Two bills cosponsored by State Representative Woody Burton passed through the Indiana House today. Senate Bill (SB) 228, a bill regarding the Indiana Public Retirement System, passed the House with a 94- 0 vote. A second bill, SB 526, deals with the Public Employees’ Retirement Fund (PERF) membership and retirement benefits. It also passed the House today with a 97-0 vote.
“SB 228 stems from recommendations from the Pension Management Oversight Committee,” said Rep. Burton. “This bill seeks to bring benefits extended to participants in the Teachers’ Retirement Fund, to members of PERF as well.”
The Senate bill provides a death benefit for PERF members who are currently not entitled to the same death benefit as members of the Teachers’ Retirement Fund (TRF) are, in terms of how the benefit is distributed. This bill would provide the same opportunity for public employees to have their death benefit vested with the designated beneficiary on file at the time of death.
SB 526 has two main provisions. First, because Indiana Lottery Commission employees are state employees, they will now be members of PERF. Second, the bill aims to eliminate the practice of “double-dipping” by preventing retirees who become reemployed by the state from being able to receive supplemental retirement benefits while employed in their new position.
An amendment added in the House provides that transferring a member from the Lottery Commission’s retirement plan to PERF shall not diminish the amount of the benefits previously accrued by the member. If the member’s benefit exceeds the amount due from PERF, the Lottery Commission is responsible for the remaining obligation.
“The Indiana Lottery Commission recently privatized many of their operations and went from 200 employees to 40,” said Rep. Burton. “The changes in this bill were necessary to support a pension fund that was no longer sustainable with so few employees.”
SB 228 and 526 will now head to the governor’s desk to be signed into law.
To stay up-to-date on this bill and any other piece of legislation in the General Assembly, visit www.in.gov/legislative.
