STATEHOUSE (Jan. 29, 2010) - Senate lawmakers gave unanimous support Thursday to State Sen. Vaneta Becker's bill giving police and firefighters more flexibility in designating retirement funds to their estates or beneficiaries.
Becker (R-Evansville), author of the legislation, said Senate Bill 172 gives members of the 1977 Police Officers' and Firefighters' Pension and Disabilities Fund new choices. Members who are not already collecting disability or retirement payments from the plan would now have the options to direct funds to their estates or to designated beneficiaries.
Created in 1977 by the Indiana General Assembly, the plan allows a member to deposit up to 6 percent of their annual salary into the fund, while cities match up to 19.5 percent of the member's salary. Members can use the plan to collect disability or retirement benefits.
Indiana law states if a police officer or firefighter dies while on the job, the money deposited in the 1977 Fund, including interest, is given to a dependant parent, surviving spouse or children. The remaining funds provided by the city stay in the plan to benefit other members.
"In some cases, there are individuals who may only have siblings or close family friends who they would like to receive their funds," Becker said. "Without a dependant parent, spouse or children to accept the funds, the money is absorbed back into the 1977 Fund. SB 172 would allow these individuals the choice to have their money placed into their estates or given to specified beneficiaries."
Becker said motivation for the bill came after an Evansville police officer, diagnosed with terminal cancer, expressed her concern because she couldn't designate a sister, brother or caretaker as a beneficiary.
"She is still an active officer not gathering disability benefits from the plan," Becker said. "After 20 years of paying her fair share into the fund, she wants to decide what happens to her money. However, current state law doesn't give her that choice."
Becker said SB 172 now moves to the House for further consideration.
Audio Clip
Sen. Becker represents Senate District 50, which includes portions of Vanderburgh and Warrick counties.
--30--
« Back to News Release List
Link to this event: