Senate Enrolled Act 373 Summary

• Establishes supplemental allowance reserve accounts within four public pension systems (legislators' defined benefit plan, state excise police/gaming/conservation officers' retirement plan, public employees' retirement fund, and Indiana state teachers' retirement fund) to fund postretirement benefit increases, thirteenth checks, and other benefit adjustments granted after June 30, 2018.

• Requires the state lottery commission to transfer $7,500,000 quarterly to the Indiana public retirement system, allocating funds first to the pension stabilization fund and then to supplemental allowance reserve accounts.

• Mandates that contribution rates include a surcharge (not exceeding 1% of payroll) paid to supplemental allowance reserve accounts for specified employee groups, effective 2019 and thereafter.

• Restricts postretirement benefit increases to odd-numbered calendar years only and requires they be funded from uncommitted balances in reserve accounts and applied uniformly across all covered pension plans.

• Prohibits any postretirement benefit changes granted after June 30, 2018, from being paid unless actuarially pre-funded, effective July 1, 2018.