The 2026 Indiana General Assembly approved the following INPRS-related legislative changes. Legislation is effective on July 1, 2026, unless otherwise noted. You may e-mail inquiries to questions@inprs.in.gov or call (844) GO-INPRS for more information.
SEA 14 — Pension Matters
State Retirement Medical Benefit Accounts (RMBA)
For active and eligible State of Indiana employees hired before March 14, 2026, the current RMBA plan will terminate as of December 31, 2026. These active employees will have two (2) options during open enrollment in the fall of 2026 to make a one-time irrevocable election to:
- Transfer their current RMBA balance to the new 2027 Retiree Health Benefit Trust Fund (“2027 RMBA”); or
- Receive a one-time contribution to their Hoosier Start Deferred Compensation Plan account. Balances will vary based on age and years of participation in RMBA.
RMBA Retirees and their survivors/beneficiaries are not impacted by this change and may continue to use their RMBA until the account is depleted.
For State of Indiana employees hired after on or after March 14, 2026, these employees will be enrolled in the Hoosier Start Deferred Compensation Plan account.
For those State of Indiana employees enrolled in the Hoosier Start Deferred Compensation Plan account, or for those State of Indiana employees who elect to enroll in this account, state contributions:
- May not exceed twenty-eight dollars ($28) for each payroll warrant or payroll authorization;
- Are limited to the amount of biennial appropriations the budget agency determines are available for any such purposes.
Before any increase in the state contribution amount, the
amount must be reviewed by the budget committee established by IC 4-12-1-3. In extraordinary financial circumstances, the State Budget Agency may suspend the payment of contributions.
Before there is any increase in the state contribution account payment of $28 to state employees’ deferred compensation plan accounts, the amount must be reviewed by the budget committee established by IC 4-12-1-3.
Additional guidance regarding this election will be provided prior to the open enrollment period.
Average of the Annual Compensation
Average annual compensation is a key part of how INPRS calculates pension benefits for most of its defined benefit plans
For non-teacher members who retire after December 31, 2027, the average of the annual compensation means the average annual compensation calculated using the greater of:
- The five (5) calendar years of service before retirement in which the member's annual compensation for the calendar year was the highest.
- The five (5) fiscal years of service before retirement in which the members’ annual compensation for the fiscal year was the highest.
- A fiscal year begins on July 1.
As to calendar years, a calendar year begins on January 1.
For these members, for the year of salary information to count:
- The member earned at least 1/2 year of service credit, and
- All 12 months do not need to contain salary information for that year to count in the high five (5) of retirement salaries.
The five (5) years do not have to be continuous.
Compensation Received in Contemplation of Retirement
For members who retire after December 31, 2027, and served in a covered position during the entire year before the member’s last year of service, compensation received in contemplation of retirement is excluded from the average of the annual compensation.
SEA 14 has defined “compensation received in contemplation of retirement” as compensation:
- a member received during the member's last year of service and after the member's last year of service; and
- no more than one-hundred twenty percent (120%) of the member's compensation of the previous year's salary.
A year must begin on January 1 or July 1 on the same basis as the average of the annual compensation.
My Choice Second Chance
Starting July 1, 2026, all active vested members of the TRF My Choice Retirement Savings Plan (TRF My Choice Plan) and active vested members of the PERF My Choice Retirement Savings Plan (PERF My Choice Plan), whose employers allow this election, may end their My Choice membership and elect to participate in the TRF Hybrid or PERF Hybrid Plan. This election is irrevocable.
Employers who only offer My Choice plans may opt in to offer Hybrid and My Choice, at which time My Choice members may select the Hybrid option.
PERF My Choice and TRF My Choice Service Purchase
A member of the PERF Hybrid Fund or TRF Hybrid Fund, who is also a member of the PERF My Choice or TRF My Choice Plan, may purchase and claim years of participation in PERF My Choice or TRF My Choice as creditable service in the PERF Hybrid Fund or TRF Hybrid Fund. The member must have at least one year of Hybrid Fund service credit to be eligible to purchase.
These members may purchase service up to the full years of participation in the PERF My Choice Plan or TRF My Choice Plan.
Employers may pay part or all of the members’ contribution to purchase service. There is no time limit to purchase service. However, before a member may claim the years of service credit, the member must pay the service purchase cost determined by the actuary.
Employer Election to continue PERF membership
Certain members of PERF may be required to continue as members of that fund instead of becoming members of the 1977 Police Officers’ and Firefighters’ Pension and Disability Fund, if their employers are:
- A municipality,
- A unit,
- An airport authority,
- A school corporation, or
- A charter school.
A police officer or firefighter may not waive participation in the 1977 Fund. Only the employer may require the police officer or firefighter to continue membership in PERF. This change was necessary for compliance with Federal Law.
1977 Fund Lump Sum Death Benefit
The 1977 Fund member’s estate or heirs are entitled to receive a one-time $15,000 death benefit upon the member’s death if on or after March 5, 2026.
HEA 1042 – Regulation and Investment of Cryptocurrency
Effective July 1, 2027, the following plans and accounts shall offer, as a regular investment program, a self-directed brokerage account that offers at least one cryptocurrency investment option:
- The Legislators’ Defined Contribution Plan.
- Public employees' retirement fund plans and accounts.
- Teachers' retirement fund plans and accounts (including the teachers' pre-1996 account).
The INPRS Board may adopt requirements and rules that apply to a cryptocurrency investment option and determine the appropriate administrative fees to be charged to the member’s accounts.
HEA 1145 – 13th Checks – PERF, TRF, and EG&C
No later than October 1, 2026, INPRS shall pay to a member of the fund (or to a survivor or beneficiary of a member), who retired or was disabled on or before December 1, 2025, and who is entitled to receive a monthly benefit on July 1, 2026, the amount below:
- At least 5 years, but less than 10 years: $150
- At least 10 years, but less than 20 years: $275
- At least 20 years, but less than 30 years: $375
- At least 30 years: $450
The creditable service used to determine the amount paid to a member (or to a survivor or beneficiary of a member) is the creditable service that was used to compute the member's retirement benefit, not including partial years of service.
If two or more survivors or beneficiaries of a member are entitled to an amount paid, the amount shall be allocated to the survivors or beneficiaries in shares using the same percentages used to determine the monthly benefit to the survivors or beneficiaries.
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.
EG&C Survivor Benefit Option
Excise, Gaming, and Conservation Enforcement Officers' (EG&C) Retirement Plan members, who retire after June 30, 2026, regardless of marital status, may choose between the Regular Retirement payment option and the new Joint and Survivor option. The payment will be determined with a joint life expectancy calculation, taking into account the member’s and the survivor’s ages and life expectancies. This option allows members to select a payment for their survivor. The percentages are either:
- 100% of your retirement benefit, or
- Two-thirds (2/3), or
- One-half (1/2) of your benefit.
If the survivor is a non-spouse, there are specific IRS limitations for the retirement option you can elect.
Members may select this new option either when completing their retirement application or applying for the Deferred Retirement Payment Election Plan (DROP). Before selecting an option, members may request an estimate from INPRS by filling out a form to determine how the Joint & Survivor payment options break down individually.
If the member has elected DROP and dies before retiring, the designated beneficiary may receive survivors’ benefits.
If the designated survivor dies after the member retires but before the member dies, the election is automatically canceled. The retired member may select a new survivor, or no survivor, but they must contact INPRS and complete a form so that the payment can be recalculated. Once the new survivor selection is made, the member can then re-elect the joint and survivor option. The option can be changed for any reason, not just the death of a survivor.
HEA 1360 – Access to Public Records
Effective July 1, 2026, INPRS may establish and maintain an electronic portal for submission of public records that:
- Incorporates CAPTCHA or an equivalent mechanism for ensuring that a requestor is a human;
- Requires verification of a requestor’s physical address;
- Indicates whether the requestor is a resident of Indiana; and
- Automatically tracks and reports submissions suspected to be automated or to have originated from known sources of phishing or data scraping.
INPRS may decline public record requests if it suspects:
- the request to be data scraping or phishing activity; or
- that responding to the request may expose INPRS’s systems or data to unauthorized access or alteration; or jeopardize the security of INPRS’s system or data.
If INPRS declines to respond to a public records request due to one of the above-mentioned, no later than seven (7) days INPRS receives the request, INPRS must report to the Public Access Counselor the request INPRS declined to respond and the reason for declining no later than seven days. With any request for public records, INPRS may deny a request if:
- is made by a person that is a party to pending or ongoing litigation; or
- is duplicative of a discovery request made by the person in the pending or ongoing litigation
In fulfilling public records request, INPRS may give priority to:
- Indiana residents; and
- requests submitted for civic, journalistic, academic or personal use.
Requests identified as originating from out-of-state entities or automated systems to prevent disruption of core agency functions may be subject to a fee.
INPRS may collect a supplemental fee for processing public records requests submitted by non-Indiana residents or out-of-state entities. The fee:
- Must be reasonably related to the cost of fulfilling the request; and may not exceed twenty-five cents ($0.25) per page and twenty-five dollars ($25) per hour of staff time spent processing the request.
However, INPRS may waive the fee if the public agency finds that the public records request serves the public interest.
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.