§ 36-8-6-5 — Insufficient funds; payment of deficiency by municipality; tax levy

(a) If the local board determines that the total
amount of money available for a year will be insufficient to pay the
benefits, pensions, and retirement allowances the local board is
obligated to pay under this chapter, the local board shall, before the
date on which the budget of the municipality is adopted, prepare an
itemized estimate in the form prescribed by the state board of accounts
of the amount of money that will be receipted into and disbursed from
the 1925 fund during the next fiscal year. The estimated receipts
consist of the items enumerated in section 4(a) of this chapter. The
estimated disbursements consist of an estimate of the amount of money
that will be needed by the local board during the next fiscal year to
defray the expenses and obligations incurred and that will be incurred
by the local board in making the payments prescribed by this chapter
to retired members, to members who are eligible to and expect to retire
during the ensuing fiscal year, and to the dependents of deceased
members.
(b) The local board may provide in its annual budget and pay all
necessary expenses of operating the 1925 fund, including the payment
of all costs of litigation and attorney fees arising in connection with the
fund, as well as the payment of benefits and pensions, including the
payments described in section 5.5 of this chapter. Notwithstanding any
other law, neither the municipal legislative body nor the department of
local government finance may reduce an item of expenditure.
(c) At the time when the estimates are prepared and submitted, the
local board shall also prepare and submit a certified statement showing:
(1) the name, age, and date of retirement of each retired member
and the monthly and yearly amount of the payment to which the
retired member is entitled;
(2) the name and age of each member who is eligible to and
expects to retire during the next fiscal year, the date on which the
member expects to retire, and the monthly and yearly amount of
the payment that the member will be entitled to receive; and
(3) the name and age of each dependent, the date on which the
dependent became a dependent, the date on which the dependent
will cease to be a dependent by reason of attaining the age at
which dependents cease to be dependents, and the monthly and
yearly amount of the payment to which the dependent is entitled.
(d) The total receipts shall be deducted from the total expenditures
stated in the itemized estimate and the amount of the excess of the
estimated expenditures over the estimated receipts shall be paid by the
municipality in the same manner as other expenses of the municipality
are paid. A tax levy shall be made annually for this purpose, as
provided in subsection (e). The estimates submitted shall be prepared
and filed in the same manner and form and at the same time that
estimates of other municipal offices and departments are prepared and
filed.
(e) The municipal legislative body shall levy an annual tax in the
amount and at the rate that are necessary to produce the revenue to pay
that part of the police pensions that the municipality is obligated to pay.
All money derived from the levy is for the exclusive use of the police
pensions and benefits, including the payments described in section 5.5
of this chapter. The amounts in the estimated disbursements, if found
to be correct and in conformity with the data submitted in the certified
statement, are a binding obligation upon the municipality. The
legislative body shall make a levy for them that will yield an amount
equal to the estimated disbursements, less the amount of the estimated
receipts. Notwithstanding any other law, the department of local
government finance may not reduce the levy.
[Pre-Local Government Recodification Citation: 19-1-24-2
part.]
As added by Acts 1981, P.L.309, SEC.55. Amended by
P.L.90-2002, SEC.487; P.L.224-2007, SEC.123; P.L.146-2008,
SEC.776; P.L.182-2009(ss), SEC.427; P.L.257-2019,
SEC.148.