Introduced Version
***
SENATE BILL No. 78
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 33-37; IC 33-39-6-5.5; IC 33-39-7.
Synopsis: Prosecuting attorneys retirement fund issues. Defines
"salary", for purposes of computing a retirement benefit, to include the
total salary paid to a participant in the prosecuting attorneys retirement
fund (fund) by the state and by a county or counties. Eliminates
contributions for a participant with at least 22 years of creditable
service. For a participant who applies for a retirement benefit after
December 31, 2010, bases the computation of the annual retirement
benefit on the salary being paid for the office that the participant held
at the time of the participant's separation from service. (Currently, the
computation is based on the highest annual salary that was paid to the
participant before separation from service.) Reduces from 0.25% to
0.10% per month the reduction factor for a retirement benefit computed
for a participant who retires before 65 years of age. Provides a prorated
retirement benefit for partial years of service. Makes changes to the
fund's disability benefit by: (1) eliminating the minimum service
required to receive a disability benefit; (2) redefining "disability"; and
(3) increasing the salary percentages used to compute a disability
benefit to equal the percentages used by the judges' retirement system
for the same years of service. Increases the minimum annual survivor
benefit from $7,000 to $12,000. Provides that benefit increases paid
after December 31, 2010, to a participant who applied for a retirement
benefit before January 1, 2011, or to certain terminated vested
participants, are equal to the percentage by which the salary being paid
for the office that the participant held at the time of the participant's
separation from service increases. Increases the court administration
fee from $5 to $7 for all courts except the Marion County small claims
(Continued next page)
Effective: July 1, 2009; January 1, 2010.
Kruse
January 7, 2009, read first time and referred to Committee on Pensions and Labor.
Digest Continued
court, and directs that the additional amount be paid into the fund. (The
introduced version of this bill was prepared by the pension
management oversight commission.)
Introduced
First Regular Session 116th General Assembly (2009)
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.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2008 Regular Session of the General Assembly.
SENATE BILL No. 78
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 33-37-5-27; (09)IN0078.1.1. -->
SECTION 1. IC 33-37-5-27, AS AMENDED BY P.L.122-2008,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 27. (a) This subsection does not apply to the
following:
(1) A criminal proceeding.
(2) A proceeding to enforce a statute defining an infraction.
(3) A proceeding for an ordinance violation.
In each action filed in a court described in IC 33-37-1-1, and in each
small claims action in a court described in IC 33-34, the clerk shall
collect a court administration fee of five seven dollars ($5). ($7).
(b) In each action in which a person is:
(1) convicted of an offense;
(2) required to pay a pretrial diversion fee;
(3) found to have committed an infraction; or
(4) found to have violated an ordinance;
the clerk shall collect a court administration fee of five seven dollars
($5). ($7).
(c) After June 30, 2009, the clerk shall collect a court
administration fee of five dollars ($5) in each small claims action
filed in a court described in IC 33-34.
SOURCE: IC 33-37-7-9; (09)IN0078.1.2. -->
SECTION 2. IC 33-37-7-9, AS AMENDED BY P.L.122-2008,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2010]: Sec. 9. (a) On June 30 and on December 31 of
each year, the auditor of state shall transfer to the treasurer of state
nine
ten million
two three hundred
seventy-seven twenty-one thousand
twenty-three one hundred fifty-two dollars
($9,277,023)
($10,321,152) for distribution under subsection (b).
(b) On June 30 and on December 31 of each year, the treasurer of
state shall deposit into:
(1) the family violence and victim assistance fund established by
IC 12-18-5-2 an amount equal to
eight seven and
three-hundredths twenty-two hundredths percent
(8.03%);
(7.22%);
(2) the Indiana judges' retirement fund established by
IC 33-38-6-12 an amount equal to
thirty-eight thirty-four and
fifty-five sixty-six hundredths percent
(38.55%); (34.66%);
(3) the law enforcement academy building fund established by
IC 5-2-1-13 an amount equal to two and
fifty-six thirty-one
hundredths percent
(2.56%); (2.31%);
(4) the law enforcement training fund established by IC 5-2-1-13
an amount equal to
ten nine and
twenty-seven twenty-four
hundredths percent
(10.27%); (9.24%);
(5) the violent crime victims compensation fund established by
IC 5-2-6.1-40 an amount equal to
eleven ten and
ninety-three
seventy-three hundredths percent
(11.93%); (10.73%);
(6) the motor vehicle highway account an amount equal to
nineteen seventeen and
forty-nine fifty-two hundredths percent
(19.49%); (17.52%);
(7) the fish and wildlife fund established by IC 14-22-3-2 an
amount equal to
twenty-five twenty-three hundredths percent
(0.25%); (0.23%);
(8) the Indiana judicial center drug and alcohol programs fund
established by IC 12-23-14-17 for the administration,
certification, and support of alcohol and drug services programs
under IC 12-23-14 an amount equal to one and
sixty-three
forty-seven hundredths percent
(1.63%); and (1.47%);
(9) the DNA sample processing fund established under
IC 10-13-6-9.5 for the funding of the collection, shipment,
analysis, and preservation of DNA samples and the conduct of a
DNA data base program under IC 10-13-6 an amount equal to
seven six and twenty-nine fifty-six hundredths percent (7.29%);
(6.56%); and
(10) the prosecuting attorneys retirement fund established by
IC 33-39-7-9 an amount equal to ten and six hundredths
percent (10.06%);
of the amount transferred by the auditor of state under subsection (a).
(c) On June 30 and on December 31 of each year, the auditor of
state shall transfer to the treasurer of state for deposit into the public
defense fund established under IC 33-40-6-1:
(1) after June 30, 2004, and before July 1, 2005, one million
seven hundred thousand dollars ($1,700,000); and
(2) after June 30, 2005, two million seven hundred thousand
dollars ($2,700,000).
SOURCE: IC 33-39-6-5.5; (09)IN0078.1.3. -->
SECTION 3. IC 33-39-6-5.5 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2009]:
Sec. 5.5. (a) In addition to the salary provided under
section 2 or 5 of this chapter, a full-time prosecuting attorney or
deputy prosecuting attorney may receive any additional salary
provided by the county under IC 36-2-5-14 or IC 36-3-6-3(c).
(b) Before November 2 each year, the county auditor of each
county shall certify to the prosecuting attorneys council the
amounts, if any, the county will provide during the ensuing
calendar year for full-time prosecuting attorney and deputy
prosecuting attorney salaries under IC 36-2-5-14 or IC 36-3-6-3(c).
(c) The county council of a county that provides additional
salary under IC 36-2-5-14 or IC 36-3-6-3(c) shall appropriate a
sufficient amount to pay the additional salary provided by the
county.
(d) The state shall deposit quarterly in the state general fund the
money received from the counties under subsection (e) for
additional salary provided under IC 36-2-5-14 or IC 36-3-6-3(c).
(e) A county that provides additional salary for a full-time
prosecuting attorney or deputy prosecuting attorney under
IC 36-2-5-14 or IC 36-3-6-3(c) shall determine for the prosecuting
attorney and each deputy prosecuting attorney whether the total
of:
(1) the payment made on behalf of that prosecuting attorney
or deputy prosecuting attorney;
(2) previous payments made on behalf of that prosecuting
attorney or deputy prosecuting attorney in the same calendar
year; and
(3) the state share of:
(A) the prosecuting attorney's salary under section 5 of this
chapter; or
(B) the deputy prosecuting attorney's salary under section
2 of this chapter;
exceeds the Social Security wage base established by the federal
government for that year. If the total does not exceed the Social
Security wage base, the payment made under subsection (d) on
behalf of that prosecuting attorney or deputy prosecuting attorney
must also be accompanied by an amount equal to the employer's
share of Social Security taxes and Medicare taxes. If the total
exceeds the Social Security wage base, the part of the payment on
behalf of the prosecuting attorney or deputy prosecuting attorney
that is below the Social Security wage base must be accompanied
by an amount equal to the employer's share of Social Security taxes
and Medicare taxes, and the part of the payment on behalf of the
prosecuting attorney or deputy prosecuting attorney that exceeds
the Social Security wage base must be accompanied by an amount
that is equal to the employer's share of Medicare taxes.
SOURCE: IC 33-39-7-7; (09)IN0078.1.4. -->
SECTION 4. IC 33-39-7-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 7. As used in this
chapter, "salary" means:
(1) before January 1, 2011, the salary paid to a participant by the
state; or
(2) after December 31, 2010, the total salary paid to a
participant by the state plus any additional salary paid by a
county or counties under IC 36-2-5-14(b) or IC 36-3-6-3(c);
determined without regard to any salary reduction agreement
established under Section 125 of the Internal Revenue Code. Before
January 1, 2011, the term does not include an amount paid to a
participant by a county or counties.
SOURCE: IC 33-39-7-12; (09)IN0078.1.5. -->
SECTION 5. IC 33-39-7-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 12. (a) Except as
provided in subsection (b)
or (c), each participant shall make
contributions to the fund as follows:
(1) A participant described in section 8(a)(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 8(a)(2) or 8(a)(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) The state may pay the contributions for a participant.
(c) After December 31, 2010, a participant who completes
twenty-two (22) years of creditable service in the fund is not
required to make any additional contributions to the fund.
SOURCE: IC 33-39-7-16; (09)IN0078.1.6. -->
SECTION 6. IC 33-39-7-16, AS AMENDED BY P.L.33-2006,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 16. (a) This section does not apply to a participant
who meets the requirements for disability benefits under section 17 of
this chapter.
(b) Except as provided in subsections (c) and
(d), (e), 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)
one (1) of the following:
(A) before January 1, 2011, the highest annual salary that
was paid to the participant before separation from service;
or
(B) after December 31, 2010, the applicable salary
determined under subsection (g); multiplied by
(2) the percentage prescribed in the following table:
Participant's Years
Percentage
of Service
Less than 8
0
8 24%
9 27%
10 30%
11 33%
12 50%
13 51%
14 52%
15 53%
16 54%
17 55%
18 56%
19 57%
20 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 were sixty-five (65) years of age reduced by
one-fourth percent (0.25%) one (1) of the following percentages for
each month that the participant's age at retirement precedes the
participant's sixty-fifth birthday:
(1) For a participant who applies for a retirement benefit
before January 1, 2011, one-quarter percent (0.25%).
(2) For a participant who applies for a retirement benefit
after December 31, 2010, one-tenth percent (0.1%).
(d) This subsection applies to a retirement benefit computed
after December 31, 2010, under subsection (b) or (c). If a
participant has a partial year of service in addition to at least eight
(8) full years of service, a participant is entitled to have added to
the percentage prescribed under subsection (b)(2) an additional
amount that is determined by prorating between the applicable
percentages based on the number of months in the partial year of
service.
(d) (e) 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) (f) If 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.
(g) The applicable salary is one (1) of the following:
(1) The highest annual salary that was paid to the participant
before separation from service for:
(A) a participant who applies to receive a retirement
benefit from the fund before January 1, 2011; or
(B) a participant who:
(i) before January 1, 2011, separates from service;
(ii) is entitled to receive a retirement benefit from the
fund, but does not apply before January 1, 2011, to
receive a retirement benefit from the fund; and
(iii) does not earn any service credit in the fund after
December 31, 2010.
(2) The salary being paid for the office that the participant
held at the time of the participant's separation from service
for a participant who:
(A) applies to receive a benefit after December 31, 2010;
and
(B) is not a participant described in subdivision (1)(B).
SOURCE: IC 33-39-7-17; (09)IN0078.1.7. -->
SECTION 7. IC 33-39-7-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 17. (a) Except as
provided in subsection
(b), (c), a participant who becomes disabled
before January 1, 2011, while in active service in a position described
in section 8 of this chapter may retire for the duration of the disability
if:
(1) the participant has at least five (5) years of creditable service;
(2) the participant has qualified for Social Security disability
benefits and has furnished proof of the Social Security
qualification to the board; and
(3) at least once each year until the participant becomes sixty-five
(65) years of age a representative of the board verifies the
continued disability.
For purposes of this section, a participant who has qualified for
disability benefits under the federal civil service system is considered
to have met the requirement of subdivision (2) if the participant
furnishes proof of the qualification to the board.
(b) Except as provided in subsection (c), a participant who
becomes disabled after December 31, 2010, while in active service
in a position described in section 8 of this chapter may retire for
the duration of the disability if:
(1) the board determines that:
(A) the participant is incapacitated because of at least one
(1) physical or mental condition that renders the
participant unable to perform the essential duties of a
prosecuting attorney; and
(B) the condition is likely to be permanent; and
(2) at least once each year until the participant becomes
sixty-five (65) years of age the board verifies the continued
disability.
(b) (c) Benefits may not be provided under this chapter for any
disability that:
(1) results from an intentionally self-inflicted injury or attempted
suicide while sane or insane;
(2) results from the participant's commission or attempted
commission of a felony; or
(3) begins within two (2) years after a participant's entry or
reentry into active service in a position described in section 8 of
this chapter and was caused or contributed to by a mental or
physical condition that manifested itself before the participant
entered or reentered active service.
(c) (d) To the extent required by the Americans with Disabilities
Act, the transcripts, reports, records, and other material generated to
prove that an individual is qualified for disability benefits under this
section shall be:
(1) kept in separate medical files for each member; and
(2) treated as confidential medical records.
SOURCE: IC 33-39-7-18; (09)IN0078.1.8. -->
SECTION 8. IC 33-39-7-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 18. (a) Except as
provided in subsection (b), (c), the amount of the annual benefit
payable to a participant who meets the requirements for disability
benefits under section 17 of this chapter is equal to the product of:
(1) the annual salary that was paid to the participant at the time of
separation from service; multiplied by
(2) the applicable percentage prescribed in one (1) of the
following table: tables:
(A) For a participant who applies for a disability benefit
before January 1, 2011:
Participant's Years
Percentage
of Service
Less than 5
0
5-10
40%
11
41%
12
42%
13
43%
14
44%
15
45%
16
46%
17
47%
18
48%
19
49%
20 or more
50%
(B) For a participant who applies for a disability benefit
after December 31, 2010:
Participant's Years
Percentage
of Service
0-12
50%
13
51%
14
52%
15
53%
16
54%
17
55%
18
56%
19
57%
20
58%
21
59%
22 or more
60%
(b) This subsection applies to a disability benefit computed after
December 31, 2010, under subsection (a). If a participant has a
partial year of service in addition to at least eight (8) full years of
service, a participant is entitled to have added to the percentage
prescribed under subsection (a)(2) an additional amount that is
determined by prorating between the applicable percentages based
on the number of months in the partial year of service.
(b) (c) Benefits payable to a participant under this section are
reduced by the amounts, if any, that are payable to the participant from
the public employees' retirement fund.
SOURCE: IC 33-39-7-19; (09)IN0078.1.9. -->
SECTION 9. IC 33-39-7-19, AS AMENDED BY P.L.33-2006,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 19. (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 eight (8) years of service in a
position described in section 8 of this chapter; or
(C) met the requirements for disability benefits under section
17 of this chapter;
is entitled, regardless of the participant's age, to the benefit prescribed
by subsection (b)
or (c).
(b)
This subsection applies to the surviving spouse of a
participant who dies before January 1, 2011. 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 16(c) of this chapter.
(c) This subsection applies to the surviving spouse of a
participant who dies after December 31, 2010. The surviving
spouse is entitled to a benefit for life equal to the greater of:
(1) twelve thousand dollars ($12,000); 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 if the participant retired
and began receiving retirement benefits on the date of death,
with reductions as necessary under section 16(c) of this
chapter.
(c) (d) 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 33-39-7-26; (09)IN0078.1.10. -->
SECTION 10. IC 33-39-7-26 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2009]:
Sec. 26. (a) This section applies:
(1) only to a participant:
(A) who applies to receive a retirement benefit from the
fund before January 1, 2011; or
(B) who:
(i) before January 1, 2011, separates from service;
(ii) is entitled to receive a retirement benefit from the
fund but does not apply before January 1, 2011, to
receive a retirement benefit; and
(iii) does not earn any service credit in the fund after
December 31, 2010; and
(2) only in state fiscal years beginning after June 30, 2011.
(b) If a salary increase is provided in a particular state fiscal
year under IC 33-39-6-5 or any other provision enacted by the
general assembly in the state fiscal year, the monthly benefit
payable under this chapter to a participant described in subsection
(a) shall be increased by the same percentage by which salaries are
increased under IC 33-39-6-5 in that state fiscal year. The
percentage increase shall be applied to the monthly benefit
(including any previous increases to the monthly benefit received
under this section or under any other provision) received by the
participant as of June 30 of the immediately preceding state fiscal
year. The percentage increase to the monthly benefit takes effect
at the same time that the salary increase under IC 33-39-6-5 takes
effect.
(c) An increase payable under this section may not include any
amount based on the percentage by which any salary provided by
a county or counties under IC 36-2-5-14 or IC 36-3-6-3(c) is
increased.
SOURCE: ; (09)IN0078.1.11. -->
SECTION 11. [EFFECTIVE JULY 1, 2009]
(a) As used in this
SECTION, "fund" refers to the prosecuting attorneys retirement
fund established by IC 33-39-7-9.
(b) IC 33-39-7-7, IC 33-39-7-12, IC 33-39-7-16, IC 33-39-7-17,
IC 33-39-7-18, and IC 33-39-7-19, all as amended by this act, apply
only to a participant who, after December 31, 2010, earns
creditable service in the fund for service in a position described in
IC 33-39-7-8(a).