Citations Affected:
IC 21-6.1-2.
Synopsis: TRF fund membership and contributions. Requires the board
of trustees of the teachers' retirement fund (TRF) to assign certain
members to TRF's pre-1996 and 1996 accounts. Specifies the member
and employer contributions the TRF board must credit to the pre-1996
and the 1996 accounts. Requires participants in the pre-1996 account
who, after June 30, 1995, were hired by another school corporation or
institution covered by TRF (or rehired by a prior employer) to become
participants in the 1996 account, but provides that: (1) the member's
contributions to the pre-1996 annuity savings account; (2) employer
contributions, if any, to the pre-1996 retirement allowance account; and
(3) liability for employer contributions based on service credit earned;
before the member was hired by another school corporation or
institution covered by TRF (or rehired by a prior employer) remain in
the pre-1996 account.
Effective: July 1, 2003.
January 7, 2003, read first time and referred to Committee on Pensions and Labor.
A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
SECTION 1.
IC 21-6.1-2-1.5
IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 1.5. (a) The board shall assign to
the pre-1996 account described in section 2(a)(1) of this chapter
fund members who were first hired before July 1, 1995, by a school
corporation or other institution covered by the fund.
(b) The board shall assign the following fund members to the
1996 account described in section 2(a)(2) of this chapter:
(1) A member who was first hired after June 30, 1995, by a
school corporation or other institution covered by the fund.
(2) A member who:
(A) before July 1, 1995, served in a position covered by the
fund; and
(B) after June 30, 1995, was hired by another school
corporation or institution covered by the fund or rehired
by a prior employer.
SECTION 2.
IC 21-6.1-2-2
, AS AMENDED BY P.L.291-2001,
SECTION 126, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 2. (a) The board shall segregate the
fund into the following accounts:
(1) The pre-1996 account.
(2) The 1996 account.
(b) The board shall segregate each of the accounts established under
subsection (a) into the following subaccounts:
(1) The annuity savings account.
(2) The retirement allowance account.
(c) Except as provided in subsection (d), member contributions shall
be credited to the annuity savings accounts within the pre-1996
account.
(d) Member contributions made after June 30, 1995, with respect to
the following members shall be credited to the annuity savings account
within the 1996 account:
(1) A member who was hired after June 30, 1995, by a school
corporation or other institution covered by the fund.
(2) A member who:
(A) before July 1, 1995, served in a position covered by the
fund; and
(B) after June 30, 1995, and before July 1, 2001, was hired by
another school corporation or institution covered by the fund
or rehired by a prior employer.
(3) A member described in subdivision (2) who, after June 30,
2001, is hired by another school corporation or institution covered
by the fund or rehired by a prior employer.
(e) Member contributions made to the pre-1996 account with
respect to a member covered by subsection (d) shall be transferred to
the annuity savings account within the 1996 account.
(f) Employer contributions made after June 30, 1995, with respect
to members described in subsection (d) shall be credited to the
retirement allowance account within the 1996 account. Employer
contributions made after June 30, 1995, with respect to all other
members shall be credited to the retirement allowance account within
the pre-1996 account.
(g) Employer contributions, if any (as determined by the board),
made to the pre-1996 account with respect to a member covered by
subsection (d) shall be transferred to the retirement allowance account
within the 1996 account.
(c) The board shall credit member contributions to the annuity
savings accounts within the pre-1996 account as follows:
(1) Contributions of members assigned to the pre-1996
account under section 1.5(a) of this chapter.
(2) Contributions made by members assigned to the 1996
account under section 1.5(b)(2) before the date, after June 30,
1995, on which the member was hired by another school
corporation or institution covered by the fund or rehired by
a prior employer.
(d) The board shall credit member contributions of members
assigned to the 1996 account under section 1.5(b) of this chapter to
the annuity savings accounts within the 1996 account, except for
contributions made by members that are credited to the annuity
savings accounts within the pre-1996 account under subsection
(c)(2).
(e) The board shall credit employer contributions to the
retirement allowance account within the pre-1996 account as
follows:
(1) Contributions made for members assigned to the pre-1996
account under section 1.5(a) of this chapter.
(2) Contributions made for members assigned to the 1996
account under section 1.5(b)(2) of this chapter before the date,
after June 30, 1995, on which the member was hired by
another school corporation or institution covered by the fund
or rehired by a prior employer.
(f) The board shall credit employer contributions made for
members assigned to the 1996 account under section 1.5(b) of this
chapter to the retirement allowance account within the 1996
account, except for contributions made for members that are
credited to the retirement allowance account within the pre-1996
account under subsection (e)(2).
(h) (g) The board shall administer these accounts and subaccounts
as specified in
IC 5-10.2-2.