SB 363-1_ Filed 03/29/2005, 11:00 Cochran


Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 363 be amended to read as follows:

SOURCE: Page 1, line 1; (05)MO036302.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 33-23-5-13; (05)MO036302.1. -->     "SECTION 1. IC 33-23-5-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 13. (a) Except as provided in subsection (b), a magistrate may:
        (1) participate in the public employees' retirement fund as provided in IC 5-10.3; or
        (2) elect to remain in the judges' retirement system under IC 33-38 if the magistrate had previously participated in the system.
     (b) A person who:
        (1) is serving as a full-time magistrate on July 1, 2005, and makes an election under IC 33-38-8-10.5; or
        (2) begins serving as a full-time magistrate after July 1, 2005;
shall, beginning January 1, 2006, participate in the judges' 1985 benefit system under IC 33-38-8.
".
SOURCE: Page 4, line 38; (05)MO036302.4. -->     Page 4, between lines 38 and 39, begin a new paragraph and insert:
SOURCE: IC 33-38-6-9; (05)MO036302.6. -->     "SECTION 6. IC 33-38-6-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 9. As used in this chapter, "participant" means a judge who participates in the fund. After December 31, 2005, "participant" means a judge or full-time magistrate who participates in the fund.
SOURCE: IC 33-38-8-1; (05)MO036302.7. -->     SECTION 7. IC 33-38-8-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 1. This chapter applies only to an individual who:
         (1) begins service as a judge after August 31, 1985;
         (2) is serving as a full-time magistrate on July 1, 2005, and makes an election under section 10.5 of this chapter; or
        (3) begins service as a full-time magistrate after July 1, 2005.

SOURCE: IC 33-38-8-10; (05)MO036302.8. -->     SECTION 8. IC 33-38-8-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 10. (a) A person who:
        (1) begins service as a judge after August 31, 1985; and
        (2) is not a participant in the fund;
shall become a participant in the fund.
     (b) A person who is serving as a full-time magistrate on July 1, 2005, and makes an election under section 10.5 of this chapter is, beginning January 1, 2006, a participant in the judges' 1985 benefit system under this chapter.
     (c) A person who begins serving as a full-time magistrate after July 1, 2005, is a participant in the judges' 1985 benefit system under this chapter beginning on the later of the following:
        (1) January 1, 2006.
        (2) The date the person begins service as a full-time magistrate.

SOURCE: IC 33-38-8-10.5; (05)MO036302.9. -->     SECTION 9. IC 33-38-8-10.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 10.5. A person who is serving as a full-time magistrate on July 1, 2005, may elect to become a member of the judges' 1985 benefit system under this chapter. An election under this section:
        (1) must be made in writing;
        (2) must be filed with the board, on a form prescribed by the board, before October 1, 2005; and
        (3) is irrevocable.

SOURCE: IC 33-38-8-12; (05)MO036302.10. -->     SECTION 10. IC 33-38-8-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 12. (a) A participant who:
        (1) ceases service:
             (A) as a judge; or
            (B) after December 31, 2005, as a judge or full-time magistrate;
        
other than by death or disability; and
        (2) is not eligible for a retirement benefit under this chapter;
is entitled to withdraw from the fund, beginning on the date specified by the participant in a written application. The date on which the withdrawal begins may not be before the date of final termination of employment or the date thirty (30) days before the receipt of the application by the board.
    (b) Upon the withdrawal, the participant is entitled to receive the total sum contributed, payable within sixty (60) days from the date of the withdrawal application or in monthly installments as the participant may elect.
SOURCE: IC 33-38-8-13; (05)MO036302.11. -->     SECTION 11. IC 33-38-8-13 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 13. A participant whose employment as a judge, or after December 31, 2005, as a judge or full-time magistrate, is terminated is entitled to a retirement benefit computed under section 14 of this chapter, beginning on the date specified by the participant in a written application, if the following conditions are met:
        (1) The date on which the benefit begins is not:
            (A) before the date of final termination of employment of the participant; or
            (B) the date thirty (30) days before the receipt of the application by the board.
        (2) The participant:
            (A) is at least sixty-two (62) years of age and has at least eight (8) years of service credit;
            (B) is at least fifty-five (55) years of age and the participant's age in years plus the participant's years of service is at least eighty-five (85); or
            (C) has become permanently disabled.
        (3) The participant is not receiving a salary from the state for services currently performed, except for services rendered in the capacity of judge pro tempore or senior judge.

SOURCE: IC 33-38-8-22; (05)MO036302.12. -->     SECTION 12. IC 33-38-8-22 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 22. (a) This section applies to a person who:
        (1) is:
             (A) a judge; or
            (B) after December 31, 2005, a judge or full-time magistrate;

        participating under this chapter;
        (2) before becoming:
             (A) a judge; or
            (B) after December 31, 2005, a judge or full-time magistrate;
        
was appointed by a court to serve as a full-time referee, full-time commissioner, or full-time magistrate;
        (3) was a member of the public employees' retirement fund during the employment described in subdivision (2); and
        (4) received credited service under the public employees' retirement fund for the employment described in subdivision (2).
    (b) If a person becomes a participant in the judges' 1985 benefit system under section 1 of this chapter, credit for prior service by the judge, or after December 31, 2005, by the judge or full-time magistrate, as a full-time referee, full-time commissioner, or full-time magistrate shall be granted under this chapter by the board if:
        (1) the prior service was credited under the public employees' retirement fund;
        (2) the state contributes to the judges' 1985 benefit system the

amount the board determines necessary to amortize the prior service liability over a period determined by the board, but not more than ten (10) years; and
        (3) the judge or full-time magistrate pays in a lump sum or in a series of payments determined by the board, not exceeding five (5) annual payments, the amount the judge or full-time magistrate would have contributed if the judge or full-time magistrate had been a member of the judges' 1985 benefit system during the prior service.
    (c) If the requirements of subsection (b)(2) and (b)(3) are not satisfied, a participant is entitled to credit only for years of service after the date of participation in the judges' 1985 benefit system.
    (d) An amortization schedule for contributions paid under subsection (b)(2) or (b)(3) must include interest at a rate determined by the board.
    (e) The following provisions apply to a person described in subsection (a):
        (1) A minimum benefit applies to participants receiving credit in the judges' 1985 benefit system from service covered by the public employees' retirement fund. The minimum benefit is payable at sixty-five (65) years of age or when the participant is at least fifty-five (55) years of age and meets the requirements under section 13(2)(b) of this chapter and equals the actuarial equivalent of the vested retirement benefit that is:
            (A) payable to the member at normal retirement under IC 5-10.2-4-1 as of the day before the transfer; and
            (B) based solely on:
                (i) creditable service;
                (ii) the average of the annual compensation; and
                (iii) the amount credited under IC 5-10.2 and IC 5-10.3 to the annuity savings account of the transferring member as of the day before the transfer.
        (2) If the requirements of subsection (b)(2) and (b)(3) are satisfied, the board shall transfer from the public employees' retirement fund to the judges' 1985 benefit system the amount credited to the annuity savings account and the present value of the retirement benefit payable at sixty-five (65) years of age or at least fifty-five (55) years of age under section 13(2)(b) of this chapter that is attributable to the transferring participant.
        (3) The amount the state and the participant must contribute to the judges' 1985 benefit system under subsection (b) shall be reduced by the amount transferred to the judges' 1985 benefit system by the board under subdivision (2).
        (4) If the requirements of subsection (b)(2) and (b)(3) are satisfied, credit for prior service in the public employees' retirement fund as a full-time referee, full-time commissioner, or full-time magistrate is waived. Any credit for the prior service under the judges' 1985 benefit system may be granted only under subsection (b).


    (f) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1985 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a rollover of a distribution from any of the following:
        (1) A qualified plan described in Section 401(a) or Section 403(a) of the Internal Revenue Code.
        (2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (3) An eligible plan that is maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state under Section 457(b) of the Internal Revenue Code.
        (4) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code.
    (g) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1985 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a trustee to trustee transfer from any of the following:
        (1) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (2) An eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.
SOURCE: IC 33-38-8-23; (05)MO036302.13. -->     SECTION 13. IC 33-38-8-23 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 23. (a) This section applies only to a person who:
        (1) is:
             (A) a judge; or
            (B) after December 31, 2005, a judge or full-time magistrate;

        participating under this chapter;
        (2) before becoming:
             (A) a judge; or
            (B) after December 31, 2005, a judge or full-time magistrate;
        
was a member of a public employees' retirement fund;
        (3) received credited service under a public employees' retirement fund for the employment described in subdivision (2), and the credited service is not eligible for prior service credit under section 22 of this chapter;
        (4) has not attained vested status under a public employees' retirement fund for the employment described in subdivision (2); and
        (5) has at least eight (8) years of service credit in the judges' retirement system.
    (b) If a person becomes a participant in the judges' 1985 benefit

system under this chapter, credit for service described in subsection (a) shall be granted under this chapter by the board if:
        (1) the prior service was credited under a public employees' retirement fund; and
        (2) the judge or full-time magistrate pays in a lump sum or in a series of payments determined by the board, not exceeding five (5) annual payments, the amount determined by the actuary for the judges' 1985 benefit system as the total cost of the service.
    (c) If the requirements of subsection (b) are not satisfied, a participant is entitled to credit only for years of service after the date of participation in the judges' 1985 benefit system.
    (d) An amortization schedule for contributions paid under this section must include interest at a rate determined by the board.
    (e) If the requirements of subsection (b) are satisfied, the appropriate board shall transfer from the retirement fund described in subsection (a)(2) to the judges' 1985 benefit system the amount credited to the judge's or full-time magistrate's annuity savings account and the present value of the retirement benefit payable at sixty-five (65) years of age that is attributable to the transferring participant.
    (f) The amount a participant must contribute to the judges' 1985 benefit system under subsection (b) shall be reduced by the amount transferred to the judges' 1985 benefit system by the appropriate board under subsection (e).
    (g) If the requirements of subsection (b) are satisfied, credit for prior service in a public employees' retirement fund is waived.
    (h) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1985 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a rollover of a distribution from any of the following:
        (1) A qualified plan described in Section 401(a) or Section 403(a) of the Internal Revenue Code.
        (2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (3) An eligible plan that is maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state under Section 457(b) of the Internal Revenue Code.
        (4) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code.
    (i) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1985 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a trustee to trustee transfer from any of the following:
        (1) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.


        (2) An eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.".
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 363 as printed March 25, 2005.)

________________________________________

Representative Cochran


MO036302/DI 113     2005