February 25, 2005





HOUSE BILL No. 1235

_____


DIGEST OF HB 1235 (Updated February 23, 2005 12:26 pm - DI 113)



Citations Affected: IC 5-10.2; noncode.

Synopsis: Reemployment of PERF and TRF members. Increases the exempt amount (the annual amount a retired member of the public employees' retirement fund or the teachers' retirement fund who has not attained the Social Security normal retirement age may earn in a covered position before the member's retirement benefit stops and the member must again make contributions to the member's retirement fund) from $25,000 to $35,000. Provides that interest credited prior to July 1, 2005, in the annuity savings account of the public employees' retirement fund to suspended members participating in its guaranteed fund shall be treated as properly credited.

Effective: July 1, 2005.





Buell, Hinkle, Klinker, Kersey




    January 6, 2005, read first time and referred to Committee on Employment and Labor.
    February 14, 2005, amended, reported _ Do Pass; referred to Committee on Ways and Means pursuant to Rule 127.
    February 24, 2005, amended, reported _ Do Pass.






February 25, 2005

First Regular Session 114th General Assembly (2005)


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 2004 Regular Session of the General Assembly.

HOUSE BILL No. 1235



    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 5-10.2-4-8; (05)HB1235.2.1. -->     SECTION 1. IC 5-10.2-4-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 8. (a) As used in this section, "exempt amount" means, in the case of a member who has not attained the Social Security normal retirement age for unreduced benefits, twenty-five thirty-five thousand dollars ($25,000), ($35,000), computed for the calendar year in which a retired public employees' retirement fund member is reemployed and computed for the fiscal year in which a retired teachers' retirement fund member is reemployed.
    (b) This subsection does not apply to a member who is employed by the department of education. If a member who is receiving retirement benefits and who has not attained the Social Security normal retirement age for unreduced benefits:
        (1) becomes reemployed in a position covered by this article; and
        (2) earns in that position more than the exempt amount;
his retirement benefit payments shall stop, and the member shall begin making contributions as required in IC 5-10.2-3-2. However, employer contributions shall be made throughout the period of reemployment.

The earnings limitation under this subsection does not apply to a member who has attained the Social Security normal retirement age for unreduced benefits.
    (c) If a member who is receiving retirement benefits is reemployed in a position covered by this article not more than ninety (90) days after the member's retirement, the member's retirement benefits shall stop, the member shall begin making contributions as required by IC 5-10.2-3-2, and employer contributions shall be made throughout the period of reemployment.
    (d) If a retired member is reemployed in a position covered by this article, section 10 of this chapter applies to the member upon the member's retirement from reemployment.

SOURCE: ; (05)HB1235.2.2. -->     SECTION 2. [EFFECTIVE JULY 1, 2005] IC 5-10.2-4-8, as amended by this act, applies to:
        (1) fiscal years that begin after June 30, 2005, for teachers' retirement fund members; and
        (2) calendar years that begin after December 31, 2005, for public employees'         retirement fund members.

SOURCE: ; (05)HB1235.2.3. -->     SECTION 3. [EFFECTIVE JULY 1, 2005] Interest credited prior to July 1, 2005, in the annuity savings account of the public employees' retirement fund to suspended members participating in the guaranteed fund under IC 5-10.2-2-3 shall be treated as properly credited.