January 27, 2000
HOUSE BILL No. 1025
_____
DIGEST OF HB 1025
(Updated January 26, 2000 12:41 PM - DI 73)
Citations Affected: IC 33-4; IC 33-13; IC 33-14.
Synopsis: Judges' and prosecuting attorneys' pensions. Provides that a
person serving as a magistrate on July 1, 2000, may make an election
to become a member of the judges' 1985 benefit system, effective
January 1, 2001. Provides that a person who begins serving as a
magistrate after July 1, 2000, shall be a participant in the judges' 1985
benefit system, effective January 1, 2001. Allows full-time magistrates
who are participants in the 1985 benefit system of the judges'
retirement fund to purchase service credit at full actuarial cost for prior
service as a full-time commissioner, magistrate, or referee, or in PERF
covered positions other than full-time commissioner, magistrate, or
referee. Beginning in 2001, requires the monthly benefits payable to
participants, survivors, and beneficiaries under the 1985 benefit system
of the judges' retirement fund and under the prosecuting attorneys
retirement fund to be increased by the same percentages and under the
same conditions as monthly benefits are increased for members of
PERF. Provides that a member of the prosecuting attorneys retirement
fund is not required to make contributions to the fund after the member
has contributed to the fund for 22 years. Reduces from ten to eight the
number of years required to vest as a member of the prosecuting
attorneys retirement fund. Increases the percentages used in computing
retirement benefits under the prosecuting attorneys retirement fund.
Changes the reduction factor for retirement before 65 years of age.
Effective: July 1, 2000; January 1, 2001; July 1, 2001.
Kromkowski
, Foley
, Kuzman
November 23, 1999, read first time and referred to Committee on Judiciary.
January 13, 2000, reported _ Do Pass.
January 18, 2000, referred to Committee on Ways and Means pursuant to Rule 127.
January 26, 2000, amended, reported _ Do Pass.
Second Regular Session 111th General Assembly (2000)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1025
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 33-4-7-12; (00)HB1025.2.1. -->
SECTION 1. IC 33-4-7-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2001]: Sec. 12. (a) Except as
provided in subsection (b), a magistrate may:
(1) participate in the public employees' retirement fund as
provided in IC 5-10.3; or
(2) elect to remain in the judges' retirement system under
IC 33-13 if the magistrate had previously participated in the
system.
(b) A person who:
(1) is serving as a magistrate on July 1, 2000, and makes an
election under IC 33-13-10.1-3.5 to become a member of the
judges' 1985 benefit system under IC 33-13-10.1; or
(2) begins serving as a magistrate after July 1, 2000;
shall, beginning January 1, 2001, participate in the judges' 1985
benefit system under IC 33-13-10.1.
SOURCE: IC 33-13-8-2; (00)HB1025.2.2. -->
SECTION 2. IC 33-13-8-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2001]: Sec. 2. The following
words and phrases as used in this chapter, unless different meanings
are plainly indicated by their context, shall have the following
respective meanings:
"Americans with Disabilities Act" refers to the Americans with
Disabilities Act (42 U.S.C. 12101 et seq.) and any amendments and
regulations related to the Act.
"His" and "widow" means "her" and "widower" in the event the
participant is a woman.
"Fund" means the Indiana judges' retirement fund, the fund created
by this chapter.
"Board" means the board of trustees of the public employees'
retirement fund.
"Employer" means the state of Indiana.
"Judge" means any person who has served, is serving, or shall serve
as a regular judge of any of the following courts:
Supreme court of the state of Indiana.
Court of appeals of the state of Indiana.
Circuit court of any judicial circuit.
Superior court of any county or counties.
Criminal court of any county having a separate criminal court.
Probate court of any county having a separate probate court.
Juvenile court of any county having a separate juvenile court.
Municipal court of any county.
County court of any county or counties.
"Participant" means any judge participating in the fund, or for
purposes of IC 33-13-10.1, any judge or full-time magistrate
participating in the fund.
"Services" means the period beginning on the first day upon which
any person first became a judge, whether such date is prior or
subsequent to March 11, 1953, and ending on the date under
consideration, including all intervening employment as a judge,
following resignation or expiration of any term of election or
appointment. Services in any fraction of a month shall be considered
as a month of service. However, no more than one (1) month shall be
credited for services in any one (1) calendar month. If a judge is elected
or appointed and serves one (1) or more terms or part of a term, then
retires from office, but at a later period, or periods, is appointed or
elected and serves as judge, the judge shall pay into said fund during
all the periods served as judge, except as otherwise provided in this
chapter, whether said periods be a connected period or disconnected
period, but shall not be required to pay into said fund at any time when
the judge is not serving as judge, or during any period of service as a
senior judge under IC 33-4-8, except as otherwise provided in this
chapter.
"Fiscal year" means the period beginning on July 1, in any year, and
ending on June 30 of the succeeding year.
"Salary" means the total salary paid to any participant by the state
of Indiana and by a county or counties, determined without regard to
any salary reduction agreement established under Section 125 of the
Internal Revenue Code.
SOURCE: IC 33-13-10.1-3; (00)HB1025.2.3. -->
SECTION 3. IC 33-13-10.1-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2001]: Sec. 3. (a) Each person
who:
(1) begins service as a judge after August 31, 1985; and
(2) is then not a participant;
shall become a participant in the fund.
(b) A person who:
(1) is serving as a magistrate on July 1, 2000, and makes an
election under section 3.5 of this chapter to become a member
of the judges' 1985 benefit system under this chapter; or
(2) begins serving as a magistrate after July 1, 2000;
is, beginning January 1, 2001, a participant in the judges' 1985
benefit system under this chapter.
SOURCE: IC 33-13-10.1-3.5; (00)HB1025.2.4. -->
SECTION 4. IC 33-13-10.1-3.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2000]: Sec. 3.5. A person who is serving as a
magistrate on July 1, 2000, may elect to become a member of the
judges' 1985 benefit system under this chapter. An election under
this section:
(1) must be made in writing;
(2) must be filed with the PERF board, on a form prescribed
by the board, before October 1, 2000; and
(3) is irrevocable.
SOURCE: IC 33-13-10.1-6; (00)HB1025.2.5. -->
SECTION 5. IC 33-13-10.1-6, AS AMENDED BY P.L.194-1999,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2001]: Sec. 6. Any participant whose employment as
judge or full-time magistrate is terminated is entitled to a retirement
benefit computed under section 7 of this chapter, beginning on the date
specified by the participant in a written application, if all of the
following conditions are met:
(1) The date upon which the benefit begins is not before the date
of final termination of employment of the participant or the date
thirty (30) days before the receipt of the application by the board.
(2) The participant:
(A) has attained at least the age of sixty-two (62) and has at
least eight (8) years of service credit;
(B) is at least fifty-five (55) years of age and the participant's
age in years plus the participant's years of service is at least
eighty-five (85); or
(C) has become permanently disabled.
(3) The participant is not receiving any salary from the state for
services currently performed, except for services rendered in the
capacity of judge pro tempore or senior judge.
SOURCE: IC 33-13-10.1-14; (00)HB1025.2.6. -->
SECTION 6. IC 33-13-10.1-14, AS AMENDED BY P.L.194-1999,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2001]: Sec. 14. (a) This section applies to a person who:
(1) is a judge
or full-time magistrate participating under this
chapter;
(2) before becoming a judge
or full-time magistrate was
appointed by a court to serve as a full-time referee, full-time
commissioner, or full-time magistrate;
(3) was a member of the public employees' retirement fund during
the employment described in subdivision (2); and
(4) received credited service under the public employees'
retirement fund for the employment described in subdivision (2).
(b) If a person becomes a participant in the judges' 1985 benefit
system under section 1 of this chapter, credit for prior service by the
judge as a full-time referee, full-time commissioner, or full-time
magistrate shall be granted under this chapter by the board if:
(1) the prior service was credited under the public employees'
retirement fund;
(2) the state contributes to the judges' 1985 benefit system the
amount the board determines necessary to amortize the prior
service liability over a period determined by the board, but not
more than ten (10) years; and
(3) the judge
or full-time magistrate pays in a lump sum or in a
series of payments determined by the board, not exceeding five
(5) annual payments, the amount the judge
or full-time
magistrate would have contributed if the judge
or full-time
magistrate had been a member of the judges' 1985 benefit system
during the prior service.
(c) If the requirements of subsection (b)(2) and (b)(3) are not
satisfied, a participant is entitled to credit only for years of service after
the date of participation in the 1985 benefit system.
(d) An amortization schedule for contributions paid under
subsection (b)(2) or (b)(3) must include interest at a rate determined by
the board.
(e) The following provisions apply to a person described in
subsection (a):
(1) A minimum benefit applies to participants receiving credit in
the judges' 1985 benefit system from service covered by the
public employees' retirement fund. The minimum benefit is
payable at sixty-five (65) years of age or when the participant is
at least fifty-five (55) years of age and meets the requirements
under section 6(2)(B) of this chapter and equals the actuarial
equivalent of the vested retirement benefit that is:
(A) payable to the member at normal retirement under
IC 5-10.2-4-1 as of the day before the transfer; and
(B) based solely on:
(i) creditable service;
(ii) the average of the annual compensation; and
(iii) the amount credited under IC 5-10.2 and IC 5-10.3 to
the annuity savings account of the transferring member as of
the day before the transfer.
(2) If the requirements of subsection (b)(2) and (b)(3) are
satisfied, the board shall transfer from the public employees'
retirement fund to the judges' 1985 benefit system the amount
credited to the annuity savings account and the present value of
the retirement benefit payable at sixty-five (65) years of age or at
least fifty-five (55) years of age under section 6(2)(B) of this
chapter that is attributable to the transferring participant.
(3) The amount the state and the participant must contribute to the
judges' 1985 benefit system under subsection (b) shall be reduced
by the amount transferred to the judges' 1985 benefit system by
the board under subdivision (2).
(4) If the requirements of subsection (b)(2) and (b)(3) are
satisfied, credit for prior service in the public employees'
retirement fund as a full-time referee, full-time commissioner, or
full-time magistrate is waived. Any credit for the prior service
under the judges' 1985 benefit system may be granted only under
subsection (b).
SOURCE: IC 33-13-10.1-14.5; (00)HB1025.2.7. -->
SECTION 7. IC 33-13-10.1-14.5, AS ADDED BY P.L.195-1999,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2001]: Sec. 14.5. (a) This section applies only to a
person who:
(1) is a judge
or full-time magistrate participating under this
chapter;
(2) before becoming a judge
or full-time magistrate was a
member of an Indiana public employees' retirement fund;
(3) received credited service under an Indiana public employees'
retirement fund for the employment described in subdivision (2),
and the credited service is not eligible for prior service credit
under section 14 of this chapter;
(4) has not attained vested status under an Indiana public
employees' retirement fund for the employment described in
subdivision (2); and
(5) has at least eight (8) years of service credit in the judges'
retirement system.
(b) If a person becomes a participant in the judges' 1985 benefit
system under this chapter, credit for service described in subsection (a)
shall be granted under this chapter by the board if:
(1) the prior service was credited under an Indiana public
employees' retirement fund; and
(2) the judge or full-time magistrate pays in a lump sum or in a
series of payments determined by the board, not exceeding five
(5) annual payments, the amount determined by the actuary for
the 1985 benefit system as the total cost of the service.
(c) If the requirements of subsection (b) are not satisfied, a
participant is entitled to credit only for years of service after the date of
participation in the 1985 benefit system.
(d) An amortization schedule for contributions paid under this
section must include interest at a rate determined by the board.
(e) If the requirements of subsection (b) are satisfied, the
appropriate board shall transfer from the retirement fund described in
subsection (a)(2) to the judges' 1985 benefit system the amount
credited to the judge's annuity savings account and the present value of
the retirement benefit payable at sixty-five (65) years of age that is
attributable to the transferring participant.
(f) The amount a participant must contribute to the judges' 1985
benefit system under subsection (b) shall be reduced by the amount
transferred to the judges' 1985 benefit system by the board under
subsection (e).
(g) If the requirements of subsection (b) are satisfied, credit for prior
service in an Indiana public employees' retirement fund is waived.
SOURCE: IC 33-13-10.1-15; (00)HB1025.2.8. -->
SECTION 8. IC 33-13-10.1-15 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2001]:
Sec. 15. Subject to section 13 of this
chapter, the monthly benefit payable under this chapter after June
30, 2001,
to participants, survivors, and beneficiaries shall be
increased by the same percentages and under the same conditions
as monthly benefits are increased under IC 5-10.2-5 for members
of the public employees' retirement fund and their survivors and
beneficiaries.
SOURCE: IC 33-14-9-11; (00)HB1025.2.9. -->
SECTION 9. IC 33-14-9-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 11. (a) Except as
provided in subsection subsections (b) and (c), each participant shall
make contributions to the fund as follows:
(1) A participant described in section 7(1) of this chapter shall
make contributions of six percent (6%) of each payment of salary
received for services after December 31, 1989.
(2) A participant described in section 7(2) or 7(3) of this chapter
shall make contributions of six percent (6%) of each payment of
salary received for services after June 30, 1994.
A participant's contributions shall be deducted from the participant's
monthly salary by the auditor of state and credited to the fund.
(b) No contribution is required:
(1) because of any salary received after the participant has
contributed to the fund for twenty-two (22) years; or
(2) during any period that the participant is not serving as
provided in section 7 of this chapter.
(c) The state may pay the contributions for a participant.
SOURCE: IC 33-14-9-13; (00)HB1025.2.10. -->
SECTION 10. IC 33-14-9-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 13. A participant whose
employment in a position described in section 7 of this chapter is
terminated is entitled to a retirement benefit computed under section
14 or 16 of this chapter, beginning on the date specified by the
participant in a written application, if all of the following conditions are
met:
(1) The application for retirement benefits and the choice of the
retirement date is filed on a form provided by the board and the
retirement date is:
(A) after the cessation of the participant's service;
(B) on the first day of a month; and
(C) not more than six (6) months before the date the
application is received by the board.
However, if the board determines that a participant is incompetent
to file for benefits and choose a retirement date, the retirement
date may be any date that is the first of the month after the time
the participant became incompetent.
(2) The participant:
(A) is at least sixty-two (62) years of age and has at least ten
(10) eight (8) years of service credit; or
(B) meets the requirements for disability benefits under
section 15 of this chapter.
(3) The participant is not receiving and is not entitled to receive
any salary for services currently performed.
SOURCE: IC 33-14-9-14; (00)HB1025.2.11. -->
SECTION 11. IC 33-14-9-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 14. (a) This section
does not apply to a participant who meets the requirements for
disability benefits under section 15 of this chapter.
(b) Except as provided in subsections (c) and (d), the amount of the
annual retirement benefit to which a participant who applies for a
retirement benefit and who is at least sixty-five (65) years of age is
entitled equals the product of:
(1) the highest annual salary that was paid to the participant
before separation from service; multiplied by
(2) the percentage prescribed in the following table:
TABLE
Participant's Years
Percentage
of Service
Less than
10 8 0
8 24%
9 27%
10
25% 30%
11
27.5% 33%
12
30% 50%
13
32.5% 51%
14
35% 52%
15
37.5% 53%
16
40% 54%
17
42.5% 55%
18
45% 56%
19
47.5% 57%
20
or more 50% 58%
21 59%
22 or more 60%
(c) If a participant who applies for a retirement benefit is not at least
sixty-five (65) years of age, the participant is entitled to receive a
reduced annual retirement benefit that equals the benefit that would be
payable if the participant was sixty-five (65) years of age reduced by
one-fourth one-tenth percent
(0.25%) (0.1%) for each month that the
participant's age at retirement precedes the participant's sixty-fifth
birthday.
(d) Benefits payable to a participant under this section are reduced
by the pension, if any, that would be payable to the participant from the
public employees' retirement fund if the participant had retired from the
public employees' retirement fund on the date of the participant's
retirement from the prosecuting attorneys retirement fund. Benefits
payable to a participant under this section are not reduced by annuity
payments made to the participant from the public employees' retirement
fund.
(e) In the event benefits payable from the public employees'
retirement fund exceed the benefits payable from the prosecuting
attorneys retirement fund, the participant is entitled at retirement to
withdraw from the prosecuting attorneys retirement fund the total sum
contributed plus interest at the rate of five and one-half percent (5.5%)
compounded annually.
SOURCE: IC 33-14-9-17; (00)HB1025.2.12. -->
SECTION 12. IC 33-14-9-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 17. (a) The surviving
spouse of a participant who:
(1) dies; and
(2) on the date of death:
(A) was receiving benefits under this chapter;
(B) had completed at least ten (10) eight (8) years of service
in a position described in section 7 of this chapter; or
(C) met the requirements for disability benefits under section
15 of this chapter;
is entitled, regardless of the participant's age, to the benefit prescribed
by subsection (b).
(b) The surviving spouse is entitled to a benefit for life equal to the
greater of:
(1) seven thousand dollars ($7,000); or
(2) fifty percent (50%) of the amount of retirement benefit the
participant was drawing at the time of death, or to which the
participant would have been entitled had the participant retired
and begun receiving retirement benefits on the date of death, with
reductions as necessary under section 14(c) of this chapter.
(c) Benefits payable to a surviving spouse under this section are
reduced by the amounts, if any, that are payable to the surviving spouse
from the public employees' retirement fund as a result of the
participant's death.
SOURCE: IC 33-14-9-24; (00)HB1025.2.13. -->
SECTION 13.
IC 33-14-9-24
IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2001]:
Sec. 24. Subject to section 20 of this
chapter, the monthly benefit payable under this chapter after June
30, 2001, to participants, survivors, and beneficiaries shall be
increased by the same percentages and under the same conditions
as monthly benefits are increased under
IC 5-10.2-5
for members
of the public employees' retirement fund and their survivors and
beneficiaries.