Introduced Version






HOUSE BILL No. 1257

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 33-23-5-13; IC 33-34-8-3; IC 33-37; IC 33-38.

Synopsis: Judges' pensions. Allows a person serving as a full-time magistrate on July 1, 2010, and requires a person who begins serving as a full-time magistrate after that date, to become a participant in the judges' 1985 benefit system (1985 system). Allows under certain conditions a judge who is a participant in the 1985 system to transfer to the 1985 system service credit earned as a full-time referee, commissioner, or magistrate after leaving a position covered by the 1985 system. Allows under certain conditions a magistrate who is a participant in the 1985 system to purchase, at full actuarial cost, service credit for service earned in the public employees' retirement fund as a full-time magistrate, referee, or commissioner. For certain participants in the 1985 system who apply for a retirement benefit after December 31, 2009, bases the computation of the annual retirement benefit on the salary being paid for the office that the participant held at the time of the participant's separation from service. (Currently the computation is based on the salary being paid to the participant at the time of the participant's separation from service.) Provides that benefit increases paid after December 31, 2009, to a participant in the 1985 system who applies for a retirement benefit before January 1, 2010, or to certain terminated vested participants, are equal to the percentage by which the salary being paid for the office that the participant held at the time of the participant's separation from service increases. Increases the court administration fee from $3 to $5, and directs that the additional amount be paid into the judges' retirement fund, except for the additional amount collected by the Marion County small claims courts, which must be used to fund the small claims courts' operations. (The introduced version of this bill was prepared by the pension management oversight commission.)

Effective: July 1, 2008.





Niezgodski




    January 14, 2008, read first time and referred to Committee on Labor and Employment.







Introduced

Second Regular Session 115th General Assembly (2008)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1257



    A BILL FOR AN ACT to amend the Indiana Code concerning pensions.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 33-23-5-13; (08)IN1257.1.1. -->     SECTION 1. IC 33-23-5-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 13. (a) Except as provided in subsection (b), a magistrate may:
        (1) participate in the public employees' retirement fund as provided in IC 5-10.3; or
        (2) elect to remain in the judges' retirement system under IC 33-38 if the magistrate had previously participated in the system.
     (b) A person who:
        (1) is serving as a full-time magistrate on July 1, 2010, and makes an election under IC 33-38-8-10.5; or
        (2) begins serving as a full-time magistrate after July 1, 2010;
shall, beginning January 1, 2011, participate in the judges' 1985 benefit system under IC 33-38-8.

SOURCE: IC 33-34-8-3; (08)IN1257.1.2. -->     SECTION 2. IC 33-34-8-3, AS AMENDED BY P.L.174-2006, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 3. (a) Payment for all costs made as a result of

proceedings in a small claims court shall be to the _______ Township of Marion County Small Claims Court (with the name of the township inserted). The court shall issue a receipt for all money received on a form numbered serially in duplicate. All township docket fees and late fees received by the court shall be paid to the township trustee at the close of each month.
    (b) The court shall:
        (1) semiannually distribute to the auditor of state:
            (A) all automated record keeping fees (IC 33-37-5-21) received by the court for deposit in the state user fee fund established under IC 33-37-9;
            (B) all public defense administration fees collected by the court under IC 33-37-5-21.2 for deposit in the state general fund;
            (C) sixty percent (60%) of all court administration fees collected by the court under IC 33-37-5-27 for deposit in the state general fund;
            (D) all judicial insurance adjustment fees collected by the court under IC 33-37-5-25 for deposit in the judicial branch insurance adjustment account established by IC 33-38-5-8.2; and
            (E) seventy-five percent (75%) of all judicial salaries fees collected by the court under IC 33-37-5-26 for deposit in the state general fund; and
        (2) distribute monthly to the county auditor all document storage fees received by the court.
The remaining twenty-five percent (25%) of the judicial salaries fees described in subdivision (1)(E) shall be deposited monthly in the township general fund of the township in which the court is located. The county auditor shall deposit fees distributed under subdivision (2) into the clerk's record perpetuation fund under IC 33-37-5-2.
     (c) The court shall semiannually pay to the township trustee of the township in which the court is located the remaining forty percent (40%) of the court administration fees described under subsection (b)(1)(C) to fund the operations of the small claims court in the trustee's township.

SOURCE: IC 33-37-5-27; (08)IN1257.1.3. -->     SECTION 3. IC 33-37-5-27, AS AMENDED BY P.L.80-2006, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 27. (a) This subsection does not apply to the following:
        (1) A criminal proceeding.
        (2) A proceeding to enforce a statute defining an infraction.
        (3) A proceeding for an ordinance violation.
In each action filed in a court described in IC 33-37-1-1, and in each small claims action in a court described in IC 33-34, the clerk shall collect a court administration fee of three five dollars ($3). ($5).
    (b) In each action in which a person is:
        (1) convicted of an offense;
        (2) required to pay a pretrial diversion fee;
        (3) found to have committed an infraction; or
        (4) found to have violated an ordinance;
the clerk shall collect a court administration fee of three five dollars ($3). ($5).
SOURCE: IC 33-37-7-2; (08)IN1257.1.4. -->     SECTION 4. IC 33-37-7-2, AS AMENDED BY P.L.174-2006, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 2. (a) The clerk of a circuit court shall distribute semiannually to the auditor of state as the state share for deposit in the state general fund seventy percent (70%) of the amount of fees collected under the following:
        (1) IC 33-37-4-1(a) (criminal costs fees).
        (2) IC 33-37-4-2(a) (infraction or ordinance violation costs fees).
        (3) IC 33-37-4-3(a) (juvenile costs fees).
        (4) IC 33-37-4-4(a) (civil costs fees).
        (5) IC 33-37-4-6(a)(1)(A) (small claims costs fees).
        (6) IC 33-37-4-7(a) (probate costs fees).
        (7) IC 33-37-5-17 (deferred prosecution fees).
    (b) The clerk of a circuit court shall distribute semiannually to the auditor of state for deposit in the state user fee fund established in IC 33-37-9-2 the following:
        (1) Twenty-five percent (25%) of the drug abuse, prosecution, interdiction, and correction fees collected under IC 33-37-4-1(b)(5).
        (2) Twenty-five percent (25%) of the alcohol and drug countermeasures fees collected under IC 33-37-4-1(b)(6), IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
        (3) Fifty percent (50%) of the child abuse prevention fees collected under IC 33-37-4-1(b)(7).
        (4) One hundred percent (100%) of the domestic violence prevention and treatment fees collected under IC 33-37-4-1(b)(8).
        (5) One hundred percent (100%) of the highway work zone fees collected under IC 33-37-4-1(b)(9) and IC 33-37-4-2(b)(5).
        (6) One hundred percent (100%) of the safe schools fee collected under IC 33-37-5-18.
        (7) One hundred percent (100%) of the automated record keeping

fee (IC 33-37-5-21).
    (c) The clerk of a circuit court shall distribute monthly to the county auditor the following:
        (1) Seventy-five percent (75%) of the drug abuse, prosecution, interdiction, and correction fees collected under IC 33-37-4-1(b)(5).
        (2) Seventy-five percent (75%) of the alcohol and drug countermeasures fees collected under IC 33-37-4-1(b)(6), IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
The county auditor shall deposit fees distributed by a clerk under this subsection into the county drug free community fund established under IC 5-2-11.
    (d) The clerk of a circuit court shall distribute monthly to the county auditor fifty percent (50%) of the child abuse prevention fees collected under IC 33-37-4-1(b)(7). The county auditor shall deposit fees distributed by a clerk under this subsection into the county child advocacy fund established under IC 12-17-17.
    (e) The clerk of a circuit court shall distribute monthly to the county auditor one hundred percent (100%) of the late payment fees collected under IC 33-37-5-22. The county auditor shall deposit fees distributed by a clerk under this subsection as follows:
        (1) If directed to do so by an ordinance adopted by the county fiscal body, the county auditor shall deposit forty percent (40%) of the fees in the clerk's record perpetuation fund established under IC 33-37-5-2 and sixty percent (60%) of the fees in the county general fund.
        (2) If the county fiscal body has not adopted an ordinance described in subdivision (1), the county auditor shall deposit all the fees in the county general fund.
    (f) The clerk of the circuit court shall distribute semiannually to the auditor of state for deposit in the sexual assault victims assistance account established by IC 4-23-25-11(i) one hundred percent (100%) of the sexual assault victims assistance fees collected under IC 33-37-5-23.
    (g) The clerk of a circuit court shall distribute monthly to the county auditor the following:
        (1) One hundred percent (100%) of the support and maintenance fees for cases designated as non-Title IV-D child support cases in the Indiana support enforcement tracking system (ISETS) collected under IC 33-37-5-6.
        (2) The percentage share of the support and maintenance fees for cases designated as IV-D child support cases in ISETS collected

under IC 33-37-5-6 that is reimbursable to the county at the federal financial participation rate.
The county clerk shall distribute monthly to the office of the secretary of family and social services the percentage share of the support and maintenance fees for cases designated as Title IV-D child support cases in ISETS collected under IC 33-37-5-6 that is not reimbursable to the county at the applicable federal financial participation rate.
    (h) The clerk of a circuit court shall distribute monthly to the county auditor the following:
        (1) One hundred percent (100%) of the small claims service fee under IC 33-37-4-6(a)(1)(B) or IC 33-37-4-6(a)(2) for deposit in the county general fund.
        (2) One hundred percent (100%) of the small claims garnishee service fee under IC 33-37-4-6(a)(1)(C) or IC 33-37-4-6(a)(3) for deposit in the county general fund.
    (i) This subsection does not apply to court administration fees collected in small claims actions filed in a court described in IC 33-34. The clerk of a circuit court shall semiannually distribute to the auditor of state for deposit in the state general fund one hundred percent (100%) of the following:
        (1) The public defense administration fee collected under IC 33-37-5-21.2.
        (2) The judicial salaries fees collected under IC 33-37-5-26.
        (3) The DNA sample processing fees collected under IC 33-37-5-26.2.
        (4) The court administration fees collected under IC 33-37-5-27.
    (j) The clerk of a circuit court shall semiannually distribute to the auditor of state for deposit in the judicial branch insurance adjustment account established by IC 33-38-5-8.2 one hundred percent (100%) of the judicial insurance adjustment fee collected under IC 33-37-5-25.
    (k) The proceeds of the service fee collected under IC 33-37-5-28(b)(1) or IC 33-37-5-28(b)(2) shall be distributed as follows:
        (1) The clerk shall distribute one hundred percent (100%) of the service fees collected in a circuit, superior, county, or probate court to the county auditor for deposit in the county general fund.
        (2) The clerk shall distribute one hundred percent (100%) of the service fees collected in a city or town court to the city or town fiscal officer for deposit in the city or town general fund.
    (l) The proceeds of the garnishee service fee collected under IC 33-37-5-28(b)(3) or IC 33-37-5-28(b)(4) shall be distributed as follows:


        (1) The clerk shall distribute one hundred percent (100%) of the garnishee service fees collected in a circuit, superior, county, or probate court to the county auditor for deposit in the county general fund.
        (2) The clerk shall distribute one hundred percent (100%) of the garnishee service fees collected in a city or town court to the city or town fiscal officer for deposit in the city or town general fund.
SOURCE: IC 33-37-7-9; (08)IN1257.1.5. -->     SECTION 5. IC 33-37-7-9, AS AMENDED BY P.L.174-2006, SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 9. (a) On June 30 and on December 31 of each year, the auditor of state shall transfer to the treasurer of state eight nine million two hundred seventy-seven thousand twenty-three dollars ($8,277,023) ($9,277,023) for distribution under subsection (b).
    (b) On June 30 and on December 31 of each year, the treasurer of state shall deposit into:
        (1) the family violence and victim assistance fund established by IC 12-18-5-2 an amount equal to eight and ninety-nine hundredths three-hundredths percent (8.99%); (8.03%);
        (2) the Indiana judges' retirement fund established by IC 33-38-6-12 an amount equal to thirty-one thirty-eight and eighteen fifty-five hundredths percent (31.18%); (38.55%);
        (3) the law enforcement academy building fund established by IC 5-2-1-13 an amount equal to two and eighty-six fifty-six hundredths percent (2.86%); (2.56%);
        (4) the law enforcement training fund established by IC 5-2-1-13 an amount equal to eleven ten and fifty-one twenty-seven hundredths percent (11.51%); (10.27%);
        (5) the violent crime victims compensation fund established by IC 5-2-6.1-40 an amount equal to thirteen eleven and thirty-seven ninety-three hundredths percent (13.37%); (11.93%);
        (6) the motor vehicle highway account an amount equal to twenty-one nineteen and eighty-four forty-nine hundredths percent (21.84%); (19.49%);
        (7) the fish and wildlife fund established by IC 14-22-3-2 an amount equal to twenty-seven twenty-five hundredths percent (.27%); (0.25%);
        (8) the Indiana judicial center drug and alcohol programs fund established by IC 12-23-14-17 for the administration, certification, and support of alcohol and drug services programs under IC 12-23-14 an amount equal to one and eighty-two sixty-three hundredths percent (1.82%); (1.63%); and
        (9) the DNA sample processing fund established under

IC 10-13-6-9.5 for the funding of the collection, shipment, analysis, and preservation of DNA samples and the conduct of a DNA data base program under IC 10-13-6 an amount equal to eight seven and sixteen twenty-nine hundredths percent (8.16%); (7.29%);
of the amount transferred by the auditor of state under subsection (a).
    (c) On June 30 and on December 31 of each year, the auditor of state shall transfer to the treasurer of state for deposit into the public defense fund established under IC 33-40-6-1:
        (1) after June 30, 2004, and before July 1, 2005, one million seven hundred thousand dollars ($1,700,000); and
        (2) after June 30, 2005, two million seven hundred thousand dollars ($2,700,000).

SOURCE: IC 33-38-6-9; (08)IN1257.1.6. -->     SECTION 6. IC 33-38-6-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 9. As used in this chapter, "participant" means a judge who participates in the fund. After December 31, 2010, "participant" means a judge or full-time magistrate who participates in the fund.
SOURCE: IC 33-38-6-11; (08)IN1257.1.7. -->     SECTION 7. IC 33-38-6-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 11. As used in this chapter, "services" means the period beginning on the first day a person first becomes a judge whether the date is before, on, or after March 11, 1953, or, after December 31, 2010, a judge or full-time magistrate, and ending on the date under consideration and includes all intervening employment as a judge or, after December 31, 2010, a judge or full-time magistrate.
SOURCE: IC 33-38-6-25; (08)IN1257.1.8. -->     SECTION 8. IC 33-38-6-25 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 25. (a) A judge or, after December 31, 2010, a judge or full-time magistrate, is entitled to a month of service credit for services performed in any fraction of a calendar month. However, a judge or, after December 31, 2010, a judge or full-time magistrate, is not entitled to more than one (1) month of credit for services performed in a calendar month.
    (b) Except as otherwise provided in this chapter, if a judge is elected or appointed and serves one (1) or more terms or part of a term, then retires from office but at a later period or periods is appointed or elected and serves as judge, the judge shall pay into the fund during all the periods served as judge, whether the periods are served consecutively or not.
    (c) Except as otherwise provided in this chapter, a judge is not required to pay into the fund:
        (1) at any time when the judge is not serving as judge; or
        (2) during any period of service as a senior judge under IC 33-23-3.
     (d) Except as otherwise provided in this chapter, after December 31, 2010, a full-time magistrate:
        (1) shall pay into the fund during all periods served as a full-time magistrate, whether the periods are served consecutively or not; and
        (2) is not required to pay into the fund at any time when the magistrate is not serving as a full-time magistrate.

SOURCE: IC 33-38-7-19; (08)IN1257.1.9. -->     SECTION 9. IC 33-38-7-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 19. (a) This section applies only to a person who:
        (1) is a judge participating under this chapter;
        (2) before becoming a judge was a member of an Indiana public employees' retirement fund;
        (3) received credited service under an Indiana public employees' retirement fund for the employment described in subdivision (2), and the credited service is not eligible for prior service credit under section 18 of this chapter;
        (4) has not attained vested status under a public employees' retirement fund for the employment described in subdivision (2); and
        (5) has at least eight (8) years of service credit in the judges' retirement system.
    (b) If a person becomes a participant in the judges' 1977 benefit system under this chapter, credit for service described in subsection (a) shall be granted under this chapter by the board if:
        (1) the prior service was credited under an Indiana public employees' retirement fund; and
        (2) the judge pays in a lump sum or in a series of payments determined by the board, not exceeding five (5) annual payments, the amount determined by the actuary for the 1977 benefit system as the total actual cost of the service.
    (c) If the requirements of subsection (b) are not satisfied, a participant is entitled to credit only for years of service after the date of participation in the 1977 benefit system.
    (d) An amortization schedule for contributions paid under this section must include interest at a rate determined by the board.
    (e) If the requirements of subsection (b) are satisfied, the appropriate board shall transfer from the retirement fund described in subsection (a)(2) to the judges' 1977 benefit system the amount credited to the judge's annuity savings account and the present value of

the retirement benefit payable at sixty-five (65) years of age that is attributable to the transferring participant.
    (f) The amount a participant must contribute to the judges' 1977 benefit system under subsection (b) shall be reduced by the amount transferred to the judges' 1977 benefit system by the appropriate board under subsection (e).
    (g) If the requirements of subsection (b) are satisfied, credit for prior service in a public employees' retirement fund is waived.
    (h) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1977 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a rollover of a distribution from any of the following:
        (1) A qualified plan described in Section 401(a) or Section 403(a) of the Internal Revenue Code.
        (2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (3) 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.
        (4) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code.
    (i) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1977 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a trustee to trustee transfer from any of the following:
        (1) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (2) An eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.

SOURCE: IC 33-38-8-1; (08)IN1257.1.10. -->     SECTION 10. IC 33-38-8-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 1. This chapter applies only to an individual who:
         (1) begins service as a judge after August 31, 1985;
         (2) is serving as a full-time magistrate on July 1, 2010, and makes an election under section 10.5 of this chapter; or
        (3) begins service as a full-time magistrate after July 1, 2010.

SOURCE: IC 33-38-8-7; (08)IN1257.1.11. -->     SECTION 11. IC 33-38-8-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 7. As used in this chapter, "participant" means a judge who participates in the fund. After

December 31, 2010, "participant" means a judge or full-time magistrate who participates in the fund.

SOURCE: IC 33-38-8-9; (08)IN1257.1.12. -->     SECTION 12. IC 33-38-8-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 9. As used in this chapter, "services" means the period beginning on the first day a person first becomes a judge whether the date is before, on, or after March 11, 1953, or, after December 31, 2010, a judge or full-time magistrate, and ending on the date under consideration and includes all intervening employment as a judge or, after December 31, 2010, a judge or full-time magistrate.
SOURCE: IC 33-38-8-10; (08)IN1257.1.13. -->     SECTION 13. IC 33-38-8-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 10. (a) A person who:
        (1) begins service as a judge after August 31, 1985; and
        (2) is not a participant in the fund;
shall become a participant in the fund.
     (b) A person who is serving as a full-time magistrate on July 1, 2010, and makes an election under section 10.5 of this chapter is, beginning January 1, 2011, a participant in the judges' 1985 benefit system under this chapter.
     (c) A person who begins serving as a full-time magistrate after July 1, 2010, is a participant in the judges' 1985 benefit system under this chapter beginning on the later of the following:
        (1) January 1, 2011.
        (2) The date the person begins service as a full-time magistrate.

SOURCE: IC 33-38-8-10.5; (08)IN1257.1.14. -->     SECTION 14. IC 33-38-8-10.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 10.5. A person who is serving as a full-time magistrate on July 1, 2010, may elect to become a member of the judges' 1985 benefit system under this chapter. An election under this section:
        (1) must be made in writing;
        (2) must be filed with the board, on a form prescribed by the board, before October 1, 2010; and
        (3) is irrevocable.

SOURCE: IC 33-38-8-11; (08)IN1257.1.15. -->     SECTION 15. IC 33-38-8-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 11. (a) A participant shall make contributions to this fund of six percent (6%) of each payment of salary received for services as judge or, after December 31, 2010, a judge or full-time magistrate. However, the employer may elect to pay the contribution for the participant as a pickup under Section 414(h) of the Internal Revenue Code.
    (b) Participants' contributions, other than participants' contributions paid by the employer, shall be deducted from the monthly salary of each participant by the auditor of state and by the county auditor and credited to the fund as provided in IC 33-38-6-21 and IC 33-38-6-22. However, a contribution is not required:
        (1) because of any salary received after the participant has contributed to the fund for twenty-two (22) years; or
        (2) during any period that the participant is not serving as judge or, after December 31, 2010, a judge or full-time magistrate.
SOURCE: IC 33-38-8-12; (08)IN1257.1.16. -->     SECTION 16. IC 33-38-8-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 12. (a) A participant who:
        (1) ceases service:
             (A) as a judge; or
            (B) after December 31, 2010, as a judge or full-time magistrate;
        
other than by death or disability; and
        (2) is not eligible for a retirement benefit under this chapter;
is entitled to withdraw from the fund, beginning on the date specified by the participant in a written application. The date on which the withdrawal begins may not be before the date of final termination of employment or the date thirty (30) days before the receipt of the application by the board.
    (b) Upon the withdrawal, the participant is entitled to receive the total sum contributed, payable within sixty (60) days from the date of the withdrawal application or in monthly installments as the participant may elect.
SOURCE: IC 33-38-8-13; (08)IN1257.1.17. -->     SECTION 17. IC 33-38-8-13, AS AMENDED BY P.L.28-2005, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 13. A participant whose employment as a judge or, after December 31, 2010, as a judge or full-time magistrate, is terminated is entitled to a retirement benefit computed under section 14 of this chapter, beginning on the date specified by the participant in a written application, if the following conditions are met:
        (1) The date on which the benefit begins is not:
            (A) before the date of final termination of employment of the participant; or
            (B) the date thirty (30) days before the receipt of the application by the board.
        (2) The participant:
            (A) is at least sixty-two (62) years of age and has at least eight (8) years of service credit;
            (B) is at least fifty-five (55) years of age and the participant's age in years plus the participant's years of service is at least eighty-five (85); or
            (C) has become permanently disabled.
        (3) The participant is not receiving a salary from the state for services currently performed as:
            (A) a judge (as defined in IC 33-38-6-7); or
            (B) a magistrate under IC 33-23-5.
SOURCE: IC 33-38-8-14; (08)IN1257.1.18. -->     SECTION 18. IC 33-38-8-14 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 14. (a) Benefits provided under this section are subject to IC 33-38-6-13 and section 20 of this chapter.
    (b) A participant who:
        (1) applies for a retirement benefit; and
        (2) is at least:
            (A) sixty-five (65) years of age; or
            (B) fifty-five (55) years of age and meets the requirements under section 13(2)(B) of this chapter;
is entitled to an annual retirement benefit as calculated in subsection (c).
    (c) The annual retirement benefit for a participant who meets the requirements of subsection (b) equals the product of:
        (1) the applicable salary that was paid to the participant at the time of separation from service; determined under subsection (e); multiplied by
        (2) the percentage prescribed in the following table:
    Participant's Years    Percentage
        of Service
            8                     24%
            9                     27%
            10                 30%
            11                 33%
            12                 50%
            13                 51%
            14                 52%
            15                 53%
            16                 54%
            17                 55%
            18                 56%
            19                 57%
            20                 58%
            21                 59%
            22 or more         60%
If a participant has a partial year of service in addition to at least eight (8) full years of service, an additional percentage shall be calculated by prorating between the applicable percentages, based on the number of months in the partial year of service.
    (d) Except as provided in section 13(2)(B) of this chapter and subsection (b)(2)(B), if a participant who applies for a retirement benefit has not attained sixty-five (65) years of age, the participant is entitled to receive a reduced annual retirement benefit that equals the benefit that would be payable if the participant were sixty-five (65) years of age reduced by one-tenth percent (0.1%) for each month that the participant's age at retirement precedes the participant's sixty-fifth birthday. This reduction does not apply to:
        (1) participants who are separated from service because of permanent disability;
        (2) survivors of participants who die while in service after August 1, 1992; or
        (3) survivors of participants who die while not in service but while entitled to a future benefit.
     (e) The applicable salary is one (1) of the following:
        (1) The salary that was being paid to the participant at the time of the participant's separation from service for:
            (A) a participant who applies to receive a retirement benefit from the fund before January 1, 2010; or
            (B) a participant who:
                (i) before January 1, 2010, separates from service;
                (ii) is entitled to receive a retirement benefit from the fund, but does not apply before January 1, 2010, to receive a retirement benefit; and
                (iii) does not earn any service credit in the fund after December 31, 2009.
        (2) The salary being paid for the office that the participant held at the time of the participant's separation from service for a participant who:
            (A) applies to receive a benefit after December 31, 2009; and
            (B) is not a participant described in subdivision (1)(B).

SOURCE: IC 33-38-8-17; (08)IN1257.1.19. -->     SECTION 19. IC 33-38-8-17, AS AMENDED BY P.L.99-2007, SECTION 199, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 17. (a) Benefits provided under this section are subject to IC 33-38-6-13 and section 20 of this chapter.
    (b) The surviving spouse or child or children, as designated by the

participant, of a participant who:
        (1) dies; and
        (2) on the date of death:
            (A) was receiving benefits under this chapter;
            (B) had completed at least eight (8) years of service and was in service as a judge or, after December 31, 2010, a judge or full-time magistrate;
            (C) had a permanent disability; or
            (D) had completed at least eight (8) years of service, was not still in service as a judge or, after December 31, 2010, a judge or full-time magistrate, and was entitled to a future benefit;
are entitled, regardless of the participant's ages, to the benefit prescribed by subsection (c).
    (c) The surviving spouse or child or children, as designated under subsection (b), are entitled to a benefit equal to the greater of:
        (1) fifty percent (50%) of the amount of the retirement benefit the participant was drawing at the time of death, or to which the participant would have been entitled had the participant retired and begun receiving retirement benefits on the date of death, with reductions as necessary under section 14(d) of this chapter; or
        (2) the amount determined under the following table:
    Year     Amount
    July 1, 1995, to
    June 30, 1996    $10,000
    July 1, 1996, to
    June 30, 1997    $11,000
    July 1, 1997, and
    thereafter    $12,000
    (d) The benefit payable to a surviving spouse or surviving child or children under subsection (c) is subject to the following:
        (1) A surviving spouse is entitled to receive the benefit for life.
        (2) The total monthly benefit payable to a surviving child or children is equal to the same monthly benefit that was to have been payable to the surviving spouse.
        (3) If there is more than one (1) child designated by the participant, then the children are entitled to share the benefit in equal monthly amounts.
        (4) A child entitled to a benefit shall receive that child's share until the child becomes eighteen (18) years of age or during the entire period of the child's physical or mental disability, whichever period is longer.


        (5) Upon the cessation of benefits to one (1) designated child, if there are one (1) or more other children then surviving and still entitled to benefits, the remaining children shall share equally the benefit. If the surviving spouse of the participant is surviving upon the cessation of benefits to all designated children, the surviving spouse shall then receive the benefit for the remainder of the spouse's life.
        (6) The benefit shall be payable to the participant's surviving spouse if any of the following occur:
            (A) No child or children named as a beneficiary by a participant survives the participant.
            (B) No child or children designated by the participant is or are entitled to a benefit due to the age of the child or children at the time of death of the participant.
            (C) A designation is not made.
        (7) A benefit payable to a surviving child or children may be paid to a trust or a custodian account under IC 30-2-8.5, established for the surviving child or children as designated by the participant.
SOURCE: IC 33-38-8-21; (08)IN1257.1.20. -->     SECTION 20. IC 33-38-8-21 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 21. (a) A judge or, after December 31, 2010, a judge or full-time magistrate, is entitled to a month of service credit for services performed in any fraction of a calendar month. However, a judge or, after December 31, 2010, a judge or full-time magistrate, is not entitled to more than one (1) month of credit for services performed in a calendar month.
    (b) Except as otherwise provided in this chapter, if a judge is elected or appointed and serves one (1) or more terms or part of a term then retires from office but at a later period or periods is appointed or elected and serves as judge, the judge shall pay into the fund during all the periods served as judge, whether the periods are served consecutively or not.
    (c) Except as otherwise provided in this chapter, a judge is not required to pay into the fund:
        (1) at any time when the judge is not serving as judge; or
        (2) during any period of service as a senior judge under IC 33-23-3.
     (d) Except as otherwise provided in this chapter, after December 31, 2010, a full-time magistrate:
        (1) shall pay into the fund during all periods served as a full-time magistrate, whether the periods are served consecutively or not; and
        (2) is not required to pay into the fund at any time when the

magistrate is not serving as a full-time magistrate.

SOURCE: IC 33-38-8-22; (08)IN1257.1.21. -->     SECTION 21. IC 33-38-8-22 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 22. (a) This section applies to a person who:
        (1) is a judge participating under this chapter;
        (2) before becoming a judge was appointed by a court to serve as a full-time referee, full-time commissioner, or, before January 1, 2011, full-time magistrate, either:
            (A) before becoming a judge; or
            (B) after leaving an elected term on the bench;

        (3) was a member of the public employees' retirement fund during the employment described in subdivision (2); and
        (4) received credited service under the public employees' retirement fund for the employment described in subdivision (2).
    (b) If a person becomes a participant as a judge in the judges' 1985 benefit system under section 1 of this chapter, credit for prior service by the judge as a full-time referee, full-time commissioner, or, before January 1, 2011, full-time magistrate shall be granted under this chapter by the board if:
        (1) the prior service was credited under the public employees' retirement fund;
        (2) the state contributes to the judges' 1985 benefit system the amount the board determines necessary to amortize the prior service liability over a period determined by the board, but not more than ten (10) years; and
        (3) the judge pays in a lump sum or in a series of payments determined by the board, not exceeding five (5) annual payments, the amount the judge would have contributed if the judge had been a member of the judges' 1985 benefit system during the prior service.
    (c) If the requirements of subsection (b)(2) and (b)(3) are not satisfied, a participant is entitled to credit only for years of service after the date of participation earned as a participant in the judges' 1985 benefit system.
    (d) An amortization schedule for contributions paid under subsection (b)(2) or (b)(3) must include interest at a rate determined by the board.
    (e) The following provisions apply to a person described in subsection (a):
        (1) A minimum benefit applies to participants receiving credit in the judges' 1985 benefit system from service covered by the public employees' retirement fund. The minimum benefit is

payable at sixty-five (65) years of age or when the participant is at least fifty-five (55) years of age and meets the requirements under section 13(2)(b) 13(2)(B) of this chapter and equals the actuarial equivalent of the vested retirement benefit that is:
            (A) payable to the member at normal retirement under IC 5-10.2-4-1 as of the day before the transfer; and
            (B) based solely on:
                (i) creditable service;
                (ii) the average of the annual compensation; and
                (iii) the amount credited under IC 5-10.2 and IC 5-10.3 to the annuity savings account of the transferring member as of the day before the transfer.
        (2) If the requirements of subsection (b)(2) and (b)(3) are satisfied, the board shall transfer from the public employees' retirement fund to the judges' 1985 benefit system the amount credited to the annuity savings account and the present value of the retirement benefit payable at sixty-five (65) years of age or at least fifty-five (55) years of age under section 13(2)(b) 13(2)(B) of this chapter that is attributable to the transferring participant.
        (3) The amount the state and the participant must contribute to the judges' 1985 benefit system under subsection (b) shall be reduced by the amount transferred to the judges' 1985 benefit system by the board under subdivision (2).
        (4) If the requirements of subsection (b)(2) and (b)(3) are satisfied, credit for prior service in the public employees' retirement fund as a full-time referee, full-time commissioner, or, before January 1, 2011, full-time magistrate is waived. Any credit for the prior service under the judges' 1985 benefit system may be granted only under subsection (b).
    (f) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1985 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a rollover of a distribution from any of the following:
        (1) A qualified plan described in Section 401(a) or Section 403(a) of the Internal Revenue Code.
        (2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (3) 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.


        (4) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code.
    (g) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1985 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a trustee to trustee transfer from any of the following:
        (1) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (2) An eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.
SOURCE: IC 33-38-8-22.5; (08)IN1257.1.22. -->     SECTION 22. IC 33-38-8-22.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 22.5. (a) This section applies after December 31, 2010, only to a person who:
        (1) is a full-time magistrate participating under this chapter;
        (2) was appointed by a court to serve as:
            (A) a full-time referee or full-time commissioner; or
            (B) before January 1, 2011, a full-time magistrate;
        (3) was a member of the public employees' retirement fund during the employment described in subdivision (2); and
        (4) received credited service under the public employees' retirement fund for the employment described in subdivision (2).
    (b) If a person becomes a participant as a full-time magistrate in the judges' 1985 benefit system under section 1 of this chapter, credit for service by the magistrate as a full-time referee, full-time commissioner, or, before January 1, 2011, full-time magistrate shall be granted under this chapter by the board if:
        (1) the service was credited under the public employees' retirement fund; and
        (2) the magistrate pays in a lump sum or in a series of payments determined by the board, not exceeding five (5) annual payments, the amount determined by the actuary for the judges' 1985 benefit system as the total cost of the service.
    (c) If the requirements of subsection (b) are not satisfied, a participant is entitled to credit only for years of service earned as a participant in the judges' 1985 benefit system.
    (d) An amortization schedule for contributions paid under this section must include interest at a rate determined by the board.
    (e) The following provisions apply to a person described in subsection (a):
        (1) A minimum benefit applies to participants receiving credit in the judges' 1985 benefit system from service covered by the public employees' retirement fund. The minimum benefit is payable at sixty-five (65) years of age or when the participant is at least fifty-five (55) years of age and meets the requirements under section 13(2)(B) of this chapter and equals the actuarial equivalent of the vested retirement benefit that is:
            (A) payable to the member at normal retirement under IC 5-10.2-4-1 as of the day before the transfer; and

             (B) based solely on:
                (i) creditable service;
                (ii) the average of the annual compensation; and
                (iii) the amount credited under IC 5-10.2 and IC 5-10.3 to the annuity savings account of the transferring member as of the day before the transfer.
        (2) If the requirements of subsection (b) are satisfied, the board shall transfer from the public employees' retirement fund to the judges' 1985 benefit system the amount credited to the annuity savings account and the present value of the retirement benefit payable at sixty-five (65) years of age or at least fifty-five (55) years of age under section 13(2)(B) of this chapter that is attributable to the transferring participant.

         (3) The amount the participant must contribute to the judges' 1985 benefit system under subsection (b) shall be reduced by the amount transferred to the judges' 1985 benefit system by the board under subdivision (2).
        (4) If the requirements of subsection (b) are satisfied, credit for service in the public employees' retirement fund as a full-time referee, full-time commissioner, or before July 1, 2010, full-time magistrate is waived. Any credit for the service under the judges' 1985 benefit system may be granted only under subsection (b).

     (f) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1985 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a rollover of a distribution from any of the following:
        (1) A qualified plan described in Section 401(a) or Section 403(a) of the Internal Revenue Code.
        (2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.

         (3) 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.
        (4) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code.
    (g) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1985 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a trustee to trustee transfer from any of the following:
        (1) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (2) An eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.

SOURCE: IC 33-38-8-23; (08)IN1257.1.23. -->     SECTION 23. IC 33-38-8-23 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 23. (a) This section applies only to a person who:
        (1) is:
             (A) a judge; or
            (B) after December 31, 2010, a judge or full-time magistrate;

        participating under this chapter;
        (2) before becoming:
             (A) a judge; or
            (B) after December 31, 2010, a judge or full-time magistrate;
        
was a member of a public employees' retirement fund;
        (3) received credited service under a public employees' retirement fund for the employment described in subdivision (2), and the credited service is not eligible for prior service credit under section 22 or 22.5 of this chapter;
        (4) has not attained vested status under a public employees' retirement fund for the employment described in subdivision (2); and
        (5) has at least eight (8) years of service credit in the judges' retirement system.
    (b) If a person becomes a participant in the judges' 1985 benefit system under this chapter, credit for service described in subsection (a) shall be granted under this chapter by the board if:
        (1) the prior service was credited under a public employees'

retirement fund; and
        (2) the judge or full-time magistrate pays in a lump sum or in a series of payments determined by the board, not exceeding five (5) annual payments, the amount determined by the actuary for the judges' 1985 benefit system as the total cost of the service.
    (c) If the requirements of subsection (b) are not satisfied, a participant is entitled to credit only for years of service after the date of participation in the judges' 1985 benefit system.
    (d) An amortization schedule for contributions paid under this section must include interest at a rate determined by the board.
    (e) If the requirements of subsection (b) are satisfied, the appropriate board shall transfer from the retirement fund described in subsection (a)(2) to the judges' 1985 benefit system the amount credited to the judge's or full-time magistrate's annuity savings account and the present value of the retirement benefit payable at sixty-five (65) years of age that is attributable to the transferring participant.
    (f) The amount a participant must contribute to the judges' 1985 benefit system under subsection (b) shall be reduced by the amount transferred to the judges' 1985 benefit system by the appropriate board under subsection (e).
    (g) If the requirements of subsection (b) are satisfied, credit for prior service in a public employees' retirement fund is waived.
    (h) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1985 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a rollover of a distribution from any of the following:
        (1) A qualified plan described in Section 401(a) or Section 403(a) of the Internal Revenue Code.
        (2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (3) 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.
        (4) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code.
    (i) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges' 1985 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a trustee to trustee transfer from any of the

following:
        (1) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (2) An eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.

SOURCE: IC 33-38-8-25; (08)IN1257.1.24. -->     SECTION 24. IC 33-38-8-25 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 25. (a) This section applies:
        (1) only to a participant:
            (A) who applies to receive a retirement benefit from the fund before January 1, 2010; or
            (B) who:
                (i) before January 1, 2010, separates from service;
                (ii) is entitled to receive a retirement benefit from the fund, but does not apply before January 1, 2010, to receive a retirement benefit; and
                (iii) does not earn any service credit in the fund after December 31, 2009; and
        (2) only in state fiscal years beginning after June 30, 2010.
    (b) If a salary increase is provided in a particular state fiscal year under IC 33-38-5-8.1, the monthly benefit payable under this chapter to a participant described in subsection (a) shall be increased by the same percentage by which salaries are increased under IC 33-38-5-8.1(b) in that state fiscal year. The percentage increase shall be applied to the monthly benefit (including any previous increases to the monthly benefit received under this section or under any other provision) received by the participant as of June 30 of the immediately preceding state fiscal year. The percentage increase to the monthly benefit takes effect at the same time that the salary increase under IC 33-38-5-8.1 takes effect.
    (c) This subsection applies only if:
        (1) a salary increase is not provided in a particular state fiscal year under IC 33-38-5-8.1; and
        (2) the salary of a judge is increased under IC 33-38-5-6, IC 33-38-5-8, or any other provision enacted by the general assembly in the state fiscal year.
The monthly benefit payable under this chapter to a participant described in subsection (a) shall be increased by the same percentage by which the salary being paid for the office that the participant held at the time of the participant's separation from service is increased under IC 33-38-5-6, IC 33-38-5-8, or any other provision enacted by the general assembly. The percentage

increase shall be applied to the monthly benefit (including any previous increases to the monthly benefit received under this section or under any other provision) received by the participant as of June 30 of the immediately preceding state fiscal year. The percentage increase to the monthly benefit takes effect at the same time that the salary increase under IC 33-38-5-6, IC 33-38-5-8, or any other provision enacted by the general assembly takes effect.
    (d) An increase payable under this section may not include any amount based on the percentage by which any salary provided by a county or counties under IC 36-2-5-14 or IC 36-3-6-3(c) is increased.