2021 PENSION LEGISLATION
The Indiana State Legislature passed a 1% TRF COLA which will take effect January 2022. This was unexpected as in the past years there has only been a 13th Check (stipend) given to retired teachers. As a result of this action taking effect in 2022, there was no growth in a retired teacher’s income during 2021.
2020 PENSION LEGISLATION
Updated January 2021
The 2020 Legislative year was a non-budget year. The 13th Check (stipend) had been passed during the 2019 General Assembly. The stipend will appear in the September retirement paycheck.
2019 PENSION LEGISLATION
The 13th Check (stipend) was passed by the State Legislature for the next two years. The Association thanks everyone for contacting their state senators and representatives.
The Legislature is also taking the $150 million for the Post ’96 Teacher Retirement Fund out of the Budget Surplus, not the Pension Stabilization Fund (PAF). This is so school corporations may lower their contribution rate to the Post ’96 Teacher Retirement Fund for active teachers and put this toward their salaries. Taking the money from the PSF would have pushed the unfunded liability for the Pre ’96 Teachers Retirement Fund out a few more years.
The full House stood behind these issues in Conference Committee and the Senate was persuaded to support both issues. You can thank your representatives for his/her continued support and advocacy for the 13th Check.
On the Senate side, all the Democrats and some Republicans senators voted for Senator Niezgodski’s amendment to place the 13th Check back into the budget although it was defeated on the floor 28-19. Republican Senators Alting, Becker, Bohacek, Crane, Garter, Grooms, Lesing, Niemeyer, Ruckelhaus, Tomes voted for the amendment. They also spoke up during their caucus sessions to support the 13th Check.
2018 PENSION LEGISLATION
A stipend (13th
Check) was approved in the 2017 State Budget, so there was not a need this year
to approach the 2018 Legislature for a stipend or COLA.
The 2018 State Legislature,
however, did pass a bi-partisan bill to support and establish Supplemental
Accounts for increasing pension benefits such as a Cost of Living Adjustment
(COLA) or stipend (13th Check).
With these Supplemental Accounts established, the legislature will be
able to prefund these accounts to establish potential
increases in pension benefits. These
accounts will not have enough funding until at least 2020 to begin to pay out.
2017 PENSION LEGISLATION
During the 2017 General
Assembly there were 1179 bills filed, 525 presented in the Senate and 654 in
the House. 24 Pension related bills were
filed and 10 of those effected teacher pensions, 9 of those bills died in the General
Assembly although one bill had its language resurrected in HB1001, the Budget
Bill, at the very end of the session.
There were 3 COLA bills and 3
“13th Check” bills written, but only HB 1534 the traditional “13th
Check” bill cleared both houses and was signed by the Governor on April 20th. The “13th Check” was funded at its normal
amounts for two years in the budget which is the first time that has
happened. HB 1534 passed unanimously out
of the House and on a 49-1 vote in the Senate. Only Senator Kenley
voted against the bill.
NB 1467, the Defined
Contribution Option bill for new educators, passed through the house mostly on
a party line vote. It met more
opposition in the Senate and passed on a delayed vote 26-24, with one Senator
changing his vote in the middle of the delay and the last two Senators that
delayed the vote, voted yes. Representative Carbaugh,
who authored HB 1467, was not pleased with the two amendments that the Senate
Labor Committee added that stripped the bill of some flexibility. The three year flexibility was the only
portion that the IRTA liked about the bill that had very few positives and they
opposed the bill overall. Representative
Carbaugh took the bill to Conference Committee hoping
to have the bill redeemed to its original language. He was not able to accomplish that, so the
bill died in Conference Committee, or so everyone thought.
The following week, during
the last two days of
the General Assembly session, the language of HB 1467 was placed
into the Budget Bill behind closed doors.
This was done after any public testimony could be given and before
updated versions of the 165 page bill could be read. The Budget Bill passed, so in the future new
teachers will have to choose between the Hybrid Pension system that retired
teachers are currently under or a 401K style
retirement plan when they sign their first contract. Many legislators were unaware that this
language was included in the Budget Bill when they voted on it. This pension
option will most likely become effective after
2016 PENSION LEGISLATION
HB 1161 “13th
check” had complete support in the House of Representatives. The bill was authored by Representative Gutwein with an amendment added by Chairman Brown to fund
the bill through the tax amnesty program.
It was a huge help that the bill went fully funded and unanimously to
the Senate. The bill passed easily
through the Labor and Pensions Committee and the Appropriations Committee and
passed on the 3rd reading in the full Senate by a 39-11 vote. Several additional amendments were added to
the bill as it moved along. Finally
Representative Gutwein dissented and asked for the
additional amendments to be pulled. The bill then had to pass through each of
the steps again. No amendments were
added and the bill had final passage unanimously though the Senate. It was later signed by the governor.
A much bigger problem arose
when Representative Benning introduced a Defined
Contribution Pension Plan to be offered to new hires in education in HB
1004. This is the third time that such a
bill has been considered in the Legislature.
Although not affecting currently retired or active teachers, this bill
would have been a big blow to the pension programs of future teachers. A Defined Contribution plan puts much more
responsibility on the employee in managing the growth of his/her pension. There is also no guarantee that the pension
will not run out before the retiree is deceased. Thankfully through the support and work of
IRTA members and the IRTA Executive Director and lobbyist, this bill was
defeated. The problem, however, is that
this plan is destined to return. State
legislatures across the nation want to get out from under the responsibility of
handling pension program. It will be an
unfortunate day for educators when this happens.
2015 PENSION LEGISLATION
On the last day of the
Indiana General Assembly a 13th Check
amendment was added back into the State Budget.
The amounts of the 13th Check was
the same as has been given during the past years.
·
Retirees with
less than ten years of creditable service and on disability: $150.00.
·
Retirees with ten
years of creditable service, but less than twenty: $275.00.
·
Retirees with
twenty years of creditable service, but less than thirty: $375.00.
·
Retirees with
thirty plus years of creditable service:
$450.00.
Although appreciative of the
13th Check, the General Assembly’s decision was a disappointment for
retired teachers, as the Association had worked very hard to try and secure a
COLA. It has been seven years since the
last COLA was granted by the State Legislators and the buying power of retired
teachers has greatly diminished over that period of time.
2014 PENSION LEGISLATION
Unfortunately the 2014
Indiana General Assembly concluded its session without granting a COLA for the
On
HB 1074 provides for the
following stipend in September 2014’s TRF pension check:
·
Retirees with
less than ten years of creditable service and on disability: $150.00.
·
Retirees with ten
years of creditable service, but less than twenty: $275.00.
·
Retirees with
twenty years of creditable service, but less than thirty: $375.00.
·
Retirees with
thirty plus years of creditable service:
$450.00.
Although disappointed by the
Senate’s action on the COLA bill, it was noted that various senators commented
that the COLA request was coming in a non-budget year and that the bill would
stand a better chance in a regular budget year.
2013 PENSION LEGISLATION
The Indiana General Assembly
concluded its 2013 session with approval to HB 1080, giving a financial stipend
(13th Check) to the retired members of the Teachers Retirement Fund
and the Public Employees Retirement Fund.
The stipend is in the same amounts as 2012 and will be added to the
September TRF and
At least 30 years of creditable service: $450
At least 20 years, but less than 30 years of
creditable service: $375
At least 10 years, but less than 20 years of
creditable service: $275
Between 5 and 10 years (with disability retirement
benefits only): $150.
In addition to the stipend
(13th Check), all of the state’s excess budget money over
$50,000,000 will go into the Teachers’ Pension Stabilization Fund. This amount will not be known until the end
of the fiscal year.
The Association worked and lobbyed hard for not only the 13th Check, but also
a COLA (HB1590), a $500 minimum retirement check for all pre-1980 retirees (HB
1223), and military credit for men and women who served in the armed forces
before going into their teaching career (HB 0439). Although only HB 1080 was passed by the legislators,
the Association will continue to strive to get these other programs adopted.
2012 PENSION LEGISLATION
After much deliberation House Bill 1123 passed through the
State Legislature. In September 2012, retired teachers who retired on or before
At
least 30 years of creditable service: $450
At
least 20 years, but less than 30 years of creditable service: $375
At
least 10 years, but less than 20 years of creditable service: $275
Between
5 and 10 years (with disability retirement benefits only): $150.
Indiana
retired teachers can again be grateful for the hard work of the Indiana Retired
Teachers Association, its Legislative Committee, its officers, and its
Executive Director Andrew Thomas. Long hours
and diligence were again the norm. On
Thursday evening, the night before the Legislature adjourned for the year,
House Bill 1123 passed through both houses of the Legislature. On March 19th the governor signed
the bill.
The
other bill to aid the Teachers Retirement Fund was Senate Bill 143 which set
aside a portion of the money from the $320 million budget surplus for the
Retired Teachers’ Unfunded Liability.
Representative
Woody Burton, Representative Tim Neese, Senate
Chairman Luke Kenley, and Senator Ed Charbonneau were
influential in getting our 13th check through the Legislature. Be sure to let them and our own local
legislators know that we appreciate their support of retired teachers.
Several
other bills were also presented by the Indiana Retired Teachers, but were never
heard. These included (1) a Military
Service Credit which would grant up to six years of service credit in the
teachers’ retirement fund for a member’s past active military duty and (2) a
Minimum TRF Pension of $500 for retired teachers who retired before 1980 with
twenty years of creditable service.
House
Enrolled Act 1376
passed the House by a vote of 76 to 17 and the Senate by a vote of 40 to
10. This bill designates a portion of
the state’s reserve surplus be used for the Pension Stabilization Fund of the
Teachers' Retirement Fund. The total amount has yet to be determined.