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WITHDRAWN Noes _______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.)
________________________________________
MO012805/DI 102 2007