Indiana pension plans pay eligible retirees one-time checks

The reserve accounts must pay a one-time amount to eligible members or their survivors or beneficiaries. This covers members of the Indiana teachers’, public employees’, and specified state enforcement officers’ retirement plans, or their survivors or beneficiaries. The member must have retired or become disabled on or before December 1, 2025, and be entitled to a monthly benefit on July 1, 2026. At least five years of creditable service is required. The payment does not increase the monthly pension. If more than one survivor or beneficiary qualifies, they share the amount according to the percentages used for the monthly benefit. The reserve accounts must pay by October 1, 2026. These sections take effect July 1, 2026, and expire January 1, 2028.

The trustee must pay a one-time amount from the trust fund to each eligible state police pension recipient. This covers recipients in the state police pre-1987 and 1987 benefit systems who retired or became disabled before July 2, 2025, and were entitled to a monthly benefit on September 1, 2026. The payment equals 1% of the specified maximum basic annual pension amount for a trooper with the required service. It does not increase the recipient’s monthly pension. The law takes effect July 1, 2026, and requires payment by October 1, 2026. These sections expire January 1, 2028.

A participant may choose a joint-and-survivor payment option instead of the standard retirement allowance. This applies to participants in the specified Indiana state enforcement officers’ retirement plan who retire after June 30, 2026. The participant receives lower payments during life. The named beneficiary may receive the full reduced amount, two-thirds, or one-half after the participant dies, as the participant chooses. If the beneficiary dies before the participant retires, the choice is canceled, and the participant may name a new beneficiary. If the participant dies before retirement, the beneficiary may receive survivor benefits only if eligible under the plan’s survivor-benefit rules. The option takes effect July 1, 2026, and applies to participants who retire after June 30, 2026.