HB 1546-1_ Filed 02/23/2009, 07:25 Niezgodski
Text Box
PREVAILED Roll Call No. _______
FAILED Ayes _______
WITHDRAWN Noes _______
RULED OUT OF ORDER
[
HOUSE MOTION ____
]
MR. SPEAKER:
I move that House Bill 1546 be amended to read as follows:
SOURCE: Page 3, line 14; (09)MO154601.3. -->
Page 3, between lines 14 and 15, begin a new paragraph and insert:
SOURCE: IC 5-10.2-1-8; (09)MO154601.2. -->
"SECTION 2. IC 5-10.2-1-8, AS AMENDED BY P.L.115-2008,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 8. (a)
Except as provided in subsection (b), For
a member of:
(1) the Indiana state teachers' retirement fund; or
(2) the public employees' retirement fund who retires before
January 1, 2010;
"vested status" as used in this article means the status of having ten
(10) years of creditable service.
(b) For a member of the public employees' retirement fund who
retires after December 31, 2009, "vested status" as used in this
article means the status of having at least eight (8) years of
creditable service.
(b) (c) In the case of a person who is an elected county official
whose governing body has provided for the county official's
participation in the public employees' retirement fund under
IC 5-10.3-7-2(1), "vested status" means the status of:
having:
(1)
having at least eight (8) years of creditable service as an
elected county official in an office described in IC 5-10.2-4-1.7;
(2)
having been elected at least two (2) times if the person would
have had at least eight (8) years of creditable service as an elected
county official in an office described in IC 5-10.2-4-1.7 had the
person's term of office not been shortened under a statute enacted
under Article 6, Section 2(b) of the Constitution of the State of
Indiana; or
(3) having:
(A) before January 1, 2010, at least ten (10) years of
creditable service; or
(B) after December 31, 2009, at least eight (8) years of
creditable service;
as a member of the fund based on a combination of service as an
elected county official and as a full-time employee in a covered
position.
(c) (d) In the case of a person whose term of office commences after
the election on November 5, 2002, as auditor of state, secretary of state,
or treasurer of state, and who is prohibited by Article 6, Section 1 of the
Constitution of the State of Indiana from serving in that office for more
than eight (8) years during any period of twelve (12) years, that person
shall be vested with at least eight (8) years of creditable service as a
member of the fund.
(d) (e) This subsection applies to an individual elected to the office
of treasurer of state at the election on November 7, 2006. The
individual is vested for purposes of this article if the individual is
reelected as treasurer of state at the 2010 general election and serves
in the office until January 1, 2015.".
SOURCE: Page 6, line 4; (09)MO154601.6. -->
Page 6, between lines 4 and 5, begin a new paragraph and insert:
SOURCE: IC 5-10.2-3-1.2; (09)MO154601.4. -->
"SECTION 4. IC 5-10.2-3-1.2, AS AMENDED BY P.L.115-2008,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 1.2. (a) A member who:
(1) before January 1, 2010, has earned at least ten (10) years of
service in a position covered by PERF, TRF, or a combination of
the two (2) funds; or
(2) after December 31, 2009, has earned:
(A) at least eight (8) years of service in a position covered
by PERF; or
(B) at least ten (10) years of service in:
(i) a position covered by TRF; or
(ii) a combination of one (1) or more positions covered by
PERF and one (1) or more positions covered by TRF;
may purchase one (1) year of service credit for each five (5) years of
service that the member has completed in a position covered by PERF
or TRF.
(b) Before a member retires, a member who desires to purchase
additional service credit under subsection (a) must contribute to the
fund as follows:
(1) Contributions that are equal to the product of the following:
(A) The member's salary at the time the member actually
makes a contribution for the service credit.
(B) A rate, determined by the actuary for the fund, that is
based on the age of the member at the time the member
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 years of service credit the member intends
to purchase.
(2) Contributions for any accrued interest, at a rate determined by
the actuary for the fund, for the period from the member's initial
membership in the fund to the date payment is made by the
member.
(c) 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 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 the purpose of
computing benefits unless the member 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, a member 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(a) 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
Code.
(d) A member who terminates employment before satisfying the
eligibility requirements necessary to receive a monthly benefit may
withdraw the purchase amount, plus accumulated interest, after
submitting a properly completed application for a refund to the fund.
However, the member must also apply for a refund of the member's
entire annuity savings account under section 6 or 6.5 of this chapter to
be eligible for a refund of the member's rollover amount.
(e) For a member who is a state employee, the employer may pay all
or a part of the member contributions required for the purchase of
service credit under this section. In that event, the actuary shall
determine the amortization, and subsections (c)(1), (c)(3), (c)(4), and
(d) do not apply.
(f) For a member who is an employee of a participating political
subdivision, the employer may adopt an ordinance to pay all or a part
of the member contributions required for the purchase of service credit
under this section. In that event, the actuary shall determine the
amortization, and subsections (c)(1), (c)(3), (c)(4), and (d) do not
apply.
SOURCE: IC 5-10.2-4-1; (09)MO154601.5. -->
SECTION 5. IC 5-10.2-4-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 1. (a) This subsection
applies to:
(1) members of the public employees' retirement fund who retire
before July 1, 1995; and
(2) members of the Indiana state teachers' retirement fund who
retire before May 2, 1989.
A member who has reached age sixty-five (65) and has at least ten (10)
years of creditable service is eligible for normal retirement.
(b) This subsection applies to members of the Indiana state teachers'
retirement fund who retire after May 1, 1989, and to members of the
public employees' retirement fund who retire after June 30, 1995,
and
before January 1, 2010, except as provided in section 1.7 of this
chapter. A member is eligible for normal retirement if:
(1) the member is at least sixty-five (65) years of age and has at
least ten (10) years of creditable service;
(2) the member is at least sixty (60) years of age and has at least
fifteen (15) years of creditable service; or
(3) the member's age in years plus the member's years of service
is at least eighty-five (85) and the member is at least fifty-five
(55) years of age.
(c) This subsection applies to a member of the public employees'
retirement fund who retires after December 31, 2009. A member
is eligible for normal retirement if:
(1) the member is at least sixty-five (65) years of age and has
at least eight (8) years of creditable service;
(2) the member is at least sixty (60) years of age and has at
least fifteen (15) years of creditable service; or
(3) the member's age in years plus the member's years of
service is at least eighty-five (85) and the member is at least
fifty-five (55) years of age.
(c) (d) A member who has reached age fifty (50) and has at least
fifteen (15) years of creditable service is eligible for early retirement
with a reduced pension.
(d) (e) A member who is eligible for normal or early retirement is
entitled to choose a retirement date on which the member's benefit
begins if the following conditions are met:
(1) The application for retirement benefits and the choice of the
date is filed on a form provided by the board.
(2) The date must be after the cessation of the member's service
and be the first day of a month.
(3) The retirement date is not more than six (6) months before the
date the application is received by the board. However, if the
board determines that a member is incompetent to file for benefits
and choose a retirement date, the retirement date may be any date
that is the first of the month after the time the member became
incompetent.
SOURCE: IC 5-10.2-4-1.7; (09)MO154601.6. -->
SECTION 6. IC 5-10.2-4-1.7, AS AMENDED BY P.L.88-2005,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 1.7. (a) This section applies only to members of
the public employees' retirement fund who retire after June 30, 2002.
(b) A member is eligible for normal retirement after becoming
sixty-five (65) years of age if the member:
(1) has:
(A) served as an elected county official in an office described
in Article 6, Section 2 of the Constitution of the State of
Indiana for at least eight (8) years; or
(B) been elected at least two (2) times and would have served
at least eight (8) years as an elected county official in an office
described in Article 6, Section 2 of the Constitution of the
State of Indiana had the member's term of office not been
shortened under a statute enacted under Article 6, Section 2(b)
of the Constitution of the State of Indiana; and
(2) is prohibited by Article 6, Section 2 of the Constitution of the
State of Indiana from serving in that office for more than eight (8)
years in any period of twelve (12) years.
(c) A member who:
(1) has served as an elected county official; and
(2) does not meet the requirements of subsection (b);
is eligible for normal retirement if the member has attained vested
status (as defined in IC 5-10.2-1-8(b)(3)) IC 5-10.2-1-8(c)(3)) and
meets the requirements of section 1 of this chapter.
SOURCE: IC 5-10.2-4-1.9; (09)MO154601.7. -->
SECTION 7. IC 5-10.2-4-1.9, AS ADDED BY P.L.115-2008,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 1.9. (a) This section applies only to a member of
the public employees' retirement fund:
(1) who has served as a state officer listed in Article 6, Section 1
of the Constitution of the State of Indiana; and
(2) whose term of office as a state officer commenced after the
election held on November 5, 2002.
(b) A member is eligible for normal retirement after becoming
sixty-five (65) years of age if the member:
(1) has:
(A) served as a state officer listed in Article 6, Section 1 of the
Constitution of the State of Indiana for at least eight (8) years;
or
(B) been elected at least two (2) times and would have served
at least eight (8) years as a state officer listed in Article 6,
Section 1 of the Constitution of the State of Indiana had the
member's term of office not been shortened under a statute
enacted to establish uniform dates for beginning the terms of
state officers listed in Article 6, Section 1 of the Constitution
of the State of Indiana; and
(2) is prohibited by Article 6, Section 1 of the Constitution of the
State of Indiana from serving in that office for more than eight (8)
years in any period of twelve (12) years.
(c) A member who:
(1) has served as a state officer listed in Article 6, Section 1 of the
Constitution of the State of Indiana; and
(2) does not meet the requirements of subsection (b);
is eligible for normal retirement if the member has attained vested
status (as defined in IC 5-10.2-1-8(a)) IC 5-10.2-1-8) and meets the
requirements of section 1 of this chapter.".
SOURCE: Page 7, line 28; (09)MO154601.7. -->
Page 7, between lines 28 and 29, begin a new paragraph and insert:
SOURCE: IC 5-10.3-3-1; (09)MO154601.9. -->
"SECTION 9. IC 5-10.3-3-1, AS AMENDED BY P.L.62-2005,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 1. (a) The board is composed of six (6) trustees.
(b) Five (5) of the trustees shall be appointed by the governor, as
follows:
(1) One (1) must be a member of the fund with:
(A) before January 1, 2010, at least ten (10) years of
creditable service;
or
(B) after December 31, 2009, at least eight (8) years of
creditable service.
(2) Not more than three (3) may be members of the same political
party.
(3) One (1) must be:
(A) a:
(i) member of the fund or retired member of the fund; or
(ii) member of a collective bargaining unit of state
employees represented by a labor organization; or
(B) an individual who is:
(i) an officer or a member of a local, a national, or an
international labor union that represents state or university
employees; and
(ii) an Indiana resident.
(c) The director of the budget agency or the director's designee is an
ex officio voting member of the board. An individual appointed under
this subsection to serve as the director's designee:
(1) is subject to the provisions of section 3 of this chapter; and
(2) serves as a permanent designee until replaced by the director.
(d) The governor shall fill by appointment vacancies on the board
in the manner described in subsection (b).
(e) In making the appointments under subsection (b)(1) or (b)(2),
the governor may consider whether at least one (1) trustee is a retired
member of the fund under subsection (b)(3)(A)(i).
SOURCE: IC 5-10.3-6-8; (09)MO154601.10. -->
SECTION 10. IC 5-10.3-6-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 8. (a) As used in this
section, "withdrawing political subdivision" means a political
subdivision that takes an action described in subsection (b).
(b) Subject to the provisions of this section, a political subdivision
may do the following:
(1) Stop its participation in the fund and withdraw all of the
political subdivision's employees from participation in the fund.
(2) Withdraw a departmental, an occupational, or other definable
classification of employees from participation in the fund.
(3) Stop the political subdivision's participation in the fund by:
(A) selling all of the political subdivision's assets; or
(B) ceasing to exist as a political subdivision.
(c) The withdrawal of a political subdivision's participation in the
fund is effective on a termination date established by the board. The
termination date may not occur before all of the following have
occurred:
(1) The withdrawing political subdivision has provided written
notice of the following to the board:
(A) The withdrawing political subdivision's intent to cease
participation.
(B) The names of the withdrawing political subdivision's
current employees and former employees as of the date on
which the notice is provided.
(2) The expiration of:
(A) a ninety (90) day period following the filing of the notice
with the board, for a withdrawing political subdivision that
sells all of the withdrawing political subdivision's assets or that
ceases to exist as a political subdivision; or
(B) a two (2) year period following the filing of the notice with
the board, for all other withdrawing political subdivisions.
(3) The withdrawing political subdivision takes all actions
required in subsections (d) through (h).
(d) With respect to retired members who have creditable service
with the withdrawing political subdivision, the withdrawing political
subdivision must contribute to the fund any additional amounts that the
board determines are necessary to provide for reserves with sufficient
assets to pay all future benefits from the fund to those retired members.
The contribution by the withdrawing political subdivision must be
made in a lump sum or in a series of payments determined by the
board.
(e) A member who is an employee of the political subdivision as of
the date of the notice under subsection (c) is vested in the pension
portion of the member's retirement benefit. The withdrawing political
subdivision must contribute to the fund the amount the board
determines is necessary to fund fully the vested benefit. The
contribution by the withdrawing political subdivision must be made in
a lump sum or in a series of payments determined by the board.
(f) A member who is covered by subsection (e) and who is at least
sixty-five (65) years of age may elect to retire under IC 5-10.2-4-1 even
if the member has:
(1) before January 1, 2010, fewer than ten (10) years of service;
or
(2) after December 31, 2009, fewer than eight (8) years of
service.
The benefit for the member shall be computed under IC 5-10.2-4-4
using the member's actual years of service.
(g) With respect to members of the fund who have creditable service
with the withdrawing political subdivision and who are not employees
as of the date of the notice under subsection (c), the withdrawing
political subdivision must contribute the amount that the board
determines is necessary to fund fully the service for those members that
is attributable to service with the withdrawing political subdivision.
The contribution by the withdrawing political subdivision must be
made in a lump sum or in a series of payments determined by the
board.
(h) The board shall evaluate each withdrawal under this section to
determine if the withdrawal affects the fund's compliance with Section
401(a)(4) of the Internal Revenue Code of 1954, as in effect on
September 1, 1974. The board may deny a political subdivision
permission to withdraw if the denial is necessary to achieve compliance
with Section 401(a)(4) of the Internal Revenue Code of 1954, as in
effect on September 1, 1974.
SOURCE: IC 5-10.3-6-8.5; (09)MO154601.11. -->
SECTION 11. IC 5-10.3-6-8.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 8.5. (a) This section
only applies if:
(1) certain employees of a state university in a departmental,
occupational, or other definable classification involved in health
care are terminated from employment with the state university as
a result of:
(A) a lease or other transfer of university property to a
nongovernmental entity; or
(B) a contractual arrangement with a nongovernmental entity
to perform certain state university functions;
(2) the state university requests coverage under this section from
the board; and
(3) the board approves the request.
(b) The withdrawal of the employees described in subsection (a)
from the fund is effective on a termination date established by the
board. The board may not establish a termination date that occurs
before all of the following have occurred:
(1) The state university has requested coverage under this section
and provided written notice of the following to the board:
(A) The intent of the state university to terminate the
employees from employment.
(B) The names of the terminated employees as of the date that
the termination is to occur.
(2) The expiration of a thirty (30) day period following the filing
of the notice with the board.
(3) The state university fully complies with subsection (c).
(c) A member who is an employee of the state university described
in subsection (a) as of the date of the notice under subsection (b) and
who is listed in the notice under subsection (b) is vested in the pension
portion of the member's retirement benefit. The state university must
contribute to the fund the amount the board determines is necessary to
completely fund the vested benefit. The contribution by the state
university must be made in a lump sum or in a series of payments
determined by the board.
(d) A member who is covered by subsection (c) and who is at least
sixty-five (65) years of age may elect to retire under IC 5-10.2-4-1 even
if the member has:
(1) before January 1, 2010, less than ten (10) years of service;
or
(2) after December 31, 2009, less than eight (8) years of
service.
The benefit for the member shall be computed under IC 5-10.2-4-4
using the member's actual years of creditable service.
(e) The board shall evaluate each withdrawal under this section to
determine if the withdrawal affects the fund's compliance with Section
401(a) of the Internal Revenue Code of 1954, as in effect on September
1, 1974. The board may deny an employee permission to withdraw if
the denial is necessary to achieve compliance with Section 401(a) of
the Internal Revenue Code of 1954, as in effect on September 1, 1974.
SOURCE: IC 5-10.3-6-8.9; (09)MO154601.12. -->
SECTION 12. IC 5-10.3-6-8.9, AS ADDED BY P.L.158-2006,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 8.9. (a) This section applies when certain
employees of the state in particular departmental, occupational, or
other definable classifications are terminated from employment with
the state as a result of:
(1) a lease or other transfer of state property to a nongovernmental
entity; or
(2) a contractual arrangement with a nongovernmental entity to
perform certain state functions.
(b) The governor shall request coverage under this section from the
board whenever an employee of the state is terminated as described in
subsection (a).
(c) The board must approve a request from the governor under
subsection (b) unless approval violates subsection (k), federal or state
law, or the terms of the fund.
(d) As used in this section, "early retirement" means a member is
eligible to retire with a reduced pension under IC 5-10.2-4-1, because
the member:
(1) is at least fifty (50) years of age; and
(2) has at least fifteen (15) years of creditable service.
(e) As used in this section, "normal retirement" means a member is
eligible to retire under IC 5-10.2-4-1, because:
(1) the member is at least sixty-five (65) years of age and has:
(A) before January 1, 2010, at least ten (10) years of
creditable service;
or
(B) after December 31, 2009, at least eight (8) years of
creditable service.
(2) the member is at least sixty (60) years of age and has at least
fifteen (15) years of creditable service; or
(3) the member's age in years plus the member's years of service
is at least eighty-five (85) and the member is at least fifty-five
(55) years of age.
(f) The withdrawal of the employees described in subsection (a)
from the fund is effective on a termination date established by the
board. The board may not establish a termination date that occurs
before all of the following have occurred:
(1) The governor has requested coverage under this section and
provided written notice of the following to the board:
(A) The intent of the state to terminate the employees from
employment.
(B) The names of the terminated employees as of the date that
the termination is to occur.
(2) The expiration of a thirty (30) day period following the filing
of the notice with the board.
(3) The state complies with subsections (g) and (i).
(g) A member who:
(1) is an employee of the state described in subsection (a) with at
least twenty-four (24) months of creditable service as of the date
of the notice under subsection (f); and
(2) is listed in the notice under subsection (f);
is vested in the pension portion of the member's retirement benefit. The
state must contribute to the fund the amount the board determines is
necessary to completely fund the vested benefit. The contribution by
the state must be made in a lump sum or in a series of payments
determined by the board. The benefit for the member shall be
computed under IC 5-10.2-4-4 using the member's actual years of
creditable service.
(h) A member who is covered by subsection (g) and who is at least
sixty-five (65) years of age as of the date of the notice under subsection
(f) may elect to retire under IC 5-10.2-4-1 even if the member has:
(1) before January 1, 2010, less than ten (10) years of service;
or
(2) after December 31, 2009, less then eight (8) years of
service.
The benefit for the member shall be computed under IC 5-10.2-4-4
using the member's actual years of creditable service.
(i) A member who is covered by subsection (f) and who, as of the
date of the notice under subsection (f), is less than twenty-four (24)
months from being eligible for normal or early retirement under
IC 5-10.2-4-1 may elect to retire by purchasing the service credit
needed for retirement under the following conditions:
(1) The state shall contribute to the fund an amount determined
under IC 5-10.2-3-1.2 and payable from the sources described in
subsection (j) sufficient to pay the member's contributions
required for the member's purchase of the service credit the
member needs to retire.
(2) The maximum amount of creditable service that the state may
purchase for a member under this subsection is twenty-four (24)
months.
(3) The benefit for the member shall be computed under
IC 5-10.2-4-4 using the member's actual years of creditable
service plus all other service for which the fund gives credit,
including the creditable service purchased under this subsection.
(j) The amounts that the state is required to contribute to the fund
under subsection (i) must come from the following sources:
(1) If the state receives monetary payments under the lease or
contractual arrangement described in subsection (a), the proceeds
of the monetary payments received by the state. The state may not
require, as a condition of the transaction to transfer state property
or have certain state functions performed by a nongovernmental
entity, that the nongovernmental entity directly or indirectly pay
the amounts that the state is required to contribute under
subsection (i).
(2) If the state does not receive any monetary payments under the
lease or contractual arrangement described in subsection (a), any
remaining appropriations made to the state department, agency,
or other entity terminating the employees described in subsection
(a).
(3) If the sources described in subdivisions (1) and (2) do not
fully fund the amounts that the state is required to contribute to
the fund under subsection (i), the board shall request that the
general assembly appropriate the amount necessary to fully fund
the state's required contribution under subsection (i) in the next
biennial state budget.
(k) The board shall evaluate each withdrawal under this section to
determine if the withdrawal affects the fund's compliance with Section
401(a) of the Internal Revenue Code of 1954, as in effect on September
1, 1974. The board may deny an employee permission to withdraw if
the denial is necessary to achieve compliance with Section 401(a) of
the Internal Revenue Code of 1954, as in effect on September 1, 1974.
SOURCE: IC 5-10.3-7-4.5; (09)MO154601.13. -->
SECTION 13. IC 5-10.3-7-4.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 4.5. (a) As used in this
section, "out-of-state service" means service in another state in a
comparable position that would be creditable service if performed in
Indiana.
(b) Subject to subsections (c) through (f), a member may purchase
out-of-state service credit if the member meets the following
requirements:
(1) The member has at least one (1) year of creditable service in
the fund.
(2) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The member's salary at the time the member actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, based on
the age of the member at the time the member actually
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.
(iii) The number of years of out-of-state service the member
intends to purchase.
(B) Contributions for any accrued interest, at a rate determined
by the actuary for the fund, for the period from the member's
initial membership in the fund to the date payment is made by
the member.
(3) The member has received verification from the fund that the
out-of-state service is, as of that date, valid.
(c) Out-of-state years that qualify a member for retirement in an
out-of-state system or in any federal retirement system may not be
granted under this section.
(d) At least:
(1) before January 1, 2010, ten (10); or
(2) after December 31, 2009, eight (8);
years of service in Indiana is required before a member may receive a
benefit based on out-of-state service credits.
(e) 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 Social Security Act;
may withdraw the purchase amount plus accumulated interest after
submitting a properly completed application for a refund to the fund.
(f) 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.
SOURCE: IC 5-10.3-7-4.6; (09)MO154601.14. -->
SECTION 14. IC 5-10.3-7-4.6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 4.6. (a) Subject to the
provisions of this section, a member may purchase service credit for
the member's prior service in a position covered by the 1925 police
pension fund under IC 36-8-6, the 1937 firefighters' pension fund under
IC 36-8-7, or the 1953 police pension fund under IC 36-8-7.5 if the
member meets the following requirements:
(1) The member has at least one (1) year of credited service in the
fund.
(2) The member has not attained vested status in and is not an
active member of the 1925 police pension fund, the 1937
firefighters' pension fund, or the 1953 police pension fund.
(3) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The member's salary at the time the member actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, based on
the age of the member at the time the member actually
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.
(iii) The number of years of service credit the member
intends to purchase.
(B) Contributions for any accrued interest, at a rate determined
by the actuary for 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 has received verification from the fund that the
service in the 1925 police pension fund, the 1937 firefighters'
pension fund, or the 1953 police pension fund is, as of that date,
valid.
(b) At least:
(1) before January 1, 2010, ten (10); or
(2) after December 31, 2009, eight (8);
years of service in Indiana is required before a member may receive a
benefit based on service credits purchased under this section.
(c) 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 Social Security Act;
may withdraw the purchase amount plus accumulated interest after
submitting a properly completed application for a refund to the fund.
(d) 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.
SOURCE: IC 5-10.3-7-4.8; (09)MO154601.15. -->
SECTION 15. IC 5-10.3-7-4.8, AS ADDED BY P.L.148-2007,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: 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:
(A) before January 1, 2010, ten (10);
or
(B) after December 31, 2009, eight (8);
years of in-state 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.
SOURCE: IC 5-10.3-7-5; (09)MO154601.16. -->
SECTION 16. IC 5-10.3-7-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 5. (a) A member who:
(1) enters the United States armed services;
(2) leaves
his the member's contributions in the fund;
(3) except as provided in subsection (c), resumes service with
his
the member's employer within one hundred twenty (120) days
after
his the member's unconditional discharge; and
(4) would be entitled to service credit for military service under
the Uniformed Services Employment and Reemployment Rights
Act (38 U.S.C. 4301 et seq.) if the member had resumed service
with the member's employer within ninety (90) days after
discharge;
is entitled to service credit for the armed service.
(b) A state employee who left employment before January 1, 1946,
or an employee of a political subdivision who left employment before
the participation date, to enter the United States armed services is
entitled to service credit for the armed service if
he: the employee:
(1) except as provided in subsection (c), resumes service with the
employer within one hundred twenty (120) days after
his the
employee's unconditional discharge; and
(2) would be entitled to service credit for military service under
the applicable requirements of federal law in effect at the time of
reemployment if the employee had resumed service with the
employee's employer within ninety (90) days after discharge.
(c) The board shall extend the one hundred twenty (120) day
reemployment requirement contained in subsection (a)(3) or (b)(1) if
the board determines that an illness, an injury, or a disability related to
the member's military service prevented the member from resuming
employment within one hundred twenty (120) days after the member's
discharge from military service. However, the board may not extend the
deadline beyond thirty (30) months after the member's discharge.
(d) If a member retires and the board subsequently determines that
the member is entitled to additional service credit due to the extension
of a deadline under subsection (c), the board shall recompute the
member's benefit. However, the additional service credit may be used
only in the computation of benefits to be paid after the date of the
board's determination, and the member is not entitled to a
recomputation of benefits received before the date of the board's
determination.
(e) Notwithstanding any provision of this section, a member is
entitled to service credit and benefits in the amount and to the extent
required by the Uniformed Services Employment and Reemployment
Rights Act (38 U.S.C. 4301 et seq.).
(f) Subject to the provisions of this section, an active member may
purchase not more than two (2) years of service credit for the member's
service on active duty in the armed services if the member meets the
following conditions:
(1) The member has at least one (1) year of credited service in the
fund.
(2) The member serves on active duty in the armed services of the
United States for at least six (6) months.
(3) The member receives an honorable discharge from the armed
services.
(4) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The member's salary at the time the member actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, that is
based on the age of the member at the time the member
actually 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.
(iii) The number of years of service credit the member
intends to purchase.
(B) Contributions 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.
However, a member is entitled to purchase service credit under this
subsection only to the extent that service credit is not granted for that
time under another provision of this section. At least before January
1, 2010, ten (10) or after December 31, 2009, eight (8) years of
service in Indiana is required before a member may receive a benefit
based on service credits purchased under this section. A member who
terminates employment before satisfying the eligibility requirements
necessary to receive a monthly allowance or 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 purchase amount plus accumulated interest after
submitting a properly completed application for a refund to the fund.
(g) The following apply to the purchase of service credit under
subsection (f):
(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.".
SOURCE: Page 7, line 36; (09)MO154601.7. -->
Page 7, line 36, delete "September" and insert "
October".
Page 8, line 1, after "check" insert "
at the same time that the
monthly benefit is paid".
Renumber all SECTIONS consecutively.
(Reference is to HB 1546 as printed February 17, 2009.)
________________________________________
Representative Niezgodski
MO154601/DI 102 2009