CHAPTER 8. 1977 POLICE OFFICERS' AND FIREFIGHTERS' PENSION AND DISABILITY FUND
IC 36-8-8
Chapter 8. 1977 Police Officers' and Firefighters' Pension andDisability Fund
IC 36-8-8-1
Application of chapter
Sec. 1. This chapter applies to:
(1) full-time police officers hired or rehired after April 30,1977, in all municipalities, or who converted their benefitsunder IC 19-1-17.8-7 (repealed September 1, 1981);
(2) full-time fully paid firefighters hired or rehired after April30, 1977, or who converted their benefits under IC 19-1-36.5-7(repealed September 1, 1981);
(3) a police matron hired or rehired after April 30, 1977, andbefore July 1, 1996, who is a member of a police department ina second or third class city on March 31, 1996;
(4) a park ranger who:
(A) completed at least the number of weeks of training at theIndiana law enforcement academy or a comparable lawenforcement academy in another state that were required atthe time the park ranger attended the Indiana lawenforcement academy or the law enforcement academy inanother state;
(B) graduated from the Indiana law enforcement academy ora comparable law enforcement academy in another state; and
(C) is employed by the parks department of a city having apopulation of more than one hundred twenty thousand(120,000) but less than one hundred fifty thousand(150,000);
(5) a full-time fully paid firefighter who is covered by thischapter before the effective date of consolidation and becomesa member of the fire department of a consolidated city underIC 36-3-1-6.1, provided that the firefighter's service as amember of the fire department of a consolidated city isconsidered active service under this chapter;
(6) except as otherwise provided, a full-time fully paidfirefighter who is hired or rehired after the effective date of theconsolidation by a consolidated fire department establishedunder IC 36-3-1-6.1;
(7) a full-time police officer who is covered by this chapterbefore the effective date of consolidation and becomes amember of the consolidated law enforcement department as partof the consolidation under IC 36-3-1-5.1, provided that theofficer's service as a member of the consolidated lawenforcement department is considered active service under thischapter; and
(8) except as otherwise provided, a full-time police officer whois hired or rehired after the effective date of the consolidationby a consolidated law enforcement department establishedunder IC 36-3-1-5.1;except as provided by section 7 of this chapter.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.3-1990,SEC.132; P.L.236-1996, SEC.4; P.L.43-1997, SEC.6; P.L.22-1998,SEC.16; P.L.246-2001, SEC.16; P.L.227-2005, SEC.46.
IC 36-8-8-2
"Employer" defined
Sec. 2. As used in this chapter, "employer" means:
(1) a municipality that established a 1925 or 1953 fund or thatparticipates in the 1977 fund under section 3 or 18 of thischapter;
(2) a unit that established a 1937 fund or that participates in the1977 fund under section 3 or 18 of this chapter;
(3) a consolidated city that consolidated the fire departments ofunits that:
(A) established a 1937 fund; or
(B) participated in the 1977 fund;
before the units' consolidation into the fire department of aconsolidated city established by IC 36-3-1-6.1; or
(4) a consolidated city that establishes a consolidated lawenforcement department under IC 36-3-1-5.1.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.227-2005,SEC.47.
IC 36-8-8-2.1
"Local board" defined
Sec. 2.1. (a) As used in this chapter, "local board" means thefollowing:
(1) For a unit that established a 1925 fund for its police officers,the local board described in IC 36-8-6-2.
(2) For a unit that established a 1937 fund for its firefighters,the local board described in IC 36-8-7-3.
(3) For a consolidated city that established a 1953 fund for itspolice officers, the local board described in IC 36-8-7.5-2.
(4) For a unit, other than a consolidated city, that did notestablish a 1925 fund for its police officers or a 1937 fund forits firefighters, the local board described in subsection (b) or(c).
(b) If a unit did not establish a 1925 fund for its police officers, alocal board shall be composed in the same manner described inIC 36-8-6-2(b). However, if there is not a retired member of thedepartment, no one shall be appointed to that position until such timeas there is a retired member.
(c) If a unit did not establish a 1937 fund for its firefighters, alocal board shall be composed in the same manner described inIC 36-8-7-3(b). However, if there is not a retired member of thedepartment, no one shall be appointed to that position until such timeas there is a retired member.
As added by P.L.236-1996, SEC.5.
IC 36-8-8-2.5
Qualification of 1977 fund under Internal Revenue Code
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 governmentalplans; or
(2) to the extent not inconsistent with subdivision (1), has themeaning set forth in IC 6-3-1-11.
(b) The 1977 fund shall satisfy the qualification requirements inSection 401 of the Internal Revenue Code, as applicable to the 1977fund. In order to meet those requirements, the 1977 fund is subjectto the following provisions, notwithstanding any other provision ofthis chapter:
(1) The PERF board shall distribute the corpus and income ofthe 1977 fund to members and their beneficiaries in accordancewith this chapter.
(2) No part of the corpus or income of the 1977 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 1977 fund is terminated, or if all contributions to the1977 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 1977 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 1977 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 PERF 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, as
prohibited 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 trustee may not engage in a transaction prohibited bySection 503(b) of the Internal Revenue Code.
As added by P.L.55-1989, SEC.61.
IC 36-8-8-2.6
Administration of fund
Sec. 2.6. The 1977 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.43.
IC 36-8-8-3
Participation by units
Sec. 3. (a) If a town establishes a board of metropolitan policecommissioners, or if a town becomes a city, the municipality shallparticipate in the 1977 fund. However, if a police officer or formermarshal is a member of the public employees' retirement fund, hemay continue as a member of that fund instead of the 1977 fund.Notwithstanding the age requirements under section 7(a) of thischapter, a police officer or former marshal employed by amunicipality at the time the municipality enters the 1977 fund underthis section shall be a member of the 1977 fund unless the policeofficer or former marshal elects to continue as a member of thepublic employees' retirement fund. A person may become a memberof the 1977 fund under this subsection without meeting the agelimitation under section 7(a) of this chapter only if the personsatisfies:
(1) any aptitude, physical agility, or physical and mentalstandards established by a local board under IC 36-8-3.2; and
(2) the minimum standards that are:
(A) adopted by the PERF board under section 19 of thischapter; and
(B) in effect on the date the person becomes a member of the1977 fund.
Credit for prior service of a person who becomes a member of the1977 fund under this subsection shall be determined under section 18or 18.1 of this chapter. No service credit beyond that allowed undersection 18 or 18.1 of this chapter may be recognized under the 1977fund.
(b) If a unit did not establish a 1937 fund for its firefighters, theunit may participate in the public employees' retirement fund or itmay participate in the 1977 fund. If a unit established a 1937 fund for
its firefighters, the unit is and shall remain a participant in the 1977fund.
(c) A unit that:
(1) has not established a pension fund for its firefighters; or
(2) is participating in the public employees' retirement fundunder subsection (b);
may participate in the 1977 fund upon approval by the fiscal body,notwithstanding IC 5-10.3-6-8. A unit that participates in the 1977fund under this subsection must comply with section 21 of thischapter. However, if a firefighter is a member of the publicemployees' retirement fund, the firefighter may continue as a memberof that fund instead of the 1977 fund.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.313-1989,SEC.1; P.L.213-1995, SEC.6; P.L.236-1996, SEC.6; P.L.101-1998,SEC.1; P.L.195-1999, SEC.32.
IC 36-8-8-4
Creation of fund; management by PERF board; fund advisorycommittee; membership; term
Sec. 4. (a) There is established a police officers' and firefighters'pension and disability fund to be known as the 1977 fund. The 1977fund consists of fund member and employer contributions, plus theearnings on them, to be used to make benefit payments to fundmembers and their survivors in the amounts and under the conditionsspecified in this chapter.
(b) The board of trustees of the public employees' retirement fund(referred to in this chapter as the "PERF board") shall administer the1977 fund, which may be commingled with the public employees'retirement fund for investment purposes. All actuarial data shall becomputed on the total membership of the fund, and the cost ofparticipation is the same for all employers in the fund. The fundmember and employer contributions shall be recorded separately foreach employer.
(c) The 1977 fund advisory committee, referred to as thecommittee, is established. The PERF board shall consult with thecommittee on matters pertaining to the administration of this chapterand IC 5-10.3-11. The committee shall consist of the followingmembers appointed by the governor every two (2) years for a term oftwo (2) years:
(1) Two (2) firefighters:
(A) each of whom must be an active or retired member of the1937 fund or the 1977 fund; and
(B) neither of whom may be in an upper level policymakingposition.
(2) Two (2) police officers:
(A) each of whom must be an active or retired member of the1925 fund, the 1953 fund, or the 1977 fund; and
(B) neither of whom may be in an upper level policymakingposition.
(3) Two (2) members, each of whom must be an executive of an
employer.
(4) Two (2) members, each of whom must be a member of thelegislative body of an employer.
The term of each member begins on July 1 following appointmentand continues until his successor is qualified. A member of thecommittee who no longer holds the position that qualified him forappointment under subdivision (1), (2), (3), or (4) forfeits hismembership on the committee. The governor shall appoint a personto fill a vacancy on the committee for the remainder of the unexpiredterm.
(d) Each member of the committee who is not a state employee isentitled to reimbursement for expenses actually incurred inconnection with the member's duties. Such a member is also entitledto reimbursement for traveling expenses and other expenses actuallyincurred in connection with the member's duties, as approved by thePERF board.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.201-1984,SEC.1; P.L.342-1985, SEC.5; P.L.119-2000, SEC.8.
IC 36-8-8-5
PERF board; powers and duties; appeals; confidentiality of fundrecords
Sec. 5. (a) The PERF board shall:
(1) determine eligibility for and make payments of benefits,except as provided in section 12 of this chapter;
(2) in accordance with the powers and duties granted it inIC 5-10.3-3-7, IC 5-10.3-3-8, and IC 5-10.3-5-3 throughIC 5-10.3-5-6, administer the 1977 fund;
(3) provide by rule for the implementation of this chapter; and
(4) authorize deposits.
(b) A determination by the PERF board may be appealed underthe procedures in IC 4-21.5.
(c) The powers and duties of the director and the actuary of thePERF board, the attorney general, and the auditor of state, withrespect to the 1977 fund, are those specified in IC 5-10.3-3 andIC 5-10.3-4.
(d) The PERF board may hire additional personnel, includinghearing officers, to assist it in the implementation of this chapter.
(e) The 1977 fund records of individual members and membershipinformation are confidential, except for the name and years of serviceof a 1977 fund member.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.5-1988,SEC.219; P.L.5-1990, SEC.21; P.L.94-2004, SEC.8; P.L.99-2010,SEC.11.
IC 36-8-8-6
Employer contributions
Sec. 6. (a) Each employer shall annually on March 31, June 30,September 30, and December 31, for the calendar quarters ending onthose dates, pay into the 1977 fund an amount determined by the
PERF board:
(1) for administration expenses; and
(2) sufficient to maintain level cost funding during the period ofemployment on an actuarial basis for members hired after April30, 1977.
(b) If an employer fails to make the payments required bysubsection (a) or fails to send the fund members' contributionsrequired by section 8(a) of this chapter, the amount payable, onrequest of the PERF board, may be withheld by the auditor of statefrom money payable to the employer and transferred to the fund. Inthe alternative, the amount payable may be recovered in the circuitor superior court of the county in which the employer is located, inan action by the state on the relation of the PERF board, prosecutedby the attorney general.
As added by Acts 1981, P.L.309, SEC.59. Amended by Acts 1982,P.L.33, SEC.39.
IC 36-8-8-7
Membership in fund
Sec. 7. (a) Except as provided in subsections (d), (e), (f), (g), (h),(k), (l), and (m):
(1) a police officer; or
(2) a firefighter;
who is less than thirty-six (36) years of age and who passes thebaseline statewide physical and mental examinations required undersection 19 of this chapter shall be a member of the 1977 fund and isnot a member of the 1925 fund, the 1937 fund, or the 1953 fund.
(b) A police officer or firefighter with service before May 1, 1977,who is hired or rehired after April 30, 1977, may receive credit underthis chapter for service as a police officer or firefighter prior to entryinto the 1977 fund if the employer who rehires the police officer orfirefighter chooses to contribute to the 1977 fund the amountnecessary to amortize the police officer's or firefighter's prior serviceliability over a period of not more than forty (40) years, the amountand the period to be determined by the PERF board. If the employerchooses to make the contributions, the police officer or firefighter isentitled to receive credit for the police officer's or firefighter's prioryears of service without making contributions to the 1977 fund forthat prior service. In no event may a police officer or firefighterreceive credit for prior years of service if the police officer orfirefighter is receiving a benefit or is entitled to receive a benefit inthe future from any other public pension plan with respect to theprior years of service.
(c) Except as provided in section 18 of this chapter, a policeofficer or firefighter is entitled to credit for all years of service afterApril 30, 1977, with the police or fire department of an employercovered by this chapter.
(d) A police officer or firefighter with twenty (20) years of servicedoes not become a member of the 1977 fund and is not covered bythis chapter, if the police officer or firefighter: (1) was hired before May 1, 1977;
(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7(both of which were repealed September 1, 1981); and
(3) is rehired after April 30, 1977, by the same employer.
(e) A police officer or firefighter does not become a member ofthe 1977 fund and is not covered by this chapter if the police officeror firefighter:
(1) was hired before May 1, 1977;
(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7(both of which were repealed September 1, 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 1925,1937, or 1953 fund.
(f) A police officer or firefighter does not become a member ofthe 1977 fund and is not covered by this chapter if the police officeror firefighter:
(1) was hired by the police or fire department of a unit beforeMay 1, 1977;
(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7(both of which were repealed September 1, 1981);
(3) is rehired by the police or fire department of another unitafter December 31, 1981; and
(4) is made, by the fiscal body of the other unit after December31, 1981, a member of a 1925, 1937, or 1953 fund of the otherunit.
If the police officer or firefighter is made a member of a 1925, 1937,or 1953 fund, the police officer or firefighter is entitled to receivecredit for all the police officer's or firefighter's years of service,including years before January 1, 1982.
(g) As used in this subsection, "emergency medical services" and"emergency medical technician" have the meanings set forth inIC 16-18-2-110 and IC 16-18-2-112. A firefighter who:
(1) is employed by a unit that is participating in the 1977 fund;
(2) was employed as an emergency medical technician by apolitical subdivision wholly or partially within the department'sjurisdiction;
(3) was a member of the public employees' retirement fundduring the employment described in subdivision (2); and
(4) ceased employment with the political subdivision and washired by the unit's fire department due to the reorganization ofemergency medical services within the department'sjurisdiction;
shall participate in the 1977 fund. A firefighter who participates inthe 1977 fund under this subsection is subject to sections 18 and 21of this chapter.
(h) A police officer or firefighter does not become a member ofthe 1977 fund and is not covered by this chapter if the individual wasappointed as:
(1) a fire chief under a waiver under IC 36-8-4-6(c); or (2) a police chief under a waiver under IC 36-8-4-6.5(c);
unless the executive of the unit requests that the 1977 fund accept theindividual in the 1977 fund and the individual previously was amember of the 1977 fund.
(i) A police matron hired or rehired after April 30, 1977, andbefore July 1, 1996, who is a member of a police department in asecond or third class city on March 31, 1996, is a member of the1977 fund.
(j) A park ranger who:
(1) completed at least the number of weeks of training at theIndiana law enforcement academy or a comparable lawenforcement academy in another state that were required at thetime the park ranger attended the Indiana law enforcementacademy or the law enforcement academy in another state;
(2) graduated from the Indiana law enforcement academy or acomparable law enforcement academy in another state; and
(3) is employed by the parks department of a city having apopulation of more than one hundred twenty thousand(120,000) but less than one hundred fifty thousand (150,000);
is a member of the fund.
(k) Notwithstanding any other provision of this chapter, a policeofficer or firefighter:
(1) who is a member of the 1977 fund before a consolidationunder IC 36-3-1-5.1 or IC 36-3-1-6.1;
(2) whose employer is consolidated into the consolidated lawenforcement department or the fire department of aconsolidated city under IC 36-3-1-5.1 or IC 36-3-1-6.1; and
(3) who, after the consolidation, becomes an employee of theconsolidated law enforcement department or the consolidatedfire department under IC 36-3-1-5.1 or IC 36-3-1-6.1;
is a member of the 1977 fund without meeting the requirementsunder sections 19 and 21 of this chapter.
(l) Notwithstanding any other provision of this chapter, if:
(1) before a consolidation under IC 8-22-3-11.6, a police officeror firefighter provides law enforcement services or fireprotection services for an entity in a consolidated city;
(2) the provision of those services is consolidated into the lawenforcement department or fire department of a consolidatedcity; and
(3) after the consolidation, the police officer or firefighterbecomes an employee of the consolidated law enforcementdepartment or the consolidated fire department underIC 8-22-3-11.6;
the police officer or firefighter is a member of the 1977 fund withoutmeeting the requirements under sections 19 and 21 of this chapter.
(m) A police officer or firefighter who is a member of the 1977fund under subsection (k) or (l) may not be:
(1) retired for purposes of section 10 of this chapter; or
(2) disabled for purposes of section 12 of this chapter;
solely because of a change in employer under the consolidation.As added by Acts 1981, P.L.309, SEC.59. Amended by Acts 1981,P.L.182, SEC.9; Acts 1982, P.L.33, SEC.40; P.L.365-1983, SEC.1;P.L.202-1984, SEC.1; P.L.38-1986, SEC.6; P.L.55-1987, SEC.5;P.L.3-1990, SEC.133; P.L.4-1990, SEC.18; P.L.4-1992, SEC.44;P.L.2-1993, SEC.204; P.L.213-1995, SEC.7; P.L.236-1996, SEC.7;P.L.43-1997, SEC.7; P.L.22-1998, SEC.17; P.L.246-2001, SEC.17;P.L.227-2005, SEC.48; P.L.1-2006, SEC.575.
IC 36-8-8-7.2
Fire chief or police chief transfer of service credit to PERF
Sec. 7.2. (a) This section applies to an individual:
(1) who becomes a member of the 1977 fund under section 7(h)of this chapter;
(2) whose appointment as a fire chief or police chief ends afterJune 30, 2007; and
(3) who is not eligible to receive a benefit from the 1977 fundat the end of the individual's appointment as a fire chief orpolice chief.
(b) A fund member described in subsection (a) may elect:
(1) to receive the fund member's contributions to the 1977 fundunder section 8 of this chapter; or
(2) to transfer the fund member's service credit earned as a firechief or police chief to PERF under subsection (c).
(c) If a fund member makes the election described in subsection(b)(2), the PERF board shall:
(1) grant to the fund member service credit in PERF for allservice earned as a fire chief or police chief in the 1977 fund;and
(2) transfer from the 1977 fund to PERF:
(A) the fund member's contributions made during the fundmember's appointment as a fire chief or police chief to the1977 fund; plus
(B) the present value of the unreduced benefit that would bepayable to the transferring fund member upon retirementunder section 10 of this chapter.
(d) The PERF board shall deposit the amounts transferred toPERF under subsection (c) as follows:
(1) The fund member's contributions to the 1977 fund shall becredited to the fund member's PERF annuity savings account.
(2) The present value of the unreduced benefit that would bepayable to the transferring fund member upon retirement undersection 10 of this chapter shall be credited to PERF's retirementallowance account.
(e) For a fund member who makes the election described insubsection (b)(2), all credit for service as a fire chief or police chiefin the 1977 fund is waived.
As added by P.L.180-2007, SEC.9.
IC 36-8-8-8
Employee contributions; lump sum withdrawal on termination of
employment
Sec. 8. (a) Each fund member shall contribute during the periodof the fund member's employment or for thirty-two (32) years,whichever is shorter, an amount equal to six percent (6%) of thesalary of a first class patrolman or firefighter. However, the employermay pay all or a part of the contribution for the member. The amountof the contribution, other than contributions paid on behalf of amember, shall be deducted each pay period from each fund member'ssalary by the disbursing officer of the employer. The employer shallsend to the PERF board each year on March 31, June 30, September30, and December 31, for the calendar quarters ending on thosedates, a certified list of fund members and a warrant issued by theemployer for the total amount deducted for fund members'contributions.
(b) Except as provided in section 7.2 of this chapter, if a fundmember ends the fund member's employment other than by death ordisability before the fund member completes twenty (20) years ofactive service, the PERF board shall return to the fund member in alump sum the fund member's contributions plus interest asdetermined by the PERF board. If the fund member returns toservice, the fund member is entitled to credit for the years of servicefor which the fund member's contributions were refunded if the fundmember repays the amount refunded to the fund member in either alump sum or a series of payments determined by the PERF board.
As added by Acts 1981, P.L.309, SEC.59. Amended by Acts 1981,P.L.182, SEC.10; P.L.312-1989, SEC.4; P.L.180-2007, SEC.10.
IC 36-8-8-8.3
Purchase of military service credit
Sec. 8.3. (a) This section applies to a fund member who, afterJune 30, 2009, completes service for which the 1977 fund givescredit.
(b) A fund member may purchase not more than two (2) years ofservice credit for the fund member's service on active duty in thearmed services if the fund member meets the following conditions:
(1) The fund member has at least one (1) year of creditedservice in the fund.
(2) The fund member serves on active duty in the armedservices of the United States for at least six (6) months.
(3) The fund member receives an honorable discharge from thearmed services.
(4) Before the fund member retires, the fund member makescontributions to the fund as follows:
(A) Contributions that are equal to the product of thefollowing:
(i) The salary of a first class patrolman or firefighter at thetime the fund member actually makes a contribution forthe service credit.
(ii) A rate, determined by the actuary of the 1977 fund,that is based on the age of the fund member at the time the
fund member actually makes a contribution for servicecredit and that is computed to result in a contributionamount that approximates the actuarial present value ofthe retirement benefit attributable to the service creditpurchased.
(iii) The number of years of service credit the fundmember intends to purchase.
(B) Contributions for any accrued interest, at a ratedetermined by the actuary of the 1977 fund, for the periodfrom the fund member's initial membership in the 1977 fundto the date payment is made by the fund member.
(c) A fund member must have at least twenty (20) years of servicebefore a fund member may receive a benefit based on a service creditpurchased under this section. A fund member's years of service maynot exceed thirty-two (32) years with the inclusion of the servicecredit purchased under this section.
(d) A fund member may not receive service credit under thissection:
(1) for service credit received under IC 36-8-5-7; or
(2) if the military service for which the fund member requestscredit also qualifies the fund member for a benefit in a militaryor another governmental retirement system.
(e) A fund member who:
(1) terminates service before satisfying the eligibilityrequirements necessary to receive a retirement benefit paymentfrom the 1977 fund; or
(2) receives a retirement benefit for the same service fromanother retirement system, other than under the federal SocialSecurity Act;
may withdraw the fund member's contributions made under thissection plus accumulated interest after submitting to the fund aproperly completed application for a refund.
(f) The following apply to the purchase of service credit underthis section:
(1) The PERF board may allow a fund member to makeperiodic payments of the contributions required for the purchaseof the service credit. The PERF board shall determine the lengthof the period during which the payments must be made.
(2) The PERF board may deny an application for the purchaseof service credit if the purchase would exceed the limitationsunder Section 415 of the Internal Revenue Code.
(3) A fund member may not claim the service credit forpurposes of determining eligibility or computing benefits unlessthe fund member has made all payments required for thepurchase of the service credit.
(g) To the extent permitted by the Internal Revenue Code andapplicable regulations, the 1977 fund may accept, on behalf of a fundmember who is purchasing service credit under this section, arollover of a distribution from any of the following:
(1) A qualified plan described in Section 401(a) or Section
403(a) of the Internal Revenue Code.
(2) An annuity contract or account described in Section 403(b)of the Internal Revenue Code.
(3) An eligible plan that is maintained by a state, a politicalsubdivision of a state, or an agency or instrumentality of a stateor a political subdivision of a state under Section 457(b) of theInternal Revenue Code.
(4) An individual retirement account or annuity described inSection 408(a) or 408(b) of the Internal Revenue Code.
(h) To the extent permitted by the Internal Revenue Code and theapplicable regulations, the 1977 fund may accept, on behalf of a fundmember who is purchasing service credit under this section, a trusteeto trustee transfer from any of the following:
(1) An annuity contract or account described in Section 403(b)of the Internal Revenue Code.
(2) An eligible deferred compensation plan under Section457(b) of the Internal Revenue Code.
As added by P.L.19-2009, SEC.1.
IC 36-8-8-8.5
Purchase of service credit in certain Indiana public retirementfunds
Sec. 8.5. (a) This section applies to a fund member who, afterJune 30, 2010, completes service for which the 1977 fund givescredit.
(b) As used in this section, "public retirement fund" refers to anyof the following, either singly or collectively:
(1) The public employees' retirement fund (IC 5-10.3).
(2) The Indiana state teachers' retirement fund (IC 5-10.4).
(3) The state excise police, gaming agent, gaming controlofficer, and conservation enforcement officers' retirement fund(IC 5-10-5.5).
(4) The state police pension trust (IC 10-12).
(5) A sheriff's pension trust (IC 36-8-10-12).
(c) Subject to this section, a fund member may purchase servicecredit for the fund member's prior service in a position covered by apublic retirement fund.
(d) To purchase the service credit described in subsection (c), afund member must meet the following requirements:
(1) The fund member has at least one (1) year of creditableservice in the 1977 fund.
(2) The fund member has not attained vested status in and is notan active member in the public retirement fund from which thefund member is purchasing service credit.
(3) Before the fund member retires, the fund member makescontributions to the 1977 fund as follows:
(A) Contributions that are equal to the product of thefollowing:
(i) The salary of a first class patrolman or firefighter at thetime the fund member actually makes a contribution for
the service credit.
(ii) A rate, determined by the actuary for the 1977 fund,that is based on the age of the fund member at the time thefund member actually makes a contribution for the servicecredit and that is computed to result in a contributionamount that approximates the actuarial present value ofthe retirement benefit attributable to the service creditpurchased.
(iii) The number of years of service credit the fundmember intends to purchase.
(B) Contributions for any accrued interest, at a ratedetermined by the actuary for the 1977 fund, for the periodfrom the fund member's initial membership in the 1977 fundto the date payment is made by the fund member.
(e) At the request of the fund member purchasing service creditunder this section, the amount a fund member is required tocontribute under subsection (d)(3) may be reduced by a trustee totrustee transfer from the public retirement fund in which the fundmember has an account that contains amounts attributable to membercontributions (plus any credited earnings) to the 1977 fund. The fundmember may direct the transfer of an amount only to the extentnecessary to fund the service purchase under subsection (d)(3). Thefund member shall complete any forms required by the publicretirement fund from which the fund member is requesting a transferor the 1977 fund before the transfer is made.
(f) A fund member must have at least twenty (20) years of servicein the 1977 fund before a fund member may receive a retirementbenefit based on service credit purchased under this section. A fundmember's years of service may not exceed thirty-two (32) years withthe inclusion of the service credit purchased under this section.
(g) A fund member who:
(1) terminates employment before satisfying the eligibilityrequirements necessary to receive a retirement benefit paymentfrom the 1977 fund; or
(2) receives a retirement benefit for the same service fromanother tax supported governmental retirement plan other thanthe federal Social Security Act;
may withdraw the fund member's contributions made under thissection plus accumulated interest after submitting a properlycompleted application for a refund to the 1977 fund.
(h) The following apply to the purchase of service credit underthis section:
(1) The PERF board may allow a fund member to makeperiodic payments of the contributions required for the purchaseof the service credit. The PERF board shall determine the lengthof the period during which the payments may be made.
(2) The PERF board may deny an application for the purchaseof service credit if the purchase would exceed the limitationsunder Section 415 of the Internal Revenue Code.
(3) A fund member may not claim the service credit for
purposes of determining eligibility or computing benefits unlessthe fund member has made all payments required for thepurchase of the service credit.
(i) To the extent permitted by the Internal Revenue Code andapplicable regulations, the 1977 fund may accept, on behalf of a fundmember who is purchasing service credit under this section, arollover of a distribution from any of the following:
(1) A qualified plan described in Section 401(a) or 403(a) of theInternal Revenue Code.
(2) An annuity contract or account described in Section 403(b)of the Internal Revenue Code.
(3) An eligible plan that is maintained by a state, a politicalsubdivision of a state, or an agency or instrumentality of a stateor a political subdivision of a state under Section 457(b) of theInternal Revenue Code.
(4) An individual retirement account or annuity described inSection 408(a) or 408(b) of the Internal Revenue Code.
(j) To the extent permitted by the Internal Revenue Code andapplicable regulations, the 1977 fund may accept, on behalf of a fundmember who is purchasing service credit under this section, a trusteeto trustee transfer from any of the following:
(1) An annuity contract or account described in Section 403(b)of the Internal Revenue Code.
(2) An eligible deferred compensation plan under Section457(b) of the Internal Revenue Code.
(k) The fund member's employer may pay all or a part of the fundmember's contributions required for the purchase of service creditunder this section. In that event, the actuary shall determine theamortization, and subsections (g), (h)(1), (h)(3), and (i) do not apply.
As added by P.L.70-2010, SEC.1.
IC 36-8-8-8.8
Purchase of out-of-state service credit
Sec. 8.8. (a) This section applies to a fund member who, afterJune 30, 2010, completes service for which the 1977 fund givescredit.
(b) As used in this section, "out-of-state service" means service inanother state in a comparable position for which the fund memberwould receive service credit in the 1977 fund if the service had beenperformed in Indiana.
(c) Subject to subsections (d) through (g), a fund member maypurchase out-of-state service credit if the fund member meets thefollowing requirements:
(1) The fund member has at least one (1) year of creditedservice in the 1977 fund.
(2) Before the fund member retires, the fund member makescontributions to the 1977 fund as follows:
(A) Contributions that are equal to the product of thefollowing:
(i) The salary of a first class patrolman or firefighter at the
time the fund member makes a contribution for the servicecredit.
(ii) A rate, determined by the actuary for the 1977 fund,that is based on the age of the fund member at the time thefund member makes a contribution for the service creditand that is computed to result in a contribution amountthat approximates the actuarial present value of theretirement benefit attributable to the service creditpurchased.
(iii) The number of years of out-of-state service credit thefund member intends to purchase.
(B) Contributions for any accrued interest, at a ratedetermined by the actuary for the 1977 fund, for the periodfrom the fund member's initial membership in the 1977 fundto the date payment is made by the fund member.
(3) The fund member has received verification from the 1977fund that the out-of-state service is, as of the date payment ismade by the fund member, valid.
(d) A fund member must have at least twenty (20) years of servicebefore the fund member may receive a benefit based on service creditpurchased under this section. A fund member's years of service maynot exceed thirty-two (32) years with the inclusion of service creditpurchased under this section.
(e) A fund member may not receive service credit under thissection if the service for which the fund member requests credit alsoqualifies the fund member for a benefit in another governmentalretirement system.
(f) A fund member who:
(1) terminates service before satisfying the eligibilityrequirements necessary to receive a retirement benefit paymentfrom the 1977 fund; or
(2) receives a retirement benefit for the same service fromanother retirement system, other than under the federal SocialSecurity Act;
may withdraw the fund member's contributions made under thissection plus accumulated interest after submitting to the 1977 funda properly completed application for a refund.
(g) The following apply to the purchase of service credit underthis section:
(1) The PERF board may allow a fund member to makeperiodic payments of the contributions required for the purchaseof the service credit. The PERF board shall determine the lengthof the period during which the payments must be made.
(2) The PERF board may deny an application for the purchaseof service credit if the purchase would exceed the limitationsunder Section 415 of the Internal Revenue Code.
(3) The fund member may not claim the service credit forpurposes of determining eligibility or computing benefits unlessthe fund member has made all payments required for thepurchase of the service credit. (h) To the extent permitted by the Internal Revenue Code and theapplicable regulations, the 1977 fund may accept, on behalf of a fundmember who is purchasing service credit under this section, arollover of a distribution from any of the following:
(1) A qualified plan described in Section 401(a) or Section403(a) of the Internal Revenue Code.
(2) An annuity contract or account described in Section 403(b)of the Internal Revenue Code.
(3) An eligible plan that is maintained by a state, a politicalsubdivision of a state, or an agency or instrumentality of a stateor a political subdivision of a state under Section 457(b) of theInternal Revenue Code.
(4) An individual retirement account or annuity described inSection 408(a) or 408(b) of the Internal Revenue Code.
(i) To the extent permitted by the Internal Revenue Code and theapplicable regulations, the 1977 fund may accept, on behalf of a fundmember who is purchasing service credit under this section, a trusteeto trustee transfer from any of the following:
(1) An annuity contract or account described in Section 403(b)of the Internal Revenue Code.
(2) An eligible deferred compensation plan under Section457(b) of the Internal Revenue Code.
As added by P.L.88-2010, SEC.1.
IC 36-8-8-9
Conversion from prior fund
Sec. 9. (a) This section applies to all police officers andfirefighters who converted their benefits under IC 19-1-17.8-7 orIC 19-1-36.5-7 (both of which were repealed September 1, 1981).
(b) A police officer or firefighter who converted his benefits froma 1925, 1937, or 1953 fund to the benefits and conditions of thischapter is not entitled to receive any benefits from the original fund.However, he is entitled to credit for all years of service for which hewould have received credit before his conversion in that originalfund.
(c) A police officer or firefighter who:
(1) converted his benefits from a 1925, 1937, or 1953 fund;
(2) retired or became disabled on or before June 30, 1998; and
(3) is entitled to receive benefits provided under this chapterbased on the eligibility requirements of this chapter;
shall be treated as a member of this fund for purposes of paying hisbenefits from the 1977 fund effective for benefits paid on or afterOctober 1, 1998. Prior to October 1, 1998, he remains a member ofthe original fund entitled to receive only the benefits provided underthis chapter based on the eligibility requirements of this chapter.
(d) A police officer or firefighter who:
(1) converted his benefits from a 1925, 1937 or 1953 fund;
(2) who did not retire or become disabled on or before June 30,1998; and
(3) who is entitled to receive benefits provided under this
chapter based on the eligibility requirements of this chapter;
remains a member of that original fund but is entitled to receive onlythe benefits provided under this chapter and based on the eligibilityrequirements of this chapter.
(e) A police officer or firefighter who converted shall contributesix percent (6%) of the salary of a first class patrolman or firefighterto the 1925, 1937, or 1953 fund. This amount shall be deducted fromhis salary each pay period by the disbursing officer of the employer.Contributions under this subsection may not be refunded.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.3-1990,SEC.134; P.L.22-1998, SEC.18.
IC 36-8-8-10
Eligibility for retirement; initiation of benefits; election to receiveactuarially reduced benefits
Sec. 10. (a) A fund member is eligible for retirement after he hascompleted twenty (20) years of active service.
(b) Unless the member is receiving benefits under subsection (c),unreduced benefits to a retired fund member begin the date:
(1) the fund member becomes fifty-two (52) years of age; or
(2) on which the fund member retires;
whichever is later. Benefit payments to a retired fund member underthis subsection begin on the first day of the month on or after the datehe reaches fifty-two (52) years of age or on which he retires,whichever is later.
(c) A retired member may elect to receive actuarially reducedbenefits that begin the date:
(1) the fund member becomes fifty (50) years of age; or
(2) on which the fund member retires;
whichever is later. Benefit payments to a retired fund member underthis subsection begin on the first day of the month on or after the daythe member reaches fifty (50) years of age or on which the memberretires, whichever is later.
(d) If a fund member:
(1) becomes fifty-two (52) years of age in the case of unreducedbenefits or fifty (50) years of age in the case of reducedbenefits; or
(2) retires on a date other than on the first day of the month;
the amount due the fund member for the initial partial monthlybenefit is payable together with the regular monthly benefit on thefirst of the month following the date the fund member becomesfifty-two (52) or fifty (50) years of age, respectively, or retires,whichever is later.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.232-1997,SEC.1; P.L.22-1998, SEC.19.
IC 36-8-8-11
Computation of retirement benefits; actuarially reduced benefits
Sec. 11. (a) Benefits paid under this section are subject to section2.5 of this chapter. (b) Except as provided in section 24 of this chapter, each fundmember who qualifies for a retirement benefit payment under section10(b) of this chapter is entitled to receive a monthly benefit equal tofifty percent (50%) of the monthly salary of a first class patrolmanor firefighter in the year the member ended his active service plus:
(1) for a member who retires before January 1, 1986, twopercent (2%) of that salary for each full year of active service;or
(2) for a member who retires after December 31, 1985, onepercent (1%) of that salary for each six (6) months of activeservice;
over twenty (20) years, to a maximum of twelve (12) years.
(c) Each fund member who qualifies for a retirement benefitpayment under section 10(c) of this chapter is entitled to receive amonthly benefit equal to fifty percent (50%) of the monthly salary ofa first class patrolman or firefighter in the year the member ended themember's active service plus one percent (1%) of that salary for eachsix (6) months of active service over twenty (20) years, to amaximum of twelve (12) years, all actuarially reduced for eachmonth (if any) of benefit payments prior to fifty-two (52) years ofage, by a factor established by the fund's actuary from time to time.
As added by Acts 1981, P.L.309, SEC.59. Amended by P.L.342-1985,SEC.6; P.L.55-1989, SEC.62; P.L.22-1998, SEC.20; P.L.99-2010,SEC.12.
IC 36-8-8-11.5
Reemployment after retirement
Sec. 11.5. (a) Not less than thirty (30) days after a fund memberretires from a position covered by this chapter, the fund membermay:
(1) be rehired by the same unit that employed the fund memberin a position covered by this chapter for a position not coveredby this chapter; and
(2) continue to receive the fund member's retirement benefitunder this chapter.
(b) This section may be implemented unless the PERF boardreceives from the Internal Revenue Service a determination thatprohibits the implementation.
As added by P.L.130-2008, SEC.7.
IC 36-8-8-12
Benefits for members with covered impairments; retirementbenefits for members who have a disability and are less than 52years old
Sec. 12. (a) Benefits paid under this section are subject to sections2.5 and 2.6 of this chapter.
(b) If an active fund member has a covered impairment, asdetermined under sections 12.3 through 13.1 of this chapter, themember is entitled to receive the benefit prescribed by section 13.3or 13.5 of this chapter. A member who has had a covered impairment
and returns to active duty with the department shall not be treated asa new applicant seeking to become a member of the 1977 fund.
(c) If a retired fund member who has not yet reached the member'sfifty-second birthday is found by the PERF board to be permanentlyor temporarily unable to perform all suitable work for which themember is or may be capable of becoming qualified, the member isentitled to receive during the disability the retirement benefitpayments payable at fifty-two (52) years of age. During a reasonableperiod in which a fund member with a disability is becomingqualified for suitable work, the member may continue to receivedisability benefit payments. However, benefits payable for disabilityunder this subsection are reduced by amounts for which the fundmember is eligible from:
(1) a plan or policy of insurance providing benefits for loss oftime because of disability;
(2) a plan, fund, or other arrangement to which the fundmember's employer has contributed or for which the fundmember's employer has made payroll deductions, including agroup life policy providing installment payments for disability,a group annuity contract, or a pension or retirement annuityplan other than the fund established by this chapter;
(3) the federal Social Security Act (42 U.S.C. 401 et seq.), theRailroad Retirement Act (45 U.S.C. 231 et seq.), the UnitedStates Department of Veterans Affairs, or another federal, state,local, or other governmental agency;
(4) worker's compensation payable under IC 22-3; and
(5) a salary or wage, including overtime and bonus pay andextra or additional remuneration of any kind, the fund memberreceives or is entitled to receive from the member's employer.
For the purposes of this subsection, a retired fund member isconsidered eligible for benefits from subdivisions (1) through (5)whether or not the member has made application for the benefits.
(d) Notwithstanding any other law, a plan, policy of insurance,fund, or other arrangement:
(1) delivered, issued for delivery, amended, or renewed afterApril 9, 1979; and
(2) described in subsection (c)(1) or (c)(2);
may not provide for a reduction or alteration of benefits as a resultof benefits for which a fund member may be eligible from the 1977fund under subsection (c).
(e) Time spent receiving disability benefits, not to exceed twenty(20) years, is considered active service for the purpose ofdetermining retirement benefits. A fund member's retirement benefitshall be based on: