CHAPTER 7. 1937 FIREFIGHTERS' PENSION FUND
IC 36-8-7
Chapter 7. 1937 Firefighters' Pension Fund
IC 36-8-7-1
Application of chapter
Sec. 1. (a) This chapter applies to pension benefits for membersof fire departments hired before May 1, 1977, in units for which a1937 fund was established before May 1, 1977.
(b) A firefighter with twenty (20) years of service is covered bythis chapter and not by IC 36-8-8 if the firefighter:
(1) was hired before May 1, 1977;
(2) did not convert under IC 19-1-36.5-7 (repealed September1, 1981); and
(3) is rehired after April 30, 1977, by the same employer.
(c) A firefighter is covered by this chapter and not by IC 36-8-8if the firefighter:
(1) was hired before May 1, 1977;
(2) did not convert under IC 19-1-36.5-7 (repealed September1, 1981);
(3) was rehired after April 30, 1977, but before February 1,1979; and
(4) was made, before February 1, 1979, a member of a 1937fund.
(d) A firefighter who:
(1) is covered by this chapter before a consolidation underIC 36-3-1-6.1; and
(2) becomes a member of a fire department of a consolidatedcity under IC 36-3-1-6.1;
is covered by this chapter after the effective date of theconsolidation, and the firefighter's service as a member of a firedepartment of a consolidated city is considered active service underthis chapter.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.3-1990,SEC.130; P.L.170-2002, SEC.162; P.L.227-2005, SEC.39.
IC 36-8-7-2
"Fire company" defined
Sec. 2. As used in this chapter, "fire company" means eachorganization or group doing duty as part of the fire department,including engine companies, hose companies, those in the telephoneor telegraph service, inspectors, mechanics, watchmen, and others incharge of apparatus for extinguishing fires.
As added by Acts 1981, P.L.309, SEC.57.
IC 36-8-7-2.5
Qualification of 1937 fund under Internal Revenue Code; benefitlimitations
Sec. 2.5. (a) As used in this chapter, "Internal Revenue Code":
(1) means the Internal Revenue Code of 1954, as in effect onSeptember 1, 1974, if permitted with respect to governmental
plans; or
(2) to the extent not inconsistent with subdivision (1), has themeaning set forth in IC 6-3-1-11.
(b) The 1937 fund shall satisfy the qualification requirements inSection 401 of the Internal Revenue Code, as applicable to the 1937fund. In order to meet those requirements, the 1937 fund is subjectto the following provisions, notwithstanding any other provision ofthis chapter:
(1) The local board shall distribute the corpus and income of the1937 fund to members and their beneficiaries in accordancewith this chapter.
(2) No part of the corpus or income of the 1937 fund may beused or diverted to any purpose other than the exclusive benefitof the members and their beneficiaries.
(3) Forfeitures arising from severance of employment, death, orfor any other reason may not be applied to increase the benefitsany member would otherwise receive under this chapter.
(4) If the 1937 fund is terminated, or if all contributions to the1937 fund are completely discontinued, the rights of eachaffected member to the benefits accrued at the date of thetermination or discontinuance, to the extent then funded, arenonforfeitable.
(5) All benefits paid from the 1937 fund shall be distributed inaccordance with the requirements of Section 401(a)(9) of theInternal Revenue Code and the regulations under that section.In order to meet those requirements, the 1937 fund is subject tothe following provisions:
(A) The life expectancy of a member, the member's spouse,or the member's beneficiary shall not be recalculated afterthe initial determination, for purposes of determiningbenefits.
(B) If a member dies before the distribution of the member'sbenefits has begun, distributions to beneficiaries must beginno later than December 31 of the calendar year immediatelyfollowing the calendar year in which the member died.
(C) The amount of an annuity paid to a member's beneficiarymay not exceed the maximum determined under theincidental death benefit requirement of the Internal RevenueCode.
(6) The local board may not:
(A) determine eligibility for benefits;
(B) compute rates of contribution; or
(C) compute benefits of members or beneficiaries;
in a manner that discriminates in favor of members who areconsidered officers, supervisors, or highly compensated, asprohibited under Section 401(a)(4) of the Internal RevenueCode.
(7) Benefits paid under this chapter may not exceed themaximum benefit specified by Section 415 of the InternalRevenue Code. (8) The salary taken into account under this chapter may notexceed the applicable amount under Section 401(a)(17) of theInternal Revenue Code.
(9) The local board may not engage in a transaction prohibitedby Section 503(b) of the Internal Revenue Code.
(c) Notwithstanding any other provision of this chapter, and solelyfor the purposes of the benefits provided under this chapter, thebenefit limitations of Section 415 of the Internal Revenue Code shallbe determined by applying the provisions of Section 415(b)(10) ofthe Internal Revenue Code, as amended by the Technical andMiscellaneous Revenue Act of 1988. This section constitutes anelection under Section 415(b)(10)(C) of the Internal Revenue Codeto have Section 415(b) of the Internal Revenue Code, other thanSection 415(b)(2)(G) of the Internal Revenue Code, applied withoutregard to Section 415(b)(2)(F) of the Internal Revenue Code toanyone who did not first become a participant before January 1,1990.
As added by P.L.55-1989, SEC.52. Amended by P.L.4-1990, SEC.16.
IC 36-8-7-2.7
"Americans with Disabilities Act"
Sec. 2.7. As used in this chapter, "Americans with DisabilitiesAct" refers to the Americans with Disabilities Act (42 U.S.C. 12101et seq.) and any amendments and regulations related to the Act.
As added by P.L.4-1992, SEC.36.
IC 36-8-7-2.9
Administration of fund
Sec. 2.9. The 1937 fund shall be administered in a manner that isconsistent with the Americans with Disabilities Act, to the extentrequired by the Act.
As added by P.L.4-1992, SEC.37.
IC 36-8-7-3
Creation of fund; management by board of trustees; powers andduties
Sec. 3. (a) A firefighters' pension fund to be known as the 1937fund is established in each unit described by section 1(a) of thischapter.
(b) The 1937 fund shall be managed by a board of trustees(referred to as the "local board" in this chapter) composed of seven(7) trustees. Two (2) trustees are the executive of the unit and the firechief, who are ex officio voting trustees. The other trustees are one(1) retired member of the fire department and four (4) activemembers of the fire department elected for the terms and in themanner provided in this chapter.
(c) The local board has control of the 1937 fund of the unit. Thelocal board shall manage, use, and disburse the fund for the purposeand in the manner prescribed by this chapter. The local board mayadopt and enforce bylaws that do not conflict with this chapter and
are considered necessary to enable it to achieve the purposes forwhich it was organized. Each trustee shall, before entering upon theduties of his office, take an oath to faithfully perform his duties.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.236-1996,SEC.3.
IC 36-8-7-4
Fire departments with fewer than five members; trustees; elections
Sec. 4. (a) If a unit has less than five (5) members in its firedepartment, the unit may provide for the organization of a localboard consisting of the fire chief, the executive of the unit, and one(1) member of the fire department.
(b) The trustee from the fire department shall be elected under thissection.
(c) The local board may amend the bylaws of the fund to elect thetrustee from the fire department in an election held on any three (3)consecutive days in February specified in the bylaws. The electionshall be called by the fire chief and held at the house or quarters ofthe fire department. Subject to this section, the election shall beconducted in the manner specified in the bylaws.
(d) This subsection applies only if the local board does not electto be governed by subsection (c). The trustee from the firedepartment shall be elected at a meeting held on the second Mondayin February each year. The meeting shall be called by the fire chiefand held at the house or quarters of the fire department.
(e) The term of the elected trustee is one (1) year beginningimmediately after the trustee's election.
(f) Each member of the department is entitled to one (1) ballot andthe person receiving the highest number of votes is elected. Theexecutive of the unit, the fire chief, and the city or county clerk shallcanvass and count the ballots, and the clerk shall issue a certificateof election to the person having received the highest number of votes.If two (2) persons have received the same number of votes, theexecutive and the chief shall immediately determine by lot who willbe the trustee from the persons receiving an equal number of votes.
(g) This section does not apply to a township if the firedepartment of the township is consolidated under IC 36-3-1-6.1.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.170-1994,SEC.1; P.L.227-2005, SEC.40.
IC 36-8-7-5
Trustees; election of active members
Sec. 5. (a) An election shall be held each year under this sectionto elect one (1) trustee from the active members of the firedepartment for a term of four (4) years, commencing on the day ofhis election. The fire chief shall fix a time for holding a conventionto nominate candidates for trustees to be elected at each election.Each convention must be held at least five (5) days before the day onwhich the annual election is held. A convention consists of one (1)delegate from each fire company and one (1) delegate to be selected
by the chief and the chief's assistants. The delegate from each firecompany shall be elected by ballot by the members of the companyat a time to be fixed by the chief in the call for a convention. Theelection of delegates shall be certified by the captain or other officerof the company, or, if there is not an officer present, then by theoldest member of the company present. The convention, whenassembled, shall nominate six (6) members of the fire department tobe voted upon as trustees, and the delegates shall report the names ofthe persons nominated as candidates to their respective companies inwriting.
(b) The local board may amend the bylaws of the fund to elect thetrustee from the active members of the fire department in an electionheld on any three (3) consecutive days in February specified in thebylaws. The election shall be called by the fire chief and held at thehouse or quarters of the respective companies of the fire department.Subject to this section, the election shall be conducted in the mannerspecified in the bylaws.
(c) This subsection applies only if the local board does not electto be governed by subsection (b). The election shall be held at thehouses or quarters of the respective companies on the secondMonday in February between 9 a.m. and 6 p.m.
(d) Each member of a fire company is entitled to one (1) ballot,and the ballot may not contain the names of more than one (1)person, chosen from the six (6) persons nominated by the convention.The candidate receiving the highest number of votes is elected.
(e) The captain or other officer in command of each of the firecompanies, immediately after the casting of all ballots, shall canvassand count the ballots. The captain or other officer shall certify inwriting the total number of ballots cast and the number of votesreceived by each candidate for the office of trustee. After signing thecertificate, the officer shall enclose it, together with all the ballotscast by the fire company, in an envelope, securely sealed andaddressed, and deliver them to the fire chief. The fire chief shalldeliver them to the executive of the unit as soon as the chief receivesall the certificates and ballots. Upon receipt the executive shall, inthe presence of the chief and the clerk of the unit, open theenvelopes, examine the certificates, and determine the total numberof votes cast for each of the candidates. The executive shall thenissue a certificate of election to the candidate having received thehighest number of votes. If two (2) or more candidates have receivedthe same number of votes, the executive and the chief shallimmediately determine by lot who will be trustee from the personsreceiving an equal number of votes. An election may not be set asidefor lack of formality in balloting by the members or in certifying ortransmitting the returns of an election by the officers in charge.
(f) This section does not apply to a township if the fire departmentof the township is consolidated under IC 36-3-1-6.1.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.170-1994,SEC.2; P.L.227-2005, SEC.41.
IC 36-8-7-6
Trustees; election of retired members
Sec. 6. (a) An election shall be held under this section every two(2) years to elect one (1) trustee from the retired members of the firedepartment for a term of two (2) years, commencing on the day ofthe trustee's election, if the retired list contains at least three (3)retired members at the time of election. The fire chief shall fix a timefor holding a convention to nominate candidates for trustee to beelected at each election. Each convention must be held at least fifteen(15) days before the day on which the biennial election is held. Allretired members of the fire department may participate in theconvention. The convention, when assembled, shall nominate notmore than four (4) members of the retired list to be voted upon astrustee. The secretary of the board shall mail the names of thepersons nominated along with an official ballot to the retiredmembers within forty-eight (48) hours of the end of the convention.
(b) The election shall be conducted by mail. Each retired memberis entitled to cast one (1) ballot by mail and the ballot may notcontain more than one (1) name, chosen from the list of retiredpersons nominated by the convention. The candidate receiving thehighest number of votes by 6 p.m. on the second Monday in Februaryor an alternative date in February specified in the bylaws of the fundis elected.
(c) The ballots must remain closed and inviolate until the close ofthe election, at which time, in the presence of the executive of theunit, the fire chief, and the clerk of the unit, the ballots shall beopened and counted. A certificate of election shall be issued to thecandidate receiving the highest number of votes. If two (2) or morecandidates receive the same number of votes, the executive and thechief shall immediately determine by lot who will be trustee from thepersons receiving an equal number of votes.
(d) This section does not apply to a township if the firedepartment of the township is consolidated under IC 36-3-1-6.1.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.170-1994,SEC.3; P.L.227-2005, SEC.42.
IC 36-8-7-6.5
Securing ballots; tampering with ballots
Sec. 6.5. (a) All ballots voted under this chapter shall be secureduntil the balloting is closed.
(b) Tampering with a ballot for an election under this chapter isa Class A infraction.
(c) This section does not apply to a township if the firedepartment of the township is consolidated under IC 36-3-1-6.1.
As added by P.L.170-1994, SEC.4. Amended by P.L.227-2005,SEC.43.
IC 36-8-7-7
Trustees; officers; adoption of rules; duty to hear applications forpensions Sec. 7. (a) The fire chief is the president of the local board.
(b) At the first meeting after each election, the local board shallelect a secretary, who may be chosen from among the trustees.However, the local board may consider it proper to have a secretarywho is a member of the fire department, to be elected by thecompanies for a term of four (4) years in the same manner as theelection for trustees. The secretary shall keep a full record of all theproceedings of the local board in a book provided for that purpose.
(c) The local board shall make all rules necessary for thedischarge of its duties and shall hear and determine all applicationsfor relief or pensions under this chapter.
(d) This section does not apply to a township if the firedepartment of the township is consolidated under IC 36-3-1-6.1.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.227-2005,SEC.44.
IC 36-8-7-8
Derivation of money in fund
Sec. 8. The 1937 fund is derived from the following sources:
(1) From all money and other property that is given to the localboard or 1937 fund for the uses and purposes for which the fundis created. The local board may take by gift, grant, devise, orbequest any money, personal property, real estate, or an interestin it. The gift, grant, devise, or bequest may be absolute or infee simple or upon the condition that only the rents, income, orprofits arising from it may be applied to the purposes for whichthe fund is established.
(2) All money, fees, rewards, or emoluments that are paid,given, devised, or bequeathed to the fire department or one (1)of the fire companies.
(3) All money accruing as interest on the securities orinvestments that are owned by and held in the name of the localboard.
(4) All money received by the local board from the sale or bythe maturity of securities or investments owned by the localboard.
(5) An assessment made during the period of his employmentor for thirty-two (32) years, whichever is shorter, on the salaryof each member equal to six percent (6%) of the salary of afully paid first class firefighter. However, the employer may payall or a part of the assessment for the member. The secretary ofthe fire department, or the person whose duty it is to make outthe payrolls, shall place on the payroll opposite the name ofevery member the amount of assessment on his salary. Theunit's fiscal officer shall deduct monthly from the salary ofevery member the sum listed opposite his name, other than anyamount paid on behalf of the member, and shall credit thatamount to the 1937 fund. Except to the extent the assessment ispaid on behalf of the member, every person who becomes amember of the fire department is liable for the assessment and
is conclusively considered to agree to pay it by having itdeducted from his salary as required in this section.
(6) Appropriations that are made for the fund by the unit's fiscalbody.
As added by Acts 1981, P.L.309, SEC.57. Amended by Acts 1981,P.L.182, SEC.6; P.L.312-1989, SEC.2.
IC 36-8-7-9
Use of funds
Sec. 9. The 1937 fund and the appropriations made for the fundshall be used exclusively for the following:
(1) Payments to retired members and the dependents ofdeceased members.
(2) Death benefits.
(3) Other incidental expenses that are authorized by and areessential to the proper administration of this chapter, includingthe payment of all costs of litigation (including attorney's fees)arising in connection with the 1937 fund.
(4) Payments described in section 9.5 of this chapter.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.349-1987,SEC.1; P.L.182-2009(ss), SEC.429.
IC 36-8-7-9.5
Use of certain amounts in 1937 fund
Sec. 9.5. (a) This section applies to a balance in a 1937 fund that:
(1) accrued from property taxes;
(2) is not necessary to meet the pension, disability, and survivorbenefit payment obligations of the 1937 fund because ofamendments to IC 5-10.3-11-4.7 in 2008; and
(3) is determined under subsection (c).
(b) A local board may authorize the use of money in the 1937fund to pay any or all of the following:
(1) The costs of health insurance or other health benefitsprovided to members, survivors, and beneficiaries of the 1937fund.
(2) The unit's employer contributions under IC 36-8-8-6.
(3) The contributions paid by the unit for a member underIC 36-8-8-8(a).
(c) The maximum amount that may be used under subsection (b)is equal to the sum of the following:
(1) the unencumbered balance of the 1937 fund on December31, 2008; plus
(2) the amount of property taxes:
(A) imposed for an assessment date before January 16, 2008,for the benefit of the 1937 fund; and
(B) deposited in the 1937 fund after December 31, 2008.
As added by P.L.182-2009(ss), SEC.430.
IC 36-8-7-10
Investment of funds Sec. 10. (a) The local board shall determine how much of the1937 fund may be safely invested and how much should be retainedfor the needs of the fund. Investments are restricted to the following:
(1) Interest bearing direct obligations of the United States or ofthe state or bonds lawfully issued by an Indiana politicalsubdivision. The securities shall be deposited with and mustremain in the custody of the treasurer of the local board, whoshall collect the interest on them as it becomes due and payable.
(2) Savings deposits or certificates of deposit of a charterednational, state, or mutual bank whose deposits are insured by afederal agency. However, deposits may not be made in excessof the amount of insurance protection afforded a member orinvestor of the bank.
(3) Shares of a federal savings association organized under 12U.S.C. 1461, as amended, and having its principal office inIndiana, or of a savings association organized and operatingunder Indiana statutes whose accounts are insured by a federalagency. However, shares may not be purchased in excess of theamount of insurance protection afforded a member or investorof the association.
(4) An investment made under IC 5-13-9.
(b) All securities must be kept on deposit with the unit's fiscalofficer, who shall collect all interest due and credit it to the 1937fund.
(c) The fiscal officer shall keep a separate account of the 1937fund and shall fully and accurately set forth a statement of all moneyreceived and paid out by him. The officer shall, on the first Mondayof January and June of each year, make a report to the local board ofall money received and distributed by him. The president of the localboard shall execute the officer's bond in the sum that the local boardconsiders adequate, conditioned that the fiscal officer will faithfullydischarge the duties of the fiscal officer's office and faithfullyaccount for and pay over to the persons authorized to receive it allmoney that comes into the fiscal officer's hands by virtue of the fiscalofficer's office. The bond and sureties must be approved by the localboard and filed with the executive of the unit. The local board shallmake a full and accurate report of the condition of the 1937 fund tothe unit's fiscal officer on the first Monday of February in each year.
(d) All securities that were owned by and held in the name of thelocal board on January 1, 1938, shall be held and kept for the localboard by the unit's fiscal officer until they mature and are retired.However, if an issue of the securities is refunded, the local boardshall accept refunding securities in exchange for and in an amountequal to the securities refunded. All money received by the localboard for the surrender of matured and retired securities shall be paidinto and constitutes a part of the 1937 fund of the unit, as providedin section 8 of this chapter.
(e) Investments under this section are subject to section 2.5 of thischapter.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.55-1989,
SEC.53; P.L.79-1998, SEC.109; P.L.35-1999, SEC.9; P.L.173-2003,SEC.34.
IC 36-8-7-11
Members retiring due to disability or inability to perform essentialfunctions of job; monthly benefit
Sec. 11. (a) Benefits paid under this section are subject to section2.5 of this chapter.
(b) If a member of the fire department becomes seventy (70) yearsof age or is found upon examination by a medical officer to have aphysical or mental disability and to be unable to perform theessential functions of the job, considering reasonable accommodationto the extent required by the Americans with Disabilities Act, so asto make necessary the person's retirement from all service with thedepartment, the local board shall retire the person.
(c) The local board may retire a person for disability only after ahearing conducted under IC 36-8-8-12.7.
(d) If after the hearing the local board determines that a personwho became disabled before July 1, 2000, is disabled and unable toperform the essential functions of the job, considering reasonableaccommodation to the extent required by the Americans withDisabilities Act, the local board shall then authorize the monthlypayment to the person from the 1937 fund of an amount equal tofifty-five percent (55%) of the salary of a fully paid first classfirefighter in the unit at the time of the payment of the pension. Allphysical and mental examinations of members of the fire departmentshall be made on order of the local board by a medical officerdesignated by the local board.
(e) If after the hearing under this section and a recommendationunder section 12.5 of this chapter, the 1977 fund advisory committeedetermines that a person who becomes disabled after June 30, 2000:
(1) has a disability that is:
(A) the direct result of:
(i) a personal injury that occurs while the fund member ison duty;
(ii) a personal injury that occurs while the fund member isresponding to an emergency or reported emergency forwhich the fund member is trained; or
(iii) an occupational disease (as defined in IC 22-3-7-10),including a duty related disease that is also includedwithin clause (B);
(B) a duty related disease (for purposes of this section, a"duty related disease" means a disease arising out of the fundmember's employment. A disease is considered to arise outof the fund member's employment if it is apparent to therational mind, upon consideration of all of thecircumstances, that:
(i) there is a connection between the conditions underwhich the fund member's duties are performed and thedisease; (ii) the disease can be seen to have followed as a naturalincident of the fund member's duties as a result of theexposure occasioned by the nature of the fund member'sduties; and
(iii) the disease can be traced to the fund member'semployment as the proximate cause); or
(C) a disability presumed incurred in the line of duty underIC 5-10-13 or IC 5-10-15; and
(2) is unable to perform the essential functions of the job,considering reasonable accommodation to the extent requiredby the Americans with Disabilities Act;
the local board shall then authorize the monthly payment to theperson from the 1937 fund of an amount equal to fifty-five percent(55%) of the salary of a fully paid first class firefighter in the unit atthe time of the payment of the pension. All physical and mentalexaminations of members of the fire department shall be made onorder of the local board by a medical officer designated by the localboard.
(f) If after the hearing under this section and a recommendationunder section 12.5 of this chapter, the 1977 fund advisory committeedetermines that a person who becomes disabled after June 30, 2000:
(1) has a disability that is not a disability described insubsection (e)(1); and
(2) is unable to perform the essential functions of the job,considering reasonable accommodation to the extent requiredby the Americans with Disabilities Act;
the local board shall then authorize the monthly payment to theperson from the 1937 fund of an amount equal to fifty-five percent(55%) of the salary of a fully paid first class firefighter in the unit atthe time of the payment of the pension. All physical and mentalexaminations of members of the fire department shall be made onorder of the local board by a medical officer designated by the localboard.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.364-1983,SEC.3; P.L.199-1984, SEC.2; P.L.38-1986, SEC.4; P.L.55-1989,SEC.54; P.L.311-1989, SEC.3; P.L.4-1992, SEC.38; P.L.197-1993,SEC.3; P.L.40-1997, SEC.6; P.L.118-2000, SEC.10; P.L.246-2001,SEC.14; P.L.185-2002, SEC.7; P.L.62-2006, SEC.3; P.L.99-2007,SEC.216.
IC 36-8-7-12
Repealed
(Repealed by P.L.196-1988, SEC.5.)
IC 36-8-7-12.1
Members retiring with 20 years service
Sec. 12.1. (a) Benefits paid under this section are subject tosection 2.5 of this chapter.
(b) A member who has been in service twenty (20) years, uponmaking a written application to the fire chief, may be retired from all
service with the department without a medical examination ordisability. Except as provided in subsection (f), the local board shallauthorize the payment to the retired member of fifty percent (50%)of the salary of a fully paid first class firefighter of the unit at thetime of the payment of the pension, plus:
(1) for a member who retires before January 1, 1986, twopercent (2%) of that salary for each year of service; or
(2) for a member who retires after December 31, 1985, onepercent (1%) of that salary for each six (6) months of service;
over twenty (20) years. However, the pension in one (1) year may notexceed an amount greater than seventy-four percent (74%) of thesalary of a fully paid first class firefighter.
(c) A member who is discharged from the fire department afterhaving served at least twenty (20) years is entitled to receive theamount equal to the amount that the member would have received ifthe member retired voluntarily.
(d) All pensions in a class are on an equal basis. The local boardmay not depart from this chapter in authorizing the payment ofpensions.
(e) The monthly pension payable to a member may not be reducedbelow the amount of the first full monthly pension received by thatperson.
(f) The monthly pension payable to a member who is transferredfrom disability to regular retirement status may not be reduced belowfifty-five percent (55%) of the salary of a fully paid first classfirefighter in the unit at the time of the payment of the pension.
(g) A benefit payable under this section shall be paid in not lessthan twelve (12) monthly installments.
(h) A fund member who is receiving disability benefits undersection 11(d) or 11(f) of this chapter shall be transferred fromdisability to regular retirement status when the member becomesfifty-five (55) years of age.
(i) A fund member who is receiving disability benefits undersection 11(e) of this chapter is entitled to:
(1) receive a disability benefit for the remainder of the fundmember's life; and
(2) have the amount of the disability benefit computed undersection 11(e) of this chapter when the fund member becomesfifty-five (55) years of age.
As added by P.L.196-1988, SEC.2. Amended by P.L.1-1989, SEC.71;P.L.55-1989, SEC.55; P.L.171-1990, SEC.2; P.L.197-1993, SEC.4;P.L.52-1993, SEC.4; P.L.1-1994, SEC.179; P.L.231-1997, SEC.3;P.L.40-1997, SEC.7; P.L.118-2000, SEC.11; P.L.62-2006, SEC.4.
IC 36-8-7-12.2
Members dying other than in line of duty
Sec. 12.2. (a) This section applies to an active or retired memberwho dies other than in the line of duty (as defined in section 12.4 ofthis chapter).
(b) If a member of the fire department or a retired member of the
1937 fund dies and leaves:
(1) a surviving spouse;
(2) a child or children less than eighteen (18) years of age;
(3) a child or children at least eighteen (18) years of age whoare mentally or physically incapacitated; or
(4) a child or children less than twenty-three (23) years of agewho are:
(A) enrolled in and regularly attending a secondary school;or
(B) full-time students at an accredited college or university;
the local board shall authorize the payment to the surviving spouseand to the child or children the amount from the fund as prescribedby this section. If the surviving spouse of a deceased memberremarried before September 1, 1983, and pension benefits ceased onthe date of remarriage, the benefits for the surviving spouse shall bereinstated on July 1, 1997, and continue during the life of thesurviving spouse. If the pension of the surviving spouse of adeceased member has ceased by virtue of the spouse's remarriage,and if the person to whom the spouse has remarried was a retiredmember of the fire department who was also entitled to a pension,then upon the death of the member to whom the spouse hadremarried, the spouse is entitled to receive a pension as the survivingspouse of a deceased member as though the spouse had not beenremarried.
(c) If a deceased member of the fire department leaves nosurviving spouse or children but leaves a dependent parent, and uponsatisfactory proof that the parent was wholly dependent upon thedeceased member, the local board shall authorize the monthlypayment to the parent from the 1937 fund that is prescribed by thissection.
(d) If a member dies while in active service or after retirement:
(1) the surviving spouse is entitled to receive an amount fixedby ordinance but not less than:
(A) for the surviving spouse of a member who dies beforeJanuary 1, 1989, thirty percent (30%) of the salary of a fullypaid first class firefighter in the unit at the time of thepayment of the pension; and
(B) for the surviving spouse of a member who dies afterDecember 31, 1988, except as otherwise provided in thisclause, an amount per month, during the spouse's life, equalto the greater of thirty percent (30%) of the monthly pay ofa first class firefighter or fifty-five percent (55%) of themonthly benefit the deceased member was receiving or wasentitled to receive on the date of the member's death (theseamounts shall be proportionately increased or decreased ifthe salary of a first class firefighter is increased ordecreased); however, if the deceased member was notentitled to a benefit because the member had not completedtwenty (20) years of service, for purposes of computing thesecond amount under this item, the member's benefit is
considered to be fifty percent (50%) of the monthly salary ofa first class firefighter in the unit at the time of payment ofthe pension;
(2) the member's children who are:
(A) less than eighteen (18) years of age; or
(B) less than twenty-three (23) years of age if the childrenare enrolled in and regularly attending a secondary school orare full-time students at an accredited college or university;
are each entitled to receive an amount fixed by ordinance butnot less than twenty percent (20%) of the salary of a fully paidfirst class firefighter in the unit at the time of the payment of thepension; and
(3) each parent of a deceased member who was eligible for apension is entitled to receive jointly an amount equal to thirtypercent (30%) of the salary of a fully paid first class firefighterin the unit at the time of the payment of the pension.
If the local board finds upon the submission of satisfactory proof thata child eighteen (18) years of age or older is mentally or physicallyincapacitated, is not a ward of the state, and is not receiving a benefitunder subdivision (2)(B), the child is entitled to receive the sameamount as is paid to the surviving spouse of a deceased firefighter,as long as the mental or physical incapacity continues. A sum paidfor the benefit of a child or children shall be paid to the remainingparent, if alive, as long as the child or children reside with and aresupported by the parent. If the parent dies, the sum shall be paid tothe lawful guardian of the child or children.
(e) The monthly pension payable to a survivor may not be reducedbelow the amount of the first full monthly pension received by thatperson.
(f) A benefit payable under this section shall be paid in not lessthan twelve (12) monthly installments.
As added by P.L.118-2000, SEC.12.
IC 36-8-7-12.3
Members dying in line of duty before September 1, 1982
Sec. 12.3. (a) This section applies to a member who died in theline of duty (as defined in section 12.4 of this chapter) beforeSeptember 1, 1982.
(b) If a member of the fire department or a retired member of the1937 fund dies and leaves:
(1) a surviving spouse;
(2) a child or children less than eighteen (18) years of age;
(3) a child or children at least eighteen (18) years of age whoare mentally or physically incapacitated; or
(4) a child or children less than twenty-three (23) years of agewho are:
(A) enrolled in and regularly attending a secondary school;or
(B) full-time students at an accredited college or university;
the local board shall authorize the payment to the surviving spouse
and to the child or children of the amount from the fund asprescribed by this section. If the surviving spouse of a deceasedmember remarried before September 1, 1983, and pension benefitsceased on the date of remarriage, the benefits for the survivingspouse shall be reinstated on July 1, 1997, and continue during thelife of the surviving spouse. If the pension of the surviving spouse ofa deceased member has ceased by virtue of the spouse's remarriage,and if the person to whom the spouse has remarried was a retiredmember of the fire department who was also entitled to a pension,then upon the death of the member to whom the spouse hadremarried, the spouse is entitled to receive a pension as the survivingspouse of a deceased member as though the spouse had not beenremarried.
(c) If a deceased member of the fire department leaves nosurviving spouse or children but leaves a dependent parent, and uponsatisfactory proof that the parent was wholly dependent upon thedeceased member, the local board shall authorize the monthlypayment to the parent from the 1937 fund that is prescribed by thissection.
(d) If a member dies while in active service:
(1) the surviving spouse is entitled to receive an amount fixedby ordinance but not less than thirty percent (30%) of the salaryof a fully paid first class firefighter in the unit at the time of thepayment of the pension;
(2) the member's children who are:
(A) less than eighteen (18) years of age; or
(B) less than twenty-three (23) years of age if the childrenare enrolled in and regularly attending a secondary school orare full-time students at an accredited college or university;
are each entitled to receive an amount fixed by ordinance butnot less than twenty percent (20%) of the salary of a fully paidfirst class firefighter in the unit at the time of the payment of thepension; and
(3) each parent of a deceased member who was eligible for apension is entitled to receive jointly an amount equal to thirtypercent (30%) of the salary of a fully paid first class firefighterin the unit at the time of the payment of the pension.
If the local board finds upon the submission of satisfactory proof thata child eighteen (18) years of age or older is mentally or physicallyincapacitated, is not a ward of the state, and is not receiving a benefitunder subdivision (2)(B), the child is entitled to receive the sameamount as is paid to the surviving spouse of a deceased firefighter aslong as the mental or physical incapacity continues. A sum paid forthe benefit of a child or children shall be paid to the remainingparent, if alive, as long as the child or children reside with and aresupported by the parent. If the parent dies, the sum shall be paid tothe lawful guardian of the child or children.
(e) The monthly pension payable to a survivor may not be reducedbelow the amount of the first full monthly pension received by thatperson. (f) A benefit payable under this section shall be paid in not lessthan twelve (12) monthly installments.
(g) The unit of local government that employed the deceasedmember shall after December 31, 2003, offer to provide and pay forhealth insurance coverage for the member's surviving spouse and foreach natural child, stepchild, or adopted child of the member:
(1) until the child becomes eighteen (18) years of age;
(2) until the child becomes twenty-three (23) years of age if thechild is enrolled in and regularly attending a secondary schoolor is a full-time student at an accredited college or university;or
(3) during the entire period of the child's physical or mentaldisability;
whichever period is longest. If health insurance coverage is offeredby the unit to active members, the health insurance provided to asurviving spouse and child under this subsection must be equal incoverage to that offered to active members. The offer to provide andpay for health insurance coverage shall remain open for as long asthere is a surviving spouse or as long as a natural child, stepchild, oradopted child of the member is eligible for the coverage undersubdivision (1), (2), or (3).
As added by P.L.118-2000, SEC.13. Amended by P.L.86-2003,SEC.4.
IC 36-8-7-12.4
Members dying in line of duty after August 31, 1982
Sec. 12.4. (a) This section applies to an active member who diesin the line of duty after August 31, 1982.
(b) If a member dies in the line of duty after August 31, 1982, thesurviving spouse is entitled to a monthly benefit, during the spouse'slifetime, equal to the benefit to which the member would have beenentitled on the date of the member's death, but not less than fiftypercent (50%) of the monthly wage received by a fully paid firstclass firefighter. If the spouse remarried before September 1, 1983,and benefits ceased on the date of remarriage, the benefits for thesurviving spouse shall be reinstated on July 1, 1997, and continueduring the life of the surviving spouse. If the pension of the survivingspouse of a deceased member has ceased by virtue of the spouse'sremarriage, and if the person to whom the spouse has remarried wasa retired member of the fire department who was also entitled to apension, then upon the death of the member to whom the spouse hadremarried, the spouse is entitled to receive a pension as the survivingspouse of a deceased member as though the spouse had not beenremarried.
(c) If a member dies while in active service, the member's childrenwho are:
(1) less than eighteen (18) years of age; or
(2) less than twenty-three (23) years of age if the children areenrolled in and regularly attending a secondary school or arefull-time students at an accredited college or university;are each entitled to receive an amount fixed by ordinance but not lessthan twenty percent (20%) of the salary of a fully paid first classfirefighter in the unit at the time of the payment of the pension.
(d) The surviving children of the deceased member who areeligible to receive a benefit under subsection (c) may receive anadditional benefit in an amount fixed by ordinance, but the totaladditional benefit under this subsection to all the member's childrenmay not exceed a total of thirty percent (30%) of the monthly wagereceived by a first class firefighter. However, this limitation does notapply to the children of a member who have a physical or mentaldisability.
(e) If a deceased member of the fire department leaves nosurviving spouse or children but leaves a dependent parent, and uponsatisfactory proof that the parent was wholly dependent upon thedeceased member, the local board shall authorize the monthlypayment to the parent from the 1937 fund. Each parent of a deceasedmember who was eligible for a pension under this subsection isentitled to receive jointly an amount equal to thirty percent (30%) ofthe salary of a fully paid first class firefighter in the unit at the timeof the payment of the pension.
(f) For purposes of this section, "dies in the line of duty" meansdeath that occurs as a direct result of personal injury or illness causedby incident, accident, or violence that results from any action that themember, in the member's capacity as a firefighter:
(1) is obligated or authorized by rule, regulation, condition ofemployment or service, or law to perform; or
(2) performs while on the scene of an emergency run (includingfalse alarms) or on the way to or from the scene.
The term includes a death presumed incurred in the line of dutyunder IC 5-10-13.
(g) If the local board finds upon the submission of satisfactoryproof that a child eighteen (18) years of age or older is mentally orphysically incapacitated, is not a ward of the state, and is notreceiving a benefit under subsection (c)(2), the child is entitled toreceive the same amount as is paid to the surviving spouse of adeceased firefighter, as long as the mental or physical incapacitycontinues. A sum paid for the benefit of a child or children shall bepaid to the remaining parent, if alive, as long as the child or childrenreside with and are supported by the parent. If the parent dies, thesum shall be paid to the lawful guardian of the child or children.
(h) The monthly pension payable to a survivor may not be reducedbelow the amount of the first full monthly pension received by thatperson.
(i) A benefit payable under this section shall be paid in not lessthan twelve (12) monthly installments.
(j) The unit of local government that employed the deceasedmember shall after December 31, 2003, offer to provide and pay forhealth insurance coverage for the member's surviving spouse and foreach natural child, stepchild, or adopted child of the member:
(1) until the child becomes eighteen (18) years of age; (2) until the child becomes twenty-three (23) years of age if thechild is enrolled in and regularly attending a secondary schoolor is a full-time student at an accredited college or university;or
(3) during the entire period of the child's physical or mentaldisability;
whichever period is longest. If health insurance coverage is offeredby the unit to active members, the health insurance provided to asurviving spouse and child under this subsection must be equal incoverage to that offered to active members. The offer to provide andpay for health insurance coverage shall remain open for as long asthere is a surviving spouse or as long as a natural child, stepchild, oradopted child of the member is eligible for the coverage undersubdivision (1), (2), or (3).
As added by P.L.118-2000, SEC.14. Amended by P.L.62-2002,SEC.2; P.L.185-2002, SEC.8; P.L.86-2003, SEC.5; P.L.99-2007,SEC.217.
IC 36-8-7-12.5
Determination whether disability in line of duty
Sec. 12.5. (a) If a local board determines that a fund member hasa temporary or a permanent disability, the local board shall also makea recommendation to the 1977 fund advisory committee concerningwhether the disability is:
(1) a disability in the line of duty (as described in section11(e)(1) of this chapter); or
(2) a disability not in the line of duty (a disability other than adisability described in section 11(e)(1) of this chapter).
The local board shall forward its recommendation to the 1977 fundadvisory committee.
(b) The 1977 fund advisory committee shall review the localboard's recommendation not later than forty-five (45) days afterreceiving the recommendation and shall then issue an initialdetermination of whether the disability is in the line of duty or not inthe line of duty. The 1977 fund advisory committee shall notify thelocal board, the safety board, and the fund member of its initialdetermination.
(c) The fund member, the safety board, or the local board mayobject in writing to the 1977 fund advisory committee's initialdetermination under subsection (b) not later than fifteen (15) daysafter the initial determination is issued. If a written objection is notfiled, the 1977 fund advisory committee's initial determinationbecomes final. If a timely written objection is filed, the 1977 fundadvisory committee shall issue a final determination after a hearing.The final determination must be issued not later than one hundredeighty (180) days after the date of receipt of the local board'srecommendation.
As added by P.L.118-2000, SEC.15.
IC 36-8-7-12.7 Reemployment after retirement
Sec. 12.7. (a) Not less than thirty (30) days after a member retiresfrom a fire department covered by this chapter, the member may:
(1) be rehired by the same unit that employed the member as afirefighter for a position other than that of a full-time, fully paidfirefighter; and
(2) continue to receive the member's pension benefit under thischapter.
(b) This section may be implemented unless the local boardreceives from the Internal Revenue Service a determination thatprohibits the implementation.
As added by P.L.130-2008, SEC.5.
IC 36-8-7-13
Lump sum death benefit
Sec. 13. (a) Benefits paid under this section are subject to section2.5 of this chapter.
(b) Upon the death of a disabled, retired, or discharged memberof the fire department who was receiving or entitled to receive apension at the time of the member's death, or upon the death of amember in active service at the time of the member's death, the localboard shall authorize and pay out of the 1937 fund at least twelvethousand dollars ($12,000) as death benefits.
(c) The death benefit described under this section shall be paid:
(1) to the surviving spouse;
(2) if there is no surviving spouse, to the surviving children; and
(3) if there is no surviving spouse, and if there are no survivingchildren, to the estate;
of the deceased member and is in addition to other benefits paid toa member or survivor under this chapter.
As added by Acts 1981, P.L.309, SEC.57. Amended by Acts 1981,P.L.182, SEC.7; P.L.200-1984, SEC.3; P.L.55-1989, SEC.56;P.L.169-1994, SEC.3; P.L.49-1998, SEC.4; P.L.28-2008, SEC.2.
IC 36-8-7-14
Annual statement of receipts and disbursements; payment of excessexpenditures by unit; appropriations
Sec. 14. (a) The local board shall meet annually and prepare anitemized estimate, in the form prescribed by the state board ofaccounts, of the amount of money that will be receipted into anddisbursed from the 1937 fund during the next fiscal year. Theestimated receipts consist of the items enumerated in section 8 of thischapter. The estimated disbursements must be divided into two (2)parts, designated as part 1 and part 2.
(b) Part 1 of the estimated disbursements consists of an estimateof the amount of money that will be needed by the local board duringthe next fiscal year to defray the expenses and obligations incurredand that will be incurred by the local board in making the paymentsprescribed by this chapter to retired members, to members who areeligible to and expect to retire during the next fiscal year, and to the
dependents of deceased members. Part 2 of the estimateddisbursements consists of an estimate of the amount of money thatwill be needed to pay death benefits and other expenditures that areauthorized or required by this chapter.
(c) At the time when the estimates are prepared and submitted, thelocal board shall also prepare and submit a certified statementshowing the following:
(1) The name, age, and date of retirement of each retiredmember and the monthly and yearly amount of the payment towhich the retired member is entitled.
(2) The name and age of each member who is eligible to andexpects to retire during the next fiscal year, the date on whichthe member expects to retire, and the monthly and yearlyamount of the payment that the member will be entitled toreceive.
(3) The name and the age of each dependent, the date on whichthe dependent became a dependent, the date on which thedependent will cease to be a dependent by reason of attainingthe age at which dependents cease to be dependents, and themonthly and yearly amount of the payment to which thedependent is entitled.
(4) The amount that would be required for the next fiscal yearto maintain level cost funding during the active fund members'employment on an actuarial basis.
(5) The amount that would be required for the next fiscal yearto amortize accrued liability for active members, retiredmembers, and dependents over a period determined by the localboard, but not to exceed forty (40) years.
(d) The total receipts shall be deducted from the totalexpenditures as listed in the itemized estimate. The amount of theexcess of the estimated expenditures over the estimated receipts shallbe paid by the unit in the same manner as other expenses of the unitare paid, and an appropriation shall be made annually for thatpurpose. The estimates submitted shall be prepared and filed in thesame manner and form and at the same time that estimates of otheroffices and departments of the unit are prepared and filed.
(e) The estimates shall be made a part of the annual budget of theunit. When revising the estimates, the executive, the fiscal officer,and other fiduciary officers may not reduce the items in part 1 of theestimated disbursements.
(f) The unit's fiscal body shall make the appropriations necessaryto pay that proportion of the budget of the 1937 fund that the unit isobligated to pay under subsection (d). In addition, the fiscal bodymay make appropriations for purposes of subsection (c)(4), (c)(5), orboth. All appropriations shall be made to the local board for theexclusive use of the 1937 fund, including the payments described insection 9.5 of this chapter. The amounts listed in part 1 of theestimated disbursements, if found to be correct and in conformitywith the data submitted in the certified statement, are a bindingobligation upon the unit. Notwithstanding any other law, neither the
county board of tax adjustment nor the department of localgovernment finance may reduce the appropriations made to pay theamount equal to estimated disbursements minus estimated receipts.
As added by Acts 1981, P.L.309, SEC.57. Amended by P.L.345-1985,SEC.1; P.L.90-2002, SEC.488; P.L.224-2007, SEC.124;P.L.146-2008, SEC.777; P.L.182-2009(ss), SEC.431.
IC 36-8-7-15
Insufficient funds for appropriations; loans; tax levy to repay loans
Sec. 15. If the appropriations for any of the purposescontemplated in section 14 of this chapter are exhausted before theend of the fiscal year for which the appropriations have been made,the unit's fiscal body shall make the necessary additionalappropriations according to IC 6-1.1-18-5. If the amount of money inthe general fund not otherwise appropriated is less than theadditional appropriations found to be necessary