CHAPTER 4. THE STATE POLICE 1987 BENEFIT SYSTEM
IC 10-12-4
Chapter 4. The State Police 1987 Benefit System
IC 10-12-4-1
Application of chapter; election of coverage
Sec. 1. (a) This chapter applies only to an employee beneficiarywho:
(1) is hired for the first time after June 30, 1987; or
(2) chooses coverage by this chapter under subsection (b).
(b) Subject to subsection (c), an employee beneficiary who ishired for the first time before July 1, 1987, may choose to be coveredby this chapter instead of IC 10-12-3 if the employee files an electionwith the trustee before July 1, 1988. An election filed under thissubsection is irrevocable and, except as provided in subsection (d),takes effect after twelve (12) months of service as an eligibleemployee following the filing of the election.
(c) This chapter is applicable only if the general assemblyprovides sufficient funding for the increased cost of the benefitsprovided by this chapter. If this chapter is not applicable, thenIC 10-12-3 applies to all employee beneficiaries regardless of whenhired for the first time.
(d) If an employee beneficiary's mandatory retirement date occursduring the twelve (12) months following the filing of an electionunder subsection (b), the election takes effect only if:
(1) the employee beneficiary serves as an eligible employeeuntil the mandatory retirement date; and
(2) the employee beneficiary pays to the trust fund a lump sumequal to the remaining deductions that would have been madefrom the employee beneficiary's wages under this chapterduring the twelve (12) months following the election if theemployee beneficiary had not retired.
The election takes effect on the mandatory retirement date or the datewhen the lump sum payment is made, whichever is later.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-2
Limitations on trust
Sec. 2. The pension trust for employee beneficiaries covered bythis chapter is subject to limitations specified in this chapter.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-3
Retirement age
Sec. 3. The normal retirement age for an employee beneficiarymust be established by the pension trust.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-4
Deductions from wages
Sec. 4. An employee beneficiary shall contribute to the trust fund,
by monthly deduction, six percent (6%) of the employee beneficiary'swages (excluding payments for overtime and determined withoutregard to any salary reduction agreement established under Section125 of the Internal Revenue Code).
As added by P.L.2-2003, SEC.3.
IC 10-12-4-5
Years of service for full pension amount; proportionate amount;beginning of payments
Sec. 5. (a) An employee beneficiary who has completedtwenty-five (25) years of service with the department is entitled tothe full amount of the basic pension amount specified in section 7 ofthis chapter.
(b) An employee beneficiary who has completed less thantwenty-five (25) years of service is entitled to a proportionate amountof the basic pension amount specified in section 7 of this chapter,based upon the employee beneficiary's years of service to thedepartment. However, benefit payments to an employee beneficiarywith less than twenty-five (25) years of service may not begin untilthe first day of the month on or after the date on which:
(1) the employee beneficiary becomes fifty (50) years of age; or
(2) the employee beneficiary retires;
whichever is later.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-6
Right to net amount paid into fund from wages
Sec. 6. If an employee beneficiary ends employment for anyreason before qualifying for a benefit under this chapter, the trusteeshall pay to:
(1) the employee beneficiary;
(2) the employee beneficiary's beneficiary; or
(3) the employee beneficiary's estate;
the net amount paid into the trust fund from the employeebeneficiary's wages. This amount may be paid in a lump sum or inmonthly installments not less than the basic pension amount.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-7
Basic monthly pension amount; additional benefits
Sec. 7. (a) Benefits provided under this section are subject toIC 10-12-2-3.
(b) Except as provided in subsection (c), the basic monthlypension amount of an employee beneficiary may not exceed one-half(1/2) of the employee beneficiary's average monthly wage (excludingpayments for overtime and determined without regard to any salaryreduction agreement established under Section 125 of the InternalRevenue Code) received during the highest paid consecutivethirty-six (36) months before retirement.
(c) For an employee beneficiary who retires after June 30, 1987,
and before July 1, 1988, the basic monthly pension may not exceedthe lesser of:
(1) the pension under subsection (b); or
(2) one-half (1/2) the maximum salary of a first sergeant.
(d) For an employee beneficiary who retires after June 30, 1988,and before July 1, 1989, the basic monthly pension may not exceedthe lesser of:
(1) the pension under subsection (b); or
(2) one-half (1/2) the maximum salary of a captain.
(e) An employee beneficiary in the active service of thedepartment who has completed twenty-five (25) years of service afterJuly 1, 1937, and who continues after July 1, 1937, in the service ofthe department is entitled to add to the basic monthly pensionamount, at retirement, the following:
(1) Five percent (5%) of the basic amount for each of the nextthree (3) full years over twenty-five (25) years.
(2) Six percent (6%) of the basic amount for each of the nexttwo (2) full years over twenty-eight (28) years.
(3) Seven percent (7%) of the basic amount for each of the nexttwo (2) full years over thirty (30) years.
(4) Eight percent (8%) of the basic amount for each of the nexttwo (2) full years over thirty-two (32) years.
However, the total of these additional amounts may not exceedseventy percent (70%) of the basic pension amount. These additionalbenefits are subject to any compulsory retirement age provided bythe pension trust.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-8
Increase in pension to certain individuals
Sec. 8. (a) The basic monthly pension payable under section 7 ofthis chapter after June 30, 1995, to a member of the pension trustwho retired after June 30, 1987, and before July 1, 1990, shall beincreased by thirty-nine dollars ($39).
(b) The department shall pay into the trust fund an amountsufficient to pay the increased benefits granted under this section.The trustee shall pay the increase in the monthly benefit required bythis section from money in the trust fund.
As added by P.L.2-2003, SEC.3.
IC 10-12-4-9
Benefit increase payable after June 30, 2007
Sec. 9. (a) The basic monthly pension amount (plus postretirementincreases) payable after June 30, 2007, to an employee beneficiaryof the state police 1987 benefit system who retired or was disabledafter June 30, 1987, and before July 2, 2005, shall be increased byone percent (1%) of the maximum basic monthly pension amountpayable to a retired state police employee in the grade of a trooperwho has completed twenty-five (25) years of service as of July 1,2007, as calculated under section 7 of this chapter. (b) The increases specified in this section:
(1) shall be based on the date of the employee beneficiary'slatest retirement or disability;
(2) do not apply to the benefits payable in a lump sum; and
(3) are in addition to any other increase provided by law.
As added by P.L.189-2007, SEC.2.
IC 10-12-4-10
Benefit increase payable after June 30, 2008
Sec. 10. (a) The basic monthly pension amount (pluspostretirement increases) payable after June 30, 2008, to anemployee beneficiary of the state police 1987 benefit system whoretired or was disabled after June 30, 1987, and before July 2, 2006,shall be increased by one percent (1%) of the maximum basicmonthly pension amount payable to a retired state police employeein the grade of trooper who has completed twenty-five (25) years ofservice as of July 1, 2007, as calculated under section 7 of thischapter.
(b) The increases specified in this section:
(1) shall be based on the date of the employee beneficiary'slatest retirement or disability;
(2) do not apply to the benefits payable in a lump sum; and
(3) are in addition to any other increase provided by law.
As added by P.L.189-2007, SEC.3.