AN ACT to amend the Indiana Code concerning pensions.
not an active member in the public retirement fund from
which the fund member is purchasing service credit.
(3) Before the fund member retires, 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 for the 1977 fund,
that is based on the age of the fund member at the time
the fund member actually 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 service credit the fund
member intends to purchase.
(B) Contributions for any accrued interest, at a rate
determined by the actuary for 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.
(e) At the request of the fund member purchasing service credit
under this section, the amount a fund member is required to
contribute under subsection (d)(3) may be reduced by a trustee to
trustee transfer from the public retirement fund in which the fund
member has an account that contains amounts attributable to
member contributions (plus any credited earnings) to the 1977
fund. The fund member may direct the transfer of an amount only
to the extent necessary to fund the service purchase under
subsection (d)(3). The fund member shall complete any forms
required by the public retirement fund from which the fund
member is requesting a transfer or the 1977 fund before the
transfer is made.
(f) A fund member must have at least twenty (20) years of
service in the 1977 fund before a fund member may receive a
retirement benefit based on service credit purchased under this
section. A fund member's years of service may not exceed
thirty-two (32) years with the inclusion of the service credit
purchased under this section.
(g) A fund member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a retirement benefit
payment from the 1977 fund; or
(2) receives a retirement benefit for the same service from
another tax supported governmental retirement plan other
than the federal Social Security Act;
may withdraw the fund member's contributions made under this
section plus accumulated interest after submitting a properly
completed application for a refund to the 1977 fund.
(h) The following apply to the purchase of service credit under
this section:
(1) The PERF board may allow a fund member to make
periodic payments of the contributions required for the
purchase of the service credit. The PERF board shall
determine the length of the period during which the payments
may be made.
(2) The PERF 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 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 for
the purchase of the service credit.
(i) 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 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.
(j) 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 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.