Bill > SB0406

This bill modifies the existing law governing the 1977 police officers' and firefighters' pension and disability fund by increasing the maximum annual cost of living adjustment (COLA) from 3% to 5%. Currently, the system board calculates the cost of living adjustment based on changes in the consumer price index by comparing the arithmetic mean of the consumer price index for January, February, and March. If there is an increase, the percentage is rounded to the nearest 0.1%, and fund members' or survivors' monthly benefits are increased proportionally beginning in July, but only after the first year of benefit payments. The bill specifically changes the maximum percentage cap from 3% to 5%, allowing for a potentially higher annual adjustment to help pensioners keep pace with inflation. The change will take effect on July 1, 2025, and provides a modest but meaningful increase in financial protection for retired police officers and firefighters.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/senate/406/details