Introduced Version
SENATE BILL No. 127
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 2-3.5; IC 4; IC 5; IC 7.1-4-11-1;
IC 8-1-13.1-10; IC 8-14; IC 15-11-10-3; IC 16-22-3-11; IC 20-24-6-7;
IC 20-26-4-1; IC 33-38; IC 33-39-7-11; IC 34-13-3-20; IC 35-33-8-3.2;
IC 36-8.
Synopsis: Indiana public retirement system. Makes required technical
corrections and conforming amendments following the enactment of
SEA 524-2011 (P.L.22-2011) and SEA 549-2011 (P.L.23-2011). (The
introduced version of this bill was prepared by the pension
management oversight commission.)
Effective: July 1, 2012.
Tallian
January 4, 2012, read first time and referred to Committee on Pensions and Labor.
Introduced
Second Regular Session 117th General Assembly (2012)
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
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
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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 2011 Regular Session of the General Assembly.
SENATE BILL No. 127
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 2-3.5-1-2; (12)IN0127.1.1. -->
SECTION 1. IC 2-3.5-1-2, AS AMENDED BY P.L.2-2006,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 2. (a) A member of the general assembly who is
serving on April 30, 1989, may elect to become a participant in both
the defined benefit plan and the defined contribution plan of the
legislators' retirement system, as provided by IC 2-3.5-3-1. If such a
member does not elect to become a participant in the legislators'
retirement system, that member is not affected by this article and is
instead covered by IC 5-10.2, IC 5-10.3, and IC 5-10.4.
(b) Notwithstanding IC 5-10.3-7-2 or any other law, a member of
the general assembly who is a participant in the legislators' defined
benefit plan shall also be a member of PERF or TRF while serving in
another position covered by PERF or TRF. However, the following
provisions apply to a participant who is also a member of PERF or
TRF:
(1) The
PERF board or TRF board shall include the participant's
years of service in the general assembly in the determination of
eligibility for benefits under PERF or TRF.
(2) Except as provided in subdivision (4), the PERF board or TRF
board shall not include in the computation of benefits from PERF
or TRF the participant's:
(A) salary as a member of the general assembly; or
(B) years of service as a member of the general assembly.
(3) The participant is not required to make annuity contributions
to PERF or TRF for service as a member of the general assembly
after July 1, 1989.
(4) IC 5-10.2-4-3.1 and the special provisions for members of the
general assembly in IC 5-10.2-3-7.5, IC 5-10.3-7-3, IC 5-10.3-7-7,
IC 5-10.3-8-2, IC 5-10.4-5-7, and IC 20-28-10-16 do apply to the
determination of the participant's benefits under PERF and TRF
for benefits earned before July 1, 1989. IC 5-10.2-4-3.1 and the
special provisions for members of the general assembly in
IC 5-10.2-3-7.5, IC 5-10.3-7-3, IC 5-10.3-7-7, IC 5-10.3-8-2,
IC 5-10.4-5-7, and IC 20-28-10-16(b) do not apply to the
determination of the participant's benefits under PERF or TRF for
benefits earned after June 30, 1989.
SOURCE: IC 2-3.5-1-4; (12)IN0127.1.2. -->
SECTION 2. IC 2-3.5-1-4, AS AMENDED BY P.L.2-2006,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 4. (a) A member of the general assembly who:
(1) served as a member of the general assembly before April 30,
1989;
(2) was not serving as a member of the general assembly on April
30, 1989; and
(3) is subsequently elected or appointed to the general assembly;
is a participant in the defined contribution plan of the legislators'
retirement system.
(b) The PERF and TRF benefits earned by a participant described
in subsection (a) before July 1, 1989, for service as a member of the
general assembly or in another covered position, are not affected by
this article. However, the following provisions apply to such a
participant who is also a member of PERF or TRF:
(1) The
PERF board or TRF board shall include the participant's
years of service in the general assembly in the determination of
eligibility for benefits under PERF or TRF.
(2) The
PERF board or TRF board shall not include in the
computation of benefits from PERF or TRF the participant's:
(A) salary as a member of the general assembly that is
received after July 1, 1989; or
(B) years of service as a member of the general assembly after
July 1, 1989.
(3) The participant is not required to make annuity contributions
to PERF or TRF for service as a member of the general assembly
after July 1, 1989.
(4) If IC 5-10.2-4-3.1 or any of the special provisions for members
of the general assembly in IC 5-10.2-3-7.5, IC 5-10.3-7-3,
IC 5-10.3-7-7, IC 5-10.3-8-2, IC 5-10.4-5-7, and IC 20-28-10-16
applied to the determination of the participant's benefits under
PERF or TRF before July 1, 1989, those provisions do not apply
to the determination of the participant's benefits under PERF or
TRF for benefits earned after July 1, 1989.
SOURCE: IC 2-3.5-2-2.7; (12)IN0127.1.3. -->
SECTION 3. IC 2-3.5-2-2.7, AS ADDED BY P.L.23-2011,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 2.7. (a) "Board" refers to the board of trustees of
the Indiana public retirement system established by IC 5-10.5-3-1.
(b) References in this article to the PERF board or TRF board shall
be considered after June 30, 2011, to be references to the board of
trustees of the Indiana public retirement system established by
IC 5-10.5-3-1.
SOURCE: IC 2-3.5-3-1; (12)IN0127.1.4. -->
SECTION 4. IC 2-3.5-3-1, AS AMENDED BY P.L.2-2006,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 1. (a) This chapter applies to:
(1) each member of the general assembly who is serving on April
30, 1989, and who files an election under subsection (b); and
(2) each member of the general assembly who is elected or
appointed after April 30, 1989.
(b) A member of the general assembly who is serving on April 30,
1989, may elect to have the member's years of service in the general
assembly covered by this chapter, IC 2-3.5-4, and IC 2-3.5-5 instead of
IC 5-10.2, IC 5-10.3, and IC 5-10.4. An election under this subsection:
(1) must be made in writing;
(2) must be filed with the PERF board (as it existed before its
dissolution on July 1, 2011) on a form prescribed by the board;
(3) must be made before January 1, 1990; and
(4) is irrevocable.
(c) Notwithstanding subsection (b), if a member of the general
assembly files an election under subsection (b), the PERF board or the
TRF board shall include all of the member's years of service in the
general assembly in the determination of eligibility for benefits under
PERF or TRF. However, except as provided by IC 2-3.5-1-2(b), the
PERF board or TRF board shall not include in the computation of
benefits from PERF or TRF the member's:
(1) salary as a member of the general assembly received after
April 30, 1989; or
(2) years of service as a member of the general assembly after
April 30, 1989.
SOURCE: IC 2-3.5-3-2; (12)IN0127.1.5. -->
SECTION 5. IC 2-3.5-3-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 2. (a) The legislators'
retirement system is established. The system consists of the legislators'
defined benefit plan described in IC 2-3.5-4 and the legislators' defined
contribution plan described in IC 2-3.5-5.
(b) The following funds are established:
(1) The fund for the legislators' defined benefit plan.
(2) The fund for the legislators' defined contribution plan.
Each of the funds shall be administered by the PERF board. Each of the
funds is a trust, separate and distinct from all other entities, maintained
for the purpose of paying benefits to participants and their beneficiaries
and paying the costs associated with administering the plan.
(c) The PERF board shall adopt rules under IC 4-22-2 necessary for
the administration of the plans and funds described in subsections (a)
and (b).
SOURCE: IC 2-3.5-3-3; (12)IN0127.1.6. -->
SECTION 6. IC 2-3.5-3-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 3. The legislators'
retirement system shall satisfy the qualification requirements in Section
401 of the Internal Revenue Code, as applicable to the system. In order
to meet those requirements, the system is subject to the following
provisions, notwithstanding any other law:
(1) The
PERF board shall distribute the corpus and income of the
funds to participants and their beneficiaries in accordance with
this chapter, IC 2-3.5-4, and IC 2-3.5-5.
(2) No part of the corpus or income of the funds may be used for
or diverted to a purpose other than the exclusive benefit of the
participants and their beneficiaries.
(3) Forfeitures arising from severance of employment, death, or
for any other reason may not be applied to increase the benefits a
participant would otherwise receive under this chapter,
IC 2-3.5-4, and IC 2-3.5-5.
(4) If the system is terminated, or if all contributions to the system
are completely discontinued, the rights of each affected
participant to the benefits accrued at the date of termination or
discontinuance, to the extent then funded, are nonforfeitable.
(5) All benefits paid from the system shall be distributed in
accordance with the requirements of Section 401(a)(9) of the
Internal Revenue Code and the regulations under that section. In
order to meet those requirements, the funds are subject to the
following provisions:
(A) The life expectancy of a participant, the participant's
spouse, or the participant's beneficiary may not be recalculated
after the initial determination for purposes of determining
benefits.
(B) If a participant dies before the distribution of the
participant's benefits has begun, distributions to beneficiaries
must begin no later than December 31 of the calendar year
immediately following the calendar year in which the member
died.
(C) The amount of an annuity paid to a participant's
beneficiary may not exceed the maximum determined under
the incidental death benefit requirement of the Internal
Revenue Code.
(6) The PERF board may not:
(A) determine eligibility for benefits;
(B) compute rates of contribution; or
(C) compute benefits of participant's beneficiaries;
in a manner that discriminates in favor of participants who are
considered officers, supervisors, or highly compensated, as
prohibited under Section 401(a)(4) of the Internal Revenue Code.
(7) Benefits paid under this chapter, IC 2-3.5-4, and IC 2-3.5-5
may not exceed the maximum benefits and contributions specified
by Section 415 of the Internal Revenue Code. If a participant's
benefits under this chapter, IC 2-3.5-4, and IC 2-3.5-5 would
exceed those maximum benefits and contributions, the benefit
payable under IC 2-3.5-4 shall be reduced as necessary.
(8) The salary taken into account under this chapter, IC 2-3.5-4,
and IC 2-3.5-5 may not exceed the applicable amount under
Section 401(a)(17) of the Internal Revenue Code.
(9) The PERF board may not engage in a transaction prohibited
by Section 503(b) of the Internal Revenue Code.
SOURCE: IC 2-3.5-3-4; (12)IN0127.1.7. -->
SECTION 7. IC 2-3.5-3-4, AS AMENDED BY P.L.99-2010,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 4. (a) The PERF board shall administer the
system, which may be commingled for investment purposes with the
PERF fund for investment purposes. other funds administered by the
board.
(b) The PERF board shall:
(1) determine eligibility for and make payments of benefits under
this chapter, IC 2-3.5-4, and IC 2-3.5-5;
(2) in accordance with the powers and duties granted in
IC 5-10.3-3-7, IC 5-10.3-3-7.1, IC 5-10.3-3-8, and IC 5-10.3-5-3
through IC 5-10.3-5-6, IC 5-10.5-4, and IC 5-10.5-6, administer
the system;
(3) provide by rule for the implementation of this chapter,
IC 2-3.5-4, and IC 2-3.5-5; and
(4) authorize deposits.
(c) A determination by the PERF board may be appealed under
IC 4-21.5.
(d) The powers and duties of:
(1) the director and the actuary of the PERF board; and
(2) the attorney general; and
(3) the auditor of state;
with respect to the fund are those specified in IC 5-10.3-3, and
IC 5-10.3-4, IC 5-10.5-4, and IC 5-10.5-6.
(e) The PERF board may hire additional personnel, including
hearing officers, to assist in the implementation of this chapter.
(f) Legislators' retirement system records of individual participants
and participants' information are confidential, except for the name and
years of service of a retirement system participant.
SOURCE: IC 2-3.5-5-3; (12)IN0127.1.8. -->
SECTION 8. IC 2-3.5-5-3, AS AMENDED BY P.L.115-2010,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 3. (a) The
PERF board shall establish alternative
investment programs within the fund, based on the following
requirements:
(1) The
PERF board shall maintain at least one (1) alternative
investment program that is an indexed stock fund, one (1)
alternative investment program that is a bond fund, and one (1)
alternative investment program that is a stable value fund. The
PERF board may maintain one (1) or more alternative investment
programs that:
(A) invest in one (1) or more commingled or pooled funds that
consist in part or entirely of mortgages that qualify as five star
mortgages under the program established by IC 24-5-23.6; or
(B) otherwise invest in mortgages that qualify as five star
mortgages under the program established by IC 24-5-23.6.
(2) The programs should represent a variety of investment
objectives.
(3) The programs may not permit a member to withdraw money
from the member's account, except as provided in section 6 of this
chapter.
(4) All administrative costs of each alternative program shall be
paid from the earnings on that program.
(5) A valuation of each member's account must be completed as
of:
(A) the last day of each quarter; or
(B) a time that the board may specify by rule.
(b) A member shall direct the allocation of the amount credited to
the member among the available alternative investment funds, subject
to the following conditions:
(1) A member may make a selection or change an existing
selection under rules established by the PERF board. The PERF
board shall allow a member to make a selection or change any
existing selection at least once each quarter.
(2) The PERF board shall implement the member's selection
beginning on the first day of the next calendar quarter that begins
at least thirty (30) days after the selection is received by the PERF
board or on an alternate date established by the rules of the board.
This date is the effective date of the member's selection.
(3) A member may select any combination of the available
investment funds, in ten percent (10%) increments or smaller
increments that may be established by the rules of the board.
(4) A member's selection remains in effect until a new selection
is made.
(5) On the effective date of a member's selection, the board shall
reallocate the member's existing balance or balances in
accordance with the member's direction, based on the market
value on the effective date.
(6) If a member does not make an investment selection of the
alternative investment programs, the member's account shall be
invested in the PERF board's general investment fund.
(7) All contributions to the member's account shall be allocated
as of the last day of the quarter in which the contributions are
received or at an alternate time established by the rules of the
board in accordance with the member's most recent effective
direction. The PERF board shall not reallocate the member's
account at any other time.
(c) When a member transfers the amount credited to the member
from one (1) alternative investment program to another alternative
investment program, the amount credited to the member shall be
valued at the market value of the member's investment, as of the day
before the effective date of the member's selection or at an alternate
time established by the rules of the board. When a member retires,
becomes disabled, dies, or withdraws from the fund, the amount
credited to the member shall be the market value of the member's
investment as of the last day of the quarter preceding the member's
distribution or annuitization at retirement, disability, death, or
withdrawal, plus contributions received after that date or at an alternate
time established by the rules of the board.
(d) The PERF board shall determine the value of each alternative
program in the defined contribution fund, as of the last day of each
calendar quarter, as follows:
(1) The market value shall exclude the employer contributions
and employee contributions received during the quarter ending on
the current allocation date.
(2) The market value as of the immediately preceding quarter end
date shall include the employer contributions and employee
contributions received during that preceding quarter.
(3) The market value as of the immediately preceding quarter end
date shall exclude benefits paid from the fund during the quarter
ending on the current quarter end date.
SOURCE: IC 2-3.5-5-5.5; (12)IN0127.1.9. -->
SECTION 9. IC 2-3.5-5-5.5, AS ADDED BY P.L.43-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 5.5. (a) This section applies to contributions to the
defined contribution fund made by the state after December 31, 2008.
(b) This subsection applies after December 31, 2008.
Notwithstanding IC 2-3.5-2-10, as used in this section, "salary" means
the total of the following amounts paid to a participant by the state for
performing legislative services in the year in which the amounts are
paid, determined without regard to any salary reduction agreement
established under Section 125 or Section 457 of the Internal Revenue
Code:
(1) Salary.
(2) Business per diem allowance and allowances paid in lieu of
the submission of claims for reimbursement (but excluding any
allowances paid for mileage).
(3) Allowances paid to officers of the house of representatives
and the senate.
(c) This subsection applies after December 31, 2008. The state shall
make a contribution to the defined contribution fund on behalf of each
participant on June 30 of each year. The amount of the contribution is
determined by multiplying the participant's salary for that year by a
percentage determined for that year by the
PERF board under
subsection (d).
(d) This subsection applies after December 31, 2008. The
PERF
board shall use the following rates in determining the percentage
described in subsection (c):
(1) The rate of the state's normal contribution for its employees to
PERF, as determined under IC 5-10.2-2-11.
(2) The rate at which the state makes contributions to annuity
savings accounts on behalf of state employees who are members
of PERF, as specified in IC 5-10.2-3-2 and IC 5-10.3-7-9.
(e) This subsection applies after December 31, 2008. The budget
agency shall confirm the percentage determined by the PERF board.
The percentage confirmed by the budget agency may not exceed the
total contribution rate paid that year by the state to PERF for state
employees.
SOURCE: IC 2-3.5-5-6; (12)IN0127.1.10. -->
SECTION 10. IC 2-3.5-5-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 6. (a) A participant who
terminates service as a member of the general assembly is entitled to
withdraw both the participant's employee contribution account and
employer contribution account from the defined contribution fund. The
withdrawal shall be made not later than the required beginning date
under the Internal Revenue Code. The amount available for the
withdrawal shall be the fair market value of the participant's accounts
on the last day of the quarter preceding the date of withdrawal plus
employee contributions deducted and employer contributions made
since the last day of the quarter preceding the date of withdrawal.
(b) The withdrawal amount shall be paid in a lump sum, a partial
lump sum, a monthly annuity as purchased by the PERF board with the
remaining amount, or a series of monthly installment payments over
sixty (60), one hundred twenty (120), or one hundred eighty (180)
months, as elected by the participant. The forms of annuity and
installments shall be established by the PERF board by rule, in
consultation with the system's actuary. The PERF board shall give
participants information on these forms of payments and the effects of
various dates of withdrawal.
SOURCE: IC 2-3.5-5-7; (12)IN0127.1.11. -->
SECTION 11. IC 2-3.5-5-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 7. (a) This section
applies to a participant who dies while a member of the general
assembly, or who dies after terminating service as a member of the
general assembly and prior to withdrawing the participant's account
from the defined contribution fund. The participant's employee
contribution account and the participant's employer contribution
account shall be paid to a beneficiary or the beneficiaries designated on
a form prescribed by the board. The amount paid shall be the fair
market value of the participant's accounts on the last day of the quarter
preceding the date of payment, plus employee contributions deducted
and employer contributions made since the last day of the quarter
preceding the date of payment. If there is no properly designated
beneficiary, or if no beneficiary survives the participant, the
participant's accounts shall be paid to:
(1) the surviving spouse of the participant;
(2) if there is no surviving spouse, a surviving dependent or the
surviving dependents of the participant; or
(3) if there is no surviving spouse and no surviving dependent, the
estate of the participant.
(b) Amounts payable under this section shall be paid in a lump sum,
a partial lump sum, a monthly annuity as purchased by the PERF board
with the remaining amount, or a series of monthly installment payments
over sixty (60) months, as elected by the recipient. The forms of
annuity and installments available shall be established by the PERF
board by rule, in consultation with the system's actuary.
SOURCE: IC 2-3.5-5-11; (12)IN0127.1.12. -->
SECTION 12. IC 2-3.5-5-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 11. Before January 1,
2002, the PERF board shall adopt rules establishing procedures for
making loans to a participant from the participant's employee
contribution account and employer contribution account within the
defined contribution fund. Rules adopted under this section must
comply with the requirements of Section 72(p) of the Internal Revenue
Code and must apply to each participant in the plan, regardless of
whether the participant is serving in the general assembly at the time
of the loan. A loan made in accordance with rules adopted under this
section is not considered the receipt of retirement benefits for purposes
of IC 5-10-8-1.
SOURCE: IC 4-1-8-1; (12)IN0127.1.13. -->
SECTION 13. IC 4-1-8-1, AS AMENDED BY P.L.142-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 1. (a) No individual may be compelled by any
state agency, board, commission, department, bureau, or other entity of
state government (referred to as "state agency" in this chapter) to
provide the individual's Social Security number to the state agency
against the individual's will, absent federal requirements to the
contrary. However, the provisions of this chapter do not apply to the
following:
(1) Department of state revenue.
(2) Department of workforce development.
(3) The programs administered by:
(A) the division of family resources;
(B) the division of mental health and addiction;
(C) the division of disability and rehabilitative services;
(D) the division of aging; and
(E) the office of Medicaid policy and planning;
of the office of the secretary of family and social services.
(4) Auditor of state.
(5) State personnel department.
(6) Secretary of state, with respect to the registration of
broker-dealers, agents, and investment advisors.
(7) The legislative ethics commission, with respect to the
registration of lobbyists.
(8) Indiana department of administration, with respect to bidders
on contracts.
(9) Indiana department of transportation, with respect to bidders
on contracts.
(10) Indiana professional licensing agency.
(11) Department of insurance, with respect to licensing of
insurance producers.
(12) The department of child services.
(13) A pension fund administered by the board of trustees of the
Indiana public employees' retirement fund. system.
(14) The Indiana state teachers' retirement fund.
(15) (14) The state police benefit system.
(16) (15) The alcohol and tobacco commission.
(17) (16) The state department of health, for purposes of licensing
radiologic technologists under IC 16-41-35-29(c).
(b) The bureau of motor vehicles may, notwithstanding this chapter,
require the following:
(1) That an individual include the individual's Social Security
number in an application for an official certificate of title for any
vehicle required to be titled under IC 9-17.
(2) That an individual include the individual's Social Security
number on an application for registration.
(3) That a corporation, limited liability company, firm,
partnership, or other business entity include its federal tax
identification number on an application for registration.
(c) The Indiana department of administration, the Indiana
department of transportation, and the Indiana professional licensing
agency may require an employer to provide its federal employer
identification number.
(d) The department of correction may require a committed offender
to provide the offender's Social Security number for purposes of
matching data with the Social Security Administration to determine
benefit eligibility.
(e) The Indiana gaming commission may, notwithstanding this
chapter, require the following:
(1) That an individual include the individual's Social Security
number:
(A) in any application for a riverboat owner's license,
supplier's license, or occupational license; or
(B) in any document submitted to the commission in the
course of an investigation necessary to ensure that gaming
under IC 4-32.2, IC 4-33, and IC 4-35 is conducted with
credibility and integrity.
(2) That a sole proprietorship, a partnership, an association, a
fiduciary, a corporation, a limited liability company, or any other
business entity include its federal tax identification number on an
application for a riverboat owner's license or supplier's license.
(f) Notwithstanding this chapter, the department of education
established by IC 20-19-3-1 may require an individual who applies to
the department for a license or an endorsement to provide the
individual's Social Security number. The Social Security number may
be used by the department only for conducting a background
investigation, if the department is authorized by statute to conduct a
background investigation of an individual for issuance of the license or
endorsement.
SOURCE: IC 4-1-10-5; (12)IN0127.1.14. -->
SECTION 14. IC 4-1-10-5, AS AMENDED BY P.L.106-2008,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 5. (a) A state agency may disclose the Social
Security number of an individual if any of the following apply:
(1) The disclosure of the Social Security number is expressly
required by state law, federal law, or a court order.
(2) The individual expressly consents in writing to the disclosure
of the individual's Social Security number.
(3) The disclosure of the Social Security number is:
(A) made to comply with:
(i) the USA Patriot Act of 2001 (P.L. 107-56); or
(ii) Presidential Executive Order 13224; or
(B) to a commercial entity for the permissible uses set forth in
the:
(i) Drivers Privacy Protection Act (18 U.S.C. 2721 et seq.);
(ii) Fair Credit Reporting Act (15 U.S.C. 1681 et seq.); or
(iii) Financial Modernization Act of 1999 (15 U.S.C. 6801
et seq.).
(4) The disclosure of the Social Security number is for the
purpose of administration of a state agency employee's or the state
agency employee's dependent's health benefits.
(5) The disclosure of the Social Security number is for the
purpose of administration of:
(A) a pension fund administered by the board of trustees of the
Indiana public employees' retirement fund; system;
(B) the Indiana state teachers' retirement fund;
(C) (B) a deferred compensation plan or defined contribution
plan established under IC 5-10-1.1;
(D) (C) a pension plan established by the state police
department under IC 10-12; or
(E) (D) the Uniform Commercial Code (IC 26-1) by the office
of the secretary of state.
(b) A state agency's disclosure of the Social Security number of an
individual in compliance with subsection (a) does not violate
IC 5-14-3-4(a)(12).
SOURCE: IC 4-10-10-1.5; (12)IN0127.1.15. -->
SECTION 15. IC 4-10-10-1.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1.5. This chapter does
not apply to benefit checks issued by the Indiana state teachers' public
retirement fund. system.
SOURCE: IC 4-12-1-14.3; (12)IN0127.1.16. -->
SECTION 16. IC 4-12-1-14.3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 14.3. (a) As used in this
section, "master settlement agreement" has the meaning set forth in
IC 24-3-3-6.
(b) There is hereby created the Indiana tobacco master settlement
agreement fund for the purpose of depositing and distributing money
received under the master settlement agreement. The fund consists of:
(1) all money received by the state under the master settlement
agreement;
(2) appropriations made to the fund by the general assembly; and
(3) grants, gifts, and donations intended for deposit in the fund.
(c) The fund shall be administered by the budget agency.
Notwithstanding IC 5-13, the treasurer of state shall invest the money
in the fund not currently needed to meet the obligations of the fund in
the same manner as money is invested by the
Indiana public
employees retirement
fund system under IC 5-10.3-5. The treasurer of
state may contract with investment management professionals,
investment advisors, and legal counsel to assist in the investment of the
fund and may pay the state expenses incurred under those contracts
from the fund. Interest that accrues from these investments shall be
deposited in the fund. Money in the fund at the end of the state fiscal
year does not revert to the state general fund.
(d) The state general fund is not liable for payment of a shortfall in
expenditures, transfers, or distributions from the Indiana tobacco
master settlement agreement fund or any other fund due to a delay,
reduction, or cancellation of payments scheduled to be received by the
state under the master settlement agreement. If such a shortfall occurs
in any state fiscal year, the budget agency shall make the full transfer
to the regional health facilities construction account and then reduce all
remaining expenditures, transfers, and distributions affected by the
shortfall.
SOURCE: IC 4-12-4-10; (12)IN0127.1.17. -->
SECTION 17. IC 4-12-4-10, AS AMENDED BY P.L.229-2011,
SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 10. (a) The Indiana tobacco use prevention and
cessation trust fund is established. The state department of health may
expend money from the fund and make grants from the fund to
implement the long range state plan established under this chapter.
Administrative expenses necessary to carry out this chapter are also
payable from the fund.
(b) The fund consists of:
(1) amounts, if any, that another statute requires to be distributed
to the fund from the Indiana tobacco master settlement agreement
fund;
(2) appropriations to the fund from other sources;
(3) grants, gifts, and donations intended for deposit in the fund;
and
(4) interest that accrues from money in the fund.
(c) The fund shall be administered by the state department of health.
Notwithstanding IC 5-13, the treasurer of state shall invest the money
in the fund not currently needed to meet the obligations of the fund in
the same manner as money is invested by the Indiana public
employees retirement fund system under IC 5-10.3-5. The treasurer of
state may contract with investment management professionals,
investment advisors, and legal counsel to assist in the investment of the
fund and may pay the expenses incurred under those contracts from the
fund. Money in the fund at the end of a state fiscal year does not revert
to the state general fund.
(d) All income and assets of the executive board deposited in the
fund are for the use of the state department of health after
appropriation.
SOURCE: IC 4-12-9-2; (12)IN0127.1.18. -->
SECTION 18. IC 4-12-9-2, AS AMENDED BY P.L.1-2006,
SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 2. (a) The tobacco farmers and rural community
impact fund is established. The fund shall be administered by the
director of the department of agriculture. The fund consists of:
(1) amounts, if any, that another statute requires to be distributed
to the fund from the Indiana tobacco master settlement agreement
fund;
(2) appropriations to the fund from other sources;
(3) grants, gifts, and donations intended for deposit in the fund;
and
(4) interest that accrues from money in the fund.
(b) The expenses of administering the fund shall be paid from
money in the fund.
(c) Notwithstanding IC 5-13, the treasurer of state shall invest the
money in the fund not currently needed to meet the obligations of the
fund in the same manner as money is invested by the Indiana public
employees retirement fund system under IC 5-10.3-5. The treasurer of
state may contract with investment management professionals,
investment advisors, and legal counsel to assist in the management of
the fund and may pay the state expenses incurred under those contracts.
(d) Money in the fund at the end of the state fiscal year does not
revert to the state general fund and remains available for expenditure.
SOURCE: IC 4-13-1-17; (12)IN0127.1.19. -->
SECTION 19. IC 4-13-1-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 17. (a) A state agency
may not purchase insurance to cover loss or damage to property.
(b) This section does not prohibit any of the following:
(1) The purchase of title insurance by a state agency.
(2) The purchase of insurance by a body corporate and politic.
(3) The purchase of insurance to meet requirements for receipt of
federal funds by a state agency.
(4) The requiring of contractors to carry insurance.
(5) The purchase of insurance to cover loss or damage to real
property owned by the Indiana public employees' retirement fund
or the Indiana state teachers' retirement fund. system.
(6) The purchase of insurance to cover loss or destruction of
money or securities under the control of the treasurer of state.
(7) The purchase of insurance by a state agency to cover loss or
damage to exhibits, artifacts, or other materials that are loaned to
the agency.
(8) The purchase of casualty and liability insurance for foster
parents (as defined in IC 27-1-30-4) on a group basis.
SOURCE: IC 5-10-0.5-1; (12)IN0127.1.20. -->
SECTION 20. IC 5-10-0.5-1, AS AMENDED BY P.L.2-2006,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 1. (a) The prohibitions of Article 11, Section 12
of the Constitution of the State of Indiana do not apply to:
(1) the public employees' retirement fund (IC 5-10.3);
(2) the Indiana state teachers' retirement fund (IC 5-10.4);
(3) the Indiana state police pre-1987 benefit system (IC 10-12-3);
(4) the Indiana state police 1987 benefit system (IC 10-12-4); or
(5) any other public pension or employee retirement fund
administered by the board of trustees of the Indiana public
employees' retirement fund. system.
(b) Investments of the funds listed in subsection (a) are subject to
the following limitations and regulations:
(1) Investments of the public employees' retirement fund and any
other public pension or employee retirement fund administered
by the board of trustees of the Indiana public employees'
retirement fund system are subject to IC 5-10.3-5-3, including
P.L.37-1996, and IC 5-10.5-5.
(2) Investments of the Indiana state teachers' retirement fund are
subject to IC 5-10.4-3-10 and IC 5-10.5-5.
(3) Investments of the Indiana state police benefit system are
subject to IC 10-12-2-2.
SOURCE: IC 5-10-1.1-7.5; (12)IN0127.1.21. -->
SECTION 21. IC 5-10-1.1-7.5, AS AMENDED BY P.L.2-2007,
SECTION 80, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 7.5. (a) As used in this section, "state agency"
means the following:
(1) An authority, a board, a branch, a commission, a committee,
a department, a division, or other instrumentality of state
government.
(2) A separate corporate body politic that adopts the plan
described in subsection (b).
(3) State elected officials and their office staff.
(4) The legislative services agency.
(5) Legislative staff eligible to participate in the state employees'
deferred compensation plan established by section 1 of this
chapter.
However, the term does not include a state educational institution or a
political subdivision.
(b) The deferred compensation committee shall adopt provisions in
a defined contribution plan, under Sections 401(a) and 414(d) of the
Internal Revenue Code, for the purpose of converting unused excess
accrued leave to a monetary contribution for employees of a state
agency. These provisions may be part of the plan and trust established
under section 1.5(a) of this chapter.
(c) The deferred compensation committee is the trustee of the plan
described in subsection (b). The plan must be a qualified plan, as
determined by the Internal Revenue Service.
(d) The state personnel department shall adopt rules under IC 4-22-2
that it considers appropriate or necessary to implement this section.
The rules adopted by the state personnel department under this section
must:
(1) be consistent with the plan described in subsection (b);
(2) include provisions concerning:
(A) the type and amount of leave that may be converted to a
monetary contribution;
(B) the conversion formula for valuing any leave that is
converted;
(C) the manner of employee selection of leave conversion; and
(D) the vesting schedule for any leave that is converted; and
(3) apply to all state agencies.
(e) The rules adopted by the state personnel department under
subsection (d) specifying the conversion formula must provide for a
conversion rate under which the amount contributed on behalf of a
participating employee for a day of leave that is converted under this
section is equal to at least sixty percent (60%) of the employee's daily
pay as of the date the leave is converted.
(f) The deferred compensation committee may adopt the following:
(1) Plan provisions governing:
(A) the investment of accounts in the plan; and
(B) the accounting for converted leave.
(2) Any other plan provisions that are necessary or appropriate for
operation of the plan.
(g) The plan described in subsection (b) may be implemented only
if the deferred compensation committee has received from the Internal
Revenue Service any rulings or determination letters that the
committee considers necessary or appropriate.
(h) To the extent allowed by:
(1) the Internal Revenue Code; and
(2) rules adopted by:
(A) the state personnel department under this section; and
(B) the board of trustees of the Indiana public employees'
retirement fund system under IC 5-10.3-8-14;
an employee of a state agency may convert unused excess accrued
leave to a monetary contribution under this section and under
IC 5-10.3-8-14.
SOURCE: IC 5-10-1.7-1; (12)IN0127.1.22. -->
SECTION 22. IC 5-10-1.7-1, AS AMENDED BY P.L.227-2007,
SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 1. (a) The retirement plans covered by this chapter
are:
(1) The state excise police, gaming agent, gaming control officer,
and conservation officers' retirement plan, established under
IC 5-10-5.5.
(2) The public employees' retirement fund, established under
IC 5-10.3-2.
(3) The trust fund and pension trust of the department of state
police, established under IC 10-12-2.
(4) The Indiana state teachers' retirement fund, established under
IC 5-10.4-2.
(5) The Indiana judges' retirement fund, established under
IC 33-38-6.
(6) The police officers' and firefighters' pension and disability
fund established under IC 36-8-8-4.
(b) As used in this chapter, "board" means both of the following:
(1) The board of trustees of a the Indiana public retirement plan
covered by this chapter. system.
(2) The board of trustees of the state police pension trust.
SOURCE: IC 5-10-5.5-1; (12)IN0127.1.23. -->
SECTION 23. IC 5-10-5.5-1, AS AMENDED BY P.L.16-2011,
SECTION 1, AND AS AMENDED BY P.L.23-2011, SECTION 3, IS
CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 1. As used in this chapter and
unless the context clearly denotes otherwise:
(1) "Board" refers to the board of trustees of the Indiana public
retirement system established by IC 5-10.5-3-1.
(a) (2) "Department" means the Indiana department of natural
resources.
(b) (3) "Commission" means the alcohol and tobacco commission.
(c) (4) "Officer" means any Indiana state excise police officer, any
Indiana state conservation enforcement officer, any gaming agent,
or any gaming control officer.
(d) (5) "Participant" means any officer who has elected to
participate in the retirement plan created by this chapter.
(e) (6) "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) (7) "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) (8) "Public employees' retirement act" means IC 5-10.3.
(h) (9) "Public employees' retirement fund" means the public
employees' retirement fund created by IC 5-10.3-2.
(i) (10) "Interest" means the same rate of interest as is specified
under by rule by the board of trustees of the Indiana public
employees' retirement law. fund. system established by
IC 5-10.5-3-1.
(j) (11) "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) (12) 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.
SOURCE: IC 5-10-5.5-12.7; (12)IN0127.1.24. -->
SECTION 24. IC 5-10-5.5-12.7, AS AMENDED BY P.L.99-2007,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 12.7. (a) Upon a petition from a participant, the
department, or the commission, the board of trustees of the Indiana
public employees' retirement fund, system, or its designee, shall make
the determinations required by section 13 of this chapter and shall also
determine:
(1) the degree of impairment of any officer determined to have a
disability; and
(2) whether the disability arose in the line of duty (as defined in
section 13.5 of this chapter).
(b) The impairment standards contained in the United States
Department of Veterans Affairs Schedule for Rating Disabilities in
effect at the time the application for disability benefits is filed with the
board of trustees shall be used to determine the degree of impairment.
(c) To the extent required by the Americans with Disabilities Act,
the transcripts, reports, records, and other material generated as a result
of a hearing, a review, or an appeal conducted under this chapter to
determine the existence of a disability, the cause of a disability, or the
degree of impairment shall be:
(1) kept in separate medical files for each member; and
(2) treated as confidential medical records.
SOURCE: IC 5-10-10-1; (12)IN0127.1.25. -->
SECTION 25. IC 5-10-10-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1. As used in this
chapter, "board" refers to the board of trustees of the Indiana public
employees' retirement fund. system.
SOURCE: IC 5-10-11-1; (12)IN0127.1.26. -->
SECTION 26. IC 5-10-11-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1. As used in this
chapter, "board" refers to the board of trustees of the
Indiana public
employees' retirement fund. system.
SOURCE: IC 5-10.1-1-8; (12)IN0127.1.27. -->
SECTION 27. IC 5-10.1-1-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 8. State Agency. "State
agency" as used in this article means the Indiana public employees'
retirement fund. system.
SOURCE: IC 5-10.1-4-6; (12)IN0127.1.28. -->
SECTION 28. IC 5-10.1-4-6, AS AMENDED BY P.L.2-2007,
SECTION 90, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 6. (a) The effective date of a modification of the
agreement must be determined by resolution of the board of each of the
following retirement systems:
(1) The applicable pension system administered by the Indiana
public employees' retirement fund; system.
(2) the Indiana state teachers' retirement fund; and
(3) (2) Any retirement system established by a state educational
institution.
For political subdivisions the governing body shall determine the
effective date by resolution. The effective date may be made retroactive
to the extent permitted by federal law.
(b) The effective date of a modification for employees of political
subdivisions with retirement systems which are not covered by
subsection (a) of this section may be January 1, 1955, or any
subsequent January 1.
SOURCE: IC 5-10.2-1-6; (12)IN0127.1.29. -->
SECTION 29. IC 5-10.2-1-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 6. Retirement Fund
Law. "Retirement fund law" as used in this article means the statutes
governing:
(1) the Indiana state teachers' retirement fund; and the statutes
governing
(2) the public employees' retirement fund; and
(3) the Indiana public retirement system.
SOURCE: IC 5-10.2-2-1.5; (12)IN0127.1.30. -->
SECTION 30. IC 5-10.2-2-1.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1.5. Each retirement
fund covered by this article shall satisfy the qualification requirements
in Section 401 of the Internal Revenue Code, as applicable to each
retirement fund. In order to meet those requirements, each fund is
subject to the following provisions, notwithstanding any other
provision of the retirement fund law:
(1)
Each The board shall distribute the corpus and income of the
fund to members and their beneficiaries in accordance with the
retirement fund law.
(2) No part of the corpus or income of a fund may be used for or
diverted to any purpose other than the exclusive benefit of the
members and their beneficiaries.
(3) Forfeitures arising from severance of employment, death, or
for any other reason may not be applied to increase the benefits
any member would otherwise receive under the retirement fund
law.
(4) If a fund is terminated, or if all contributions to a fund are
completely discontinued, the rights of each affected member to
the benefits accrued at the date of the termination or
discontinuance, to the extent then funded, are nonforfeitable.
(5) All benefits paid from a retirement fund shall be distributed in
accordance with the requirements of Section 401(a)(9) of the
Internal Revenue Code and the regulations under that section. In
order to meet those requirements, each retirement fund is subject
to the following provisions:
(A) The life expectancy of a member, the member's spouse, or
the member's beneficiary may not be recalculated after the
initial determination for purposes of determining benefits.
(B) If a member dies before the distribution of the member's
benefits has begun, distributions to beneficiaries must begin
no later than December 31 of the calendar year immediately
following the calendar year in which the member died.
(C) The amount of an annuity paid to a member's beneficiary
may not exceed the maximum determined under the incidental
death benefit requirement of the Internal Revenue Code.
(6) The board may not:
(A) determine eligibility for benefits;
(B) compute rates of contribution; or
(C) compute benefits of members or beneficiaries;
in a manner that discriminates in favor of members who are
considered officers, supervisors, or highly compensated, as
prohibited under Section 401(a)(4) of the Internal Revenue Code.
(7) Benefits paid under this chapter may not exceed the maximum
benefits specified by Section 415 of the Internal Revenue Code.
(8) The salary taken into account under this chapter may not
exceed the applicable amount under Section 401(a)(17) of the
Internal Revenue Code.
(9) The board may not engage in a transaction prohibited by
Section 503(b) of the Internal Revenue Code.
SOURCE: IC 5-10.2-2-2.5; (12)IN0127.1.31. -->
SECTION 31. IC 5-10.2-2-2.5, AS AMENDED BY P.L.115-2010,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 2.5. (a)
Each The board may establish investment
guidelines and limits on all types of investments (including, but not
limited to, stocks and bonds) and take other actions necessary to fulfill
its duty as a fiduciary for all assets under its control, subject to the
limitations and restrictions set forth in section 18 of this chapter,
IC 5-10.3-5-3, and IC 5-10.4-3-10, and IC 5-10.5-5.
(b) Each The board may commingle or pool assets with the assets
of any other persons or entities. This authority includes, but is not
limited to, the power to invest in commingled or pooled funds,
partnerships, or mortgage pools, including pools that consist in part or
entirely of mortgages that qualify as five star mortgages under the
program established by IC 24-5-23.6. In the event of any such
investment, the board shall keep separate detailed records of the assets
invested. Any decision to commingle or pool assets is subject to the
limitations and restrictions set forth in IC 5-10.3-5-3, and
IC 5-10.4-3-10, and IC 5-10.5-5.
SOURCE: IC 5-10.2-2-3; (12)IN0127.1.32. -->
SECTION 32. IC 5-10.2-2-3, AS AMENDED BY P.L.115-2010,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 3. (a) The annuity savings account consists of:
(1) the members' contributions; and
(2) the interest credits on these contributions in the guaranteed
fund or the gain or loss in market value on these contributions in
the alternative investment program, as specified in section 4 of
this chapter.
Each member shall be credited individually with the amount of the
member's contributions and interest credits.
(b)
Each The board shall maintain the annuity savings account
program in effect on December 31, 1995 (referred to in this chapter as
the guaranteed program). In addition, the board
of the Indiana state
teachers' retirement fund shall establish and maintain a guaranteed
program within the 1996 account.
Each The board may establish
investment guidelines and limits on all types of investments (including,
but not limited to, stocks and bonds) and take other actions necessary
to fulfill its duty as a fiduciary of the annuity savings account, subject
to the limitations and restrictions set forth in IC 5-10.3-5-3,
and
IC 5-10.4-3-10,
and IC 5-10.5-5.
(c)
Each The board shall establish alternative investment programs
within the annuity savings account of the public employees' retirement
fund, the pre-1996 account, and the 1996 account, based on the
following requirements:
(1)
Each The board shall maintain at least one (1) alternative
investment program that is an indexed stock fund and one (1)
alternative investment program that is a bond fund.
Each The
board may maintain one (1) or more alternative investment
programs that:
(A) invest in one (1) or more commingled or pooled funds that
consist in part or entirely of mortgages that qualify as five star
mortgages under the program established by IC 24-5-23.6; or
(B) otherwise invest in mortgages that qualify as five star
mortgages under the program established by IC 24-5-23.6.
(2) The programs should represent a variety of investment
objectives under IC 5-10.3-5-3.
(3) No program may permit a member to withdraw money from
the member's account except as provided in IC 5-10.2-3 and
IC 5-10.2-4.
(4) All administrative costs of each alternative program shall be
paid from the earnings on that program or as may be determined
by the rules of each the board.
(5) Except as provided in section 4(e) of this chapter, a valuation
of each member's account must be completed as of:
(A) the last day of each quarter; or
(B) another time as each the board may specify by rule.
(d) The board must prepare, at least annually, an analysis of the
guaranteed program and each alternative investment program. This
analysis must:
(1) include a description of the procedure for selecting an
alternative investment program;
(2) be understandable by the majority of members; and
(3) include a description of prior investment performance.
(e) A member may direct the allocation of the amount credited to
the member among the guaranteed fund and any available alternative
investment funds, subject to the following conditions:
(1) A member may make a selection or change an existing
selection under rules established by each the board. A The board
shall allow a member to make a selection or change any existing
selection at least once each quarter.
(2) The board shall implement the member's selection beginning
on the first day of the next calendar quarter that begins at least
thirty (30) days after the selection is received by the board or on
an alternate date established by the rules of each the board. This
date is the effective date of the member's selection.
(3) A member may select any combination of the guaranteed fund
or any available alternative investment funds, in ten percent
(10%) increments or smaller increments that may be established
by the rules of each the board.
(4) A member's selection remains in effect until a new selection
is made.
(5) On the effective date of a member's selection, the board shall
reallocate the member's existing balance or balances in
accordance with the member's direction, based on:
(A) for an alternative investment program balance, the market
value on the effective date; and
(B) for any guaranteed program balance, the account balance
on the effective date.
All contributions to the member's account shall be allocated as of
the last day of that quarter or at an alternate time established by
the rules of each the board in accordance with the member's most
recent effective direction. The board shall not reallocate the
member's account at any other time.
(f) When a member who participates in an alternative investment
program transfers the amount credited to the member from one (1)
alternative investment program to another alternative investment
program or to the guaranteed program, the amount credited to the
member shall be valued at the market value of the member's
investment, as of the day before the effective date of the member's
selection or at an alternate time established by the rules of each the
board. When a member who participates in an alternative investment
program retires, becomes disabled, dies, or suspends membership and
withdraws from the fund, the amount credited to the member shall be
the market value of the member's investment as of the last day of the
quarter preceding the member's distribution or annuitization at
retirement, disability, death, or suspension and withdrawal, plus
contributions received after that date or at an alternate time established
by the rules of each the board.
(g) When a member who participates in the guaranteed program
transfers the amount credited to the member to an alternative
investment program, the amount credited to the member in the
guaranteed program is computed without regard to market value and is
based on the balance of the member's account in the guaranteed
program as of the last day of the quarter preceding the effective date of
the transfer. However, each the board may by rule provide for an
alternate valuation date. When a member who participates in the
guaranteed program retires, becomes disabled, dies, or suspends
membership and withdraws from the fund, the amount credited to the
member shall be computed without regard to market value and is based
on the balance of the member's account in the guaranteed program as
of the last day of the quarter preceding the member's distribution or
annuitization at retirement, disability, death, or suspension and
withdrawal, plus any contributions received since that date plus interest
since that date. However, each the board may by rule provide for an
alternate valuation date.
SOURCE: IC 5-10.2-2-4; (12)IN0127.1.33. -->
SECTION 33. IC 5-10.2-2-4, AS AMENDED BY P.L.165-2009,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 4. (a) Except as provided in subsection (e),
interest shall be credited and compounded at least annually on all
amounts credited to the member in the guaranteed program. For the
guaranteed program, the board shall annually establish an interest
credit rate equal to or less than the investment income earned.
(b) Except as provided in subsection (e), the market value of each
alternative investment program shall be allocated at least annually to
the members participating in that program.
(c) Contributions to the guaranteed program and the alternative
investment programs shall be invested as of the last day of the quarter
in which the contributions are received or at an alternate time
established by the rules of each the board. Contributions to the
guaranteed program shall begin to accumulate interest at the beginning
of the quarter after the quarter in which the contributions are received
or at an alternate time established by the rules of each the board.
(d) When a member retires or withdraws with a balance in the
guaranteed program, a proportional interest credit determined by the
board shall be granted for the period elapsed since the last interest date
on that balance.
(e) This subsection applies whenever the board is required to
establish an interest or earnings rate in order to credit interest or
earnings to an omitted contribution to a member's annuity savings
account. As used in this subsection, "omitted contribution" means a
contribution contributed by or on behalf of a member under
IC 5-10.3-7-9 or IC 5-10.4-4-11 that is received by the board after the
time required by IC 5-10.3-7-12.5 or IC 5-10.4-7-6(b)(1).
Notwithstanding any law to the contrary, each the board may by rule
specify:
(1) a single composite interest rate and the period to which the
rate applies for the purpose of computing the interest credits on
a member's contributions (including omitted contributions) in the
guaranteed fund; and
(2) a single composite earnings rate for the gain or loss in market
value for each alternative investment program and the period to
which the rate applies for the purpose of computing the gain or
loss in market value on a member's contributions (including
omitted contributions) in the alternate investment program.
SOURCE: IC 5-10.2-2-6; (12)IN0127.1.34. -->
SECTION 34. IC 5-10.2-2-6, AS AMENDED BY P.L.13-2011,
SECTION 3, AS AMENDED BY P.L.22-2011, SECTION 1, AND AS
AMENDED BY P.L.23-2011, SECTION 9, IS CORRECTED AND
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]:
Sec. 6. (a) The retirement allowance account of the public employees'
retirement fund consists of the retirement fund, exclusive of the annuity
savings account. The retirement allowance account also includes any
amounts received under IC 5-10.3-12-24(b). For the public employees'
retirement fund, separate accounts within the retirement allowance
account shall be maintained for contributions made by the state and by
each political subdivision. each contribution rate group.
(b) The retirement allowance account of the pre-1996 account
consists of the pre-1996 account, exclusive of the annuity savings
account.
(c) The retirement allowance account of the 1996 account consists
of the 1996 account, exclusive of the annuity savings account. For the
1996 account, separate accounts within the retirement allowance
account shall be maintained for contributions made by the state, by
each school corporation, and by each institution.
SOURCE: IC 5-10.2-2-10; (12)IN0127.1.35. -->
SECTION 35. IC 5-10.2-2-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 10. Based on the
actuarial investigation and valuation in section 9 of this chapter, each
the board shall adopt mortality, rates, service, and such other tables as
the board considers necessary for the implementation of this article.
Each The board shall adopt a single mortality table for both men and
women that reasonably reflects each fund's mortality experience.
SOURCE: IC 5-10.2-2-11; (12)IN0127.1.36. -->
SECTION 36. IC 5-10.2-2-11, AS AMENDED BY P.L.23-2011,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 11. (a) Based on the actuarial investigation and
valuation in section 9 of this chapter,
each the board shall determine:
(1) the normal contribution for each contribution rate group,
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 period, which must be thirty (30) years or a shorter period,
necessary to amortize the unfunded accrued liability determined
in subdivision (3).
(b) Based on the information in subsection (a),
each the 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 sections 1.5 and 11.5 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(d).
SOURCE: IC 5-10.2-2-12; (12)IN0127.1.37. -->
SECTION 37. IC 5-10.2-2-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 12. (a) The general
assembly shall appropriate biennially for each fund covered by this
article that satisfies the conditions of section 1.5 of this chapter the sum
of the following:
(1) the state's normal contribution for its employees to the public
employees' retirement fund, the pre-1996 account, and the 1996
account, as determined in section 11 of this chapter;
(2) at least the anticipated increase in the state's unfunded accrued
liability in each fund, other than the pre-1996 account, as
estimated by each the board under the procedures specified in
section 11 of this chapter; and
(3) the state's obligation as estimated by each the board for
disability benefits and benefits payable under retirement fund
laws in effect before April 1, 1955.
The request for this sum for each fund shall be submitted to the budget
agency as one (1) item for each fund. Each The board shall submit to
the agency its actuarial investigation and valuation and any other
actuarial information to support the request.
(b) The biennial appropriation specified in subsection (a) of this
section shall be paid annually to each fund covered by this article that
satisfies the conditions of section 1.5 of this chapter in equal
installments in July of each year of the biennium.
(c) The biennial appropriation under this section shall be deposited
in the trust of each fund and used only as provided in section 1.5 of this
chapter.
SOURCE: IC 5-10.2-2-13; (12)IN0127.1.38. -->
SECTION 38. IC 5-10.2-2-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 13. Custodial
Agreements for Securities; Servicing of Mortgages; Securities Lending
Program. (a) Each The board may enter into a custodial agreement with
a trust company or state or national bank to provide for the custody and
servicing of the securities and other investments under the control of
the board.
(b) The agreement may contain such terms as the board considers
desirable including:
(1) the custody, safeguarding or indemnity, servicing, handling
and delivery of the securities and other investments; and
(2) the payment of taxes, fees of the custodian, and other expenses
and payments required in connection with the securities and
investments.
(c) Any person, firm, limited liability company, or corporation
authorized to service mortgage loans guaranteed by the federal housing
administration may be authorized by the board to service a mortgage
loan held by the fund.
(d) Each The board may authorize its custodian to enter into a
securities lending program agreement, under which the securities held
by each fund may be loaned in order to provide revenue to the fund.
Such an agreement must require that collateral be pledged in excess of
the total market value of the loaned securities.
SOURCE: IC 5-10.2-3-1; (12)IN0127.1.39. -->
SECTION 39. IC 5-10.2-3-1, AS AMENDED BY P.L.1-2009,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 1. (a) Except as provided in IC 5-10.2-4-8(d), each
member's creditable service, for the purpose of computing benefits
under this article, consists of all service in a position covered by a
retirement fund plus all other service for which the retirement fund law
gives credit.
(b) No member may be required to pay any contributions for service
before the member is covered by this article as a condition precedent
to receiving benefits under this article. However, the member must
furnish
to the board proof of the service
to the board of in a position
covered by the fund under which the member claims service.
(c) A member who has past service as an employee of the state or
a participating political subdivision in a position which was not
covered by the retirement fund is entitled to credit for this service if the
position becomes covered before January 1, 1985, by the Indiana state
teachers' retirement fund, the public employees' retirement fund, or the
retirement fund for the state board of accounts and if the member
submits
to the board proof of the service
to the secretary of in a
position covered by the fund in which the member claims service.
(d) A member who has past service in a position that was not
covered by the retirement fund is entitled to credit for this service if the
position becomes covered after December 31, 1984, by a fund while
the member holds that position or another position with the same
employer and if the member submits
to the board proof of the service
to the director of in a position covered by the fund in which the
member claims service.
(e) The proof required by this section must:
(1) be submitted in a form approved by the director;
(2) contain dates and nature of service and other information
required by the director; and
(3) be certified by the governing body or its agent.
(f) A member who is a state employee is entitled to service credit for
the time the member is receiving disability benefits under a disability
plan established under IC 5-10-8-7.
(g) If a participant in the legislators' defined benefit plan does not
become entitled to a benefit from that plan, the PERF board or the TRF
board shall include the participant's service in the general assembly in
the determination of eligibility for, and computation of, benefits under
PERF or TRF at the time the participant would be eligible to receive
benefits under PERF or TRF. After benefits commence under PERF or
TRF with the general assembly service included, the participant's
general assembly service may not be used for the computation of
benefits under IC 2-3.5-4.
(h) A member may receive service credit for all or a part of the
member's creditable service in another governmental retirement plan
under IC 5-10.3-7-4.5 and IC 5-10.4-4-4. A member may not receive
credit for service for which the member receives service credit in
another retirement plan maintained by a state, a political subdivision,
or an instrumentality of the state for service that PERF or TRF would
otherwise give credit.
(i) A member may use all or a part of the member's creditable
service under PERF or TRF in another governmental retirement plan
under the terms of the other plan. Creditable service used under the
other governmental retirement plan may not be used in PERF or TRF.
SOURCE: IC 5-10.2-3-2; (12)IN0127.1.40. -->
SECTION 40. IC 5-10.2-3-2, AS AMENDED BY P.L.1-2009,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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 in IC 5-10.2-4-8(d);
each member shall, as a condition of employment, contribute to the
fund three percent (3%) of the member's compensation.
(c) Except as provided in 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 the 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 The 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: IC 5-10.2-4-1.3; (12)IN0127.1.41. -->
SECTION 41. IC 5-10.2-4-1.3, AS AMENDED BY P.L.115-2008,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 1.3. (a) A member who files an application for
retirement benefits must provide the following information on the
application form:
(1) The retirement date chosen by the member.
(2) If the member has not elected to withdraw the entire amount
in the member's annuity savings account under IC 5-10.2-3-6.5,
whether the member chooses:
(A) an annuity purchased from the amount credited to the
member in the annuity savings account;
(B) a total or partial distribution from the annuity savings
account under section 2(b) of this chapter; or
(C) a deferral of the payment of any benefits from the annuity
savings account under section 2(c) of this chapter.
(3) The name of the beneficiary or beneficiaries designated by the
member with respect to the pension portion of the member's
retirement benefit.
(4) The name of the beneficiary or beneficiaries designated by the
member with respect to the annuity portion of the member's
retirement benefit, unless the member chooses total distribution
under section 2 of this chapter.
(b) A member's designation of beneficiaries in the application for
retirement benefits supersedes any previous designation of
beneficiaries by the member.
(c) A member must indicate the name, address, date of birth, and
Social Security number of each designated beneficiary and provide
proof of birth of each designated beneficiary.
(d) Each The board shall adopt a form for the application for
retirement benefits that meets the requirements of this section.
SOURCE: IC 5-10.2-4-2; (12)IN0127.1.42. -->
SECTION 42. IC 5-10.2-4-2, AS AMENDED BY P.L.115-2009,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 2. (a) Unless a member elects otherwise under this
section or has elected to withdraw the member's annuity savings
account under IC 5-10.2-3-6.5, the retirement benefit for each member
consists of the sum of a pension provided by employer contributions
plus an annuity provided by the amount credited to the member in the
annuity savings account. If a member has elected to withdraw the
member's annuity savings account under IC 5-10.2-3-6.5, the member's
retirement benefit is equal to the pension provided by employer
contributions, unless the member has transferred the creditable service
earned under the public employees' retirement fund to another
governmental retirement plan under IC 5-10.2-3-1(i). 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.
(b) If a member has not elected to withdraw the entire amount in the
member's annuity savings account under IC 5-10.2-3-6.5, a member
may choose at retirement or upon a disability retirement to receive a
distribution of:
(1) the entire amount credited to the member in the annuity
savings account; or
(2) an amount equal to the member's federal income tax basis in
the member's annuity savings account balance as it existed on
December 31, 1986.
If the member chooses to receive the distribution under subdivision (1),
the member is not entitled to an annuity as part of the retirement or
disability benefit. If the member chooses to receive the distribution
under subdivision (2), the member is entitled to an annuity purchasable
by the amount remaining in the member's annuity savings account after
the payment under subdivision (2).
(c) Instead of choosing to receive the benefits described in
subsection (a) or (b), if a member has not elected to withdraw the entire
amount in the member's annuity savings account under IC 5-10.2-3-6.5,
a member may choose upon retirement or upon disability retirement to
begin receiving a pension provided by employer contributions and to
defer receiving in any form the member's annuity savings account. If
a member chooses this option, the member:
(1) is not entitled to an annuity as part of the member's retirement
or disability benefit, and the member's annuity savings account
will continue to be invested according to the member's direction
under IC 5-10.2-2-3; and
(2) may later choose, as of the first day of a month, or an alternate
date established by the rules of each the board, to receive a
distribution of:
(A) the entire amount credited to the member in the annuity
savings account; or
(B) an amount equal to the member's federal income tax basis
in the member's annuity savings account balance as it existed
on December 31, 1986.
If the member chooses to receive the distribution under subdivision
(2)(A), the member is not entitled to an annuity as part of the member's
retirement or disability benefit. If the member chooses to receive the
distribution under subdivision (2)(B), the member is entitled to an
annuity purchasable by the amount remaining in the member's annuity
savings account after the payment under subdivision (2)(B). If the
member does not choose to receive a distribution under this subsection,
the member is entitled to an annuity purchasable by the entire amount
in the member's annuity savings account, and the form of the annuity
shall be as described in subsection (d) unless the member elects an
option described in section 7(b)(1), 7(b)(2), or 7(b)(4) of this chapter.
The amount to be paid under this section shall be determined in the
manner described in IC 5-10.2-2-3. However, each the board may by
rule provide for an alternate valuation date.
(d) Retirement benefits must be distributed in a manner that
complies with Section 401(a)(9) of the Internal Revenue Code, as
specified in IC 5-10.2-2-1.5.
SOURCE: IC 5-10.2-4-6; (12)IN0127.1.43. -->
SECTION 43. IC 5-10.2-4-6, AS AMENDED BY P.L.124-2008,
SECTION 2, AND AS AMENDED BY P.L.131-2008, SECTION 1, IS
CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 6. (a) A member who becomes
disabled while receiving a salary or employer provided income
protection benefits or who is on leave under the Family and Medical
Leave Act may retire for the duration of the member's disability if:
(1) the member has at least five (5) years of creditable service
before the:
(A) termination of a salary or employer provided income
protection benefits or Family and Medical Leave Act leave; or
(B) exhaustion of all worker's compensation benefits;
(2) the member has qualified for Social Security disability
benefits and has furnished proof of the Social Security
qualification to the board; and
(3) at least once each year until the member reaches age sixty-five
(65) a representative of the board verifies the continued disability.
For the purposes of this section, a member of the public employees'
retirement fund who has qualified for disability benefits under the
federal civil service system is considered to have met the requirement
of subdivision (2) if the member furnishes proof of the qualification to
the board. of the public employees' retirement fund.
(b) Benefits for disability shall be paid beginning with the month
following the onset of disability as determined by the Social Security
Administration. The benefit is the retirement benefit specified in
section 4 of this chapter with the pension computed using only the
years of creditable service worked to the date of disability and without
reduction for early retirement. However, The monthly disability
retirement benefit payable before July 1, 2008, may not be less than
one hundred eighty dollars ($100). ($180). ($100). The monthly
disability retirement benefit payable after June 30, 2008, may not be
less than one hundred eighty dollars ($180).
(c) The member may have the member's benefit paid under any of
the retirement benefit options specified in section 7 of this chapter,
except that the member may not choose to have the member's disability
retirement benefit paid under the method specified under section
7(b)(3) of this chapter.
(d) This section applies to:
(1) a member of the public employees' retirement fund who
became disabled after June 30, 1973; and
(2) a member of the Indiana state teachers' retirement fund who
becomes disabled after June 30, 1984, and who chooses disability
retirement under this section.
(e) To the extent required by the Americans with Disabilities Act
(42 U.S.C. 12101 et seq.) and any amendments and regulations to the
Act, the transcripts, records, and other material compiled to determine
the existence of a disability shall be:
(1) kept in separate medical files for each member; and
(2) treated as confidential medical records.
(f) A member may continue to receive disability benefits from the
public employees' retirement fund or the Indiana state teachers'
retirement fund so long as the member is entitled to receive Social
Security benefits, including periods of trial employment or
rehabilitation under the Social Security guidelines. However, during a
period of trial employment or rehabilitation, service credit may not be
granted under the public employees' retirement fund or the Indiana
state teachers' retirement fund.
(g) If the fund is authorized to make, in the form of a single check
or a series of checks, a one (1) time distribution that does not increase
the pension portion of the monthly benefit, the distribution must
include members eligible for disability benefits. A member eligible for
disability benefits is required to meet all additional requirements
necessary to receive the check or series of checks issued by the fund
under this subsection.
SOURCE: IC 5-10.2-4-7; (12)IN0127.1.44. -->
SECTION 44. IC 5-10.2-4-7, AS AMENDED BY P.L.115-2009,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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) Each The board may adopt a policy to permit annual payment of
a member's retirement benefit whenever the amount of the monthly
retirement benefit to be paid to the member is not more than five
dollars ($5).
SOURCE: IC 5-10.2-4-8; (12)IN0127.1.45. -->
SECTION 45. IC 5-10.2-4-8, AS AMENDED BY P.L.115-2009,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: 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 has 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 5-10.2-5-29; (12)IN0127.1.46. -->
SECTION 46. IC 5-10.2-5-29 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 29. (a) In addition to
any other cost of living provided under this chapter, the pension portion
(plus postretirement increases to the pension portion) provided by
employer contributions of the monthly benefit payable after June 30,
1999, to a member of the public employees' retirement fund or the
Indiana state teachers' retirement fund (or to a survivor or beneficiary
of a member of the public employees' retirement fund or the Indiana
state teachers' retirement fund) who retired or was disabled before July
2, 1960, shall be increased by the amount necessary to ensure that the
purchasing power (as determined by the PERF or TRF board (as those
boards existed before their dissolution on July 1, 2011), based on
changes in the consumer price index and postretirement increases to
the pension portion) of the member's pension portion is at least equal
to fifty percent (50%) of the purchasing power of the member's pension
portion at the time the member retired, as determined on July 1, 1999.
(b) The increases specified in this section:
(1) are based upon the date of the member's latest retirement or
disability;
(2) do not apply to benefits payable in a lump sum; and
(3) are in addition to any other increase provided by law.
SOURCE: IC 5-10.2-5-30; (12)IN0127.1.47. -->
SECTION 47. IC 5-10.2-5-30 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 30. (a) In addition to
any other cost of living provided under this chapter, the pension portion
(plus postretirement increases to the pension portion) provided by
employer contributions of the monthly benefit payable after June 30,
2000, to a member of the public employees' retirement fund or the
Indiana state teachers' retirement fund (or to a survivor or beneficiary
of a member of the public employees' retirement fund or the Indiana
state teachers' retirement fund) who retired or was disabled before July
2, 1975, shall be increased by the amount necessary to ensure that the
purchasing power (as determined by the PERF or TRF board
(as those
boards existed before their dissolution on July 1, 2011), based on
changes in the consumer price index and postretirement increases to
the pension portion) of the member's pension portion is at least equal
to fifty-seven and four-tenths percent (57.4%) of the purchasing power
of the member's pension portion at the time the member retired, as
determined on July 1, 2000.
(b) The increases specified in this section:
(1) are based upon the date of the member's latest retirement or
disability;
(2) do not apply to benefits payable in a lump sum; and
(3) are in addition to any other increase provided by law.
SOURCE: IC 5-10.2-8-2; (12)IN0127.1.48. -->
SECTION 48. IC 5-10.2-8-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 2. Each The board may
elect to establish a voluntary supplemental retirement plan for political
subdivisions. A plan established under this chapter shall be governed
by Section 457 of the Internal Revenue Code. A plan established under
this chapter shall be funded through employee salary deductions and
may additionally have employer contributions, subject to the limits and
provisions under Section 457 of the Internal Revenue Code.
SOURCE: IC 5-10.2-9-6; (12)IN0127.1.49. -->
SECTION 49. IC 5-10.2-9-6, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 6. As used in this chapter, "cost of divestment"
means the sum of the following:
(1) The costs associated with the sale, redemption, divestment, or
withdrawal of an investment.
(2) The costs associated with the acquisition and maintenance of
a replacement investment.
(3) A cost not described in subdivision (1) or (2) that is incurred
by the fund (before July 1, 2011) or system in connection with
a divestment transaction.
SOURCE: IC 5-10.2-9-7; (12)IN0127.1.50. -->
SECTION 50. IC 5-10.2-9-7, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 7. As used in this chapter, "direct holdings" means
all securities of a company held directly by the system on behalf of a
fund or in an account in which the system on behalf of a fund owns all
shares or interests.
SOURCE: IC 5-10.2-9-11; (12)IN0127.1.51. -->
SECTION 51. IC 5-10.2-9-11, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 11. As used in this chapter, "indirect holdings"
means all securities of a company:
(1) held in an account or a fund; and
(2) managed by one (1) or more persons not employed by the fund
(before July 1, 2011) or system, in which the fund (before July
1, 2011) or system owns shares or interests on behalf of a fund
together with other investors not subject to this chapter.
SOURCE: IC 5-10.2-9-17; (12)IN0127.1.52. -->
SECTION 52. IC 5-10.2-9-17, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 17. As used in this chapter, "research firm" means
a reputable, neutral third party research firm not controlled by the fund
(before July 1, 2011) or system.
SOURCE: IC 5-10.2-9-20.5; (12)IN0127.1.53. -->
SECTION 53. IC 5-10.2-9-20.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 20.5. As used in this chapter,
"system" refers to the Indiana public retirement system
established by IC 5-10.5-2-1.
SOURCE: IC 5-10.2-9-21; (12)IN0127.1.54. -->
SECTION 54. IC 5-10.2-9-21, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 21. (a) Not later than March 30, 2008, each the
board shall make a good faith effort to identify all scrutinized
companies in which the a fund administered by the board has direct or
indirect holdings.
(b) In carrying out its responsibilities under subsection (a), and at
the board's discretion, each the board may use existing research or
contract with a research firm.
(c) A board or a research firm with which the board contracts under
subsection (b) may take any of the following actions:
(1) Review publicly available information regarding companies
with business operations in Sudan.
(2) Contact other institutional investors that invest in companies
with business operations in Sudan.
(3) Contact asset managers contracted by the fund that invest in
companies with business operations in Sudan.
(d) Not later than the first meeting of the board after March 30,
2008, each the board shall compile the names of all scrutinized
companies into a scrutinized company list and indicate whether each
scrutinized company has active or inactive business operations in
Sudan.
(e) Each The board shall update its scrutinized company list at least
on an annual basis based on evolving information from sources
described in subsections (b) and (c).
SOURCE: IC 5-10.2-9-22; (12)IN0127.1.55. -->
SECTION 55. IC 5-10.2-9-22, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 22. After a the board creates or updates the
scrutinized company list under section 21 of this chapter, the board
shall immediately identify the companies on the scrutinized company
list in which the a fund administered by the board has direct or indirect
holdings.
SOURCE: IC 5-10.2-9-23; (12)IN0127.1.56. -->
SECTION 56. IC 5-10.2-9-23, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 23. (a) Each fund (before July 1, 2011) or the
board shall send to each scrutinized company:
(1) that is identified under section 22 of this chapter as one in
which the a fund has direct or indirect holdings; and
(2) that has only inactive business operations;
a written notice concerning the contents of this chapter and a statement
encouraging the company to continue to refrain from initiating active
business operations in Sudan until the company is able to avoid
scrutinized business operations altogether.
(b) The fund (before July 1, 2011) or board shall continue to
correspond on a semiannual basis with scrutinized companies in which
the a fund has direct or indirect holdings and that have only inactive
business operations.
SOURCE: IC 5-10.2-9-24; (12)IN0127.1.57. -->
SECTION 57. IC 5-10.2-9-24, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 24. (a) Each fund (before July 1, 2011) or the
board shall send to each scrutinized company:
(1) that is identified under section 22 of this chapter as one in
which the a fund has direct or indirect holdings; and
(2) that has active business operations;
a written notice concerning the contents of this chapter and a statement
indicating that the a fund's holdings in the company may become
subject to divestment by the fund (before July 1, 2011) or system.
(b) A notice sent under this section shall:
(1) offer the company the opportunity to clarify the company's
Sudan related activities; and
(2) encourage the company, within ninety (90) days after the date
of the written notice, to either:
(A) cease its scrutinized business operations; or
(B) convert the company's operations to inactive business
operations in order to avoid divestment by the fund (before
July 1, 2011) or system of the a fund's holdings in the
company.
SOURCE: IC 5-10.2-9-25; (12)IN0127.1.58. -->
SECTION 58. IC 5-10.2-9-25, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 25. (a) If, within ninety (90) days after a fund's
(before July 1, 2011) or the system's first engagement with a
company under section 24 of this chapter, the company ceases
scrutinized business operations, the company shall be removed from
the a fund's scrutinized company list and the provisions of sections 26,
27, 28, and 29 of this chapter shall cease to apply to the company
unless the company resumes scrutinized business operations.
(b) If, within ninety (90) days after a fund (before July 1, 2011) or
the system first engages with a company under section 24 of this
chapter, the company converts its scrutinized active business
operations to inactive business operations, the company shall be
subject to the provisions of section 23 of this chapter.
SOURCE: IC 5-10.2-9-26; (12)IN0127.1.59. -->
SECTION 59. IC 5-10.2-9-26, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 26. (a) Except as provided in sections 28 and 29
of this chapter, if, after ninety (90) days after a fund's
(before July 1,
2011) or the system's first engagement with a company under section
24 of this chapter, the company continues to have scrutinized active
business operations, the fund
(before July 1, 2011) or system shall
sell, redeem, divest, or withdraw all publicly traded securities of the
company that are held by
the a fund, as follows:
(1) At least fifty percent (50%) of such assets shall be removed
from
the a fund's assets under management within nine (9)
months after the company's appearance on the scrutinized
company list.
(2) One hundred percent (100%) of such assets shall be removed
from
the a fund's assets under management within fifteen (15)
months after the company's appearance on the scrutinized
company list.
(b) If a company that ceased scrutinized active business operations
following engagement under section 24 of this chapter resumes
scrutinized active business operations, and only while the company
continues to have active business operations, the company shall
immediately be placed back on the scrutinized company list.
If a fund
that has holdings in the company,
the fund (before July 1, 2011) or
the system shall sell, redeem, divest, or withdraw all publicly traded
securities of the company as provided in subsection (a) based on the
date the company is placed back on the scrutinized company list. The
fund
(before July 1, 2011) or the system shall send a written notice
to the company indicating that the company was placed back on the
scrutinized company list and is subject to divestment.
(c)
A The board is not required to divest
the board's a fund's
holdings in a passively managed commingled fund that includes a
scrutinized company with active business operations in Sudan if the
estimated cost of divestment of the commingled fund is greater than ten
percent (10%) of the total value of the scrutinized companies with
active business operations held in the commingled fund. The board
shall include any commingled fund that includes a scrutinized company
that is exempted from divestment under this subsection in the board's
report submitted to the legislative council under section 31 of this
chapter.
SOURCE: IC 5-10.2-9-27; (12)IN0127.1.60. -->
SECTION 60. IC 5-10.2-9-27, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 27. Except as provided in sections 28 and 29 of
this chapter, a fund (before July 1, 2011) or the system shall not
acquire for a fund securities of companies on the scrutinized company
list that have active business operations.
SOURCE: IC 5-10.2-9-29; (12)IN0127.1.61. -->
SECTION 61. IC 5-10.2-9-29, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 29. Notwithstanding any provision to the contrary,
sections 26 and 27 of this chapter do not apply to indirect holdings in
actively managed investment funds. However, if a fund has indirect
holdings in actively managed investment funds containing the
securities of scrutinized companies with active business operations, the
fund (before July 1, 2011) or board shall submit letters to the
managers of the investment funds requesting that the managers remove
the scrutinized companies with active business operations from the
fund or create a similar actively managed fund with indirect holdings
without scrutinized companies with active business operations. If the
manager creates a similar fund, the fund (before July 1, 2011) or
board shall replace all applicable investments with investments in the
similar fund in a period consistent with prudent investing standards.
SOURCE: IC 5-10.2-9-31; (12)IN0127.1.62. -->
SECTION 62. IC 5-10.2-9-31, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 31. (a) On or before November 1, 2007, and
thereafter as directed by the legislative council, the board shall submit
a report in an electronic format under IC 5-14-6 to the legislative
council for distribution to the members of the general assembly.
(b) The report must include at least the following information, as of
the date of the report:
(1) A copy of the scrutinized company list.
(2) A summary of correspondence with companies engaged by the
fund (before July 1, 2011) or board under sections 23 and 24 of
this chapter.
(3) All investments sold, redeemed, divested, or withdrawn in
compliance with section 26 of this chapter.
(4) All commingled funds that are exempted from divestment
under section 26 of this chapter.
(5) All prohibited investments under section 27 of this chapter.
(6) Any progress made under section 29 of this chapter.
SOURCE: IC 5-10.2-9-33; (12)IN0127.1.63. -->
SECTION 63. IC 5-10.2-9-33, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 33. With respect to actions taken in compliance
with this chapter, including all good faith determinations regarding
companies on the scrutinized company list, the fund (before July 1,
2011) or system shall be exempt from any conflicting statutory or
common law obligations, including any obligations with respect to
choice of asset managers, investment funds, or investments for fund
securities portfolios.
SOURCE: IC 5-10.2-9-34; (12)IN0127.1.64. -->
SECTION 64. IC 5-10.2-9-34, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 34. (a) Notwithstanding any provision to the
contrary, the fund (before July 1, 2011) or system shall be permitted
to cease divesting and to reinvest in certain scrutinized companies on
the scrutinized company list with active business operations in Sudan
if evidence shows that the value for all assets under management by the
fund (before July 1, 2011) or the system on a fund's behalf becomes
equal to or less than ninety-nine and five-tenths percent (99.5%) of the
value of all assets under management by the fund (before July 1,
2011) or the system on a fund's behalf, including the companies
divested under section 26 of this chapter.
(b) As provided by this section, any cessation of divestment or
reinvestment shall be strictly limited to the minimum steps necessary
to avoid the contingency set forth in subsection (a).
(c) For any cessation of divestment, reinvestment, and subsequent
ongoing investment authorized by this section, the fund (before July
1, 2011) or board shall submit a report in an electronic format under
IC 5-14-6 to the legislative council for distribution to the members of
the general assembly in advance of any initial reinvestment. The report
shall be updated annually thereafter as applicable, setting forth the
reasons and justifications for the decision to cease divestment, reinvest,
or remain invested with companies with scrutinized active business
operations. This section does not apply to companies that have ceased
to have scrutinized business operations.
SOURCE: IC 5-10.2-9-35; (12)IN0127.1.65. -->
SECTION 65. IC 5-10.2-9-35, AS ADDED BY P.L.149-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 35. (a) Both:
(1) the state and its officers, agents, and employees; and
(2) the fund
(before July 1, 2011) or system and its board
members, executive director, officers, agents, and employees;
are immune from civil liability for any act or omission related to the
removal of an asset from the a fund under this chapter.
(b) In addition to the immunity provided under subsection (a), both:
(1) the officers, agents, and employees of the state; and
(2) the board members, executive director, officers, agents, and
employees of the fund (before July 1, 2011) or system;
are entitled to indemnification from the fund (before July 1, 2011) or
system for all losses, costs, and expenses, including reasonable
attorney's fees, associated with defending against any claim or suit
relating to an act authorized under this chapter.
SOURCE: IC 5-10.2-10-6; (12)IN0127.1.66. -->
SECTION 66. IC 5-10.2-10-6, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 6. As used in this chapter, "cost of divestment"
means the sum of the following:
(1) The costs associated with the sale, redemption, divestment, or
withdrawal of an investment.
(2) The costs associated with the acquisition and maintenance of
a replacement investment.
(3) A cost not described in subdivision (1) or (2) that is incurred
by the fund (before July 1, 2011) or system in connection with
a divestment transaction.
SOURCE: IC 5-10.2-10-7; (12)IN0127.1.67. -->
SECTION 67. IC 5-10.2-10-7, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 7. As used in this chapter, "direct holdings" means
all securities of a company held directly by a fund (before July 1,
2011) or the system on behalf of a fund or in an account in which the
fund (before July 1, 2011) or the system on behalf of the fund owns
all shares or interests.
SOURCE: IC 5-10.2-10-10; (12)IN0127.1.68. -->
SECTION 68. IC 5-10.2-10-10, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 10. As used in this chapter, "indirect holdings"
means all securities of a company that are:
(1) held in an account or a fund; and
(2) managed by one (1) or more persons:
(A) who are not employed by the fund (before July 1, 2011)
or system; and
(B) in which the fund (before July 1, 2011) or the system on
behalf of the fund owns shares or interests together with other
investors not subject to this chapter.
SOURCE: IC 5-10.2-10-16.5; (12)IN0127.1.69. -->
SECTION 69. IC 5-10.2-10-16.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]:
Sec. 16.5. As used in this chapter,
"system" refers to the Indiana public retirement system
established by IC 5-10.5-2-1.
SOURCE: IC 5-10.2-10-17; (12)IN0127.1.70. -->
SECTION 70. IC 5-10.2-10-17, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 17. (a) Not later than March 30, 2010, each the
board shall make a good faith effort to identify all scrutinized
companies in which the a fund administered by the board has direct or
indirect holdings.
(b) In carrying out its responsibilities under subsection (a), each the
board may use existing research or contract with a research firm.
(c) A board or a research firm with which the board contracts under
subsection (b) may take any of the following actions:
(1) Review publicly available information regarding companies
with business operations in states that sponsor terror.
(2) Contact other institutional investors that have divested from
or invest in companies with business operations in states that
sponsor terror.
(3) Contact asset managers that are contracted by the fund and
that invest in companies with business operations in states that
sponsor terror.
(d) Not later than the first meeting of the board after March 30,
2010, each the board shall compile the names of all scrutinized
companies into a scrutinized company list and indicate whether each
scrutinized company has active or inactive business operations in a
state sponsor of terror.
(e) Each The board shall update its scrutinized company list at least
on an annual basis based on evolving information from sources
described in subsections (b) and (c).
(f) If the Secretary of State of the United States determines that a
country is a state sponsor of terror after June 30, 2009, each the board
shall add any additional scrutinized company resulting from the
Secretary of State's determination when each the board updates its
scrutinized company list under subsection (e).
SOURCE: IC 5-10.2-10-18; (12)IN0127.1.71. -->
SECTION 71. IC 5-10.2-10-18, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 18. After a the board creates or updates the
scrutinized company list under section 17 of this chapter, the board
shall immediately identify the companies on the scrutinized company
list in which the a fund administered by the board has direct or indirect
holdings.
SOURCE: IC 5-10.2-10-19; (12)IN0127.1.72. -->
SECTION 72. IC 5-10.2-10-19, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 19. (a) Each fund
(before July 1, 2011) or the
board shall send to each scrutinized company:
(1) that is identified under section 18 of this chapter as one in
which the a fund has direct or indirect holdings; and
(2) that has only inactive business operations;
a written notice concerning the provisions of this chapter and a
statement encouraging the company to continue to refrain from
initiating active business operations in a state sponsor of terror until the
company is able to avoid scrutinized business operations altogether.
(b) Each fund (before July 1, 2011) or the board shall continue to
correspond on a semiannual basis with scrutinized companies:
(1) in which the a fund has direct or indirect holdings; and
(2) that have only inactive business operations.
SOURCE: IC 5-10.2-10-20; (12)IN0127.1.73. -->
SECTION 73. IC 5-10.2-10-20, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 20. (a) Each fund (before July 1, 2011) or the
board shall send to each scrutinized company:
(1) that is identified under section 18 of this chapter as one in
which the a fund has direct or indirect holdings; and
(2) that has active business operations;
a written notice concerning the contents of this chapter and a statement
indicating that the a fund's holdings in the company may become
subject to divestment by the fund (before July 1, 2011) or system.
(b) A notice sent under this section must:
(1) offer the company the opportunity to clarify the company's
state sponsor of terror related activities; and
(2) encourage the company to:
(A) cease its scrutinized business operations; or
(B) convert the company's operations to inactive business
operations in order to avoid divestment by the fund (before
July 1, 2011) or system of the a fund's holdings in the
company;
not later than one hundred eighty (180) days after the date of the
notice.
SOURCE: IC 5-10.2-10-21; (12)IN0127.1.74. -->
SECTION 74. IC 5-10.2-10-21, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 21. (a) If, within one hundred eighty (180) days
after a fund (before July 1, 2011) or the system first sends written
notice to a company under section 20 of this chapter, the company
ceases scrutinized business operations, the company shall be removed
from the a fund's scrutinized company list, and sections 22, 23, 24, and
25 of this chapter do not apply to the company unless the company
resumes scrutinized business operations.
(b) If, within one hundred eighty (180) days after a fund (before
July 1, 2011) or the system first sends written notice to a company
under section 20 of this chapter, the company converts its scrutinized
active business operations to inactive business operations, the company
is subject to section 19 of this chapter.
SOURCE: IC 5-10.2-10-22; (12)IN0127.1.75. -->
SECTION 75. IC 5-10.2-10-22, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 22. (a) Except as provided in sections 24 and 25
of this chapter, if a company continues to have scrutinized active
business operations one hundred eighty (180) days after a fund
(before
July 1, 2011) or the system first sends written notice to the company
under section 20 of this chapter, the fund shall sell, redeem, divest, or
withdraw all publicly traded securities of the company that are held by
the a fund, as follows:
(1) At least fifty percent (50%) of the securities shall be removed
from
the a fund's assets under management within three (3) years
after the company's appearance on the scrutinized company list.
(2) At least seventy-five percent (75%) of the securities shall be
removed from
the a fund's assets under management within four
(4) years after the company's appearance on the scrutinized
company list.
(3) One hundred percent (100%) of the securities shall be
removed from
the a fund's assets under management within five
(5) years after the company's appearance on the scrutinized
company list.
(b) If a company that ceased scrutinized active business operations
following engagement under section 20 of this chapter resumes
scrutinized active business operations, the company shall immediately
be placed on the scrutinized company list and shall remain on the
scrutinized company list while the company continues to have active
business operations.
If a fund
that has holdings in the company,
the
fund (before July 1, 2011) or the system shall send a written notice
to the company as described in section 20 of this chapter indicating that
the company has been placed on the scrutinized company list and is
subject to divestment. The fund
(before July 1, 2011) or system shall
sell, redeem, divest, or withdraw all publicly traded securities of the
company as provided in subsection (a) based on the date the company
is placed back on the scrutinized company list.
(c)
A The board is not required to divest the board's holdings in a
passively managed commingled fund that includes a scrutinized
company with active business operations in a state sponsor of terror if
the estimated cost of divestment of the commingled fund is greater than
ten percent (10%) of the total value of the scrutinized companies with
active business operations held in the commingled fund. The board
shall include any commingled fund that includes a scrutinized company
that is exempted from divestment under this subsection in the board's
report submitted to the legislative council under section 26 of this
chapter.
SOURCE: IC 5-10.2-10-23; (12)IN0127.1.76. -->
SECTION 76. IC 5-10.2-10-23, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 23. Except as provided in sections 24 and 25 of
this chapter:
(1) before July 1, 2011, a fund shall not acquire; and
(2) after June 30, 2011, the system shall not acquire for a
fund;
securities of companies on the scrutinized company list that have active
business operations.
SOURCE: IC 5-10.2-10-25.5; (12)IN0127.1.77. -->
SECTION 77. IC 5-10.2-10-25.5, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 25.5. Notwithstanding any provision to the
contrary, sections 22 and 23 of this chapter do not apply to indirect
holdings in actively managed investment funds. However, if a fund has
indirect holdings in actively managed investment funds containing the
securities of scrutinized companies with active business operations, the
fund (before July 1, 2011) or board shall submit letters to the
managers of the investment funds requesting that the managers remove
the scrutinized companies with active business operations from the
fund or create a similar actively managed fund with indirect holdings
without scrutinized companies with active business operations. If the
manager creates a similar fund, the fund (before July 1, 2011) or
board shall replace all applicable investments with investments in the
similar fund in a period consistent with prudent investing standards.
SOURCE: IC 5-10.2-10-26; (12)IN0127.1.78. -->
SECTION 78. IC 5-10.2-10-26, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 26. (a) On or before November 1, 2010, and
thereafter as directed by the legislative council,
each the board shall
submit a report in an electronic format under IC 5-14-6 to the
legislative council. Notwithstanding IC 5-14-6-4(b)(2), the submission
of a report under this subsection to the executive director of the
legislative services agency fulfills the board's requirement to send a
copy of the report to each member of the general assembly using the
member's senate or house of representatives electronic mail address.
(b) A report submitted by the board
of a fund under this section
must include at least the following information, as of the date of the
report:
(1) A copy of the fund's scrutinized company list.
(2) A summary of correspondence between the fund board and
companies under sections 19 and 20 of this chapter.
(3) All investments sold, redeemed, divested, or withdrawn by the
fund board in compliance with section 22 of this chapter.
(4) All commingled funds that are exempted from divestment
under section 22 of this chapter.
(5) All companies whose securities the fund system is prohibited
from acquiring under section 23 of this chapter.
(6) Any progress made under section 21 of this chapter.
SOURCE: IC 5-10.2-10-28; (12)IN0127.1.79. -->
SECTION 79. IC 5-10.2-10-28, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 28. With respect to actions taken in compliance
with this chapter, including all good faith determinations regarding
companies on the scrutinized company list, a fund (before July 1,
2011) or the system is exempt from any conflicting statutory or
common law obligations, including any obligations with respect to
choice of asset managers, investment funds, or investments for fund
securities portfolios.
SOURCE: IC 5-10.2-10-29; (12)IN0127.1.80. -->
SECTION 80. IC 5-10.2-10-29, AS ADDED BY P.L.67-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 29. (a) Both:
(1) the state and its officers, agents, and employees; and
(2) each fund (before July 1, 2011) or the system and its board
members, executive director, officers, agents, and employees;
are immune from civil liability for any act or omission related to the
removal of an asset from the a fund under this chapter.
(b) In addition to the immunity provided under subsection (a), both:
(1) the officers, agents, and employees of the state; and
(2) the board members, executive director, officers, agents, and
employees of a fund (before July 1, 2011) or the system;
are entitled to indemnification from the fund for all losses, costs, and
expenses, including reasonable attorney's fees, associated with
defending against any claim or suit relating to an act authorized under
this chapter.
SOURCE: IC 5-10.3-7-1; (12)IN0127.1.81. -->
SECTION 81. IC 5-10.3-7-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1. (a) This section does
not apply to:
(1) members of the general assembly; or
(2) employees covered by section 3 of this chapter.
(b) An employee of the state or of a participating political
subdivision who:
(1) became a full-time employee of the state or of a participating
political subdivision in a covered position; and
(2) had not become a member of the fund;
before April 1, 1988, shall on April 1, 1988, become a member of the
fund unless the employee is excluded from membership under section
2 of this chapter.
(c) Any individual who becomes a full-time employee of the state
or of a participating political subdivision in a covered position after
March 31, 1988, becomes a member of the fund on the date the
individual's employment begins unless the individual is excluded from
membership under section 2 of this chapter.
(d) For the purposes of this section, "employees of the state"
includes:
(1) employees of the judicial circuits whose compensation is paid
from state funds;
(2) elected and appointed state officers;
(3) prosecuting attorneys and deputy prosecuting attorneys of the
judicial circuits, whose compensation is paid in whole or in part
from state funds, including participants in the prosecuting
attorneys retirement fund established under IC 33-39-7;
(4) employees in the classified service;
(5) employees of any state department, institution, board,
commission, office, agency, court, or division of state government
receiving state appropriations and having the authority to certify
payrolls from appropriations or from a trust fund held by the
treasurer of state or by any department;
(6) employees of any state agency which is a body politic and
corporate;
(7) except as provided under IC 5-10.5-7-4, employees of the
board of trustees of the Indiana public employees' retirement
fund; system;
(8) persons who:
(A) are employed by the state;
(B) have been classified as federal employees by the Secretary
of Agriculture of the United States; and
(C) are excluded from coverage as federal employees by the
federal Social Security program under 42 U.S.C. 410;
(9) the directors and employees of county offices of family and
children; and
(10) employees of the center for agricultural science and heritage
(the barn).
SOURCE: IC 5-10.3-7-2; (12)IN0127.1.82. -->
SECTION 82. IC 5-10.3-7-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 2. The following
employees may not be members of the fund:
(1) Officials of a political subdivision elected by vote of the
people, unless the governing body specifically provides for the
participation of locally elected officials.
(2) Employees occupying positions normally requiring
performance of service of less than six hundred (600) hours
during a year who:
(A) were hired before July 1, 1982; or
(B) are employed by a participating school corporation.
(3) Independent contractors or officers or employees paid wholly
on a fee basis.
(4) Employees who occupy positions that are covered by other
pension or retirement funds or plans, maintained in whole or in
part by appropriations by the state or a political subdivision,
except:
(A) the federal Social Security program; and
(B) the prosecuting attorneys retirement fund established by
IC 33-39-7-9.
(5) Managers or employees of a license branch of the bureau of
motor vehicles commission, except those persons who may be
included as members under IC 9-16-4.
(6) Employees, except employees of a participating school
corporation, hired after June 30, 1982, occupying positions
normally requiring performance of service of less than one
thousand (1,000) hours during a year.
(7) Persons who:
(A) are employed by the state;
(B) have been classified as federal employees by the Secretary
of Agriculture of the United States; and
(C) are covered by the federal Social Security program as
federal employees under 42 U.S.C. 410.
(8) Members and employees of the state lottery commission.
(9) An employee of the state who makes an election under
IC 5-10.3-12-20 to become a member of the public employees'
defined contribution plan established by IC 5-10.3-12-18.
SOURCE: IC 5-10.3-8-14; (12)IN0127.1.83. -->
SECTION 83. IC 5-10.3-8-14, AS AMENDED BY P.L.44-2007,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 14. (a) This section applies to employees of the
state (as defined in IC 5-10.3-7-1(d)) who are members of the fund.
(b) The board shall adopt provisions to establish a retirement
medical benefits account within the fund under Section 401(h) or as a
separate fund under another applicable section of the Internal Revenue
Code for the purpose of converting unused excess accrued leave to a
monetary contribution for an employee of the state to fund on a pretax
basis benefits for sickness, accident, hospitalization, and medical
expenses for the employee and the spouse and dependents of the
employee after the employee's retirement. The state may match all or
a portion of an employee's contributions to the retirement medical
benefits account established under this section.
(c) The board is the trustee of the account described in subsection
(b). The account must be qualified, as determined by the Internal
Revenue Service, as a separate account within the fund whose benefits
are subordinate to the retirement benefits provided by the fund.
(d) The board may adopt rules under IC 5-10.3-3-8 IC 5-10.5-4-2
that it considers appropriate or necessary to implement this section
after consulting with the state personnel department. The rules adopted
by the board under this section must:
(1) be consistent with the federal and state law that applies to:
(A) the account described in subsection (b); and
(B) the fund; and
(2) include provisions concerning:
(A) the type and amount of leave that may be converted to a
monetary contribution;
(B) the conversion formula for valuing any leave that is
converted;
(C) the manner of employee selection of leave conversion; and
(D) the vesting schedule for any leave that is converted.
(e) The board may adopt the following:
(1) Account provisions governing:
(A) the investment of amounts in the account; and
(B) the accounting for converted leave.
(2) Any other provisions that are necessary or appropriate for
operation of the account.
(f) The account described in subsection (b) may be implemented
only if the board has received from the Internal Revenue Service any
rulings or determination letters that the board considers necessary or
appropriate.
(g) To the extent allowed by:
(1) the Internal Revenue Code; and
(2) rules adopted by:
(A) the board under this section; and
(B) the state personnel department under IC 5-10-1.1-7.5;
employees of the state may convert unused excess accrued leave to a
monetary contribution under this section and under IC 5-10-1.1-7.5.
(h) To the extent allowed by the Internal Revenue Code, the account
described in subsection (b) must include provisions that:
(1) require an employee of the state to convert to a monetary
contribution to the account at retirement the balance, but not more
than thirty (30) days, of unused vacation leave for which the state
would otherwise pay an employee in good standing at separation
from service (as determined by state personnel department rule);
and
(2) allow the state to contribute to the account on the employee's
behalf an amount not to exceed two (2) times the amount of the
employee's contribution under subdivision (1).
SOURCE: IC 5-10.3-11-2; (12)IN0127.1.84. -->
SECTION 84. IC 5-10.3-11-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 2. The state board
shall:
(1) make payments from the pension relief fund;
(2) administer the pension relief fund in accordance with the
powers and duties granted it in IC 5-10.3-3-7, IC 5-10.3-3-8, and
IC 5-10.3-5-3 through IC 5-10.3-5-6, IC 5-10.5-4, and
IC 5-10.5-6; and
(3) provide by rule and regulation for the implementation of this
chapter.
SOURCE: IC 5-10.3-12-21; (12)IN0127.1.85. -->
SECTION 85. IC 5-10.3-12-21, AS ADDED BY P.L.22-2011,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 21. (a) The plan consists of the following:
(1) Each member's contributions to the plan under section 23 of
this chapter.
(2) Contributions made by an employer to the plan on behalf of
each member under section 24 of this chapter.
(3) Rollovers to the plan by a member under section 29 of this
chapter.
(4) All earnings on investments or deposits of the plan.
(5) All contributions or payments to the plan made in the manner
provided by the general assembly.
(b) The plan shall establish an account for each member. A
member's account consists of two (2) subaccounts credited individually
as follows:
(1) The member contribution subaccount consists of:
(A) the member's contributions to the plan under section 23 of
this chapter; and
(B) the net earnings on the contributions described in clause
(A) as determined under section 22 of this chapter.
(2) The employer contribution subaccount consists of:
(A) the employer's contributions made on behalf of the
member to the plan under section 24 of this chapter; and
(B) the earnings on the contributions described in clause (A)
as determined under section 22 of this chapter.
The board may combine the two (2) subaccounts established under this
subsection into a single account, if the board determines that a single
account is administratively appropriate and permissible under
applicable law.
(c) If a member makes rollover contributions under section 30 29 of
this chapter, the plan shall establish a rollover account as a separate
subaccount within the member's account.
SOURCE: IC 5-10.4-1-6; (12)IN0127.1.86. -->
SECTION 86. IC 5-10.4-1-6, AS ADDED BY P.L.2-2006,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 6. "Director" refers to the chief administrative
officer of the fund. director of the Indiana public retirement system
established by IC 5-10.5-2-1.
SOURCE: IC 5-10.4-1-16; (12)IN0127.1.87. -->
SECTION 87. IC 5-10.4-1-16, AS ADDED BY P.L.2-2006,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 16. "Trustee" means a member of the board. of the
fund.
SOURCE: IC 5-10.4-2-3; (12)IN0127.1.88. -->
SECTION 88. IC 5-10.4-2-3, AS ADDED BY P.L.2-2006,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 3. (a) The board shall:
(1) prorate the expenses of administration of the fund and the
bond of the director between the retirement allowance accounts;
and
(2) pay the prorated expenses from those accounts.
(b) The board shall pay the expenses for the administration of
the system as provided in IC 5-10.5-6-5.
SOURCE: IC 5-10.4-2-5; (12)IN0127.1.89. -->
SECTION 89. IC 5-10.4-2-5, AS ADDED BY P.L.2-2006,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 5. (a) The pension stabilization fund is
established. The pension stabilization fund is a part of the pre-1996
account and shall be administered by the board in accordance with the
powers and duties granted to the board by
IC 5-10.4-3-6, IC 5-10.4-3-8,
and IC 5-10.4-3-10 through IC 5-10.4-3-14,
IC 5-10.5-4, and
IC 5-10.5-6.
(b) The following shall be deposited in the pension stabilization
fund:
(1) Amounts allocated to the pension stabilization fund under
IC 4-30-16-3.
(2) A part of the employer reserve balance as determined by the
budget director so that the employer reserve is sufficient for the
cash flow needs.
(3) Other amounts appropriated to the pension stabilization fund
by the general assembly.
(c) Payments from the pension stabilization fund must equal the
pre-1996 account liabilities for the current fiscal year minus the prior
year's state general fund payments for the pre-1996 account multiplied
by the pension stabilization percentage set forth in subsection (d).
(d) The pension stabilization percentage is one hundred six percent
(106%). The budget agency, after review by the budget committee and
with the approval of the governor, may change the pension stabilization
percentage so that the present value of future payments from the fund
equal the fund's balance plus the present value of future receipts to the
fund, but the payments may not allow the fund balance to be negative.
(e) Money in the pension stabilization fund at the end of a state
fiscal year does not revert to the state general fund.
SOURCE: IC 5-11-19-1; (12)IN0127.1.90. -->
SECTION 90. IC 5-11-19-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1. (a) All powers,
duties, liabilities, records, property, and employees of the field
examiners retirement board (referred to as FERF in this chapter) are
transferred to the board of trustees of the public employees' retirement
fund (referred to as PERF in this chapter) (as the board existed before
its abolishment on July 1, 2011) as the successor agency. The assets
of FERF are transferred to PERF.
(b) Rules of the FERF board of trustees filed with the secretary of
state before July 1, 1986, shall be treated after June 30, 1986, as though
they had been adopted by the PERF board of trustees (as the board
existed before its abolishment on July 1, 2011).
SOURCE: IC 5-11-19-2; (12)IN0127.1.91. -->
SECTION 91. IC 5-11-19-2, AS AMENDED BY P.L.1-2009,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 2. (a) After June 30, 1986, field examiners and
other employees of the state board of accounts shall be included as
members of PERF and shall be treated as though they were members
of PERF during their employment with the state board of accounts.
Creditable service that was properly allowed by the FERF board of
trustees as of June 30, 1986, shall be recognized by the
PERF board of
trustees
of the Indiana public retirement system as creditable
service.
(b) Notwithstanding subsection (a), the members of FERF who were
members on April 1, 1967, are entitled to receive retirement, survivor,
disability, and all other benefits as provided by IC 5-11-15-13
(repealed) before July 1, 1986.
SOURCE: IC 5-13-5-5; (12)IN0127.1.92. -->
SECTION 92. IC 5-13-5-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 5. (a) The fiscal body
of any political subdivision may by ordinance or resolution authorize
the proper legal officers of the political subdivision to transact the
political subdivision's business with a financial institution or a public
pension or retirement fund administered by the Indiana public
employees' retirement fund system through the use of electronic funds
transfer.
(b) The ordinance or resolution must:
(1) specify the types of transactions that may be conducted by
electronic funds transfer; and
(2) require the proper officers to maintain adequate
documentation of the transactions so that they may be audited as
provided by law.
SOURCE: IC 5-13-12-4; (12)IN0127.1.93. -->
SECTION 93. IC 5-13-12-4, AS AMENDED BY P.L.115-2010,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 4. (a) The secretary-investment manager shall
administer, manage, and direct the affairs and activities of the board
under the policies and under the control and direction of the board. In
carrying out these duties, the secretary-investment manager has the
power to do the following:
(1) Approve all accounts for salaries and allowable expenses of
the board, including, but not limited to:
(A) the employment of general or special attorneys,
consultants, and employees and agents as may be necessary to
assist the secretary-investment manager in carrying out the
duties of that office and to assist the board in its consideration
of applications for a guarantee of an industrial development
obligation or credit enhancement obligation guarantee; and
(B) the setting of compensation of persons employed under
clause (A).
(2) Approve all expenses incidental to the operation of the public
deposit insurance fund.
(3) Perform other duties and functions that may be delegated to
the secretary-investment manager by the board or that are
necessary to carry out the duties of the secretary-investment
manager under this chapter.
(b) The secretary-investment manager shall keep a record of the
proceedings of the board, and shall maintain and be custodian of all
books, documents, and papers filed with the board, and its official seal.
The secretary-investment manager may make copies of all minutes and
other records and documents of the board, and may give certificates
under seal of the board to the effect that the copies are true copies. All
persons dealing with the board may rely upon the certificates.
(c) Each year, beginning in 2001 and ending in 2021, after the
treasurer of state prepares the annual report required by IC 4-8.1-2-14,
the secretary-investment manager shall determine:
(1) the amount of interest earned by the public deposit insurance
fund during the state fiscal year ending on the preceding June 30,
after deducting:
(A) all expenses and other costs of the board for depositories
that were not paid from other sources during that state fiscal
year; and
(B) all expenses and other costs associated with the Indiana
education savings authority that were not paid from other
sources during that state fiscal year; and
(2) the amount of interest earned during the state fiscal year
ending on the preceding June 30 by the pension distribution fund
established by subsection (e).
(d) Subject to subsection (g), on or before the last business day of
December of each year, beginning in 2001 and ending in 2021, the
secretary-investment manager shall provide to the auditor of state a
check payable from the public deposit insurance fund to the pension
distribution fund established by subsection (e) in an amount equal to
the amount determined under subsection (c)(1).
(e) The pension distribution fund is established. The pension
distribution fund shall be administered by the treasurer of state. The
treasurer of state shall invest money in the pension distribution fund
not currently needed to meet the obligations of the pension distribution
fund in the same manner as other public money may be invested.
Interest that accrues from these investments shall be deposited in the
pension distribution fund. Money in the pension distribution fund at the
end of a state fiscal year does not revert to the state general fund.
(f) Subject to subsection (g), before June 30 and after June 30 and
before October 1 of each year, beginning in 2002 and ending in 2022,
the auditor of state shall distribute in two (2) equal installments from
the pension distribution fund to the Indiana public employees'
retirement fund system for deposit in the pension relief fund,
established by IC 5-10.3-11-1, the following:
(1) The amount determined under subsection (c)(2).
(2) The amount deposited in the pension distribution fund in
December of the preceding year under subsection (d).
The installments shall be used for distributions to units of local
government under IC 5-10.3-11-4.7.
(g) Before providing a check to the auditor of state under subsection
(d) in December of any year, the secretary-investment manager shall
determine:
(1) the total amount of payments made from the public deposit
insurance fund under IC 5-13-13-3 after June 30, 2001;
(2) the total amount of payments received by the board for
depositories and deposited in the public deposit insurance fund
under IC 5-13-13-3 after June 30, 2001; and
(3) the total amount of interest earned by the public deposit
insurance fund after the first of the payments described in
subdivision (1).
If the total amount of payments determined under subdivision (1) less
the total amount of payments determined under subdivision (2)
(referred to in this subsection as the "net draw on the fund") exceeds
ten million dollars ($10,000,000) and also exceeds the total amount of
interest determined under subdivision (3), the secretary-investment
manager may not provide a check to the auditor of state under
subsection (d) and a distribution may not be made from the pension
distribution fund under subsection (f) in the following calendar year
until the total amount of interest earned by the public deposit insurance
fund equals the net draw on the fund. A check may not be provided
under subsection (d) and a distribution may not be made under
subsection (d) in any subsequent calendar year if a study conducted by
the board under section 7(b) of this chapter demonstrates that payment
of the distribution would reduce the balance of the public deposit
insurance fund to a level insufficient to ensure the safekeeping and
prompt payment of public funds to the extent they are not covered by
insurance of any federal deposit insurance agency.
SOURCE: IC 7.1-4-11-1; (12)IN0127.1.94. -->
SECTION 94. IC 7.1-4-11-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1. The sums realized
from the collection of the biennial license fees imposed by
IC 7.1-4-4.1-3 shall be paid first, and are hereby appropriated, to the
state excise police,
gaming agent, gaming control officer, and
conservation enforcement officers' retirement
fund. plan established
by IC 5-10-5.5-2 (referred to as "retirement plan" in this section).
The board of trustees of the
Indiana public
employees' retirement
fund
system shall determine the amount to be appropriated. The amount to
be appropriated shall be sufficient, when added to the funds already
held by the retirement
fund, plan, for the payment of benefits to
enforcement officers to pay the aggregate liability of the retirement
fund plan for the payment of benefits and administration costs to the
end of the fiscal year. The appropriation of funds shall be credited to
the state excise police retirement fund plan in equal installments at the
end of each month during each fiscal year.
SOURCE: IC 8-1-13.1-10; (12)IN0127.1.95. -->
SECTION 95. IC 8-1-13.1-10, AS ADDED BY P.L.151-2009,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 10. (a) The alternative energy incentive fund is
established for the purpose of providing funds to corporations for use
in the development of alternative energy projects. The fund shall be
administered by the office.
(b) The fund consists of:
(1) money appropriated to the fund by the general assembly;
(2) money received from state or federal grants or programs for
alternative energy projects; and
(3) donations, gifts, and money received from any other source,
including transfers from other funds or accounts.
(c) Money in the fund is continuously appropriated for the purposes
of this section.
(d) Money in the fund may be spent only in accordance with this
chapter and to carry out the purposes of this chapter.
(e) The expenses of administering the fund shall be paid from
money in the fund.
(f) Notwithstanding IC 5-13, the treasurer of state shall invest the
money in the fund not currently needed to meet the obligations of the
fund in the same manner as money is invested by the Indiana public
employees retirement fund system under IC 5-10.3-5. The treasurer of
state may contract with investment management professionals,
investment advisers, and legal counsel to assist in the investment of the
fund and may pay the expenses incurred under those contracts from the
fund. Interest that accrues from these investments shall be deposited in
the fund.
(g) Money in the fund at the end of a state fiscal year does not revert
to the state general fund.
SOURCE: IC 8-14-14-5; (12)IN0127.1.96. -->
SECTION 96. IC 8-14-14-5, AS AMENDED BY P.L.203-2007,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 5. (a) The major moves construction fund is
established for the purpose of:
(1) funding projects, other than passenger or freight railroad
systems as described in IC 8-15.7-2-14(a)(4), under IC 8-15.7 or
IC 8-15-3;
(2) funding other projects in the department's transportation plan;
and
(3) funding distributions under sections 6 and 7 of this chapter.
(b) The fund shall be administered by the department.
(c) Notwithstanding IC 5-13, the treasurer of state shall invest the
money in the fund not currently needed to meet the obligations of the
fund in the same manner as money is invested by the Indiana public
employees' retirement fund system under IC 5-10.3-5. However, the
treasurer of state may not invest the money in the fund in equity
securities. The treasurer of state may contract with investment
management professionals, investment advisors, and legal counsel to
assist in the investment of the fund and may pay the state expenses
incurred under those contracts from the fund. Interest that accrues from
these investments shall be deposited in the fund.
(d) The fund consists of the following:
(1) Distributions to the fund from the toll road fund under
IC 8-15.5-11.
(2) Distributions to the fund from the next generation trust fund
under IC 8-14-15.
(3) Appropriations to the fund.
(4) Gifts, grants, loans, bond proceeds, and other money received
for deposit in the fund.
(5) Revenues arising from:
(A) a tollway under IC 8-15-3 or IC 8-23-7-22; or
(B) a toll road under IC 8-15-2 or IC 8-23-7-23;
that the department designates as part of, and deposits in, the
fund.
(6) Payments, other than payments for passenger or freight
railroad systems as described in IC 8-15.7-2-14(a)(4), made to the
authority or the department from operators under IC 8-15.7.
(7) Interest, premiums, or other earnings on the fund.
(e) The fund is considered a trust fund for purposes of IC 4-9.1-1-7.
Money may not be transferred, assigned, or otherwise removed from
the fund by the state board of finance, the budget agency, or any other
state agency.
(f) Money in the fund at the end of a state fiscal year does not revert
to the state general fund.
(g) Money in the fund must be appropriated by the general assembly
to be available for expenditure.
SOURCE: IC 8-14-14-8; (12)IN0127.1.97. -->
SECTION 97. IC 8-14-14-8, AS ADDED BY P.L.47-2006,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 8. (a) The total amount of distributions from the
fund for projects or purposes that benefit a county traversed by the
Indiana Toll Road may not be less than thirty-four percent (34%) of:
(1) the money that is transferred to the fund from the toll road
fund under IC 8-15.5-11; plus
(2) the amount initially set aside in the administration account of
the toll road fund to establish an escrow account to implement a
written agreement entered into under IC 8-15.5-7-6 to fund
reductions in, or refunds of, user fees imposed on Class 2
vehicles.
(b) The budget agency shall determine the amount of distributions
required by this section. In making the determination, the budget
agency shall include the following amounts:
(1) Amounts distributed to counties traversed by the Indiana Toll
Road under section 6(a)(1) of this chapter.
(2) Money distributed to the northwest Indiana regional
development authority under this chapter.
(3) Money distributed under section 6(a)(3) of this chapter.
(4) Projects carried out by the department in counties traversed by
the Indiana Toll Road and funded with money distributed under
section 6(a)(4) of this chapter.
(5) The amount initially set aside in the administration account of
the toll road fund to establish an escrow account to implement a
written agreement entered into under IC 8-15.5-7-6 to fund
reductions in, or refunds of, user fees imposed on Class 2
vehicles.
(6) Money transferred to the administration account of the toll
road fund under section 6(a)(5) of this chapter.
(7) Payments to the Indiana public employees' retirement fund
system required by section 6(a)(6) of this chapter.
SOURCE: IC 8-14-15-8; (12)IN0127.1.98. -->
SECTION 98. IC 8-14-15-8, AS ADDED BY P.L.47-2006,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 8. (a) The trustee shall:
(1) administer and manage the trust;
(2) invest the money in the trust; and
(3) deposit in the trust any interest that accrues from the
investment of these funds.
(b) Notwithstanding IC 5-13, the trustee shall invest the money in
the trust not currently needed to meet the obligations of the trust in the
same manner as money is invested by the
Indiana public
employees'
retirement
fund system under IC 5-10.3-5. However, the trustee may
not invest the money in the trust in equity securities. The trustee shall
also comply with the prudent investor rule set forth in IC 30-4-3.5. The
trustee may contract with investment management professionals,
investment advisors, and legal counsel to assist in the investment of the
trust and may pay the state expenses incurred under those contracts
from the trust.
(c) IC 4-9.1-1-8 and IC 4-9.1-1-9 do not apply to a trust established
under this chapter.
(d) Money in the trust at the end of a state fiscal year does not revert
to the state general fund.
SOURCE: IC 8-14-17-4; (12)IN0127.1.99. -->
SECTION 99. IC 8-14-17-4, AS ADDED BY P.L.203-2007,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 4. (a) The alternative transportation construction
fund is established for the purpose of:
(1) funding projects under IC 8-15.7 for passenger and freight
railroad systems as described in IC 8-15.7-2-14(a)(4); and
(2) funding distributions under section 5 of this chapter.
(b) The fund shall be administered by the department.
(c) Notwithstanding IC 5-13, the treasurer of state shall invest the
money in the fund not currently needed to meet the obligations of the
fund in the same manner as money is invested by the Indiana public
employees' retirement fund system under IC 5-10.3-5. However, the
treasurer of state may not invest the money in the fund in equity
securities. The treasurer of state may contract with investment
management professionals, investment advisers, and legal counsel to
assist in the investment of the fund and may pay the state expenses
incurred under those contracts from the fund. Interest that accrues from
these investments shall be deposited in the fund.
(d) The fund consists of the following:
(1) Appropriations to the fund.
(2) Gifts, grants, loans, bond proceeds, and other money received
for deposit in the fund.
(3) Payments made to the authority or the department from
operators under IC 8-15.7 concerning passenger and freight
railroad systems as described in IC 8-15.7-2-14(a)(4).
(4) Interest, premiums, or other earnings on the fund.
(e) The fund is considered a trust fund for purposes of IC 4-9.1-1-7.
Money may not be transferred, assigned, or otherwise removed from
the fund by the state board of finance, the budget agency, or any other
state agency.
(f) Money in the fund at the end of a state fiscal year does not revert
to the state general fund.
(g) Money in the fund must be appropriated by the general assembly
to be available for expenditure.
SOURCE: IC 15-11-10-3; (12)IN0127.1.100. -->
SECTION 100. IC 15-11-10-3, AS ADDED BY P.L.2-2008,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 3. (a) The tobacco farmers and rural community
impact fund is established. The fund shall be administered by the
director. The fund consists of:
(1) amounts, if any, that another statute requires to be distributed
to the fund from the Indiana tobacco master settlement agreement
fund;
(2) appropriations to the fund from other sources;
(3) grants, gifts, and donations intended for deposit in the fund;
and
(4) interest that accrues from money in the fund.
(b) The expenses of administering the fund shall be paid from
money in the fund.
(c) Notwithstanding IC 5-13, the treasurer of state shall invest the
money in the fund not currently needed to meet the obligations of the
fund in the same manner as money is invested by the Indiana public
employees retirement fund system under IC 5-10.3-5. The treasurer of
state may contract with investment management professionals,
investment advisers, and legal counsel to assist in the management of
the fund and may pay the state expenses incurred under those contracts.
(d) Money in the fund at the end of the state fiscal year does not
revert to the state general fund and remains available for expenditure.
SOURCE: IC 16-22-3-11; (12)IN0127.1.101. -->
SECTION 101. IC 16-22-3-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 11. A governing board
may do the following:
(1) Adopt an employee benefit program that may include a
vacation policy and employee discounts.
(2) Authorize expenditure of hospital funds for payment of
advertising and placement fees for personnel and physicians.
(3) Expend hospital funds in an amount not to exceed one-half
percent (0.5%) of hospital revenues for the preceding calendar
year for a program that directly contributes to the productivity or
morale of personnel, volunteers, or physicians. However, this
subdivision does not apply to:
(A) an employee benefit program under subdivision (1); or
(B) an employee compensation arrangement, including a
productivity bonus.
(4) Adopt a plan that provides for hospital employee sickness or
accident disability and contract for and purchase insurance plans
from an insurance company licensed to transact business in
Indiana.
(5) Contract for and purchase adequate pension and retirement
plans for hospital personnel from the
Indiana public
employees'
retirement fund of Indiana system or from any company
authorized to do such business in Indiana.
(6) Enter into deferred compensation agreements with employees
and other contractual personnel and fund deferred obligations by
contracting with insurance companies licensed to transact
business in Indiana.
(7) Expend hospital funds to pay dues of the executive director
and department heads for memberships in local, state, or national
hospital or professional associations or organizations that the
board determines are of direct benefit to the hospital.
(8) Establish and operate employee registries for part-time or
temporary hospital employees.
(9) Pay a part or all of the costs of these plans out of hospital
funds.
(10) Expend hospital funds for reasonable expenses incurred by
persons and their spouses who are interviewed for employment or
for medical staff appointment and for reasonable moving
expenses for the persons and their spouses if employed or
appointed to the hospital medical staff.
(11) Expend hospital funds, advance tuition payments, or
establish a tuition refund program for the education or
professional improvement of nurses and other professional or
technical employees of the hospital for inservice training and
attending seminars or other special courses of instruction when
the board determines that the expenditures directly benefit the
hospital.
(12) Conduct business in a state adjacent to Indiana.
SOURCE: IC 20-24-6-7; (12)IN0127.1.102. -->
SECTION 102. IC 20-24-6-7, AS AMENDED BY P.L.234-2007,
SECTION 226, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 7. (a) A charter school may
participate in any of the following:
(1) The Indiana state teachers' retirement fund in accordance with
IC 5-10.4.
(2) The public employees' retirement fund in accordance with
IC 5-10.3.
(3) Another employee pension or retirement fund.
(b) Except as provided in subsection (e), a person who teaches in a
charter school is a member of the Indiana state teachers' retirement
fund. Service in a charter school is creditable service for purposes of
IC 5-10.4.
(c) Except as provided in subsection (e), a person who:
(1) is a local school employee of a charter school; and
(2) is not eligible to participate in the Indiana state teachers'
retirement fund;
is a member of the public employees' retirement fund.
(d) The boards of the Indiana state teachers' retirement fund and
board of trustees of the Indiana public employees' retirement fund
system shall implement this section through the organizer of the
charter school, subject to and conditioned upon receiving any approvals
either the board considers appropriate from the Internal Revenue
Service and the United States Department of Labor.
(e) Charter school employees may participate in a private pension
or retirement program, if the organizer of the charter school offers the
opportunity to participate in the program.
SOURCE: IC 20-26-4-1; (12)IN0127.1.103. -->
SECTION 103. IC 20-26-4-1, AS ADDED BY P.L.1-2005,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 1. (a) As used in this section, "electronic funds
transfer" means a transfer of funds, other than a transaction originated
by check, draft, or similar paper instrument, that is initiated through an
electronic terminal, telephone, or computer or magnetic tape to order,
instruct, or authorize a financial institution to debit or credit an
account.
(b) The governing body of each school corporation shall organize by
electing:
(1) a president;
(2) a vice president; and
(3) a secretary;
each of whom is a different member, not more than fifteen (15) days
after the commencement date of the members' terms of office, as
provided in section 4 of this chapter.
(c) A governing body shall, at the time that officers are elected
under subsection (b), appoint a treasurer of the governing body and of
the school corporation who is a person, other than the superintendent
of schools, who is not a member of the governing body. The treasurer
may, with the approval of the governing body, appoint a deputy who
must be a person, other than the superintendent of schools, who is not
a member of the governing body and who has the same powers and
duties as the treasurer, or lesser duties as provided by the governing
body by rule.
(d) The treasurer is the official custodian of all funds of the school
corporation and is responsible for the proper safeguarding and
accounting for the funds. The treasurer shall:
(1) issue a receipt for money received by the treasurer;
(2) deposit money described in subdivision (1) in accordance with
the laws governing the deposit of public funds; and
(3) issue all warrants in payment of expenses lawfully incurred on
behalf of the school corporation. However, except as otherwise
provided by law, warrants described in this subdivision must be
issued only after proper allowance or approval by the governing
body. The governing body may not require an allowance or
approval for amounts lawfully due in payment of indebtedness or
payments due the state, the United States government, or agencies
and instrumentalities of the state or the United States government.
A verification, other than a properly itemized invoice, may not be
required for any claim of one hundred dollars ($100) or less. A claim
that exceeds one hundred dollars ($100) is sufficient as to form if the
bill or statement for the claim has printed or stamped on the face of the
bill or statement a verification of the bill or statement in language
approved by the state board of accounts.
(e) Notwithstanding subsection (d), a treasurer may transact school
corporation financial business with a financial institution or a public
retirement fund through the use of electronic funds transfer. The
treasurer must provide adequate documentation to the governing body
of transfers made under this subsection. This subsection applies only
to agreements for joint investment of money under IC 5-13-9 and to
payments to the Indiana public retirement system for:
(1) the Indiana state teachers' retirement fund; or
(2) the public employees' retirement fund;
from participating employers.
(f) A treasurer is not personally liable for an act or omission
occurring in connection with the performance of the duties set forth in
this section, unless the act or omission constitutes gross negligence or
an intentional disregard of the treasurer's duties.
(g) A governing body may establish the position of executive
secretary to the governing body. The executive secretary:
(1) must be an employee of the school corporation;
(2) may not be a member of the governing body; and
(3) must be appointed by the governing body upon the
recommendation of the superintendent of the school corporation.
The governing body shall determine the duties of the executive
secretary, which may include all or part of the duties of the secretary of
the board.
SOURCE: IC 33-38-6-23; (12)IN0127.1.104. -->
SECTION 104. IC 33-38-6-23, AS AMENDED BY P.L.13-2011,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 23. (a) The board of trustees of the
Indiana public
employees' retirement
fund system (referred to as "the system" in
this section) shall administer the fund, which may be commingled for
investment purposes with the public employees' retirement fund for
investment purposes. any public pension and retirement fund
administered by the system.
(b) The board shall do the following:
(1) Determine eligibility for and make payments of benefits under
IC 33-38-7 and IC 33-38-8.
(2) In accordance with the powers and duties granted it in
IC 5-10.3-3-7, IC 5-10.3-3-7.1, IC 5-10.3-3-8, and IC 5-10.3-5-3
through IC 5-10.3-5-6, IC 5-10.5-4, and IC 5-10.5-6, administer
the fund.
(3) Provide by rule for the implementation of this chapter and
IC 33-38-7 and IC 33-38-8.
(4) Authorize deposits.
(c) A determination by the board may be appealed under the
procedures in IC 4-21.5.
(d) The powers and duties of:
(1) the director and the actuary of the board; and
(2) the attorney general;
with respect to the fund are those specified in IC 5-10.3-3, and
IC 5-10.3-4, IC 5-10.5-4, and IC 5-10.5-6.
(e) The board may hire additional personnel, including hearing
officers, to assist it in the implementation of this chapter.
(f) Fund records of individual participants and participants'
information are confidential, except for the name and years of service
of a fund participant.
SOURCE: IC 33-38-6.9-1; (12)IN0127.1.105. -->
SECTION 105. IC 33-38-6.9-1, AS ADDED BY P.L.220-2011,
SECTION 541, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 1. As used in this chapter, "board"
refers to the board of trustees of the Indiana public employees'
retirement fund. system.
SOURCE: IC 33-39-7-11; (12)IN0127.1.106. -->
SECTION 106. IC 33-39-7-11, AS AMENDED BY P.L.13-2011,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 11. (a) The board shall administer the fund, which
may be commingled with
any public pension and retirement fund
administered by the
Indiana public
employees' retirement
fund
system for investment purposes.
(b) The board shall do the following:
(1) Determine eligibility for and make payments of benefits under
this chapter.
(2) In accordance with the powers and duties granted the board in
IC 5-10.3-3-7, IC 5-10.3-3-7.1,
IC 5-10.3-3-8, and IC 5-10.3-5-3
through IC 5-10.3-5-6, IC 5-10.5-4, and IC 5-10.5-6, administer
the fund.
(3) Provide by rule for the implementation of this chapter.
(4) Authorize deposits.
(c) A determination by the board may be appealed under IC 4-21.5.
(d) The powers and duties of:
(1) the director and the actuary of the board; and
(2) the attorney general;
with respect to the fund are those specified in IC 5-10.3-3, and
IC 5-10.3-4, IC 5-10.5-4, and IC 5-10.5-6.
(e) The board may hire additional personnel, including hearing
officers, to assist in the implementation of this chapter.
(f) Fund records of individual participants and participants'
information are confidential, except for the name and years of service
of a fund participant.
SOURCE: IC 34-13-3-20; (12)IN0127.1.107. -->
SECTION 107. IC 34-13-3-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 20. (a) A political
subdivision may purchase insurance to cover the liability of itself or its
employees, including a member of a board, a committee, a commission,
an authority, or another instrumentality of a governmental entity. Any
liability insurance so purchased shall be purchased by invitation to and
negotiation with providers of insurance and may be purchased with
other types of insurance. If such a policy is purchased, the terms of the
policy govern the rights and obligations of the political subdivision and
the insurer with respect to the investigation, settlement, and defense of
claims or suits brought against the political subdivision or its
employees covered by the policy. However, the insurer may not enter
into a settlement for an amount that exceeds the insurance coverage
without the approval of the mayor, if the claim or suit is against a city,
or the governing body of any other political subdivision, if the claim or
suit is against such political subdivision.
(b) The state may not purchase insurance to cover the liability of the
state or its employees. This subsection does not prohibit any of the
following:
(1) The requiring of contractors to carry insurance.
(2) The purchase of insurance to cover losses occurring on real
property owned by:
(A) the
Indiana public
employees' retirement
fund or the
Indiana state teachers' retirement fund. system; or
(B) a public pension and retirement fund administered by
the Indiana public retirement system.
(3) The purchase of insurance by a separate body corporate and
politic to cover the liability of itself or its employees.
(4) The purchase of casualty and liability insurance for foster
parents (as defined in IC 27-1-30-4) on a group basis.
SOURCE: IC 35-33-8-3.2; (12)IN0127.1.108. -->
SECTION 108. IC 35-33-8-3.2, AS AMENDED BY P.L.94-2010,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 3.2. (a) A court may admit a defendant to bail and
impose any of the following conditions to assure the defendant's
appearance at any stage of the legal proceedings, or, upon a showing
of clear and convincing evidence that the defendant poses a risk of
physical danger to another person or the community, to assure the
public's physical safety:
(1) Require the defendant to:
(A) execute a bail bond with sufficient solvent sureties;
(B) deposit cash or securities in an amount equal to the bail;
(C) execute a bond secured by real estate in the county, where
thirty-three hundredths (0.33) of the true tax value less
encumbrances is at least equal to the amount of the bail;
(D) post a real estate bond; or
(E) perform any combination of the requirements described in
clauses (A) through (D).
If the court requires the defendant to deposit cash or cash and
another form of security as bail, the court may require the
defendant and each person who makes the deposit on behalf of the
defendant to execute an agreement that allows the court to retain
all or a part of the cash to pay publicly paid costs of
representation and fines, costs, fees, and restitution that the court
may order the defendant to pay if the defendant is convicted. The
defendant must also pay the fee required by subsection (d).
(2) Require the defendant to execute:
(A) a bail bond by depositing cash or securities with the clerk
of the court in an amount not less than ten percent (10%) of
the bail; and
(B) an agreement that allows the court to retain all or a part of
the cash or securities to pay fines, costs, fees, and restitution
that the court may order the defendant to pay if the defendant
is convicted.
A portion of the deposit, not to exceed ten percent (10%) of the
monetary value of the deposit or fifty dollars ($50), whichever is
the lesser amount, may be retained as an administrative fee. The
clerk shall also retain from the deposit under this subdivision
fines, costs, fees, and restitution as ordered by the court, publicly
paid costs of representation that shall be disposed of in
accordance with subsection (b), and the fee required by
subsection (d). In the event of the posting of a real estate bond,
the bond shall be used only to insure the presence of the
defendant at any stage of the legal proceedings, but shall not be
foreclosed for the payment of fines, costs, fees, or restitution. The
individual posting bail for the defendant or the defendant
admitted to bail under this subdivision must be notified by the
sheriff, court, or clerk that the defendant's deposit may be
forfeited under section 7 of this chapter or retained under
subsection (b).
(3) Impose reasonable restrictions on the activities, movements,
associations, and residence of the defendant during the period of
release.
(4) Except as provided in section 3.6 of this chapter, require the
defendant to refrain from any direct or indirect contact with an
individual and, if the defendant has been charged with an offense
under IC 35-46-3, any animal belonging to the individual,
including if the defendant has not been released from lawful
detention.
(5) Place the defendant under the reasonable supervision of a
probation officer, pretrial services agency, or other appropriate
public official. If the court places the defendant under the
supervision of a probation officer or pretrial services agency, the
court shall determine whether the defendant must pay the pretrial
services fee under section 3.3 of this chapter.
(6) Release the defendant into the care of a qualified person or
organization responsible for supervising the defendant and
assisting the defendant in appearing in court. The supervisor shall
maintain reasonable contact with the defendant in order to assist
the defendant in making arrangements to appear in court and,
where appropriate, shall accompany the defendant to court. The
supervisor need not be financially responsible for the defendant.
(7) Release the defendant on personal recognizance unless:
(A) the state presents evidence relevant to a risk by the
defendant:
(i) of nonappearance; or
(ii) to the physical safety of the public; and
(B) the court finds by a preponderance of the evidence that the
risk exists.
(8) Require a defendant charged with an offense under IC 35-46-3
to refrain from owning, harboring, or training an animal.
(9) Impose any other reasonable restrictions designed to assure
the defendant's presence in court or the physical safety of another
person or the community.
(b) Within thirty (30) days after disposition of the charges against
the defendant, the court that admitted the defendant to bail shall order
the clerk to remit the amount of the deposit remaining under subsection
(a)(2) to the defendant. The portion of the deposit that is not remitted
to the defendant shall be deposited by the clerk in the supplemental
public defender services fund established under IC 33-40-3.
(c) For purposes of subsection (b), "disposition" occurs when the
indictment or information is dismissed or the defendant is acquitted or
convicted of the charges.
(d) Except as provided in subsection (e), the clerk of the court shall:
(1) collect a fee of five dollars ($5) from each bond or deposit
required under subsection (a)(1); and
(2) retain a fee of five dollars ($5) from each deposit under
subsection (a)(2).
The clerk of the court shall semiannually remit the fees collected under
this subsection to the board of trustees of the Indiana public
employees' retirement fund system for deposit in the special death
benefit fund. The fee required by subdivision (2) is in addition to the
administrative fee retained under subsection (a)(2).
(e) With the approval of the clerk of the court, the county sheriff
may collect the bail posted under this section. The county sheriff shall
remit the bail to the clerk of the court by the following business day
and remit monthly the five dollar ($5) special death benefit fee to the
county auditor.
(f) When a court imposes a condition of bail described in subsection
(a)(4):
(1) the clerk of the court shall comply with IC 5-2-9; and
(2) the prosecuting attorney shall file a confidential form
prescribed or approved by the division of state court
administration with the clerk.
SOURCE: IC 36-8-3.2-2; (12)IN0127.1.109. -->
SECTION 109. IC 36-8-3.2-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 2. A person who is an
applicant to become a firefighter or police officer must, before being
hired, be certified by the local board to the board of trustees of the
Indiana public employees' retirement fund (PERF) system as having
passed the minimum agility and aptitude tests outlined in this chapter.
SOURCE: IC 36-8-5-2; (12)IN0127.1.110. -->
SECTION 110. IC 36-8-5-2, AS AMENDED BY P.L.130-2008,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 2. (a) The police chief or fire chief may be granted
a leave of absence by the authority who appointed the police chief or
fire chief. This appointing authority may also grant a leave of absence
to any other full-time, fully paid police officer or firefighter.
(b) A leave of absence under subsection (a) shall be granted for
service in the Indiana general assembly. A leave of absence under
subsection (a) may also be granted for service in any other elected
office or for one (1) of the following reasons:
(1) Sickness.
(2) Disability.
(3) Sabbatical purposes.
However, a leave of absence because of disability may not be granted
to a member of the 1977 fund under this subsection unless a leave
granted under subsection (g) has expired without disability benefits
having been paid from the 1977 fund. In the case of such an expiration,
a leave for purposes of disability may be granted under this subsection
but only until the member's eligibility for disability benefits is finally
determined.
(c) Before a leave of absence may be granted for sabbatical
purposes, the member must submit a written request explaining and
justifying the leave to the appointing authority. Sabbatical purposes
must be related to the improvement of the member's professional
performance and skills, such as education, special training, work
related experience, and exchange programs.
(d) This subsection applies to leaves of absence granted under
subsection (b)(1), (b)(2), or (b)(3). A leave of absence may extend for
a period of not more than one (1) year, determined by the appointing
authority, and may be renewed upon written request of the member.
(e) This subsection applies to leaves of absence granted for service
in an elected office. A police officer or firefighter who serves in the
general assembly shall be granted a leave for the time spent in this
service, including the time spent for committee or legislative council
meetings. A police officer or firefighter who serves in any other elected
office may be granted a leave for the time spent in this service. Leave
for service in an elected office does not diminish a police officer's or
firefighter's rights under the police officer's or firefighter's retirement
or pension fund, except as provided in section 10 of this chapter, or
advancement on the police officer's or firefighter's department salary
schedule. For these purposes, the police officer or firefighter is, despite
the leave, considered to be a member of the department during that
time.
(f) This subsection applies to leaves of absence granted under
subsection (b)(1), (b)(2), or (b)(3). A member on leave may receive
compensation in an amount determined by the appointing authority, up
to a maximum amount that equals the member's salary before the leave
began.
(g) This subsection applies only to members of the 1977 fund. The
local board may grant a leave of absence for purposes of disability to
full-time, fully paid police officers or firefighters (including the police
chief or fire chief). The leave is subject to the following conditions:
(1) The police chief or fire chief must make a written
determination that there is no suitable and available work on the
appropriate department for which the fund member is or may be
capable of becoming qualified.
(2) The leave must be approved by the local board after a hearing
conducted under IC 36-8-8-12.7.
(3) The leave may not begin until the police officer or firefighter
has exhausted all paid leave for sickness.
(4) The leave shall continue until disability benefits are paid from
the 1977 fund. However, the leave may not continue for more
than six (6) months.
(5) During the leave, the police officer or firefighter is entitled to
receive compensation in an amount equal to fifty percent (50%)
of the salary of a first class patrolman or first class firefighter on
the date the leave begins.
Payments of compensation under this subsection may not be made from
the 1925 fund, the 1937 fund, the 1953 fund, or the 1977 fund.
(h) Determinations under subsection (g) are not reviewable by the
board of trustees of the Indiana public employees' retirement fund
system.
(i) This subsection applies to leaves of absence granted under
subsection (a) or (b). An appointing authority shall establish a policy
in writing that specifies whether a police officer or firefighter is
entitled, during a leave of absence, to participate in any promotional
process or earn seniority. A policy established under this subsection is
subject to a department's existing disciplinary procedures. An
appointing authority shall reinstate a police officer or firefighter
returning from a leave at the merit or permanent rank determined under
the policy established under this subsection. However, except as
otherwise provided by federal law, an appointing authority is not
required to reinstate a police officer or firefighter in the job that the
police officer or firefighter held at the time the police officer's or
firefighter's leave began.
SOURCE: IC 36-8-6-20; (12)IN0127.1.111. -->
SECTION 111. IC 36-8-6-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 20. (a) As used in this
section, "dies in the line of duty" has the meaning set forth in section
10.1 of this chapter.
(b) A special death benefit of seventy-five thousand dollars
($75,000) for a fund member who dies in the line of duty before
January 1, 1998, and one hundred fifty thousand dollars ($150,000) for
a fund member who dies in the line of duty after December 31, 1997,
shall be paid in a lump sum by the Indiana public employees'
retirement fund system from the pension relief fund established under
IC 5-10.3-11 to the following relative of a fund member who dies in the
line of duty:
(1) To the surviving spouse.
(2) If there is no surviving spouse, to the surviving children (to be
shared equally).
(3) If there is no surviving spouse and there are no surviving
children, to the parent or parents in equal shares.
(c) The benefit provided by this section is in addition to any other
benefits provided under this chapter.
SOURCE: IC 36-8-7-26; (12)IN0127.1.112. -->
SECTION 112. IC 36-8-7-26 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 26. (a) As used in this
section, "dies in the line of duty" has the meaning set forth in section
12.4 of this chapter.
(b) A special death benefit of seventy-five thousand dollars
($75,000) for a fund member who dies in the line of duty before
January 1, 1998, and one hundred fifty thousand dollars ($150,000) for
a fund member who dies in the line of duty after December 31, 1997,
shall be paid in a lump sum by the Indiana public employees'
retirement fund system from the pension relief fund established under
IC 5-10.3-11 to the following relative of a fund member who dies in the
line of duty:
(1) To the surviving spouse.
(2) If there is no surviving spouse, to the surviving children (to be
shared equally).
(3) If there is no surviving spouse and there are no surviving
children, to the parent or parents in equal shares.
(c) The benefit provided by this section is in addition to any other
benefits provided under this chapter.
SOURCE: IC 36-8-7.5-22; (12)IN0127.1.113. -->
SECTION 113. IC 36-8-7.5-22 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 22. (a) As used in this
section, "dies in the line of duty" has the meaning set forth in section
14.1 of this chapter.
(b) A special death benefit of seventy-five thousand dollars
($75,000) for a fund member who dies in the line of duty before
January 1, 1998, and one hundred fifty thousand dollars ($150,000) for
a fund member who dies in the line of duty after December 31, 1997,
shall be paid in a lump sum by the Indiana public employees'
retirement fund system from the pension relief fund established under
IC 5-10.3-11 to the following relative of a fund member who dies in the
line of duty:
(1) To the surviving spouse.
(2) If there is no surviving spouse, to the surviving children (to be
shared equally).
(3) If there is no surviving spouse and there are no surviving
children, to the parent or parents in equal shares.
(c) The benefit provided by this section is in addition to any other
benefits provided under this chapter.
SOURCE: IC 36-8-8-2.3; (12)IN0127.1.114. -->
SECTION 114. IC 36-8-8-2.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 2.3. As used in this chapter,
"system board" refers to the board of trustees of the Indiana
public retirement system established by IC 5-10.5-3-1.
SOURCE: IC 36-8-8-2.5; (12)IN0127.1.115. -->
SECTION 115. IC 36-8-8-2.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 2.5. (a) As used in this
chapter, "Internal Revenue Code":
(1) means the Internal Revenue Code of 1954, as in effect on
September 1, 1974, if permitted with respect to governmental
plans; or
(2) to the extent not inconsistent with subdivision (1), has the
meaning set forth in IC 6-3-1-11.
(b) The 1977 fund shall satisfy the qualification requirements in
Section 401 of the Internal Revenue Code, as applicable to the 1977
fund. In order to meet those requirements, the 1977 fund is subject to
the following provisions, notwithstanding any other provision of this
chapter:
(1) The
PERF system board shall distribute the corpus and
income of the 1977 fund to members and their beneficiaries in
accordance with this chapter.
(2) No part of the corpus or income of the 1977 fund may be used
or diverted to any purpose other than the exclusive benefit of the
members and their beneficiaries.
(3) Forfeitures arising from severance of employment, death, or
for any other reason may not be applied to increase the benefits
any member would otherwise receive under this chapter.
(4) If the 1977 fund is terminated, or if all contributions to the
1977 fund are completely discontinued, the rights of each affected
member to the benefits accrued at the date of the termination or
discontinuance, to the extent then funded, are nonforfeitable.
(5) All benefits paid from the 1977 fund shall be distributed in
accordance with the requirements of Section 401(a)(9) of the
Internal Revenue Code and the regulations under that section. In
order to meet those requirements, the 1977 fund is subject to the
following provisions:
(A) The life expectancy of a member, the member's spouse, or
the member's beneficiary shall not be recalculated after the
initial determination, for purposes of determining benefits.
(B) If a member dies before the distribution of the member's
benefits has begun, distributions to beneficiaries must begin
no later than December 31 of the calendar year immediately
following the calendar year in which the member died.
(C) The amount of an annuity paid to a member's beneficiary
may not exceed the maximum determined under the incidental
death benefit requirement of the Internal Revenue Code.
(6) The PERF system board may not:
(A) determine eligibility for benefits;
(B) compute rates of contribution; or
(C) compute benefits of members or beneficiaries;
in a manner that discriminates in favor of members who are
considered officers, supervisors, or highly compensated, as
prohibited under Section 401(a)(4) of the Internal Revenue Code.
(7) Benefits paid under this chapter may not exceed the maximum
benefit specified by Section 415 of the Internal Revenue Code.
(8) The salary taken into account under this chapter may not
exceed the applicable amount under Section 401(a)(17) of the
Internal Revenue Code.
(9) The trustee may not engage in a transaction prohibited by
Section 503(b) of the Internal Revenue Code.
SOURCE: IC 36-8-8-3; (12)IN0127.1.116. -->
SECTION 116. IC 36-8-8-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 3. (a) If a town
establishes a board of metropolitan police commissioners, or if a town
becomes a city, the municipality shall participate in the 1977 fund.
However, if a police officer or former marshal is a member of the
public employees' retirement fund,
he the police officer or former
marshal may continue as a member of that fund instead of the 1977
fund. Notwithstanding the age requirements under section 7(a) of this
chapter, a police officer or former marshal employed by a municipality
at the time the municipality enters the 1977 fund under this section
shall be a member of the 1977 fund unless the police officer or former
marshal elects to continue as a member of the public employees'
retirement fund. A person may become a member of the 1977 fund
under this subsection without meeting the age limitation under section
7(a) of this chapter only if the person satisfies:
(1) any aptitude, physical agility, or physical and mental standards
established by a local board under IC 36-8-3.2; and
(2) the minimum standards that are:
(A) adopted by the PERF system board under section 19 of
this chapter; and
(B) in effect on the date the person becomes a member of the
1977 fund.
Credit for prior service of a person who becomes a member of the 1977
fund under this subsection shall be determined under section 18 or 18.1
of this chapter. No service credit beyond that allowed under section 18
or 18.1 of this chapter may be recognized under the 1977 fund.
(b) If a unit did not establish a 1937 fund for its firefighters, the unit
may participate in the public employees' retirement fund or it may
participate in the 1977 fund. If a unit established a 1937 fund for its
firefighters, the unit is and shall remain a participant in the 1977 fund.
(c) A unit that:
(1) has not established a pension fund for its firefighters; or
(2) is participating in the public employees' retirement fund under
subsection (b);
may participate in the 1977 fund upon approval by the fiscal body,
notwithstanding IC 5-10.3-6-8. A unit that participates in the 1977 fund
under this subsection must comply with section 21 of this chapter.
However, if a firefighter is a member of the public employees'
retirement fund, the firefighter may continue as a member of that fund
instead of the 1977 fund.
SOURCE: IC 36-8-8-4; (12)IN0127.1.117. -->
SECTION 117. IC 36-8-8-4, AS AMENDED BY P.L.23-2011,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 4. (a) There is established a police officers' and
firefighters' pension and disability fund to be known as the 1977 fund.
The 1977 fund consists of fund member and employer contributions,
plus the earnings on them, to be used to make benefit payments to fund
members and their survivors in the amounts and under the conditions
specified in this chapter.
(b) The
board of trustees of the Indiana public retirement system
(referred to in this chapter as the "system board") system board shall
administer the 1977 fund, which may be commingled
for investment
purposes with
other funds administered by the
Indiana public
employees' retirement
fund for investment purposes. system. All
actuarial data shall be computed on the total membership of the fund,
and the cost of participation is the same for all employers in the fund.
The fund member and employer contributions shall be recorded
separately for each employer.
(c) Any reference or cross-reference to the 1977 fund advisory
committee in the Indiana Code shall be treated after June 30, 2011, as
a reference or cross-reference to the system board.
SOURCE: IC 36-8-8-5; (12)IN0127.1.118. -->
SECTION 118. IC 36-8-8-5, AS AMENDED BY P.L.99-2010,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 5. (a) The PERF system board shall:
(1) determine eligibility for and make payments of benefits,
except as provided in section 12 of this chapter;
(2) in accordance with the powers and duties granted it in
IC 5-10.3-3-7, IC 5-10.3-3-8, and IC 5-10.3-5-3 through
IC 5-10.3-5-6, IC 5-10.5-4, and IC 5-10.5-5, administer the 1977
fund;
(3) provide by rule for the implementation of this chapter; and
(4) authorize deposits.
(b) A determination by the PERF system board may be appealed
under the procedures in IC 4-21.5.
(c) The powers and duties of the director and appointed by the
system board, the actuary of the PERF system board, and the attorney
general, and the auditor of state, with respect to the 1977 fund, are
those specified in IC 5-10.3-3, and IC 5-10.3-4, and IC 5-10.5.
(d) The PERF system board may hire additional personnel,
including hearing officers, to assist it in the implementation of this
chapter.
(e) The 1977 fund records of individual members and membership
information are confidential, except for the name and years of service
of a 1977 fund member.
SOURCE: IC 36-8-8-6; (12)IN0127.1.119. -->
SECTION 119. IC 36-8-8-6, AS AMENDED BY P.L.13-2011,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 6. (a) Each employer shall annually on March 31,
June 30, September 30, and December 31, for the calendar quarters
ending on those dates, or an alternate date established by the rules of
the PERF system board, pay into the 1977 fund an amount determined
by the PERF system board:
(1) for administration expenses; and
(2) sufficient to maintain level cost funding during the period of
employment on an actuarial basis for members hired after April
30, 1977.
(b) After December 31, 2011, each employer shall submit the
payments required by subsection (a) by electronic funds transfer.
(c) If an employer fails to make the payments required by subsection
(a) or fails to send the fund members' contributions required by section
8(a) of this chapter, the amount payable, on request of the PERF
system board, may be withheld by the auditor of state from money
payable to the employer and transferred to the fund. In the alternative,
the amount payable may be recovered in the circuit or superior court of
the county in which the employer is located, in an action by the state on
the relation of the PERF system board, prosecuted by the attorney
general.
SOURCE: IC 36-8-8-7; (12)IN0127.1.120. -->
SECTION 120. IC 36-8-8-7, AS AMENDED BY P.L.1-2006,
SECTION 575, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 7. (a) Except as provided in
subsections (d), (e), (f), (g), (h), (k), (l), and (m):
(1) a police officer; or
(2) a firefighter;
who is less than thirty-six (36) years of age and who passes the baseline
statewide physical and mental examinations required under section 19
of this chapter shall be a member of the 1977 fund and is not a member
of the 1925 fund, the 1937 fund, or the 1953 fund.
(b) A police officer or firefighter with service before May 1, 1977,
who is hired or rehired after April 30, 1977, may receive credit under
this chapter for service as a police officer or firefighter prior to entry
into the 1977 fund if the employer who rehires the police officer or
firefighter chooses to contribute to the 1977 fund the amount necessary
to amortize the police officer's or firefighter's prior service liability over
a period of not more than forty (40) years, the amount and the period
to be determined by the
PERF system board. If the employer chooses
to make the contributions, the police officer or firefighter is entitled to
receive credit for the police officer's or firefighter's prior years of
service without making contributions to the 1977 fund for that prior
service. In no event may a police officer or firefighter receive credit for
prior years of service if the police officer or firefighter is receiving a
benefit or is entitled to receive a benefit in the future from any other
public pension plan with respect to the prior years of service.
(c) Except as provided in section 18 of this chapter, a police officer
or firefighter is entitled to credit for all years of service after April 30,
1977, with the police or fire department of an employer covered by this
chapter.
(d) A police officer or firefighter with twenty (20) years of service
does not become a member of the 1977 fund and is not covered by this
chapter, if the police officer or firefighter:
(1) was hired before May 1, 1977;
(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both
of which were repealed September 1, 1981); and
(3) is rehired after April 30, 1977, by the same employer.
(e) A police officer or firefighter does not become a member of the
1977 fund and is not covered by this chapter if the police officer or
firefighter:
(1) was hired before May 1, 1977;
(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both
of which were repealed September 1, 1981);
(3) was rehired after April 30, 1977, but before February 1, 1979;
and
(4) was made, before February 1, 1979, a member of a 1925,
1937, or 1953 fund.
(f) A police officer or firefighter does not become a member of the
1977 fund and is not covered by this chapter if the police officer or
firefighter:
(1) was hired by the police or fire department of a unit before May
1, 1977;
(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both
of which were repealed September 1, 1981);
(3) is rehired by the police or fire department of another unit after
December 31, 1981; and
(4) is made, by the fiscal body of the other unit after December
31, 1981, a member of a 1925, 1937, or 1953 fund of the other
unit.
If the police officer or firefighter is made a member of a 1925, 1937, or
1953 fund, the police officer or firefighter is entitled to receive credit
for all the police officer's or firefighter's years of service, including
years before January 1, 1982.
(g) As used in this subsection, "emergency medical services" and
"emergency medical technician" have the meanings set forth in
IC 16-18-2-110 and IC 16-18-2-112. A firefighter who:
(1) is employed by a unit that is participating in the 1977 fund;
(2) was employed as an emergency medical technician by a
political subdivision wholly or partially within the department's
jurisdiction;
(3) was a member of the public employees' retirement fund during
the employment described in subdivision (2); and
(4) ceased employment with the political subdivision and was
hired by the unit's fire department due to the reorganization of
emergency medical services within the department's jurisdiction;
shall participate in the 1977 fund. A firefighter who participates in the
1977 fund under this subsection is subject to sections 18 and 21 of this
chapter.
(h) A police officer or firefighter does not become a member of the
1977 fund and is not covered by this chapter if the individual was
appointed as:
(1) a fire chief under a waiver under IC 36-8-4-6(c); or
(2) a police chief under a waiver under IC 36-8-4-6.5(c);
unless the executive of the unit requests that the 1977 fund accept the
individual in the 1977 fund and the individual previously was a
member of the 1977 fund.
(i) A police matron hired or rehired after April 30, 1977, and before
July 1, 1996, who is a member of a police department in a second or
third class city on March 31, 1996, is a member of the 1977 fund.
(j) A park ranger who:
(1) completed at least the number of weeks of training at the
Indiana law enforcement academy or a comparable law
enforcement academy in another state that were required at the
time the park ranger attended the Indiana law enforcement
academy or the law enforcement academy in another state;
(2) graduated from the Indiana law enforcement academy or a
comparable law enforcement academy in another state; and
(3) is employed by the parks department of a city having a
population of more than one hundred twenty thousand (120,000)
but less than one hundred fifty thousand (150,000);
is a member of the fund.
(k) Notwithstanding any other provision of this chapter, a police
officer or firefighter:
(1) who is a member of the 1977 fund before a consolidation
under IC 36-3-1-5.1 or IC 36-3-1-6.1;
(2) whose employer is consolidated into the consolidated law
enforcement department or the fire department of a consolidated
city under IC 36-3-1-5.1 or IC 36-3-1-6.1; and
(3) who, after the consolidation, becomes an employee of the
consolidated law enforcement department or the consolidated fire
department under IC 36-3-1-5.1 or IC 36-3-1-6.1;
is a member of the 1977 fund without meeting the requirements under
sections 19 and 21 of this chapter.
(l) Notwithstanding any other provision of this chapter, if:
(1) before a consolidation under IC 8-22-3-11.6, a police officer
or firefighter provides law enforcement services or fire protection
services for an entity in a consolidated city;
(2) the provision of those services is consolidated into the law
enforcement department or fire department of a consolidated city;
and
(3) after the consolidation, the police officer or firefighter
becomes an employee of the consolidated law enforcement
department or the consolidated fire department under
IC 8-22-3-11.6;
the police officer or firefighter is a member of the 1977 fund without
meeting the requirements under sections 19 and 21 of this chapter.
(m) A police officer or firefighter who is a member of the 1977 fund
under subsection (k) or (l) may not be:
(1) retired for purposes of section 10 of this chapter; or
(2) disabled for purposes of section 12 of this chapter;
solely because of a change in employer under the consolidation.
SOURCE: IC 36-8-8-7.2; (12)IN0127.1.121. -->
SECTION 121. IC 36-8-8-7.2, AS ADDED BY P.L.180-2007,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 7.2. (a) This section applies to an individual:
(1) who becomes a member of the 1977 fund under section 7(h)
of this chapter;
(2) whose appointment as a fire chief or police chief ends after
June 30, 2007; and
(3) who is not eligible to receive a benefit from the 1977 fund at
the end of the individual's appointment as a fire chief or police
chief.
(b) A fund member described in subsection (a) may elect:
(1) to receive the fund member's contributions to the 1977 fund
under section 8 of this chapter; or
(2) to transfer the fund member's service credit earned as a fire
chief or police chief to PERF under subsection (c).
(c) If a fund member makes the election described in subsection
(b)(2), the
PERF system board shall:
(1) grant to the fund member service credit in PERF for all
service earned as a fire chief or police chief in the 1977 fund; and
(2) transfer from the 1977 fund to PERF:
(A) the fund member's contributions made during the fund
member's appointment as a fire chief or police chief to the
1977 fund; plus
(B) the present value of the unreduced benefit that would be
payable to the transferring fund member upon retirement
under section 10 of this chapter.
(d) The
PERF system board shall deposit the amounts transferred
to PERF under subsection (c) as follows:
(1) The fund member's contributions to the 1977 fund shall be
credited to the fund member's PERF annuity savings account.
(2) The present value of the unreduced benefit that would be
payable to the transferring fund member upon retirement under
section 10 of this chapter shall be credited to PERF's retirement
allowance account.
(e) For a fund member who makes the election described in
subsection (b)(2), all credit for service as a fire chief or police chief in
the 1977 fund is waived.
SOURCE: IC 36-8-8-8; (12)IN0127.1.122. -->
SECTION 122. IC 36-8-8-8, AS AMENDED BY P.L.13-2011,
SECTION 17, AND AS AMENDED BY P.L.16-2011, SECTION 13,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 8. (a) Each fund member shall
contribute during the period of the fund member's employment or for
thirty-two (32) years, whichever is shorter, an amount equal to six
percent (6%) of the salary of a first class patrolman or firefighter.
However, the employer may pay all or a part of the contribution for the
member. The amount of the contribution, other than contributions paid
on behalf of a member, shall be deducted each pay period from each
fund member's salary by the disbursing officer of the employer. The
employer shall send to the PERF system board each year on March 31,
June 30, September 30, and December 31, for the calendar quarters
ending on those dates, or an alternate date established by the rules of
the PERF system board, a certified list of fund members and a warrant
issued by the employer for the total amount deducted for fund
members' contributions.
(b) After December 31, 2011, an employer shall submit:
(1) the list described in subsection (a) in a uniform format
through a secure connection over the Internet or through other
electronic means specified by the PERF system board; and
(2) the contributions paid by or on behalf of a member under
subsection (a) by electronic funds transfer.
(b) (c) 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 system 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 system 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 system board.
SOURCE: IC 36-8-8-8.3; (12)IN0127.1.123. -->
SECTION 123. IC 36-8-8-8.3, AS ADDED BY P.L.19-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 8.3. (a) This section applies to a fund member
who, after June 30, 2009, completes service for which the 1977 fund
gives credit.
(b) A fund member may purchase not more than two (2) years of
service credit for the fund member's service on active duty in the armed
services if the fund member meets the following conditions:
(1) The fund member has at least one (1) year of credited service
in the fund.
(2) The fund member serves on active duty in the armed services
of the United States for at least six (6) months.
(3) The fund member receives an honorable discharge from the
armed services.
(4) Before the fund member retires, the fund member makes
contributions to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The salary of a first class patrolman or firefighter at the
time the fund member actually makes a contribution for the
service credit.
(ii) A rate, determined by the actuary of the 1977 fund, that
is based on the age of the fund member at the time the fund
member actually makes a contribution for service credit and
that is computed to result in a contribution amount that
approximates the actuarial present value of the retirement
benefit attributable to the service credit purchased.
(iii) The number of years of service credit the fund member
intends to purchase.
(B) Contributions for any accrued interest, at a rate determined
by the actuary of the 1977 fund, for the period from the fund
member's initial membership in the 1977 fund to the date
payment is made by the fund member.
(c) A fund member must have at least twenty (20) years of service
before a fund member may receive a benefit based on a service credit
purchased under this section. A fund member's years of service may not
exceed thirty-two (32) years with the inclusion of the service credit
purchased under this section.
(d) A fund member may not receive service credit under this
section:
(1) for service credit received under IC 36-8-5-7; or
(2) if the military service for which the fund member requests
credit also qualifies the fund member for a benefit in a military or
another governmental retirement system.
(e) A fund member who:
(1) terminates service before satisfying the eligibility
requirements necessary to receive a retirement benefit payment
from the 1977 fund; or
(2) receives a retirement benefit for the same service from another
retirement system, other than under the federal Social Security
Act;
may withdraw the fund member's contributions made under this section
plus accumulated interest after submitting to the fund a properly
completed application for a refund.
(f) The following apply to the purchase of service credit under this
section:
(1) The PERF system board may allow a fund member to make
periodic payments of the contributions required for the purchase
of the service credit. The PERF system board shall determine the
length of the period during which the payments must be made.
(2) The PERF system 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 fund member may not claim the service credit for purposes
of determining eligibility or computing benefits unless the fund
member has made all payments required for the purchase of the
service credit.
(g) To the extent permitted by the Internal Revenue Code and
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing service credit under this section, 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
a 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 408(b) of the Internal Revenue Code.
(h) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing service credit under this section, 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.
SOURCE: IC 36-8-8-8.5; (12)IN0127.1.124. -->
SECTION 124. IC 36-8-8-8.5, AS ADDED BY P.L.70-2010,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 8.5. (a) This section applies to a fund member
who, after June 30, 2010, completes service for which the 1977 fund
gives credit.
(b) As used in this section, "public retirement fund" refers to any of
the following, either singly or collectively:
(1) The public employees' retirement fund (IC 5-10.3).
(2) The Indiana state teachers' retirement fund (IC 5-10.4).
(3) The state excise police, gaming agent, gaming control officer,
and conservation enforcement officers' retirement fund
(IC 5-10-5.5).
(4) The state police pension trust (IC 10-12).
(5) A sheriff's pension trust (IC 36-8-10-12).
(c) Subject to this section, a fund member may purchase service
credit for the fund member's prior service in a position covered by a
public retirement fund.
(d) To purchase the service credit described in subsection (c), a fund
member must meet the following requirements:
(1) The fund member has at least one (1) year of creditable
service in the 1977 fund.
(2) The fund member has not attained vested status in and is not
an active member in the public retirement fund from which the
fund member is purchasing service credit.
(3) Before the fund member retires, the fund member makes
contributions to the 1977 fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The salary of a first class patrolman or firefighter at the
time the fund member actually makes a contribution for the
service credit.
(ii) A rate, determined by the actuary for the 1977 fund, that
is based on the age of the fund member at the time the fund
member actually makes a contribution for the service credit
and that is computed to result in a contribution amount that
approximates the actuarial present value of the retirement
benefit attributable to the service credit purchased.
(iii) The number of years of service credit the fund member
intends to purchase.
(B) Contributions for any accrued interest, at a rate determined
by the actuary for the 1977 fund, for the period from the fund
member's initial membership in the 1977 fund to the date
payment is made by the fund member.
(e) At the request of the fund member purchasing service credit
under this section, the amount a fund member is required to contribute
under subsection (d)(3) may be reduced by a trustee to trustee transfer
from the public retirement fund in which the fund member has an
account that contains amounts attributable to member contributions
(plus any credited earnings) to the 1977 fund. The fund member may
direct the transfer of an amount only to the extent necessary to fund the
service purchase under subsection (d)(3). The fund member shall
complete any forms required by the public retirement fund from which
the fund member is requesting a transfer or the 1977 fund before the
transfer is made.
(f) A fund member must have at least twenty (20) years of service
in the 1977 fund before a fund member may receive a retirement
benefit based on service credit purchased under this section. A fund
member's years of service may not exceed thirty-two (32) years with
the inclusion of the service credit purchased under this section.
(g) A fund member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a retirement benefit payment
from the 1977 fund; or
(2) receives a retirement benefit for the same service from another
tax supported governmental retirement plan other than the federal
Social Security Act;
may withdraw the fund member's contributions made under this section
plus accumulated interest after submitting a properly completed
application for a refund to the 1977 fund.
(h) The following apply to the purchase of service credit under this
section:
(1) The
PERF system board may allow a fund member to make
periodic payments of the contributions required for the purchase
of the service credit. The
PERF system board shall determine the
length of the period during which the payments may be made.
(2) The
PERF system 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 fund member may not claim the service credit for purposes
of determining eligibility or computing benefits unless the fund
member has made all payments required for the purchase of the
service credit.
(i) To the extent permitted by the Internal Revenue Code and
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing service credit under this section, a rollover
of a distribution from any of the following:
(1) A qualified plan described in Section 401(a) or 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
a 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 408(b) of the Internal Revenue Code.
(j) To the extent permitted by the Internal Revenue Code and
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing service credit under this section, 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.
(k) The fund member's employer may pay all or a part of the fund
member's contributions required for the purchase of service credit
under this section. In that event, the actuary shall determine the
amortization, and subsections (g), (h)(1), (h)(3), and (i) do not apply.
SOURCE: IC 36-8-8-8.8; (12)IN0127.1.125. -->
SECTION 125. IC 36-8-8-8.8, AS ADDED BY P.L.88-2010,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 8.8. (a) This section applies to a fund member
who, after June 30, 2010, completes service for which the 1977 fund
gives credit.
(b) As used in this section, "out-of-state service" means service in
another state in a comparable position for which the fund member
would receive service credit in the 1977 fund if the service had been
performed in Indiana.
(c) Subject to subsections (d) through (g), a fund member may
purchase out-of-state service credit if the fund member meets the
following requirements:
(1) The fund member has at least one (1) year of credited service
in the 1977 fund.
(2) Before the fund member retires, the fund member makes
contributions to the 1977 fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The salary of a first class patrolman or firefighter at the
time the fund member makes a contribution for the service
credit.
(ii) A rate, determined by the actuary for the 1977 fund, that
is based on the age of the fund member at the time the fund
member makes a contribution for the service credit and that
is computed to result in a contribution amount that
approximates the actuarial present value of the retirement
benefit attributable to the service credit purchased.
(iii) The number of years of out-of-state service credit the
fund member intends to purchase.
(B) Contributions for any accrued interest, at a rate determined
by the actuary for the 1977 fund, for the period from the fund
member's initial membership in the 1977 fund to the date
payment is made by the fund member.
(3) The fund member has received verification from the 1977
fund that the out-of-state service is, as of the date payment is
made by the fund member, valid.
(d) A fund member must have at least twenty (20) years of service
before the fund member may receive a benefit based on service credit
purchased under this section. A fund member's years of service may not
exceed thirty-two (32) years with the inclusion of service credit
purchased under this section.
(e) A fund member may not receive service credit under this section
if the service for which the fund member requests credit also qualifies
the fund member for a benefit in another governmental retirement
system.
(f) A fund member who:
(1) terminates service before satisfying the eligibility
requirements necessary to receive a retirement benefit payment
from the 1977 fund; or
(2) receives a retirement benefit for the same service from another
retirement system, other than under the federal Social Security
Act;
may withdraw the fund member's contributions made under this section
plus accumulated interest after submitting to the 1977 fund a properly
completed application for a refund.
(g) The following apply to the purchase of service credit under this
section:
(1) The
PERF system board may allow a fund member to make
periodic payments of the contributions required for the purchase
of the service credit. The
PERF system board shall determine the
length of the period during which the payments must be made.
(2) The
PERF system 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) The fund member may not claim the service credit for
purposes of determining eligibility or computing benefits unless
the fund member has made all payments required for the purchase
of the service credit.
(h) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing service credit under this section, 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
a 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 408(b) of the Internal Revenue Code.
(i) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing service credit under this section, 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.
SOURCE: IC 36-8-8-11.5; (12)IN0127.1.126. -->
SECTION 126. IC 36-8-8-11.5, AS ADDED BY P.L.130-2008,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 11.5. (a) Not less than thirty (30) days after a fund
member retires from a position covered by this chapter, the fund
member may:
(1) be rehired by the same unit that employed the fund member in
a position covered by this chapter for a position not covered by
this chapter; and
(2) continue to receive the fund member's retirement benefit
under this chapter.
(b) This section may be implemented unless the PERF system board
receives from the Internal Revenue Service a determination that
prohibits the implementation.
SOURCE: IC 36-8-8-12; (12)IN0127.1.127. -->
SECTION 127. IC 36-8-8-12, AS AMENDED BY P.L.13-2011,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 12. (a) Benefits paid under this section are subject
to sections 2.5 and 2.6 of this chapter.
(b) If an active fund member has a covered impairment, as
determined under sections 12.3 through 13.1 of this chapter, the
member is entitled to receive the benefit prescribed by section 13.3 or
13.5 of this chapter. A member who has had a covered impairment and
returns to active duty with the department shall not be treated as a new
applicant seeking to become a member of the 1977 fund.
(c) If a retired fund member who has not yet reached the member's
fifty-second birthday is found by the
PERF system board to be
permanently or temporarily unable to perform all suitable work for
which the member is or may be capable of becoming qualified, the
member is entitled to receive during the disability the retirement
benefit payments payable at fifty-two (52) years of age. During a
reasonable period in which a fund member with a disability is
becoming qualified for suitable work, the member may continue to
receive disability benefit payments. However, benefits payable for
disability under this subsection are reduced by amounts for which the
fund member is eligible from:
(1) a plan or policy of insurance providing benefits for loss of
time because of disability;
(2) a plan, fund, or other arrangement to which the fund member's
employer has contributed or for which the fund member's
employer has made payroll deductions, including a group life
policy providing installment payments for disability, a group
annuity contract, or a pension or retirement annuity plan other
than the fund established by this chapter;
(3) the federal Social Security Act (42 U.S.C. 401 et seq.), the
Railroad Retirement Act (45 U.S.C. 231 et seq.), the United States
Department of Veterans Affairs, or another federal, state, local, or
other governmental agency;
(4) worker's compensation payable under IC 22-3; and
(5) a salary or wage, including overtime and bonus pay and extra
or additional remuneration of any kind, the fund member receives
or is entitled to receive from the member's employer.
For the purposes of this subsection, a retired fund member is
considered eligible for benefits from subdivisions (1) through (5)
whether or not the member has made application for the benefits.
(d) Notwithstanding any other law, a plan, policy of insurance, fund,
or other arrangement:
(1) delivered, issued for delivery, amended, or renewed after
April 9, 1979; and
(2) described in subsection (c)(1) or (c)(2);
may not provide for a reduction or alteration of benefits as a result of
benefits for which a fund member may be eligible from the 1977 fund
under subsection (c).
(e) Time spent receiving disability benefits, not to exceed twenty
(20) years, is considered active service for the purpose of determining
retirement benefits. A fund member's retirement benefit shall be based
on:
(1) the member's years of active service; plus
(2) if applicable, the period, not to exceed twenty (20) years,
during which the member received disability benefits.
(f) A fund member who is receiving disability benefits:
(1) under section 13.3(d) of this chapter; or
(2) based on a determination under this chapter that the fund
member has a Class 3 impairment;
shall be transferred from disability to regular retirement status when the
member becomes fifty-two (52) years of age.
(g) A fund member who is receiving disability benefits:
(1) under section 13.3(c) of this chapter; or
(2) based on a determination under this chapter that the fund
member has a Class 1 or Class 2 impairment;
is entitled to receive a disability benefit for the remainder of the fund
member's life in the amount determined under the applicable sections
of this chapter.
SOURCE: IC 36-8-8-12.3; (12)IN0127.1.128. -->
SECTION 128. IC 36-8-8-12.3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 12.3. (a) Upon a
request from a fund member or from the safety board of the appropriate
police or fire department, the local board shall conduct a hearing under
section 12.7 of this chapter to determine whether the fund member has
a covered impairment.
(b) A covered impairment is an impairment that permanently or
temporarily makes a fund member unable to perform the essential
function of the member's duties, considering reasonable
accommodation to the extent required by the Americans with
Disabilities Act, with the police or fire department. However, a covered
impairment does not include an impairment:
(1) resulting from an intentionally self-inflicted injury or
attempted suicide while sane or insane;
(2) resulting from the fund member's commission or attempted
commission of a felony;
(3) that begins within two (2) years after a fund member's entry or
reentry into active service with the department and that was
caused or contributed to by a mental or physical condition that
manifested itself before the fund member entered or reentered
active service. Notwithstanding this subdivision, a fund member
may not be required to satisfy more than one (1) such two (2) year
period for the same mental or physical condition; or
(4) that is occasioned, in whole or in part, by the fund member
currently engaging (as defined in 29 CFR 1630.3, Appendix) in
any of the following:
(A) Use of a controlled substance (as defined in the Controlled
Substances Act (21 U.S.C. 812)).
(B) Unlawful use of a prescription drug.
(c) Notwithstanding subsection (b), this subsection applies to the
following:
(1) A fund member who is hired after March 1, 1992.
(2) A fund member who was admitted to the 1977 fund after
having been covered by another public pension plan as a police
officer or firefighter.
For a fund member who is determined by the PERF system board to
have a Class 3 excludable condition under IC 36-8-8-13.6, a covered
impairment does not include an impairment that would be classified as
a Class 3 impairment that begins at any time after the fund member's
entry or reentry into active service with the department and is related
in any manner to the Class 3 excludable condition.
(d) If the local board determines that a covered impairment exists,
the chief of the police or fire department shall submit to the local board
written determinations of the following:
(1) Whether there is suitable and available work on the
appropriate department for which the fund member is or may be
capable of becoming qualified, considering reasonable
accommodation to the extent required by the Americans with
Disabilities Act.
(2) For a fund member covered by sections 12.5 and 13.5 of this
chapter, the fund member's years of service with the department.
SOURCE: IC 36-8-8-12.4; (12)IN0127.1.129. -->
SECTION 129. IC 36-8-8-12.4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 12.4. A fund member
who is hired for the first time before January 1, 1990, may choose to be
covered by sections 12.5 and 13.5 of this chapter (instead of section
13.3 of this chapter) if the fund member files an election with the PERF
system board before January 1, 1991. However, an election may not be
filed after the fund member has a covered impairment. An election
filed under this section is irrevocable.
SOURCE: IC 36-8-8-12.7; (12)IN0127.1.130. -->
SECTION 130. IC 36-8-8-12.7, AS AMENDED BY P.L.29-2006,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 12.7. (a) This section applies to hearings
conducted by local boards concerning determinations of impairment
under this chapter or of disability under IC 36-8-5-2(g), IC 36-8-6,
IC 36-8-7, and IC 36-8-7.5.
(b) At least five (5) days before the hearing, the local board shall
give notice to the fund member and the safety board of the time, date,
and place of the hearing.
(c) The local board must hold a hearing not more than ninety (90)
days after the fund member requests the hearing.
(d) At the hearing, the local board shall permit the fund member and
the safety board to:
(1) be represented by any individual;
(2) through witnesses and documents, present evidence;
(3) conduct cross-examination; and
(4) present arguments.
(e) At the hearing, the local board shall require all witnesses to be
examined under oath, which may be administered by a member of the
local board.
(f) The local board shall, at the request of the fund member or the
safety board, issue:
(1) subpoenas;
(2) discovery orders; and
(3) protective orders;
in accordance with the Indiana Rules of Trial Procedure that govern
discovery, depositions, and subpoenas in civil actions.
(g) The local board shall have the hearing recorded so that a
transcript may be made of the proceedings.
(h) After the hearing, the local board shall make its determinations,
including findings of fact, in writing and shall provide copies of its
determinations to the fund member and the safety board not more than
thirty (30) days after the hearing.
(i) If the local board:
(1) does not hold a hearing within the time required under
subsection (c); or
(2) does not issue its determination within the time required under
subsection (h);
the fund member shall be considered to be totally impaired for
purposes of section 13.5 of this chapter and, if the issue before the local
board concerns the class of the member's impairment, the member shall
be considered to have a Class 1 impairment. The PERF system board
shall review an impairment determined under this subsection as
provided in section 13.1 of this chapter.
(j) The local board may on its own motion issue:
(1) subpoenas;
(2) discovery orders; and
(3) protective orders;
in accordance with the Indiana Rules of Trial Procedure that govern
discovery, depositions, and subpoenas in civil actions.
(k) At the hearing, the local board may exclude evidence that is
irrelevant, immaterial, unduly repetitious, or excludable on the basis of
evidentiary privilege recognized by the courts.
(l) At the hearing, the local board may request the testimony of
witnesses and the production of documents.
(m) If a subpoena or order is issued under this section, the party
seeking the subpoena or order shall serve it in accordance with the
Indiana Rules of Trial Procedure. However, if the subpoena or order is
on the local board's own motion, the sheriff of the county in which the
subpoena or order is to be served shall serve it. A subpoena or order
under this section may be enforced in the circuit or superior court of
the county in which the subpoena or order is served.
(n) With respect to a hearing conducted for purposes of determining
disability under IC 36-8-6, IC 36-8-7, or IC 36-8-7.5, the determination
of the local board after a hearing is final and may be appealed to the
court.
(o) With respect to a hearing conducted for purposes of determining
impairment or class of impairment under this chapter, the fund member
may appeal the local board's determinations. An appeal under this
subsection:
(1) must be made in writing;
(2) must state the class of impairment and the degree of
impairment that is claimed by the fund member;
(3) must include a written determination by the chief of the police
or fire department stating that there is no suitable and available
work; and
(4) must be filed with the local board and the PERF system
board's director no later than thirty (30) days after the date on
which the fund member received a copy of the local board's
determinations.
(p) To the extent required by the Americans with Disabilities Act,
the transcripts, records, reports, and other materials generated as a
result of a hearing, review, or appeal conducted to determine an
impairment under this chapter or a disability under IC 36-8-6,
IC 36-8-7, or IC 36-8-7.5 must be:
(1) retained in the separate medical file created for the member;
and
(2) treated as a confidential medical record.
(q) If a local board determines that a fund member described in
section 13.3(a) of this chapter has a covered impairment, the local
board shall also make a recommendation to the 1977 fund advisory
committee system board concerning whether the covered impairment
is an impairment described in section 13.3(c) of this chapter or whether
it is an impairment described in section 13.3(d) of this chapter. The
local board shall forward its recommendation to the 1977 fund advisory
committee. system board.
(r) The 1977 fund advisory committee system board shall review
the local board's recommendation not later than forty-five (45) days
after receiving the recommendation and shall then issue an initial
determination of whether the disability is in the line of duty or not in
the line of duty. The 1977 fund advisory committee system board shall
notify the local board, the safety board, and the fund member of its
initial determination.
(s) The fund member, the safety board, or the local board may object
in writing to the 1977 fund advisory committee's system board's initial
determination under subsection (r) not later than fifteen (15) days after
the initial determination is issued. If a written objection is not filed, the
1977 fund advisory committee's system board's initial determination
becomes final. If a timely written objection is filed, the 1977 fund
advisory committee system board shall issue a final determination
after a hearing. The final determination must be issued not later than
one hundred eighty (180) days after the date of receipt of the local
board's recommendation.
SOURCE: IC 36-8-8-13.1; (12)IN0127.1.131. -->
SECTION 131. IC 36-8-8-13.1, AS AMENDED BY P.L.13-2011,
SECTION 19, AND AS AMENDED BY P.L.23-2011, SECTION 28,
IS CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2012]: Sec. 13.1. (a) If:
(1) the local board has determined under this chapter that a
covered impairment exists and the safety board has determined
that there is no suitable and available work within the department,
considering reasonable accommodation to the extent required by
the Americans with Disabilities Act; or
(2) the fund member has filed an appeal under section 12.7(o) of
this chapter;
the local board shall submit the local board's determinations and the
safety board's determinations to the PERF system board's director.
(b) Whenever a fund member is determined to have an impairment
under section 12.7(i) of this chapter, the PERF system board's director
shall initiate a review of the default award not later than sixty (60) days
after the director learns of the default award.
(c) After the PERF system board's director receives the
determinations under subsection (a) or initiates a review under
subsection (b), the fund member must submit to an examination by a
medical authority selected by the PERF system board. The authority
shall determine if there is a covered impairment. With respect to a fund
member who is covered by sections 12.5 and 13.5 of this chapter, the
authority shall determine the degree of impairment. The PERF system
board shall adopt rules under IC 4-22-2 to establish impairment
standards, such as the impairment standards contained in the United
States Department of Veterans Affairs Schedule for Rating Disabilities.
The report of the examination shall be submitted to the PERF system
board's director. If a fund member refuses to submit to an examination,
the authority may find that no impairment exists.
(d) The PERF system board's director shall review the medical
authority's report and the local board's determinations and issue an
initial determination within sixty (60) days after receipt of the local
board's determinations. The PERF system board's director shall notify
the local board, the safety board, and the fund member of the initial
determination. The following provisions apply if the PERF system
board's director does not issue an initial determination within sixty (60)
days and if the delay is not attributable to the fund member or the
safety board:
(1) In the case of a review initiated under subsection (a)(1):
(A) the determinations of the local board and the chief of the
police or fire department are considered to be the initial
determination; and
(B) for purposes of section 13.5(d) of this chapter, the fund
member is considered to be totally impaired.
(2) In the case of an appeal submitted under subsection (a)(2), the
statements made by the fund member under section 12.7(o) of this
chapter are considered to be the initial determination.
(3) In the case of a review initiated under subsection (b), the
initial determination is the impairment determined under section
12.7(i) of this chapter.
(e) The fund member, the safety board, or the local board may
object in writing to the director's initial determination within fifteen
(15) days after the determination is issued. If no written objection is
filed, the initial determination becomes the final order of the
PERF
system board. If a timely written objection is filed, the
PERF system
board shall issue the final order after a hearing.
Unless an
administrative law judge orders a waiver or an extension of the period
for cause shown, the final order shall be issued not later than one
hundred eighty (180) days after the date of receipt of the local board's
determination or the date the
PERF system board's director initiates a
review under subsection (b). The following provisions apply if a final
order is not issued within
one hundred eighty (180) days the time limit
described in this subsection and if the delay is not attributable to the
fund member or the chief of the police or fire department:
(1) In the case of a review initiated under subsection (a)(1):
(A) the determinations of the local board and the chief of the
police or fire department are considered to be the final order;
and
(B) for purposes of section 13.5(d) of this chapter, the fund
member is considered to be totally impaired.
(2) In the case of an appeal submitted under subsection (a)(2), the
statements made by the fund member under section 12.7(o) of this
chapter are considered to be the final order.
(3) In the case of a review initiated under subsection (b), the
impairment determined under section 12.7(i) of this chapter is
considered to be the final order.
(f) If the
PERF system board approves the director's initial
determination, then the
PERF system board shall issue a final order
adopting the initial determination. The local board and the chief of the
police or fire department shall comply with the initial determination.
If the
PERF system board does not approve the initial determination,
the
PERF system board may receive additional evidence on the matter
before issuing a final order.
(g) Appeals of the
PERF system board's final order may be made
under IC 4-21.5.
(h) The transcripts, records, reports, and other materials compiled
under this section must be retained in accordance with the procedures
specified in section 12.7(p) of this chapter.
SOURCE: IC 36-8-8-13.4; (12)IN0127.1.132. -->
SECTION 132. IC 36-8-8-13.4, AS ADDED BY P.L.177-2011,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 13.4. (a) This section applies only to a fund
member or survivor of a fund member who is receiving a disability
benefit under section 13.3(b) of this chapter.
(b) A fund member or survivor of a fund member described in
subsection (a) may file an application, in accordance with this section,
requesting a determination that:
(1) the member's covered impairment, as determined under
section 13.3(b) of this chapter, was:
(A) the direct result of:
(i) a personal injury that occurred while the fund member
was on duty;
(ii) a personal injury that occurred while the fund member
was off duty and was responding to an offense or a reported
offense, in the case of a police officer, or an emergency or
reported emergency for which the fund member was trained,
in the case of a firefighter; or
(iii) an occupational disease (as defined in IC 22-3-7-10),
including a duty related disease that is also included within
clause (B);
(B) a duty related disease, which for purposes of this section,
means a disease arising out of the fund member's employment.
A disease is considered to arise out of the fund member's
employment if it is apparent to the rational mind, upon
consideration of all of the circumstances, that:
(i) there is a connection between the conditions under which
the fund member's duties are performed and the disease;
(ii) the disease can be seen to have followed as a natural
incident of the fund member's duties as a result of the
exposure occasioned by the nature of the fund member's
duties; and
(iii) the disease can be traced to the fund member's
employment as the proximate cause; or
(C) a disability presumed incurred in the line of duty under
IC 5-10-13 or IC 5-10-15; or
(2) the member's covered impairment, as determined under
section 13.3(b) of this chapter, was not a covered impairment
described in subsection (b)(1).
The application must be filed with the local board that made the
determination of a covered impairment resulting in a disability benefit
under section 13.3(b) of this chapter. The application form shall be
prepared by the PERF system board or its designee and be made
available to a fund member or survivor of a fund member described in
subsection (a) upon request.
(c) A fund member or survivor of a fund member who files an
application under this section has the burden of presenting sufficient
evidence to support a finding that the member's covered impairment,
as determined under section 13.3(b) of this chapter, satisfies the
standard provided in subsection (b)(1). Such evidence may include any
documents, materials, or other evidence provided in connection with
the original hearing and determination of a covered impairment as
determined under section 13.3(b) of this chapter, including any
transcript from that proceeding. A fund member or a survivor of a fund
member may include with an application any additional probative
evidence that is relevant to the determination under subsection (b)(1).
The local board may establish reasonable procedures with respect to
the application process and may engage a medical authority to provide
opinions relevant to making its determination. The local board may
hold a hearing with respect to an application filed under this section if
the fund member or survivor of a fund member shows good cause that
documents or other probative evidence sufficient to make the showing
required under this subsection is not reasonably obtainable and that
holding a hearing would be reasonably likely to provide such probative
evidence. If the local board conducts a hearing, it shall be subject to the
provisions of section 12.7 of this chapter relating to the conduct of
hearings on the determinations of covered impairments under this
chapter.
(d) The local board shall make its recommendation, including
findings of fact, in writing and shall provide copies of its
recommendation to the fund member or survivor of the fund member
the 1977 fund advisory committee, and the PERF system board no not
later than thirty (30) days after the:
(1) filing of the application, if no hearing is held; or
(2) hearing, if held.
(e) If the local board does not issue its recommendation within the
time required under subsection (d), the member's covered impairment
shall be considered to be a covered impairment described under
subsection (b)(1) for purposes of the local board's recommendation.
(f) The 1977 fund advisory committee system board shall review
the local board's recommendation, or the considered recommendation
under subsection (e), not later than forty-five (45) days after receiving
the recommendation and shall then issue an initial determination of
whether the covered impairment is one described under subsection
(b)(1). The 1977 fund advisory committee system board shall notify
the PERF board, the local board and the fund member or survivor of
the fund member of its initial determination. and the PERF board or its
designee will issue a final determination to the local board and the fund
member or survivor of the fund member. If no objection is made to the
initial determination under subsection (g) or (h) the PERF board must
issue a final determination not later than thirty (30) days after receiving
an initial determination.
(g) The fund member or survivor of the fund member or the local
board may object in writing to the 1977 fund advisory committee's
system board's initial determination under subsection (f) not later than
fifteen (15) days after the initial determination is issued by filing an
objection with the PERF system board. If a written objection is not
filed, the 1977 advisory committee's system board's initial
determination becomes final. If a timely written objection is filed, the
PERF system board shall issue a final determination after a hearing.
Unless an administrative law judge orders a waiver or an extension of
the period for cause shown, the final determination must be issued not
later than one hundred eighty (180) days after the date of receipt of the
local board's recommendation.
(h) If the 1977 fund advisory committee system board fails to issue
an initial determination within forty-five (45) days after receiving the
local board's recommendation, the default determination on whether
the covered impairment is one described under subsection (b)(1) will
be the determination made by PERF's the system board's medical
authority. An objection to this determination may be filed in
accordance with the provisions of subsection (g).
(i) A determination that a member's covered impairment is one
described under subsection (b)(1) will apply only on a prospective
basis beginning on January 1 of the calendar year in which the
determination is made. The amount of the benefit will not be changed
as a result of this determination.
(j) A fund member or survivor of a fund member described in
subsection (a) must file an application under this section no later than
two (2) years after the date the PERF system board notifies the fund
members and survivors described in subsection (a) that the board has
received a favorable ruling from the Internal Revenue Service. The
PERF system board will provide notice of receipt of a favorable ruling
within thirty (30) days of its receipt.
(k) This section expires July 1, 2021.
SOURCE: IC 36-8-8-13.5; (12)IN0127.1.133. -->
SECTION 133. IC 36-8-8-13.5, AS AMENDED BY P.L.34-2009,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 13.5. (a) This section applies only to a fund
member who:
(1) is hired for the first time after December 31, 1989;
(2) chooses coverage by this section and section 12.5 of this
chapter under section 12.4 of this chapter; or
(3) is described in section 12.3(c)(2) of this chapter.
(b) A fund member who is determined to have a Class 1 impairment
and for whom it is determined that there is no suitable and available
work within the fund member's department, considering reasonable
accommodation to the extent required by the Americans with
Disabilities Act, is entitled to a monthly base benefit equal to forty-five
percent (45%) of the monthly salary of a first class patrolman or
firefighter in the year of the local board's determination of impairment.
(c) A fund member who is determined to have a Class 2 impairment
and for whom it is determined that there is no suitable and available
work within the fund member's department, considering reasonable
accommodation to the extent required by the Americans with
Disabilities Act, is entitled to a monthly base benefit equal to
twenty-two percent (22%) of the monthly salary of a first class
patrolman or firefighter in the year of the local board's determination
of impairment plus one-half percent (0.5%) of that salary for each year
of service, up to a maximum of thirty (30) years of service.
(d) For applicants hired before March 2, 1992, a fund member who
is determined to have a Class 3 impairment and for whom it is
determined that there is no suitable and available work within the fund
member's department, considering reasonable accommodation to the
extent required by the Americans with Disabilities Act, is entitled to a
monthly base benefit equal to the product of the member's years of
service (not to exceed thirty (30) years of service) multiplied by one
percent (1%) of the monthly salary of a first class patrolman or
firefighter in the year of the local board's determination of impairment.
(e) For applicants hired after March 1, 1992, or described in section
12.3(c)(2) of this chapter, a fund member who is determined to have a
Class 3 impairment and for whom it is determined that there is no
suitable and available work within the fund member's department,
considering reasonable accommodation to the extent required by the
Americans with Disabilities Act, is entitled to the following benefits
instead of benefits provided under subsection (d):
(1) If the fund member did not have a Class 3 excludable
condition under section 13.6 of this chapter at the time the fund
member entered or reentered the fund, the fund member is
entitled to a monthly base benefit equal to the product of the
member's years of service, not to exceed thirty (30) years of
service, multiplied by one percent (1%) of the monthly salary of
a first class patrolman or firefighter in the year of the local board's
determination of impairment.
(2) Except as provided in subdivision (5), a fund member is
entitled to receive the benefits set forth in subdivision (1) if:
(A) the fund member had a Class 3 excludable condition under
section 13.6 of this chapter at the time the fund member
entered or reentered the fund;
(B) the fund member has a Class 3 impairment that is not
related in any manner to the Class 3 excludable condition
described in clause (A); and
(C) the Class 3 impairment described in clause (B) occurs after
the fund member has completed four (4) years of service with
the employer after the date the fund member entered or
reentered the fund.
(3) Except as provided in subdivision (5), a fund member is not
entitled to a monthly base benefit for a Class 3 impairment if:
(A) the fund member had a Class 3 excludable condition under
section 13.6 of this chapter at the time the fund member
entered or reentered the fund; and
(B) the Class 3 impairment occurs before the fund member has
completed four (4) years of service with the employer after the
date the fund member entered or reentered the fund.
(4) A fund member is not entitled to a monthly base benefit for a
Class 3 impairment if:
(A) the fund member had a Class 3 excludable condition under
section 13.6 of this chapter at the time the fund member
entered or reentered the fund; and
(B) the Class 3 impairment is related in any manner to the
Class 3 excludable condition.
(5) If, during the first four (4) years of service with the employer:
(A) a fund member with a Class 3 excludable condition is
determined to have a Class 3 impairment; and
(B) the Class 3 impairment is attributable to an accidental
injury that is not related in any manner to the fund member's
Class 3 excludable condition;
the member is entitled to receive the benefits provided in
subdivision (1) with respect to the accidental injury. For purposes
of this subdivision, the local board shall make the initial
determination of whether an impairment is attributable to an
accidental injury. The local board shall forward the initial
determination to the director of the PERF system board for a final
determination by the PERF system board or the PERF system
board's designee.
(f) If a fund member is entitled to a monthly base benefit under
subsection (b), (c), (d), or (e), the fund member is also entitled to a
monthly amount that is no less than ten percent (10%) and no greater
than forty-five percent (45%) of the monthly salary of a first class
patrolman or firefighter in the year of the local board's determination
of impairment. The additional monthly amount shall be determined by
the PERF Indiana public retirement system medical authority based
on the degree of impairment.
(g) Benefits for a Class 1 impairment as determined under this
section are payable for the remainder of the fund member's life.
(h) Benefits for a Class 2 impairment are payable:
(1) for a period equal to the years of service of the member, if the
member's total disability benefit is less than thirty percent (30%)
of the monthly salary of a first class patrolman or firefighter in the
year of the local board's determination of impairment and the
member has fewer than four (4) years of service; or
(2) for the remainder of the fund member's life if the fund
member's benefit is:
(A) equal to or greater than thirty percent (30%) of the
monthly salary of a first class patrolman or firefighter in the
year of the local board's determination of impairment; or
(B) less than thirty percent (30%) of the monthly salary of a
first class patrolman or firefighter in the year of the local
board's determination of impairment if the member has at least
four (4) years of service.
(i) Benefits for a Class 3 impairment are payable:
(1) for a period equal to the years of service of the member, if the
member's total disability benefit is less than thirty percent (30%)
of the monthly salary of a first class patrolman or firefighter in the
year of the local board's determination of impairment and the
member has fewer than four (4) years of service; or
(2) until the member becomes fifty-two (52) years of age if the
member's benefit is:
(A) equal to or greater than thirty percent (30%) of the
monthly salary of a first class patrolman or firefighter in the
year of the local board's determination of impairment; or
(B) less than thirty percent (30%) of the monthly salary of a
first class patrolman or firefighter in the year of the local
board's determination of impairment if the member has at least
four (4) years of service.
(j) Upon becoming fifty-two (52) years of age, a fund member with
a Class 2 impairment determined under subsection (h)(1) is entitled to
receive the retirement benefit payable to a fund member with:
(1) twenty (20) years of service; or
(2) the total years of service (including both active service and the
period, not to exceed twenty (20) years, during which the member
received disability benefits) and salary, as of the year the member
becomes fifty-two (52) years of age, that the fund member would
have earned if the fund member had remained in active service
until becoming fifty-two (52) years of age;
whichever is greater.
(k) Upon becoming fifty-two (52) years of age, a fund member who
is receiving or has received a Class 3 impairment benefit that is:
(1) equal to or greater than thirty percent (30%) of the monthly
salary of a first class patrolman or firefighter in the year of the
local board's determination of impairment; or
(2) less than thirty percent (30%) of the monthly salary of a first
class patrolman or firefighter in the year of the local board's
determination of impairment if the member has at least four (4)
years of service;
is entitled to receive the retirement benefit payable to a fund member
with twenty (20) years of service.
(l) Notwithstanding section 12.3 of this chapter and any other
provision of this section, a member who:
(1) has had a covered impairment;
(2) recovers and returns to active service with the department; and
(3) within two (2) years after returning to active service has an
impairment that, except for section 12.3(b)(3) of this chapter,
would be a covered impairment;
is entitled to the benefit under this subsection if the impairment
described in subdivision (3) results from the same condition or
conditions (without an intervening circumstance) that caused the
covered impairment described in subdivision (1). The member is
entitled to receive the monthly disability benefit amount paid to the
member at the time of the member's return to active service plus any
adjustments under section 15 of this chapter that would have been
applicable during the member's period of reemployment.
SOURCE: IC 36-8-8-13.7; (12)IN0127.1.134. -->
SECTION 134. IC 36-8-8-13.7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 13.7. (a) No more than
once every twelve (12) months after the final determination of covered
impairment under this chapter:
(1) a petition for review of the fund member's impairment may be
filed with the local board by the fund member, the safety board,
or the PERF system board; or
(2) the local board may on its own motion seek a review of a fund
member's impairment.
(b) The review may include a review of whether a covered
impairment continues to exist, whether the degree of impairment has
changed, and any other matter considered appropriate by the local
board.
(c) The local board shall conduct a hearing under section 12.7 of
this chapter to determine the matters raised in the petition for review.
The local board's determination shall be submitted to the PERF system
board, and the procedures specified in section 13.1 of this chapter
apply.
(d) The costs of a medical examination required by the local board
shall be paid by the party who filed the petition for review.
SOURCE: IC 36-8-8-15; (12)IN0127.1.135. -->
SECTION 135. IC 36-8-8-15, AS AMENDED BY P.L.99-2010,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 15. Each year the PERF system board shall
determine if there has been an increase or decrease in the consumer
price index (United States city average) prepared by the United States
Department of Labor by comparing the arithmetic mean of the
consumer price index for January, February, and March of that year
with the arithmetic mean for the same three (3) months of the
preceding year. If there has been an increase, or a decrease, it shall be
stated as a percentage of the arithmetic mean for the preceding three
(3) month period. The percentage shall be rounded to the nearest
one-tenth of one percent (0.1%) and may not exceed three percent
(3%). If there is a percentage increase of the arithmetic mean for the
preceding three (3) month period, a fund member's or survivor's
monthly benefit, beginning with the July payment, shall be increased
by an amount equal to the June payment times the percentage increase.
However, a fund member's or survivor's monthly benefit may not be
increased under this section until July of the year following the year of
the first monthly benefit payment to the fund member or survivor. In
computing a fund member's benefit, the increase is based only on those
years for which the fund member was eligible for benefit payments
under this chapter. A monthly benefit may not be reduced if there is a
percentage decrease of the arithmetic mean for the preceding three (3)
month period.
SOURCE: IC 36-8-8-17.2; (12)IN0127.1.136. -->
SECTION 136. IC 36-8-8-17.2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 17.2. (a)
Notwithstanding any other provision of this chapter, a person receiving
a disability, retirement, or survivor monthly benefit under this chapter
may, after June 30, 2004, authorize the PERF system board to make a
deduction from the benefit.
(b) An authorization for a deduction from a disability, retirement, or
survivor monthly benefit paid under this chapter is valid only if all the
following requirements are met:
(1) The authorization is:
(A) in writing;
(B) signed personally by the person receiving the benefit;
(C) revocable at any time by the person receiving the benefit
upon written notice to the PERF system board; and
(D) agreed to in writing by the PERF system board.
(2) An executed copy of the authorization is delivered to the
PERF system board within ten (10) days after its execution.
(3) The deduction is made for a purpose described in subsection
(c).
(c) A deduction under this section may be made for the purpose of
paying any of the following:
(1) A premium on a policy of insurance for medical, surgical,
hospitalization, dental, vision, long term care, or Medicare
supplement coverage offered to retired fund members by the fund
member's former employer, the state, or the PERF system board.
(2) A pledge or contribution to a charitable or nonprofit
organization.
(3) Dues payable by the person receiving the benefit to a labor
organization of which the person is a member.
SOURCE: IC 36-8-8-18; (12)IN0127.1.137. -->
SECTION 137. IC 36-8-8-18, AS AMENDED BY P.L.13-2011,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 18. (a) Except as provided in subsection (b), if a
unit becomes a participant in the 1977 fund, credit for prior service by
police officers (including prior service as a full-time, fully paid town
marshal or full-time, fully paid deputy town marshal by a police officer
employed by a metropolitan board of police commissioners) or by
firefighters before the date of participation may be given by the
PERF
system board only if:
(1) the unit contributes to the 1977 fund the amount necessary to
amortize prior service liability over a period of not more than
forty (40) years, the amount and period to be determined by the
PERF system board; and
(2) the police officers or firefighters pay, either in a lump sum or
in a series of payments determined by the
PERF system board,
the amount that they would have contributed if they had been
members of the 1977 fund during their prior service.
If the requirements of subdivisions (1) and (2) are not met, a fund
member is entitled to credit only for years of service after the date of
participation.
(b) If a unit becomes a participant in the 1977 fund under section
3(c) of this chapter, or if a firefighter becomes a member of the 1977
fund under section 7(g) of this chapter, credit for prior service before
the date of participation or membership shall be given by the PERF
system board as follows:
(1) For a member who will accrue twenty (20) years of service
credit in the 1977 fund by the time the member reaches the
earliest retirement age under the fund at the time of the member's
date of participation in the 1977 fund, the member will be given
credit in the 1977 fund for one-third (1/3) of the member's years
of participation in PERF as a police officer, a firefighter, or an
emergency medical technician.
(2) For a member who will not accrue twenty (20) years of service
credit in the 1977 fund by the time the member reaches the
earliest retirement age under the fund at the time of the member's
date of participation in the 1977 fund, such prior service shall be
given only if:
(A) The unit contributes to the 1977 fund the amount
necessary to fund prior service liability amortized over a
period of not more than ten (10) years. The amount of
contributions must be based on the actual salary earned by a
first class firefighter at the time the unit becomes a participant
in the 1977 fund, or the firefighter becomes a member of the
1977 fund, or if no such salary designation exists, the actual
salary earned by the firefighter. The limit on credit for prior
service does not apply if the firefighter was a member of the
1937 fund or 1977 fund whose participation was terminated
due to the creation of a new fire protection district under
IC 36-8-11-5 and who subsequently became a member of the
1977 fund. A firefighter who was a member of or reentered the
1937 fund or 1977 fund whose participation was terminated
due to the creation of a new fire protection district under
IC 36-8-11-5 is entitled to full credit for prior service in an
amount equal to the firefighter's years of service before
becoming a member of or reentering the 1977 fund. Service
may only be credited for time as a full-time, fully paid
firefighter or as an emergency medical technician under
section 7(g) of this chapter.
(B) The amount the firefighter would have contributed if the
firefighter had been a member of the 1977 fund during the
firefighter's prior service must be fully paid and must be based
on the firefighter's actual salary earned during that period
before service can be credited under this section.
(C) Any amortization schedule for contributions paid under
clause (A) and contributions to be paid under clause (B) must
include interest at a rate determined by the
PERF system
board.
(3) If, at the time a unit entered the 1977 fund, the unit
contributed the amount required by subdivision (2) so that a fund
member received the maximum prior service credit allowed by
subdivision (2) and, at a later date, the earliest retirement age was
lowered, the unit may contribute to the 1977 fund on the fund
member's behalf an additional amount that is determined in the
same manner as under subdivision (2) with respect to the
additional prior service, if any, available as a result of the lower
retirement age. If the unit pays the additional amount described in
this subdivision in accordance with the requirements of
subdivision (2), the fund member shall receive the additional
service credit necessary for the fund member to retire at the lower
earliest retirement age.
(c) This subsection applies to a unit that:
(1) becomes a participant in the 1977 fund under section 3(c) of
this chapter; and
(2) is a fire protection district created under IC 36-8-11 that
includes a township or a municipality that had a 1937 fund.
A firefighter who continues uninterrupted service with a unit covered
by this subsection and who participated in the township or municipality
1937 fund is entitled to receive service credit for such service in the
1977 fund. However, credit for such service is limited to the amount
accrued by the firefighter in the 1937 fund or the amount necessary to
allow the firefighter to accrue twenty (20) years of service credit in the
1977 fund by the time the firefighter becomes fifty-two (52) years of
age, whichever is less.
(d) The unit shall contribute into the 1977 fund the amount
necessary to fund the amount of past service determined in accordance
with subsection (c), amortized over a period not to exceed ten (10)
years with interest at a rate determined by the
PERF system board.
(e) If the township or municipality has accumulated money in its
1937 fund, any amount accumulated that exceeds the present value of
all projected future benefits from the 1937 plan shall be paid by the
township or municipality to the unit for the sole purpose of making the
contributions determined in subsection (d).
(f) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the 1977 fund may accept, on behalf of a fund
member who is purchasing permissive service credit under this chapter,
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 1977 fund may accept, on behalf of a fund
member who is purchasing permissive service credit under this chapter,
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.
SOURCE: IC 36-8-8-18.1; (12)IN0127.1.138. -->
SECTION 138. IC 36-8-8-18.1, AS AMENDED BY P.L.13-2011,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 18.1. (a) As used in this section, "police officer"
includes a former full-time, fully paid town marshal or full-time, fully
paid deputy town marshal who is employed as a police officer by a
metropolitan board of police commissioners.
(b) If a unit becomes a participant in the 1977 fund and the unit
previously covered police officers, firefighters, or emergency medical
technicians in PERF, or if the employees of the unit become members
of the 1977 fund under section 7(g) of this chapter, the following
provisions apply:
(1) A minimum benefit applies to members electing to transfer or
being transferred to the 1977 fund from PERF. The minimum
benefit, payable at age fifty-two (52), for such a member equals
the actuarial equivalent of the vested retirement benefit payable
to the member upon normal retirement under IC 5-10.2-4-1 as of
the day before the transfer, based solely on:
(A) creditable service;
(B) the average of the annual compensation; and
(C) the amount credited to the annuity savings account;
of the transferring member as of the day before the transfer under
IC 5-10.2 and IC 5-10.3.
(2) The PERF system board shall transfer from PERF to the 1977
fund the amount credited to the annuity savings accounts and the
present value of the retirement benefits payable at age sixty-five
(65) attributable to the transferring members.
(3) The amount the unit and the member must contribute to the
1977 fund under section 18 of this chapter, if any service credit
is to be given under that section, will be reduced by the amounts
transferred to the 1977 fund by the PERF system board under
subdivision (2).
(4) Credit for prior service in PERF of a member as a police
officer, a firefighter, or an emergency medical technician is
waived in PERF. Any credit for that service under the 1977 fund
shall only be given in accordance with section 18 of this chapter.
(5) Credit for prior service in PERF of a member, other than as a
police officer, a firefighter, or an emergency medical technician,
remains in PERF and may not be credited under the 1977 fund.
SOURCE: IC 36-8-8-20; (12)IN0127.1.139. -->
SECTION 139. IC 36-8-8-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 20. (a) As used in this
section, "dies in the line of duty" has the meaning set forth in section
14.1 of this chapter.
(b) Benefits paid under this section are subject to section 2.5 of this
chapter.
(c) A special death benefit of seventy-five thousand dollars
($75,000) for a fund member who dies in the line of duty before
January 1, 1998, and one hundred fifty thousand dollars ($150,000) for
a fund member who dies in the line of duty after December 31, 1997,
shall be paid in a lump sum by the Indiana public employees'
retirement fund system from the pension relief fund established under
IC 5-10.3-11 to the following relative of a fund member who dies in the
line of duty:
(1) To the surviving spouse.
(2) If there is no surviving spouse, to the surviving children (to be
shared equally).
(3) If there is no surviving spouse and there are no surviving
children, to the parent or parents in equal shares.
(d) The benefit provided by this section is in addition to any other
benefits provided under this chapter.
SOURCE: IC 36-8-8-21; (12)IN0127.1.140. -->
SECTION 140. IC 36-8-8-21 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 21. (a) This section
applies to firefighters who:
(1) are employed by units that become participants in the 1977
fund under section 3(c) of this chapter; or
(2) become members of the 1977 fund under section 7(g) of this
chapter.
(b) A firefighter may become a member of the 1977 fund without
meeting the age limitation under section 7(a) of this chapter if the
firefighter satisfies:
(1) any aptitude, physical agility, or physical and mental standards
established by a local board under IC 36-8-3.2; and
(2) the minimum standards that are:
(A) adopted by the PERF system board under section 19 of
this chapter; and
(B) in effect on the date the firefighter becomes a member of
the 1977 fund.
(c) Credit for prior service of a firefighter who becomes a member
of the 1977 fund under this section shall be determined under section
18 or 18.1 of this chapter. No service credit beyond that allowed under
section 18 or 18.1 of this chapter may be recognized under the 1977
fund.
SOURCE: IC 36-8-8-22; (12)IN0127.1.141. -->
SECTION 141. IC 36-8-8-22 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 22. Nothing in this
chapter limits the discretion of the PERF system board to select an
administrative law judge under IC 4-21.5-3-9.
SOURCE: IC 36-8-8-24; (12)IN0127.1.142. -->
SECTION 142. IC 36-8-8-24, AS ADDED BY P.L.62-2010,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 24. (a) A fund member may designate one (1) or
more beneficiaries to receive in a lump sum the fund member's
contributions plus interest at a rate determined by the
PERF system
board if the fund member dies:
(1) without receiving a retirement benefit under sections 10 and
11 of this chapter;
(2) without receiving a disability benefit under section 13.3 or
13.5 of this chapter;
(3) without a survivor entitled to receive a benefit under section
13.8, 13.9, or 14.1 of this chapter; and
(4) without the
PERF system board returning the fund member's
contributions under section 8 of this chapter.
(b) A fund member who chooses to designate one (1) or more
beneficiaries under this section shall file the fund member's designation
with the
PERF system board on a form prescribed by the
PERF system
board.
(c) The PERF system board shall adopt rules to allow a fund
member who designates more than one (1) beneficiary to allocate the
contributions and interest paid in percentage increments.
(d) Whenever a fund member does not designate a beneficiary under
this section and has no survivors entitled to receive a benefit under
section 13.8, 13.9, or 14.1 of this chapter, the PERF system board shall
refund to the fund member's estate:
(1) the fund member's contributions; plus
(2) interest at a rate determined by the PERF system board.
SOURCE: IC 36-8-8.5-1.5; (12)IN0127.1.143. -->
SECTION 143. IC 36-8-8.5-1.5, AS ADDED BY P.L.51-2006,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 1.5. This chapter expires for members of the 1925
fund, the 1937 fund, or the 1953 fund on the date the authority of the
board of trustees of the Indiana public employees' retirement fund
system to distribute from the pension relief fund established under
IC 5-10.3-11-1 to units of local government (described in
IC 5-10.3-11-3) amounts determined under IC 5-10.3-11-4.7 expires.
SOURCE: IC 36-8-8.5-14; (12)IN0127.1.144. -->
SECTION 144. IC 36-8-8.5-14, AS AMENDED BY P.L.177-2011,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 14. (a) Subject to subsection (b), a member who
enters the DROP established by this chapter shall exit the DROP at the
earliest of:
(1) the member's DROP retirement date;
(2) thirty-six (36) months after the member's DROP entry date;
(3) the mandatory retirement age applicable to the member, if
any;
(4) the date the member retires because of a disability as provided
under section 16.5(d) of this chapter; or
(5) the date determined under IC 36-8-8-24.8.
(b) A member of the 1925 fund, the 1937 fund, or the 1953 fund
who enters the DROP established by this chapter must exit the DROP
on the date the authority of the board of trustees of the
Indiana public
employees' retirement
fund system to distribute from the pension relief
fund established under IC 5-10.3-11-1 to units of local government
(described in IC 5-10.3-11-3) amounts determined under
IC 5-10.3-11-4.7 expires.