Citations Affected: IC 2-5; IC 5-10.2; noncode.
Synopsis: Public officers compensation commissions. Establishes the
public officers compensation advisory commission to make
recommendations to the general assembly regarding the salaries to be
paid to public officers. Provides that recommended increases in salaries
may not exceed the change in the Indiana nonfarm income. Provides
that for purposes of computing a retirement benefit for a person who is
a member of the Indiana state teachers' retirement fund and who takes
an unpaid leave of absence to serve in an elected position: (1) "annual
compensation" includes the total amount that was not paid to the
member but would have been paid to the member during the year under
the member's employment contracts if the member had not taken any
unpaid leave of absence to serve in an elected position; and (2) the
"average of the annual compensation" means the annual compensation
for the one year of service in which the member's annual compensation
was highest.
Effective: Upon passage; June 1, 2004.
January 20, 2004, read first time and referred to Committee on Ways and Means.
January 29, 2004, amended, reported _ Do Pass.
February 4, 2004, read second time, amended, ordered engrossed.
February 5, 2004, engrossed. Read third time, passed. Yeas 61, nays 34.
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration and to make an appropriation.
in an ascertainable increase in the income or net worth of the
individual.
Sec. 8. (a) The term of a commission member begins on the later
of the following:
(1) July 1 after the member is appointed.
(2) The day the member accepts the member's appointment.
(b) The term of a commission member expires on July 1 of the
fourth year after the year the member's term begins.
(c) A member may be reappointed to serve a new term.
Sec. 9. (a) If there is a vacancy on the commission, the public
officer who appointed the member whose position is vacant shall
appoint an individual to fill the vacancy.
(b) The member appointed under this section shall fill the
vacancy for the remainder of the unexpired term.
Sec. 10. (a) Before July 1 of each odd numbered year, the
chairman of the legislative council shall appoint one (1) member to
be chair of the commission.
(b) The member appointed as chair of the commission serves as
chair beginning July 1 after appointment.
(c) A member of the commission may be reappointed as chair of
the commission.
Sec. 11. Five (5) commission members constitute a quorum. The
affirmative votes of at least five (5) commission members are
necessary for the commission to take official action other than to
adjourn or to meet to hear reports or testimony.
Sec. 12. The commission shall meet at the call of the chair and
at other times as the commission considers necessary.
Sec. 13. Each member of the commission is entitled to the
following:
(1) The salary per diem provided under IC 4-10-11-2.1(b).
(2) Reimbursement for traveling expenses as provided under
IC 4-13-1-4.
(3) Other expenses actually incurred in connection with the
member's duties as provided in the state policies and
procedures established by the Indiana department of
administration and approved by the budget agency.
Sec. 14. The legislative services agency shall provide
administrative support for the commission. At the request of the
legislative services agency, the state personnel department or the
Indiana judicial center established by IC 33-13-14-2 shall assign
staff to provide research and other support to assist the legislative
services agency in providing administrative support to the
commission.
Sec. 15. The legislative services agency may contract with
consultants on behalf of the commission as the commission
considers necessary to implement this chapter.
Sec. 16. Except as otherwise provided by this chapter, the
commission is subject to the rules of the legislative council.
Sec. 17. The commission shall make reports to the general
assembly as required by this chapter or by the legislative council.
Sec. 18. The commission shall meet at least one (1) time not later
than July 1 of each even-numbered year to do the following:
(1) Determine the growth rate from January 1 of the previous
year to January 1 of the current year.
(2) Receive information relating to the salaries of public
officers.
(3) Consider recommendations for suitable salaries for public
officers.
(4) Take testimony relating to the salaries of public officers.
Sec. 19. (a) Not later than September 1 of each even-numbered
year, the commission shall make written recommendations to the:
(1) legislative council; and
(2) budget committee;
concerning suitable salaries for public officers. The
recommendations to the legislative council must be in an electronic
format under IC 5-14-6.
(b) When making recommendations, the commission shall make
a separate recommendation, including a recommendation for no
adjustment of salary, for each separate public officer listed in
section 5 of this chapter.
(c) The commission may not recommend a rate of increase in
the salary of a public officer that exceeds the growth rate.
Sec. 20. A commission recommendation does not take effect
unless enacted by the general assembly.
Sec. 21. There is annually appropriated to the legislative
services agency from the state general fund money necessary for
the operation of the commission.
Sec. 22. Notwithstanding IC 1-1-1-8, the provisions of this
chapter are not severable.
quarters of service in a position covered by the retirement fund before
retirement in which the member's annual compensation was the
highest. However, in order for a quarter to be included in the twenty
(20) calendar quarters, the nonteacher member must have performed
service throughout the calendar quarter. All twenty (20) calendar
quarters do not have to be continuous but they must be in groups of
four (4) consecutive calendar quarters. The same calendar quarter may
not be included in two (2) different groups.
(b) This subsection does not apply to a teacher member
described in subsection (c). In computing the retirement benefit for a
teacher member, "average of the annual compensation" means the
average annual compensation for the five (5) years of service before
retirement in which the member's annual compensation was highest. In
order for a year to be included in the five (5) years, the teacher member
must have received for the year credit under IC 21-6.1-4-2 for at least
one-half (1/2) year of service. The five (5) years do not have to be
continuous.
(c) This subsection applies to a member of the Indiana state
teachers' retirement fund who serves in an elected position for
which the member takes an unpaid leave of absence. In computing
the retirement benefit for a teacher member described in this
subsection for years of service to which IC 21-6.1-5-7.5 does not
apply, "average of the annual compensation" means the annual
compensation for the one (1) year of service before retirement in
which the member's annual compensation was highest. In order for
a year to be used, the teacher member must have received for the
year credit under IC 21-6.1-4-2 for at least one-half (1/2) year of
service.
( d) Subject to IC 5-10.2-2-1.5 "annual compensation" means:
(1) the basic salary earned by and paid to the member plus the
amount that would have been part of that salary but for:
(1) (A) the state's, a school corporation's, a participating
political subdivision's, or a state educational institution's (as
defined in IC 20-12-0.5-1) paying the member's contribution
to the fund for the member; or
(2) (B) the member's salary reduction agreement established
under Section 125, 403(b), or 457 of the Internal Revenue
Code; and
(2) in the case of a member described in subsection (c) and for
years of service to which IC 21-6.1-5-7.5 does not apply, the
basic salary that was not paid during the year but would have
been paid to the member during the year under the member's
employment contracts if the member had not taken any
unpaid leave of absence to serve in an elected position.
The portion of a back pay award or a similar award that the board
determines is compensation under an agreement or under a judicial or
an administrative proceeding shall be allocated by the board among the
years the member earned or should have earned the compensation.
Only that portion of the award allocated to the year the award is made
is considered to have been earned during the year the award was made.
Interest on an award is not considered annual compensation for any
year.
(d) (e) Compensation of no more than two thousand dollars ($2,000)
received from the employer in contemplation of the member's
retirement, including severance pay, termination pay, retirement bonus,
or commutation of unused sick leave or personal leave, may be
included in the total annual compensation from which the average of
the annual compensation is determined, if it is received:
(1) before the member ceases service; or
(2) within twelve (12) months after the member ceases service.
(e) (f) This section applies to a member of the general assembly:
(1) who is a participant in the legislators' retirement system
established under IC 2-3.5;
(2) who is also a member of the public employees' retirement fund
or the state teachers' retirement fund; and
(3) whose years of service in the general assembly may not be
considered in determining the average of the annual
compensation under this section, as provided in
IC 2-3.5-1-2(b)(2) or IC 2-3.5-3-1(c).
The board shall use the board's actuarial salary increase assumption to
project the salary for any previous year needed to determine the
average of the annual compensation.