Bill Text: IN HB1008 | 2010 | Regular Session | Enrolled
Bill Title: Purchase of out-of-state service credit.
Spectrum: Bipartisan Bill
Status: (Passed) 2010-03-25 - Effective 07/01/2010 [HB1008 Detail]
Download: Indiana-2010-HB1008-Enrolled.html
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AN ACT to amend the Indiana Code concerning pensions.
(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 board may allow a fund member to make
periodic payments of the contributions required for the
purchase of the service credit. The PERF board shall
determine the length of the period during which the payments
must be made.
(2) The PERF 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.
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