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IN SB0027
Bill
AI Summary
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Amends Indiana Code concerning the 1977 Police Officers' and Firefighters' Pension and Disability Fund to allow units (counties, cities, towns, townships) and members to negotiate cost-sharing agreements for purchasing prior service credit.
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Replaces the previous requirement that units amortize prior service liability over up to 30 years with a new framework allowing contributions to be paid in lump sum or installments over up to 30 years, with flexibility for different payment terms between unit and member.
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Creates a new category for members who will accrue 20 years of service credit by earliest retirement age but did not participate in PERF, allowing them to receive credit for one-third of prior service if contribution agreements are reached and amortized over up to 10 years.
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Maintains that members who will not accrue 20 years by earliest retirement age may still receive prior service credit, but contributions must be based on actual salary earned during prior service and amortized over up to 10 years.
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Declared an emergency measure, making the act effective upon passage rather than following standard implementation timelines.
Legislative Description
1977 fund new unit credits for prior service. Provides, in the case of a unit (county, city, town, or township) that begins participation in the 1977 police officers' and firefighters' pension and disability fund (1977 fund), that the unit and the member (firefighter, police officer, or emergency medical technician) may agree how to share the cost of acquiring credit in the 1977 fund for the member's prior service as a firefighter, police officer, or emergency medical technician. (The introduced version of this bill was prepared by the interim study committee on pension management oversight.)
Last Action
Public Law 43
3/13/2018