Bill > HB1314

This bill modifies the Deferred Retirement Option Plan (DROP) for members of specific police and firefighters' pension funds in Indiana, allowing more flexibility in retirement planning. Specifically, the bill changes the previous rule that members could only enter the DROP once in their lifetime, now permitting members to withdraw from the DROP and re-enter it a second time, but only after waiting at least three years from their initial withdrawal. The bill extends the maximum DROP participation period from 36 to 60 months for members who enter the DROP after June 30, 2024, and provides that when a member re-enters the DROP, their new entry and retirement dates will be based on their most recent election. Additionally, the bill clarifies that a member can voluntarily withdraw from the DROP before their planned retirement date, with the caveat that they can only re-enter the program once and must wait at least three years before doing so. These changes aim to provide more options for public safety employees nearing retirement, allowing them greater control over their retirement timing and potential continued employment.

Labor and Employment

https://iga.in.gov/legislative/2025/bills/house/1314/details