HB 1546-3_ Filed 04/13/2009, 10:40 Kenley
SENATE MOTION
MADAM PRESIDENT:
I move
that Engrossed House Bill 1546 be amended to read as follows:
SOURCE: Page 7, line 3; (09)MO154606.7. -->
Page 7, between lines 3 and 4, begin a new paragraph and insert:
SOURCE: IC 5-10.2-2-11; (09)MO154606.4. -->
"SECTION 4. IC 5-10.2-2-11, AS AMENDED BY P.L.72-2007,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 11. (a) Based on the actuarial investigation and
valuation in section 9 of this chapter, each board shall determine:
(1) the normal contribution for the employer, which is the amount
necessary to fund the pension portion of the retirement benefit;
(2) the rate of normal contribution;
(3) the unfunded accrued liability of the public employees'
retirement fund, the pre-1996 account, and the 1996 account,
which is the excess of total accrued liability over the fund's or
account's total assets, respectively; and
(4) the rates of contribution for the state expressed as a proportion
of compensation of members, which would be necessary to:
(A) amortize the unfunded accrued liability of the state for
thirty (30) years or for a shorter time period requested by the
budget agency or the governor; and
(B) prevent the state's unfunded accrued liability from
increasing.
(b) Based on the information in subsection (a), each board may
determine, in its sole discretion, contributions and contribution rates for
individual employers or for a group of employers.
(c) The board's determinations under subsection (a):
(1) are subject to section 1.5 of this chapter; and
(2) for an employer making a contribution to the Indiana state
teachers' retirement fund, may not include an amount for a retired
member of the Indiana state teachers' retirement fund for whom
the employer may not make contributions during the member's
period of reemployment as provided under IC 5-10.2-4-8(e).
IC 5-10.2-4-8(d).".
SOURCE: Page 8, line 1; (09)MO154606.8. -->
Page 8, between lines 1 and 2, begin a new paragraph and insert:
SOURCE: IC 5-10.2-3-2; (09)MO154606.6. -->
"SECTION 6. IC 5-10.2-3-2, AS AMENDED BY P.L.72-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 2. (a) Subject to IC 5-10.2-2-1.5, as used in this
section, "compensation" means:
(1) the basic salary earned by and paid to the member; plus
(2) the amount that would have been a part of the basic salary
earned and paid except for the member's salary reduction
agreement established under Section 125, 403(b), or 457 of the
Internal Revenue Code.
(b) Except in cases where:
(1) the contribution is made on behalf of the member; or
(2) a retired member of the Indiana state teachers' retirement fund
may not make contributions during a period of reemployment as
provided under IC 5-10.2-4-8(e); IC 5-10.2-4-8(d);
each member shall, as a condition of employment, contribute to the
fund three percent (3%) of his the member's compensation.
(c) Except as provided under IC 5-10.2-4-8(e), IC 5-10.2-4-8(d), a
member of a fund may make contributions to the member's annuity
savings account in addition to the contributions required under
subsection (b). The total amount of contributions that may be made to
a member's annuity savings account with respect to a payroll period
under this subsection may not exceed ten percent (10%) of the
member's compensation for that payroll period. The contributions made
under this subsection may be picked-up and paid by an employer as
provided in subsection (d).
(d) In compliance with rules adopted by each board, an employer,
under Section 414(h)(2) of the Internal Revenue Code, may pick-up
and pay the contributions under subsection (c), subject to approval of
the board and to the board's receipt of a favorable private letter ruling
from the Internal Revenue Service. The employer shall reduce the
member's compensation by an amount equal to the amount of the
member's contributions under subsection (c) that are picked-up by the
employer. Each board shall by rule establish the procedural
requirements for employers to carry out the pick-up in compliance with
Section 414(h)(2) of the Internal Revenue Code.
(e) A member's contributions and interest credits belong to the
member and do not belong to the state or political subdivision.".
SOURCE: Page 8, line 21; (09)MO154606.8. -->
Page 8, between lines 21 and 22, begin a new paragraph and insert:
SOURCE: IC 5-10.2-3-6.5; (09)MO154606.8. -->
"SECTION 8. IC 5-10.2-3-6.5, AS ADDED BY P.L.115-2008,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 6.5. (a) This section applies:
(1) after December 31, 2008, to a member of the public
employees' retirement fund;
and
(2) after June 30, 2009, to a member of the Indiana state
teachers' retirement fund.
(b) A member who meets all of the following requirements may
elect to withdraw the entire amount in the member's annuity savings
account before the member is eligible to do so at retirement under
IC 5-10.2-4-2:
(1) The member has attained vested status in the fund.
(2) The member terminates employment with the applicable
fund after the date specified in subsection (a).
(3) The member has not performed any service in a position
covered by the fund for at least ninety (90) days after the date the
member terminates employment.
(c) A member who elects to withdraw the entire amount in the
member's annuity savings account under subsection (b) shall provide
notice of the election on a form provided by the board.
(d) The election to withdraw the entire amount in the member's
annuity savings account is irrevocable.
(e) The board shall pay the amount in the member's annuity savings
account as a lump sum.
(f) Except as provided in subsection (g), a member who makes a
withdrawal under this section is entitled to receive, when the member
becomes eligible to receive a retirement benefit under IC 5-10.2-4, a
retirement benefit equal to the pension provided by employer
contributions computed under IC 5-10.2-4.
(g) A member who:
(1) transfers creditable service earned under the fund to another
governmental retirement plan under section 1(i) of this chapter;
and
(2) withdraws the member's annuity savings account under this
section to purchase the service;
may not use the transferred service in the computation of a retirement
benefit payable under subsection (f).
SOURCE: IC 5-10.2-3-7.5; (09)MO154606.9. -->
SECTION 9. IC 5-10.2-3-7.5, AS AMENDED BY P.L.99-2007,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 7.5. (a) A surviving dependent or surviving
spouse of a member who dies in service is entitled to a survivor benefit
if:
(1) the member dies after March 31, 1990;
(2) the member has:
(A) at least ten (10) years of creditable service, if the member
died in service as a member of the general assembly;
(B) at least fifteen (15) years of creditable service, if the
member died in service in any other position covered by the
retirement fund; or
(C) at least ten (10) years but not more than fourteen (14)
years of creditable service if the member:
(i) was at least sixty-five (65) years of age; and
(ii) died in service in a position covered by the teachers'
retirement fund; and
(3) the surviving dependent or surviving spouse qualifies for a
survivor benefit under subsection (b) or (c).
(b) If a member described in subsection (a) dies with a surviving
spouse who was married to the member for at least two (2) years, the
surviving spouse is entitled to a survivor benefit equal to the monthly
pension benefit that would have been payable to the spouse under the
joint and survivor option of IC 5-10.2-4-7 upon the member's death
following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. However, benefits payable under this subsection are
subject to subsections (e) and (g).
(c) If a member described in subsection (a) dies without a surviving
spouse who was married to the member for at least two (2) years, but
with a surviving dependent, the surviving dependent is entitled to a
survivor benefit in a monthly amount equal to the actuarial equivalent
of the monthly pension benefit that would have been payable to the
spouse (assuming the spouse would have had the same birth date as the
member) under the joint and survivor option of IC 5-10.2-4-7 upon the
member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. If there are two (2) or more surviving dependents,
the actuarial equivalent of the benefit described in this subsection shall
be calculated and, considering the dependents' attained ages, an equal
dollar amount shall be determined as the monthly pension benefit to be
paid to each dependent. Monthly pension benefits under this
subsection are payable until the date the dependent becomes eighteen
(18) years of age or dies, whichever is earlier. However, if a dependent
has a permanent and total disability (using disability guidelines
established by the Social Security Administration) at the date the
dependent reaches eighteen (18) years of age, the monthly pension
benefit is payable until the date the dependent no longer has a disability
(using disability guidelines established by the Social Security
Administration) or dies, whichever is earlier. Benefits payable under
this subsection are subject to subsections (e) and (g).
(d) This subsection applies if a member did not designate a
beneficiary or the designated beneficiary does not survive the
member. Except as provided in subsections (e) and (h), the surviving
spouse or surviving dependent of a member who is entitled to a
survivor benefit under subsection (b) or (c) or section 7.6 of this
chapter may elect to receive a lump sum payment of the total amount
credited to the member in the member's annuity savings account or an
amount equal to the member's federal income tax basis in the member's
annuity savings account as of December 31, 1986. A surviving spouse
or surviving dependent who makes such an election is not entitled to an
annuity as part of the survivor benefit under subsection (b) or (c) or
section 7.6 of this chapter to the extent of the lump sum payment.
(e) If a member
described in subsection (a) or section 7.6(a) of this
chapter is survived by a designated beneficiary,
who is not a surviving
spouse or surviving dependent entitled to a survivor benefit under
subsection (b) or (c) or section 7.6 of this chapter, the following
provisions apply:
(1) If the member is survived by one (1) designated beneficiary,
the designated beneficiary is entitled to receive in a lump sum or
over a period of up to five (5) years, as elected by the designated
beneficiary, the amount credited to the member's annuity savings
account, less any disability benefits paid to the member.
(2) If the member is survived by two (2) or more designated
beneficiaries, the designated beneficiaries are entitled to receive
in a lump sum or over a period of up to five (5) years, as elected
by the designated beneficiary, equal shares of the amount credited
to the member's annuity savings account, less any disability
benefits paid to the member.
(3) If the member is also survived by a spouse or dependent who
is entitled to a survivor benefit under subsection (b) or (c) or
section 7.6 of this chapter, the surviving spouse or dependent is
not entitled to an annuity or a lump sum payment as part of the
survivor benefit, unless the surviving spouse or dependent is also
a designated beneficiary.
(f) If a member dies:
(1) without a surviving spouse or surviving dependent who
qualifies for survivor benefits under subsection (b) or (c) or
section 7.6 of this chapter; and
(2) without a surviving designated beneficiary who is entitled to
receive the member's annuity savings account under subsection
(e);
the amount credited to the member's annuity savings account, less any
disability benefits paid to the member, shall be paid to the member's
estate.
(g) Survivor benefits payable under this section or section 7.6 of this
chapter shall be reduced by any disability benefits paid to the member.
(h) Additional annuity contributions, if any, shall not be included in
determining survivor benefits under subsection (b) or (c) or section 7.6
of this chapter, but are payable in a lump sum payment to:
(1) the member's surviving designated beneficiary; or
(2) the member's estate, if there is no surviving designated
beneficiary.
(i) Survivor benefits provided under this section or section 7.6 of
this chapter are subject to IC 5-10.2-2-1.5.
(j) A benefit specified in this section shall be forfeited and credited
to the member's retirement fund if no person entitled to the benefit
claims it within three (3) years after the member's death. However, the
board may honor a claim that is made more than three (3) years after
the member's death if the board finds, in the board's discretion, that:
(1) the delay in making the claim was reasonable or other
extenuating circumstances justify the award of the benefit to the
claimant; and
(2) paying the claim would not cause a violation of the applicable
Internal Revenue Service rules.
SOURCE: IC 5-10.2-4-1.2; (09)MO154606.10. -->
SECTION 10. IC 5-10.2-4-1.2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 1.2.
The public
employees' retirement (a) Each fund shall adopt a policy that
(1) promotes requires direct deposit
or another method
approved by the board as the preferred way for members and
beneficiaries to receive monthly benefits.
and
(2) strongly encourages members and beneficiaries who apply for
benefits to receive their monthly benefits by direct deposit.
(b) A member or beneficiary who does not wish to have
payments to the person deposited by direct deposit or another
method approved by the board under subsection (a) may request
the board or a designee of the board to grant a waiver of the
requirement of direct deposit or another method approved by the
board. The member or beneficiary must:
(1) state the reason to the board for requesting the waiver;
and
(2) sign a waiver form.
(c) The board or a designee of the board shall grant the
member's or beneficiary's request for a waiver, approval of which
shall not be unreasonably denied, if any of the following apply:
(1) The member or beneficiary currently does not have a
savings or checking account.
(2) The member or beneficiary is unable to establish a savings
or checking account within the geographic area of the home
of the member or beneficiary without payment of a service
fee. In support of this reason, the member or beneficiary must
submit a written statement of the inability to establish the
account without the payment of a fee with the waiver request.
(3) The home of the member or beneficiary is too remote to
have access to a financial institution where direct deposit or
another method approved by the board may be made.
(4) The financial institution of the member or beneficiary is
unable to:
(A) accept direct deposit or another method approved by
the board; or
(B) process electronic withdrawal.
The member or beneficiary must submit with the waiver a
written statement from the financial institution of the member
or beneficiary that the financial institution is unable to accept
direct deposit or another method approved by the board or
process electronic withdrawal.
(5) The board determines that the facts of the particular case
warrant a waiver of the requirement of direct deposit or
another method approved by the board.
(d) The policy of the board must provide that a member or
beneficiary in pay status as of July 1, 2009, receiving monthly
benefits in a manner other than direct deposit or another method
approved by the board shall not have the monthly benefits stopped
for receiving monthly benefits in a manner other than direct
deposit or another method approved by the board.
SOURCE: IC 5-10.2-4-1.4; (09)MO154606.11. -->
SECTION 11. IC 5-10.2-4-1.4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 1.4. (a) This section
applies to a member or a beneficiary of the public employees'
retirement fund who receives a monthly benefit by direct deposit.
(b) The fund shall furnish to the member or beneficiary:
(1) before each change in the amount of the member's or
beneficiary's benefit; or
(2) once every twelve (12) months, if the member's or
beneficiary's benefit amount does not change;
a written notice showing the member's or beneficiary's benefit amount,
including any cost of living increase or other adjustment to the benefit
amount, and a summary of the member's or beneficiary's benefit
payment history since the member's or beneficiary's last written notice.
SOURCE: IC 5-10.2-4-1.5; (09)MO154606.12. -->
SECTION 12. IC 5-10.2-4-1.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 1.5. (a) A fund may
calculate and pay an estimated retirement benefit of the pension portion
to a member if:
(1) the member has applied for a retirement benefit and has
chosen a retirement date on which the retirement benefit is to
begin;
(2) the member's membership records are incomplete or have not
been certified; and
(3) the member's membership records that have been submitted
to the fund establish that the member is entitled to a retirement
benefit.
(b)
A After June 30, 2009, if a fund
may calculate calculates and
pays an estimated benefit under this section,
based on the estimated
benefit must be at least eighty-five percent (85%) of the pension
portion of the benefit determined under the fund's records on service
and compensation information.
(c) If an estimated benefit is paid to a member under this section,
the fund shall, after all membership records have been submitted to the
fund and certified, determine the actual retirement benefit to which the
member is entitled. After determining the actual retirement benefit to
which the member is entitled, the fund shall temporarily adjust the
actual retirement benefit that is paid to the member to reconcile any
underpayment or overpayment of benefits to the member that resulted
from the payment of estimated benefits. The fund may make the
temporary adjustment to the member's actual retirement benefit over a
reasonable time, as determined by the board.".
SOURCE: Page 8, line 34; (09)MO154606.8. -->
Page 8, line 34, after "IC 5-10.2-3-1(i)." insert " Regardless of a
member's election under this section, contributions totaling not
more than one thousand dollars ($1,000) that are posted to a
member's annuity savings account after the final date on which the
member's retirement benefit is processed may be distributed to the
member as a lump sum payment.".
Page 10, between lines 3 and 4, begin a new paragraph and insert:
SOURCE: IC 5-10.2-4-7; (09)MO154606.14. -->
"SECTION 14. IC 5-10.2-4-7, AS AMENDED BY P.L.115-2008,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 7. (a) Benefits provided under this section are
subject to IC 5-10.2-2-1.5.
(b) A member who retires is entitled to receive monthly retirement
benefits, which are guaranteed for five (5) years or until the member's
death, whichever is later. A member may select in writing any of the
following nonconflicting options for the payment of the member's
retirement benefits instead of the five (5) year guaranteed retirement
benefit payments. The amount of the optional payments shall be
determined under rules of the board and shall be the actuarial
equivalent of the benefit payable under sections 4, 5, and 6 of this
chapter. A member who has elected to withdraw the entire amount in
the member's annuity savings account under IC 5-10.2-3-6.5 may not
select the cash refund annuity option.
(1) Joint and Survivor Option.
(A) The member receives a decreased retirement benefit
during the member's lifetime, and there is a benefit payable
after the member's death to a designated beneficiary during the
lifetime of the beneficiary, which benefit equals, at the option
of the member, either the full decreased retirement benefit or
two-thirds (2/3) or one-half (1/2) of that benefit.
(B) If the member dies before retirement, the designated
beneficiary may receive only the amount credited to the
member in the annuity savings account unless the designated
beneficiary is entitled to survivor benefits under IC 5-10.2-3.
(C) If the designated beneficiary dies before the member
retires, the selection is automatically canceled and the member
may make a new beneficiary election and may elect a different
form of benefit under this subsection.
(2) Benefit with No Guarantee. The member receives an increased
lifetime retirement benefit without the five (5) year guarantee
specified in this subsection.
(3) Integration with Social Security. If the member retires before
the age of eligibility for Social Security benefits, in order to
provide a level benefit during the member's retirement the
member receives an increased retirement benefit until the age of
Social Security eligibility and decreased retirement benefits after
that age.
(4) Cash Refund Annuity. The member receives a lifetime annuity
purchasable by the amount credited to the member in the annuity
savings account, and the member's designated beneficiary
receives a refund payment equal to:
(A) the total amount used in computing the annuity at the
retirement date; minus
(B) the total annuity payments paid and due to the member
before the member's death.
(c) This subsection does not apply to a member of the Indiana state
teachers' retirement fund after June 30, 2007, or to a member of the
public employees' retirement fund after June 30, 2008. If:
(1) the designated beneficiary dies while the member is receiving
benefits; or
(2) the member is receiving benefits, the member marries, either
for the first time or following the death of the member's spouse,
after the member's first benefit payment is made, and the
member's designated beneficiary is not the member's current
spouse or the member has not designated a beneficiary;
the member may elect to change the member's designated beneficiary
or form of benefit under subsection (b) and to receive an actuarially
adjusted and recalculated benefit for the remainder of the member's life
or for the remainder of the member's life and the life of the newly
designated beneficiary. The member may not elect to change to a five
(5) year guaranteed form of benefit. If the member's new election is the
joint and survivor option, the member shall indicate whether the
designated beneficiary's benefit shall equal, at the option of the
member, either the member's full recalculated retirement benefit or
two-thirds (2/3) or one-half (1/2) of this benefit. The cost of
recalculating the benefit shall be borne by the member and shall be
included in the actuarial adjustment.
(d) Except as provided in subsection (c) or section 7.2 of this
chapter, a member who files for regular or disability retirement may not
change:
(1) the member's retirement option under subsection (b);
(2) the selection of a lump sum payment under section 2 of this
chapter; or
(3) the beneficiary designated on the member's application for
benefits if the member selects the joint and survivor option under
subsection (b)(1);
after the first day of the month in which benefit payments are scheduled
to begin. For purposes of this subsection, it is immaterial whether a
benefit check has been sent, received, or negotiated.
(e) A member may direct that the member's retirement benefits be
paid to a revocable trust that permits the member unrestricted access
to the amounts held in the revocable trust. The member's direction is
not an assignment or transfer of benefits under IC 5-10.3-8-10 or
IC 5-10.4-5-14.
(f) Whenever the amount of a monthly retirement benefit to be
paid to a member is not more than five dollars ($5), each board
may adopt a policy to permit annual payment of the member's
retirement benefit.
SOURCE: IC 5-10.2-4-8; (09)MO154606.15. -->
SECTION 15. IC 5-10.2-4-8, AS AMENDED BY P.L.130-2008,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 8. (a)
Subject to subsection (f), if a member who
is receiving retirement benefits becomes reemployed in a position
covered by this article more than thirty (30) days after the member's
retirement, the member's retirement benefit payments continue. Except
for a member of the Indiana state teachers' retirement fund who is
reemployed more than thirty (30) days after the member's retirement in
a position covered by the Indiana state teachers' retirement fund, the
member shall begin making contributions as required in IC 5-10.2-3-2,
and the member's employer shall make contributions throughout the
member's period of reemployment.
(b) If a member who is receiving retirement benefits is reemployed
in a position covered by this article not more than thirty (30) days after
the member's retirement, the member's retirement benefits shall stop,
the member shall begin making contributions as required by
IC 5-10.2-3-2, and employer contributions shall be made throughout
the period of reemployment.
(c) This subsection does not apply to a member of the Indiana state
teachers' retirement fund who is reemployed more than thirty (30) days
after the member's retirement in a position covered by the Indiana state
teachers' retirement fund. If a retired member is reemployed in a
position covered by this article, section 10 of this chapter applies to the
member upon the member's retirement from reemployment.
(d)
Subject to subsection (f), the following apply to a member of
the Indiana state teachers' retirement fund who is reemployed more
than thirty (30) days after the member's retirement in a position covered
by the Indiana state teachers' retirement fund:
(1) The member's retirement benefit payments continue during the
member's period of reemployment without regard to the amount
of the member's earnings from the covered position.
(2) The member may not make contributions under IC 5-10.2-3-2
or IC 5-10.4-4-11 during the member's period of reemployment.
(3) The member's employer may not make contributions under
IC 5-10.2-2-11 or IC 5-10.4-4-11 for or on behalf of the member
during the member's period of reemployment.
(4) The member does not earn creditable service under
IC 5-10.2-3-1 for the member's period of reemployment.
(5) The member is not entitled to an additional benefit under
sections 9 and 10 of this chapter for the member's period of
reemployment.
(e) The thirty (30) day period provided for in this section may be
implemented unless the board of trustees of the fund receives a
determination from the Internal Revenue Service prohibiting the
implementation.
(f) After July 31, 2009, if, on or before the date the member files
an application for retirement benefits under this article, a member
has a formal or informal agreement with an employer covered by
this article to become reemployed in a position covered by this
article after the member's retirement, regardless of the time frame
between the member's retirement and the member's
reemployment, the member's application for retirement benefits is
void, and the following apply to the member's continued
employment:
(1) If a member received a retirement benefit:
(A) the member's retirement benefit shall stop; and
(B) the member shall repay the amount of the retirement
benefit received.
(2) The member shall make contributions as required by
IC 5-10.2-3-2 throughout the period of the member's
continued employment.
(3) Employer contributions shall be made throughout the
period of the member's continued employment.
(4) The member shall earn creditable service under
IC 5-10.2-3-1 for the member's continued employment.
(5) When the period of the member's continued employment
terminates, the member may again file an application for
retirement benefits under this chapter.
SOURCE: IC 5-10.3-3-9; (09)MO154606.16. -->
SECTION 16. IC 5-10.3-3-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 9. (a) The director is
the executive officer in charge of the administration of the fund's
detailed affairs.
(b) The director shall:
(1) maintain a record of the board's proceedings;
(2) be responsible for the safekeeping of the books and records
of the funds administered by the board;
(1) (3) receipt for payments made to the fund funds administered
by the board and deposit them these payments with the treasurer
of state or a custodian for the fund's account;
(2) (4) sign vouchers for the payment of money from the fund
funds administered by the board as authorized by the board;
(3) perform other duties assigned by the board; and
(4) (5) execute a corporate surety bond in an amount specified by
the board, the premium on the bond to be paid by the board; and
(6) perform other duties assigned by the board.
SOURCE: IC 5-10.3-5-4; (09)MO154606.17. -->
SECTION 17. IC 5-10.3-5-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 4. (a) Securities shall
be held for the fund by banks or trust companies under a custodial
agreement. Income, interest, proceeds of sale, materials, redemptions,
and all other receipts from securities and other investments which the
board retains for the cash working balance shall be deposited with the
treasurer of state. as authorized by the board.
(b) The board may contract with investment counsel, trust
companies, or banks to assist the board in its investment program.
SOURCE: IC 5-10.3-6-7; (09)MO154606.18. -->
SECTION 18. IC 5-10.3-6-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 7. Collection of
Payments. (a) If the employer or political subdivision fails to make
payments required by this chapter, the amount payable may be:
(1) withheld by the auditor of state from moneys payable to the
employer or subdivision and transferred to the fund; or
(2) recovered in a suit in the circuit or superior court of the county
in which the political subdivision is located. which The suit shall
be an action by the state on the relation of the board, prosecuted
by the attorney general.
(b) If:
(1) service credit is verified for a member who has filed an
application for retirement benefits; and
(2) the member's employer at the time the service credit was
earned has not made contributions for or on behalf of the
member for the service credit;
liability for the unfunded service credit shall be charged against
the employer's account and collected by the fund as provided in
subsection (a). Processing of a member's application for retirement
benefits may not be delayed by an employer's failure to make
contributions for the service credit earned by the member while
the member was employed by the employer.
(c) If the employer or political subdivision fails to file the reports or
records required by this chapter or by IC 5-10.3-7-12.5, the auditor of
state shall:
(1) withhold the penalty described in IC 5-10.3-7-12.5 from
money payable to the employer or the political subdivision; and
shall
(2) transfer the penalty to the fund.".
SOURCE: Page 10, line 35; (09)MO154606.10. -->
Page 10, between lines 35 and 36, begin a new paragraph and insert:
SOURCE: IC 5-10.3-8-8; (09)MO154606.20. -->
"SECTION 20. IC 5-10.3-8-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 8. Payment of the
Retirement Benefit. Except as provided under IC 5-10.2-4-7(f), the
retirement benefit is payable in equal monthly installments. The benefit
may not be increased, decreased, revoked or repealed except for error
or by action of the general assembly.
SOURCE: IC 5-10.4-3-9; (09)MO154606.21. -->
SECTION 21. IC 5-10.4-3-9, AS ADDED BY P.L.2-2006,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 9. (a) The board is responsible for the fund's
property. The board may take and hold any property given outright or
on condition to the fund and shall perform the conditions accepted.
Unless restricted by a condition, the board may transfer the property
when necessary for the fund's benefit.
(b) The board shall receipt:
(1) property belonging to or coming into the fund and shall
judiciously invest the property; and
(2) money coming into the fund and, except as specified in
sections 13 and 14 of this chapter, shall deposit the money with
the state treasurer in the manner required of other state funds by
IC 5-13. as authorized by the board.
(c) The board shall make quarterly reports to the auditor of state as
required by law for the transference of the fund to the auditor of state's
books.
(d) (c) The board shall direct the fund's disbursements on itemized
vouchers to the auditor of state approved by the president of the board
and the director or, in the absence or incapacity of both officers, by
another trustee directed by order of the board. The auditor of state then
shall issue a warrant on the treasurer of state.
SOURCE: IC 5-10.4-3-14; (09)MO154606.22. -->
SECTION 22. IC 5-10.4-3-14, AS ADDED BY P.L.2-2006,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 14. All income and other receipts from securities
may be:
(1) collected by the custodian bank or safekeeping bank approved
for that purpose by the board and deposited in the custodial
account or a checking account of the board;
(2) reinvested from the custodial account or checking account
when the board determines that the receipts may be safely
invested; or
(3) withdrawn by the board for the immediate needs of the fund
from the checking account or custodial account. and then
deposited with the treasurer of state, as required for other money
coming into the fund.
SOURCE: IC 5-10.4-4-8; (09)MO154606.23. -->
SECTION 23. IC 5-10.4-4-8, AS AMENDED BY P.L.201-2007,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 8. (a) This subsection applies to a member who
retires before July 1, 1980. A member who had completed four (4)
years of approved college teacher education before voluntary or
involuntary induction into the military services is entitled to credit for
that service as if the member had begun teaching before the induction.
A member who serves in military service is considered a teacher and
is entitled to the benefits of the fund if before or during the leave of
absence the member pays into the fund the member's contributions.
Time served by a member in military service for the duration of the
hostilities or for the length of active service in the hostilities and the
necessary demobilization time after the hostilities is not subject to the
one-seventh rule set forth in section 7 of this chapter.
(b) This subsection applies to a member who retires after June 30,
1980. A member who completed four (4) years of approved college
teacher education before voluntary or involuntary induction into
military service is entitled to credit for the member's active military
service as if the member had begun teaching before the induction. A
member who serves in military service is considered a teacher and is
entitled to the benefits of the fund if the following conditions are met:
(1) The member has an honorable discharge.
(2) Except as provided in subsection (e), (g), the member returns
to active teaching service not later than twenty-four (24) months
after the completion of active military service.
(3) The member has at least ten (10) years of in-state service
credit.
The time served by a member in military service for the duration of the
hostilities or for the length of active service in the hostilities and the
necessary demobilization time after the hostilities is not subject to the
one-seventh rule set forth in section 7 of this chapter. However, not
more than six (6) years of military service credit may be granted under
this subsection.
(c) This subsection applies to a member who retires after May 1,
1989. A member who had begun but had not completed four (4) years
of approved college teacher education before voluntary or involuntary
induction into the military services is entitled to service credit in an
amount equal to the duration of the member's active military service if
the following conditions are met:
(1) The member has an honorable discharge.
(2) Except as provided in subsection (e), (g), the member returns
to a four (4) year approved college teacher training program not
later than twenty-four (24) months after the completion of active
military service and subsequently completes that program.
(3) The member has at least ten (10) years of in-state service
credit.
The time served by a member in active military service for the length
of active service in the hostilities and the necessary demobilization is
not subject to the one-seventh rule set forth in section 7 of this chapter.
However, not more than six (6) years of military service credit may be
granted under this subsection.
(d) This subsection applies to a member who retires after May 1,
1991, and who is employed at a state educational institution. A member
who had begun but had not completed baccalaureate or
post-baccalaureate education before voluntary or involuntary induction
into military service is entitled to the member's active military service
credit for the member's active military service in an amount equal to
the duration of the member's military service if the following
conditions are met:
(1) The member received an honorable discharge.
(2) Except as provided in subsection (e), (g), the member returns
to baccalaureate or post-baccalaureate education not later than
twenty-four (24) months after completion of active military
service and subsequently completes that education.
(3) The member has at least ten (10) years of in-state service
credit.
The time served by a member in active military service for the length
of active service in the hostilities and the necessary demobilization is
not subject to the one-seventh rule set forth in section 7 of this chapter.
However, not more than six (6) years of military service credit may be
granted under this subsection.
(e) For purposes of this section, a member returns to active
teaching service on the earlier of:
(1) the date on which the member signs a teacher's contract;
or
(2) the date on which the member is first employed in a
position covered by this article.
(f) For purposes of this section, a member returns to:
(1) a teacher training program; or
(2) baccalaureate or post-baccalaureate education;
on the date the member registers or enrolls for classes that the
member attends.
(e) (g) The board shall extend the twenty-four (24) month deadline
contained in subsection (b)(2), (c)(2), or (d)(2) if the board determines
that an illness, an injury, or a disability related to the member's military
service prevented the member from returning to active teaching service
or to a teacher education program not later than twenty-four (24)
months after the member's discharge from military service. However,
the board may not extend the deadline beyond forty-eight (48) months
after the member's discharge.
(f) (h) If a member retires and the board subsequently determines
that the member is entitled to additional service credit due to the
extension of a deadline under subsection (e), (g), the board shall
recompute the member's benefit. However, the additional service credit
may be used only in the computation of benefits to be paid after the
date of the board's determination, and the member is not entitled to a
recomputation of benefits received before the date of the board's
determination.
(g) (i) Notwithstanding any provision of this section, a member is
entitled to military service credit and benefits in the amount and to the
extent required by the federal Uniformed Services Employment and
Reemployment Rights Act (38 U.S.C. 4301 et seq.), including all later
amendments.
(h) (j) Subject to this section, an active member may purchase not
more than two (2) years of service credit for the member's service on
active duty in the armed services if the member meets the following
conditions:
(1) The member has at least one (1) year of credited service in the
fund.
(2) The member serves on active duty in the armed services of the
United States for at least six (6) months.
(3) The member receives an honorable discharge from the armed
services.
(4) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of:
(i) the member's salary at the time the member actually
makes a contribution for the service credit;
(ii) a rate, determined by the actuary of the fund, that is
based on the age of the member at the time the member
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; and
(iii) the number of years of service credit the member
intends to purchase.
(B) Contributions for any accrued interest, at a rate determined
by the actuary of the fund, for the period from the member's
initial membership in the fund to the date payment is made by
the member.
However, a member is entitled to purchase service credit under this
subsection only to the extent that service credit is not granted for that
time under another provision of this section. At least ten (10) years of
service in Indiana is required before a member may receive a benefit
based on service credits purchased under this section. A member who
terminates employment before satisfying the eligibility requirements
necessary to receive a monthly allowance or receives a monthly
allowance for the same service from another tax supported public
employee 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 fund.
(i) (k) The following apply to the purchase of service credit under
subsection (h): (j):
(1) The board may allow a member 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 member may not claim the service credit for purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit.
(j) (l) This subsection applies to a member who retires after June 30,
2006. A member may not receive credit under this section for service
for which the member receives service credit under the terms of a
military or another governmental retirement plan.
SOURCE: IC 5-10.4-4-10; (09)MO154606.24. -->
SECTION 24. IC 5-10.4-4-10, AS ADDED BY P.L.2-2006,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 10. (a) The director shall obtain a designation of
beneficiary as soon as possible from each member.
(b) Notwithstanding a contrary collateral agreement, court
order, process, attachment, or levy, the right to receive a death
benefit under IC 5-10.2 or IC 5-10.4 vests with the designated
beneficiary on file with the fund at the time of the member's death.
The fund shall distribute the death benefit to the designated
beneficiary or the designated beneficiary's estate in accordance
with IC 5-10.2 and IC 5-10.4.
SOURCE: IC 5-10.4-5-9; (09)MO154606.25. -->
SECTION 25. IC 5-10.4-5-9, AS ADDED BY P.L.2-2006,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 9. (a) The fund shall make a member's first
pension benefit payment not more than ninety (90) days after the date
the member completes and files an application for retirement benefits.
(b) After the first pension benefit payment and except as provided
under IC 5-10.2-4-7(f), a person entitled to benefits shall receive a
retirement benefit payment by the tenth day of each month.
SOURCE: IC 5-10.4-5-13; (09)MO154606.26. -->
SECTION 26. IC 5-10.4-5-13, AS AMENDED BY P.L.76-2008,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 13. (a) IC 5-10.2-4-8 IC 5-10.2-4-9, and
IC 5-10.2-4-10 apply applies to the reemployment of a retired member.
(b) This subsection does not apply to a member who is reemployed
more than thirty (30) days after the member's retirement in a position
covered by the fund. For a retired member who withdraws from
retirement status, resumes teaching, and again retires, the board shall
pay the member, after the member's second or subsequent retirement,
a monthly retirement benefit at least equal to the highest amount the
retired member has received as a retirement benefit.
SOURCE: IC 5-10.4-6-2; (09)MO154606.27. -->
SECTION 27. IC 5-10.4-6-2, AS ADDED BY P.L.2-2006,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 2. (a) After July 9, 1949, a member receiving a
retirement benefit under Acts 1915, c.182, or any statute amendatory
of or supplemental to it enacted before January 1, 1949, is eligible,
subject to Acts 1949, c.130, s.2(j), to receive a retirement benefit
approximately equal to the state's proportionate share of a retirement
benefit provided by Acts 1949, c.130 for up to thirty (30) years of
service. These members shall make written application for these
benefits to the board at any time. Applications must be based on the
service record established in the office of the fund on April 1, 1949.
Except as provided by IC 5-10.2-4-7(f), this retirement benefit must
begin on the tenth of the month following acknowledgment of the
application.
(b) The board shall establish, with the advice of the fund's actuary,
a simplified table for computing the increases under this section for the
years of service. The board may provide by resolution for participation
by the members receiving benefits under this section in the additional
annuity fund.
(c) Within a reasonable time, the board shall issue to each member
of the fund a service certificate that includes the following:
(1) The member's name.
(2) The member's last known address.
(3) The member's account number.
(4) The law under which the member is participating in the fund.
(5) The contribution due from the member.
(6) A certification of the total years of creditable service that the
member has as of a date fixed by the board.
(d) The service certificate described in subsection (c) is final and
conclusive regarding service in the fund. However, a member may, not
later than one (1) year from the issuance or notification of the
certificate, request that the board modify the member's service
certificate.".
SOURCE: Page 12, line 11; (09)MO154606.12. -->
Page 12, between lines 11 and 12, begin a new paragraph and insert:
SOURCE: IC 5-10.4-7-10; (09)MO154606.30. -->
"SECTION 30. IC 5-10.4-7-10, AS ADDED BY P.L.2-2006,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 10. (a) Except as provided in subsection (b), the
board shall maintain separate reserve accounts within the 1996
account for each school corporation.
(b) If the board sets a group employer rate under
IC 5-10.2-2-11(b), the board shall maintain separate reserve
accounts within the 1996 account for each employer group.
(c) Credits and charges to these accounts must be made as
prescribed in IC 5-10.2-2.
SOURCE: IC 5-10.3-4-1; IC 5-10.3-4-2; IC 5-10.3-9-5.".
; (09)MO154606.31. -->
SECTION 31. THE FOLLOWING ARE REPEALED [EFFECTIVE
JULY 1, 2009]: IC 5-10.3-4-1; IC 5-10.3-4-2; IC 5-10.3-9-5.".
Renumber all SECTIONS consecutively.
(Reference is to EHB 1546 as printed April 8, 2009.)
________________________________________
MO154606/DI 102 2009