February 28, 2003
HOUSE BILL No. 1445
DIGEST OF HB 1445
(Updated February 27, 2003 8:40 AM - DI 51)
Citations Affected: IC 5-10.3; IC 36-8.
Synopsis: Deductions from 1977 fund benefits. Permits the public
employees' retirement fund board to make deductions for certain
purposes from a disability, retirement, or survivor benefit paid by the
1977 police officers' and firefighters' pension and disability fund if the
deduction is authorized by the person receiving the benefit.
Effective: July 1, 2003.
January 14, 2003, read first time and referred to Committee on Labor and Employment.
February 17, 2003, reported _ Do Pass. Recommitted to Committee on Ways and Means.
February 27, 2003, reported _ Do Pass.
February 28, 2003
First Regular Session 113th General Assembly (2003)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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will appear in that style type in the introductory clause of each SECTION that adds
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between statutes enacted by the 2002 Regular or Special Session of the General Assembly.
HOUSE BILL No. 1445
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 5-10.3-3-8; (03)HB1445.2.1. -->
, AS AMENDED BY P.L.61-2002,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 8. (a) The board may do any of the following:
(1) Establish and amend rules and regulations:
(A) for the administration and regulation of the fund and the
board's affairs; and
(B) to effectuate the powers and purposes of the board;
without adopting a rule under
(2) Make contracts and sue and be sued as the board of trustees of
the public employees' retirement fund of Indiana.
(3) Delegate duties to its employees.
(4) Enter into agreements with one (1) or more insurance
companies to provide life, hospitalization, surgical, medical,
dental, vision, long term care, or supplemental Medicare
insurance, utilizing individual or group insurance policies for
retired members of the fund, and, upon authorization of the
respective member, deduct premium payments for such policies
from the members' retirement benefits and remit the payments to
the insurance companies.
(5) Enter into agreements with one (1) or more insurance
companies to provide annuities for retired members of the fund,
and, upon a member's authorization, transfer the amount credited
to the member in the annuity savings account to the insurance
(6) For the 1977 police officers' and firefighters' pension and
disability fund, deduct from benefits paid and remit to the
appropriate entities amounts authorized by
(7) Whenever the fund's membership is sufficiently large for
actuarial valuation, establish an employer's contribution rate for
all employers, including employers with special benefit provisions
for certain employees.
(7) (8) Amortize prior service liability over a period of forty (40)
years or less.
(8) (9) Recover payments made under false or fraudulent
(9) (10) Exercise all powers necessary, convenient, or appropriate
to carry out and effectuate its public and corporate purposes and
to conduct its business.
(b) An agreement under subsection (a)(4) may be for a duration of
three (3) years.
(c) This subsection does not apply to investments of the board. A
contract under subsection (a)(2) may be for a term of not more than
five (5) years, with an ability to renew thereafter.
(d) The board's powers and the fund's powers specified in this
chapter shall be interpreted broadly to effectuate the purposes of this
chapter and may not be construed as a limitation of powers.
SOURCE: IC 36-8-8-17; (03)HB1445.2.2. -->
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 17. (a) The benefits of
this chapter are exempt from attachment and garnishment and may not
be seized, taken, or levied upon by any execution or process.
(b) Except as provided in subsection (c) and section 17.2 of this
a person receiving a benefit under this chapter may not
transfer, assign, or sell the benefit.
(c) Notwithstanding any other provision of this chapter, to the extent
required by Internal Revenue Code Section 401(a)(31), as added by the
Unemployment Compensation Amendments of 1992 (P.L.102-318),
and any amendments and regulations related to Section 401(a)(31), the
1977 fund shall allow participants and qualified beneficiaries to elect
a direct rollover of eligible distributions to another eligible retirement
SOURCE: IC 36-8-8-17.2; (03)HB1445.2.3. -->
IS ADDED TO THE INDIANA CODE
AS A NEW
SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]: Sec. 17.2. (a) Notwithstanding any other provision of this
chapter, a person receiving a disability, retirement, or survivor
monthly benefit under this chapter may authorize the PERF board
to make a deduction from the benefit.
(b) An authorization for a deduction from a disability,
retirement, or survivor monthly benefit paid under this chapter is
valid only if all the following requirements are met:
(1) The authorization is:
(A) in writing;
(B) signed personally by the person receiving the benefit;
(C) revocable at any time by the person receiving the
benefit upon written notice to the PERF board; and
(D) agreed to in writing by the PERF board.
(2) An executed copy of the authorization is delivered to the
PERF board within ten (10) days after its execution.
(3) The deduction is made for a purpose described in
(c) A deduction under this section may be made for the purpose
of paying any of the following:
(1) A premium on a policy of insurance for medical, surgical,
hospitalization, dental, vision, long term care, or Medicare
supplement coverage offered to retired fund members by the
fund member's former employer, the state, or the PERF
(2) A pledge or contribution to a charitable or nonprofit
(3) Dues payable by the person receiving the benefit to a labor
organization of which the person is a member.
HB 1445_LS 7241/DI 44
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