January 29, 2013





HOUSE BILL No. 1560

_____


DIGEST OF HB 1560 (Updated January 29, 2013 10:39 am - DI 96)



Citations Affected: IC 20-26.

Synopsis: Rollovers of school retirement accounts. Provides that whenever a school corporation closes future contributions to a retirement, savings, or investment plan described under Section 401(a) or Section 403(b) of the Internal Revenue Code, a participant in the plan, without regard to the participant's age or employment status, may elect to rollover the balance invested in that plan to: (1) another eligible retirement, savings, or investment plan offered by the school corporation; or (2) an individual retirement account or annuity described under Section 408(a) or Section 408(b) of the Internal Revenue Code.

Effective: July 1, 2013.





Carbaugh, Ober




    January 22, 2013, read first time and referred to Committee on Employment, Labor and Pensions.
    January 29, 2013, reported _ Do Pass.






January 29, 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.
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HOUSE BILL No. 1560



    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 20-26-5-34; (13)HB1560.1.1. -->     SECTION 1. IC 20-26-5-34 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 34. (a) This section applies to a school corporation that, after June 30, 2013, establishes, amends, renews, or modifies a retirement, savings, or severance plan described under Section 401(a), Section 403(b), or another applicable section of the Internal Revenue Code that requires or permits an individual employed by the school corporation to:
        (1) contribute amounts; or
        (2) have amounts contributed by the school corporation on the employee's behalf;
that are credited and allocated to an account for each employee.
    (b) As used in this section, "Internal Revenue Code" has the meaning set forth in IC 6-3-1-11.
    (c) To the extent permitted by federal law, whenever a school corporation closes a retirement, savings, or investment plan to future contributions, a participant in the plan, without regard to

the participant's age or employment status, may elect to rollover the balance invested in the closed plan to:
        (1) another eligible retirement, savings, or investment plan offered by the school corporation; or
        (2) an individual retirement account or annuity described under Section 408(a) or Section 408(b) of the Internal Revenue Code.
    (d) This section does not apply to or abrogate a written or oral contract or agreement in effect on July 1, 2013.