House Bill 1074 and House Bill 1231 were passed by the Indiana House today, in order to assist former public employees who have been retired for an extensive amount of time and have been receiving very small benefits from their retirement fund.
“House Bill 1074 creates a formula for post-retirement benefit adjustments that takes into account a person’s years of service, date of retirement and current annual benefits,” said Niezgodski. “This benefit adjustment then comes in the form of a 13th check which is appropriately distributed to retired public employees.”
The average benefit increase in pension benefits for each retired employee totals about $413 based on the calculated formula. Specifically, the formula is based on several factors – namely, an increase of $10 for each year of service (up to 30 years of service) plus a percentage increase on current annual benefits, based on the date of retirement.
The percentage increase is 3% for those who retired prior to January 1, 1983, 2% for those who retired between January 1, 1983, and December 31, 1994, and 1% for those who retired after December 31, 1994. The maximum available increase under this formula is $1,200 in the form of a thirteenth check.
House Bill 1231 also looks to improve the lives of retired state employees by making cost of living adjustments to their pension funds.
“The goal of these bills is to take care of our retired employees after the many years of dedicated service to the state,” said Niezgodski. “It’s been a long period of time since members have seen their benefits given a boost, in relation to the time since their retirement.”
The bills both move to the Indiana Senate for further action.