A number of INPRS-related legislative changes were approved by the 2020 Indiana General Assembly. Below is a brief summary of the legislation. You may e-mail inquiries to firstname.lastname@example.org or call (844) GO-INPRS for more information. These laws are effective on July 1, 2020 unless otherwise noted.
Active members of LE DC, PERF Hybrid, PERF My Choice, TRF Hybrid, and TRF My Choice are permitted to take in-service distributions of their defined contribution accounts if they meet specific requirements, effective Jan. 1, 2021. LE DC members must be at least age 59½. PERF Hybrid and TRF Hybrid members must be at least age 59½ and meet age and service eligibility for normal retirement. PERF My Choice and TRF My Choice members must be at least age 62 and have five years creditable service.
Allows INPRS to provide additional annuity options for members to select that does not include the minimum death benefit.
Creates a Mental Health Review Panel. The panel is to be composed of a licensed psychologist, a licensed psychiatrist, and an active retired police officer or firefighter (depending upon who is being evaluated). All individuals who received a mental illness-related disability after December 31, 2012 are required to be evaluated at two and four-year intervals by the panel. Clarifies that mental illnesses are either class 1 or class 3 impairments. Additional information can be found at IC 36-8-8.3.
Modifies benefits for survivors of EG&C members. If a member dies in the line of duty after January 31, 2018, the surviving spouse, parent, or eligible surviving child nominated by the member is entitled to 100 percent of the amount to which the member would have been entitled with 25 years of service at 50 years of age. If an EG&C member died in the line of duty after Jan. 31, 2018 and before Jan. 1, 2020, the survivor may repay the full amount distributed to them in return for the full annual survivors’ allowance plus interest, or the annual survivor’s allowance will be reduced by the amount already distributed. If a member dies other than in the line of duty after Jan. 31, 2018 with at least 15 years of creditable service, the surviving spouse, parent, or eligible child is entitled to 50 percent of what the member would have been entitled if the member had retired with 25 years of service at 50 years of age. Survivors of inactive members with at least 15 years of service who did not receive a disability are entitled to a lump-sum refund of all contributions to the participant’s credit, plus interest.
Harmonizes DROP benefits for EG&C, 1925 Fund, 1937 Fund, 1953 Fund, and 1977 Fund. If a member enters the drop at any time and dies after June 30 2020, survivor benefits are as follows:
- If the member died with less than 12 months after entering DROP, the benefits are calculated as if the member never entered DROP.
- If the member died with at least 12 months after entering DROP, the death benefits consist of the DROP frozen benefit, and an amount which is the DROP frozen benefit multiplied by the number of months in DROP.
Allows political subdivisions to adopt a resolution specifying that members of a volunteer fire department are required to become members of PERF My Choice. For volunteer firefighters, the 3 percent of member compensation required contribution is removed, and the ability for political subdivisions to match contributions is removed. Political subdivisions determine the amount and frequency of contributions for these individuals.
The maximum age of entry to the 1977 fund for police officers only is increased from 36 years of age to 40 years of age. The maximum age of entry for firefighters remains unchanged.
Increases special death benefit from $150,000 to $225,000 for public safety officers who die in the line of duty. This legislation also allows INPRS to set and require contributions for employers of the 1925 1937, 1953, and 1977 Funds, post-secondary education institutions that pay for special death benefit coverage, political subdivisions that pay for special death benefit coverage, and health care systems affiliated with state educational institutions that pay for special death benefit coverage in order to maintain the special death benefit.
Adds school resource officer to public safety officer definition for special death benefit purposes.