Bill Text: IN SB0397 | 2010 | Regular Session | Amended
Bill Title: Indiana public retirement system.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced - Dead) 2010-02-01 - Senator Boots added as second author [SB0397 Detail]
Download: Indiana-2010-SB0397-Amended.html
Citations Affected: IC 2-3.5; IC 5-10; IC 5-10.2; IC 5-10.3; IC 5-10.4;
IC 5-10.5; IC 33-38; IC 33-39; IC 36-8; noncode.
Synopsis: Indiana public retirement system. Establishes the Indiana
public retirement system (system) to administer and manage the
following: (1) the public employees' retirement fund (PERF); (2) the
teachers' retirement fund (TRF); (3) the judges' retirement fund; (4) the
prosecuting attorneys retirement fund; (5) the state excise police,
gaming agent, gaming control officer, and conservation enforcement
officers' retirement fund; (6) the 1977 police officers' and firefighters'
pension and disability fund; (7) the legislators' retirement system; (8)
the pension relief fund; (9) the special death benefit fund; and (10) the
state employees' death benefit fund. Creates an eleven member board
of trustees for the system (board) consisting of ten members appointed
by the governor and the director of the budget agency (or designee)
serving as an ex officio voting member. Requires a trustee to complete
annually at least 12 hours of trustee education. Provides that the board's
powers and duties are the combined powers and duties of the PERF and
TRF boards. Provides that each retirement fund continues as a separate
fund managed by the board. Provides for a director of the system who
is appointed by and serves at the pleasure of the board. Requires the
director to employ managers for PERF and TRF. Allows the director to
employ managers for one or more of the other public retirement funds
of the system. Makes conforming and technical corrections. Repeals
provisions that establish the PERF and TRF boards.
Effective: May 1, 2010; July 1, 2010.
January 14, 2010, read first time and referred to Committee on Pensions and Labor.
January 28, 2010, amended, reported favorably _ Do Pass.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
(b) References in this article to the PERF board or TRF board shall be considered after April 30, 2010, to be references to the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1.
(1) "Board" refers to the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1.
(b) Records of individual participants in the retirement plan created by this chapter and participants' information are confidential, except for the name and years of service of a retirement plan participant.
(b) As used in this section, "public retirement fund" refers collectively to:
(1) the public employees' retirement fund (IC 5-10.3);
(2) the Indiana state teachers' retirement fund (IC 5-10.4);
(3) the state police pension trust (IC 10-12); and
(4) the 1977 police officers' and firefighters' pension and disability fund (IC 36-8-8).
(c) Subject to this section, a participant may purchase service credit for the participant's prior service in a position covered by a public retirement fund.
(d) To purchase the service credit described in subsection (c), a participant must meet the following requirements:
(1) The participant has at least one (1) year of creditable service in the retirement plan created by this chapter.
(2) The participant has not attained vested status in and is not an active participant in the public retirement fund from which the participant is purchasing the service credit.
(3) Before the participant retires, the participant makes contributions to the retirement plan created by this chapter as follows:
(A) Contributions that are equal to the product of the following:
(i) The participant's salary at the time the participant actually makes a contribution for the service credit.
(ii) A rate, determined by the actuary for the retirement plan created by this chapter, based on the age of the participant at the time the participant actually makes a contribution for service credit and computed to result in a contribution amount that approximates the actuarial present value of the benefit attributable to the service credit purchased.
(iii) The number of years of service credit the participant intends to purchase.
(B) Contributions for any accrued interest, at a rate determined by the actuary for the retirement plan created by this chapter, for the period from the participant's initial participation in the retirement plan created by this chapter to the date payment is made by the participant.
(e) At the request of the participant purchasing service credit under this section, the amount a participant is required to contribute under subsection (d)(3) may be reduced by a trustee to trustee transfer from a public retirement fund in which the participant has an account that contains amounts attributable to member contributions, including contributions made on behalf of a member (plus any credited earnings) to the retirement plan created by this chapter. The participant
may direct the transfer of an amount only to the extent necessary to
fund the service purchase under subsection (d)(3). The participant shall
complete any forms required by the public retirement fund from which
the participant is requesting a transfer or the retirement plan created by
this chapter before the transfer is made.
(f) At least ten (10) years of service in the retirement plan created
by this chapter is required before a participant may receive a benefit
based on service credit purchased under this section.
(g) A participant who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive an annual retirement
allowance; or
(2) receives an annual retirement allowance for the same service
from another tax supported governmental retirement plan other
than under the federal Social Security Act;
may withdraw the purchase amount plus accumulated interest after
submitting a properly completed application for a refund to the
retirement plan created by this chapter.
(h) The following may apply to the purchase of service credit under
this section:
(1) The board may allow a participant to make periodic payments
of the contributions required for the purchase of the service credit.
The board shall determine the length of the period during which
the payments must be made.
(2) The 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 participant may not claim the service credit for purposes of
determining eligibility for a benefit or computing benefits unless
the participant 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 retirement plan created by this chapter may
accept, on behalf of a participant 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.
(j) To the extent permitted by the Internal Revenue Code and
applicable regulations, the retirement plan created by this chapter may
accept, on behalf of a participant 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.
(b)
benefits for public employees and teachers. However, this article does
not prohibit a political subdivision from establishing and providing
before January 1, 1995, and continuing to provide after January 1,
1995, retirement, disability, and survivor benefits for the public
employees of the political subdivision independent of this article if the
political subdivision took action before January 1, 1995, and was not
a participant in the public employees' retirement fund on January 1,
1995, under this article or IC 5-10.3.
(1) The annuity savings account.
(2) The retirement allowance account.
(b) The board
(1) The pre-1996 account.
(2) The 1996 account.
(c) Within each account specified in subsection (b), the board
(1) The annuity savings account.
(2) The retirement allowance account.
board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1.
board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1.
(b) The fund is a trust. The board of trustees of the
(1) Appoint and fix the salary of a director.
(2) Appoint an actuary and employ or contract with employees, auditors, technical experts, legal counsel, and other service providers as it considers necessary to transact the business of the fund, without the approval of any state officer.
(3) Fix the compensation of persons:
(A) appointed or employed by the board; or
(B) who contract with the board.
(4) Establish a general office in Indianapolis for board meetings and for administrative personnel.
(5) Provide for the installation in the general office of a complete system of books, accounts including reserve accounts, and records in order to give effect to all the requirements of this article and to assure the proper operation of the fund.
(6) Provide for a report at least annually, before June 1, to each
member of the amount credited to him the member in the annuity
savings account in each investment program under IC 5-10.2-2.
(7) With the advice of the actuary, adopt actuarial tables and
compile data needed for actuarial studies which are necessary for
the fund's operation.
(8) Act on applications for benefits and claims of error filed by
members.
(9) Have the accounts of the fund audited annually by the state
board of accounts, and if the board determines that it is
advisable, have the operation of a public pension or
retirement fund of the system audited by a certified public
accounting firm.
(10) Publish for the members a synopsis of the fund's condition.
(11) Adopt a budget on a calendar year or fiscal year basis that is
sufficient, as determined by the board, to perform the board's
duties and, as appropriate and reasonable, draw upon fund assets
to fund the budget.
(12) Expend money, including income from the fund's
investments, for effectuating the fund's purposes.
(13) Establish personnel programs and policies for its employees.
(14) Submit a report of its activities each year before November
1 to the governor, the pension management oversight commission,
and the budget committee. before November 1 of each year. The
report to the pension management oversight commission must
be submitted in an electronic format under IC 5-14-6. The
report under this subdivision must set forth a complete operating
and financial statement covering its operations during the most
recent available audited fiscal year, including information on the
following:
(A) Investment performance.
(B) Investment and administrative costs as a percentage of
assets under management.
(C) Investment asset allocation strategy.
(D) Member services.
(E) Member communications.
(15) Establish a code of ethics or decide to be under the
jurisdiction and rules adopted by the state ethics commission.
(16) Submit to the auditor of state or treasurer of state
vouchers or reports necessary to claim amounts due from the
state to a public pension or retirement fund of the system
administered by the board.
FOLLOWS [EFFECTIVE MAY 1, 2010]: Sec. 8. (a) The board may
do any of the following:
(1) Establish and amend rules and regulations:
(A) for the administration and regulation of the fund and the
board's affairs; and
(B) to effectuate the powers and purposes of the board;
without adopting a rule under IC 4-22-2.
(2) Make contracts and sue and be sued as the board of trustees of
the public employees' retirement fund of Indiana. Indiana public
retirement system.
(3) Delegate duties to its employees.
(4) Enter into agreements with one (1) or more insurance
companies to provide life, hospitalization, surgical, medical,
dental, vision, long term care, or supplemental Medicare
insurance, utilizing individual or group insurance policies for
retired members of the fund, and, upon authorization of the
respective member, deduct premium payments for such policies
from the members' retirement benefits and remit the payments to
the insurance companies.
(5) Enter into agreements with one (1) or more insurance
companies to provide annuities for retired members of the fund,
and, upon a member's authorization, transfer the amount credited
to the member in the annuity savings account to the insurance
companies.
(6) For the 1977 police officers' and firefighters' pension and
disability fund, deduct from benefits paid and remit to the
appropriate entities amounts authorized by IC 36-8-8-17.2.
(7) Whenever the fund's membership is sufficiently large for
actuarial valuation, establish an employer's contribution rate for
all employers, including employers with special benefit provisions
for certain employees.
(8) Amortize prior service liability over a period of forty (40)
years or less.
(9) Recover payments made under false or fraudulent
representation.
(10) Exercise all powers necessary, convenient, or appropriate to
carry out and effectuate its public and corporate purposes and to
conduct its business.
(b) An agreement under subsection (a)(4) may be for a duration of
three (3) years.
(c) This subsection does not apply to investments of the board. A
contract under subsection (a)(2) may be for a term of not more than
five (5) years, with an ability to renew thereafter.
(d) The board's powers and the fund's powers specified in this
chapter shall be interpreted broadly to effectuate the purposes of this
chapter and may not be construed as a limitation of powers.
(b) The board shall do all the following:
(1) Act on an application for benefits.
(2) Provide the necessary forms for administering the fund.
(3) Establish records and accounts, which:
(A) provide the necessary information for an actuary's examination; and
(B) are sanctioned by the state board of accounts.
(4) Maintain individual records for each member containing the member's:
(A) name;
(B) date of birth;
(C) age at beginning service;
(D) service record;
(E) address;
(F) contributions to the fund;
(G) amounts withdrawn; and
(H) benefits paid;
and other items considered necessary.
(5) Employ or contract with employees, auditors, technical experts, legal counsel, and other service providers as the board considers necessary to transact the business of the fund without the approval of any state officer, and fix the compensation of those persons.
(6) Make rules as required to administer the fund.
(7) Publish a summary of the fund's condition.
(8) Provide for a report for each member, at least annually before June 1, of the value of the amount credited to the member in the annuity savings account in each investment program under IC 5-10.2-2.
(9) Provide for the installation in the general office of a complete system of:
(A) books;
(B) accounts, including reserve accounts; and
(C) records;
to give effect to all the requirements of this article and to ensure the proper operation of the fund.
(10) Appoint an actuary.
(11) With the advice of the actuary, adopt actuarial tables and compile data needed for actuarial studies necessary for the fund's operation.
(12) Adopt a budget on a calendar year or fiscal year basis that is sufficient, as determined by the board, to perform the board's duties and, as appropriate and reasonable, draw upon fund assets to fund the budget.
(13) Expend money, including income from the fund's investments, for effectuating the fund's purposes.
(14) Establish personnel programs and policies for the employees of the board.
(15) Submit a report of the board's activities to the governor, the pension management oversight commission, and the budget committee before November 1 of each year. The report to the pension management oversight commission must be submitted in an electronic format under IC 5-14-6. The report under this subdivision shall set forth a complete operating and financial statement covering the board's operations during the most recent available audited fiscal year, including information on the following:
(A) Investment performance.
(B) Investment and administrative costs as a percentage of assets under management.
(C) Investment asset allocation strategy.
(D) Member services.
(E) Member communications.
(16) Establish a code of ethics or decide to be under the jurisdiction and rules adopted by the state ethics commission.
(1) Without adopting a rule under IC 4-22-2, adopt and enforce rules regarding the fund's administration and the control and investment of the fund.
(2) Give bond for an employee for the fund's protection.
(3) Receive the state's share of the cost of the pension contribution from the federal government for a member on leave of absence in order to work in a federally supported educational project.
(4) Sue and be sued as the board of trustees of the Indiana
(5) Summon and examine witnesses when adjusting claims.
(6) When adjusting disability claims, require medical examinations by doctors approved or appointed by the board. Not more than two (2) examinations may be conducted in one (1) year.
(7) Conduct investigations to help determine the merit of a claim.
(8) Meet an emergency that may arise in the administration of the board's trust.
(9) Determine other matters regarding the board's trust that are not specified.
(10) Enter into agreements with an insurance company to provide life, hospitalization, surgical, medical, dental, vision, long term care, or supplemental Medicare insurance, using individual or group insurance policies for retired teachers, and deduct premium payments for the policies from the teachers' retirement benefits and remit the payments to the insurance companies when deduction is authorized by the respective retired teacher.
(11) Enter into agreements with one (1) or more insurance companies to provide annuities for retired teachers and upon a member's authorization transfer the amount credited to the member in the annuity savings account to the insurance
companies.
(12) Exercise all powers necessary, convenient, or appropriate to
carry out and effectuate the board's public and corporate purposes
and to conduct the board's business.
(13) Establish and amend rules:
(A) for the administration and regulation of the fund and the
board's affairs; and
(B) to effectuate the powers and purposes of the board;
without adopting a rule under IC 4-22-2.
(b) An agreement under subsection (a)(10) may be for a duration of
three (3) years.
(c) This subsection does not apply to:
(1) an agreement under subsection (a)(10); or
(2) investments of the board.
A contract that the board enters into under section 10(b) of this chapter
or any other provision may be for a term of not more than five (5)
years, with the ability to renew.
(d) The board's powers and the fund's powers specified in this
chapter shall be interpreted broadly to effectuate the purposes of this
chapter and may not be construed as a limitation of powers.
ARTICLE 10.5. INDIANA PUBLIC PENSION MODERNIZATION ACT
Chapter 1. Definitions
Sec. 1. The definitions in this chapter apply throughout this article.
Sec. 2. "Board" refers to the board of trustees of the system established by IC 5-10.5-3-1.
Sec. 3. "Director" refers to the director of the system.
Sec. 4. "Public employees' retirement fund" means the public employees' retirement fund established under IC 5-10.2 and IC 5-10.3.
Sec. 5. "Public pension and retirement funds of the system" means the public pension and retirement funds listed in IC 5-10.5-2-2.
Sec. 6. "System" refers to the Indiana public retirement system established by IC 5-10.5-2-1.
Sec. 7. "Teachers' retirement fund" means the Indiana state teachers' retirement fund established under IC 5-10.2 and IC 5-10.4.
Chapter 2. Indiana Public Retirement System
Sec. 1. On May 1, 2010, the Indiana public retirement system is established.
Sec. 2. The system consists of the following public pension or retirement funds:
(1) The public employees' retirement fund established under IC 5-10.2 and IC 5-10.3.
(2) The Indiana state teachers' retirement fund established under IC 5-10.2 and IC 5-10.4.
(3) The Indiana judges' retirement fund established under IC 33-38-6.
(4) The prosecuting attorneys retirement fund established under IC 33-39-7.
(5) The state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement fund established under IC 5-10-5.5.
(6) The 1977 police officers' and firefighters' pension and disability fund established under IC 36-8-8.
(7) The legislators' retirement system established under IC 2-3.5.
(8) The pension relief fund established under IC 5-10.3-11.
(9) The special death benefit fund established under IC 5-10-10.
(10) The state employees' death benefit fund established under IC 5-10-11.
Sec. 3. The system is an independent body corporate and politic. The system is not a department or agency of the state but is an independent instrumentality exercising essential government functions.
Sec. 4. For purposes of IC 34-13-2, IC 34-13-3, and IC 34-13-4, the board, the system, and all employees of the board or the system are public employees (as defined in IC 34-6-2-38). All employees of the board or a fund administered by the board who are employed within a classification covered by a labor agreement to which the state is a party shall continue to remain subject to the terms and conditions of that agreement and any successor labor agreements entered into by the state.
Sec. 5. The system shall be managed and administered by a board of trustees established under IC 5-10.5-3.
Sec. 6. Each public pension or retirement fund listed in section 2 of this chapter is a separate fund managed by the board under this article and the retirement law applicable to the public pension
or retirement fund. The obligations of the state and political
subdivisions for benefit payments are specified in the retirement
law applicable to each public pension or retirement fund.
Chapter 3. Board of Trustees
Sec. 1. (a) The board of trustees of the Indiana public retirement
system is established.
(b) The board shall manage and administer each public pension
or retirement fund that comprises the system in accordance with:
(1) this article; and
(2) the retirement law applicable to the public pension or
retirement fund.
Sec. 2. (a) The board is composed of eleven (11) trustees.
(b) Ten (10) of the trustees shall be appointed by the governor
as follows:
(1) One (1) must be a member of the public employees'
retirement fund with at least ten (10) years of creditable
service.
(2) At least two (2) of the trustees appointed by the governor
must be members of the teachers' retirement fund.
(3) One (1) must be:
(A) a:
(i) member of the public employees' retirement fund or
retired member of the public employees' retirement
fund; or
(ii) member of a collective bargaining unit of state
employees represented by a labor organization; or
(B) an individual who is:
(i) an officer or a member of a local, a national, or an
international labor union that represents state or
university employees; and
(ii) an Indiana resident.
(c) The director of the budget agency or the director's designee
is an ex officio voting member of the board. An individual
appointed under this subsection to serve as the director's designee:
(1) is subject to section 3 of this chapter; and
(2) serves as a permanent designee until replaced by the
director.
(d) In making the appointments under subsection (b)(1), the
governor may consider whether at least one (1) trustee is a retired
member of the public employees' retirement fund under subsection
(b)(3)(A)(i).
(e) The governor shall fill a vacancy on the board by
appointment not later than forty-five (45) days after the date the
vacancy occurs.
(f) During the first year after an individual's initial appointment
as a trustee and each year thereafter during which the individual
serves as a trustee, the individual shall complete at least twelve (12)
hours of trustee education, which consists of at least two (2) hours
in each of the following areas:
(1) Fiduciary duties and responsibilities of a trustee.
(2) Ethics.
(3) Governance process and procedures.
(4) Retirement plan design and administration.
(5) Investments.
(6) Actuarial principles and methods.
(g) Subject to the director's approval, each trustee is entitled to
reimbursement for reasonable expenses actually incurred in
fulfilling the educational requirements under subsection (f). The
director shall give a preference for reimbursement for in-state
training that meets the requirements under subsection (f), if
in-state training is available.
Sec. 3. (a) A trustee shall serve a term of four (4) years,
beginning on May 1 following the trustee's appointment.
(b) Whenever a trustee is appointed to fill a vacancy caused by
death or resignation, the trustee shall serve the unexpired term of
the trustee's predecessor.
(c) A trustee shall serve until the trustee's successor is appointed
and qualified.
Sec. 4. (a) The governor shall appoint to initial terms of office
under section 3 of this chapter all those individuals who, on April
30, 2010, are serving as trustees of the public employees'
retirement fund and the teachers' retirement fund. These trustees
shall serve until their term would have expired under IC 5-10.3-3-2
(repealed) and IC 5-10.4-3-2 (repealed).
(b) The initial terms of office for the individuals appointed
under subsection (a) begin May 1, 2010.
(c) This section expires January 1, 2015.
Sec. 5. (a) Each trustee shall take an oath of office. The oath
must be:
(1) subscribed to by the trustee making the oath;
(2) certified by the officer before whom the trustee takes the
oath; and
(3) filed with the secretary of state.
(b) A trustee is qualified for membership on the board when the
trustee's oath is filed with the secretary of state.
Sec. 6. (a) Each trustee is entitled to reimbursement for
necessary expenses actually incurred through service on the board.
(b) Trustee expenses shall be paid from fund assets.
Sec. 7. (a) Not later than June 30 each year, the board shall elect
a chair and vice chair from its members to serve as the officers of
the board.
(b) An officer shall serve for one (1) year or until the officer's
successor is elected and qualified.
Sec. 8. (a) The board shall hold:
(1) an annual meeting in September each year; and
(2) regular meetings at least quarterly.
(b) The board may hold special meetings:
(1) at the call of the chair; or
(2) with a written request signed by at least four (4) trustees.
(c) The board may hold its meetings at the system's general
offices or at any other place in the state that the board designates.
(d) All meetings must be open to the public in accordance with
IC 5-14-1.5.
(e) The board shall keep a record of its proceedings.
Sec. 9. (a) This section applies to any meeting of the board.
(b) A member of the board may participate in a meeting of the
board using any means of communication that permits:
(1) all other board members participating in the meeting; and
(2) all members of the public physically present at the place
where the meeting is conducted;
to simultaneously communicate with each other during the
meeting.
(c) A member of the board who participates in a meeting under
subsection (b) is considered to be present at the meeting.
(d) The memorandum of the meeting prepared under
IC 5-14-1.5-4 must also state the name of each member who:
(1) was physically present at the place where the meeting was
conducted;
(2) participated in the meeting using a means of
communication described in subsection (b); or
(3) was absent.
Sec. 10. (a) Six (6) trustees constitute a quorum for the
transaction of business.
(b) Each trustee is entitled to one (1) vote.
(c) A majority vote of the trustees appointed to the board is
required for the board to adopt a resolution or take other action at
a regular or special meeting.
Chapter 4. Board Powers and Duties
Sec. 1. The board has the powers and duties set forth in
IC 5-10.3-3-7 and IC 5-10.4-3-6.
Sec. 2. The board may exercise any of the powers or perform
any of the duties set forth in IC 5-10.3-3-8 and IC 5-10.4-3-8.
Sec. 3. The board's powers as specified in this article or the
retirement law applicable to a public pension or retirement fund
of the system:
(1) shall be interpreted broadly to accomplish the purposes of
this article or the applicable retirement law; and
(2) may not be construed as a limitation of powers.
Chapter 5. Investments
Sec. 1. The board has the powers, duties, restrictions,
limitations, and penalties in connection with the board's investment
and management of the assets of the public pension and retirement
funds of the system under the following provisions:
(1) IC 5-10.2-2-2.5.
(2) IC 5-10.2-2-13.
(3) IC 5-10.2-2-18.
(4) IC 5-10.3-3-7.1.
(5) IC 5-10.3-5-3.
(6) IC 5-10.3-5-3.1.
(7) IC 5-10.3-5-4.
(8) IC 5-10.3-5-5.
(9) IC 5-10.3-5-6.
(10) IC 5-10.4-3-7.
(11) IC 5-10.4-3-9.
(12) IC 5-10.4-3-10.
(13) IC 5-10.4-3-11.
(14) IC 5-10.4-3-12.
(15) IC 5-10.4-3-13.
(16) IC 5-10.4-3-14.
(17) IC 5-10.4-3-15.
(18) IC 5-10.4-3-16.
Sec. 2. The board's transactions under this chapter are subject
to IC 2-3.5-3-3, IC 5-10-5.5-2.5, IC 5-10.2-2-1.5, IC 33-38-6-13,
IC 33-39-7-22, and IC 36-8-8-2.5.
Chapter 6. Director; Reports and Administration
Sec. 1. (a) The director is the executive officer of the system and
is responsible for the administration of the system.
(b) The director is appointed by and serves at the pleasure of the
board.
Sec. 2. The director shall do the following:
(1) Maintain a record of the board's proceedings.
(2) Keep the books and records of the system.
(3) Deposit payments made to the system with the custodian
for the system's accounts.
(4) Sign vouchers for the payment of money from the system
as authorized by the board.
(5) Execute a corporate surety bond in an amount specified by
the board. The premium for the bond is an administrative
expense of the system.
(6) Employ:
(A) a manager for the teachers' retirement fund; and
(B) a manager for the public employees' retirement fund.
The director may employ managers for one (1) or more of the
other public pension and retirement funds of the system to
assist in the operation and administration of the applicable
public pension or retirement fund.
(7) Perform other duties as assigned by the board.
Sec. 3. (a) The board shall maintain individual records for each
member of a public pension or retirement fund of the system
administered by the board.
(b) A member's record must include at least the following
information:
(1) The member's name.
(2) Date of birth.
(3) Age at beginning service.
(4) Service record.
(5) Address.
(6) Contributions.
(7) Amounts withdrawn.
(8) Benefits paid.
Sec. 4. (a) Records of:
(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 described in IC 2-3.5-4-12, IC 2-3.5-5-10,
IC 5-10.3-8-10, IC 5-10.4-5-14, or IC 36-8-8-17.2.
Sec. 5. (a) Each public pension and retirement fund of the
system shall pay the expenses of administration attributable to that
public pension or retirement fund.
(b) The board shall:
(1) prorate the expenses of administration of the system that
cannot be attributed to a particular public pension or
retirement fund and the bond of the director among; and
(2) pay the prorated expenses from;
the public pension and retirement funds of the system.
Chapter 7. Short Title and Saving Provisions
Sec. 1. This article shall be known as and may be cited as the
Indiana public pension modernization act.
Sec. 2. (a) All powers, duties, liabilities, property, equipment,
records, rights, and contracts of the:
(1) board of trustees of the public employees' retirement fund;
and
(2) board of trustees of the teachers' retirement fund;
are transferred to or assumed by the board on May 1, 2010.
(b) The board shall provide indemnification of:
(1) the board of trustees of the public employees' retirement
fund; and
(2) the board of trustees of the teachers' retirement fund;
as necessary or appropriate in regard to any liabilities of the public
employees' retirement fund or the teachers' retirement fund
assumed by the board.
Sec. 3. Any amounts transferred under this subsection to the
system that represent balances in any fund or account of the public
employees' retirement fund or the teachers' retirement fund for the
administration of the public pension and retirement funds
administered by the public employees' retirement fund or the
teachers' retirement fund before May 1, 2010, including any
related services, shall be:
(1) deposited in a fund or account designed by the board; and
(2) used by the system for the administration of the public
pension and retirement funds of the system and related
services.
Sec. 4. The employees of the:
(1) public employees' retirement fund; and
(2) teachers' retirement fund;
become employees of the system on May 1, 2010, without change
in compensation, seniority, or benefits. An employee of the public
employees' retirement fund who is a member of the public
employees' retirement fund before May 1, 2010, and becomes an
employee of the system after April 30, 2010, remains a member of
the public employees' retirement fund after April 30, 2010. An
employee of the teachers' retirement fund who is a member of the
teachers' retirement fund before May 1, 2010, and becomes an
employee of the system after April 30, 2010, remains a member of
the teachers' retirement fund after April 30, 2010.
Sec. 5. Rules and regulations of:
(1) the public employees' retirement fund; and
(2) the teachers' retirement fund;
in effect before May 1, 2010, are considered, after April 30, 2010,
rules and regulations of the system.
Sec. 6. (a) Any reference or cross-reference to:
(1) the board of trustees of the public employees' retirement
fund; or
(2) the board of trustees of the teachers' retirement fund;
in the Indiana Code shall be treated after April 30, 2010, as a
reference or cross-reference to the board.
(b) Any reference or cross-reference to:
(1) the director of the public employees' retirement fund; or
(2) the director of the teachers' retirement fund;
in the Indiana Code shall be treated after April 30, 2010, as a
reference or cross-reference to the director.
Sec. 7. If any provision in this article conflicts with a provision
in IC 5-10.2, IC 5-10.3, or IC 5-10.4, the provisions shall be read
together to the extent possible with any conflict resolved in favor
of the provision in this article.
chapter, "board" refers to the board of trustees of the public employees'
retirement fund. Indiana public retirement system established by
IC 5-10.5-3-1.
(b) The board of trustees of the
(c) The 1977 fund advisory committee, referred to as the committee, is established. The
(1) Two (2) firefighters:
(A) each of whom must be an active or retired member of the 1937 fund or the 1977 fund; and
(B) neither of whom may be in an upper level policymaking position.
(2) Two (2) police officers:
(A) each of whom must be an active or retired member of the 1925 fund, the 1953 fund, or the 1977 fund; and
(B) neither of whom may be in an upper level policymaking position.
(3) Two (2) members, each of whom must be an executive of an employer.
(4) Two (2) members, each of whom must be a member of the legislative body of an employer.
The term of each member begins on July 1 following appointment and continues until
member for appointment under subdivision (1), (2), (3), or (4) forfeits
his the member's membership on the committee. The governor shall
appoint a person to fill a vacancy on the committee for the remainder
of the unexpired term.
(d) Each member of the committee who is not a state employee is
entitled to reimbursement for expenses actually incurred in connection
with the member's duties. Such a member is also entitled to
reimbursement for traveling expenses and other expenses actually
incurred in connection with the member's duties, as approved by the
PERF system board.
; (10)SB0397.1.26. --> SECTION 26. THE FOLLOWING ARE REPEALED [EFFECTIVE MAY 1, 2010]: IC 2-3.5-2-9; IC 2-3.5-2-13; IC 5-10.2-2-16; IC 5-10.2-2-17; IC 5-10.3-3-1; IC 5-10.3-3-2; IC 5-10.3-3-3; IC 5-10.3-3-4; IC 5-10.3-3-5; IC 5-10.3-3-6; IC 5-10.3-3-9; IC 5-10.4-3-1; IC 5-10.4-3-2; IC 5-10.4-3-3; IC 5-10.4-3-4; IC 5-10.4-3-5.
(b) This SECTION expires June 30, 2011.
