Citations Affected: IC 5-10.2; noncode.
Synopsis: Pension issues. Allows a member of the teachers' retirement
fund (TRF) who is receiving a benefit from TRF and who is a party in
an action for dissolution of marriage in which: (1) the member's
designated beneficiary is also a party; and (2) a final order is issued
after the member's first benefit payment is made; to elect under certain
conditions to change the member's designated beneficiary or form of
benefit. Assigns to the pension management oversight commission the
study of TRF's structure.
Effective: July 1, 2007.
January 8, 2007, read first time and referred to Committee on Rules and Legislative
Procedures.
February 15, 2007, reassigned to Committee on Ways and Means.
February 20, 2007, amended, reported _ Do Pass.
February 23, 2007, read second time, amended, ordered engrossed.
February 26, 2007, engrossed.
February 27, 2007, read third time, passed. Yeas 96, nays 0.
A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
lifetime of the beneficiary, which benefit equals, at the option
of the member, either the full decreased retirement benefit or
two-thirds (2/3) or one-half (1/2) of that benefit.
(B) If the member dies before retirement, the designated
beneficiary may receive only the amount credited to the
member in the annuity savings account unless the designated
beneficiary is entitled to survivor benefits under IC 5-10.2-3.
(C) If the designated beneficiary dies before the member
retires, the selection is automatically canceled and the member
may make a new beneficiary election and may elect a different
form of benefit under this subsection.
(2) Benefit with No Guarantee. The member receives an increased
lifetime retirement benefit without the five (5) year guarantee
specified in this subsection.
(3) Integration with Social Security. If the member retires before
the age of eligibility for Social Security benefits, in order to
provide a level benefit during the member's retirement the
member receives an increased retirement benefit until the age of
Social Security eligibility and decreased retirement benefits after
that age.
(4) Cash Refund Annuity. The member receives a lifetime annuity
purchasable by the amount credited to the member in the annuity
savings account, and the member's designated beneficiary
receives a refund payment equal to:
(A) the total amount used in computing the annuity at the
retirement date; minus
(B) the total annuity payments paid and due to the member
before the member's death.
(c) This subsection does not apply to a member of the Indiana
state teachers' retirement fund after June 30, 2007. If:
(1) the designated beneficiary dies while the member is receiving
benefits; or
(2) the member is receiving benefits, the member marries, either
for the first time or following the death of the member's spouse,
after the member's first benefit payment is made, and the
member's designated beneficiary is not the member's current
spouse or the member has not designated a beneficiary;
the member may elect to change the member's designated beneficiary
or form of benefit under subsection (b) and to receive an actuarially
adjusted and recalculated benefit for the remainder of the member's life
or for the remainder of the member's life and the life of the newly
designated beneficiary. The member may not elect to change to a five
(5) year guaranteed form of benefit. If the member's new election is the
joint and survivor option, the member shall indicate whether the
designated beneficiary's benefit shall equal, at the option of the
member, either the member's full recalculated retirement benefit or
two-thirds (2/3) or one-half (1/2) of this benefit. The cost of
recalculating the benefit shall be borne by the member and shall be
included in the actuarial adjustment.
(d) Except as provided in subsection (c) or section 7.2 of this
chapter, a member who files for regular or disability retirement may
not change:
(1) the member's retirement option under subsection (b);
(2) the selection of a lump sum payment under section 2 of this
chapter; or
(3) the beneficiary designated on the member's application for
benefits if the member selects the joint and survivor option under
subsection (b)(1);
after the first day of the month in which benefit payments are scheduled
to begin. For purposes of this subsection, it is immaterial whether a
benefit check has been sent, received, or negotiated.
(e) A member may direct that the member's retirement benefits be
paid to a revocable trust that permits the member unrestricted access
to the amounts held in the revocable trust. The member's direction is
not an assignment or transfer of benefits under IC 5-10.3-8-10 or
IC 5-10.4-5-14.