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.
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.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2012 Regular Session of the General Assembly.
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.