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April 15, 2009
Cost of Living Adjustment (COLA) for Indiana’s
Retired Teachers Passes Indiana Senate
H.B. 1498 Passes Senate With
Unanimous Vote of 50 to 0
INDIANAPOLIS – The Executive Director of the Indiana
Retired Teachers Association (IRTA), Andrew Thomas,
announced today that House Bill 1498, which will
provide a cost of living adjustment (COLA) for
Indiana’s retired teachers, passed the Indiana
Senate with a unanimous vote of 50 to 0. Last week,
the bill passed the Senate Appropriations Committee
by a unanimous vote of 11–0 with a new amendment
which provides a “one time payment,” instead of the
one or two percent monthly COLA as in previous
years. Thomas stated, “One reason we supported this
bill was because it provides at least some type of
COLA in a very tough economic environment.”
Under HB 1498, the one time payment, to be received
before October 1, 2009, would be as follows: If a
member’s creditable service is at least 5 years but
less than 10 years, the amount of the check is
$150. If a member’s creditable service is at least
10 years but less than 20 years, the amount of the
check is $275. Those with at least 20 years but
less than 30 years would receive $375. Those with
at least 30 years would receive $450. Senate
Appropriations Chairman Luke Kenley (R-Noblesville)
introduced the amendment because of the poor
economic condition in Indiana.
The original COLA proposal was introduced by
Representative Dennis Avery (D-Evansville) at the
request of the Indiana Retired Teachers Association
(IRTA). When HB 1022 died in the Indiana House, the
COLA language was amended into HB 1498, authored by
Rep. Bill Ruppel (R-N. Manchester). HB 1498 passed
the House Ways and Means Committee on February 19 by
a vote of 21–0.
Representatives David Niezgodski (D-South Bend),
Randy Truitt (R-W. Lafayette) and Terry Goodin
(D-Austin) co-authored the bill. HB 1498 then
passed the Indiana House on February 25 by a vote of
91–0. HB 1498 then passed the Senate Committee on
Pensions and Labor on March 26 by a vote of 9–2
with Senate sponsors Senators Dennis Kruse
(R-Auburn), Karen Tallian (D-Portage), Randy Head
(R-Logansport), and Gary Dillon (R-Pierceton).
AARP Associate State Director Paul Chase also
testified at the committee hearing in favor of the
bill. H.B. 1498 now goes to the Indiana House for a
concurrence vote before going to Governor Mitch
Daniels for his signature. The last day for the
2009 General Assembly is April 29, 2009.
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