HB 1232-1_ Filed 01/29/2007, 09:39
Your Committee on Ways and Means , to which was referred House Bill 1232 ,
has had the same under consideration and begs leave to report the same back to the House with
the recommendation that said bill be amended as follows:
SOURCE: Page 1, line 1; (07)AM123202.1. -->
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
SOURCE: IC 5-10.3-7-4.8; (07)AM123202.1. -->
"SECTION 1. IC 5-10.3-7-4.8 IS ADDED TO THE INDIANA
CODE AS A NEW
SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 4.8. (a) As used in this section,
"state quasi-governmental entity service" means service in Indiana
that would be considered creditable service if performed by an
employee of a member of the fund by an individual who:
(1) provided the service as an employee of a body corporate
and politic, nonprofit corporation established by the state, or
other quasi-governmental entity that performed a state
governmental function; and
(2) was not a member of the fund under section 1 of this
chapter during the period of employment.
(b) A member may purchase state quasi-governmental entity
service credit subject to the following:
(1) The member must have at least one (1) year of credited
service in the fund.
(2) The member must have at least ten (10) years of in-state
credited service before the member may claim the service
(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
(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
(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.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1232 as introduced.)
and when so amended that said bill do pass.
AM123202/DI 116 2007