YES:
MR. SPEAKER:
Your Committee on Ways and Means , to which was referred House Bill 1056 ,
has had the same under consideration and begs leave to report the same back to the House with
the recommendation that said bill be amended as follows:
service under another section of this chapter;
is entitled to service credit in the 1977 fund in an amount equal to
the length of the fund member's military service. However, not
more than six (6) years of service credit in the 1977 fund may be
granted under this section. The service credit granted under this
section may be used only in the computation of benefits to be paid
after June 30, 2009, and only after the PERF board determines
that the fund member is eligible for the service credit in the 1977
fund.
(b) A fund member is entitled to receive service credit in the
1977 fund for the active duty service described in subsection (a) if:
(1) the fund member pays in a lump sum or in a series of
payments determined by the PERF board, not to exceed five
(5) annual payments, the amount the fund member would
have contributed to the 1977 fund, if the fund member had
been a member of the 1977 fund during the active duty
service; and
(2) the fund member's employer contributes to the 1977 fund
the amount the PERF board determines necessary to amortize
the active duty service liability over a period determined by
the PERF board, but not more than ten (10) years.
(c) An amortization schedule for contributions paid under
subsection (b)(1) or (b)(2) must include interest at a rate
determined by the PERF board.
(d) A fund member who:
(1) terminates service before satisfying the requirements for
eligibility to receive a retirement benefit payment from the
1977 fund; or
(2) receives a retirement benefit for the same service from
another retirement system, other than under the federal
Social Security Act;
may withdraw the fund member's contributions made under this
section plus accumulated interest after submitting to the 1977 fund
a properly completed application for a refund.
(e) The following apply to the granting of service credit in the
1977 fund under this section:
(1) The PERF board may not grant credit for the service if
doing so would exceed the limitations set forth in Section 415
of the Internal Revenue Code.
(2) A fund member may not claim the service credit for
purposes of determining eligibility or computing benefits
unless the fund member has made all payments required
under subsection (b)(1).
(f) To the extent permitted by the Internal Revenue Code and
applicable regulations, the 1977 fund may accept, on behalf of a
fund member who is purchasing service credit under this section,
a rollover of a distribution from any of the following:
(1) A qualified plan described in Section 401(a) or 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 408(b) of the Internal Revenue Code.
(g) To the extent permitted by the Internal Revenue Code and
the applicable regulations, the 1977 fund may accept, on behalf of
a fund member who is purchasing service credit under this section,
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.
(h) Notwithstanding any provision in this section, a fund
member is entitled to service credit and benefits in the amount and
to the extent required by the federal Uniformed Services
Employment and Reemployment Rights Act (38 U.S.C. 4301 et
seq.), including all amendments.
(i) Before implementing this section, the PERF board may
request from the Internal Revenue Service any rulings or
determination letters that the PERF board considers necessary or
appropriate.
1, 2009]: Sec. 8.5. (a) This section applies to a fund member who,
after June 30, 2009, completes active service for which the 1977
fund gives credit.
(b) A fund member may purchase not more than two (2) years
of service credit for the fund member's service on active duty in the
armed services of the United States if the fund member meets the
following conditions:
(1) The fund member has at least one (1) year of active service
for which the 1977 fund gives credit.
(2) The fund member serves on active duty in the armed
services of the United States for at least six (6) months.
(3) The fund member receives an honorable discharge from
the armed services.
(4) Before the fund member applies to receive a retirement
benefit payment, the fund member makes contributions to the
1977 fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The salary of a first class patrolman or firefighter at
the time the fund member actually makes a contribution
for the service credit.
(ii) A rate, determined by the actuary of the 1977 fund,
that is based on the age of the fund member at the time
the fund member actually makes a contribution for
service credit and is computed to result in a contribution
amount that approximates the actuarial present value of
the retirement benefit attributable to the service credit
purchased.
(iii) The number of years of service credit the fund
member intends to purchase.
(B) Contributions for any accrued interest, at a rate
determined by the actuary of the 1977 fund, for the period
from the fund member's initial membership in the 1977
fund to the date payment is made by the fund member.
(c) A fund member may not receive service credit under this
section if the military service for which the fund member requests
credit also qualifies the fund member for a benefit in a military or
another governmental retirement system.
Section 408(a) or 408(b) of the Internal Revenue Code.
(g) To the extent permitted by the Internal Revenue Code and
the applicable regulations, the 1977 fund may accept, on behalf of
a fund member who is purchasing service credit under this section,
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.
(h) Notwithstanding any provision in this section, a fund
member is entitled to service credit and benefits in the amount and
to the extent required by the federal Uniformed Services
Employment and Reemployment Rights Act (38 U.S.C. 4301 et
seq.), including all amendments.
(i) Before implementing this section, the PERF board may
request from the Internal Revenue Service any rulings or
determination letters that the PERF board considers necessary or
appropriate.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1056 as introduced.)
and when so amended that said bill do pass.