SB 568-1_ Filed 03/15/2007, 11:25
Your Committee on Ways and Means , to which was referred Senate Bill 568 ,
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 2, line 25; (07)AM056803.2. -->
Page 2, after line 25, begin a new paragraph and insert:
SOURCE: ; (07)AM056803.3. -->
"SECTION 3. [EFFECTIVE JULY 1, 2007] (a) As used in this
SECTION, "board" refers to the board of trustees of the fund.
(b) As used in this SECTION, "fund" refers to the public
employees' retirement fund established by IC 5-10.3-2-1.
(c) This SECTION applies to an individual who:
(1) was a state employee who, after November 24, 1996, and
before July 1, 2006, was terminated from employment with
(2) was a member of the fund;
(3) on the date of the individual's termination, had not
attained vested status (as defined in IC 5-10.2-1-8) in the fund;
(4) on the date of the individual's termination, needed to earn
not more than six (6) months of creditable service to attain
vested status in the fund.
(d) An individual described in subsection (c) may elect to
purchase up to twelve (12) months of service credit in the fund by
filing a written notice on a form prescribed by the board.
(e) An individual who elects to purchase service credit under
this SECTION must contribute to the fund as follows:
(1) Contributions that are equal to the product of the
(A) The individual's salary at the time the individual was
terminated from state employment.
(B) A rate, determined by the actuary for the fund, that is
based on the age of the individual at the time the individual
actually makes a contribution for the 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.
(C) The number of months of service credit the individual
intends to purchase.
(2) Contributions for any accrued interest, at a rate
determined by the actuary for the fund, for the period from
the individual's initial membership in the fund to the date
payment is made by the individual.
(f) The following apply to the purchase of service credit under
(1) The board may allow an individual to make periodic
payments of the contributions required for the purchase of
service credit. The board shall determine the length of the
period during which the payments must be made.
(2) The board may deny an election for the purchase of
service credit if the purchase would exceed the limitations
under Section 415 of the Internal Revenue Code.
(3) An individual may not claim the service credit for the
purpose of computing benefits unless the individual has made
all payments required for the purchase of the service credit.
(4) To the extent permitted by the Internal Revenue Code and
applicable regulations, an individual may purchase service
credit under this SECTION by a rollover distribution to the
fund from any of the following:
(A) A qualified plan described in Section 401(a) or Section
403(b) of the Internal Revenue Code.
(B) An annuity contract or account described in Section
403(b) of the Internal Revenue Code.
(C) 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.
(D) An individual retirement account or annuity described
in Section 408(a) or Section 408(b) of the Internal Revenue
(g) For the election described in subsection (d) to be effective
and in addition to the contributions required under subsection (e),
an individual who received a lump sum distribution from the fund
under IC 5-10.2-3-6 must repay to the fund, in the manner and
with interest at a rate determined by the board, the lump sum
distribution received under IC 5-10.2-3-6.
(h) This SECTION expires July 1, 2012.".
Renumber all SECTIONS consecutively.
(Reference is to SB 568 as printed February 16, 2007.)
and when so amended that said bill do pass.
AM056803/DI 92 2007