years do not have to be continuous.
(c) This subsection applies to a member of the Indiana state teachers' retirement fund who serves in an elected position for which the member takes an unpaid leave of absence. In computing the retirement benefit for a teacher member described in this subsection for years of service to which IC 5-10.4-5-7 does not apply, "average of the annual compensation" means the annual compensation for the one (1) year of service before retirement in which the member's annual compensation was highest. In order for a year to be used, the teacher member must have received for the year credit under IC 5-10.4-4-2 for at least one-half (1/2) year of service.
(d) This subsection applies to a teacher member that begins to receive service credit as a teacher after July 1, 2007. In computing the retirement benefit for a teacher member, "average of the annual compensation" means the average of the annual state average compensation, as defined in subsection (f), for the five (5) years of service before the member's retirement in which the annual state average compensation for teachers was highest. In order for a year to be included in the five (5) years, the teacher member must have received for the year credit under IC 5-10.4-4-2 for at least one-half (1/2) year of service. The five (5) years do not have to be continuous.
(d) (e) Subject to IC 5-10.2-2-1.5, "annual compensation" means:
(1) the basic salary earned by and paid to the member plus the amount that would have been part of that salary but for:
(A) the state's, a school corporation's, a participating political subdivision's, or a state educational institution's (as defined in IC 20-12-0.5-1) paying the member's contribution to the fund for the member; or
(B) the member's salary reduction agreement established under Section 125, 403(b), or 457 of the Internal Revenue Code; and
(2) in the case of a member described in subsection (c) and for years of service to which IC 5-10.4-5-7 does not apply, the basic salary that was not paid during the year but would have been paid to the member during the year under the member's employment contracts, if the member had not taken any unpaid leave of absence to serve in an elected position.
The portion of a back pay award or a similar award that the board determines is compensation under an agreement or under a judicial or an administrative proceeding shall be allocated by the board among the years the member earned or should have earned the compensation. Only that portion of the award allocated to the year the award is made is considered to have been earned during the year the award was made. Interest on an award is not considered annual compensation for any year.
(f) As used in this section, "annual state average compensation"
(1) the total statewide compensation paid to teachers during a calendar year; divided by
(2) the total number of teachers in Indiana during the calendar year provided in subdivision (1).
(e) (g) Compensation of not more than two thousand dollars
($2,000) received from the employer in contemplation of the member's
retirement, including severance pay, termination pay, retirement bonus,
or commutation of unused sick leave or personal leave, may be
included in the total annual compensation from which the average of
the annual compensation is determined, if it is received:
(1) before the member ceases service; or
(2) within twelve (12) months after the member ceases service.
(f) (h) This subsection applies to a member of the general assembly:
(1) who is a participant in the legislators' retirement system established under IC 2-3.5;
(2) who is also a member of the public employees' retirement fund or the Indiana state teachers' retirement fund; and
(3) whose years of service in the general assembly may not be considered in determining the average of the annual compensation under this section, as provided in IC 2-3.5-1-2(b)(2) or IC 2-3.5-3-1(c).
The board shall use the board's actuarial salary increase assumption to project the salary for any previous year needed to determine the average of the annual compensation.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1060 as printed February 6, 2007.)