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IC 5-10.2-4-3.2 — Compensation received in contemplation of retirement

Chapter 4. Retirement and Disability Benefits

1 section change

Bills adding this section

Section text

Sec. 3.2. (a) This section applies to the calculation of the average of the annual compensation under section 3 of this chapter for members who retire after December 31, 2027. (b) For purposes of this section, "compensation received in contemplation of retirement" means compensation that: (1) a member received: (A) during the member's last year of service; and (B) after the member's last year of service; and (2) is greater than one hundred twenty percent (120%) of the compensation the member received during the year immediately before the member's last year of service. (c) For a member who: (1) retires after December 31, 2027; and (2) served in a covered position during the entire year before the member's last year of service; compensation received in contemplation of retirement is excluded from the average of the annual compensation. (d) For purposes of this section, a year must begin on January 1 or July 1 on the same basis as the average of the annual compensation.

As added by P.L.104-2026, SEC.10.

Source: official publisher (2026 edition)