March 29, 2011
ENGROSSED
SENATE BILL No. 549
_____
DIGEST OF SB 549
(Updated March 29, 2011 9:23 am - DI 96)
Citations Affected: IC 2-3.5; IC 4-2; IC 5-10; IC 5-10.2; IC 5-10.3;
IC 5-10.4; IC 5-10.5; IC 33-38; IC 33-39; IC 36-8; noncode.
Synopsis: Indiana public retirement system. Establishes the Indiana
public retirement system (system) to administer and manage: (1) the
public employees' retirement fund (PERF); (2) the teachers' retirement
fund (TRF); (3) the judges' retirement fund; (4) the prosecuting
attorneys retirement fund; (5) the state excise police, gaming agent,
gaming control officer, and conservation enforcement officers'
retirement fund; (6) the 1977 police officers' and firefighters' pension
and disability fund (1977 Fund); (7) the legislators' retirement system;
(8) the pension relief fund; (9) the special death benefit fund; and (10)
the state employees' death benefit fund. Creates a nine member board
of trustees (board) for the system appointed by the governor as follows:
(1) at least one member with experience in economics, finance, or
investments; (2) at least one member with experience in executive
(Continued next page)
Boots
, Buck
, Walker,
Young R Michael
(HOUSE SPONSORS _ TORR, ELLSPERMANN)
January 20, 2011, read first time and referred to Committee on Pensions and Labor.
January 27, 2011, amended, reported favorably _ Do Pass.
February 7, 2011, read second time, amended, ordered engrossed.
February 8, 2011, engrossed.
February 10, 2011, read third time, passed. Yeas 48, nays 1.
HOUSE ACTION
March 28, 2011, read first time and referred to Committee on Employment, Labor and
Pensions.
March 29, 2011, reported _ Do Pass.
Digest Continued
management or benefits administration; (3) the director of the budget
agency (or designee) serving as an ex officio voting member; (4) two
members nominated by the speaker of the house of representatives: one
an active or retired police officer or firefighter who is a member of the
1977 Fund and one TRF member; (5) two members nominated by the
president pro tempore of the senate: one PERF member and one TRF
member; (6) one member nominated by the auditor of state: the auditor
of state or an individual with experience in professional financial
accounting or actuarial science; and (7) one member nominated by the
treasurer of state: the treasurer of state or an individual with experience
in economics, finance, or investments. Requires that initial
appointments to the board give a preference for those individuals who,
on June 30, 2011, are serving as trustees of PERF and TRF, and
provides that a PERF or TRF trustee appointed to the board serves until
the trustee's term would have expired under prior law. Provides for a
four year term for trustees. Provides that a trustee is strongly
encouraged to complete annually at least 12 hours of trustee education.
Provides that five trustees constitute a quorum and requires a majority
vote of the trustees present in order for the board to adopt a resolution
or take other action at a regular or special meeting. Requires the
system's chief investment officer and the officer's staff to file annual
financial disclosure statements with the inspector general. Provides that
the board's powers and duties are the combined powers and duties of
the PERF and TRF boards. Provides that each retirement fund
continues as a separate fund managed by the board. Provides for a
director of the system who is appointed by and serves at the pleasure
of the board. Provides that employees of PERF and TRF remain
members of those funds. Provides that new hires of the system become
PERF members, unless the director expressly determines otherwise.
Allows the board to establish contribution rate groups for PERF, and
removes the requirement that each employer have a separate account
within the retirement allowance account. Eliminates the 1977 Fund
advisory committee. Authorizes the board to adopt rules without
complying with IC 4-22-2 in establishing impairment standards, a list
of excludable medical conditions, and standards and tests for the
baseline statewide physical examination for the 1977 Fund. Repeals
provisions that establish the PERF and TRF boards and require PERF
and TRF to hire a common director. Repeals corresponding definitions
and cross-references.
March 29, 2011
First Regular Session 117th General Assembly (2011)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2010 Regular Session of the General Assembly.
ENGROSSED
SENATE BILL No. 549
A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 2-3.5-2-2.7; (11)ES0549.1.1. -->
SECTION 1. IC 2-3.5-2-2.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2011]: Sec. 2.7. (a) "Board" refers to the board of trustees of the
Indiana public retirement system established by IC 5-10.5-3-1.
(b) References in this article to the PERF board or TRF board
shall be considered after June 30, 2011, to be references to the
board of trustees of the Indiana public retirement system
established by IC 5-10.5-3-1.
SOURCE: IC 4-2-6-8; (11)ES0549.1.2. -->
SECTION 2. IC 4-2-6-8, AS AMENDED BY P.L.89-2006,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 8. (a) The following persons shall file a written
financial disclosure statement:
(1) The governor, lieutenant governor, secretary of state, auditor
of state, treasurer of state, attorney general, and state
superintendent of public instruction.
(2) Any candidate for one (1) of the offices in subdivision (1) who
is not the holder of one (1) of those offices.
(3) Any person who is the appointing authority of an agency.
(4) The director of each division of the department of
administration.
(5) Any purchasing agent within the procurement division of the
department of administration.
(6) Any agency employee, special state appointee, former agency
employee, or former special state appointee with final purchasing
authority.
(7) The chief investment officer employed by the Indiana
public retirement system.
(8) Any employee of the Indiana public retirement system
whose duties include the recommendation, selection, and
management of:
(A) the investments of the funds administered by the
Indiana public retirement system;
(B) the investment options offered in the annuity savings
accounts in the public employees' retirement fund and the
Indiana state teachers' retirement fund;
(C) the investment options offered in the legislators'
defined contribution plan; or
(D) investment managers, investment advisors, and other
investment service providers of the Indiana public
retirement system.
(7) (9) An employee required to do so by rule adopted by the
inspector general.
(b) The statement shall be filed with the inspector general as
follows:
(1) Not later than February 1 of every year, in the case of the state
officers and employees enumerated in subsection (a).
(2) If the individual has not previously filed under subdivision (1)
during the present calendar year and is filing as a candidate for a
state office listed in subsection (a)(1), before filing a declaration
of candidacy under IC 3-8-2 or IC 3-8-4-11, petition of
nomination under IC 3-8-6, or declaration of intent to be a
write-in candidate under IC 3-8-2-2.5, or before a certificate of
nomination is filed under IC 3-8-7-8, in the case of a candidate for
one (1) of the state offices (unless the statement has already been
filed when required under IC 3-8-4-11).
(3) Not later than sixty (60) days after employment or taking
office, unless the previous employment or office required the
filing of a statement under this section.
(4) Not later than thirty (30) days after leaving employment or
office, unless the subsequent employment or office requires the
filing of a statement under this section.
The statement must be made under affirmation.
(c) The statement shall set forth the following information for the
preceding calendar year or, in the case of a state officer or employee
who leaves office or employment, the period since a previous statement
was filed:
(1) The name and address of any person known:
(A) to have a business relationship with the agency of the state
officer or employee or the office sought by the candidate; and
(B) from whom the state officer, candidate, or the employee,
or that individual's spouse or unemancipated children received
a gift or gifts having a total fair market value in excess of one
hundred dollars ($100).
(2) The location of all real property in which the state officer,
candidate, or the employee or that individual's spouse or
unemancipated children has an equitable or legal interest either
amounting to five thousand dollars ($5,000) or more or
comprising ten percent (10%) of the state officer's, candidate's, or
the employee's net worth or the net worth of that individual's
spouse or unemancipated children. An individual's primary
personal residence need not be listed, unless it also serves as
income property.
(3) The names and the nature of the business of the employers of
the state officer, candidate, or the employee and that individual's
spouse.
(4) The following information about any sole proprietorship
owned or professional practice operated by the state officer,
candidate, or the employee or that individual's spouse:
(A) The name of the sole proprietorship or professional
practice.
(B) The nature of the business.
(C) Whether any clients are known to have had a business
relationship with the agency of the state officer or employee or
the office sought by the candidate.
(D) The name of any client or customer from whom the state
officer, candidate, employee, or that individual's spouse
received more than thirty-three percent (33%) of the state
officer's, candidate's, employee's, or that individual's spouse's
nonstate income in a year.
(5) The name of any partnership of which the state officer,
candidate, or the employee or that individual's spouse is a member
and the nature of the partnership's business.
(6) The name of any corporation (other than a church) of which
the state officer, candidate, or the employee or that individual's
spouse is an officer or a director and the nature of the
corporation's business.
(7) The name of any corporation in which the state officer,
candidate, or the employee or that individual's spouse or
unemancipated children own stock or stock options having a fair
market value in excess of ten thousand dollars ($10,000).
However, if the stock is held in a blind trust, the name of the
administrator of the trust must be disclosed on the statement
instead of the name of the corporation. A time or demand deposit
in a financial institution or insurance policy need not be listed.
(8) The name and address of the most recent former employer.
(9) Additional information that the person making the disclosure
chooses to include.
Any such state officer, candidate, or employee may file an amended
statement upon discovery of additional information required to be
reported.
(d) A person who:
(1) fails to file a statement required by rule or this section in a
timely manner; or
(2) files a deficient statement;
upon a majority vote of the commission, is subject to a civil penalty at
a rate of not more than ten dollars ($10) for each day the statement
remains delinquent or deficient. The maximum penalty under this
subsection is one thousand dollars ($1,000).
(e) A person who intentionally or knowingly files a false statement
commits a Class A infraction.
SOURCE: IC 5-10-5.5-1; (11)ES0549.1.3. -->
SECTION 3. IC 5-10-5.5-1, AS AMENDED BY P.L.227-2007,
SECTION 51, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 1. As used in this chapter and unless the context
clearly denotes otherwise:
(1) "Board" refers to the board of trustees of the Indiana
public retirement system established by IC 5-10.5-3-1.
(a) (2) "Department" means the Indiana department of natural
resources.
(b) (3) "Commission" means the alcohol and tobacco commission.
(c) (4) "Officer" means any Indiana state excise police officer, any
Indiana state conservation enforcement officer, any gaming agent,
or any gaming control officer.
(d) (5) "Participant" means any officer who has elected to
participate in the retirement plan created by this chapter.
(e) (6) "Salary" means the total compensation, exclusive of
expense allowances, paid to any officer by the department or the
commission, determined without regard to any salary reduction
agreement established under Section 125 of the Internal Revenue
Code.
(f) (7) "Average annual salary" means the average annual salary
of an officer during the five (5) years of highest annual salary in
the ten (10) years immediately preceding an officer's retirement
date, determined without regard to any salary reduction agreement
established under Section 125 of the Internal Revenue Code.
(g) (8) "Public employees' retirement act" means IC 5-10.3.
(h) (9) "Public employees' retirement fund" means the public
employees' retirement fund created by IC 5-10.3-2.
(i) (10) "Interest" means the same rate of interest as is specified
under the public employees' retirement law.
(j) (11) "Americans with Disabilities Act" refers to the Americans
with Disabilities Act (42 U.S.C. 12101 et seq.) and any
amendments and regulations related to the Act.
(k) (12) Other words and phrases when used in this chapter shall,
for the purposes of this chapter, have the meanings respectively
ascribed to them as set forth in IC 5-10.3-1.
SOURCE: IC 5-10-5.5-3; (11)ES0549.1.4. -->
SECTION 4. IC 5-10-5.5-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. (a) The management
administration of the retirement plan created by this chapter is hereby
vested in the board. of trustees of the public employees' retirement
fund.
(b) Records of individual participants in the retirement plan created
by this chapter and participants' information are confidential, except for
the name and years of service of a retirement plan participant.
SOURCE: IC 5-10-5.5-7.5; (11)ES0549.1.5. -->
SECTION 5. IC 5-10-5.5-7.5, AS ADDED BY P.L.180-2007,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 7.5. (a) As used in this section, "board" refers to
the board of trustees of the
public employees' retirement fund
established by IC 5-10.3-3-1. Indiana public retirement system
established by IC 5-10.5-3-1.
(b) As used in this section, "public retirement fund" refers
collectively to:
(1) the public employees' retirement fund (IC 5-10.3);
(2) the Indiana state teachers' retirement fund (IC 5-10.4);
(3) the state police pension trust (IC 10-12); and
(4) the 1977 police officers' and firefighters' pension and
disability fund (IC 36-8-8).
(c) Subject to this section, a participant may purchase service credit
for the participant's prior service in a position covered by a public
retirement fund.
(d) To purchase the service credit described in subsection (c), a
participant must meet the following requirements:
(1) The participant has at least one (1) year of creditable service
in the retirement plan created by this chapter.
(2) The participant has not attained vested status in and is not an
active participant in the public retirement fund from which the
participant is purchasing the service credit.
(3) Before the participant retires, the participant makes
contributions to the retirement plan created by this chapter as
follows:
(A) Contributions that are equal to the product of the
following:
(i) The participant's salary at the time the participant actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary for the retirement plan
created by this chapter, based on the age of the participant
at the time the participant 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 participant
intends to purchase.
(B) Contributions for any accrued interest, at a rate determined
by the actuary for the retirement plan created by this chapter,
for the period from the participant's initial participation in the
retirement plan created by this chapter to the date payment is
made by the participant.
(e) At the request of the participant purchasing service credit under
this section, the amount a participant is required to contribute under
subsection (d)(3) may be reduced by a trustee to trustee transfer from
a public retirement fund in which the participant has an account that
contains amounts attributable to member contributions (plus any
credited earnings) to the retirement plan created by this chapter. The
participant may direct the transfer of an amount only to the extent
necessary to fund the service purchase under subsection (d)(3). The
participant shall complete any forms required by the public retirement
fund from which the participant is requesting a transfer or the
retirement plan created by this chapter before the transfer is made.
(f) At least ten (10) years of service in the retirement plan created
by this chapter is required before a participant may receive a benefit
based on service credit purchased under this section.
(g) A participant who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive an annual retirement
allowance; or
(2) receives an annual retirement allowance for the same service
from another tax supported governmental 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
retirement plan created by this chapter.
(h) The following may 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) A participant may not claim the service credit for purposes of
determining eligibility for a benefit or computing benefits unless
the participant 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 retirement plan created by this chapter may
accept, on behalf of a participant who is purchasing permissive service
credit under this chapter, 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
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 Section 408(b) of the Internal Revenue Code.
(j) To the extent permitted by the Internal Revenue Code and
applicable regulations, the retirement plan created by this chapter may
accept, on behalf of a participant who is purchasing permissive service
credit under this chapter, 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.
SOURCE: IC 5-10.2-1-1; (11)ES0549.1.6. -->
SECTION 6. IC 5-10.2-1-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. Board. "Board", as
used in this article, means the board of trustees of the Indiana state
teachers' retirement fund and the board of trustees of the public
employees' retirement fund. Indiana public retirement system
established by IC 5-10.5-3-1.
SOURCE: IC 5-10.2-2-1; (11)ES0549.1.7. -->
SECTION 7. IC 5-10.2-2-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1.
Scope; Purpose. (a)
This article applies to the Indiana state teachers' retirement fund and
the public employees' retirement fund. Each retirement fund covered
by this article is a separate retirement fund managed by
its the board
under
its the fund's retirement fund law.
Each The board shall make
and publish regulations which are appropriate to the efficient
administration of this article. The obligations of the state and political
subdivisions for benefit payments are specified in each retirement fund
law.
(b)
Each fund The Indiana public retirement system is an
independent body corporate and politic.
A fund The Indiana public
retirement system is not a department or agency of the state but is an
independent instrumentality exercising essential government functions.
(c) For purposes of IC 34-13-2, IC 34-13-3, and IC 34-13-4, each
board, each fund, and all employees of each board or fund are public
employees (as defined in IC 34-6-2-38). All employees of each board
or fund employed within a classification covered by a labor agreement
to which the state is a party shall continue to remain subject to the
terms and conditions of that agreement and any successor labor
agreements entered into by the state.
(d) (c) The benefits specified in this article and the benefits from the
Social Security Act provide the retirement, disability, and survivor
benefits for public employees and teachers. However, this article does
not prohibit a political subdivision from establishing and providing
before January 1, 1995, and continuing to provide after January 1,
1995, retirement, disability, and survivor benefits for the public
employees of the political subdivision independent of this article if the
political subdivision took action before January 1, 1995, and was not
a participant in the public employees' retirement fund on January 1,
1995, under this article or IC 5-10.3.
SOURCE: IC 5-10.2-2-2; (11)ES0549.1.8. -->
SECTION 8. IC 5-10.2-2-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. (a) The board of the
public employees' retirement fund shall maintain the following separate
accounts in the public employees' retirement fund:
(1) The annuity savings account.
(2) The retirement allowance account.
(b) The board of the Indiana state teachers' retirement fund shall
maintain the following two (2) separate accounts in the Indiana state
teachers' retirement fund:
(1) The pre-1996 account.
(2) The 1996 account.
(c) Within each account specified in subsection (b), the board of the
Indiana state teachers' retirement fund shall maintain the following
separate subaccounts:
(1) The annuity savings account.
(2) The retirement allowance account.
SOURCE: IC 5-10.2-2-6; (11)ES0549.1.9. -->
SECTION 9. IC 5-10.2-2-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. (a) The retirement
allowance account of the public employees' retirement fund consists of
the retirement fund, exclusive of the annuity savings account. For the
public employees' retirement fund, separate accounts within the
retirement allowance account shall be maintained for contributions
made by the state and by each political subdivision. each contribution
rate group.
(b) The retirement allowance account of the pre-1996 account
consists of the pre-1996 account, exclusive of the annuity savings
account.
(c) The retirement allowance account of the 1996 account consists
of the 1996 account, exclusive of the annuity savings account. For the
1996 account, separate accounts within the retirement allowance
account shall be maintained for contributions made by the state, by
each school corporation, and by each institution.
SOURCE: IC 5-10.2-2-11; (11)ES0549.1.10. -->
SECTION 10. IC 5-10.2-2-11, AS AMENDED BY
P.L.182-2009(ss), SECTION 70, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 11. (a) Based on the
actuarial investigation and valuation in section 9 of this chapter, each
board shall determine:
(1) the normal contribution for the employer, each contribution
rate group, which is the amount necessary to fund the pension
portion of the retirement benefit;
(2) the rate of normal contribution;
(3) the unfunded accrued liability of the public employees'
retirement fund, the pre-1996 account, and the 1996 account,
which is the excess of total accrued liability over the fund's or
account's total assets, respectively; and
(4) the rates of contribution for the state expressed as a proportion
of compensation of members, which would be period, which
must be thirty (30) years or a shorter period, necessary to
(A) amortize the unfunded accrued liability of the state for
determined in subdivision (3). thirty (30) years or for a
shorter time period. requested by the budget agency or the
governor. and
(B) prevent the state's unfunded accrued liability from
increasing.
(b) Based on the information in subsection (a), each board may
determine, in its sole discretion, contributions and contribution rates for
individual employers or for a group of employers.
(c) The board's determinations under subsection (a):
(1) are subject to sections 1.5 and 11.5 of this chapter; and
(2) for an employer making a contribution to the Indiana state
teachers' retirement fund, may not include an amount for a retired
member of the Indiana state teachers' retirement fund for whom
the employer may not make contributions during the member's
period of reemployment as provided under IC 5-10.2-4-8(d).
SOURCE: IC 5-10.2-9-2; (11)ES0549.1.11. -->
SECTION 11. IC 5-10.2-9-2, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 2. As used in this chapter, "board" refers to the
following:
(1) The board of trustees of the Indiana state teachers' retirement
fund.
(2) The board of trustees of the public employees' retirement fund.
board of trustees of the Indiana public retirement system
established by IC 5-10.5-3-1.
SOURCE: IC 5-10.2-10-3; (11)ES0549.1.12. -->
SECTION 12. IC 5-10.2-10-3, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 3. As used in this chapter, "board" refers to the
following:
(1) The board of trustees of the Indiana state teachers' retirement
fund.
(2) the board of trustees of the public employees' retirement fund.
board of trustees of the Indiana public retirement system
established by IC 5-10.5-3-1.
SOURCE: IC 5-10.3-1-1; (11)ES0549.1.13. -->
SECTION 13. IC 5-10.3-1-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. Board. "Board" as
used in this article means the board of trustees of the public employees'
retirement fund. Indiana public retirement system established by
IC 5-10.5-3-1.
SOURCE: IC 5-10.3-1-2.5; (11)ES0549.1.14. -->
SECTION 14. IC 5-10.3-1-2.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2.5. As used in this
article, "director" refers to the director of the fund. Indiana public
retirement system established by IC 5-10.5-2-1.
SOURCE: IC 5-10.3-2-1; (11)ES0549.1.15. -->
SECTION 15. IC 5-10.3-2-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. Establishment of
Fund and Board. (a) The public employees' retirement fund of Indiana,
referred to as the fund, is established to pay benefits to officers and
employees of the state and its political subdivisions after specified
years of service and under other specified circumstances. The purpose
of the fund is to promote economy and efficiency in the administration
of state and local government by providing an orderly way for members
to be retired without prejudice and without inflicting hardship on the
retired member.
(b) The fund is a trust. The board of trustees of the public
employees' retirement fund, referred to as the board, Indiana public
retirement system shall administer the fund and implement this
article, without the supervision of the department of insurance.
SOURCE: IC 5-10.3-3-10; (11)ES0549.1.16. -->
SECTION 16. IC 5-10.3-3-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10. The Actuary. The
actuary is the technical advisor on the operation of the fund. The
actuary shall perform the duties specified in this article and in
IC 5-10.2 and all other duties assigned by the board.
SOURCE: IC 5-10.3-6-2; (11)ES0549.1.17. -->
SECTION 17. IC 5-10.3-6-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2.
Preliminary Survey.
The governing body may request a preliminary survey, at its expense
as determined by the board, to determine the estimated cost of
participation. The board and its actuary shall give an estimate of the
costs, the benefits, and other appropriate information.
However, a
governing body of a unit that is participating in the fund is not required
to request a survey, and the board and its actuary are not required to
give an estimate when:
(1) the unit adopts a resolution or ordinance providing that
additional classifications of employees will become members of
the fund; and
(2) the actuary for the fund finds there would be no material
change in the current or continued employer contribution rate for
that unit because of the additional classification.
SOURCE: IC 5-10.3-6-4; (11)ES0549.1.18. -->
SECTION 18. IC 5-10.3-6-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. Accounts. The board
shall maintain separate accounts for each political subdivision.
contribution rate group. Credits and charges to these accounts shall
be made as prescribed in IC 5-10.2-2.
SOURCE: IC 5-10.3-6-10; (11)ES0549.1.19. -->
SECTION 19. IC 5-10.3-6-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10. Transfer of Assets.
(a) If a political subdivision with a retirement system becomes a
participant, the moneys and securities in the retirement system shall be
transferred to the fund. If the securities to be transferred are not
acceptable to the board, they shall be converted to cash, which shall be
transferred to the fund.
(b) Moneys received by the fund shall first be applied to set up a
reserve equal to the present value of benefits payable to retired
members. The excess of the moneys shall be used to offset the charge
to the political subdivision for unfunded accrued liability for active
members.
(c) (b) If there are insufficient funds for the reserve required in
subsection (b) of this section, transferred under subsection (a), then
the political subdivision shall pay the fund, either in a single payment
or in installment payments approved by the board, the amount needed.
to establish the reserve. If the political subdivision is unable to make
any payment, the board may reduce proportionately each benefit
payable to retired members.
(d) (c) The liabilities of a retirement system which is transferred to
the fund are not liabilities of the fund, except as provided by agreement
between the fund and the political subdivision.
SOURCE: IC 5-10.3-11-1; (11)ES0549.1.20. -->
SECTION 20. IC 5-10.3-11-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 1. There is created
within the public employees' retirement fund a separate account known
as the pension relief fund. This fund is administered by the board of
trustees of the public employees' retirement fund, Indiana public
retirement system, referred to as the "state board" in this chapter. The
pension relief fund consists of revenues received under
IC 6-7-1-28.1(4), IC 7.1-4-12-1, any appropriations to the fund, and
earnings on these revenues.
SOURCE: IC 5-10.4-1-5; (11)ES0549.1.21. -->
SECTION 21. IC 5-10.4-1-5, AS ADDED BY P.L.2-2006,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 5. "Board" refers to the board of trustees of the
Indiana state teachers' retirement fund. Indiana public retirement
system established by IC 5-10.5-3-1.
SOURCE: IC 5-10.5; (11)ES0549.1.22. -->
SECTION 22. IC 5-10.5 IS ADDED TO THE INDIANA CODE AS
A
NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2011]:
ARTICLE 10.5. INDIANA PUBLIC PENSION
MODERNIZATION ACT
Chapter 1. Definitions
Sec. 1. The definitions in this chapter apply throughout this
article.
Sec. 2. "Board" refers to the board of trustees of the system
established by IC 5-10.5-3-1.
Sec. 3. "Director" refers to the director of the system.
Sec. 4. "Public employees' retirement fund" means the public
employees' retirement fund established under IC 5-10.2 and
IC 5-10.3.
Sec. 5. "Public pension and retirement funds of the system"
means the public pension and retirement funds listed in
IC 5-10.5-2-2.
Sec. 6. "System" refers to the Indiana public retirement system
established by IC 5-10.5-2-1.
Sec. 7. "Teachers' retirement fund" means the Indiana state
teachers' retirement fund established under IC 5-10.2 and
IC 5-10.4.
Chapter 2. Indiana Public Retirement System
Sec. 1. On July 1, 2011, the Indiana public retirement system is
established.
Sec. 2. The system consists of the following public pension or
retirement funds:
(1) The public employees' retirement fund established under
IC 5-10.2 and IC 5-10.3.
(2) The Indiana state teachers' retirement fund established
under IC 5-10.2 and IC 5-10.4.
(3) The Indiana judges' retirement fund established under
IC 33-38-6.
(4) The prosecuting attorneys retirement fund established
under IC 33-39-7.
(5) The state excise police, gaming agent, gaming control
officer, and conservation enforcement officers' retirement
fund established under IC 5-10-5.5.
(6) The 1977 police officers' and firefighters' pension and
disability fund established under IC 36-8-8.
(7) The legislators' retirement system established under
IC 2-3.5.
(8) The pension relief fund established under IC 5-10.3-11.
(9) The special death benefit fund established under
IC 5-10-10.
(10) The state employees' death benefit fund established under
IC 5-10-11.
Sec. 3. The system is an independent body corporate and politic.
The system is not a department or agency of the state but is an
independent instrumentality exercising essential government
functions.
Sec. 4. For purposes of IC 34-13-2, IC 34-13-3, and IC 34-13-4,
the board, the system, and all employees of the board or the system
are public employees (as defined in IC 34-6-2-38). All employees of
the board or a fund administered by the board who are employed
within a classification covered by a labor agreement to which the
state is a party shall continue to remain subject to the terms and
conditions of that agreement and any successor labor agreements
entered into by the state.
Sec. 5. The system shall be managed and administered by a
board of trustees established under IC 5-10.5-3.
Sec. 6. Each public pension or retirement fund listed in section
2 of this chapter is a separate fund managed by the board under
this article and the retirement law applicable to the public pension
or retirement fund. The obligations of the state and political
subdivisions for benefit payments are specified in the retirement
law applicable to each public pension or retirement fund.
Chapter 3. Board of Trustees
Sec. 1. (a) The board of trustees of the Indiana public retirement
system is established.
(b) The board shall manage and administer each public pension
or retirement fund that comprises the system in accordance with:
(1) this article; and
(2) the retirement law applicable to the public pension or
retirement fund.
Sec. 2. (a) The board is composed of nine (9) trustees appointed
by the governor as follows:
(1) At least one (1) trustee must have experience in economics,
finance, or investments.
(2) At least one (1) trustee must have experience in executive
management or benefits administration.
(3) The director of the budget agency or the budget agency
director's designee serving as an ex officio voting member of
the board. An individual appointed under this subdivision to
serve as the budget agency director's designee:
(A) is subject to section 5 of this chapter; and
(B) serves as a permanent designee until replaced by the
budget agency director.
(4) Two (2) trustees nominated by the speaker of the house of
representatives as follows:
(A) One (1) must be an active or retired police officer or
firefighter who is a member of the 1977 police officers' and
firefighters' pension and disability fund.
(B) One (1) must be a member of the teachers' retirement
fund with at least ten (10) years of creditable service.
(5) Two (2) trustees nominated by the president pro tempore
of the senate as follows:
(A) One (1) must be a member of the public employees'
retirement fund with at least ten (10) years of creditable
service.
(B) One (1) must be a member of the teachers' retirement
fund with at least ten (10) years of creditable service.
(6) One (1) trustee nominated by the auditor of state. The
individual nominated under this subdivision may be the
auditor of state or another individual who has experience in
professional financial accounting or actuarial science.
(7) One (1) trustee nominated by the treasurer of state. The
individual nominated under this subdivision may be the
treasurer of state or another individual who has experience in
economics, finance, or investments.
(b) If a vacancy on the board occurs, the governor shall, not
later than forty-five (45) days after the date the vacancy occurs,
appoint an individual to fill the vacancy using the criteria in
subsection (a).
(c) During the first year after an individual's initial appointment
as a trustee and each year thereafter during which the individual
serves as a trustee, the individual is strongly encouraged to
complete at least twelve (12) hours of trustee education, at least
two (2) hours in each of the following areas:
(1) Fiduciary duties and responsibilities of a trustee.
(2) Ethics.
(3) Governance process and procedures.
(4) Retirement plan design and administration.
(5) Investments.
(6) Actuarial principles and methods.
(d) Subject to the director's approval, each trustee is entitled to
reimbursement for reasonable expenses actually incurred in
fulfilling the educational requirements under subsection (c). The
director shall give a preference for reimbursement for in-state
training that meets the requirements under subsection (c), if
in-state training is available.
Sec. 3. (a) A trustee shall serve a term of four (4) years,
beginning on July 1 following the trustee's appointment.
(b) Whenever a trustee is appointed to fill a vacancy caused by
death or resignation, the trustee shall serve the unexpired term of
the trustee's predecessor.
(c) A trustee shall serve until the trustee's successor is appointed
and qualified.
Sec. 4. (a) In making the initial appointments to the board under
section 2(a) of this chapter, the governor shall do the following:
(1) Appoint individuals to the initial terms of office under
section 2 of this chapter not later than July 15, 2011.
(2) In making appointments under subdivision (1), give a
preference for appointment, consistent with the criteria in
section 2(a) of this chapter, to those individuals who, on June
30, 2011, are serving as trustees of the public employees'
retirement fund and the teachers' retirement fund.
(b) A trustee appointed under subsection (a)(2) shall serve until
the trustee's term would have expired under IC 5-10.3-3-2
(repealed) and IC 5-10.4-3-2 (repealed).
(c) The initial terms of office for the individuals appointed
under subsection (a) begin July 1, 2011.
(d) This section expires January 1, 2016.
Sec. 5. (a) Each trustee shall take an oath of office. The oath
must be:
(1) subscribed to by the trustee making the oath;
(2) certified by the officer before whom the trustee takes the
oath; and
(3) filed with the secretary of state.
(b) A trustee is qualified for membership on the board when the
trustee's oath is filed with the secretary of state.
Sec. 6. (a) Each trustee is entitled to reimbursement for
necessary expenses actually incurred through service on the board.
(b) Trustee expenses shall be paid from fund assets.
Sec. 7. (a) Not later than June 30 each year, the board shall elect
a chair and vice chair from its members to serve as the officers of
the board.
(b) An officer shall serve for one (1) year or until the officer's
successor is elected and qualified.
Sec. 8. (a) The board shall hold regular meetings at least
quarterly.
(b) The board may hold special meetings:
(1) at the call of the chair; or
(2) with a written request signed by at least five (5) trustees.
(c) The board may hold its meetings at the system's general
offices or at any other place in Indiana that the board designates.
(d) All meetings must be open to the public in accordance with
IC 5-14-1.5.
(e) The board shall keep a record of its proceedings.
Sec. 9. (a) This section applies to any meeting of the board.
(b) A member of the board may participate in a meeting of the
board using any means of communication that permits:
(1) all other board members participating in the meeting; and
(2) all members of the public physically present at the place
where the meeting is conducted;
to simultaneously communicate with the member during the
meeting.
(c) A member of the board who participates in a meeting under
subsection (b) is considered to be present at the meeting.
(d) The memorandum of the meeting prepared under
IC 5-14-1.5-4 must also state the name of each member who:
(1) was physically present at the place where the meeting was
conducted;
(2) participated in the meeting using a means of
communication described in subsection (b); or
(3) was absent.
Sec. 10. (a) Five (5) trustees constitute a quorum for the
transaction of business.
(b) Each trustee is entitled to one (1) vote.
(c) A majority vote of the trustees present is required for the
board to adopt a resolution or take other action at a regular or
special meeting.
Chapter 4. Board Powers and Duties
Sec. 1. The board shall do all of the following:
(1) Appoint and fix the salary of a director.
(2) Employ or contract with employees, auditors, technical
experts, legal counsel, and other service providers as the
board considers necessary to transact the business of the fund
without the approval of any state officer, and fix the
compensation of those persons.
(3) Establish a general office in Indianapolis for board
meetings and for administrative personnel.
(4) Provide for the installation in the general office of a
complete system of:
(A) books;
(B) accounts, including reserve accounts; and
(C) records;
to give effect to all the requirements of this article and to
ensure the proper operation of the fund.
(5) Provide for a report at least annually to each member of
the amount credited to the member in the annuity savings
account in each investment program under IC 5-10.2-2.
(6) With the advice of the actuary, adopt actuarial tables and
compile data needed for actuarial studies that are necessary
for the fund's operation.
(7) Act on applications for benefits and claims of error filed
by members.
(8) Have the accounts of the fund audited annually by the
state board of accounts, and if the board determines that it is
advisable, have the operation of a public pension or
retirement fund of the system audited by a certified public
accountant.
(9) Publish for the members a synopsis of the fund's condition.
(10) Adopt a budget on a calendar year or fiscal year basis
that is sufficient, as determined by the board, to perform the
board's duties and, as appropriate and reasonable, draw upon
fund assets to fund the budget.
(11) Expend money, including income from the fund's
investments, for effectuating the fund's purposes.
(12) Establish personnel programs and policies for the
employees of the system.
(13) Submit a financial report before November 1 each year
to the governor, the pension management oversight
commission, and the budget committee. The report under this
subdivision must set forth a complete operating and financial
statement covering its operations during the most recent fiscal
year, and include any other information requested by the
chair of the pension management oversight commission. The
report must be submitted to the pension management
oversight commission in an electronic format pursuant to
IC 5-14-6.
(14) Establish a code of ethics or decide to be under the
jurisdiction and rules adopted by the state ethics commission.
(15) Provide the necessary forms for administering the fund.
(16) Submit to the auditor of state or the treasurer of state
vouchers or reports necessary to claim an amount due from
the state to the system.
Sec. 2. (a) The board may do any of the following:
(1) Establish and amend rules and regulations:
(A) for the administration and regulation of the fund and
the board's affairs; and
(B) to effectuate the powers and purposes of the board;
without adopting a rule under IC 4-22-2.
(2) Make contracts and sue and be sued as the board of
trustees of the Indiana public retirement system.
(3) Delegate duties to its employees.
(4) Enter into agreements with one (1) or more insurance
companies to provide life, hospitalization, surgical, medical,
dental, vision, long term care, or supplemental Medicare
insurance, utilizing individual or group insurance policies for
retired members of the fund, and, upon authorization of the
respective member, deduct premium payments for such
policies from the members' retirement benefits and remit the
payments to the insurance companies.
(5) Enter into agreements with one (1) or more insurance
companies to provide annuities for retired members of the
fund, and, upon a member's authorization, transfer the
amount credited to the member in the annuity savings
account to the insurance companies.
(6) For the 1977 police officers' and firefighters' pension and
disability fund, deduct from benefits paid and remit to the
appropriate entities amounts authorized by IC 36-8-8-17.2.
(7) Whenever the fund's membership is sufficiently large for
actuarial valuation, establish an employer's contribution rate
for all employers, including employers with special benefit
provisions for certain employees.
(8) Amortize prior service liability over a period of forty (40)
years or less.
(9) Recover payments made under false or fraudulent
representation.
(10) Give bond for an employee for the fund's protection.
(11) Receive the state's share of the cost of the pension
contribution from the federal government for a member on
leave of absence in order to work in a federally supported
educational project.
(12) Summon and examine witnesses when adjusting claims.
(13) When adjusting disability claims, require medical
examinations by doctors approved or appointed by the board.
Not more than two (2) examinations may be conducted in one
(1) year.
(14) Conduct investigations to help determine the merit of a
claim.
(15) Meet an emergency that may arise in the administration
of the board's trust.
(16) Determine other matters regarding the board's trust that
are not specified.
(17) Exercise all powers necessary, convenient, or appropriate
to carry out and effectuate its public and corporate purposes
and to conduct its business.
(b) This subsection does not apply to investments of the board.
A contract under subsection (a)(2) may be for a term of not more
than five (5) years, with an ability to renew thereafter.
(c) An agreement under subsection (a)(4) may be for a duration
of three (3) years.
Sec. 3. The board's powers as specified in this article or the
retirement law applicable to a public pension or retirement fund
of the system:
(1) shall be interpreted broadly to accomplish the purposes of
this article or the applicable retirement law; and
(2) may not be construed as a limitation of powers.
Chapter 5. Investments
Sec. 1. The board has the powers, duties, restrictions,
limitations, and penalties in connection with the board's investment
and management of the assets of the public pension and retirement
funds of the system under the following provisions:
(1) IC 5-10.2-2-2.5.
(2) IC 5-10.2-2-13.
(3) IC 5-10.2-2-18.
(4) IC 5-10.3-3-7.1.
(5) IC 5-10.3-5-3.
(6) IC 5-10.3-5-3.1.
(7) IC 5-10.3-5-4.
(8) IC 5-10.3-5-5.
(9) IC 5-10.3-5-6.
(10) IC 5-10.4-3-7.
(11) IC 5-10.4-3-9.
(12) IC 5-10.4-3-10.
(13) IC 5-10.4-3-11.
(14) IC 5-10.4-3-12.
(15) IC 5-10.4-3-13.
(16) IC 5-10.4-3-14.
(17) IC 5-10.4-3-15.
(18) IC 5-10.4-3-16.
Sec. 2. The board's transactions under this chapter are subject
to IC 2-3.5-3-3, IC 5-10-5.5-2.5, IC 5-10.2-2-1.5, IC 33-38-6-13,
IC 33-39-7-22, and IC 36-8-8-2.5.
Chapter 6. Director; Reports and Administration
Sec. 1. (a) The director is the executive officer of the system and
is responsible for the administration of the system.
(b) The director is appointed by and serves at the pleasure of the
board.
Sec. 2. The director shall do the following:
(1) Maintain a record of the board's proceedings.
(2) Keep the books and records of the system.
(3) Deposit payments made to the system with the custodian
for the system's accounts.
(4) Sign vouchers for the payment of money from the system
as authorized by the board.
(5) Execute a corporate surety bond in an amount specified by
the board. The premium for the bond is an administrative
expense of the system.
(6) Perform other duties as assigned by the board.
Sec. 3. (a) The board shall maintain individual records for each
member of a public pension or retirement fund of the system
administered by the board.
(b) A member's record must include at least the following
information:
(1) The member's name.
(2) Date of birth.
(3) Age at beginning service.
(4) Service record.
(5) Address.
(6) Contributions.
(7) Amounts withdrawn.
(8) Benefits paid.
(9) Social Security number.
(10) Any other information necessary for the fund to
administer the member's account.
Sec. 4. (a) Records of:
(1) individual members of; and
(2) membership information concerning;
a public pension or retirement fund administered by the board are
confidential, except for the name and years of service of a member.
(b) This section does not prohibit the board from providing fund
records to an association or organization described in
IC 2-3.5-4-12, IC 2-3.5-5-10, IC 5-10.3-8-10, IC 5-10.4-5-14, or
IC 36-8-8-17.2.
Sec. 5. (a) Each public pension and retirement fund of the
system shall pay the expenses of administration attributable to that
public pension or retirement fund.
(b) The board shall:
(1) prorate the expenses of administration of the system that
cannot be attributed to a particular public pension or
retirement fund and the bond of the director among; and
(2) pay the prorated expenses from;
the public pension and retirement funds of the system.
Chapter 7. Short Title and Saving Provisions
Sec. 1. This article shall be known as and may be cited as the
Indiana public pension modernization act.
Sec. 2. (a) All powers, duties, liabilities, property, equipment,
records, rights, and contracts of the:
(1) board of trustees of the public employees' retirement fund;
and
(2) board of trustees of the teachers' retirement fund;
are transferred to or assumed by the board on July 1, 2011.
(b) The board shall provide indemnification of:
(1) the board of trustees of the public employees' retirement
fund; and
(2) the board of trustees of the teachers' retirement fund;
as necessary or appropriate in regard to any liabilities of the public
employees' retirement fund or the teachers' retirement fund
assumed by the board.
Sec. 3. Any amounts transferred under this subsection to the
system that represent balances in any fund or account of the public
employees' retirement fund or the teachers' retirement fund for the
administration of the public pension and retirement funds
administered by the public employees' retirement fund or the
teachers' retirement fund before July 1, 2011, including any related
services, shall be:
(1) deposited in a fund or account designed by the board; and
(2) used by the system for the administration of the public
pension and retirement funds of the system and related
services.
Sec. 4. The employees of the:
(1) public employees' retirement fund; and
(2) teachers' retirement fund;
become employees of the system on July 1, 2011, without change in
compensation, seniority, or benefits. An employee of the public
employees' retirement fund who is a member of the public
employees' retirement fund before July 1, 2011, and becomes an
employee of the system after June 30, 2011, remains a member of
the public employees' retirement fund after June 30, 2011. An
employee of the teachers' retirement fund who is a member of the
teachers' retirement fund before July 1, 2011, and becomes an
employee of the system after June 30, 2011, remains a member of
the teachers' retirement fund after June 30, 2011. An employee
who becomes an employee of the system after June 30, 2011, is a
member of the public employees' retirement fund, unless the
director expressly determines otherwise.
Sec. 5. Rules and regulations of:
(1) the public employees' retirement fund; and
(2) the teachers' retirement fund;
in effect before July 1, 2011, are considered, after June 30, 2011,
rules and regulations of the system.
Sec. 6. (a) Any reference or cross-reference to:
(1) the board of trustees of the public employees' retirement
fund; or
(2) the board of trustees of the teachers' retirement fund;
in the Indiana Code shall be treated after June 30, 2011, as a
reference or cross-reference to the board.
(b) Any reference or cross-reference to:
(1) the director of the public employees' retirement fund; or
(2) the director of the teachers' retirement fund;
in the Indiana Code shall be treated after June 30, 2011, as a
reference or cross-reference to the director.
Sec. 7. If any provision in this article conflicts with a provision
in IC 5-10.2, IC 5-10.3, or IC 5-10.4, the provisions shall be read
together to the extent possible with any conflict resolved in favor
of the provision in this article.
SOURCE: IC 33-38-6-2; (11)ES0549.1.23. -->
SECTION 23. IC 33-38-6-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 2. As used in this
chapter, "board" refers to the board of trustees of the public employees'
retirement fund. Indiana public retirement system established by
IC 5-10.5-3-1.
SOURCE: IC 33-38-7-3; (11)ES0549.1.24. -->
SECTION 24. IC 33-38-7-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. As used in this
chapter, "board" refers to the board of trustees of the public employees'
retirement fund. Indiana public retirement system established by
IC 5-10.5-3-1.
SOURCE: IC 33-38-8-3; (11)ES0549.1.25. -->
SECTION 25. IC 33-38-8-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. As used in this
chapter, "board" refers to the board of trustees of the public employees'
retirement fund. Indiana public retirement system established by
IC 5-10.5-3-1.
SOURCE: IC 33-39-7-3; (11)ES0549.1.26. -->
SECTION 26. IC 33-39-7-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3. As used in this
chapter, "board" refers to the board of trustees of the public employees'
retirement fund. Indiana public retirement system established by
IC 5-10.5-3-1.
SOURCE: IC 36-8-8-4; (11)ES0549.1.27. -->
SECTION 27. IC 36-8-8-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 4. (a) There is
established a police officers' and firefighters' pension and disability
fund to be known as the 1977 fund. The 1977 fund consists of fund
member and employer contributions, plus the earnings on them, to be
used to make benefit payments to fund members and their survivors in
the amounts and under the conditions specified in this chapter.
(b) The board of trustees of the public employees' retirement fund
(referred to in this chapter as the "PERF board") Indiana public
retirement system (referred to in this chapter as the "system
board") shall administer the 1977 fund, which may be commingled
with the public employees' retirement fund for investment purposes.
All actuarial data shall be computed on the total membership of the
fund, and the cost of participation is the same for all employers in the
fund. The fund member and employer contributions shall be recorded
separately for each employer.
(c) The 1977 fund advisory committee, referred to as the committee,
is established. The PERF board shall consult with the committee on
matters pertaining to the administration of this chapter and
IC 5-10.3-11. The committee shall consist of the following members
appointed by the governor every two (2) years for a term of two (2)
years:
(1) Two (2) firefighters:
(A) each of whom must be an active or retired member of the
1937 fund or the 1977 fund; and
(B) neither of whom may be in an upper level policymaking
position.
(2) Two (2) police officers:
(A) each of whom must be an active or retired member of the
1925 fund, the 1953 fund, or the 1977 fund; and
(B) neither of whom may be in an upper level policymaking
position.
(3) Two (2) members, each of whom must be an executive of an
employer.
(4) Two (2) members, each of whom must be a member of the
legislative body of an employer.
The term of each member begins on July 1 following appointment and
continues until his successor is qualified. A member of the committee
who no longer holds the position that qualified him for appointment
under subdivision (1), (2), (3), or (4) forfeits his membership on the
committee. The governor shall appoint a person to fill a vacancy on the
committee for the remainder of the unexpired term.
(d) Each member of the committee who is not a state employee is
entitled to reimbursement for expenses actually incurred in connection
with the member's duties. Such a member is also entitled to
reimbursement for traveling expenses and other expenses actually
incurred in connection with the member's duties, as approved by the
PERF board.
(c) Any reference or cross-reference to the 1977 fund advisory
committee in the Indiana Code shall be treated after June 30, 2011,
as a reference or cross-reference to the system board.
SOURCE: IC 36-8-8-13.1; (11)ES0549.1.28. -->
SECTION 28. IC 36-8-8-13.1, AS AMENDED BY P.L.29-2006,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 13.1. (a) If:
(1) the local board has determined under this chapter that a
covered impairment exists and the safety board has determined
that there is no suitable and available work within the department,
considering reasonable accommodation to the extent required by
the Americans with Disabilities Act; or
(2) the fund member has filed an appeal under section 12.7(o) of
this chapter;
the local board shall submit the local board's determinations and the
safety board's determinations to the
PERF system board's director.
(b) Whenever a fund member is determined to have an impairment
under section 12.7(i) of this chapter, the PERF system board's director
shall initiate a review of the default award not later than sixty (60) days
after the director learns of the default award.
(c) After the PERF system board's director receives the
determinations under subsection (a) or initiates a review under
subsection (b), the fund member must submit to an examination by a
medical authority selected by the PERF system board. The authority
shall determine if there is a covered impairment. With respect to a fund
member who is covered by sections 12.5 and 13.5 of this chapter, the
authority shall determine the degree of impairment. The PERF system
board shall adopt rules under IC 4-22-2 to establish impairment
standards, such as the impairment standards contained in the United
States Department of Veterans Affairs Schedule for Rating Disabilities.
The report of the examination shall be submitted to the PERF system
board's director. If a fund member refuses to submit to an examination,
the authority may find that no impairment exists.
(d) The PERF system board's director shall review the medical
authority's report and the local board's determinations and issue an
initial determination within sixty (60) days after receipt of the local
board's determinations. The PERF system board's director shall notify
the local board, the safety board, and the fund member of the initial
determination. The following provisions apply if the PERF system
board's director does not issue an initial determination within sixty (60)
days and if the delay is not attributable to the fund member or the
safety board:
(1) In the case of a review initiated under subsection (a)(1):
(A) the determinations of the local board and the chief of the
police or fire department are considered to be the initial
determination; and
(B) for purposes of section 13.5(d) of this chapter, the fund
member is considered to be totally impaired.
(2) In the case of an appeal submitted under subsection (a)(2), the
statements made by the fund member under section 12.7(o) of this
chapter are considered to be the initial determination.
(3) In the case of a review initiated under subsection (b), the
initial determination is the impairment determined under section
12.7(i) of this chapter.
(e) The fund member, the safety board, or the local board may
object in writing to the director's initial determination within fifteen
(15) days after the determination is issued. If no written objection is
filed, the initial determination becomes the final order of the PERF
system board. If a timely written objection is filed, the PERF system
board shall issue the final order after a hearing. The final order shall be
issued not later than one hundred eighty (180) days after the date of
receipt of the local board's determination or the date the PERF system
board's director initiates a review under subsection (b). The following
provisions apply if a final order is not issued within one hundred eighty
(180) days and if the delay is not attributable to the fund member or the
chief of the police or fire department:
(1) In the case of a review initiated under subsection (a)(1):
(A) the determinations of the local board and the chief of the
police or fire department are considered to be the final order;
and
(B) for purposes of section 13.5(d) of this chapter, the fund
member is considered to be totally impaired.
(2) In the case of an appeal submitted under subsection (a)(2), the
statements made by the fund member under section 12.7(o) of this
chapter are considered to be the final order.
(3) In the case of a review initiated under subsection (b), the
impairment determined under section 12.7(i) of this chapter is
considered to be the final order.
(f) If the PERF system board approves the director's initial
determination, then the PERF system board shall issue a final order
adopting the initial determination. The local board and the chief of the
police or fire department shall comply with the initial determination.
If the PERF system board does not approve the initial determination,
the PERF system board may receive additional evidence on the matter
before issuing a final order.
(g) Appeals of the PERF system board's final order may be made
under IC 4-21.5.
(h) The transcripts, records, reports, and other materials compiled
under this section must be retained in accordance with the procedures
specified in section 12.7(p) of this chapter.
SOURCE: IC 36-8-8-13.6; (11)ES0549.1.29. -->
SECTION 29. IC 36-8-8-13.6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 13.6. (a) As used in this
chapter, "Class 3 excludable condition" means a condition that is
included on the list of excludable medical conditions established by the
PERF system board under subsection (b).
(b) The PERF system board shall adopt rules under IC 4-22-2 to
establish a list of excludable medical conditions.
(c) To the extent required by the Americans with Disabilities Act,
the PERF system board shall record and retain the listing of a fund
member's Class 3 excludable condition in the fund member's
confidential medical file.
SOURCE: IC 36-8-8-19; (11)ES0549.1.30. -->
SECTION 30. IC 36-8-8-19, AS AMENDED BY P.L.99-2010,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 19. (a) The baseline statewide physical
examination required by section 7(a) of this chapter shall be prescribed
by the
PERF system board and shall be administered by the appointing
authority, as determined by the local board, after the appointing
authority extends a conditional offer for employment. The baseline
statewide physical examination shall be administered by a licensed
physician and must include all of the following:
(1) A general medical history.
(2) The tests identified in rules that shall be adopted by the
PERF
system board.
under IC 4-22-2.
(b) The
PERF system board shall adopt minimum standards by rule
under IC 4-22-2 that a police officer or firefighter must meet for the
baseline statewide physical examination described in subsection (a).
The baseline statewide physical examination and related standards
must:
(1) reflect the essential functions of the job;
(2) be consistent with business necessity;
(3) be reviewed by the 1977 fund advisory board; and
(4) (3) be evaluated by the
PERF system board one (1) time
before January 1, 2015, and every five (5) years thereafter.
(c) The
PERF system board shall, in consultation with the
commissioner of mental health, select the baseline statewide mental
examination described in section 7(a) of this chapter. The standards for
passing the baseline statewide mental examination shall be determined
by the local board. The baseline statewide mental examination and
related standards must:
(1) reflect the essential functions of the job;
(2) be consistent with business necessity;
(3) be reviewed by the 1977 fund advisory board; and
(4) (3) be evaluated by the
PERF system board one (1) time
before January 1, 2015, and every five (5) years thereafter.
The purpose of the baseline statewide mental examination is to
determine if the police officer or firefighter is mentally suitable to be
a member of the department. The local board may designate a
community mental health center or a managed care provider (as
defined in IC 12-7-2-127(b)), a hospital, a licensed physician, or a
licensed psychologist to administer the examination. However, the
results of a baseline statewide mental examination shall be interpreted
by a licensed physician or a licensed psychologist.
(d) The employer shall pay for no less than one-half (1/2) the cost
of the examinations.
(e) Each local board shall name the physicians who will conduct the
examinations under this section.
(f) If a local board determines that a candidate passes the local
physical and mental standards, if any, established under IC 36-8-3.2-6,
the baseline statewide physical examination described in subsection
(a), and the baseline statewide mental examination described in
subsection (c), the local board shall send the following to PERF:
Indiana public retirement system:
(1) Copies and certification of the results of the baseline statewide
physical examination described in subsection (a).
(2) Certification of the results of the physical agility examination
required under IC 36-8-3.2-3 or IC 36-8-3.2-3.5.
(3) Certification of the results of the baseline statewide mental
examination described in subsection (c).
(g) The PERF system board or the PERF system board's designee
shall then determine whether the candidate passes the baseline
statewide physical standards adopted under subsection (b). If the
candidate passes the baseline statewide standards, the PERF system
board or the PERF system board's designee shall also determine
whether the candidate has a Class 3 excludable condition under section
13.6 of this chapter. The PERF system board or the PERF system
board's designee shall retain the results of the examinations and all
documents related to the examination until the police officer or
firefighter retires or separates from the department.
(h) To the extent required by the federal Americans with Disabilities
Act, the PERF system board shall do the following:
(1) Treat the medical transcripts, reports, records, and other
material compiled under this section as confidential medical
records.
(2) Keep the transcripts, reports, records, and material described
in subdivision (1) in separate medical files for each member.
(i) A local board may, at the request of an appointing authority or on
the local board's own motion, issue subpoenas, discovery orders, and
protective orders in accordance with the Indiana Rules of Trial
Procedure to facilitate the receipt of accurate and original documents
necessary for the proper administration of this chapter. A subpoena or
order issued under this subsection:
(1) must be served in accordance with the Indiana Rules of Trial
Procedure; and
(2) may be enforced in the circuit or superior court with
jurisdiction for the county in which the subpoena or order is
served.
SOURCE: IC 2-3.5-2-9; IC 2-3.5-2-13; IC 5-10.2-2-16; IC 5-10.2-2-
17; IC 5-10.2-2-19; IC 5-10.3-3-1; IC 5-10.3-3-2; IC 5-10.3-3-3; IC
5-10.3-3-4; IC 5-10.3-3-5; IC 5-10.3-3-6; IC 5-10.3-3-7; IC 5-10.3-3-
8; IC 5-10.3-3-9; IC 5-10.3-6-5; IC 5-10.4-3-1; IC 5-10.4-3-2; IC 5-
10.4-3-3; IC 5-10.4-3-4; IC 5-10.4-3-5; IC 5-10.4-3-6; IC 5-10.4-3-8.
; (11)ES0549.1.31. -->
SECTION 31. THE FOLLOWING ARE REPEALED [EFFECTIVE
JULY 1, 2011]: IC 2-3.5-2-9; IC 2-3.5-2-13; IC 5-10.2-2-16;
IC 5-10.2-2-17; IC 5-10.2-2-19; IC 5-10.3-3-1; IC 5-10.3-3-2;
IC 5-10.3-3-3; IC 5-10.3-3-4; IC 5-10.3-3-5; IC 5-10.3-3-6;
IC 5-10.3-3-7; IC 5-10.3-3-8; IC 5-10.3-3-9; IC 5-10.3-6-5;
IC 5-10.4-3-1; IC 5-10.4-3-2; IC 5-10.4-3-3; IC 5-10.4-3-4;
IC 5-10.4-3-5; IC 5-10.4-3-6; IC 5-10.4-3-8.
SOURCE: ; (11)ES0549.1.32. -->
SECTION 32. [EFFECTIVE JULY 1, 2011]
(a) The legislative
services agency shall prepare legislation for introduction in the
2012 regular session of the general assembly to organize and
correct statutes affected by this act.
(b) This SECTION expires June 30, 2013.