic payments of the contributions required for the purchase
of the service credit. The PERF board shall determine the length
of the period during which the payments must be made.
(2) The PERF 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 fund member may not claim the service credit for
purposes of determining eligibility or computing benefits unless
the fund member has made all payments required for the
purchase of the service credit.
(g) To the extent permitted by the Internal Revenue Code and
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing service credit under this section, 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 a 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 408(b) of the Internal Revenue Code.
(h) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing service credit under this section, 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.19-2009, SEC.1.
IC 36-8-8-8.5
Purchase of service credit in certain Indiana public retirement
funds
Sec. 8.5. (a) This section applies to a fund member who, after
June 30, 2010, completes service for which the 1977 fund gives
credit.
(b) As used in this section, "public retirement fund" refers to any
of the following, either singly or collectively:
(1) The public employees' retirement fund (IC 5-10.3).
(2) The Indiana state teachers' retirement fund (IC 5-10.4).
(3) The state excise police, gaming agent, gaming control
officer, and conservation enforcement officers' retirement fund
(IC 5-10-5.5).
(4) The state police pension trust (IC 10-12).
(5) A sheriff's pension trust (IC 36-8-10-12).
(c) Subject to this section, a fund member may purchase service
credit for the fund member's prior service in a position covered by a
public retirement fund.
(d) To purchase the service credit described in subsection (c), a
fund member must meet the following requirements:
(1) The fund member has at least one (1) year of creditable
service in the 1977 fund.
(2) The fund member has not attained vested status in and is not
an active member in the public retirement fund from which the
fund member is purchasing service credit.
(3) Before the fund member retires, the fund member makes
contributions to the 1977 fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The salary of a first class patrolman or firefighter at the
time the fund member actually makes a contribution for
the service credit.
(ii) A rate, determined by the actuary for the 1977 fund,
that is based on the age of the fund member at the time the
fund member actually makes a contribution for the service
credit and that is computed to result in a contribution
amount that approximates the actuarial present value of
the retirement benefit attributable to the service credit
purchased.
(iii) The number of years of service credit the fund
member intends to purchase.
(B) Contributions for any accrued interest, at a rate
determined by the actuary for the 1977 fund, for the period
from the fund member's initial membership in the 1977 fund
to the date payment is made by the fund member.
(e) At the request of the fund member purchasing service credit
under this section, the amount a fund member is required to
contribute under subsection (d)(3) may be reduced by a trustee to
trustee transfer from the public retirement fund in which the fund
member has an account that contains amounts attributable to member
contributions (plus any credited earnings) to the 1977 fund. The fund
member may direct the transfer of an amount only to the extent
necessary to fund the service purchase under subsection (d)(3). The
fund member shall complete any forms required by the public
retirement fund from which the fund member is requesting a transfer
or the 1977 fund before the transfer is made.
(f) A fund member must have at least twenty (20) years of service
in the 1977 fund before a fund member may receive a retirement
benefit based on service credit purchased under this section. A fund
member's years of service may not exceed thirty-two (32) years with
the inclusion of the service credit purchased under this section.
(g) A fund member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a retirement benefit payment
from the 1977 fund; or
(2) receives a retirement benefit for the same service from
another tax supported governmental retirement plan other than
the federal Social Security Act;
may withdraw the fund member's contributions made under this
section plus accumulated interest after submitting a properly
completed application for a refund to the 1977 fund.
(h) The following apply to the purchase of service credit under
this section:
(1) The PERF board may allow a fund member to make
periodic payments of the contributions required for the purchase
of the service credit. The PERF board shall determine the length
of the period during which the payments may be made.
(2) The PERF 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 fund member may not claim the service credit for
purposes of determining eligibility or computing benefits unless
the fund member 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 1977 fund may accept, on behalf of a fund
member who is purchasing service credit under this section, a
rollover of a distribution from any of the following:
(1) A qualified plan described in Section 401(a) or 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 a 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 408(b) of the Internal Revenue Code.
(j) To the extent permitted by the Internal Revenue Code and
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing service credit under this section, 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.
(k) The fund member's employer may pay all or a part of the fund
member's contributions required for the purchase of service credit
under this section. In that event, the actuary shall determine the
amortization, and subsections (g), (h)(1), (h)(3), and (i) do not apply.
As added by P.L.70-2010, SEC.1.
IC 36-8-8-8.8
Purchase of out-of-state service credit
Sec. 8.8. (a) This section applies to a fund member who, after
June 30, 2010, completes service for which the 1977 fund gives
credit.
(b) As used in this section, "out-of-state service" means service in
another state in a comparable position for which the fund member
would receive service credit in the 1977 fund if the service had been
performed in Indiana.
(c) Subject to subsections (d) through (g), a fund member may
purchase out-of-state service credit if the fund member meets the
following requirements:
(1) The fund member has at least one (1) year of credited
service in the 1977 fund.
(2) Before the fund member retires, the fund member makes
contributions to the 1977 fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The salary of a first class patrolman or firefighter at the
time the fund member makes a contribution for the service
credit.
(ii) A rate, determined by the actuary for the 1977 fund,
that is based on the age of the fund member at the time the
fund member makes a contribution for the service credit
and that is computed to result in a contribution amount
that approximates the actuarial present value of the
retirement benefit attributable to the service credit
purchased.
(iii) The number of years of out-of-state service credit the
fund member intends to purchase.
(B) Contributions for any accrued interest, at a rate
determined by the actuary for the 1977 fund, for the period
from the fund member's initial membership in the 1977 fund
to the date payment is made by the fund member.
(3) The fund member has received verification from the 1977
fund that the out-of-state service is, as of the date payment is
made by the fund member, valid.
(d) A fund member must have at least twenty (20) years of service
before the fund member may receive a benefit based on service credit
purchased under this section. A fund member's years of service may
not exceed thirty-two (32) years with the inclusion of service credit
purchased under this section.
(e) A fund member may not receive service credit under this
section if the service for which the fund member requests credit also
qualifies the fund member for a benefit in another governmental
retirement system.
(f) A fund member who:
(1) terminates service before satisfying the eligibility
requirements necessary to receive a retirement benefit payment
from the 1977 fund; or
(2) receives a retirement benefit for the same service from
another retirement system, other than under the federal Social
Security Act;
may withdraw the fund member's contributions made under this
section plus accumulated interest after submitting to the 1977 fund
a properly completed application for a refund.
(g) The following apply to the purchase of service credit under
this section:
(1) The PERF board may allow a fund member to make
periodic payments of the contributions required for the purchase
of the service credit. The PERF board shall determine the length
of the period during which the payments must be made.
(2) The PERF 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) The fund member may not claim the service credit for
purposes of determining eligibility or computing benefits unless
the fund member has made all payments required for the
purchase of the service credit.
(h) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing service credit under this section, 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 a 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 408(b) of the Internal Revenue Code.
(i) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing service credit under this section, 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.88-2010, SEC.1.
IC 36-8-8-9
Conversion from prior fund
Sec. 9. (a) This section applies to all police officers and
firefighters who converted their benefits under IC 19-1-17.8-7 or
IC 19-1-36.5-7 (both of which were repealed September 1, 1981).
(b) A police officer or firefighter who converted his benefits from
a 1925, 1937, or 1953 fund to the benefits and conditions of this
chapter is not entitled to receive any benefits from the original fund.
However, he is entitled to credit for all years of service for which he
would have received credit before his conversion in that original
fund.
(c) A police officer or firefighter who:
(1) converted his benefits from a 1925, 1937, or 1953 fund;
(2) retired or became disabled on or before June 30, 1998; and
(3) is entitled to receive benefits provided under this chapter
based on the eligibility requirements of this chapter;
shall be treated as a member of this fund for purposes of paying his
benefits from the 1977 fund effective for benefits paid on or after
October 1, 1998. Prior to October 1, 1998, he remains a member of
the original fund entitled to receive only the benefits provided under
this chapter based on the eligibility requirements of this chapter.
(d) A police officer or firefighter who:
(1) converted his benefits from a 1925, 1937 or 1953 fund;
(2) who did not retire or become disabled on or before June 30,
1998; and
(3) who is entitled to receive benefits provided under this
chapter based on the eligibility requirements of this chapter;
remains a member of that original fund but is entitled to receive only
the benefits provided under this chapter and based on the eligibility
requirements of this chapter.
(e) A police officer or firefighter who converted shall contribute
six percent (6%) of the salary of a first class patrolman or firefighter
to the 1925, 1937, or 1953 fund. This amount shall be deducted from
his salary each pay period by the disbursing officer of the employer.
Contributions under this subsection may not be refunded.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.3-1990,
SEC.134; P.L.22-1998, SEC.18.
IC 36-8-8-10
Eligibility for retirement; initiation of benefits; election to receive
actuarially reduced benefits
Sec. 10. (a) A fund member is eligible for retirement after he has
completed twenty (20) years of active service.
(b) Unless the member is receiving benefits under subsection (c),
unreduced benefits to a retired fund member begin the date:
(1) the fund member becomes fifty-two (52) years of age; or
(2) on which the fund member retires;
whichever is later. Benefit payments to a retired fund member under
this subsection begin on the first day of the month on or after the date
he reaches fifty-two (52) years of age or on which he retires,
whichever is later.
(c) A retired member may elect to receive actuarially reduced
benefits that begin the date:
(1) the fund member becomes fifty (50) years of age; or
(2) on which the fund member retires;
whichever is later. Benefit payments to a retired fund member under
this subsection begin on the first day of the month on or after the day
the member reaches fifty (50) years of age or on which the member
retires, whichever is later.
(d) If a fund member:
(1) becomes fifty-two (52) years of age in the case of unreduced
benefits or fifty (50) years of age in the case of reduced
benefits; or
(2) retires on a date other than on the first day of the month;
the amount due the fund member for the initial partial monthly
benefit is payable together with the regular monthly benefit on the
first of the month following the date the fund member becomes
fifty-two (52) or fifty (50) years of age, respectively, or retires,
whichever is later.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.232-1997,
SEC.1; P.L.22-1998, SEC.19.
IC 36-8-8-11
Computation of retirement benefits; actuarially reduced benefits
Sec. 11. (a) Benefits paid under this section are subject to section
2.5 of this chapter.
(b) Except as provided in section 24 of this chapter, each fund
member who qualifies for a retirement benefit payment under section
10(b) of this chapter is entitled to receive a monthly benefit equal to
fifty percent (50%) of the monthly salary of a first class patrolman
or firefighter in the year the member ended his active service plus:
(1) for a member who retires before January 1, 1986, two
percent (2%) of that salary for each full year of active service;
or
(2) for a member who retires after December 31, 1985, one
percent (1%) of that salary for each six (6) months of active
service;
over twenty (20) years, to a maximum of twelve (12) years.
(c) Each fund member who qualifies for a retirement benefit
payment under section 10(c) of this chapter is entitled to receive a
monthly benefit equal to fifty percent (50%) of the monthly salary of
a first class patrolman or firefighter in the year the member ended the
member's active service plus one percent (1%) of that salary for each
six (6) months of active service over twenty (20) years, to a
maximum of twelve (12) years, all actuarially reduced for each
month (if any) of benefit payments prior to fifty-two (52) years of
age, by a factor established by the fund's actuary from time to time.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.342-1985,
SEC.6; P.L.55-1989, SEC.62; P.L.22-1998, SEC.20; P.L.99-2010,
SEC.12.
IC 36-8-8-11.5
Reemployment after retirement
Sec. 11.5. (a) Not less than thirty (30) days after a fund member
retires from a position covered by this chapter, the fund member
may:
(1) be rehired by the same unit that employed the fund member
in a position covered by this chapter for a position not covered
by this chapter; and
(2) continue to receive the fund member's retirement benefit
under this chapter.
(b) This section may be implemented unless the PERF board
receives from the Internal Revenue Service a determination that
prohibits the implementation.
As added by P.L.130-2008, SEC.7.
IC 36-8-8-12
Benefits for members with covered impairments; retirement
benefits for members who have a disability and are less than 52
years old
Sec. 12. (a) Benefits paid under this section are subject to sections
2.5 and 2.6 of this chapter.
(b) If an active fund member has a covered impairment, as
determined under sections 12.3 through 13.1 of this chapter, the
member is entitled to receive the benefit prescribed by section 13.3
or 13.5 of this chapter. A member who has had a covered impairment
and returns to active duty with the department shall not be treated as
a new applicant seeking to become a member of the 1977 fund.
(c) If a retired fund member who has not yet reached the member's
fifty-second birthday is found by the PERF board to be permanently
or temporarily unable to perform all suitable work for which the
member is or may be capable of becoming qualified, the member is
entitled to receive during the disability the retirement benefit
payments payable at fifty-two (52) years of age. During a reasonable
period in which a fund member with a disability is becoming
qualified for suitable work, the member may continue to receive
disability benefit payments. However, benefits payable for disability
under this subsection are reduced by amounts for which the fund
member is eligible from:
(1) a plan or policy of insurance providing benefits for loss of
time because of disability;
(2) a plan, fund, or other arrangement to which the fund
member's employer has contributed or for which the fund
member's employer has made payroll deductions, including a
group life policy providing installment payments for disability,
a group annuity contract, or a pension or retirement annuity
plan other than the fund established by this chapter;
(3) the federal Social Security Act (42 U.S.C. 401 et seq.), the
Railroad Retirement Act (45 U.S.C. 231 et seq.), the United
States Department of Veterans Affairs, or another federal, state,
local, or other governmental agency;
(4) worker's compensation payable under IC 22-3; and
(5) a salary or wage, including overtime and bonus pay and
extra or additional remuneration of any kind, the fund member
receives or is entitled to receive from the member's employer.
For the purposes of this subsection, a retired fund member is
considered eligible for benefits from subdivisions (1) through (5)
whether or not the member has made application for the benefits.
(d) Notwithstanding any other law, a plan, policy of insurance,
fund, or other arrangement:
(1) delivered, issued for delivery, amended, or renewed after
April 9, 1979; and
(2) described in subsection (c)(1) or (c)(2);
may not provide for a reduction or alteration of benefits as a result
of benefits for which a fund member may be eligible from the 1977
fund under subsection (c).
(e) Time spent receiving disability benefits, not to exceed twenty
(20) years, is considered active service for the purpose of
determining retirement benefits. A fund member's retirement benefit
shall be based on: