Introduced Version






SENATE BILL No. 82

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 5-10.2-4-1; IC 5-10.3-6-8.9.

Synopsis: Minimum retirement age. Eliminates the requirement that members of the public employees' retirement fund (PERF) who retire under the "rule of 85" must be at least 55 years of age.

Effective: July 1, 2009.





Kruse




    January 7, 2009, read first time and referred to Committee on Pensions and Labor.







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. 82



    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 5-10.2-4-1; (09)IN0082.1.1. -->     SECTION 1. IC 5-10.2-4-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 1. (a) This subsection applies to:
        (1) members of the public employees' retirement fund who retire before July 1, 1995; and
        (2) members of the Indiana state teachers' retirement fund who retire before May 2, 1989.
A member who has reached age sixty-five (65) and has at least ten (10) years of creditable service is eligible for normal retirement.
    (b) This subsection applies to members of the Indiana state teachers' retirement fund who retire after May 1, 1989, and to members of the public employees' retirement fund who retire after June 30, 1995, and before July 1, 2009, except as provided in section 1.7 of this chapter. A member is eligible for normal retirement if:
        (1) the member is at least sixty-five (65) years of age and has at least ten (10) years of creditable service;
        (2) the member is at least sixty (60) years of age and has at least

fifteen (15) years of creditable service; or
        (3) the member's age in years plus the member's years of service is at least eighty-five (85) and the member is at least fifty-five (55) years of age.
     (c) This subsection applies to members of the public employees' retirement fund who retire after June 30, 2009, except as provided in section 1.7 of this chapter. A member is eligible for normal retirement if:
        (1) the member is at least sixty-five (65) years of age and has at least ten (10) years of creditable service;
        (2) the member is at least sixty (60) years of age and has at least fifteen (15) years of creditable service; or
        (3) the member's age in years plus the member's years of service is at least eighty-five (85).

    (c) (d) A member who has reached age fifty (50) and has at least fifteen (15) years of creditable service is eligible for early retirement with a reduced pension.
    (d) (e) A member who is eligible for normal or early retirement is entitled to choose a retirement date on which the member's benefit begins if the following conditions are met:
        (1) The application for retirement benefits and the choice of the date is filed on a form provided by the board.
        (2) The date must be after the cessation of the member's service and be the first day of a month.
        (3) The retirement date is not more than six (6) months before the date the application is received by the board. However, if the board determines that a member 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 member became incompetent.

SOURCE: IC 5-10.3-6-8.9; (09)IN0082.1.2. -->     SECTION 2. IC 5-10.3-6-8.9, AS ADDED BY P.L.158-2006, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 8.9. (a) This section applies when certain employees of the state in particular departmental, occupational, or other definable classifications are terminated from employment with the state as a result of:
        (1) a lease or other transfer of state property to a nongovernmental entity; or
        (2) a contractual arrangement with a nongovernmental entity to perform certain state functions.
    (b) The governor shall request coverage under this section from the board whenever an employee of the state is terminated as described in

subsection (a).
    (c) The board must approve a request from the governor under subsection (b) unless approval violates subsection (k), federal or state law, or the terms of the fund.
    (d) As used in this section, "early retirement" means a member is eligible to retire with a reduced pension under IC 5-10.2-4-1, because the member:
        (1) is at least fifty (50) years of age; and
        (2) has at least fifteen (15) years of creditable service.
    (e) As used in this section, "normal retirement" means:
        (1) for a member who retires before July 1, 2009,
a member is eligible to retire under IC 5-10.2-4-1, because:
            (1) (A) the member is at least sixty-five (65) years of age and has at least ten (10) years of creditable service;
            (2) (B) the member is at least sixty (60) years of age and has at least fifteen (15) years of creditable service; or
            (3) (C) the member's age in years plus the member's years of service is at least eighty-five (85), and the member is at least fifty-five (55) years of age; or
         (2) for a member who retires after June 30, 2009, a member is eligible to retire under IC 5-10.2-4-1, because:
            (A) the member is at least sixty-five (65) years of age and has at least ten (10) years of creditable service;
            (B) the member is at least sixty (60) years of age and has at least fifteen (15) years of creditable service; or
            (C) the member's age in years plus the member's years of service is at least eighty-five (85).

    (f) The withdrawal of the employees described in subsection (a) from the fund is effective on a termination date established by the board. The board may not establish a termination date that occurs before all of the following have occurred:
        (1) The governor has requested coverage under this section and provided written notice of the following to the board:
            (A) The intent of the state to terminate the employees from employment.
            (B) The names of the terminated employees as of the date that the termination is to occur.
        (2) The expiration of a thirty (30) day period following the filing of the notice with the board.
        (3) The state complies with subsections (g) and (i).
    (g) A member who:
        (1) is an employee of the state described in subsection (a) with at

least twenty-four (24) months of creditable service as of the date of the notice under subsection (f); and
        (2) is listed in the notice under subsection (f);
is vested in the pension portion of the member's retirement benefit. The state must contribute to the fund the amount the board determines is necessary to completely fund the vested benefit. The contribution by the state must be made in a lump sum or in a series of payments determined by the board. The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of creditable service.
    (h) A member who is covered by subsection (g) and who is at least sixty-five (65) years of age as of the date of the notice under subsection (f) may elect to retire under IC 5-10.2-4-1 even if the member has less than ten (10) years of service. The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of creditable service.
    (i) A member who is covered by subsection (f) and who, as of the date of the notice under subsection (f), is less than twenty-four (24) months from being eligible for normal or early retirement under IC 5-10.2-4-1 may elect to retire by purchasing the service credit needed for retirement under the following conditions:
        (1) The state shall contribute to the fund an amount determined under IC 5-10.2-3-1.2 and payable from the sources described in subsection (j) sufficient to pay the member's contributions required for the member's purchase of the service credit the member needs to retire.
        (2) The maximum amount of creditable service that the state may purchase for a member under this subsection is twenty-four (24) months.
        (3) The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of creditable service plus all other service for which the fund gives credit, including the creditable service purchased under this subsection.
    (j) The amounts that the state is required to contribute to the fund under subsection (i) must come from the following sources:
        (1) If the state receives monetary payments under the lease or contractual arrangement described in subsection (a), the proceeds of the monetary payments received by the state. The state may not require, as a condition of the transaction to transfer state property or have certain state functions performed by a nongovernmental entity, that the nongovernmental entity directly or indirectly pay the amounts that the state is required to contribute under

subsection (i).
        (2) If the state does not receive any monetary payments under the lease or contractual arrangement described in subsection (a), any remaining appropriations made to the state department, agency, or other entity terminating the employees described in subsection (a).
        (3) If the sources described in subdivisions (1) and (2) do not fully fund the amounts that the state is required to contribute to the fund under subsection (i), the board shall request that the general assembly appropriate the amount necessary to fully fund the state's required contribution under subsection (i) in the next biennial state budget.
    (k) The board shall evaluate each withdrawal under this section to determine if the withdrawal affects the fund's compliance with Section 401(a) of the Internal Revenue Code of 1954, as in effect on September 1, 1974. The board may deny an employee permission to withdraw if the denial is necessary to achieve compliance with Section 401(a) of the Internal Revenue Code of 1954, as in effect on September 1, 1974.