Senate Bill 105 Summary

• Establishes a one-time postretirement benefit adjustment for members, survivors, and beneficiaries of the Public Employees' Retirement Fund (PERF) and Indiana State Teachers' Retirement Fund (TRF), to be determined by December 1, 2014.

• Calculates adjustment using a four-step formula: Step One multiplies years of service (capped at 30 years) by $10; Step Two multiplies monthly pension portion by 12; Step Three multiplies the lesser of Step Two result or $30,000 by 1%; Step Four adds Step One and Step Three results.

• The adjustment may be paid either as twelve equal monthly installments increasing the pension portion or as a one-time lump sum payment by July 1, 2015, to be determined by the General Assembly.

• If paid as monthly installments, the adjustment applies to benefits payable after June 30, 2015, and is in addition to any other increases provided by law; if paid as lump sum, benefits payable in lump sum form do not receive the adjustment.

• No adjustments may be made after November 30, 2014; the effective date is July 1, 2014.