Bill Text: IN SB0076 | 2011 | Regular Session | Amended
Bill Title: PERF administrative matters.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2011-05-18 - Effective 07/01/2011 [SB0076 Detail]
Download: Indiana-2011-SB0076-Amended.html
Citations Affected: IC 5-10; IC 33-38; IC 33-39; IC 36-8.
Synopsis: PERF administrative matters. Requires that the board of
trustees of the public employees' retirement fund (PERF) specify by
rule the interest rate credited to a participant's contributions for: (1) the
state excise police, gaming agent, gaming control officer, and
conservation enforcement officers' retirement fund; (2) the judges'
retirement system; (3) the prosecuting attorneys retirement fund; and
(4) the 1977 police officers' and firefighters' pension and disability
fund. Provides that a judge or a magistrate who is a participant in the
judges' retirement system and who purchases prior service credit in
PERF waives credit for the PERF service only for the amount of PERF
service purchased. (The introduced version of this bill was prepared by
the pension management oversight commission.)
Effective: July 1, 2011.
January 5, 2011, read first time and referred to Committee on Pensions and Labor.
January 12, 2011, reported favorably _ Do Pass.
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
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.
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A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
(a) "Department" means the Indiana department of natural resources.
(b) "Commission" means the alcohol and tobacco commission.
(c) "Officer" means any Indiana state excise police officer, any Indiana state conservation enforcement officer, any gaming agent, or any gaming control officer.
(d) "Participant" means any officer who has elected to participate in the retirement plan created by this chapter.
(e) "Salary" means the total compensation, exclusive of expense allowances, paid to any officer by the department or the commission, determined without regard to any salary reduction agreement established under Section 125 of the Internal Revenue Code.
(f) "Average annual salary" means the average annual salary of an
officer during the five (5) years of highest annual salary in the ten (10)
years immediately preceding an officer's retirement date, determined
without regard to any salary reduction agreement established under
Section 125 of the Internal Revenue Code.
(g) "Public employees' retirement act" means IC 5-10.3.
(h) "Public employees' retirement fund" means the public
employees' retirement fund created by IC 5-10.3-2.
(i) "Interest" means the same rate of interest as is specified under by
rule by the board of trustees of the public employees' retirement law.
fund.
(j) "Americans with Disabilities Act" refers to the Americans with
Disabilities Act (42 U.S.C. 12101 et seq.) and any amendments and
regulations related to the Act.
(k) Other words and phrases when used in this chapter shall, for the
purposes of this chapter, have the meanings respectively ascribed to
them as set forth in IC 5-10.3-1.
(1) whose employment as a judge is terminated regardless of cause; and
(2) who has less than twelve (12) years service;
is entitled to withdraw from the fund, beginning on the date specified by the participant in a written application. However, the date on which the withdrawal begins may not be before the date of final termination of employment of the participant, or the date thirty (30) days before the receipt of the application by the board.
(b) Upon the withdrawal, a participant is entitled to receive out of the fund an amount equal to the total sum contributed to the fund on behalf of the participant plus interest at a rate specified by rule by the board, payable within sixty (60) days after date of the withdrawal application or in monthly installments as the participant may elect.
(b) If annuities are not payable to the survivors of a participant who dies after July 1, 1983, the surviving spouse or child or children of the participant, if any, as determined by the participant, and if none survive, then any dependent or dependents surviving shall draw from the fund the amount that the participant paid into the fund plus interest
child or children, or other dependents survive, then the amount, plus
interest at a rate specified by rule by the board and minus any
payments made to the participant, shall be paid to the executor or
administrator of the participant's estate.
(c) The amount owed a spouse, child or children, or other
dependent, or estate under this section is payable within sixty (60) days
after date of the withdrawal application or in the monthly installments
as the recipient may elect.
(1) is a judge participating under this chapter;
(2) before becoming a judge was a member of an Indiana public employees' retirement fund;
(3) received credited service under an Indiana public employees' retirement fund for the employment described in subdivision (2), and the credited service is not eligible for service credit under section 18 of this chapter;
(4) has not attained vested status under a public employees' retirement fund for the employment described in subdivision (2); and
(5) has at least eight (8) years of service credit in the judges' retirement system.
(b) If a person becomes a participant in the judges' 1977 benefit system under this chapter, credit for service described in subsection (a) shall be granted under this chapter by the board if:
(1) the prior service was credited under an Indiana public employees' retirement fund; and
(2) the judge pays in a lump sum or in a series of payments determined by the board, not exceeding five (5) annual payments, the amount determined by the actuary for the 1977 benefit system as the total actual cost of the service.
(c) If the requirements of subsection (b) are not satisfied, a participant is entitled to credit only for years of service after the date of participation in the 1977 benefit system.
(d) An amortization schedule for contributions paid under this section must include interest at a rate determined by the board.
(e) If the requirements of subsection (b) are satisfied, the appropriate board shall transfer from the retirement fund described in subsection (a)(2) to the judges' 1977 benefit system the amount credited to the judge's annuity savings account and the present value of the retirement benefit payable at sixty-five (65) years of age that is
attributable to the transferring participant.
(f) The amount a participant must contribute to the judges' 1977
benefit system under subsection (b) shall be reduced by the amount
transferred to the judges' 1977 benefit system by the appropriate board
under subsection (e).
(g) If the requirements of subsection (b) are satisfied, credit for prior
service in a public employees' retirement fund that is purchased
under this section is waived.
(h) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the judges' 1977 benefit system may accept, on
behalf of a participant who is purchasing permissive service credit
under subsection (b), a rollover of a distribution from any of the
following:
(1) A qualified plan described in Section 401(a) or Section 403(a)
of the Internal Revenue Code.
(2) An annuity contract or account described in Section 403(b) of
the Internal Revenue Code.
(3) An eligible plan that is maintained by a state, a political
subdivision of a state, or an agency or instrumentality of a state or
political subdivision of a state under Section 457(b) of the
Internal Revenue Code.
(4) An individual retirement account or annuity described in
Section 408(a) or Section 408(b) of the Internal Revenue Code.
(i) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the judges' 1977 benefit system may accept, on
behalf of a participant who is purchasing permissive service credit
under subsection (b), a trustee to trustee transfer from any of the
following:
(1) An annuity contract or account described in Section 403(b) of
the Internal Revenue Code.
(2) An eligible deferred compensation plan under Section 457(b)
of the Internal Revenue Code.
(1) ceases service:
(A) as a judge; or
(B) after December 31, 2010, as a judge or full-time magistrate;
other than by death or disability; and
(2) is not eligible for a retirement benefit under this chapter;
is entitled to withdraw from the fund, beginning on the date specified
by the participant in a written application. The date on which the
withdrawal begins may not be before the date of final termination of
employment or the date thirty (30) days before the receipt of the
application by the board.
(b) Upon the withdrawal, the participant is entitled to receive the
total sum contributed plus interest at a rate specified by rule by the
board, payable within sixty (60) days from the date of the withdrawal
application or in monthly installments as the participant may elect.
(b) If benefits are not payable to the survivors of a participant who dies, and if a withdrawal application is filed with the board, the total of the participant's contributions, plus interest
(1) the surviving spouse of the participant or a child or children of the participant, as designated by the participant;
(2) any other dependent or dependents of the participant, if a spouse or designated child or children does or do not survive; or
(3) the participant's estate, if a spouse, designated child or children, or other dependent does or do not survive.
(c) The amount owed a spouse, designated child or children, or other dependent or dependents, or estate under subsection (b) is payable within sixty (60) days from the date of receipt of the withdrawal application or in the monthly installments as the recipient elects.
(1) is a full-time magistrate participating under this chapter;
(2) was appointed by a court to serve as:
(A) a full-time referee or full-time commissioner; or
(B) before January 1, 2011, a full-time magistrate;
(3) was a member of the public employees' retirement fund during the employment described in subdivision (2); and
(4) received credited service under the public employees' retirement fund for the employment described in subdivision (2).
(b) If a person becomes a participant as a full-time magistrate in the judges' 1985 benefit system under section 1 of this chapter, credit for service by the magistrate as a full-time referee, full-time commissioner,
or, before January 1, 2011, full-time magistrate shall be granted under
this chapter by the board if:
(1) the service was credited under the public employees'
retirement fund; and
(2) the magistrate pays in a lump sum or in a series of payments
determined by the board, not exceeding five (5) annual payments,
the amount determined by the actuary for the judges' 1985 benefit
system as the total cost of the service.
(c) If the requirements of subsection (b) are not satisfied, a
participant is entitled to credit only for years of service earned as a
participant in the judges' 1985 benefit system.
(d) An amortization schedule for contributions paid under this
section must include interest at a rate determined by the board.
(e) The following provisions apply to a person described in
subsection (a):
(1) A minimum benefit applies to participants receiving credit in
the judges' 1985 benefit system from service covered by the
public employees' retirement fund. The minimum benefit is
payable at sixty-five (65) years of age or when the participant is
at least fifty-five (55) years of age and meets the requirements
under section 13(2)(B) of this chapter and equals the actuarial
equivalent of the vested retirement benefit that is:
(A) payable to the member at normal retirement under
IC 5-10.2-4-1 as of the day before the transfer; and
(B) based solely on:
(i) creditable service;
(ii) the average of the annual compensation; and
(iii) the amount credited under IC 5-10.2 and IC 5-10.3 to
the annuity savings account of the transferring member as of
the day before the transfer.
(2) If the requirements of subsection (b) are satisfied, the board
shall transfer from the public employees' retirement fund to the
judges' 1985 benefit system the amount credited to the annuity
savings account and the present value of the retirement benefit
payable at sixty-five (65) years of age or at least fifty-five (55)
years of age under section 13(2)(B) of this chapter that is
attributable to the transferring participant.
(3) The amount the participant must contribute to the judges' 1985
benefit system under subsection (b) shall be reduced by the
amount transferred to the judges' 1985 benefit system by the
board under subdivision (2).
(4) If the requirements of subsection (b) are satisfied, credit for
service in the public employees' retirement fund as a full-time
referee, full-time commissioner, or before July 1, 2010, full-time
magistrate that is purchased under this section is waived. Any
credit for the service under the judges' 1985 benefit system may
be granted only under subsection (b).
(f) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the judges' 1985 benefit system may accept, on
behalf of a participant who is purchasing permissive service credit
under subsection (b), a rollover of a distribution from any of the
following:
(1) A qualified plan described in Section 401(a) or Section 403(a)
of the Internal Revenue Code.
(2) An annuity contract or account described in Section 403(b) of
the Internal Revenue Code.
(3) An eligible plan that is maintained by a state, a political
subdivision of a state, or an agency or instrumentality of a state or
political subdivision of a state under Section 457(b) of the
Internal Revenue Code.
(4) An individual retirement account or annuity described in
Section 408(a) or Section 408(b) of the Internal Revenue Code.
(g) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the judges' 1985 benefit system may accept, on
behalf of a participant who is purchasing permissive service credit
under subsection (b), a trustee to trustee transfer from any of the
following:
(1) An annuity contract or account described in Section 403(b) of
the Internal Revenue Code.
(2) An eligible deferred compensation plan under Section 457(b)
of the Internal Revenue Code.
(1) is:
(A) a judge; or
(B) after December 31, 2010, a judge or full-time magistrate;
participating under this chapter;
(2) before becoming:
(A) a judge; or
(B) after December 31, 2010, a judge or full-time magistrate;
was a member of a public employees' retirement fund;
(3) received credited service under a public employees' retirement fund for the employment described in subdivision (2), and the
credited service is not eligible for service credit under section 22
or 22.5 of this chapter;
(4) has not attained vested status under a public employees'
retirement fund for the employment described in subdivision (2);
and
(5) has at least eight (8) years of service credit in the judges'
retirement system.
(b) If a person becomes a participant in the judges' 1985 benefit
system under this chapter, credit for service described in subsection (a)
shall be granted under this chapter by the board if:
(1) the prior service was credited under a public employees'
retirement fund; and
(2) the judge or full-time magistrate pays in a lump sum or in a
series of payments determined by the board, not exceeding five
(5) annual payments, the amount determined by the actuary for
the judges' 1985 benefit system as the total cost of the service.
(c) If the requirements of subsection (b) are not satisfied, a
participant is entitled to credit only for years of service after the date of
participation in the judges' 1985 benefit system.
(d) An amortization schedule for contributions paid under this
section must include interest at a rate determined by the board.
(e) If the requirements of subsection (b) are satisfied, the
appropriate board shall transfer from the retirement fund described in
subsection (a)(2) to the judges' 1985 benefit system the amount
credited to the judge's or full-time magistrate's annuity savings account
and the present value of the retirement benefit payable at sixty-five (65)
years of age that is attributable to the transferring participant.
(f) The amount a participant must contribute to the judges' 1985
benefit system under subsection (b) shall be reduced by the amount
transferred to the judges' 1985 benefit system by the appropriate board
under subsection (e).
(g) If the requirements of subsection (b) are satisfied, credit for prior
service in a public employees' retirement fund that is purchased
under this section is waived.
(h) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the judges' 1985 benefit system may accept, on
behalf of a participant who is purchasing permissive service credit
under subsection (b), a rollover of a distribution from any of the
following:
(1) A qualified plan described in Section 401(a) or Section 403(a)
of the Internal Revenue Code.
(2) An annuity contract or account described in Section 403(b) of
the Internal Revenue Code.
(3) An eligible plan that is maintained by a state, a political
subdivision of a state, or an agency or instrumentality of a state or
political subdivision of a state under Section 457(b) of the
Internal Revenue Code.
(4) An individual retirement account or annuity described in
Section 408(a) or Section 408(b) of the Internal Revenue Code.
(i) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the judges' 1985 benefit system may accept, on
behalf of a participant who is purchasing permissive service credit
under subsection (b), a trustee to trustee transfer from any of the
following:
(1) An annuity contract or account described in Section 403(b) of
the Internal Revenue Code.
(2) An eligible deferred compensation plan under Section 457(b)
of the Internal Revenue Code.
(1) ceases service in a position described in section 8 of this chapter, other than by death or disability; and
(2) is not eligible for a retirement benefit under this chapter;
is entitled to withdraw from the fund, beginning on the date specified by the participant in a written application. The date upon which the withdrawal begins may not be before the date of final termination of employment or the date thirty (30) days before the receipt of the application by the board. Upon withdrawal the participant is entitled to receive the total sum contributed plus interest at
(b) Notwithstanding section 8 of this chapter, a participant who withdraws from the fund under subsection (a) and becomes a participant again at a later date is not entitled to service credit for years of service before the withdrawal.
(b) Contributions begin to accumulate interest at the beginning of the fiscal year after the year in which the contributions are due.
(c) When a member retires or withdraws, a proportional interest credit determined under this chapter shall be paid for the period elapsed since the last date on which interest was credited.
(b) Except as provided in subsections (c) and (d), 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) the highest annual salary that was paid to the participant before separation from service; 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%) for each month that the participant's age at retirement precedes the participant's sixty-fifth birthday.
(d) 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) 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 a rate of five and one-half percent (5.5%) compounded
annually. specified by rule by the board.
(1) the surviving spouse of the participant;
(2) any dependent or dependents of the participant, if a spouse does not survive; or
(3) the participant's estate, if a spouse or dependent does not survive.
(b) The amount owed a spouse, dependent or dependents, or estate under subsection (a) is payable not later than sixty (60) days after the date of receipt of the withdrawal application.
(b) Except as provided in section 7.2 of this chapter, if a fund
member ends the fund member's employment other than by death or
disability before the fund member completes twenty (20) years of
active service, the PERF board shall return to the fund member in a
lump sum the fund member's contributions plus interest as determined
at a rate specified by rule by the PERF board. If the fund member
returns to service, the fund member is entitled to credit for the years of
service for which the fund member's contributions were refunded if the
fund member repays the amount refunded to the fund member in either
a lump sum or a series of payments determined by the PERF board.
