Citations Affected: IC 5-10.5; IC 36-8; noncode.
January 5, 2011, read first time and referred to Committee on Veterans Affairs and Public
February 15, 2011, reported _ Do Pass.
February 17, 2011, read second time, ordered engrossed. Engrossed.
February 21, 2011, read third time, passed. Yeas 100, nays 0.
to appeal: (A) a recommendation by the local board; (B) an initial determination by the committee; or (C) an initial default determination made by the PERF medical authority. Requires that a member or survivor apply to the local board within two years of the receipt of a PERF board's notice that the PERF board has received a favorable ruling from the Internal Revenue Service. (2) Provides that an active member of the 1977 fund who has entered the deferred retirement option plan (DROP) before July 1, 2011, may elect to exit the DROP and receive a partial lump sum distribution. Provides that a 1977 fund member who enters the DROP after June 30, 2011, may not elect to receive a partial lump sum distribution. (3) Provides a thirteenth check to participants of the state excise police, gaming agent, gaming control officer, and conservation officers' retirement fund. (3) Repeals or deletes provisions in the statutes governing the following quasi-governmental entities that give those entities the option of establishing a code of ethics for their employees or being under the jurisdiction of the state ethics commission (the state ethics commission statute provides that these entities are "agencies" for purposes of the commission's jurisdiction): (A) Indiana finance authority. (B) Indiana bond bank. (C) PERF. (D) Indiana state teachers' retirement fund. (E) Board for depositories. (F) Indiana housing and community development authority. (G) Ports of Indiana. (H) Bureau of motor vehicles commission. (I) Indiana homeland security foundation. (J) Indiana natural resources foundation. (K) Indiana White River state park development commission. (L) State fair commission. (M) State student assistance commission. (N) Indiana grain indemnity corporation. (O) Indiana political subdivision risk management commission. (The introduced version of this bill was prepared by the pension management oversight commission.)
A BILL FOR AN ACT to amend the Indiana Code concerning
or survivor of a fund member who is receiving a disability benefit
under section 13.3(b) of this chapter.
(b) A fund member or survivor of a fund member described in subsection (a) may file an application, in accordance with this section, requesting a determination that:
(1) the member's covered impairment, as determined under section 13.3(b) of this chapter, was:
(A) the direct result of:
(i) a personal injury that occurred while the fund member was on duty;
(ii) a personal injury that occurred while the fund member was off duty and was responding to an offense or a reported offense, in the case of a police officer, or an emergency or reported emergency for which the fund member was trained, in the case of a firefighter; or
(iii) an occupational disease (as defined in IC 22-3-7-10), including a duty related disease that is also included within clause (B);
(B) a duty related disease, which for purposes of this section, means a disease arising out of the fund member's employment. A disease is considered to arise out of the fund member's employment if it is apparent to the rational mind, upon consideration of all of the circumstances, that:
(i) there is a connection between the conditions under which the fund member's duties are performed and the disease;
(ii) the disease can be seen to have followed as a natural incident of the fund member's duties as a result of the exposure occasioned by the nature of the fund member's duties; and
(iii) the disease can be traced to the fund member's employment as the proximate cause; or
(C) a disability presumed incurred in the line of duty under IC 5-10-13 or IC 5-10-15; or
(2) the member's covered impairment, as determined under section 13.3(b) of this chapter, was not a covered impairment described in subsection (b)(1).
The application must be filed with the local board that made the determination of a covered impairment resulting in a disability benefit under section 13.3(b) of this chapter. The application form shall be prepared by the PERF board or its designee and be made available to a fund member or survivor of a fund member
described in subsection (a) upon request.
(c) A fund member or survivor of a fund member who files an application under this section has the burden of presenting sufficient evidence to support a finding that the member's covered impairment, as determined under section 13.3(b) of this chapter, satisfies the standard provided in subsection (b)(1). Such evidence may include any documents, materials, or other evidence provided in connection with the original hearing and determination of a covered impairment as determined under section 13.3(b) of this chapter, including any transcript from that proceeding. A fund member or a survivor of a fund member may include with an application any additional probative evidence that is relevant to the determination under subsection (b)(1). The local board may establish reasonable procedures with respect to the application process and may engage a medical authority to provide opinions relevant to making its determination. The local board may hold a hearing with respect to an application filed under this section if the fund member or survivor of a fund member shows good cause that documents or other probative evidence sufficient to make the showing required under this subsection is not reasonably obtainable and that holding a hearing would be reasonably likely to provide such probative evidence. If the local board conducts a hearing, it shall be subject to the provisions of section 12.7 of this chapter relating to the conduct of hearings on the determinations of covered impairments under this chapter.
(d) The local board shall make its recommendation, including findings of fact, in writing and shall provide copies of its recommendation to the fund member or survivor of the fund member, the 1977 fund advisory committee, and the PERF board no later than thirty (30) days after the:
(1) filing of the application, if no hearing is held; or
(2) hearing, if held.
(e) If the local board does not issue its recommendation within the time required under subsection (d), the member's covered impairment shall be considered to be a covered impairment described under subsection (b)(1) for purposes of the local board's recommendation.
(f) The 1977 fund advisory committee shall review the local board's recommendation, or the considered recommendation under subsection (e), not later than forty-five (45) days after receiving the recommendation and shall then issue an initial determination of whether the covered impairment is one described
under subsection (b)(1). The 1977 fund advisory committee shall
notify the PERF board, the local board, and the fund member or
survivor of the fund member of its initial determination, and the
PERF board or its designee will issue a final determination to the
local board and the fund member or survivor of the fund member.
If no objection is made to the initial determination under
subsection (g) or (h), the PERF board must issue a final
determination not later than thirty (30) days after receiving an
(g) The fund member or survivor of the fund member or the local board may object in writing to the 1977 fund advisory committee's initial determination under subsection (f) not later than fifteen (15) days after the initial determination is issued by filing an objection with the PERF board. If a written objection is not filed, the 1977 advisory committee's initial determination becomes final. If a timely written objection is filed, the PERF board shall issue a final determination after a hearing. Unless an administrative law judge orders a waiver or an extension of the period for cause shown, the final determination must be issued not later than one hundred eighty (180) days after the date of receipt of the local board's recommendation.
(h) If the 1977 fund advisory committee fails to issue an initial determination within forty-five (45) days after receiving the local board's recommendation, the default determination on whether the covered impairment is one described under subsection (b)(1) will be the determination made by PERF's medical authority. An objection to this determination may be filed in accordance with the provisions of subsection (g).
(i) A determination that a member's covered impairment is one described under subsection (b)(1) will apply only on a prospective basis beginning on January 1 of the calendar year in which the determination is made. The amount of the benefit will not be changed as a result of this determination.
(j) A fund member or survivor of a fund member described in subsection (a) must file an application under this section no later than two (2) years after the date the PERF board notifies the fund members and survivors described in subsection (a) that the board has received a favorable ruling from the Internal Revenue Service. The PERF board will provide notice of receipt of a favorable ruling within thirty (30) days of its receipt.
(k) This section expires July 1, 2021.
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 24.8. (a) This section does not apply to a fund
member who elects to enter the DROP (as defined in IC 36-8-8.5-4)
under IC 36-8-8.5 after June 30, 2011.
(b) This subsection applies to a fund member who enters the DROP (as defined in IC 36-8-8.5-4) before July 1, 2011, and:
(1) does not, before July 1, 2011, exit the DROP as provided in IC 36-8-8.5-14; or
(2) before July 1, 2011, exits the DROP without retiring.
A fund member to whom this subsection applies may elect to receive a partial lump sum distribution under this section. If a fund member makes an election under this subsection and has not exited the DROP, the fund member shall exit the DROP on the date the fund member's election under this subsection is effective. The retirement benefits of a fund member who makes an election under this subsection are calculated as if the fund member had never entered the DROP.
(b) (c) Benefits paid under this section are subject to section 2.5 of
(c) (d) As used in this section, "partial lump sum distribution"
means the amount calculated under subsection (f). (g).
(d) (e) After June 30, 2010, a fund member may elect to receive at
retirement a partial lump sum distribution if the fund member meets all
of the following requirements on the date of the election:
(1) The fund member is in active service.
(2) The fund member qualifies for a retirement fund benefit payment under section 10(b) of this chapter.
(e) (f) A fund member's election under subsection (d): (e):
(1) must be in writing;
(2) must be filed with the PERF board, on a form prescribed by the PERF board; and
(3) is irrevocable.
(f) (g) The partial lump sum distribution for a fund member who
makes an election described in subsection (d) (e) is determined in
STEP TWO of the following formula:
STEP ONE: Determine the lesser of the following:
(A) The fund member's years of service for which the fund member has received service credit in the fund.
(B) Thirty-two (32).
STEP TWO: Multiply the STEP ONE amount by the fund member's monthly benefit calculated under section 11(b) of this chapter.
IC 5-20-1-4.1; IC 8-10-1-7.1; IC 9-15-2-2.2; IC 10-15-2-11;
IC 14-12-1-10.1; IC 14-13-1-14.5; IC 15-13-2-13; IC 21-11-9-3;
IC 26-4-3-10; IC 27-1-29-27.1.