SENATE BILL No. 203
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-10.2-4.
Synopsis: Increase of PERF multiplier. Provides that the multiplier
used in calculating pension benefits for members of the public
employees' retirement fund (PERF) who retire after June 30, 2005, is
1.1% plus an additional 0.02% for each year of service in excess of ten
years, with a maximum multiplier of 1.5%. (Current law provides that
the multiplier is 1.1%.)
Effective: July 1, 2005.
January 4, 2005, read first time and referred to Committee on Pensions and Labor.
First Regular Session 114th General Assembly (2005)
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SENATE BILL No. 203
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 5-10.2-4-4; (05)IN0203.1.1. -->
SECTION 1. IC 5-10.2-4-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 4. (a) The computation
of benefits under this section is subject to IC 5-10.2-2-1.5.
(b) For retirement benefits payable on and after July 1, 1975, for a
member retired on and after January 1, 1956, the pension (p) is
computed as follows:
STEP ONE: Multiply
one and one-tenths percent (1.1%) the
applicable percentage (ap) determined under section 4.5 of
times the average of the annual compensation (aac)
and obtain a product.
STEP TWO: To obtain the pension, multiply the STEP ONE
product by the total creditable service (scr) completed by the
member on his retirement date.
times (aac) times (scr)
(c) Unless the member has chosen a lump sum payment under
section 2 of this chapter or elects to defer receiving in any form the
member's annuity savings account under section 2(c) of this chapter,
the annuity is the amount purchasable on the member's retirement date
by the amount credited to the member in the annuity savings account.
The amount purchasable is based on actuarial tables adopted by the
board under IC 5-10.2-2-10 at an interest rate determined by the board.
SOURCE: IC 5-10.2-4-4.5; (05)IN0203.1.2. -->
SECTION 2. IC 5-10.2-4-4.5 IS ADDED TO THE INDIANA
CODE AS A NEW
SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]: Sec. 4.5. (a) The applicable
percentage (ap) referred to in section 4(b) of this chapter is one and
one-tenth percent (1.1%) for:
(1) a member of the Indiana state teachers' retirement fund;
(2) a member of the public employees' retirement fund who
retires before July 1, 2005.
(b) For a member of the public employees' retirement fund who
retires after June 30, 2005, the applicable percentage (ap) referred
to in section 4(b) of this chapter is determined in STEP FOUR of
the following formula:
STEP ONE: Subtract ten (10) from the member's total years
of creditable service.
STEP TWO: Multiply the result determined under STEP
ONE by two-hundredths percent (0.02%).
STEP THREE: Add the STEP TWO product to one and
one-tenth percent (1.1%).
STEP FOUR: Determine the lesser of:
(A) the STEP THREE sum; or
(B) one and five-tenths percent (1.5%).