Citations Affected: IC 4-15; IC 5-10; IC 5-10.2; IC 5-10.3.
Synopsis: Salary and PERF protection for state employees. Provides
that the state's salary and wage schedules must provide that an
appointing authority is not required to reduce the salary of an employee
who is demoted, unless the appointing authority determines that the
salary reduction is warranted for disciplinary reasons or other good
cause. Establishes a process to withdraw state employees from the
January 10, 2006, read first time and referred to Committee on Pensions and Labor.
January 19, 2006, reported favorably _ Do Pass. Reassigned to Senate Committee on
Appropriations.
January 26, 2006, amended, reported favorably _ Do Pass.
January 30, 2006, read second time, ordered engrossed. Engrossed.
February 2, 2006, read third time, passed. Yeas 50, nays 0.
public employees' retirement fund (fund) and allow certain state employees to retire when the employees' particular departmental, occupational, or other classifications are terminated from state employment as a result of: (1) a lease or other transfer of state property to a nongovernmental entity; or (2) a contractual arrangement with a nongovernmental entity to perform certain state functions. Establishes the funding sources for the amounts that the state is required to contribute to PERF for the purchase of up to 24 months of creditable service needed by a terminated employee who elects normal or early retirement. Authorizes the state to purchase and maintain an insurance policy that provides coverage that supplements coverage provided under a United States military health care plan. Permits a state employee who is not vested in the public employees' retirement fund (fund) and is terminated from employment as the result of: (1) a lease or other transfer of state property to a nongovernmental entity; or (2) a contractual arrangement with a nongovernmental entity to perform certain state functions; to elect to roll over a lump sum distribution from the fund to another retirement account or plan.
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
promotions.
(10) Maintain personnel records and a roster of the personnel of
all state agencies.
(11) Render personnel services to the political subdivisions of the
state.
(12) Investigate the operation of personnel policies in all state
agencies.
(13) Assist state agencies in the improvement of their personnel
procedures.
(14) Conduct a vigorous program of recruitment of qualified and
able persons for the state agencies.
(15) Advise the governor and the general assembly of legislation
needed to improve the personnel system of this state.
(16) Furnish any information and counsel requested by the
governor or the general assembly.
(17) Establish and administer an employee training and career
advancement program.
(18) Administer the state personnel law, IC 4-15-2.
(19) Institute an employee awards system designed to encourage
all state employees to submit suggestions that will reduce the
costs or improve the quality of state agencies.
(20) Survey the administrative organization and procedures,
including personnel procedures, of all state agencies, and submit
to the governor measures to secure greater efficiency and
economy, to minimize the duplication of activities, and to effect
better organization and procedures among state agencies.
(21) Establish, implement, and maintain the state aggregate
prescription drug purchasing program established under
IC 16-47-1, as approved by the budget agency.
(b) Salary and wage schedules established by the department under
subsection (a) must provide:
(1) for the establishment of overtime policies, which must
include: the following
(1) (A) definition of overtime;
(2) (B) determination of employees or classes eligible for
overtime pay;
(3) (C) procedures for authorization;
(4) (D) methods of computation;
(5) (E) procedures for payment; and
(6) (F) a provision that there shall be no mandatory
adjustments to an employee's established work schedule in
order to avoid the payment of overtime; and
(2) that an appointing authority is not required to reduce the
salary of an employee who is demoted, unless the appointing
authority determines that the salary reduction is warranted
for disciplinary reasons or other good cause.
(c) The state personnel advisory board shall advise the director and
cooperate in the improvement of all the personnel policies of the state.
(d) The department shall establish programs of temporary
appointment for employees of state agencies. A program established
under this subsection must contain at least the following provisions:
(1) A temporary appointment may not exceed one hundred eighty
(180) working days in any twelve (12) month period.
(2) The department may allow exceptions to the prohibition in
subdivision (1) with the approval of the state budget agency.
(3) A temporary appointment in an agency covered by IC 4-15-2
is governed by the procedures of that chapter.
(4) A temporary appointment does not constitute creditable
service for purposes of the public employees' retirement program
under IC 5-10.2 and IC 5-10.3. However, an employee who
served in an intermittent form of temporary employment after
June 30, 1986, and before July 1, 2003, shall receive creditable
service for the period of temporary employment.
administrative services offer to an employee terminating state
employment the option to purchase, without evidence of insurability,
an individual policy of insurance.
(c) Notwithstanding subsection (a), with the consent of the
governor, the state personnel department may contract for health
services for state employees and individuals to whom coverage is
provided by a local unit under section 6.6 of this chapter through one
(1) or more prepaid health care delivery plans.
(d) The state personnel department shall adopt rules under IC 4-22-2
to establish long term and short term disability plans for state
employees (except employees who hold elected offices (as defined by
IC 3-5-2-17)). The plans adopted under this subsection may include
any provisions the department considers necessary and proper and
must:
(1) require participation in the plan by employees with six (6)
months of continuous, full-time service;
(2) require an employee to make a contribution to the plan in the
form of a payroll deduction;
(3) require that an employee's benefits under the short term
disability plan be subject to a thirty (30) day elimination period
and that benefits under the long term plan be subject to a six (6)
month elimination period;
(4) prohibit the termination of an employee who is eligible for
benefits under the plan;
(5) provide, after a seven (7) day elimination period, eighty
percent (80%) of base biweekly wages for an employee disabled
by injuries resulting from tortious acts, as distinguished from
passive negligence, that occur within the employee's scope of
state employment;
(6) provide that an employee's benefits under the plan may be
reduced, dollar for dollar, if the employee derives income from:
(A) Social Security;
(B) the public employees' retirement fund;
(C) the Indiana state teachers' retirement fund;
(D) pension disability;
(E) worker's compensation;
(F) benefits provided from another employer's group plan; or
(G) remuneration for employment entered into after the
disability was incurred.
(The department of state revenue and the department of workforce
development shall cooperate with the state personnel department
to confirm that an employee has disclosed complete and accurate
information necessary to administer subdivision (6).)
(7) provide that an employee will not receive benefits under the
plan for a disability resulting from causes specified in the rules;
and
(8) provide that, if an employee refuses to:
(A) accept work assignments appropriate to the employee's
medical condition;
(B) submit information necessary for claim administration; or
(C) submit to examinations by designated physicians;
the employee forfeits benefits under the plan.
(e) This section does not affect insurance for retirees under
IC 5-10.3 or IC 21-6.1.
(f) The state may pay part of the cost of self-insurance or prepaid
health care delivery plans for its employees.
(g) A state agency may not provide any insurance benefits to its
employees that are not generally available to other state employees,
unless specifically authorized by law.
(h) The state may pay a part of the cost of group medical and life
coverage for its employees.
pension portion of the monthly retirement benefit computed as if
the member had been:
(1) eligible for normal retirement; and
(2) at least sixty-five (65) years of age;
on the member's separation date, multiplied by a fraction. The
numerator of the fraction is the number of months of creditable
service earned by the member as an employee of the state before
the member's separation date. The denominator of the fraction is
one hundred twenty (120).
(d) To the extent permitted by the Internal Revenue Code, the
distribution under subsection (c) must be made directly to any of
the following designated by the terminating employee:
(1) An individual retirement account or annuity described in
Section 408(a) or Section 408(b) of the Internal Revenue
Code.
(2) A qualified plan described in Section 401(a) or Section
403(a) of the Internal Revenue Code.
(3) An annuity contract or account described in Section 403(b)
of the Internal Revenue Code.
(4) 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.
(e) Creditable service used in computing a distribution under
this section may not be used to compute a normal or early
retirement benefit under this article.
(f) The board of trustees of the public employees' retirement
fund may adopt reasonable procedures and standards to
implement this section.
(g) This section applies only if the public employees' retirement
fund has received from the Internal Revenue Service any approvals
or rulings that the board of trustees of the public employees'
retirement fund considers necessary or appropriate.
sources described in subsection (h) sufficient to pay the
member's contributions required for the member's purchase
of the service credit the member needs to retire.
(2) The maximum amount of creditable service that the state
may purchase for a member under this subsection is
twenty-four (24) months.
(3) The benefit for the member shall be computed under
IC 5-10.2-4-4 using the member's actual years of creditable
service plus all other service for which the fund gives credit,
including the creditable service purchased under this
subsection.
(h) The amounts that the state is required to contribute to the
fund under subsection (g) must come from the following sources:
(1) If the state receives monetary payments under the lease or
contractual arrangement described in subsection (a), the
proceeds of the monetary payments received by the state. The
state may not require, as a condition of the transaction to
transfer state property or have certain state functions
performed by a nongovernmental entity, that the
nongovernmental entity directly or indirectly pay the amounts
that the state is required to contribute under subsection (g).
(2) If the state does not receive any monetary payments under
the lease or contractual arrangement described in subsection
(a), any remaining appropriations made to the state
department, agency, or other entity terminating the
employees described in subsection (a).
(3) If the sources described in subdivisions (1) and (2) do not
fully fund the amounts that the state is required to contribute
to the fund under subsection (g), the board shall request that
the general assembly appropriate the amount necessary to
fully fund the state's required contribution under subsection
(g) in the next biennial state budget.
(i) The board shall evaluate each withdrawal under this section
to determine if the withdrawal affects the fund's compliance with
Section 401(a) of the Internal Revenue Code of 1954, as in effect on
September 1, 1974. The board may deny an employee permission
to withdraw if the denial is necessary to achieve compliance with
Section 401(a) of the Internal Revenue Code of 1954, as in effect on
September 1, 1974.