IndianaHB 1221First Regular Session 124th General Assembly (2025)HouseWALLET

Pension matters.

Sponsored By: Michael Karickhoff (Republican)

Signed by Governor

Summary

Amends provisions regarding the surcharge rates established by the Indiana public retirement system to actuarially prefund certain postretirement benefits. Adds provisions requiring the treasurer of state to determine a surcharge amount that is to be paid into the supplemental reserve account for the state police pre-1987 and 1987 benefit systems. Provides for a thirteenth check in calendar year 2025 for certain members, participants, or beneficiaries of the: (1) Indiana state teachers' retirement fund; (2) Indiana public employees' retirement fund; (3) state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement plan; (4) state police pre-1987 benefit system; and (5) state police 1987 benefit system. Makes conforming changes.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Extra checks for public pension retirees

The law provides one-time checks by October 1, 2025, from supplemental allowance reserve accounts for three Indiana retirement plans. These cover teachers, public employees, and state excise police, gaming, and conservation officers, including eligible survivors and beneficiaries. The member must have retired or become disabled by December 1, 2024, and qualify for monthly benefits on July 1, 2025. Payments are $143 for 5–9 completed service years, $261 for 10–19, $356 for 20–29, and $428 for 30 or more. At least five years are required; partial years do not count. Multiple survivors or beneficiaries split the check using their monthly benefit shares. The payments do not raise monthly pensions; the provisions take effect July 1, 2025, and expire January 1, 2027.

Extra checks for state police retirees

Eligible beneficiaries of Indiana’s pre-1987 and 1987 state police pension systems receive one-time checks by October 1, 2025. They must have retired or become disabled before July 2, 2024, and qualify for monthly benefits on September 1, 2025. For the 1987 system, retirement or disability must also have occurred after June 30, 1987. Each check equals 1% of a maximum basic annual pension benchmark, reduced by 5%. The benchmark, measured July 1, 2025, uses a trooper with 20 service years for the pre-1987 system and 25 for the 1987 system. These service years define the payment benchmark, not a separate eligibility requirement. Survivor payments follow existing benefit-share rules, and the checks do not raise monthly pensions. The provisions take effect July 1, 2025, and expire January 1, 2027.

Pension surcharges fund future retiree benefits

Beginning July 1, 2025, pre-1987 state police employees and employers pay a separate pension surcharge set by Indiana’s treasurer. The state provides an equal amount from its general fund to supplemental allowance reserve accounts; no surcharge amount is specified. The retirement board must set surcharge rates using pension cost estimates to fund two future benefits in advance. These are annual extra checks, adjusted by an index, for retirees and beneficiaries with retirement dates before July 1, 2029. The second benefit is a 1% yearly cost-of-living increase for those retiring on or after that date. Rates cannot fall below the prior year’s rate, and annual increases cannot exceed 0.1 percentage point of payroll. The rate-setting requirement expires December 31, 2031.

Sponsors & Cosponsors

Sponsor

  • Michael Karickhoff

    Republican • House

Cosponsors

  • Andrea Hunley

    Democratic • Senate

  • Ben Smaltz

    Republican • House

  • Brian Buchanan

    Republican • Senate

  • David Niezgodski

    Democratic • Senate

  • Gregory Porter

    Democratic • House

  • Heath VanNatter

    Republican • House

  • Linda Rogers

    Republican • Senate

  • Lonnie Randolph

    Democratic • Senate

  • Randy Maxwell

    Republican • Senate

  • Rodney Pol

    Democratic • Senate

  • Shelli Yoder

    Democratic • Senate

  • Stacey Donato

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 282 • No: 45

Senate vote • 4/24/2025

Rules Suspended. Conference Committee Report 1: adopted by the Senate

Yes: 39 • No: 11

House vote • 4/23/2025

Rules Suspended. Conference Committee Report 1: adopted by the House

Yes: 90 • No: 0

Senate vote • 4/15/2025

Third reading: passed

Yes: 46 • No: 3

Senate vote • 4/14/2025

Amendment #1 (Qaddoura) failed

Yes: 18 • No: 31

House vote • 2/4/2025

Third reading: passed

Yes: 89 • No: 0

Actions Timeline

  1. Public Law 226

    5/6/2025House
  2. Signed by the Governor

    5/6/2025House
  3. Signed by the President of the Senate

    4/29/2025Senate
  4. Signed by the President Pro Tempore

    4/24/2025Senate
  5. Signed by the Speaker

    4/24/2025House
  6. Rules Suspended. Conference Committee Report 1: adopted by the Senate; Roll Call 514: yeas 39, nays 11

    4/24/2025Senate
  7. Rules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 540: yeas 90, nays 0

    4/23/2025House
  8. CCR # 1 filed in the House

    4/23/2025House
  9. CCR # 1 filed in the Senate

    4/23/2025Senate
  10. CCR # 1 filed in the Senate

    4/23/2025Senate
  11. Senate conferees appointed: Buchanan and Niezgodski

    4/17/2025Senate
  12. Senate advisors appointed: Hunley and Rogers

    4/17/2025Senate
  13. House conferees appointed: Karickhoff and Porter

    4/16/2025House
  14. House advisors appointed: VanNatter, Genda, Harris and Moseley

    4/16/2025House
  15. House dissented from Senate amendments

    4/16/2025House
  16. Returned to the House with amendments

    4/16/2025Senate
  17. Motion to dissent filed

    4/16/2025House
  18. Third reading: passed; Roll Call 434: yeas 46, nays 3

    4/15/2025Senate
  19. Amendment #1 (Qaddoura) failed; Roll Call 413: yeas 18, nays 31

    4/14/2025Senate
  20. Second reading: ordered engrossed

    4/14/2025Senate
  21. Committee report: amend do pass, adopted

    4/10/2025Senate
  22. Senator Randolph added as cosponsor

    4/10/2025Senate
  23. Senator Maxwell added as cosponsor

    4/1/2025Senate
  24. Senator Yoder added as cosponsor

    3/31/2025Senate
  25. Committee report: amend do pass adopted; reassigned to Committee on Appropriations

    3/27/2025Senate

Bill Text

  • Enrolled House Bill (H)

  • House Bill (H)

  • House Bill (S)

  • Introduced House Bill (H)

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