2025 Legislative Summary

The 2025 Indiana General Assembly approved one INPRS-related legislative change with specific member applicability.  Below is a summary of the legislation.  You may e-mail inquiries to questions@inprs.in.gov or call (844) GO-INPRS for more information. Legislation is effective on July 1, 2025, unless otherwise noted.

HEA 1221 — 13^th Checks (PERF, TRF, and EG&C)

PERF, TRF, and EG&C members (or survivors or beneficiaries of members) who were retired or disabled on or before Dec. 1, 2024, and are entitled to receive a monthly benefit on July 1, 2025, are entitled to receive a 13th check no later than Oct. 1, 2025 in the following amounts, based on the member’s creditable service:

• At least 5 years, but less than 10 years: $143
• At least 10 years, but less than 20 years: $261
• At least 20 years, but less than 30 years: $356
• At least 30 years: $428

Partial years of service are not permitted to be used in determining the amount of the 13th check. If two or more survivors or beneficiaries are entitled to a 13th check amount, the amount is allocated using the same percentages as those used for the monthly benefit.

Surcharge to actuarially pre-fund 13th checks and cost-of-living adjustments (COLAs)

In 2024, HEA 1004 required INPRS to set a surcharge to actuarially fund 13th checks and 1% annual cost-of-living adjustments (COLAs) depending on the individual’s retirement date.

• For PERF, TRF ‘96, and EG&C members who retire before July 1, 2025, INPRS was directed to set an actuarial surcharge necessary to grant indexed 13th checks.
• For PERF, TRF ‘96, and EG&C members who retire on or after July 1, 2025, INPRS was directed to set an actuarial surcharge necessary to grant annual 1% COLAs.
• In the 2025 legislative session, HEA 1221 modified the effective date for purposes of INPRS’ legislative requirement to set a surcharge to actuarially prefund annual 13th checks for PERF, TRF ’96, and EG&C members who retire before July 1, 2029, and annual 1% COLAs for members of those funds who retire on or after July 1, 2029.

This is not a guarantee of future 13th checks or future COLAs that the General Assembly has not yet granted. The General Assembly may or may not grant future 13th Checks (beyond those specifically granted by HEA 1221) or future COLAs. INPRS is only permitted to grant fully funded 13th checks or COLAs as explicitly provided by the General Assembly and retirement fund law.

For more information about 13th checks and COLAs you can go here.

Every attempt has been made to verify that the information in this publication is correct and up-to-date. Published content does not constitute legal advice. If a conflict arises between information contained in this publication and the law, the applicable law shall apply.