Bill to give Indiana public retirees extra funds passes House committee

A bill that would give many retirees in Indiana’s public pension program a “13th check” as part of their benefits cleared its first hurdle in the state’s General Assembly.

The House Committee on Employment, Labor and Pensions unanimously passed House Bill 1028. The bill, sponsored by state Rep. Bob Cherry, R-Greenfield, would give retirees an additional payment this year and next.

The bill’s purpose is to help retirees cope with inflation rates that have led to rising costs on many products and services.

“Public employees, from teachers to conservation officers, are critical to making the state of Indiana run smoothly and efficiently,” Cherry said. “The costs of everyday goods and services continue to increase, and this additional money will help those retirees who dedicated their careers to serving Hoosiers.”

The bill would also give pension recipients an extra $50 in their monthly checks.

Those eligible for the additional payment include teachers, public employees, state excise police, gaming agents, gaming control officers, conservation officers and state police officers. The amount of the extra check would vary based on their years vested in the state pension program. Those between five and 10 years of service would receive $150, and those between 10 and 20 years vested would receive a $275 check.

Retirees with 20 to 30 years vested would get $375, and those with 30 or more would receive $450.

According to a fiscal note attached to the bill, the additional pension benefits would cost the state about $37.8 million in fiscal year 2024 and $38.2 million the following year. In addition, the plan would cost local governments and agencies $29 million in 2024 and $29.9 million in 2025.

The money to pay for the extra check is expected to come from the state’s general fund and the pension plans.

Nearly 89,000 retirees would be eligible for the 13th check. Most of those individuals would also qualify for the $50 boost to their regular pension checks.

Cherry’s bill now heads to the House Ways and Means Committee.