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.
January 20, 2011, read first time and referred to Committee on Pensions and Labor.
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
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).