Shown verbatim: the complete text as captured from the official PDF posted by the Indiana General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the current version. The official bill page.
Second Regular Session of the 124th General Assembly (2026)
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between statutes enacted by the 2025 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1145
AN ACT to amend the Indiana Code concerning pensions.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 5-10-5.5-10, AS AMENDED BY P.L.128-2008,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 10. (a) Benefits provided under this section are
subject to section 2.5 of this chapter.
(b) Except as provided in section 10.5 of this chapter, the annual
retirement allowance of a participant, payable in equal monthly
installments beginning on the participant's normal retirement date, shall
be a percentage of the participant's average annual salary, such
percentage to be twenty-five percent (25%) increased by one and
two-thirds percent (1 2/3%) of the participant's average annual salary
for each completed year of creditable service more than ten (10) years.
However, the annual retirement allowance computed under this
subsection may not exceed seventy-five percent (75%) of the
participant's average annual salary.
(c) The annual retirement allowance under subsection (b) shall
cease with the last monthly payment prior to the death of the
participant.
SECTION 2. IC 5-10-5.5-10.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2026]: Sec. 10.5. (a) This section applies to a
participant who retires after June 30, 2026.
(b) A participant may elect a joint and survivor option for the
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payment of the participant's retirement allowance instead of the
annual retirement allowance provided under section 10 of this
chapter. The amount of the optional payments shall be determined
under rules of the board and shall be the actuarial equivalent of the
benefit payable under section 10 of this chapter.
(c) The following apply to the joint and survivor option under
subsection (b):
(1) The participant receives a decreased retirement benefit
during the participant's lifetime, and there is a benefit
payable after the participant's death to a designated
beneficiary during the lifetime of the beneficiary, which
benefit equals, at the option of the participant, either the full
decreased retirement benefit or two-thirds (2/3) or one-half
(1/2) of that benefit.
(2) If the participant dies before retirement, the designated
beneficiary may receive survivors' benefits if the individual is
entitled to survivors' benefits under section 16.3 of this
chapter.
(3) If the designated beneficiary dies before the participant
retires, the election is automatically canceled and the
participant may make a new beneficiary election. A
participant described by this subdivision may elect the joint
and survivor option after making a new beneficiary election.
SECTION 3. IC 5-10-5.5-16.3, AS ADDED BY P.L.6-2020,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 16.3. (a) This section applies to:
(1) an active participant, regardless of the participant's years of
creditable service; and
(2) an inactive participant with at least fifteen (15) years of
creditable service;
who dies other than in the line of duty after January 31, 2018. Except
as provided in section 10.5(c)(2) of this chapter, this section does
not apply to a participant who elects the joint and survivor option
under section 10.5 of this chapter.
(b) Benefits provided under this section are subject to section 2.5 of
this chapter.
(c) A surviving mother or father nominated by the participant to
receive survivors' benefits under the provisions of this chapter is
entitled to an annual survivors' allowance for life equal to fifty percent
(50%) of the amount to which the participant would have been entitled
if the participant had retired with twenty-five (25) years of service at
fifty (50) years of age.
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(d) A surviving spouse nominated by the participant to receive
survivors' benefits under the provisions of this chapter is entitled to an
annual survivors' allowance equal to fifty percent (50%) of the amount
to which the participant would have been entitled if the participant had
retired with twenty-five (25) years of service at fifty (50) years of age.
A survivors' allowance payable to a surviving spouse under this
subsection ends with the last payment before the surviving spouse's
death.
(e) An eligible surviving child who is nominated by the participant
to receive survivors' benefits under this chapter is entitled to an annual
survivors' allowance equal to fifty percent (50%) of the amount to
which the participant would have been entitled if the participant had
retired with twenty-five (25) years of service at fifty (50) years of age.
If more than one (1) eligible surviving child is nominated to receive
survivors' benefits, the annual survivors' allowance shall be divided
equally between or among the eligible surviving children who were
nominated to receive survivors' benefits. A survivors' allowance to a
child ends when the child attains the age of eighteen (18) years or
marries, whichever occurs first. If a survivors' allowance is divided
between or among more than one (1) child, and payments to one (1) or
more children receiving the survivor's allowance cease because of the
age, marriage, or death of the child, the total annual survivors'
allowance payable under this subsection shall be divided evenly among
or between the surviving children, if any, who remain eligible to
receive the survivors' allowance.
SECTION 4. [EFFECTIVE JULY 1, 2026] (a) As used in this
SECTION, "fund" refers to the Indiana state teachers' retirement
fund established by IC 5-10.4-2-1.
(b) As used in this SECTION, "supplemental allowance reserve
account" refers to the supplemental allowance reserve account
established under IC 5-10.2-2-2(c)(3).
(c) Not later than October 1, 2026, the supplemental allowance
reserve account 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 determined under subsection
(d) for the member of the fund. The amount is not an increase in
the pension portion of the monthly benefit.
(d) For purposes of determining the amount paid under
subsection (c) to a member of the fund (or to a survivor or
beneficiary of a member) who meets the requirements of
subsection (c), the applicable amount is determined as follows:
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If a Member's Creditable The Amount Is:
Service Is:
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
(e) The creditable service used to determine the amount paid to
a member (or to a survivor or beneficiary of a member) under
subsection (c) is the creditable service that was used to compute the
member's retirement benefit under IC 5-10.2-4-4, except that
partial years of creditable service may not be used to determine the
amount paid under subsection (c).
(f) If two (2) or more survivors or beneficiaries of a member are
entitled to an amount paid under subsection (c), the amount shall
be allocated to the survivors or beneficiaries in shares using the
same percentages as the percentages determined under
IC 5-10.2-3-7.5 or IC 5-10.4-4-10 to pay the monthly benefit to the
survivors or beneficiaries.
(g) This SECTION applies notwithstanding IC 5-10.2-12-4(b).
(h) This SECTION expires January 1, 2028.
SECTION 5. [EFFECTIVE JULY 1, 2026] (a) As used in this
SECTION, "fund" refers to the Indiana public employees'
retirement fund established by IC 5-10.3-2-1.
(b) As used in this SECTION, "supplemental allowance reserve
account" refers to the supplemental allowance reserve account
established under IC 5-10.2-2-2(a)(3).
(c) Not later than October 1, 2026, the supplemental allowance
reserve account 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 determined under subsection
(d) for the member of the fund. The amount is not an increase in
the pension portion of the monthly benefit.
(d) For purposes of determining the amount paid under
subsection (c) to a member of the fund (or to a survivor or
beneficiary of a member) who meets the requirements of
subsection (c), the applicable amount is determined as follows:
If a Member's Creditable The Amount Is:
Service Is:
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
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At least 30 years $450
(e) The creditable service used to determine the amount paid to
a member (or to a survivor or beneficiary of a member) under
subsection (c) is the creditable service that was used to compute the
member's retirement benefit under IC 5-10.2-4-4, except that
partial years of creditable service may not be used to determine the
amount paid under subsection (c).
(f) If two (2) or more survivors or beneficiaries of a member are
entitled to an amount paid under subsection (c), the amount shall
be allocated to the survivors or beneficiaries in shares using the
same percentages as the percentages determined under
IC 5-10.2-3-7.5 or IC 5-10.3-8-15 to pay the monthly benefit to the
survivors or beneficiaries.
(g) This SECTION applies notwithstanding IC 5-10.2-12-4(b).
(h) This SECTION expires January 1, 2028.
SECTION 6. [EFFECTIVE JULY 1, 2026] (a) As used in this
SECTION, "participant" has the meaning set forth in
IC 5-10-5.5-1.
(b) As used in this SECTION, "plan" refers to the state excise
police, gaming agent, gaming control officer, and conservation
enforcement officers' retirement plan created by IC 5-10-5.5-2.
(c) As used in this SECTION, "supplemental allowance reserve
account" refers to the supplemental allowance reserve account
established under IC 5-10-5.5-4(c).
(d) Not later than October 1, 2026, the supplemental allowance
reserve account shall pay to a plan participant (or to a survivor or
beneficiary of a plan participant) 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 determined under
subsection (e) for the plan participant. The amount is not an
increase in the pension portion of the monthly benefit.
(e) The amount paid under subsection (d) to a plan participant
(or to a survivor or beneficiary of a plan participant) who meets
the requirements of subsection (d) is determined as follows:
If a Plan Participant's Creditable The Amount Is:
Service Is:
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
(f) The creditable service used to determine the amount paid to
a plan participant (or to a survivor or beneficiary of a plan
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participant) under subsection (d) is the creditable service that was
used to compute the plan participant's retirement allowance under
IC 5-10-5.5-10 and IC 5-10-5.5-12, except that partial years of
creditable service may not be used to determine the amount paid
under subsection (d).
(g) If two (2) or more survivors or beneficiaries of a plan
participant are entitled to an amount paid under subsection (d), the
amount shall be allocated to the survivors or beneficiaries in shares
using the same percentages as the percentages determined under
IC 5-10-5.5-16 or IC 5-10-5.5-16.3 to pay the monthly benefit to the
survivors or beneficiaries.
(h) This SECTION applies notwithstanding IC 5-10.2-12-4(b).
(i) This SECTION expires January 1, 2028.
SECTION 7. [EFFECTIVE JULY 1, 2026] (a) As used in this
SECTION, "trustee" has the meaning set forth in IC 10-12-1-10.
(b) As used in this SECTION, "trust fund" has the meaning set
forth in IC 10-12-1-11.
(c) Not later than October 1, 2026, the trustee shall pay from the
trust fund to each employee beneficiary of the state police pre-1987
benefit system covered by IC 10-12-3 who:
(1) retired or was disabled before July 2, 2025; and
(2) is entitled to receive a monthly benefit as of September 1,
2026;
an amount equal to one percent (1%) of the maximum basic annual
pension amount payable to a retired state police employee in the
grade of trooper who has completed twenty (20) years of service as
of July 1, 2026, as calculated under IC 10-12-3-7.
(d) The amounts paid under this SECTION are not an increase
in the monthly pension amount of an employee beneficiary.
(e) This SECTION applies notwithstanding IC 10-12-7-2.
(f) This SECTION expires January 1, 2028.
SECTION 8. [EFFECTIVE JULY 1, 2026] (a) As used in this
SECTION, "trustee" has the meaning set forth in IC 10-12-1-10.
(b) As used in this SECTION, "trust fund" has the meaning set
forth in IC 10-12-1-11.
(c) Not later than October 1, 2026, the trustee shall pay from the
trust fund to each employee beneficiary of the state police 1987
benefit system covered by IC 10-12-4 who:
(1) retired or was disabled after June 30, 1987, and before
July 2, 2025; and
(2) is entitled to receive a monthly benefit as of September 1,
2026;
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an amount equal to one percent (1%) of the maximum basic annual
pension amount payable to a retired state police employee in the
grade of trooper who has completed twenty-five (25) years of
service as of July 1, 2026, as calculated under IC 10-12-4-7.
(d) The amount paid under this SECTION is not an increase in
the monthly pension amount of an employee beneficiary.
(e) This SECTION applies notwithstanding IC 10-12-7-2.
(f) This SECTION expires January 1, 2028.
HEA 1145 — Concur
Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1145 — ConcurEvery fact on this page links to its source, starting with the official bill record.