Bill Text: IN SB0248 | 2013 | Regular Session | Amended
Bill Title: State employee deferred compensation contributions.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Passed) 2013-05-13 - Public Law 242 [SB0248 Detail]
Download: Indiana-2013-SB0248-Amended.html
Citations Affected: IC 5-10.
Synopsis: State employee deferred compensation contributions.
Increases to 2% the amount of a state employee's base salary
contributed during the first year the employee is automatically enrolled
in the state's deferred compensation plan (plan), if that amount is
greater than the maximum state match. (Currently, a state employee's
contribution in the first year the employee is automatically enrolled in
the plan is the greater of: (1) the maximum state match; or (2) 0.5% of
the employee's base salary.)
Effective: July 1, 2013.
January 7, 2013, read first time and referred to Committee on Pensions and Labor.
January 24, 2013, reported favorably _ Do Pass.
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A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
(b) Unless an employee notifies the state that the employee does not want to enroll in the deferred compensation plan, on day thirty-one (31) of the employee's employment:
(1) the employee is automatically enrolled in the deferred compensation plan; and
(2) the state is authorized to begin deductions as otherwise allowed under this chapter.
(c) The auditor of state shall provide written notice to an employee of the provisions of this chapter. The notice provided under this subsection must:
(1) be provided:
(A) with the employee's first paycheck; and
(B) on paper that is a color that is separate and distinct from
the color of the employee's paycheck;
(2) contain a statement concerning:
(A) the purposes of;
(B) procedures for notifying the state that the employee does
not want to enroll in;
(C) the tax consequences of; and
(D) the details of the state match for employee contribution to;
the deferred compensation plan; and
(3) list the telephone number, electronic mail address, and other
contact information for the auditor of state, who serves as plan
administrator.
(d) This subsection applies to contributions made before July 1,
2011. Notwithstanding IC 22-2-6, except as provided by subsection (g),
(h), the state shall deduct from an employee's compensation as a
contribution to the deferred compensation plan established by the state
under this chapter an amount equal to the maximum amount of any
match provided by the state on behalf of the employee to a defined
contribution plan established under section 1.5(a) of this chapter.
(e) This subsection applies to contributions made after June 30,
2011, and before July 1, 2013. Notwithstanding IC 22-2-6 and except
as provided by subsection (g), (h), during the first year an employee is
enrolled under subsection (b) in the deferred compensation plan, the
state shall deduct each pay period from the employee's compensation
as a contribution to the deferred compensation plan an amount equal
to the greater of the following:
(1) The maximum amount of any match provided by the state on
behalf of the employee to a defined contribution plan established
under section 1.5(a) of this chapter.
(2) One-half percent (0.5%) of the employee's base salary.
(f) This subsection applies to contributions made after June 30,
2013. Notwithstanding IC 22-2-6 and except as provided by
subsection (h), during the first year an employee is enrolled under
subsection (b) in the deferred compensation plan, the state shall
deduct each pay period from the employee's compensation as a
contribution to the deferred compensation plan an amount equal
to the greater of the following:
(1) The maximum amount of any match provided by the state
on behalf of the employee to a defined contribution plan
established under section 1.5(a) of this chapter.
(2) Two percent (2%) of the employee's base salary.
(f) (g) This subsection applies to a year:
(1) after the first year in which an employee is enrolled in the
deferred compensation plan; and
(2) in which the employee does not affirmatively choose a
contribution amount under subsection (g). (h).
The percentage of the employee's base salary used for the year in
subsection (e)(2) or (f)(2) to determine the employee's contribution
increases by one-half percent (0.5%) from the percentage determined
in the immediately preceding year. for five (5) years. The maximum
percentage of an employee's base salary that may be deducted under
this subsection is three percent (3%). The contribution increase occurs
on the anniversary date of the employee's enrollment in the deferred
compensation plan.
(g) (h) An employee may contribute to the deferred compensation
plan established by the state under this chapter an amount other than
the amount described in subsections (d) through (f) (g) by affirmatively
choosing to contribute:
(1) a higher amount;
(2) a lower amount; or
(3) zero (0).
