HB 1193-1_ Filed 03/22/2001, 10:38

COMMITTEE REPORT




MR. PRESIDENT:

    The Senate Committee on Pensions and Labor, to which was referred House Bill No. 1193, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows:

SOURCE: Page 2, line 2; (01)AM119302.2. -->     Page 2, line 2, strike " made for that purpose." and insert " the budget agency determines are available for any such purposes. The deferred compensation committee may use funds available under the plan to hire or contract with qualified attorneys, financial advisers, or other professional or administrative persons that the committee believes are necessary or useful in the administration of the plan.".
    Page 2, between lines 13 and 14, begin a new paragraph and insert:
    " (g) The state board of finance shall extend the plan established under subsection (a) to any political subdivision that also elects to use the state employees' deferred compensation plan for its employees as authorized in section 7(b)(2) of this chapter.
SOURCE: IC 5-10-1.1-4; (01)AM119302.2. -->     SECTION 2. IC 5-10-1.1-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 4. (a) The deferred compensation committee is established. The committee consists of five (5) persons appointed by the state board of finance as follows:
        (1) Each member of the state board of finance shall appoint one (1) member to the committee.
        (2) The remaining two (2) members:
            (A) must be participants in the state employees' deferred compensation plan;
            (B) may not be employees of the members of the state board of finance; and
            (C) must be from different political parties; and
            (D) may not serve for more than two (2) consecutive three (3) year terms.

    (b) The deferred compensation committee may annually elect a chairperson and a secretary.
     (c) The deferred compensation committee may approve proposed funding offerings investment products for the state employees' deferred compensation plan.
    (c) (d) All amounts deferred under the state employees' deferred compensation plan must be put into a trust for the exclusive benefit of plan participants, as required by Section 457(g) of the Internal Revenue Code. The deferred compensation committee is the trustee of the trust.
    (d) (e) The plan shall include appropriate provisions pertaining to its day to day operation providing for methods of electing to defer income, methods of changing the amount of income to be deferred, and such other provisions as may be appropriate. Notwithstanding IC 22-2-6-2 , the plan may also include provisions for the use of automated voice response units and telephonic communications, on-line activities, and other technology for participant elections, directions, and services if the technology has sufficient capacity to record and store the elections and directions.
    (e) (f) The plan shall provide for the preparation and distribution, from time to time to all eligible employees, of pamphlets describing the plan and outlining the opportunities available to employees under the plan.
    (f) (g) The state board of finance shall extend the plan to any political subdivision which elects to utilize the state employees' deferred compensation plan for its employees as authorized in section 7(b)(2) of this chapter.
    (g) (h) At least annually, the deferred compensation committee shall report to the state board of finance on the status of the state employees' deferred compensation plan, including any changes to the plan.
SOURCE: IC 5-10-1.1-7.3; (01)AM119302.3. -->     SECTION 3. IC 5-10-1.1-7.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 7.3. (a) Any political subdivision (as defined in IC 36-1-2-13 ) that elects to use the state employees' deferred compensation plan for its employees as authorized in section 7(b)(2) of this chapter also may elect to participate in the state's defined contribution plan established by section 1.5 of this chapter for the purpose of matching all or a specified portion of the

political subdivision's employees' contributions to the deferred compensation plan.
    (b) Participation in the state's defined contribution plan described in subsection (a) shall be authorized by the governing body of the political subdivision, which in the case of a unit subject to IC 36-1-3 shall be done by ordinance.
    (c) Contributions by a political subdivision to the state's defined contribution plan described in subsection (a) for the purpose of matching all or a specified portion of employee contributions are limited to the amount of appropriations made each year for that purpose.
    (d) The political subdivision is obligated at any particular time only for the current market value of the funding previously made to the state's defined contribution plan described in subsection (a).
    (e) This section does not limit the power or authority of any political subdivision to establish and administer any other plans considered appropriate by the governing body of the political subdivision, including plans established under section 1(2) of this chapter.
".

SOURCE: Page 2, line 22; (01)AM119302.2. -->     Page 2, between lines 22 and 23, begin a new line block indented and insert:
        " (3) State elected officials and their office staff.
        (4) The legislative services agency.
        (5) Legislative staff eligible to participate in the state employees' deferred compensation plan established by section 1 of this chapter.
".
    Page 3, line 11, delete "seventy-five" and insert " sixty".
    Page 3, line 11, delete "(75%)" and insert " (60%)".
    Page 3, line 12, delete "employee's retirement date." and insert " date the leave is converted.".
    Page 4, line 2, delete "IC 5-10-1.1-7.5(g)" and insert " IC 5-10-1.1-7.5(b)".

    Page 4, line 6, delete "IC 5-10-1.1-7.5(g)" and insert " IC 5-10-1.1-7.5(b)".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1193 as printed February 20, 2001.)

and when so amended that said bill be reassigned to the Senate Committee on Finance.

Committee Vote: Yeas 9, Nays 0.

____________________________________

Senator Harrison, Chairperson


AM 119302/DI 73    2001