]
COMMITTEE REPORT
YES:
9
NO:
1
MR. SPEAKER:
Your Committee on Labor and Employment , to which was referred House Bill
1008 , has had the same under consideration and begs leave to report the same back to the
House with the recommendation that said bill be amended as follows:
SOURCE: Page 1, line 1; (10)AM100801.1. -->
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
SOURCE: IC 33-39-7-26; (10)AM100801.1. -->
"SECTION 1. IC 33-39-7-26 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2010]:
Sec. 26. (a) This section applies to a participant who, after
June 30, 2010, completes service for which the fund gives credit.
(b) As used in this section, "out-of-state service" means service
in another state in a comparable position for which the participant
would receive service credit in the fund if the service had been
performed in Indiana.
(c) Subject to subsections (d) through (g), a participant may
purchase out-of-state service credit if the participant meets the
following requirements:
(1) The participant has at least one (1) year of credited service
in the fund.
(2) Before the participant retires, the participant makes
contributions to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The participant's annual salary at the time the
participant makes a contribution for the service credit.
(ii) A rate, determined by the actuary for the fund, that
is based on the age of the participant at the time the
participant makes a contribution for the service credit
and that 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 out-of-state service credit
the participant intends to purchase.
(B) Contributions for any accrued interest, at a rate
determined by the actuary for the fund, for the period
from the participant's initial membership in the fund to the
date payment is made by the participant.
(3) The participant has received verification from the fund
that the out-of-state service is, as of the date payment is made
by the participant, valid.
(d) A participant must have at least eight (8) years of service
before the participant may receive a benefit based on service credit
purchased under this section.
(e) A participant may not receive service credit under this
section if the service for which the participant requests credit also
qualifies the participant for a benefit in another governmental
retirement system.
(f) A participant who:
(1) terminates service before satisfying the eligibility
requirements necessary to receive a retirement benefit
payment from the 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 participant's contributions made under this
section plus accumulated interest after submitting to the fund a
properly completed application for a refund.
(g) The following apply to the purchase of service credit under
this section:
(1) The board may allow a participant 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) The participant may not claim the service credit for
purposes of determining eligibility or computing benefits
unless the participant has made all payments required for the
purchase of the service credit.
(h) To the extent permitted by the Internal Revenue Code and
the applicable regulations, the fund may accept, on behalf of a
participant 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 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 a 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.
(i) To the extent permitted by the Internal Revenue Code and
the applicable regulations, the fund may accept, on behalf of a
participant 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.".
Renumber all SECTIONS consecutively.
(Reference is to HB 1008 as introduced.)
and when so amended that said bill do pass.
__________________________________
Representative Niezgodski
AM100801/DI 96 2010