March 15, 2013





ENGROSSED

HOUSE BILL No. 1148

_____


DIGEST OF HB 1148 (Updated March 13, 2013 10:26 am - DI 102)



Citations Affected: IC 5-10.3.

Synopsis: Public employees' defined contribution plan. Changes the definition of "normal retirement age" in the public employees' defined contribution plan (plan) to reduce the minimum number of years required for participation in the plan from ten years to five years. Requires a vested plan member to be separated from employment for at least 30 days before the member may make a withdrawal from the member's account. (The introduced version of this bill was prepared by the pension management oversight commission.)

Effective: July 1, 2013.





Niezgodski, Burton
(SENATE SPONSORS _ TALLIAN, BOOTS)




    January 10, 2013, read first time and referred to Committee on Employment, Labor and Pensions.
    January 15, 2013, reported _ Do Pass.
    January 22, 2013, read second time, ordered engrossed. Engrossed.
    January 23, 2013, read third time, passed. Yeas 80, nays 14.

SENATE ACTION

    February 25, 2013, read first time and referred to Committee on Pensions and Labor.
    March 14, 2013, reported favorably _ Do Pass.






March 15, 2013

First Regular Session 118th General Assembly (2013)


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.
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ENGROSSED

HOUSE BILL No. 1148



    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 5-10.3-12-14; (13)EH1148.1.1. -->     SECTION 1. IC 5-10.3-12-14, AS ADDED BY P.L.22-2011, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 14. As used in this chapter, "normal retirement age" for a member means the member is at least sixty-two (62) years of age with at least ten (10) five (5) years of participation in the plan.
SOURCE: IC 5-10.3-12-26; (13)EH1148.1.2. -->     SECTION 2. IC 5-10.3-12-26, AS AMENDED BY P.L.6-2012, SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 26. (a) Subject to the provisions of the Internal Revenue Code applicable to qualified plan distributions, a member who:
         (1) terminates service in a covered position; and
        (2) does not perform any service in a position covered by the fund for at least thirty (30) days after the date on which the member terminates service;

is entitled to withdraw amounts in the member's account to the extent the member is vested in the account. A member must make a required withdrawal from the member's account not later than the required

beginning date under the Internal Revenue Code.
    (b) The member may elect to have withdrawals paid as:
        (1) a lump sum;
        (2) a direct rollover to another eligible retirement plan; or
        (3) if the member has attained normal retirement age, a monthly annuity in accordance with the rules of the board.
    (c) The board may establish a minimum account balance or a minimum monthly payment amount in order for a member to select the monthly annuity option. The board shall establish the forms of annuity by rule, in consultation with the board's actuary. The board shall give members information about these forms of payment and any information required by federal law to accompany such distributions.
    (d) Unless otherwise required by federal or state law, the requirements and rules that apply to the distribution of the annuity savings account apply to distributions from a member's account.