Bill Text: IN SB0499 | 2013 | Regular Session | Enrolled

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Bill Title: PERF and prosecutor pension.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Passed) 2013-05-13 - Public Law 54 [SB0499 Detail]

Download: Indiana-2013-SB0499-Enrolled.html

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First Regular Session 118th General Assembly (2013)

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 this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
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    SENATE ENROLLED ACT No. 499

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     AN ACT to amend the Indiana Code concerning pensions.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 5-10.3-8-14; (13)SE0499.1.1. -->

    SECTION 1. IC 5-10.3-8-14, AS AMENDED BY P.L.35-2012, SECTION 82, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 14. (a) Except as provided in subsection (c), this section applies to employees of the state (as defined in IC 5-10.3-7-1(d)) who are:
         (1) members of the fund; and
        (2) paid by the auditor of state by salary warrants.
    (b) Except as provided in subsection (c), this section does not apply to the employees of the state (as defined in IC 5-10.3-7-1(d)) employed by:
        (1) a body corporate and politic of the state created by state statute; or
        (2) a state educational institution (as defined in IC 21-7-13-32).
    (c) The chief executive officer of a body or institution described in subsection (b) may elect to have this section apply to the employees of the state (as defined in IC 5-10.3-7-1(d)) employed by the body or institution by submitting a written notice of the election to the director. An election under this subsection is effective on the later of:
        (1) the date the notice of the election is received by the director; or

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        (2) July 1, 2013.
    (b) (d) 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) (e) The board is the trustee of the account described in subsection (b). (d). 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) (f) The board may adopt rules under 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); (d); 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) (g) 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) (h) The account described in subsection (b) (d) 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) (i) To the extent allowed by:
        (1) the Internal Revenue Code; and

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        (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) (j) To the extent allowed by the Internal Revenue Code, the account described in subsection (b) (d) 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 5-10.3-12-1; (13)SE0499.1.2. -->     SECTION 2. IC 5-10.3-12-1, AS ADDED BY P.L.22-2011, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) Except as provided in subsection (c), this chapter applies to an individual who, on or after the effective date of the plan:
        (1) becomes for the first time a full-time employee of the state (as defined in IC 5-10.3-7-1(d)):
             (A) in a position that would otherwise be eligible for membership in the fund under IC 5-10.3-7; and
             (B) who is paid by the auditor of state by salary warrants; and
        (2) makes the election described in section 20 of this chapter to become a member of the plan.
     (b) Except as provided in subsection (c), this chapter does not apply to an individual who, on or after the effective date of the plan:
        (1) becomes for the first time a full-time employee of the state (as defined in IC 5-10.3-7-1(d)) in a position that would otherwise be eligible for membership in the fund under IC 5-10.3-7; and
        (2) is employed by:
            (A) a body corporate and politic of the state created by state statute; or
            (B) a state educational institution (as defined in IC 21-7-13-32).
    (c) The chief executive officer of a body or institution described

in subsection (b) may elect, by submitting a written notice of the election to the director, to have this chapter apply to individuals who, as employees of the body or institution, become for the first time full-time employees of the state (as defined in IC 5-10.3-7-1(d)) in positions that would otherwise be eligible for membership in the fund under IC 5-10.3-7. An election under this subsection is effective on the later of:
        (1) the date the notice of the election is received by the director; or
        (2) March 1, 2013.
    (b) (d) This chapter does not apply to an individual who:
        (1) before the effective date of the plan, is or was a member (as defined in IC 5-10.3-1-5) of the fund; or
        (2) on or after the effective date of the plan:
             (A) except as provided in subsection (c), becomes for the first time a full-time employee of the state (as defined in IC 5-10.3-7-1(d)):
                (i) in a position that would otherwise be eligible for membership in the fund under IC 5-10.3-7; and
                (ii) who is not paid by the auditor of state by salary warrants; or
            (B) does not elect to participate in the plan.

SOURCE: IC 33-39-7-13; (13)SE0499.1.3. -->     SECTION 3. IC 33-39-7-13, AS AMENDED BY P.L.16-2011, SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 13. (a) A participant who:
        (1) ceases service in a position described in section 8 of this chapter, other than by death or disability; and
        (2) is not eligible for a retirement benefit under this chapter;
is entitled to withdraw from the fund, beginning on the date specified by the participant in a written application. The date upon which the withdrawal begins may not be before the date of final termination of employment or the date thirty (30) days before the receipt of the application by the board. Upon withdrawal the participant is entitled to receive the total sum contributed plus interest at a rate specified by rule by the board, payable not later than sixty (60) days from the date of the withdrawal application.
    (b) Notwithstanding section 8 of this chapter, a participant who withdraws from the fund under subsection (a) and becomes a participant again at a later date is not entitled to service credit for years of service before the withdrawal, unless the participant pays into the fund the full amount received by the participant when the participant withdrew from the fund, plus interest at a rate

specified by rule by the board. The board shall grant a participant service credit for years of service by the participant before the participant's withdrawal from the fund if the participant makes the repayment required by this subsection in a lump sum or a series of payments determined by the board, not exceeding five (5) annual installments.

SOURCE: IC 33-39-7-16; (13)SE0499.1.4. -->     SECTION 4. IC 33-39-7-16, AS AMENDED BY P.L.16-2011, SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 16. (a) This section does not apply to a participant who meets the requirements for disability benefits under section 17 of this chapter.
    (b) Except as provided in subsections (c), and (d), and (e), the amount of the annual retirement benefit to which a participant who applies for a retirement benefit and who is at least sixty-five (65) years of age is entitled equals the product of:
        (1) the highest annual salary that was paid to the participant before separation from service; multiplied by
        (2) the percentage prescribed in the following table:
    Participant's Years     Percentage
    of Service
    Less than 8     0
    8    24%
    9    27%
    10    30%
    11    33%
    12    50%
    13    51%
    14    52%
    15    53%
    16    54%
    17    55%
    18    56%
    19    57%
    20     58%
    21    59%
    22 or more    60%
    (c) If a participant who applies for a retirement benefit is not at least sixty-five (65) years of age, the participant is entitled to receive a reduced annual retirement benefit that equals the benefit that would be payable if the participant were sixty-five (65) years of age reduced by one-fourth percent (0.25%) for each month that the participant's age at retirement precedes the participant's sixty-fifth birthday.

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    (d) Except as provided in subsection (e), benefits payable to a participant under this section are reduced by the pension, if any, that would be payable to the participant from the public employees' retirement fund if the participant had retired from the public employees' retirement fund on the date of the participant's retirement from the prosecuting attorneys retirement fund. Benefits payable to a participant under this section are not reduced by annuity payments made to the participant from the public employees' retirement fund.
     (e) This subsection applies to a participant who is a member of the public employees' defined contribution (annuity savings account only) plan established by IC 5-10.3-12-18. Benefits payable to a participant under this section are reduced by the pension portion of the retirement benefit, if any, that would be payable to the participant from the public employees' retirement fund if the participant:
        (1) had not made an election under IC 5-10.3-12-20 to become a member of the public employees' defined contribution (annuity savings account only) plan; and
        (2) had retired from the public employees' retirement fund on the date of the participant's retirement from the prosecuting attorneys retirement fund.
    (e) (f) If benefits payable from the public employees' retirement fund exceed the benefits payable from the prosecuting attorneys retirement fund, the participant is entitled at retirement to withdraw from the prosecuting attorneys retirement fund the total sum contributed plus interest at a rate specified by rule by the board.

SOURCE: IC 33-39-7-18; (13)SE0499.1.5. -->     SECTION 5. IC 33-39-7-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 18. (a) Except as provided in subsection subsections (b) and (c), the amount of the annual benefit payable to a participant who meets the requirements for disability benefits under section 17 of this chapter is equal to the product of:
        (1) the annual salary that was paid to the participant at the time of separation from service; multiplied by
        (2) the percentage prescribed in the following table:
    Participant's Years     Percentage
    of Service
    Less than 5     0
    5-10     40%
    11     41%
    12     42%
    13     43%

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    14     44%
    15     45%
    16     46%
    17     47%
    18     48%
    19     49%
    20 or more     50%
    (b) Except as provided in subsection (c), benefits payable to a participant under this section are reduced by the amounts, if any, that are payable to the participant from the public employees' retirement fund.
     (c) This subsection applies to a participant who is a member of the public employees' defined contribution (annuity savings account only) plan established by IC 5-10.3-12-18. Benefits payable to a participant under this section are reduced by the pension portion of the retirement benefit, if any, that would be payable to the participant from the public employees' retirement fund if the participant had not made an election under IC 5-10.3-12-20 to become a member of the public employees' defined contribution (annuity savings account only) plan.

SOURCE: IC 33-39-7-19; (13)SE0499.1.6. -->     SECTION 6. IC 33-39-7-19, AS AMENDED BY P.L.33-2006, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 19. (a) The surviving spouse of a participant who:
        (1) dies; and
        (2) on the date of death:
            (A) was receiving benefits under this chapter;
            (B) had completed at least eight (8) years of service in a position described in section 8 of this chapter; or
            (C) met the requirements for disability benefits under section 17 of this chapter;
is entitled, regardless of the participant's age, to the benefit prescribed by subsection (b), (c), or (d).
    (b) The surviving spouse is entitled to a benefit for life equal to the greater of:
        (1) seven thousand dollars ($7,000); or
        (2) fifty percent (50%) of the amount of retirement benefit the participant was drawing at the time of death, or to which the participant would have been entitled had the participant retired and begun receiving retirement benefits on the date of death, with reductions as necessary under section 16(c) of this chapter.
    (c) Except as provided in subsection (d), benefits payable to a surviving spouse under this section are reduced by the amounts,

amount, if any, that are is payable to the surviving spouse from the public employees' retirement fund as a result of the participant's death after subtracting the participant's contributions and earnings attributable to the participant's contributions in the participant's annuity savings account.
    (d) This subsection applies to a surviving spouse of a participant who is a member of the public employees' defined contribution (annuity savings account only) plan established by IC 5-10.3-12-18. Benefits payable to a surviving spouse of a participant under this section are reduced by the pension portion of the retirement benefit, if any, that would be payable to the spouse from the public employees' retirement fund under the joint and survivor option under IC 5-10.2-4-7, computed at fifty percent (50%) of the participant's decreased retirement benefit, if the participant had not made an election under IC 5-10.3-12-20 to become a member of the public employees' defined contribution (annuity savings account only) plan.

SOURCE: IC 33-39-7-20; (13)SE0499.1.7. -->     SECTION 7. IC 33-39-7-20 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 20. (a) If a participant's spouse does not survive the participant, the dependent child of a participant is, upon the death of the participant, entitled to a benefit equal to the benefit the participant's spouse would have received under section 19 of this chapter.
    (b) If a surviving spouse of a decedent participant dies and a dependent child of the surviving spouse and the decedent participant survives them, that dependent child is entitled to receive a benefit equal to the benefit the spouse was receiving or would have received under section 19 of this chapter.
    (c) If there is more than one (1) dependent child, the dependent children are entitled to share the benefit equally.
    (d) Each dependent child is entitled to receive that child's share until the child becomes eighteen (18) years of age or during the entire period of the child's physical or mental disability, whichever period is longer.
    (e) Except as provided in subsection (f), benefits payable to a dependent child are reduced by the amounts, amount, if any, that are is payable to the dependent child from the public employees' retirement fund after subtracting the participant's contributions and earnings attributable to the participant's contributions in the participant's annuity savings account.
    (f) This subsection applies to a dependent child of a participant who is a member of the public employees' defined contribution (annuity savings account only) plan established by IC 5-10.3-12-18.

Benefits payable to a dependent child of a participant under this section are reduced by the actuarial equivalent of the pension portion of the retirement benefit, if any, that would be payable to the spouse (assuming the spouse would have had the same birth date as the participant) from the public employees' retirement fund under the joint and survivor option under IC 5-10.2-4-7, computed at fifty percent (50%) of the participant's decreased retirement benefit, if the participant had not made an election under IC 5-10.3-12-20 to become a member of the public employees' defined contribution (annuity savings account only) plan.

SOURCE: ; (13)SE0499.1.8. -->     SECTION 8. An emergency is declared for this act.

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SEA 499

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