Introduced Version






SENATE BILL No. 570

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 5-10-1.1-3.5.

Synopsis: State deferred compensation plan. Provides that if an employee does not choose another amount, the state shall, in each pay period during the first year the employee is automatically enrolled in the state's deferred compensation plan (plan), deduct from the employee's compensation the greater of: (1) the maximum amount of any match provided by the state on behalf of the employee to a defined contribution plan; or (2) one-half percent of the employee's base salary; and deposit the amount deducted in the employee's account. Provides that the percentage of an employee's base salary used to determine the employee's contribution increases each year, for five years, by one-half percent from the percentage determined in the immediately preceding year to a maximum of three percent.

Effective: July 1, 2011.





Walker




    January 20, 2011, read first time and referred to Committee on Pensions and Labor.







Introduced

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.
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SENATE BILL No. 570



    A BILL FOR AN ACT to amend the Indiana Code concerning state and local administration.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 5-10-1.1-3.5; (11)IN0570.1.1. -->     SECTION 1. IC 5-10-1.1-3.5, AS AMENDED BY P.L.3-2008, SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 3.5. (a) This section applies to an individual who becomes an employee of the state after June 30, 2007.
    (b) Unless an employee notifies the state that the employee does not want to enroll in the deferred compensation plan, on day thirty-one (31) of the employee's employment:
        (1) the employee is automatically enrolled in the deferred compensation plan; and
        (2) the state is authorized to begin deductions as otherwise allowed under this chapter.
    (c) The auditor of state shall provide written notice to an employee of the provisions of this chapter. The notice provided under this subsection must:
        (1) be provided:
            (A) with the employee's first paycheck; and
            (B) on paper that is a color that is separate and distinct from

the color of the employee's paycheck;
        (2) contain a statement concerning:
            (A) the purposes of;
            (B) procedures for notifying the state that the employee does not want to enroll in;
            (C) the tax consequences of; and
            (D) the details of the state match for employee contribution to;
        the deferred compensation plan; and
        (3) list the telephone number, electronic mail address, and other contact information for the auditor of state, who serves as plan administrator.
    (d) This subsection applies to contributions made before July 1, 2011. Notwithstanding IC 22-2-6, except as provided by subsection (c), (f), the state shall deduct from an employee's compensation as a contribution to the deferred compensation plan established by the state under this chapter an amount equal to the maximum amount of any match provided by the state on behalf of the employee to a defined contribution plan established under section 1.5(a) of this chapter.
     (e) This subsection applies to contributions made after June 30, 2011. Notwithstanding IC 22-2-6 and except as provided by subsection (g), during the first year an employee is enrolled under subsection (b) in the deferred compensation plan, the state shall deduct each pay period from the employee's compensation as a contribution to the deferred compensation plan an amount equal to the greater of the following:
        (1) The maximum amount of any match provided by the state on behalf of the employee to a defined contribution plan established under section 1.5(a) of this chapter.
        (2) One-half percent (0.5%) of the employee's base salary.
    (f) This subsection applies to a year after the first year in which an employee is enrolled in the deferred compensation plan and in which the employee does not affirmatively choose a contribution amount under subsection (g). The percentage of the employee's base salary used for the year in subsection (e)(2) to determine the employee's contribution increases by one-half percent (0.5%) from the percentage determined in the immediately preceding year for five (5) years. The maximum percentage of an employee's compensation that may be deducted under this subsection is three percent (3%). The contribution increase occurs on the anniversary date of the employee's enrollment in the deferred compensation plan.

    (e) (g) An employee may contribute to the deferred compensation

plan established by the state under this chapter an amount other than the amount described in subsection subsections (d) through (f) by affirmatively choosing to contribute:
        (1) a higher amount;
        (2) a lower amount; or
        (3) zero (0).