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

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.