Citations Affected: IC 5-10.3.
Synopsis:
Pension relief fund distributions. Extends until January 1,
2011, additional distributions from the pension relief fund ensuring that
at least 50% of the pension liability of each unit of local government is
paid from the pension relief fund. (The introduced version of this bill
was prepared by the pension management oversight commission.)
Provides that a member of the public employees' retirement fund
(PERF), previously employed by a state quasi-governmental entity not
affiliated with PERF that is absorbed by a PERF affiliated entity, may
purchase service credit at the full actuarial cost.
Effective: July 1, 2007.
January 11, 2007, read first time and referred to Committee on Ways and Means.
January 29, 2007, amended, reported _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
credited service before the member may claim the service
credit.
(3) Before the member retires, the member must make
contributions to the fund:
(A) that are equal to the product of:
(i) the member's salary at the time the member actually
makes a contribution for the service credit;
(ii) a percentage rate, as determined by the actuary of
the fund, based on the age of the member at the time the
member makes a contribution for service credit and
computed to result in a contribution amount that
approximates the actuarial present value of the benefit
attributable to the service credit purchased; and
(iii) the number of years of state quasi-governmental
entity service the member intends to purchase; and
(B) for any accrued interest, at a rate determined by the
actuary of the fund, for the period from the member's
initial membership in the fund to the date payment is made
by the member.
(4) The member must provide verification of the service with
the state quasi-governmental entity in a manner prescribed by
the fund.
(c) State quasi-governmental entity service that qualifies a
member for retirement in a private retirement system or a federal
retirement system may not be granted under this section.
(d) A member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service from
another tax supported public employee retirement plan other
than under the federal Social Security Act;
may withdraw the personal contributions made under the
contributory plan plus accumulated interest after submitting to the
fund a properly completed application for a refund.
(e) The following apply to the purchase of service credit under
this section:
(1) The board may allow a member to make periodic
payments of the contributions required for the purchase of
the service credit. The board shall determine the length of the
period during which the payments must be made.
(2) The board may deny an application for the purchase of
service credit if the purchase would exceed the limitations
under Section 415 of the Internal Revenue Code.
(3) A member may not claim the service credit for purposes
of determining eligibility or computing benefits unless the
member has made all payments required for the purchase of
the service credit.