HB 1094 Summary

• Establishes a Deferred Retirement Option Plan (DROP) for members of the Public Employees' Retirement Fund (PERF) and Indiana State Teachers' Retirement Fund (TRF), excluding elected officials.

• Eligible members must be employed in a covered position and eligible for an unreduced retirement benefit; they may enter DROP only once and must select a retirement date between 12-36 months after entry.

• Members in DROP must continue making employee and employer contributions to their fund and execute an irrevocable commitment to retire on their selected DROP retirement date.

• Retiring members may choose either: (1) standard unreduced benefit as if never entering DROP, or (2) a "frozen benefit" based on compensation and service at DROP entry plus additional payments equal to the frozen benefit multiplied by months in DROP, payable as lump sum or three annual installments.

• Special provisions apply for disability retirement (partial benefits if disabled after 12 months in DROP), death (survivor benefits calculated as if never entered DROP), and cost-of-living increases (not applied to frozen benefit or additional amounts during DROP period).