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.
January 7, 2009, read first time and referred to Committee on Pensions and Labor.
A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
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.
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.