HB 1105-1_ Filed 01/29/2008, 07:23 Tincher
Adopted 1/29/2008


Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that House Bill 1105 be amended to read as follows:

    Replace the effective date in SECTION 2 with "[EFFECTIVE UPON PASSAGE]".
    Replace the effective date in SECTION 10 with "[EFFECTIVE UPON PASSAGE]".

SOURCE: Page 7, line 30; (08)MO110502.7. -->     Page 7, line 30, delete "(a) This section".
    Page 7, delete lines 31 through 32.
    Page 7, line 33, reset in roman "(a)".
    Page 7, line 33, after "(a)" delete "(b)".
    Page 7, line 33, after "(b)," delete "(c)".
    Page 7, line 33, after "subsection" reset in roman "(b),".
    Page 7, line 35, strike "sixtieth" and insert " sixty-fifth".
    Page 7, line 36, reset in roman "(b)".
    Page 7, line 36, delete "(c)".
    Page 7, line 40, strike "ten (10)" and insert " fifteen (15)".
    Page 7, between lines 41 and 42, begin a new paragraph and insert:
SOURCE: IC 5-10-5.5-10; (08)MO110502.3. -->     "SECTION 3. IC 5-10-5.5-10, AS AMENDED BY P.L.180-2007, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10. (a) Benefits provided under this section are subject to section 2.5 of this chapter.
    (b) The annual retirement allowance of a participant, payable in equal monthly installments beginning on the participant's normal retirement date, shall be a percentage of the participant's average annual salary, such percentage to be twenty-five percent (25%)

increased by one and two-thirds percent (1 2/3%) of the participant's average annual salary for each completed year of creditable service more than ten (10) years. However, the annual retirement allowance computed under this subsection may not exceed seventy-five percent (75%) of the participant's average annual salary.
    (c) The annual retirement allowance shall cease with the last monthly payment prior to the death of the participant.

SOURCE: IC 5-10-5.5-22; (08)MO110502.4. -->     SECTION 4. IC 5-10-5.5-22 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 22. (a) As used in this section, "DROP" refers to a deferred retirement option plan established under this section.
    (b) As used in this section, "DROP entry date" means the date that a participant's election to enter a DROP becomes effective.
    (c) As used in this section, "DROP frozen benefit" refers to an annual retirement allowance computed under section 10 of this chapter based on a participant's:
        (1) average annual salary; and
        (2) years of creditable service;
on the date the participant enters the DROP.
    (d) As used in this section, "DROP retirement date" means the future retirement date selected by a participant at the time the participant elects to enter the DROP.
    (e) Only a participant who is eligible to receive an unreduced annual retirement allowance immediately upon termination of employment may elect to enter a DROP. A participant who elects to enter the DROP must agree to the following:
        (1) The participant shall execute an irrevocable election to retire on the DROP retirement date and must remain in active service until that date.
        (2) While in the DROP, the participant shall continue to make contributions under section 8 of this chapter.
        (3) The participant shall select a DROP retirement date not less than twelve (12) months and not more than thirty-six (36) months after the participant's DROP entry date.
        (4) The participant may not remain in the DROP after the date the participant reaches the mandatory retirement age under section 9 of this chapter.
        (5) The participant may make an election to enter the DROP only once in the participant's lifetime.
    (f) Contributions or payments provided by the general assembly under section 4(b)(4) of this chapter continue for a participant while the participant is in the DROP.
    (g) A participant shall exit the DROP on the earliest of the following:
        (1) The participant's DROP retirement date.
        (2) Thirty-six (36) months after the participant's DROP entry

date.
        (3) The participant's mandatory retirement age.
        (4) The date the participant retires because of a disability as provided by subsection (k).
    (h) A participant who retires on the participant's DROP retirement date or on the date the participant retires because of a disability as provided by subsection (k) may elect to receive an annual retirement allowance:
        (1) computed under section 10 of this chapter as if the participant had never entered the DROP; or
        (2) consisting of:
            (A) the DROP frozen benefit; plus
            (B) an additional amount, paid as the participant elects under subsection (i), determined by multiplying:
                (i) the DROP frozen benefit; by
                (ii) the number of months the participant was in the DROP.
    (i) The participant shall elect, at the participant's retirement, to receive the additional amount calculated under subsection (h)(2)(B) in one (1) of the following ways:
        (1) A lump sum paid on:
            (A) the participant's DROP retirement date; or
            (B) the date the participant retires because of a disability as provided by subsection (k).
        (2) Three (3) equal annual payments:
            (A) commencing on:
                (i) the participant's DROP retirement date; or
                (ii) the date the participant retires because of a disability as provided by subsection (k); and
            (B) thereafter paid on:
                (i) the anniversary of the participant's DROP retirement date; or
                (ii) the date the participant retires because of a disability as provided by subsection (k).
    (j) A cost of living increase determined under section 21(c) of this chapter does not apply to the additional amount calculated under subsection (h)(2)(B) at the participant's DROP retirement date or the date the participant retires because of a disability as provided by subsection (k). No cost of living increase is applied to a DROP frozen benefit while the participant is in the DROP. After the participant's DROP retirement date or the date the participant retires because of a disability as provided by subsection (k), cost of living increases determined under section 21(c) of this chapter apply to the participant's annual retirement allowance computed under this section.
    (k) If a participant becomes disabled, in the line of duty or other than in the line of duty while in the DROP, the participant's annual

retirement allowance is computed as follows:
        (1) If the participant retires because of a disability less than twelve (12) months after the date the participant enters the DROP, the participant's annual retirement allowance is calculated as if the participant had never entered the DROP.
        (2) If the participant retires because of a disability at least twelve (12) months after the date the participant enters the DROP, the participant's annual retirement allowance is calculated under this section, and the participant's retirement date is the date the member retires because of a disability rather than the participant's DROP retirement date.
    (l) If, before payment of the participant's annual retirement allowance begins, the participant dies in the line of duty or other than in the line of duty, death benefits are payable as follows:
        (1) The benefit calculated under subsection (h)(2)(B) is paid in a lump sum to the participant's surviving spouse. If there is no surviving spouse, the lump sum must be divided equally among the participant's surviving children. If there are no surviving children, the lump sum is paid to the participant's parents. If there are no surviving parents, the lump sum is paid to the participant's estate.
        (2) A benefit is paid on the DROP frozen benefit under the terms of the retirement plan created by this chapter.
    (m) Except as provided under subsections (k) and (l), the annual retirement allowance for a participant who exits the DROP for any reason other than retirement on the participant's DROP retirement date is calculated as if the participant had never entered the DROP.
".
    Page 7, delete line 42.

SOURCE: Page 7, line 42.
    Page; (08)MO110502.7. -->     Page 8, delete lines 1 through 29.
    Page 12, line 13, delete "IC 5-10-5.5-12," and insert " IC 5-10-5.5-10,".
    Page 12, line 13, delete "IC 5-10-5.5-9.5," and insert " IC 5-10-5.5-22,".
    Page 12, line 16, delete ":".
    Page 12, delete line 17.
    Page 12, line 18, delete "(2) retires" and insert " is in active service".
    Page 12, run in lines 16 through 18.
    Page 12, after line 18, begin a new paragraph and insert:
SOURCE: ; (08)MO110502.11. -->     "SECTION 11. An emergency is declared for this act.".
    Renumber all SECTIONS consecutively.
    (Reference is to HB 1105 as printed January 22, 2008.)

________________________________________

Representative Tincher


MO110502/DI 102     2008