Introduced Version






SENATE BILL No. 233

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 21-6.1-2-2.

Synopsis: Liability for employer contributions to TRF. Provides that liability for employer contributions for service credit earned by a member of the state teachers' retirement fund (TRF) who, before July 1, 1995, participated in the pre-1996 account and who, after June 30, 1995, and before July 1, 2001, transferred to the 1996 account is transferred to the 1996 account and remains with the 1996 account after June 30, 2001, even if the member, after June 30, 2001, is hired by another school corporation or institution covered by TRF or rehired by a prior employer. Provides that: (1) a member of TRF who, before July 1, 1995, participated in the pre-1996 account and who, after June 30, 2001, was hired by another school corporation or institution covered by TRF maintains membership in the pre-1996 account; and (2) liability for the employer contributions of the member remains with the pre-1996 fund.

Effective: July 1, 2002.





Meeks R




    January 7, 2002, read first time and referred to Committee on Pensions and Labor.







Introduced

Second Regular Session 112th General Assembly (2002)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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SENATE BILL No. 233



    A BILL FOR AN ACT to amend the Indiana Code concerning pensions.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 21-6.1-2-2 , AS AMENDED BY P.L.291-2001, SECTION 126, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 2. (a) The board shall segregate the fund into the following accounts:
        (1) The pre-1996 account.
        (2) The 1996 account.
    (b) The board shall segregate each of the accounts established under subsection (a) into the following subaccounts:
        (1) The annuity savings account.
        (2) The retirement allowance account.
    (c) Except as provided in subsection (d), member contributions shall be credited to the annuity savings accounts within the pre-1996 account.
    (d) Member contributions made after June 30, 1995, with respect to the following members shall be credited to the annuity savings account within the 1996 account:
        (1) A member who was first hired after June 30, 1995, by a

school corporation or other institution covered by the fund.
        (2) A member who:
            (A) before July 1, 1995, served in a position covered by the fund; and
            (B) after June 30, 1995, and before July 1, 2001, was hired by another school corporation or institution covered by the fund or rehired by a prior employer.
        (3) A member described in subdivision (2) who, after June 30, 2001, is hired by another school corporation or institution covered by the fund or rehired by a prior employer.
    (e) Member contributions made to the pre-1996 account with respect to a member covered by subsection (d) shall be transferred to the annuity savings account within the 1996 account.
    (f) Employer contributions made after June 30, 1995, with respect to members described in subsection (d) shall be credited to the retirement allowance account within the 1996 account. Employer contributions made after June 30, 1995, with respect to all other members shall be credited to the retirement allowance account within the pre-1996 account.
    (g) Employer contributions, if any (as determined by the board), made to the pre-1996 account with respect to a member covered by subsection (d) shall be transferred to the retirement allowance account within the 1996 account.
     (h) For a member described in subsection (d)(2), the liability for employer contributions based on service credit earned before the member's hiring or rehiring referred to in subsection (d)(2)(B) shall be transferred to the 1996 account and shall remain with the 1996 account even if, after June 30, 2001, the member is hired by another school corporation or institution covered by the fund or rehired by a prior employer.
    (h) (i) The board shall administer these accounts and subaccounts as specified in IC 5-10.2-2.