Thatcher v. City of Kokomo, 2012 Ind. LEXIS 21

Thatcher, a Kokomo police officer since 1980, sustained a line‑of‑duty knee injury and began paid sick leave, then entered PERF disability benefits via the 1977 Fund.
Disability claim denial by the State Pension Board in 1984 led to extended unpaid leave and impending termination proceedings by city authorities.
Disability benefits were granted in 1985, and Thatcher was later terminated from medical leave and placed on disability pension status.
In 2008–2009, Thatcher sought reinstatement; the local pension board found him rehabilitated, but no suitable position was available, and PERF recommended no duties due to limits.
In 2009–2010, federal claims were certified to Indiana Supreme Court to resolve interpretations of I.C. 36-8-4-7(a) (reappointment) and I.C. 36-8-8-12(e) (service for retirement).
The Court analyzes the Reappointment Statute (36-8-4-7) and whether disability‑time counts toward “years of service” for eligibility, interpreting the 1977 Fund Chapter and related regulations.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Does I.C. 36-8-4-7(a) apply to a recovered 1977 Fund member seeking reinstatement?	Thatcher argues exemption from 36-8-4-7(a) applies due to not being a new applicant.	City/Kokomo contend Thatcher remains within reappointment framework.	Yes, applies to recovered members seeking reappointment.
Does time spent on disability benefits count toward years of service under 36-8-4-7(a)?	Disability time should count as service for eligibility.	Disability time is not counted for eligibility under 36-8-4-7(a).	No, disability time does not count toward years of service for 36-8-4-7(a).

Livingston v. Fast Cash USA, Inc., 753 N.E.2d 572 (Ind. 2001) (statutory ambiguity and construction principles)
Basileh v. Alghusain, 912 N.E.2d 814 (Ind. 2009) (statutory interpretation; clear language governs)
Corr v. Am. Family Ins., 767 N.E.2d 535 (Ind. 2002) (interpretation cannot render language surplusage)