Bill Text: IN SB0228 | 2013 | Regular Session | Introduced
Bill Title: Indiana public retirement system administrative matters.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2013-05-13 - Public Law 15 [SB0228 Detail]
Download: Indiana-2013-SB0228-Introduced.html
Citations Affected: IC 5-10.2-4-7; IC 5-10.3-8; IC 5-10.4-5;
IC 5-10.5.
Synopsis: Indiana public retirement system administrative matters.
Provides that for a member of the public employees' retirement fund
(PERF) who dies after June 30, 2013, the right to receive a death
benefit from PERF vests with the designated beneficiary on file with
PERF at the time of the member's death, as is the case under current
law with the teachers' retirement fund (TRF). Provides that the board
of the Indiana public retirement system (INPRS) shall elect officers by
December 31 each year, rather than June 30 as specified in current law.
Requires that an order for restitution be issued by the sentencing court
before money may be taken from a PERF member's account to
compensate an employer for a criminal taking by the member, and
provides that money may be taken from a TRF member's account in the
same manner as with PERF. (The introduced version of this bill was
prepared by the pension management oversight commission.)
Effective: July 1, 2013.
January 7, 2013, read first time and referred to Committee on Pensions and Labor.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
(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. IC 5-10.4-5-14.5.
(f) 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).
misdemeanor conviction.
(b) The board may withhold payment of a member's contributions
and interest if the employer of the member notifies the board that
felony or misdemeanor charges accusing the member of the criminal
taking of the employer's property have been filed.
(c) The board may withhold payment of a member's contributions
and interest under subsection (b) until the final resolution of the
criminal charges.
(b) This subsection applies in the case of a member who dies after June 30, 2013. Notwithstanding a contrary collateral agreement, court order, process, attachment, or levy, the right to receive a death benefit under IC 5-10.2 or this article vests with the designated beneficiary on file with the fund at the time of the member's death. The fund shall distribute the death benefit to the designated beneficiary or the designated beneficiary's estate in accordance with IC 5-10.2 and this article.
(b) The board may withhold payment of a member's
contributions and interest if the employer of the member notifies
the board that felony or misdemeanor charges accusing the
member of the criminal taking of the employer's property have
been filed.
(c) The board may withhold payment of a member's
contributions and interest under subsection (b) until the final
resolution of the criminal charges.
(1) premiums on a group, life, hospitalization, surgical, or medical insurance plan maintained in whole or in part by a state agency; and
(2) dues to any association that proves to the board's satisfaction that the association has as members at least twenty percent (20%) of the number of retired members of the fund.
(b) An officer shall serve for one (1) year or until the officer's successor is elected and qualified.
(1) individual members of; and
(2) membership information concerning;
a public pension or retirement fund administered by the board are confidential, except for the name and years of service of a member.
(b) This section does not prohibit the board from providing fund records to an association or organization described in IC 2-3.5-4-12, IC 2-3.5-5-10, IC 5-10.3-8-10,
