Reprinted
March 26, 2013
ENGROSSED
SENATE BILL No. 248
_____
DIGEST OF SB 248
(Updated March 25, 2013 4:17 pm - DI 102)
Citations Affected: IC 2-3.5; IC 5-10; IC 11-10; IC 22-2.
Synopsis: State pensions and wage payment and wage claims.
Increases to 2% the amount of a state employee's base salary
contributed during the first year the employee is automatically enrolled
in the state's deferred compensation plan (plan), if that amount is
greater than the maximum state match. (Currently, a state employee's
contribution in the first year the employee is automatically enrolled in
the plan is the greater of: (1) the maximum state match; or (2) 0.5% of
the employee's base salary.) Provides that benefits and assets in the
legislators' defined contribution fund (fund) are exempt from levy, sale,
garnishment, attachment, or other legal process, and may not be
assigned, except in relation to a qualified domestic relations order
(order). Requires that a participant in the fund bear the costs, as
determined by the Indiana public retirement system board, related to
the fund's payment made under an order. Provides that criminal
offenders in a facility operated by the department of correction or
operated by a private operator under contract with the department of
correction are exempt from certain provisions concerning the frequency
of wage payment and wage claims.
Effective: Upon passage; July 1, 2013.
Walker
, Schneider, Buck, Kruse
(HOUSE SPONSORS _ STEUERWALD, NIEZGODSKI)
January 7, 2013, read first time and referred to Committee on Pensions and Labor.
January 24, 2013, reported favorably _ Do Pass.
January 28, 2013, read second time, ordered engrossed. Engrossed.
January 29, 2013, read third time, call withdrawn.
January 31, 2013, read third time, passed. Yeas 37, nays 12.
HOUSE ACTION
February 26, 2013, read first time and referred to Committee on Employment, Labor and
Pensions.
March 21, 2013, amended, reported _ Do Pass.
March 25, 2013, read second time, amended, ordered engrossed.
Reprinted
March 26, 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
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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NEW will appear in that style type in the introductory clause of each SECTION that adds
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Conflict reconciliation: Text in a statute in
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between statutes enacted by the 2012 Regular Session of the General Assembly.
ENGROSSED
SENATE BILL No. 248
A BILL FOR AN ACT to amend the Indiana Code concerning state
pensions and wage payment and wage claims.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 2-3.5-5-9; (13)ES0248.2.1. -->
SECTION 1. IC 2-3.5-5-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 9. All benefits and
assets in the defined contribution fund are exempt from levy, sale,
garnishment, attachment, or other legal process, except for a qualified
domestic relations order. However, a participant's benefits may be
transferred to reimburse the state for loss resulting from the
participant's criminal taking of state property if the board receives
adequate proof of the loss. The loss must be proven by conviction of a
felony or misdemeanor.
SOURCE: IC 2-3.5-5-10; (13)ES0248.2.2. -->
SECTION 2. IC 2-3.5-5-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10.
(a) A participant or
beneficiary may not assign any payment under this chapter except for:
(1) premiums on a life, hospitalization, surgical, or medical group
insurance plan maintained in part by a state agency;
and
(2) dues to an association that proves to the board's satisfaction
that the association has as members at least twenty percent (20%)
of the retired participants in the legislators' defined benefit plan;
or
(3) a payment made under a qualified domestic relations
order.
(b) A participant bears the costs, as determined by the board,
related to the defined contribution fund's payment made under a
qualified domestic relations order under subsection (a)(3).
SOURCE: IC 5-10-1.1-3.5; (13)ES0248.2.3. -->
SECTION 3. IC 5-10-1.1-3.5, AS AMENDED BY P.L.21-2011,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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
(g),
(h), 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, and before July 1, 2013. Notwithstanding IC 22-2-6 and except
as provided by subsection (g), (h), 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 contributions made after June 30,
2013. Notwithstanding IC 22-2-6 and except as provided by
subsection (h), 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) Two percent (2%) of the employee's base salary.
(f) (g) This subsection applies to a year:
(1) after the first year in which an employee is enrolled in the
deferred compensation plan; and
(2) in which the employee does not affirmatively choose a
contribution amount under subsection (g). (h).
The percentage of the employee's base salary used for the year in
subsection (e)(2) or (f)(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 base salary 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.
(g) (h) An employee may contribute to the deferred compensation
plan established by the state under this chapter an amount other than
the amount described in subsections (d) through (f) (g) by affirmatively
choosing to contribute:
(1) a higher amount;
(2) a lower amount; or
(3) zero (0).
SOURCE: IC 11-10-6-12; (13)ES0248.2.4. -->
SECTION 4. IC 11-10-6-12 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 12. An offender employed in accordance
with this chapter is subject to IC 22-2-5-3 and IC 22-2-9-8.
SOURCE: IC 11-10-7-3; (13)ES0248.2.5. -->
SECTION 5. IC 11-10-7-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) Any
agreement entered into between the commissioner and a private person
under this chapter must provide that an offender employed by a private
person under this chapter will be paid at least the prevailing wage for
that type of work as established by the department of workforce
development, including applicable wage increases for overtime work.
(b) An offender may be employed under this chapter only on a
voluntary basis and only after the offender has been informed of the
conditions of the offender's employment.
(c) An offender employed under this chapter is not eligible for
unemployment compensation benefits under workforce development
laws.
(d) An offender employed in accordance with this chapter is
subject to IC 22-2-5-3 and IC 22-2-9-8.
SOURCE: IC 22-2-5-3; (13)ES0248.2.6. -->
SECTION 6. IC 22-2-5-3 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3. Farmers and those engaged
in the business of agriculture and horticulture The following shall be
specifically exempt from the provisions of this chapter:
(1) Farmers and those engaged in the business of agriculture
and horticulture.
(2) Criminal offenders in a facility operated by the
department of correction (as established by IC 11-8-2-1) or
operated by a private operator under contract with the
department of correction.
SOURCE: IC 22-2-9-8; (13)ES0248.2.7. -->
SECTION 7. IC 22-2-9-8 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8. Criminal offenders in a facility operated
by the department of correction (as established by IC 11-8-2-1) or
operated by a private operator under contract with the department
of correction are specifically exempt from this chapter.
SOURCE: ; (13)ES0248.2.8. -->
SECTION 8.
An emergency is declared for this act.