Introduced Version






SENATE BILL No. 140

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 21-6.1-2.

Synopsis: TRF fund membership and contributions. Requires the board of trustees of the teachers' retirement fund (TRF) to assign certain members to TRF's pre-1996 and 1996 accounts. Specifies the member and employer contributions the TRF board must credit to the pre-1996 and the 1996 accounts. Requires participants in the pre-1996 account who, after June 30, 1995, were hired by another school corporation or institution covered by TRF (or rehired by a prior employer) to become participants in the 1996 account, but provides that: (1) the member's contributions to the pre-1996 annuity savings account; (2) employer contributions, if any, to the pre-1996 retirement allowance account; and (3) liability for employer contributions based on service credit earned; before the member was hired by another school corporation or institution covered by TRF (or rehired by a prior employer) remain in the pre-1996 account.

Effective: July 1, 2003.





Kenley




    January 7, 2003, read first time and referred to Committee on Pensions and Labor.







Introduced

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.
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SENATE BILL No. 140



    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 21-6.1-2-1.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 1.5. (a) The board shall assign to the pre-1996 account described in section 2(a)(1) of this chapter fund members who were first hired before July 1, 1995, by a school corporation or other institution covered by the fund.
    (b) The board shall assign the following fund members to the 1996 account described in section 2(a)(2) of this chapter:
        (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, was hired by another school corporation or institution covered by the fund or rehired by a prior employer.

    SECTION 2. IC 21-6.1-2-2 , AS AMENDED BY P.L.291-2001,

SECTION 126, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: 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 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.
     (c) The board shall credit member contributions to the annuity savings accounts within the pre-1996 account as follows:
        (1) Contributions of members assigned to the pre-1996

account under section 1.5(a) of this chapter.
        (2) Contributions made by members assigned to the 1996 account under section 1.5(b)(2) before the date, after June 30, 1995, on which the member was hired by another school corporation or institution covered by the fund or rehired by a prior employer.
    (d) The board shall credit member contributions of members assigned to the 1996 account under section 1.5(b) of this chapter to the annuity savings accounts within the 1996 account, except for contributions made by members that are credited to the annuity savings accounts within the pre-1996 account under subsection (c)(2).
    (e) The board shall credit employer contributions to the retirement allowance account within the pre-1996 account as follows:
        (1) Contributions made for members assigned to the pre-1996 account under section 1.5(a) of this chapter.
        (2) Contributions made for members assigned to the 1996 account under section 1.5(b)(2) of this chapter before the date, after June 30, 1995, on which the member was hired by another school corporation or institution covered by the fund or rehired by a prior employer.
    (f) The board shall credit employer contributions made for members assigned to the 1996 account under section 1.5(b) of this chapter to the retirement allowance account within the 1996 account, except for contributions made for members that are credited to the retirement allowance account within the pre-1996 account under subsection (e)(2).

    (h) (g) The board shall administer these accounts and subaccounts as specified in IC 5-10.2-2.