KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

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HB1300 • 2026

A BILL FOR AN ACT to amend the Indiana Code concerning pensions.

A BILL FOR AN ACT to amend the Indiana Code concerning pensions.

Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Vernon Smith
Last action
2026-01-06
Official status
Introduced House Bill (H)
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on the consequences of reaching the limit for joining DROP.

Indiana Pension Changes

This bill allows members of certain police and firefighter pension funds to leave the Deferred Retirement Option Plan (DROP) and rejoin it later, with restrictions.

What This Bill Does

  • Allows members of specific police and firefighter pension funds to withdraw from DROP and re-enter it after at least three years have passed.
  • Limits each person to joining DROP only twice in their career.

Who It Names or Affects

  • Members of the 1925 police pension fund, 1937 firefighters' pension fund, 1953 police pension fund (Indianapolis), and 1977 police officers' and firefighters' pension and disability fund.

Terms To Know

Deferred Retirement Option Plan (DROP)
A special retirement plan that lets workers keep their jobs while also getting some of their pension benefits early.

Limits and Unknowns

  • The bill does not specify what happens if someone reaches the limit on joining DROP.
  • It is unclear how many people will be affected by this change in Indiana's pension rules.

Bill History

  1. 2026-01-06 House

    Authored by Representative Smith V

  2. 2026-01-06 House

    First reading: referred to Committee on Employment, Labor and Pensions

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning pensions.
Deferred retirement option plan.

Current Bill Text

Read the full stored bill text 
A BILL FOR AN ACT to amend the Indiana Code concerning pensions.

Deferred retirement option plan.

Allows a member of the 1925 police pension fund, 1937 firefighters' pension fund, 1953 police pension fund (Indianapolis), or 1977 police officers' and firefighters' pension and disability fund to withdraw from the deferred retirement option plan (DROP) and make an election to enter the DROP for a second time not earlier than three years after the date the member withdraws from the DROP. Provides that a member may make an election to enter the DROP only twice in the member's lifetime.