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Citations Affected: IC 5-10.3; IC 5-10.4.

Synopsis: PERF and TRF benefit determination review. Provides that a member of the public employees' retirement fund (PERF) or the Indiana state teachers' retirement fund (TRF) may petition the board of trustees of the member's fund (board) to correct an error in a determination of the member's: (1) creditable service; or (2) benefit; at any time. Provides that if the board does not find an error in the determination and the member petitioned the board within six years after the determination, the member may appeal the board's decision under the administrative orders and procedures law. Updates language concerning the TRF board's distribution of TRF's investment earnings.

Effective: Upon passage; July 1, 2010.

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Tallian, Young R Michael , Deig

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    January 5, 2010, read first time and referred to Committee on Pensions and Labor.
    January 14, 2010, amended, reported favorably _ Do Pass.

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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 2009 Regular and Special Sessions of the General Assembly.

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    A BILL FOR AN ACT to amend the Indiana Code concerning pensions.

SOURCE: IC 5-10.3-8-5; (10)SB0072.1.1. -->     SECTION 1. IC 5-10.3-8-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 5. Claims of Error. A member may petition the board to correct an error in the determination of his the member's:
        (1) creditable service; or of his
         (2) benefit;
within one (1) year after the determination. at any time. The petition must contain the necessary information to sustain his the member's claim of error. The board shall investigate the claim and, if error is found, shall order the member's records corrected. If no error is found and the member petitioned the board to correct the error within six (6) years after the determination of the member's creditable service or benefit, the member may appeal the board's decision under IC 4-21.5.

SOURCE: IC 5-10.4-2-6; (10)SB0072.1.2. -->     SECTION 2. IC 5-10.4-2-6, AS ADDED BY P.L.2-2006, SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) The board shall do the following:

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        (1) Credit interest to the members' annuity savings accounts in the guaranteed fund and actual earnings to the alternative investment programs.
        (2) After complying with subdivision (1), distribute an amount up to the interest credit rate, not to exceed any remaining earnings, to the reserve accounts.
        (3) After complying with subdivisions (1) and (2), distribute any remaining undistributed income reserve as of the end of each fiscal year on a pro rata basis, based on fiscal year beginning balances, to all reserve accounts in the pre-1996 account, including the pension stabilization fund, and in the 1996 account.
    (b) Income may not be distributed under subsection (a)(2) or (a)(3) to the following:
        (1) Members' annuity savings accounts in the guaranteed fund or the alternative investment program.
        (2) The annuity reserve for benefits-in-force.
         accounting period as determined by the rules of the board.

SOURCE: IC 5-10.4-5-17; (10)SB0072.1.3. -->     SECTION 3. IC 5-10.4-5-17 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 17. A member may petition the board to correct an error in the determination of the member's:
        (1) creditable service; or
        (2) benefit;
at any time. The petition must contain the necessary information to sustain the member's claim of error. The board shall investigate the claim and, if error is found, shall order the member's records corrected. If no error is found and the member petitioned the board to correct the error within six (6) years after the determination of the member's creditable service or benefit, the member may appeal the board's decision under IC 4-21.5.

SOURCE: ; (10)SB0072.1.4. -->     SECTION 4. An emergency is declared for this act.