# Indiana SB 14: Pension matters.

Indiana SB 14, Pension matters., is a Second Regular Session 124th General Assembly (2026) Senate bill sponsored by Linda Rogers (Republican); status signed, last action 2026-03-05 (Public Law 104); PRIA reads it as touching household money (as of 2026-11-01).

- Canonical: https://policyrisk.com/state-bill/IN-SB14-2026
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Indiana SB 14
- State: Indiana
- Session: Second Regular Session 124th General Assembly (2026)
- Title: Pension matters.
- Status: signed
- Chamber: Senate
- Introduced: 2025-12-08
- Last action: 2026-03-05, Public Law 104
- Sponsor: Linda Rogers (Republican)
- Cosponsors: 9
- Subjects: pensions and labor, the house, employment
- Touches household money: yes
- Roll calls: 4 (283 yes, 0 no in all)
- Economic provisions PRIA read: 14

## Summary

Modifies the definition of "average of the annual compensation" for a member of the public employees' retirement fund (PERF) who retires after December 31, 2027. Specifies that compensation received in contemplation of retirement is excluded from the average of the annual compensation for particular members of PERF and the Indiana state teachers' retirement fund (TRF). Repeals a provision requiring the board of trustees of the Indiana public retirement system (board) to maintain separate accounts for each unit of local government. Provides that amounts forfeited under the public employees defined contribution plan must be used as determined by the board. Specifies a process by which a fully vested member of the public employees' defined contribution plan or the teachers' defined contribution plan may irrevocably elect to participate in PERF or TRF, as applicable. Modifies the information that must be included in a delinquency notice to a delinquent political subdivision. Modifies the requirements that apply to certain PERF members purchasing and claiming years of service credit in PERF. Allows, subject to particular requirements, certain TRF members to purchase and claim years of service credit in TRF. Allows a PERF or TRF member's employer to pay all or part of the member's contributions required for purchase of service credit. Allows a wage assignment to be made for the purpose of paying voluntary contributions of an employee of a political subdivision to a tax deferred retirement account. Provides that a municipality, a unit, an airport authority, a school corporation, or a charter school may require certain members of PERF to continue as members of that fund instead of the 1977 police officers' and firefighters' pension and disability fund (1977 fund). Requires, subject to certain limitations, the state to make contributions after December 31, 2026, that match, dollar for dollar, each state employee's deferred compensation contributions, not to exceed $28 per paycheck. Specifies a process by which portions of the funding sources for the retirement medical benefits account must be transferred to the state comptroller for the purpose of making matching contributions. Provides as a default rule that after December 31, 2026, each participant's membership in the retirement medical benefits account is terminated, participant subaccounts are forfeited, and subaccount amounts must be transferred to the state general fund. Requires the state comptroller to transfer certain amounts from the state general fund to each participant's defined contribution plan. Specifies a time frame within which a participant in the retirement medical benefits account may elect to remain a participant. Establishes the 2027 retiree health benefit trust. Provides that the retiree health benefit trust fund will be terminated when certain conditions are met. Increases the lump sum death benefit payable to the heirs or estate of a 1977 fund member. (The introduced version of this bill was prepared by the interim study committee on pension management oversight.)

## Bill overview: provisions PRIA read

- Higher death benefits for police families: benefit, high. Beginning July 1, 2026, the 1977 police and firefighter fund's minimum death payment rises from $12,000 to $15,000. An eligible deceased member's heirs or estate receive at least $3,000 more than the prior minimum.
- Public workers can buy pension service: benefit, medium. Beginning July 1, 2026, eligible public employees and teachers with defined contribution plan participation can buy pension service credit. They need at least one year of fund service and 10 combined years of covered fund service and plan participation. Before claiming credit, they must pay contrib…
- Public workers gain permanent pension choices: benefit, medium. Beginning July 1, 2026, fully vested teachers' defined contribution plan members can elect to join the teachers' fund. Participating public-employee employers can also offer this choice to workers fully vested in their employer contribution account. Elections must follow the retirement board's timi…
- Some public workers get better averaging: benefit, medium. For covered nonteacher members retiring January 1, 2028, or later, pensions use the higher of two pay averages. One uses the five highest calendar years; the other uses the five highest fiscal years. Each year must cover 12 months and include at least six months of creditable service. The five year…
- State workers get retirement contribution matches: benefit, medium. Beginning January 1, 2027, Indiana matches state workers' deferred-compensation contributions dollar for dollar in a defined contribution account. The match is capped at $28 per payroll warrant or authorization and depends on available biennial appropriations. The Budget Agency can suspend payments…
- Local workers gain retirement payroll deductions: benefit, low. Beginning July 1, 2026, Indiana local government workers can use payroll deductions for voluntary, qualifying tax-deferred retirement contributions. These deductions do not need to meet the usual wage-assignment conditions. The account must be in the worker's name, under their control, and immediat…
- Fewer state workers get medical accounts: cost, high. People starting covered state jobs after March 14, 2026, cannot join the retirement medical benefits account. The law also excludes people whose account membership ends under its transition rule.
- Employers can restrict public safety pensions: cost, medium. The law lets participating local governments, airport authorities, and schools require eligible public safety workers to keep their current pension. This authority covers public employees' retirement fund members who are police officers, firefighters, former marshals, or school resource officers. I…
- Public pensions limit retirement bonus pay: cost, low. Members retiring before January 1, 2028, can count up to $2,000 in retirement-related pay toward their pension pay average. That pay must arrive before service ends or within 12 months afterward; this inclusion rule ends for later retirements. For later retirees, the law excludes specified retireme…
- Local governments face pension financing limits: cost, low. Beginning July 1, 2026, pension relief payments go only to local governments with the listed police and firefighter pension funds. Those governments must use the money for pension payments; the state board can also pay approved, reasonable administrative costs. Counties and municipalities face a bo…
- State workers face medical account transition: mixed, medium. After December 31, 2026, covered workers generally leave the existing retirement medical account. Their balances move through the state general fund into defined contribution retirement accounts, subject to federal tax law. The state also makes a one-time contribution based on age and service under…
- Underfunded local pensions require recovery plans: mixed, low. Beginning July 1, 2026, local retirement plans face stronger funding oversight. A notice is required when contributions fall below the actuarially determined amount in at least three of the past five fiscal years. A notice is also required if funding fell below 50% at any time during the prior fisc…
- Retiree health trusts get temporary funding: mixed, low. Indiana uses a 2027 retiree health trust after December 31, 2026; the earlier trust ends after its required transition. Trust assets stay dedicated to plan benefits, subject to the law's exceptions. From July 1, 2026, through June 30, 2027, up to 1.67% of cigarette-tax revenue supports these trusts…
- Pension boards control forfeited employer money: mixed, low. When members leave before fully vesting, the pension board decides how to use their forfeited employer contributions. The law removes the requirement to use that money to reduce the fund's unfunded pension liability.

## Sponsors and cosponsors

- Sponsor: Linda Rogers (Republican), Senate
- Cosponsor: Blake Doriot (Republican), Senate
- Cosponsor: Brian Buchanan (Republican), Senate
- Cosponsor: David Niezgodski (Democratic), Senate
- Cosponsor: Heath VanNatter (Republican), House
- Cosponsor: Jake Teshka (Republican), House
- Cosponsor: Scott Alexander (Republican), Senate
- Cosponsor: Shelli Yoder (Democratic), Senate
- Cosponsor: Tony Isa (Republican), House
- Cosponsor: Victoria Garcia Wilburn (Democratic), House

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2026-02-27 | House | Rules Suspended. Conference Committee Report 1: adopted by the House | pass | 95 | 0 |   |
| 2026-02-27 | Senate | Rules Suspended. Conference Committee Report 1: adopted by the Senate | pass | 49 | 0 |   |
| 2026-02-17 | House | Third reading: passed | pass | 90 | 0 |   |
| 2026-01-06 | Senate | Third reading: passed | pass | 49 | 0 |   |

## Bill text

- Engrossed Senate Bill (H): [PDF](https://api.iga.in.gov/2026/bills/SB0014/versions/SB0014.03.ENGS?format=pdf)
- Enrolled Senate Bill (S): [PDF](https://api.iga.in.gov/2026/bills/SB0014/versions/SB0014.05.ENRH?format=pdf)
- Introduced Senate Bill (S): [PDF](https://api.iga.in.gov/2026/bills/SB0014/versions/SB0014.01.INTR?format=pdf)
- Senate Bill (S): [PDF](https://api.iga.in.gov/2026/bills/SB0014/versions/SB0014.02.COMS?format=pdf), [PDF](https://api.iga.in.gov/2026/bills/SB0014/versions/SB0014.04.COMH?format=pdf)

## Related bills

- HB 1424: Farm and homestead food sales. (signed)
- HB 1406: Tax and fiscal matters. (signed)
- HB 1266: Department of education and education matters. (signed)
- HB 1277: Health and human services matters. (signed)
- HB 1210: Department of local government finance. (signed)
- HB 1249: Various criminal law matters. (signed)

## Sources
- [Engrossed Senate Bill (H) (PDF)](https://api.iga.in.gov/2026/bills/SB0014/versions/SB0014.03.ENGS?format=pdf)
- [Enrolled Senate Bill (S) (PDF)](https://api.iga.in.gov/2026/bills/SB0014/versions/SB0014.05.ENRH?format=pdf)
- [Introduced Senate Bill (S) (PDF)](https://api.iga.in.gov/2026/bills/SB0014/versions/SB0014.01.INTR?format=pdf)
- [Senate Bill (S) (PDF)](https://api.iga.in.gov/2026/bills/SB0014/versions/SB0014.02.COMS?format=pdf)
- [Senate Bill (S) (PDF)](https://api.iga.in.gov/2026/bills/SB0014/versions/SB0014.04.COMH?format=pdf)

## Related
- [HB 1424: Farm and homestead food sales.](https://policyrisk.com/state-bill/IN-HB1424-2026)
- [HB 1406: Tax and fiscal matters.](https://policyrisk.com/state-bill/IN-HB1406-2026)
- [HB 1266: Department of education and education matters.](https://policyrisk.com/state-bill/IN-HB1266-2026)
- [HB 1277: Health and human services matters.](https://policyrisk.com/state-bill/IN-HB1277-2026)
- [HB 1210: Department of local government finance.](https://policyrisk.com/state-bill/IN-HB1210-2026)
- [HB 1249: Various criminal law matters.](https://policyrisk.com/state-bill/IN-HB1249-2026)
- [Indiana bills](https://policyrisk.com/states/indiana/bills)
- [Indiana state hub](https://policyrisk.com/states/indiana)
- [All state legislation](https://policyrisk.com/state-bills)

Source: PRIA, https://policyrisk.com/state-bill/IN-SB14-2026 (as of 2026-11-01).