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.





Reske




    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 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.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts 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 pensions.

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

SOURCE: IC 5-10.3-3-8; (03)HB1445.2.1. -->     SECTION 1. IC 5-10.3-3-8 , 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 IC 4-22-2.
        (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 companies.
        (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 IC 36-8-8-17.2.
         (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 representation.
        (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. -->     SECTION 2. IC 36-8-8-17 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 chapter, 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

plan.

SOURCE: IC 36-8-8-17.2; (03)HB1445.2.3. -->     SECTION 3. IC 36-8-8-17.2 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 subsection (c).
    (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 board.
        (2) A pledge or contribution to a charitable or nonprofit organization.
        (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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