Introduced Version
SENATE BILL No. 12
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-10-5.5; IC 5-10.2; IC 33-38; IC 33-39-7;
IC 36-8-8.
Synopsis: PERF and TRF administrative matters. Removes a
provision requiring the teachers' retirement fund (TRF) to maintain
separate accounts for each employer within the retirement allowance
account of the 1996 account. Permits a member of the public
employees' retirement fund (PERF) or TRF who is eligible for an early
retirement to withdraw the member's annuity savings account without
applying for a retirement benefit. Requires, after December 31, 2011,
that an employer of participants in: (1) the state excise police, gaming
agent, gaming control officer, and conservation enforcement officers'
retirement fund; (2) the judges' retirement system; (3) the prosecuting
attorneys' retirement fund (PARF); and (4) the 1977 police officers' and
firefighters' pension and disability fund (1977 Fund); submit
contributions, reports, and records electronically. Authorizes the PERF
board of trustees to establish due dates for contributions, reports, and
records submitted by an employer. Permits an administrative law judge,
for cause shown, to order the waiver or extension of the 180-day limit
in which the PERF board of trustees is required to issue a final order
after the date the PERF board receives a local board's initial disability
determination or the PERF director initiates a review of a default
disability award for a 1977 Fund member. Makes technical corrections
to remove references to the auditor of state in connection with the
administration of PERF. Codifies P.L.33-2006, Section 4, concerning
PARF and repeals the noncode provision. Makes technical corrections
in conformity with amendments in P.L.22-1998 to the 1977 Fund that
reduced from 55 to 52 the age at which a fund member reaches regular
retirement status. (The introduced version of this bill was prepared by
the pension management oversight commission.)
Effective: Upon passage; July 1, 2011.
Boots
January 5, 2011, read first time and referred to Committee on Pensions and Labor.
Introduced
First Regular Session 117th General Assembly (2011)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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SENATE BILL No. 12
A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 5-10-5.5-8; (11)IN0012.1.1. -->
SECTION 1. IC 5-10-5.5-8, AS AMENDED BY P.L.180-2007,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 8. (a) Except as provided in subsection (c), every
participant shall contribute four percent (4%) of the participant's annual
salary to the participants' savings fund.
(b) Contributions shall be made in the form of payroll deductions
from each and every payment of salary received by the participant.
Every participant shall, as a condition precedent to becoming a
participant, consent to the payroll deductions.
(c) An employer may pay all or a part of the contributions for the
participant. All contributions made by an employer under this
subsection shall be treated as pick-up contributions under Section
414(h)(2) of the Internal Revenue Code.
(d) After December 31, 2011, an employer shall submit the
contributions paid by or on behalf of a participant under this
section by electronic funds transfer in accordance with section 8.5
of this chapter.
SOURCE: IC 5-10-5.5-8.5; (11)IN0012.1.2. -->
SECTION 2. IC 5-10-5.5-8.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]: Sec. 8.5. (a) This section applies to
reports, records, and contributions submitted after December 31,
2011.
(b) As used in this section, "electronic funds transfer" has the
meaning set forth in IC 4-8.1-2-7(f).
(c) An employer shall submit through the use of electronic funds
transfer:
(1) employer contributions, determined by the board, to fund
the retirement, disability, and survivor benefits described in
this chapter; and
(2) contributions paid by or on behalf of a participant under
section 8 of this chapter.
(d) An employer shall submit in a uniform format through a
secure connection over the Internet or through other electronic
means specified by the board the reports and records required by
the board under this chapter.
(e) The board shall establish by rule the due dates for all
reports, records, and contributions required under this chapter.
SOURCE: IC 5-10.2-2-6; (11)IN0012.1.3. -->
SECTION 3. IC 5-10.2-2-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. (a) The retirement
allowance account of the public employees' retirement fund consists of
the retirement fund, exclusive of the annuity savings account. For the
public employees' retirement fund, separate accounts within the
retirement allowance account shall be maintained for contributions
made by the state and by each political subdivision.
(b) The retirement allowance account of the pre-1996 account
consists of the pre-1996 account, exclusive of the annuity savings
account.
(c) The retirement allowance account of the 1996 account consists
of the 1996 account, exclusive of the annuity savings account. For the
1996 account, separate accounts within the retirement allowance
account shall be maintained for contributions made by the state, by
each school corporation, and by each institution.
SOURCE: IC 5-10.2-3-6.5; (11)IN0012.1.4. -->
SECTION 4. IC 5-10.2-3-6.5, AS AMENDED BY P.L.99-2010,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 6.5. (a) A member who meets all of the following
requirements may elect to withdraw the entire amount in the member's
annuity savings account: before the member is eligible to do so at
retirement under IC 5-10.2-4-2:
(1) The member has attained vested status in the fund.
(2) The member has terminated employment with the applicable
fund and is not currently employed in a covered position.
(3) The member has not performed any service in a position
covered by the fund for at least thirty (30) days after the date the
member terminates employment.
(4) The member makes the election described in this subsection:
(A) after December 31, 2008, if the member is a member of
the public employees' retirement fund; or
(B) after June 30, 2009, if the member is a member of the
Indiana state teachers' retirement fund.
(5) Except as provided in subsection (b), the member is not
eligible for:
(A) before July 1, 2011, a reduced or unreduced retirement;
or
(B) after June 30, 2011, an unreduced retirement;
under IC 5-10.2-4 on the date the fund receives notice of the
election described in this subsection.
(b) The requirement described in subsection (a)(5) does not apply
to a member of the public employees' retirement fund who:
(1) was eligible for a reduced or unreduced retirement; and
(2) received a distribution under this section;
after December 31, 2008, and before January 1, 2010.
(c) A member who elects to withdraw the entire amount in the
member's annuity savings account under subsection (a) shall provide
notice of the election on a form provided by the board.
(d) The election to withdraw the entire amount in the member's
annuity savings account is irrevocable.
(e) The board shall pay the amount in the member's annuity savings
account as a lump sum.
(f) Except as provided in subsection (g), a member who makes a
withdrawal under this section is entitled to receive, when the member
becomes eligible to receive and applies for a retirement benefit under
IC 5-10.2-4, a retirement benefit equal to the pension provided by
employer contributions computed under IC 5-10.2-4.
(g) A member who:
(1) transfers creditable service earned under the fund to another
governmental retirement plan under section 1(i) of this chapter;
and
(2) withdraws the member's annuity savings account under this
section to purchase the service;
may not use the transferred service in the computation of a retirement
benefit payable under subsection (f).
SOURCE: IC 33-38-6-2.5; (11)IN0012.1.5. -->
SECTION 5. IC 33-38-6-2.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2011]: Sec. 2.5. As used in this chapter, IC 33-38-7, and
IC 33-38-8, "electronic funds transfer" has the meaning set forth
in IC 4-8.1-2-7(f).
SOURCE: IC 33-38-6-21; (11)IN0012.1.6. -->
SECTION 6. IC 33-38-6-21 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 21. (a) When drawing
a salary warrant for a participant, the auditor of state and the county
auditor shall deduct from the amount of the warrant the participant's
contribution, if any, to the fund in the amount certified in the vouchers
or an order issued by the director.
(b) The auditor of state and the county auditor shall draw a warrant
to the fund for the total contributions withheld from the participants
each month. The warrant drawn to the fund together with a list of
participants and the amount withheld from each participant shall be
transmitted immediately to the director.
(c) The auditor of state shall draw warrants upon the treasurer of
state, payable from the fund, for purposes provided for in this chapter,
upon the presentation of vouchers or an order signed by the director of
the board in accordance with resolutions of the board.
(c) After December 31, 2011, the auditor of state and the county
auditor shall submit the contributions paid by or on behalf of a
participant under this section by electronic funds transfer in
accordance with section 21.5 of this chapter.
SOURCE: IC 33-38-6-21.5; (11)IN0012.1.7. -->
SECTION 7. IC 33-38-6-21.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]:
Sec. 21.5. (a) This section applies to
reports, records, and contributions submitted after December 31,
2011, under this chapter, IC 33-38-7, and IC 33-38-8.
(b) An employer shall submit through the use of electronic funds
transfer:
(1) employer payments made to fund the retirement,
disability, and survivor benefits described in this chapter,
IC 33-38-7, and IC 33-38-8; and
(2) contributions paid by or on behalf of a participant under
section 21 of this chapter, IC 33-38-7-10, or IC 33-38-8-11.
(c) An employer shall submit in a uniform format through a
secure connection over the Internet or through other electronic
means specified by the board the reports and records required by
the board under this chapter, IC 33-38-7, or IC 33-38-8.
(d) The board shall establish by rule the due dates for all
reports, records, and contributions required under this chapter,
IC 33-38-7, or IC 33-38-8.
SOURCE: IC 33-38-6-23; (11)IN0012.1.8. -->
SECTION 8. IC 33-38-6-23, AS AMENDED BY P.L.99-2010,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 23. (a) The board of trustees of the public
employees' retirement fund shall administer the fund, which may be
commingled with the public employees' retirement fund for investment
purposes.
(b) The board shall do the following:
(1) Determine eligibility for and make payments of benefits under
IC 33-38-7 and IC 33-38-8.
(2) In accordance with the powers and duties granted it in
IC 5-10.3-3-7, IC 5-10.3-3-7.1, IC 5-10.3-3-8, and IC 5-10.3-5-3
through IC 5-10.3-5-6, administer the fund.
(3) Provide by rule for the implementation of this chapter and
IC 33-38-7 and IC 33-38-8.
(4) Authorize deposits.
(c) A determination by the board may be appealed under the
procedures in IC 4-21.5.
(d) The powers and duties of:
(1) the director and the actuary of the board; and
(2) the attorney general; and
(3) the auditor of state;
with respect to the fund are those specified in IC 5-10.3-3 and
IC 5-10.3-4.
(e) The board may hire additional personnel, including hearing
officers, to assist it in the implementation of this chapter.
(f) Fund records of individual participants and participants'
information are confidential, except for the name and years of service
of a fund participant.
SOURCE: IC 33-38-7-10; (11)IN0012.1.9. -->
SECTION 9. IC 33-38-7-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 10. (a) A person who
completed at least eight (8) years of service as a judge before July 1,
1953, may become a participant in the fund and be subject to this
chapter if the person qualifies for benefits under section 11 of this
chapter. A person who is a judge on July 1, 1953, shall become a
participant in the fund and be subject to this chapter, beginning on July
1, 1953, unless twenty (20) days before July 1, 1953, the judge files
with the board a written notice of election not to participate in the fund.
(b) A person who:
(1) becomes a judge after July 1, 1953, and before September 1,
1985; and
(2) is not a participant in the fund;
becomes a participant in the fund and is subject to this chapter,
beginning on the date the person becomes a judge, unless within twenty
(20) days after that date the judge files with the board a written notice
of election not to participate in the fund. An election filed under this
subsection is irrevocable.
(c) A person who irrevocably:
(1) elects not to participate in the fund; or
(2) withdraws from the fund under section 13 of this chapter;
is ineligible to participate and to receive benefits under this chapter.
(d) Participation of a judge in the fund continues until the date on
which the judge:
(1) becomes an annuitant;
(2) dies; or
(3) accepts a refund;
but a person is not required to pay into the fund during any period that
the person is not serving as a judge, except as otherwise provided in
this chapter.
(e) A participant is considered to have made a one (1) time
irrevocable salary reduction agreement of six percent (6%) of each
payment of salary that a participant would otherwise have received for
services as a judge.
(f) The auditor of state and the county auditor shall pay and credit
to the fund the amounts described in subsection (e) as provided in
IC 33-38-6-21 and IC 33-38-6-22. After December 31, 2011, the
auditor of state and the county auditor shall submit the
contributions paid by or on behalf of a participant under
subsection (e) by electronic funds transfer in accordance with
IC 33-38-6-21.5. However, no amounts shall be paid on behalf of a
participant for more than twenty-two (22) years.
SOURCE: IC 33-38-8-11; (11)IN0012.1.10. -->
SECTION 10. IC 33-38-8-11, AS AMENDED BY P.L.122-2008,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 11. (a) A participant shall make contributions to
this fund of six percent (6%) of each payment of salary received for
services as judge or, after December 31, 2010, as a judge or full-time
magistrate. However, the employer may elect to pay the contribution
for the participant as a pickup under Section 414(h) of the Internal
Revenue Code.
(b) Participants' contributions, other than participants' contributions
paid by the employer, shall be deducted from the monthly salary of
each participant by the auditor of state and by the county auditor and
credited to the fund as provided in IC 33-38-6-21 and IC 33-38-6-22.
After December 31, 2011, the auditor of state and the county
auditor shall submit the contributions paid by or on behalf of a
participant under subsection (a) by electronic funds transfer in
accordance with IC 33-38-6-21.5. However, a contribution is not
required:
(1) because of any salary received after the participant has
contributed to the fund for twenty-two (22) years; or
(2) during any period that the participant is not serving as judge
or, after December 31, 2010, as a judge or full-time magistrate.
SOURCE: IC 33-39-7-0.1; (11)IN0012.1.11. -->
SECTION 11. IC 33-39-7-0.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 0.1. The amendments made
to sections 15, 16, and 19 of this chapter by P.L.33-2006 apply to a
participant in the fund who:
(1) is serving on July 1, 2006; or
(2) begins service after July 1, 2006;
in a position described in section 8 of this chapter.
SOURCE: IC 33-39-7-11; (11)IN0012.1.12. -->
SECTION 12. IC 33-39-7-11, AS AMENDED BY P.L.99-2010,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 11. (a) The board shall administer the fund, which
may be commingled with the public employees' retirement fund for
investment purposes.
(b) The board shall do the following:
(1) Determine eligibility for and make payments of benefits under
this chapter.
(2) In accordance with the powers and duties granted the board in
IC 5-10.3-3-7, IC 5-10.3-3-7.1, IC 5-10.3-3-8, and IC 5-10.3-5-3
through IC 5-10.3-5-6, administer the fund.
(3) Provide by rule for the implementation of this chapter.
(4) Authorize deposits.
(c) A determination by the board may be appealed under IC 4-21.5.
(d) The powers and duties of:
(1) the director and the actuary of the board; and
(2) the attorney general; and
(3) the auditor of state;
with respect to the fund are those specified in IC 5-10.3-3 and
IC 5-10.3-4.
(e) The board may hire additional personnel, including hearing
officers, to assist in the implementation of this chapter.
(f) Fund records of individual participants and participants'
information are confidential, except for the name and years of service
of a fund participant.
SOURCE: IC 33-39-7-12; (11)IN0012.1.13. -->
SECTION 13. IC 33-39-7-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 12. (a) Except as
provided in subsection (b), each participant shall make contributions
to the fund as follows:
(1) A participant described in section 8(a)(1) of this chapter shall
make contributions of six percent (6%) of each payment of salary
received for services after December 31, 1989.
(2) A participant described in section 8(a)(2) or 8(a)(3) of this
chapter shall make contributions of six percent (6%) of each
payment of salary received for services after June 30, 1994.
A participant's contributions shall be deducted from the participant's
monthly salary by the auditor of state and credited to the fund.
(b) The state may pay the contributions for a participant.
(c) After December 31, 2011, the auditor of state shall submit
the contributions paid by or on behalf of a participant under this
section by electronic funds transfer in accordance with section 12.5
of this chapter.
SOURCE: IC 33-39-7-12.5; (11)IN0012.1.14. -->
SECTION 14. IC 33-39-7-12.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]: Sec. 12.5. (a) This section applies to
reports, records, and contributions submitted after December 31,
2011, under this chapter.
(b) As used in this section, "electronic funds transfer" has the
meaning set forth in IC 4-8.1-2-7(f).
(c) The state shall submit through the use of electronic funds
transfer contributions paid by or on behalf of a participant under
section 12 of this chapter.
(d) The state shall submit in a uniform format through a secure
connection over the Internet or through other electronic means
specified by the board the reports and records required by the
board under this chapter.
(e) The board shall establish by rule the due dates for all
reports, records, and contributions required under this chapter.
SOURCE: IC 36-8-8-1.5; (11)IN0012.1.15. -->
SECTION 15. IC 36-8-8-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2011]: Sec. 1.5. As used in this chapter, "electronic funds
transfer" has the meaning set forth in IC 4-8.1-2-7(f).
SOURCE: IC 36-8-8-6; (11)IN0012.1.16. -->
SECTION 16. IC 36-8-8-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. (a) Each employer
shall annually on March 31, June 30, September 30, and December 31,
for the calendar quarters ending on those dates, or an alternate date
established by the rules of the PERF board, pay into the 1977 fund
an amount determined by the PERF board:
(1) for administration expenses; and
(2) sufficient to maintain level cost funding during the period of
employment on an actuarial basis for members hired after April
30, 1977.
(b) After December 31, 2011, each employer shall submit the
payments required by subsection (a) by electronic funds transfer.
(b) (c) If an employer fails to make the payments required by
subsection (a) or fails to send the fund members' contributions required
by section 8(a) of this chapter, the amount payable, on request of the
PERF board, may be withheld by the auditor of state from money
payable to the employer and transferred to the fund. In the alternative,
the amount payable may be recovered in the circuit or superior court of
the county in which the employer is located, in an action by the state on
the relation of the PERF board, prosecuted by the attorney general.
SOURCE: IC 36-8-8-8; (11)IN0012.1.17. -->
SECTION 17. IC 36-8-8-8, AS AMENDED BY P.L.180-2007,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 8. (a) Each fund member shall contribute during
the period of the fund member's employment or for thirty-two (32)
years, whichever is shorter, an amount equal to six percent (6%) of the
salary of a first class patrolman or firefighter. However, the employer
may pay all or a part of the contribution for the member. The amount
of the contribution, other than contributions paid on behalf of a
member, shall be deducted each pay period from each fund member's
salary by the disbursing officer of the employer. The employer shall
send to the PERF board each year on March 31, June 30, September
30, and December 31, for the calendar quarters ending on those dates,
or an alternate date established by the rules of the PERF board, a
certified list of fund members and a warrant issued by the employer for
the total amount deducted for fund members' contributions.
(b) After December 31, 2011, an employer shall submit:
(1) the list described in subsection (a) in a uniform format
through a secure connection over the Internet or through
other electronic means specified by the PERF board; and
(2) the contributions paid by or on behalf of a member under
subsection (a) by electronic funds transfer.
(b) (c) Except as provided in section 7.2 of this chapter, if a fund
member ends the fund member's employment other than by death or
disability before the fund member completes twenty (20) years of
active service, the PERF board shall return to the fund member in a
lump sum the fund member's contributions plus interest as determined
by the PERF board. If the fund member returns to service, the fund
member is entitled to credit for the years of service for which the fund
member's contributions were refunded if the fund member repays the
amount refunded to the fund member in either a lump sum or a series
of payments determined by the PERF board.
SOURCE: IC 36-8-8-12; (11)IN0012.1.18. -->
SECTION 18. IC 36-8-8-12, AS AMENDED BY P.L.34-2009,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 12. (a) Benefits paid under this section are subject
to sections 2.5 and 2.6 of this chapter.
(b) If an active fund member has a covered impairment, as
determined under sections 12.3 through 13.1 of this chapter, the
member is entitled to receive the benefit prescribed by section 13.3 or
13.5 of this chapter. A member who has had a covered impairment and
returns to active duty with the department shall not be treated as a new
applicant seeking to become a member of the 1977 fund.
(c) If a retired fund member who has not yet reached the member's
fifty-second birthday is found by the PERF board to be permanently or
temporarily unable to perform all suitable work for which the member
is or may be capable of becoming qualified, the member is entitled to
receive during the disability the retirement benefit payments payable
at fifty-two (52) years of age. During a reasonable period in which a
fund member with a disability is becoming qualified for suitable work,
the member may continue to receive disability benefit payments.
However, benefits payable for disability under this subsection are
reduced by amounts for which the fund member is eligible from:
(1) a plan or policy of insurance providing benefits for loss of
time because of disability;
(2) a plan, fund, or other arrangement to which the fund member's
employer has contributed or for which the fund member's
employer has made payroll deductions, including a group life
policy providing installment payments for disability, a group
annuity contract, or a pension or retirement annuity plan other
than the fund established by this chapter;
(3) the federal Social Security Act (42 U.S.C. 401 et seq.), the
Railroad Retirement Act (45 U.S.C. 231 et seq.), the United States
Department of Veterans Affairs, or another federal, state, local, or
other governmental agency;
(4) worker's compensation payable under IC 22-3; and
(5) a salary or wage, including overtime and bonus pay and extra
or additional remuneration of any kind, the fund member receives
or is entitled to receive from the member's employer.
For the purposes of this subsection, a retired fund member is
considered eligible for benefits from subdivisions (1) through (5)
whether or not the member has made application for the benefits.
(d) Notwithstanding any other law, a plan, policy of insurance, fund,
or other arrangement:
(1) delivered, issued for delivery, amended, or renewed after
April 9, 1979; and
(2) described in subsection (c)(1) or (c)(2);
may not provide for a reduction or alteration of benefits as a result of
benefits for which a fund member may be eligible from the 1977 fund
under subsection (c).
(e) Time spent receiving disability benefits, not to exceed twenty
(20) years, is considered active service for the purpose of determining
retirement benefits. A fund member's retirement benefit shall be based
on:
(1) the member's years of active service; plus
(2) if applicable, the period, not to exceed twenty (20) years,
during which the member received disability benefits.
(f) A fund member who is receiving disability benefits:
(1) under section 13.3(d) of this chapter; or
(2) based on a determination under this chapter that the fund
member has a Class 3 impairment;
shall be transferred from disability to regular retirement status when the
member becomes fifty-five (55) fifty-two (52) years of age.
(g) A fund member who is receiving disability benefits:
(1) under section 13.3(c) of this chapter; or
(2) based on a determination under this chapter that the fund
member has a Class 1 or Class 2 impairment;
is entitled to receive a disability benefit for the remainder of the fund
member's life in the amount determined under the applicable sections
of this chapter.
SOURCE: IC 36-8-8-13.1; (11)IN0012.1.19. -->
SECTION 19. IC 36-8-8-13.1, AS AMENDED BY P.L.29-2006,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 13.1. (a) If:
(1) the local board has determined under this chapter that a
covered impairment exists and the safety board has determined
that there is no suitable and available work within the department,
considering reasonable accommodation to the extent required by
the Americans with Disabilities Act; or
(2) the fund member has filed an appeal under section 12.7(o) of
this chapter;
the local board shall submit the local board's determinations and the
safety board's determinations to the PERF board's director.
(b) Whenever a fund member is determined to have an impairment
under section 12.7(i) of this chapter, the PERF board's director shall
initiate a review of the default award not later than sixty (60) days after
the director learns of the default award.
(c) After the PERF board's director receives the determinations
under subsection (a) or initiates a review under subsection (b), the fund
member must submit to an examination by a medical authority selected
by the PERF board. The authority shall determine if there is a covered
impairment. With respect to a fund member who is covered by sections
12.5 and 13.5 of this chapter, the authority shall determine the degree
of impairment. The PERF board shall adopt rules under IC 4-22-2 to
establish impairment standards, such as the impairment standards
contained in the United States Department of Veterans Affairs
Schedule for Rating Disabilities. The report of the examination shall be
submitted to the PERF board's director. If a fund member refuses to
submit to an examination, the authority may find that no impairment
exists.
(d) The PERF board's director shall review the medical authority's
report and the local board's determinations and issue an initial
determination within sixty (60) days after receipt of the local board's
determinations. The PERF board's director shall notify the local board,
the safety board, and the fund member of the initial determination. The
following provisions apply if the PERF board's director does not issue
an initial determination within sixty (60) days and if the delay is not
attributable to the fund member or the safety board:
(1) In the case of a review initiated under subsection (a)(1):
(A) the determinations of the local board and the chief of the
police or fire department are considered to be the initial
determination; and
(B) for purposes of section 13.5(d) of this chapter, the fund
member is considered to be totally impaired.
(2) In the case of an appeal submitted under subsection (a)(2), the
statements made by the fund member under section 12.7(o) of this
chapter are considered to be the initial determination.
(3) In the case of a review initiated under subsection (b), the
initial determination is the impairment determined under section
12.7(i) of this chapter.
(e) The fund member, the safety board, or the local board may
object in writing to the director's initial determination within fifteen
(15) days after the determination is issued. If no written objection is
filed, the initial determination becomes the final order of the PERF
board. If a timely written objection is filed, the PERF board shall issue
the final order after a hearing. Unless an administrative law judge
orders a waiver or an extension of the period for cause shown, the
final order shall be issued not later than one hundred eighty (180) days
after the date of receipt of the local board's determination or the date
the PERF board's director initiates a review under subsection (b). The
following provisions apply if a final order is not issued within one
hundred eighty (180) days the time limit described in this subsection
and if the delay is not attributable to the fund member or the chief of
the police or fire department:
(1) In the case of a review initiated under subsection (a)(1):
(A) the determinations of the local board and the chief of the
police or fire department are considered to be the final order;
and
(B) for purposes of section 13.5(d) of this chapter, the fund
member is considered to be totally impaired.
(2) In the case of an appeal submitted under subsection (a)(2), the
statements made by the fund member under section 12.7(o) of this
chapter are considered to be the final order.
(3) In the case of a review initiated under subsection (b), the
impairment determined under section 12.7(i) of this chapter is
considered to be the final order.
(f) If the PERF board approves the director's initial determination,
then the PERF board shall issue a final order adopting the initial
determination. The local board and the chief of the police or fire
department shall comply with the initial determination. If the PERF
board does not approve the initial determination, the PERF board may
receive additional evidence on the matter before issuing a final order.
(g) Appeals of the PERF board's final order may be made under
IC 4-21.5.
(h) The transcripts, records, reports, and other materials compiled
under this section must be retained in accordance with the procedures
specified in section 12.7(p) of this chapter.
SOURCE: IC 36-8-8-18; (11)IN0012.1.20. -->
SECTION 20. IC 36-8-8-18, AS AMENDED BY P.L.148-2007,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 18. (a) Except as provided in subsection (b), if a
unit becomes a participant in the 1977 fund, credit for prior service by
police officers (including prior service as a full-time, fully paid town
marshal or full-time, fully paid deputy town marshal by a police officer
employed by a metropolitan board of police commissioners) or by
firefighters before the date of participation may be given by the PERF
board only if:
(1) the unit contributes to the 1977 fund the amount necessary to
amortize prior service liability over a period of not more than
forty (40) years, the amount and period to be determined by the
PERF board; and
(2) the police officers or firefighters pay, either in a lump sum or
in a series of payments determined by the PERF board, the
amount that they would have contributed if they had been
members of the 1977 fund during their prior service.
If the requirements of subdivisions (1) and (2) are not met, a fund
member is entitled to credit only for years of service after the date of
participation.
(b) If a unit becomes a participant in the 1977 fund under section
3(c) of this chapter, or if a firefighter becomes a member of the 1977
fund under section 7(g) of this chapter, credit for prior service before
the date of participation or membership shall be given by the PERF
board as follows:
(1) For a member who will accrue twenty (20) years of service
credit in the 1977 fund by the time the member reaches the
earliest retirement age under the fund at the time of the member's
date of participation in the 1977 fund, the member will be given
credit in the 1977 fund for one-third (1/3) of the member's years
of participation in PERF as a police officer, a firefighter, or an
emergency medical technician.
(2) For a member who will not accrue twenty (20) years of service
credit in the 1977 fund by the time the member reaches the
earliest retirement age under the fund at the time of the member's
date of participation in the 1977 fund, such prior service shall be
given only if:
(A) The unit contributes to the 1977 fund the amount
necessary to fund prior service liability amortized over a
period of not more than ten (10) years. The amount of
contributions must be based on the actual salary earned by a
first class firefighter at the time the unit becomes a participant
in the 1977 fund, or the firefighter becomes a member of the
1977 fund, or if no such salary designation exists, the actual
salary earned by the firefighter. The limit on credit for prior
service does not apply if the firefighter was a member of the
1937 fund or 1977 fund whose participation was terminated
due to the creation of a new fire protection district under
IC 36-8-11-5 and who subsequently became a member of the
1977 fund. A firefighter who was a member of or reentered the
1937 fund or 1977 fund whose participation was terminated
due to the creation of a new fire protection district under
IC 36-8-11-5 is entitled to full credit for prior service in an
amount equal to the firefighter's years of service before
becoming a member of or reentering the 1977 fund. Service
may only be credited for time as a full-time, fully paid
firefighter or as an emergency medical technician under
section 7(g) of this chapter.
(B) The amount the firefighter would have contributed if the
firefighter had been a member of the 1977 fund during the
firefighter's prior service must be fully paid and must be based
on the firefighter's actual salary earned during that period
before service can be credited under this section.
(C) Any amortization schedule for contributions paid under
clause (A) and contributions to be paid under clause (B) must
include interest at a rate determined by the PERF board.
(3) If, at the time a unit entered the 1977 fund, the unit
contributed the amount required by subdivision (2) so that a fund
member received the maximum prior service credit allowed by
subdivision (2) and, at a later date, the earliest retirement age was
lowered, the unit may contribute to the 1977 fund on the fund
member's behalf an additional amount that is determined in the
same manner as under subdivision (2) with respect to the
additional prior service, if any, available as a result of the lower
retirement age. If the unit pays the additional amount described in
this subdivision in accordance with the requirements of
subdivision (2), the fund member shall receive the additional
service credit necessary for the fund member to retire at the lower
earliest retirement age.
(c) This subsection applies to a unit that:
(1) becomes a participant in the 1977 fund under section 3(c) of
this chapter; and
(2) is a fire protection district created under IC 36-8-11 that
includes a township or a municipality that had a 1937 fund.
A firefighter who continues uninterrupted service with a unit covered
by this subsection and who participated in the township or municipality
1937 fund is entitled to receive service credit for such service in the
1977 fund. However, credit for such service is limited to the amount
accrued by the firefighter in the 1937 fund or the amount necessary to
allow the firefighter to accrue twenty (20) years of service credit in the
1977 fund by the time the firefighter becomes fifty-five (55) fifty-two
(52) years of age, whichever is less.
(d) The unit shall contribute into the 1977 fund the amount
necessary to fund the amount of past service determined in accordance
with subsection (c), amortized over a period not to exceed ten (10)
years with interest at a rate determined by the PERF board.
(e) If the township or municipality has accumulated money in its
1937 fund, any amount accumulated that exceeds the present value of
all projected future benefits from the 1937 plan shall be paid by the
township or municipality to the unit for the sole purpose of making the
contributions determined in subsection (d).
(f) 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 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.
(g) 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 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.
SOURCE: IC 36-8-8-18.1; (11)IN0012.1.21. -->
SECTION 21. IC 36-8-8-18.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 18.1. (a) As used in this
section, "police officer" includes a former full-time, fully paid town
marshal or full-time, fully paid deputy town marshal who is employed
as a police officer by a metropolitan board of police commissioners.
(b) If a unit becomes a participant in the 1977 fund and the unit
previously covered police officers, firefighters, or emergency medical
technicians in PERF, or if the employees of the unit become members
of the 1977 fund under section 7(g) of this chapter, the following
provisions apply:
(1) A minimum benefit applies to members electing to transfer or
being transferred to the 1977 fund from PERF. The minimum
benefit, payable at age
fifty-five (55) fifty-two (52), for such a
member equals the actuarial equivalent of the vested retirement
benefit payable to the member upon normal retirement under
IC 5-10.2-4-1 as of the day before the transfer, based solely on:
(A) creditable service;
(B) the average of the annual compensation; and
(C) the amount credited to the annuity savings account;
of the transferring member as of the day before the transfer under
IC 5-10.2 and IC 5-10.3.
(2) The PERF board shall transfer from PERF to the 1977 fund
the amount credited to the annuity savings accounts and the
present value of the retirement benefits payable at age sixty-five
(65) attributable to the transferring members.
(3) The amount the unit and the member must contribute to the
1977 fund under section 18 of this chapter, if any service credit
is to be given under that section, will be reduced by the amounts
transferred to the 1977 fund by the PERF board under subdivision
(2).
(4) Credit for prior service in PERF of a member as a police
officer, a firefighter, or an emergency medical technician is
waived in PERF. Any credit for that service under the 1977 fund
shall only be given in accordance with section 18 of this chapter.
(5) Credit for prior service in PERF of a member, other than as a
police officer, a firefighter, or an emergency medical technician,
remains in PERF and may not be credited under the 1977 fund.
SOURCE: ; (11)IN0012.1.22. -->
SECTION 22. P.L.33-2006, SECTION 4, IS REPEALED
[EFFECTIVE UPON PASSAGE].
SOURCE: ; (11)IN0012.1.23. -->
SECTION 23.
An emergency is declared for this act.