SB 128-3_ Filed 03/15/2007, 10:05 Reske
Adopted 3/20/2007


Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 128 be amended to read as follows:

SOURCE: Page 1, line 1; (07)MO012805.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 5-10-5.5-7; (07)MO012805.1. -->     "SECTION 1. IC 5-10-5.5-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7. (a) Upon election to become a participant by any officer who is a member of the public employees' retirement fund, the board shall transfer all creditable service standing to the credit of the electing officer under the public employees' retirement fund to the credit of the electing officer under the retirement plan created by this chapter.
     (b) Creditable service under this chapter, including credit for military service, shall accrue and be computed and credited to participants in the same manner and in the same amount as creditable service accrues, is computed and credited under the public employees' retirement law.
     (c) In addition to creditable service computed under subsection (b), a participant is entitled to receive creditable service under this chapter for the time the participant receives disability benefits under a disability plan established under IC 5-10-8-7.
SOURCE: IC 5-10-5.5-7.5; (07)MO012805.2. -->     SECTION 2. IC 5-10-5.5-7.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 7.5. (a) As used in this section, "board" refers to the board of trustees of the public employees' retirement fund established by IC 5-10.3-3-1.
    (b) As used in this section, "public retirement fund" refers collectively to:
        (1) the public employees' retirement fund (IC 5-10.3);
        (2) the Indiana state teachers' retirement fund (IC 5-10.4);
        (3) the state police pension trust (IC 10-12); and
        (4) the 1977 police officers' and firefighters' pension and disability fund (IC 36-8-8).
    (c) Subject to this section, a participant may purchase service credit for the participant's prior service in a position covered by a public retirement fund.
    (d) To purchase the service credit described in subsection (c), a participant must meet the following requirements:
        (1) The participant has at least one (1) year of creditable service in the retirement plan created by this chapter.
        (2) The participant has not attained vested status in and is not an active participant in the public retirement fund from which the participant is purchasing the service credit.
        (3) Before the participant retires, the participant makes contributions to the retirement plan created by this chapter as follows:
            (A) Contributions that are equal to the product of the following:
                (i) The participant's salary at the time the participant actually makes a contribution for the service credit.
                (ii) A rate, determined by the actuary for the retirement plan created by this chapter, based on the age of the participant at the time the participant actually makes a contribution for service credit and computed to result in a contribution amount that approximates the actuarial present value of the benefit attributable to the service credit purchased.
                (iii) The number of years of service credit the participant intends to purchase.
            (B) Contributions for any accrued interest, at a rate determined by the actuary for the retirement plan created by this chapter, for the period from the participant's initial participation in the retirement plan created by this chapter to the date payment is made by the participant.
    (e) At the request of the participant purchasing service credit under this section, the amount a participant is required to contribute under subsection (d)(3) may be reduced by a trustee to trustee transfer from a public retirement fund in which the participant has an account that contains amounts attributable to member contributions (plus any credited earnings) to the retirement plan created by this chapter. The participant may direct the transfer of an amount only to the extent necessary to fund the service purchase under subsection (d)(3). The participant

shall complete any forms required by the public retirement fund from which the participant is requesting a transfer or the retirement plan created by this chapter before the transfer is made.
    (f) At least ten (10) years of service in the retirement plan created by this chapter is required before a participant may receive a benefit based on service credit purchased under this section.
    (g) A participant who:
        (1) terminates employment before satisfying the eligibility requirements necessary to receive an annual retirement allowance; or
        (2) receives an annual retirement allowance for the same service from another tax supported governmental retirement plan other than under the federal Social Security Act;
may withdraw the purchase amount plus accumulated interest after submitting a properly completed application for a refund to the retirement plan created by this chapter.
    (h) The following may apply to the purchase of service credit under this section:
        (1) The board may allow a participant to make periodic payments of the contributions required for the purchase of the service credit. The board shall determine the length of the period during which the payments must be made.
        (2) The board may deny an application for the purchase of service credit if the purchase would exceed the limitations under Section 415 of the Internal Revenue Code.
        (3) A participant may not claim the service credit for purposes of determining eligibility for a benefit or computing benefits unless the participant has made all payments required for the purchase of the service credit.
    (i) To the extent permitted by the Internal Revenue Code and applicable regulations, the retirement plan created by this chapter may accept, on behalf of a participant who is purchasing permissive service credit under this chapter, a rollover of a distribution from any of the following:
        (1) A qualified plan described in Section 401(a) or Section 403(a) of the Internal Revenue Code.
        (2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (3) An eligible plan that is maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state under Section 457(b) of the Internal Revenue Code.
        (4) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code.
    (j) To the extent permitted by the Internal Revenue Code and

applicable regulations, the retirement plan created by this chapter may accept, on behalf of a participant who is purchasing permissive service credit under this chapter, a trustee to trustee transfer from any of the following:
        (1) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (2) An eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.

SOURCE: IC 5-10-5.5-8; (07)MO012805.3. -->     SECTION 3. IC 5-10-5.5-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 8. (a) Except as provided in subsection (c), every participant shall contribute three four percent (3%) (4%) of the first eight thousand five hundred dollars ($8,500) of his participant's annual salary to the participants' savings fund.
    (b) Contributions shall be made in the form of payroll deductions from each and every payment of salary received by the participant. Every participant shall, as a condition precedent to his becoming a participant, consent to the payroll deductions.
     (c) An employer may pay all or a part of the contributions for the participant. All contributions made by an employer under this subsection shall be treated as pick-up contributions under Section 414(h)(2) of the Internal Revenue Code.
SOURCE: IC 5-10-5.5-10; (07)MO012805.4. -->     SECTION 4. IC 5-10-5.5-10 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 10. (a) Benefits provided under this section are subject to section 2.5 of this chapter.
    (b) The annual retirement allowance of a participant, payable in equal monthly installments beginning on his the participant's normal retirement date, shall be a percentage of his the participant's average annual salary, such percentage to be twenty-five percent (25%) increased by one and two-thirds percent (1 2/3%) of his the participant's average annual salary for each completed year of creditable service more than ten (10) years. and one percent (1%) of his average annual salary for each completed year of creditable service more than twenty-five (25) years.
    (c) The annual retirement allowance shall cease with the last monthly payment prior to the death of the participant.
SOURCE: IC 5-10-5.5-11; (07)MO012805.5. -->     SECTION 5. IC 5-10-5.5-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 11. (a) Any participant who has attained the age of forty-five (45) years and has accrued at least fifteen (15) years of creditable service may retire and become eligible for benefits as provided in section 12(a) of this chapter.
    (b) If:
        (1) a participant is at least fifty-five (55) years of age; and
        (2) the sum of the participant's years of creditable service and age in years equals at least eighty-five (85);
the participant may retire and become eligible for benefits as provided

in section 12(b) of this chapter.
     (c) A participant who:
        (1) is at least fifty (50) years of age; and
        (2) has accrued at least twenty-five (25) years of creditable service;
may retire and become eligible for benefits under section 12(b) of this chapter.

SOURCE: IC 5-10-5.5-12; (07)MO012805.6. -->     SECTION 6. IC 5-10-5.5-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 12. (a) The amount of annual retirement allowance payable in equal monthly installments to a participant who retires under section 11(a) of this chapter (relating to early retirement) shall be determined in accordance with section 10(a) of this chapter (relating to normal retirement). However, the amount of annual retirement allowance otherwise payable upon early retirement shall be reduced by one-quarter percent (1/4%) for each full month that the date of early retirement precedes the attainment of the participant's sixtieth birthday.
    (b) The amount of annual retirement allowance payable in equal monthly installments to a participant who retires under section 11(b) or 11(c) of this chapter (relating to early retirement) shall be determined in accordance with section 10(a) of this chapter (relating to normal retirement).
SOURCE: IC 5-10-5.5-13.5; (07)MO012805.7. -->     SECTION 7. IC 5-10-5.5-13.5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 13.5. (a) This section applies to participants whose disability occurred after June 30, 1987.
    (b) Benefits provided under this section are subject to section 2.5 of this chapter.
    (c) As used in this section, a disability is to be considered to have arisen in the line of duty if the disability is the direct result of:
        (1) a personal injury that occurs while the participant is on duty; or
        (2) a personal injury that occurs while the participant is off duty and responding to an offense or an emergency or a reported offense or emergency;
or if the disability is presumed incurred in the line of duty under IC 5-10-13.
    (d) A participant whose disability arose in the line of duty is entitled to a monthly benefit equal to the participant's monthly salary on the date of disability multiplied by the degree of impairment (expressed as a percentage impairment of the person as a whole). However, the monthly benefit under this subsection must be at least:
        (1) twenty percent (20%) of the participant's monthly salary on the date of the disability if the participant has more than five (5) years of service; or
        (2) ten percent (10%) of the participant's monthly salary on the date of the disability if the participant has five (5) or fewer years

of service.
    (e) A participant whose disability did not arise in the line of duty is entitled to a monthly benefit equal to one-half (1/2) of the participant's monthly salary on the date of disability multiplied by the degree of impairment (expressed as a percentage of the person as a whole). However, the monthly benefit under this subsection must be at least:
        (1) ten percent (10%) of the participant's monthly salary on the date of the disability if the participant has more than five (5) years of service; or
        (2) five percent (5%) of the participant's monthly salary on the date of the disability if the participant has five (5) or fewer years of service.
     (f) A participant who is receiving a disability benefit under subsection (d) is entitled:
        (1) to receive a disability benefit for the remainder of the participant's life; and
        (2) to have the participant's benefit recomputed under section 10 of this chapter (relating to normal retirement) when the participant becomes sixty (60) years of age.
".

SOURCE: Page 4, line 7; (07)MO012805.4. -->     Page 4, after line 7, begin a new paragraph and insert:
SOURCE: ; (07)MO012805.11. -->     "SECTION 11. [EFFECTIVE JULY 1, 2007] IC 5-10-5.5-7.5, as added by this act, and IC 5-10-5.5-8, as amended by this act, apply after June 30, 2007, to active participants in the state excise police, gaming agent, and conservation enforcement officers' retirement plan established by IC 5-10-5.5-2.
SOURCE: ; (07)MO012805.12. -->     SECTION 12. [EFFECTIVE JULY 1, 2007] IC 5-10-5.5-10, IC 5-10-5.5-11, and IC 5-10-5.5-12, all as amended by this act, apply to participants of the state excise police, gaming agent, and conservation enforcement officers' retirement plan established by IC 5-10-5.5-2 who retire after June 30, 2007.
SOURCE: ; (07)MO012805.13. -->     SECTION 13. [EFFECTIVE JULY 1, 2007] IC 5-10-5.5-7 and IC 5-10-5.5-13.5, both as amended by this act, apply to participants of the state excise police, gaming agent, and conservation enforcement officers' retirement plan established by IC 5-10-5.5-2
who become disabled after June 30, 2007.
".
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 128 as printed March 13, 2007.)

________________________________________

Representative Reske


MO012805/DI 102     2007