Citations Affected:
IC 33-4-7-12
; IC 33-13.
Synopsis: Judges' pensions. Provides that a person serving as a
full-time magistrate on July 1, 2001, may make an election to become
a member of the judges' 1985 benefit system, effective January 1, 2002.
Provides that a person who begins serving as a full-time magistrate
after July 1, 2001, shall be a participant in the judges' 1985 benefit
system, effective January 1, 2002. Allows full-time magistrates who are
participants in the 1985 benefit system of the judges' retirement fund
to purchase service credit at full actuarial cost for prior service as a
full-time commissioner, magistrate, or referee, or for prior service in
PERF covered positions other than full-time commissioner, magistrate,
or referee. Requires the monthly benefits payable to participants,
survivors, and beneficiaries under the 1985 benefit system of the
judges' retirement fund to be increased by the same percentages and
under the same conditions as monthly benefits are increased for
members of PERF. (The introduced version of this bill was prepared by
the pension management oversight commission.)
Effective: July 1, 2001; January 1, 2002.
January 9, 2001, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 2. The following
words and phrases as used in this chapter, unless different meanings
are plainly indicated by their context, shall have the following
respective meanings:
"Americans with Disabilities Act" refers to the Americans with
Disabilities Act (42 U.S.C. 12101 et seq.) and any amendments and
regulations related to the Act.
"His" and "widow" means "her" and "widower" in the event the
participant is a woman.
"Fund" means the Indiana judges' retirement fund, the fund created
by this chapter.
"Board" means the board of trustees of the public employees'
retirement fund.
"Employer" means the state of Indiana.
"Judge" means any person who has served, is serving, or shall serve
as a regular judge of any of the following courts:
Supreme court of the state of Indiana.
Court of appeals of the state of Indiana.
Circuit court of any judicial circuit.
Superior court of any county or counties.
Criminal court of any county having a separate criminal court.
Probate court of any county having a separate probate court.
Juvenile court of any county having a separate juvenile court.
Municipal court of any county.
County court of any county or counties.
"Participant" means any judge participating in the fund, or for
purposes of
IC 33-13-10.1
, any judge or full-time magistrate
participating in the fund.
"Services" means the period beginning on the first day upon which
any person first became a judge, whether such date is prior or
subsequent to March 11, 1953, and ending on the date under
consideration, including all intervening employment as a judge,
following resignation or expiration of any term of election or
appointment. Services in any fraction of a month shall be considered
as a month of service. However, no more than one (1) month shall be
credited for services in any one (1) calendar month. If a judge is elected
or appointed and serves one (1) or more terms or part of a term, then
retires from office, but at a later period, or periods, is appointed or
elected and serves as judge, the judge shall pay into said fund during
all the periods served as judge, except as otherwise provided in this
chapter, whether said periods be a connected period or disconnected
period, but shall not be required to pay into said fund at any time when
the judge is not serving as judge, or during any period of service as a
senior judge under
IC 33-4-8
, except as otherwise provided in this
chapter.
"Fiscal year" means the period beginning on July 1, in any year, and
ending on June 30 of the succeeding year.
"Salary" means the total salary paid to any participant by the state
of Indiana and by a county or counties, determined without regard to
any salary reduction agreement established under Section 125 of the
Internal Revenue Code.
system under section 1 or 3 of this chapter, credit for prior service by
the judge or full-time magistrate as a full-time referee, full-time
commissioner, or full-time magistrate shall be granted under this
chapter by the board if:
(1) the prior service was credited under the public employees'
retirement fund;
(2) the state contributes to the judges' 1985 benefit system the
amount the board determines necessary to amortize the prior
service liability over a period determined by the board, but not
more than ten (10) years; and
(3) the judge or full-time magistrate pays in a lump sum or in a
series of payments determined by the board, not exceeding five
(5) annual payments, the amount the judge or full-time
magistrate would have contributed if the judge or full-time
magistrate had been a member of the judges' 1985 benefit system
during the prior service.
(c) If the requirements of subsection (b)(2) and (b)(3) are not
satisfied, a participant is entitled to credit only for years of service after
the date of participation in the 1985 benefit system.
(d) An amortization schedule for contributions paid under
subsection (b)(2) or (b)(3) must include interest at a rate determined by
the board.
(e) The following provisions apply to a person described in
subsection (a):
(1) A minimum benefit applies to participants receiving credit in
the judges' 1985 benefit system from service covered by the
public employees' retirement fund. The minimum benefit is
payable at sixty-five (65) years of age or when the participant is
at least fifty-five (55) years of age and meets the requirements
under section 6(2)(B) of this chapter and equals the actuarial
equivalent of the vested retirement benefit that is:
(A) payable to the member at normal retirement under
IC 5-10.2-4-1
as of the day before the transfer; and
(B) based solely on:
(i) creditable service;
(ii) the average of the annual compensation; and
(iii) the amount credited under IC 5-10.2 and IC 5-10.3 to
the annuity savings account of the transferring member as of
the day before the transfer.
(2) If the requirements of subsection (b)(2) and (b)(3) are
satisfied, the board shall transfer from the public employees'
retirement fund to the judges' 1985 benefit system the amount
credited to the annuity savings account and the present value of
the retirement benefit payable at sixty-five (65) years of age or at
least fifty-five (55) years of age under section 6(2)(B) of this
chapter that is attributable to the transferring participant.
(3) The amount the state and the participant must contribute to the
judges' 1985 benefit system under subsection (b) shall be reduced
by the amount transferred to the judges' 1985 benefit system by
the board under subdivision (2).
(4) If the requirements of subsection (b)(2) and (b)(3) are
satisfied, credit for prior service in the public employees'
retirement fund as a full-time referee, full-time commissioner, or
full-time magistrate is waived. Any credit for the prior service
under the judges' 1985 benefit system may be granted only under
subsection (b).
participation in the 1985 benefit system.
(d) An amortization schedule for contributions paid under this
section must include interest at a rate determined by the board.
(e) If the requirements of subsection (b) are satisfied, the
appropriate board shall transfer from the retirement fund described in
subsection (a)(2) to the judges' 1985 benefit system the amount
credited to the judge's annuity savings account and the present value of
the retirement benefit payable at sixty-five (65) years of age that is
attributable to the transferring participant.
(f) The amount a participant must contribute to the judges' 1985
benefit system under subsection (b) shall be reduced by the amount
transferred to the judges' 1985 benefit system by the board under
subsection (e).
(g) If the requirements of subsection (b) are satisfied, credit for prior
service in an Indiana public employees' retirement fund is waived.