Types of Benefits
The 1977 Fund offers three main types of benefits:
- Retirement Benefits: Regular pension payments based on your Master Firefighter rank salary.
- Survivor Benefits: Benefits for your family or dependents if you pass away.
- Disability Benefits: Benefits if you become disabled while on the job.
Retirement Benefits Based on Master Firefighter Rank
Your retirement benefits are calculated based on your pension base. At Portage fire our “Master Firefighter rank salary,” is our pension base. It is the highest non-promoted salary you earn plus any longevity increases. This salary is certified annually and varies by employer.
Retirement Eligibility
You can retire with full benefits at age 52 if you have at least 20 years of service. If you’re at least 50, you can still retire, but with reduced benefits. For each additional year of service the retiree will gain 2% of additional benefits for up to 32 years of service.
Death Benefits
Beneficiaries
If you die without receiving any retirement or disability benefits, your member contributions plus interest are paid to your designated beneficiary. If you haven’t designated a beneficiary, the amount will be paid to your estate.
Lump Sum Death Benefit
Your designated beneficiary or estate will receive a one-time death benefit of $12,000 upon your death, unless you are an inactive, non-vested member. This benefit is always taxable.
Survivor Benefits for Different Member Types
- Inactive Members (Not Vested): If you die as an inactive member with less than 20 years of active service, no survivor benefit is payable. Your contributions plus interest are payable to your designated beneficiary or estate.
- Active, Vested Inactive, and Retired Members: If you die as an active member, or after ending employment with at least 20 years of service but haven’t started receiving benefits, the following will apply:
- Your surviving spouse will receive a lifetime monthly benefit equal to 70% of your monthly benefit. This benefit remains even if your spouse remarries.
- Each surviving child will receive a monthly benefit equal to 20% of your monthly benefit until they turn 18, or 23 if they are enrolled in school.
- If an eligible child has a disability, they are entitled to 30% of the monthly pay of a Master Firefighter or 55% of the monthly benefit you were receiving at the time of your death, whichever is greater.
Special Benefits for Line-of-Duty Deaths
The 1977 Fund offers enhanced benefits for firefighters who die in the line of duty. These benefits are designed to provide additional financial security for the families of those who make the ultimate sacrifice.
One-Time Special Death Benefit
If you die in the line of duty on or after July 1, 2020, a special one-time death benefit of $225,000 will be paid to your surviving spouse. If you’re not married at the time of your death, this benefit will go to your surviving children. If neither a spouse nor children survive you, the benefit will be equally divided among your surviving parents.
Monthly Survivor Benefits for Line-of-Duty Deaths
- Surviving Spouse: Your spouse will receive a lifetime monthly benefit equal to 100% of your monthly benefit. This benefit will continue even if your spouse remarries.
- Surviving Children: Each child will receive a monthly benefit equal to 20% of your monthly benefit until they turn 18, or 23 if they are enrolled in school.
- Disabled Children: If an eligible child has a disability, they will receive a monthly benefit equal to 30% of the monthly pay of a Master Firefighter or 55% of the monthly benefit you were receiving at the time of your death, whichever is greater. This benefit will continue as long as the disability persists.
- Surviving Parents: If you don’t have a surviving spouse or eligible child, your surviving parents may be entitled to 50% of your benefit for life, provided they were claimed as dependents on your federal income tax return the year prior to your death. The benefit will be equally divided if both parents are alive.
Retirement Benefit Calculation
Your retirement benefit will be calculated as if you were receiving benefits at age 52 with 20 years of service credit. If you have more than 20 years of service, your benefit will increase by 1% for each additional 6 months of service.
Cost of Living Adjustments (COLA) in the 1977 Fund
The 1977 Fund offers Cost of Living Adjustments (COLA) to ensure that your retirement benefits keep pace with inflation. This is an essential feature that helps maintain your purchasing power during retirement.
How COLA is Calculated
The COLA is based on the Consumer Price Index (CPI), specifically the United States city average as prepared by the United States Department of Labor. Every year on July 1, the monthly retirement benefits for both members and survivors are adjusted. This adjustment is based on the average CPI for the months of January, February, and March, compared to the same months in the previous year.
When Does COLA Start?
By law, the COLA increase for a 1977 Fund member or survivor starts in July of the year following the calendar year when the first monthly benefit was received. For example, if you start receiving benefits in any month of 2023, your first COLA adjustment would be in July 2024.
The Indiana 1977 Fund offers a robust retirement package for firefighters, providing a defined benefit plan based on years of service and the salary of a Master Firefighter. With a mandatory retirement age of 70, the fund offers various types of benefits including retirement, survivor, and disability benefits. Members become vested after 20 years of active service and can start receiving full benefits at age 52. The fund also includes Cost of Living Adjustments (COLA) to help keep pace with inflation, as well as special provisions for line-of-duty deaths to support families. It’s a comprehensive plan designed to offer financial security to Indiana’s firefighters and their loved ones.