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.
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1221
AN ACT to amend the Indiana Code concerning pensions.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 5-10.5-4-8, AS ADDED BY P.L.129-2024,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 8. (a) The board shall set the surcharge rates under
IC 5-10.2-12-3 at a level to actuarially prefund:
(1) annual indexed thirteenth checks for all current retired
members and beneficiaries retired before July 1, 2025; July 1,
2029; and
(2) one percent (1%) annual cost of living adjustments to future
in-payment members and beneficiaries retired on or after July 1,
2025. July 1, 2029.
(b) The board shall not reduce the surcharge rates under
IC 5-10.2-12-3 from the prior year.
(c) The board may increase the surcharge rates under IC 5-10.2-12-3
by not more than one-tenth percent (0.1%) of payroll from the prior
year.
(d) This section expires December 31, 2029. 2031.
SECTION 2. IC 10-12-7-3, AS ADDED BY P.L.129-2024,
SECTION 9 AND P.L.136-2024, SECTION 36, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 3. The
account consists of:
(1) amounts appropriated by the general assembly;
(2) or amounts transferred to the account by the general
HEA 1221 — CC 1
2
assembly; and
(3) surcharge amounts deposited under section 5 of this
chapter.
SECTION 3. IC 10-12-7-5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 5. (a) The treasurer of state shall determine a
surcharge amount that is to be paid into the account.
(b) In establishing the surcharge, the treasurer of state shall
determine an equivalent amount to be included in the state general
fund appropriations for the supplemental allowance reserve
accounts.
(c) The surcharge shall be paid from a separate charge for both
employer and employee contributions.
SECTION 4. [EFFECTIVE JULY 1, 2025] (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, 2025, 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, 2024, and who is entitled to receive a monthly
benefit on July 1, 2025, 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 $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
(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).
HEA 1221 — CC 1
3
(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, 2027.
SECTION 5. [EFFECTIVE JULY 1, 2025] (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, 2025, 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, 2024, and who is entitled to receive a monthly
benefit on July 1, 2025, 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 $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
(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
HEA 1221 — CC 1
4
survivors or beneficiaries.
(g) This SECTION applies notwithstanding IC 5-10.2-12-4(b).
(h) This SECTION expires January 1, 2027.
SECTION 6. [EFFECTIVE JULY 1, 2025] (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, 2025, 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, 2024, and who is entitled to receive a
monthly benefit on July 1, 2025, the amount determined under
subsection (e) for the plan participant of the fund. The amount is
not an increase in the pension portion of the monthly benefit.
(e) For purposes of determining 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), the applicable amount is determined as follows:
If a Plan Participant's Creditable The Amount Is:
Service Is:
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
(f) The creditable service used to determine the amount paid to
a plan participant (or to a survivor or beneficiary of a plan
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 to pay the monthly benefit to the survivors or
beneficiaries.
HEA 1221 — CC 1
5
(h) This SECTION applies notwithstanding IC 5-10.2-12-4(b).
(i) This SECTION expires January 1, 2027.
SECTION 7. [EFFECTIVE JULY 1, 2025] (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, 2025, 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, 2024; and
(2) is entitled to receive a monthly benefit as of September 1,
2025;
the amount determined under subsection (d)(2) for the employee
beneficiary of the state police pre-1987 benefit system.
(d) For purposes of determining the amount paid under
subsection (c), the applicable amount is determined as follows:
(1) Determine 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, 2025, as
calculated under IC 10-12-3-7.
(2) Reduce the amount determined under subdivision (1) by
five percent (5%).
(e) The amounts paid under this SECTION are not an increase
in the monthly pension amount of an employee beneficiary.
(f) This SECTION applies notwithstanding IC 10-12-7-2.
(g) This SECTION expires January 1, 2027.
SECTION 8. [EFFECTIVE JULY 1, 2025] (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, 2025, 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, 2024; and
(2) is entitled to receive a monthly benefit as of September 1,
2025;
the amount determined under subsection (d)(2) for the employee
beneficiary of the state police 1987 benefit system.
(d) For purposes of determining the amount paid under
subsection (c), the applicable amount is determined as follows:
HEA 1221 — CC 1
6
(1) Determine 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, 2025,
as calculated under IC 10-12-4-7.
(2) Reduce the amount determined under subdivision (1) by
five percent (5%).
(e) The amount paid under this SECTION is not an increase in
the monthly pension amount of an employee beneficiary.
(f) This SECTION applies notwithstanding IC 10-12-7-2.
(g) This SECTION expires January 1, 2027.
HEA 1221 — CC 1
Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1221 — CC 1Every fact on this page links to its source, starting with the official bill record.