Bill Text: IN SB0127 | 2012 | Regular Session | Enrolled
Bill Title: Indiana public retirement system.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Enrolled - Dead) 2012-03-14 - Signed by the Governor [SB0127 Detail]
Download: Indiana-2012-SB0127-Enrolled.html
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
AN ACT to amend the Indiana Code concerning pensions.
(b) Notwithstanding IC 5-10.3-7-2 or any other law, a member of the general assembly who is a participant in the legislators' defined benefit plan shall also be a member of PERF or TRF while serving in another position covered by PERF or TRF. However, the following provisions apply to a participant who is also a member of PERF or TRF:
(1) The
(2) Except as provided in subdivision (4), the
(A) salary as a member of the general assembly; or
(B) years of service as a member of the general assembly.
(3) The participant is not required to make annuity contributions to PERF or TRF for service as a member of the general assembly after July 1, 1989.
(4) IC 5-10.2-4-3.1 and the special provisions for members of the general assembly in IC 5-10.2-3-7.5, IC 5-10.3-7-3, IC 5-10.3-7-7, IC 5-10.3-8-2, IC 5-10.4-5-7, and IC 20-28-10-16 do apply to the determination of the participant's benefits under PERF and TRF for benefits earned before July 1, 1989. IC 5-10.2-4-3.1 and the special provisions for members of the general assembly in IC 5-10.2-3-7.5, IC 5-10.3-7-3, IC 5-10.3-7-7, IC 5-10.3-8-2, IC 5-10.4-5-7, and IC 20-28-10-16(b) do not apply to the determination of the participant's benefits under PERF or TRF for benefits earned after June 30, 1989.
(1) served as a member of the general assembly before April 30, 1989;
(2) was not serving as a member of the general assembly on April 30, 1989; and
(3) is subsequently elected or appointed to the general assembly;
is a participant in the defined contribution plan of the legislators' retirement system.
(b) The PERF and TRF benefits earned by a participant described in subsection (a) before July 1, 1989, for service as a member of the general assembly or in another covered position, are not affected by this article. However, the following provisions apply to such a participant who is also a member of PERF or TRF:
(1) The
(2) The
(A) salary as a member of the general assembly that is received after July 1, 1989; or
(B) years of service as a member of the general assembly after July 1, 1989.
(3) The participant is not required to make annuity contributions to PERF or TRF for service as a member of the general assembly after July 1, 1989.
(4) If IC 5-10.2-4-3.1 or any of the special provisions for members
of the general assembly in IC 5-10.2-3-7.5, IC 5-10.3-7-3,
IC 5-10.3-7-7, IC 5-10.3-8-2, IC 5-10.4-5-7, and IC 20-28-10-16
applied to the determination of the participant's benefits under
PERF or TRF before July 1, 1989, those provisions do not apply
to the determination of the participant's benefits under PERF or
TRF for benefits earned after July 1, 1989.
(1) each member of the general assembly who is serving on April 30, 1989, and who files an election under subsection (b); and
(2) each member of the general assembly who is elected or appointed after April 30, 1989.
(b) A member of the general assembly who is serving on April 30, 1989, may elect to have the member's years of service in the general assembly covered by this chapter, IC 2-3.5-4, and IC 2-3.5-5 instead of IC 5-10.2, IC 5-10.3, and IC 5-10.4. An election under this subsection:
(1) must be made in writing;
(2) must be filed with the PERF board (as it existed before its dissolution on July 1, 2011) on a form prescribed by the board;
(3) must be made before January 1, 1990; and
(4) is irrevocable.
(c) Notwithstanding subsection (b), if a member of the general assembly files an election under subsection (b), the
(1) salary as a member of the general assembly received after April 30, 1989; or
(2) years of service as a member of the general assembly after April 30, 1989.
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 2. (a) The legislators'
retirement system is established. The system consists of the legislators'
defined benefit plan described in IC 2-3.5-4 and the legislators' defined
contribution plan described in IC 2-3.5-5.
(b) The following funds are established:
(1) The fund for the legislators' defined benefit plan.
(2) The fund for the legislators' defined contribution plan.
Each of the funds shall be administered by the PERF board. Each of the
funds is a trust, separate and distinct from all other entities, maintained
for the purpose of paying benefits to participants and their beneficiaries
and paying the costs associated with administering the plan.
(c) The PERF board shall adopt rules under IC 4-22-2 necessary for
the administration of the plans and funds described in subsections (a)
and (b).
(1) The
(2) No part of the corpus or income of the funds may be used for or diverted to a purpose other than the exclusive benefit of the participants and their beneficiaries.
(3) Forfeitures arising from severance of employment, death, or for any other reason may not be applied to increase the benefits a participant would otherwise receive under this chapter, IC 2-3.5-4, and IC 2-3.5-5.
(4) If the system is terminated, or if all contributions to the system are completely discontinued, the rights of each affected participant to the benefits accrued at the date of termination or discontinuance, to the extent then funded, are nonforfeitable.
(5) All benefits paid from the system shall be distributed in accordance with the requirements of Section 401(a)(9) of the Internal Revenue Code and the regulations under that section. In order to meet those requirements, the funds are subject to the following provisions:
(A) The life expectancy of a participant, the participant's spouse, or the participant's beneficiary may not be recalculated after the initial determination for purposes of determining
benefits.
(B) If a participant dies before the distribution of the
participant's benefits has begun, distributions to beneficiaries
must begin no later than December 31 of the calendar year
immediately following the calendar year in which the member
died.
(C) The amount of an annuity paid to a participant's
beneficiary may not exceed the maximum determined under
the incidental death benefit requirement of the Internal
Revenue Code.
(6) The PERF board may not:
(A) determine eligibility for benefits;
(B) compute rates of contribution; or
(C) compute benefits of participant's beneficiaries;
in a manner that discriminates in favor of participants who are
considered officers, supervisors, or highly compensated, as
prohibited under Section 401(a)(4) of the Internal Revenue Code.
(7) Benefits paid under this chapter, IC 2-3.5-4, and IC 2-3.5-5
may not exceed the maximum benefits and contributions specified
by Section 415 of the Internal Revenue Code. If a participant's
benefits under this chapter, IC 2-3.5-4, and IC 2-3.5-5 would
exceed those maximum benefits and contributions, the benefit
payable under IC 2-3.5-4 shall be reduced as necessary.
(8) The salary taken into account under this chapter, IC 2-3.5-4,
and IC 2-3.5-5 may not exceed the applicable amount under
Section 401(a)(17) of the Internal Revenue Code.
(9) The PERF board may not engage in a transaction prohibited
by Section 503(b) of the Internal Revenue Code.
(b) The
(1) determine eligibility for and make payments of benefits under this chapter, IC 2-3.5-4, and IC 2-3.5-5;
(2) in accordance with the powers and duties granted in
(3) provide by rule for the implementation of this chapter,
IC 2-3.5-4, and IC 2-3.5-5; and
(4) authorize deposits.
(c) A determination by the PERF board may be appealed under
IC 4-21.5.
(d) The powers and duties of:
(1) the director and the actuary of the PERF 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, IC 5-10.5-4, and IC 5-10.5-6.
(e) The PERF board may hire additional personnel, including
hearing officers, to assist in the implementation of this chapter.
(f) Legislators' retirement system records of individual participants
and participants' information are confidential, except for the name and
years of service of a retirement system participant.
(1) The
(A) invest in one (1) or more commingled or pooled funds that consist in part or entirely of mortgages that qualify as five star mortgages under the program established by IC 24-5-23.6; or
(B) otherwise invest in mortgages that qualify as five star mortgages under the program established by IC 24-5-23.6.
(2) The programs should represent a variety of investment objectives.
(3) The programs may not permit a member to withdraw money from the member's account, except as provided in section 6 of this chapter.
(4) All administrative costs of each alternative program shall be paid from the earnings on that program.
(5) A valuation of each member's account must be completed as of:
(A) the last day of each quarter; or
(B) a time that the board may specify by rule.
(b) A member shall direct the allocation of the amount credited to the member among the available alternative investment funds, subject to the following conditions:
(1) A member may make a selection or change an existing selection under rules established by the
(2) The
(3) A member may select any combination of the available investment funds, in ten percent (10%) increments or smaller increments that may be established by the rules of the board.
(4) A member's selection remains in effect until a new selection is made.
(5) On the effective date of a member's selection, the board shall reallocate the member's existing balance or balances in accordance with the member's direction, based on the market value on the effective date.
(6) If a member does not make an investment selection of the alternative investment programs, the member's account shall be invested in the
(7) All contributions to the member's account shall be allocated as of the last day of the quarter in which the contributions are received or at an alternate time established by the rules of the board in accordance with the member's most recent effective direction. The
(c) When a member transfers the amount credited to the member from one (1) alternative investment program to another alternative investment program, the amount credited to the member shall be valued at the market value of the member's investment, as of the day before the effective date of the member's selection or at an alternate time established by the rules of the board. When a member retires, becomes disabled, dies, or withdraws from the fund, the amount credited to the member shall be the market value of the member's investment as of the last day of the quarter preceding the member's distribution or annuitization at retirement, disability, death, or withdrawal, plus contributions received after that date or at an alternate time established by the rules of the board.
(d) The
(1) The market value shall exclude the employer contributions and employee contributions received during the quarter ending on the current allocation date.
(2) The market value as of the immediately preceding quarter end date shall include the employer contributions and employee contributions received during that preceding quarter.
(3) The market value as of the immediately preceding quarter end date shall exclude benefits paid from the fund during the quarter ending on the current quarter end date.
(b) This subsection applies after December 31, 2008. Notwithstanding IC 2-3.5-2-10, as used in this section, "salary" means the total of the following amounts paid to a participant by the state for performing legislative services in the year in which the amounts are paid, determined without regard to any salary reduction agreement established under Section 125 or Section 457 of the Internal Revenue Code:
(1) Salary.
(2) Business per diem allowance and allowances paid in lieu of the submission of claims for reimbursement (but excluding any allowances paid for mileage).
(3) Allowances paid to officers of the house of representatives and the senate.
(c) This subsection applies after December 31, 2008. The state shall make a contribution to the defined contribution fund on behalf of each participant on June 30 of each year. The amount of the contribution is determined by multiplying the participant's salary for that year by a percentage determined for that year by the
(d) This subsection applies after December 31, 2008. The
(1) The rate of the state's normal contribution for its employees to PERF, as determined under IC 5-10.2-2-11.
(2) The rate at which the state makes contributions to annuity savings accounts on behalf of state employees who are members
of PERF, as specified in IC 5-10.2-3-2 and IC 5-10.3-7-9.
(e) This subsection applies after December 31, 2008. The budget
agency shall confirm the percentage determined by the PERF board.
The percentage confirmed by the budget agency may not exceed the
total contribution rate paid that year by the state to PERF for state
employees.
(b) The withdrawal amount shall be paid in a lump sum, a partial lump sum, a monthly annuity as purchased by the
(1) the surviving spouse of the participant;
(2) if there is no surviving spouse, a surviving dependent or the surviving dependents of the participant; or
(3) if there is no surviving spouse and no surviving dependent, the estate of the participant.
(b) Amounts payable under this section shall be paid in a lump sum, a partial lump sum, a monthly annuity as purchased by the
(1) Department of state revenue.
(2) Department of workforce development.
(3) The programs administered by:
(A) the division of family resources;
(B) the division of mental health and addiction;
(C) the division of disability and rehabilitative services;
(D) the division of aging; and
(E) the office of Medicaid policy and planning;
of the office of the secretary of family and social services.
(4) Auditor of state.
(5) State personnel department.
(6) Secretary of state, with respect to the registration of broker-dealers, agents, and investment advisors.
(7) The legislative ethics commission, with respect to the registration of lobbyists.
(8) Indiana department of administration, with respect to bidders on contracts.
(9) Indiana department of transportation, with respect to bidders on contracts.
(10) Indiana professional licensing agency.
(11) Department of insurance, with respect to licensing of insurance producers.
(12) The department of child services.
(13) A pension fund administered by the board of trustees of the Indiana public
(b) The bureau of motor vehicles may, notwithstanding this chapter, require the following:
(1) That an individual include the individual's Social Security number in an application for an official certificate of title for any vehicle required to be titled under IC 9-17.
(2) That an individual include the individual's Social Security number on an application for registration.
(3) That a corporation, limited liability company, firm, partnership, or other business entity include its federal tax identification number on an application for registration.
(c) The Indiana department of administration, the Indiana department of transportation, and the Indiana professional licensing agency may require an employer to provide its federal employer identification number.
(d) The department of correction may require a committed offender to provide the offender's Social Security number for purposes of matching data with the Social Security Administration to determine benefit eligibility.
(e) The Indiana gaming commission may, notwithstanding this chapter, require the following:
(1) That an individual include the individual's Social Security number:
(A) in any application for a riverboat owner's license,
supplier's license, or occupational license; or
(B) in any document submitted to the commission in the
course of an investigation necessary to ensure that gaming
under IC 4-32.2, IC 4-33, and IC 4-35 is conducted with
credibility and integrity.
(2) That a sole proprietorship, a partnership, an association, a
fiduciary, a corporation, a limited liability company, or any other
business entity include its federal tax identification number on an
application for a riverboat owner's license or supplier's license.
(f) Notwithstanding this chapter, the department of education
established by IC 20-19-3-1 may require an individual who applies to
the department for a license or an endorsement to provide the
individual's Social Security number. The Social Security number may
be used by the department only for conducting a background
investigation, if the department is authorized by statute to conduct a
background investigation of an individual for issuance of the license or
endorsement.
(1) The disclosure of the Social Security number is expressly required by state law, federal law, or a court order.
(2) The individual expressly consents in writing to the disclosure of the individual's Social Security number.
(3) The disclosure of the Social Security number is:
(A) made to comply with:
(i) the USA Patriot Act of 2001 (P.L. 107-56); or
(ii) Presidential Executive Order 13224; or
(B) to a commercial entity for the permissible uses set forth in the:
(i) Drivers Privacy Protection Act (18 U.S.C. 2721 et seq.);
(ii) Fair Credit Reporting Act (15 U.S.C. 1681 et seq.); or
(iii) Financial Modernization Act of 1999 (15 U.S.C. 6801 et seq.).
(4) The disclosure of the Social Security number is for the purpose of administration of a state agency employee's or the state agency employee's dependent's health benefits.
(5) The disclosure of the Social Security number is for the purpose of administration of:
(A) a pension fund administered by the board of trustees of the Indiana public
(b) A state agency's disclosure of the Social Security number of an individual in compliance with subsection (a) does not violate IC 5-14-3-4(a)(12).
(b) There is hereby created the Indiana tobacco master settlement agreement fund for the purpose of depositing and distributing money received under the master settlement agreement. The fund consists of:
(1) all money received by the state under the master settlement agreement;
(2) appropriations made to the fund by the general assembly; and
(3) grants, gifts, and donations intended for deposit in the fund.
(c) The fund shall be administered by the budget agency. Notwithstanding IC 5-13, the treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as money is invested by the Indiana public
(d) The state general fund is not liable for payment of a shortfall in expenditures, transfers, or distributions from the Indiana tobacco master settlement agreement fund or any other fund due to a delay, reduction, or cancellation of payments scheduled to be received by the state under the master settlement agreement. If such a shortfall occurs in any state fiscal year, the budget agency shall make the full transfer
to the regional health facilities construction account and then reduce all
remaining expenditures, transfers, and distributions affected by the
shortfall.
(b) The fund consists of:
(1) amounts, if any, that another statute requires to be distributed to the fund from the Indiana tobacco master settlement agreement fund;
(2) appropriations to the fund from other sources;
(3) grants, gifts, and donations intended for deposit in the fund; and
(4) interest that accrues from money in the fund.
(c) The fund shall be administered by the state department of health. Notwithstanding IC 5-13, the treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as money is invested by the Indiana public
(d) All income and assets of the executive board deposited in the fund are for the use of the state department of health after appropriation.
(1) amounts, if any, that another statute requires to be distributed to the fund from the Indiana tobacco master settlement agreement fund;
(2) appropriations to the fund from other sources;
(3) grants, gifts, and donations intended for deposit in the fund;
and
(4) interest that accrues from money in the fund.
(b) The expenses of administering the fund shall be paid from
money in the fund.
(c) Notwithstanding IC 5-13, the treasurer of state shall invest the
money in the fund not currently needed to meet the obligations of the
fund in the same manner as money is invested by the Indiana public
employees retirement fund system under IC 5-10.3-5. The treasurer of
state may contract with investment management professionals,
investment advisors, and legal counsel to assist in the management of
the fund and may pay the state expenses incurred under those contracts.
(d) Money in the fund at the end of the state fiscal year does not
revert to the state general fund and remains available for expenditure.
(b) This section does not prohibit any of the following:
(1) The purchase of title insurance by a state agency.
(2) The purchase of insurance by a body corporate and politic.
(3) The purchase of insurance to meet requirements for receipt of federal funds by a state agency.
(4) The requiring of contractors to carry insurance.
(5) The purchase of insurance to cover loss or damage to real property owned by the Indiana public
(6) The purchase of insurance to cover loss or destruction of money or securities under the control of the treasurer of state.
(7) The purchase of insurance by a state agency to cover loss or damage to exhibits, artifacts, or other materials that are loaned to the agency.
(8) The purchase of casualty and liability insurance for foster parents (as defined in IC 27-1-30-4) on a group basis.
(1) the public employees' retirement fund (IC 5-10.3);
(2) the Indiana state teachers' retirement fund (IC 5-10.4);
(3) the Indiana state police pre-1987 benefit system (IC 10-12-3);
(4) the Indiana state police 1987 benefit system (IC 10-12-4); or
(5) any other public pension or employee retirement fund administered by the board of trustees of the Indiana public
employees' retirement fund. system.
(b) Investments of the funds listed in subsection (a) are subject to
the following limitations and regulations:
(1) Investments of the public employees' retirement fund and any
other public pension or employee retirement fund administered
by the board of trustees of the Indiana public employees'
retirement fund system are subject to IC 5-10.3-5-3, including
P.L.37-1996, and IC 5-10.5-5.
(2) Investments of the Indiana state teachers' retirement fund are
subject to IC 5-10.4-3-10 and IC 5-10.5-5.
(3) Investments of the Indiana state police benefit system are
subject to IC 10-12-2-2.
(1) An authority, a board, a branch, a commission, a committee, a department, a division, or other instrumentality of state government.
(2) A separate corporate body politic that adopts the plan described in subsection (b).
(3) State elected officials and their office staff.
(4) The legislative services agency.
(5) Legislative staff eligible to participate in the state employees' deferred compensation plan established by section 1 of this chapter.
However, the term does not include a state educational institution or a political subdivision.
(b) The deferred compensation committee shall adopt provisions in a defined contribution plan, under Sections 401(a) and 414(d) of the Internal Revenue Code, for the purpose of converting unused excess accrued leave to a monetary contribution for employees of a state agency. These provisions may be part of the plan and trust established under section 1.5(a) of this chapter.
(c) The deferred compensation committee is the trustee of the plan described in subsection (b). The plan must be a qualified plan, as determined by the Internal Revenue Service.
(d) The state personnel department shall adopt rules under IC 4-22-2 that it considers appropriate or necessary to implement this section. The rules adopted by the state personnel department under this section must:
(1) be consistent with the plan described in subsection (b);
(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; and
(3) apply to all state agencies.
(e) The rules adopted by the state personnel department under subsection (d) specifying the conversion formula must provide for a conversion rate under which the amount contributed on behalf of a participating employee for a day of leave that is converted under this section is equal to at least sixty percent (60%) of the employee's daily pay as of the date the leave is converted.
(f) The deferred compensation committee may adopt the following:
(1) Plan provisions governing:
(A) the investment of accounts in the plan; and
(B) the accounting for converted leave.
(2) Any other plan provisions that are necessary or appropriate for operation of the plan.
(g) The plan described in subsection (b) may be implemented only if the deferred compensation committee has received from the Internal Revenue Service any rulings or determination letters that the committee considers necessary or appropriate.
(h) To the extent allowed by:
(1) the Internal Revenue Code; and
(2) rules adopted by:
(A) the state personnel department under this section; and
(B) the board of trustees of the Indiana public
an employee of a state agency may convert unused excess accrued leave to a monetary contribution under this section and under IC 5-10.3-8-14.
(1) The state excise police, gaming agent, gaming control officer, and conservation officers' retirement plan, established under IC 5-10-5.5.
(2) The public employees' retirement fund, established under IC 5-10.3-2.
(3) The trust fund and pension trust of the department of state police, established under IC 10-12-2.
(4) The Indiana state teachers' retirement fund, established under IC 5-10.4-2.
(5) The Indiana judges' retirement fund, established under IC 33-38-6.
(6) The police officers' and firefighters' pension and disability fund established under IC 36-8-8-4.
(b) As used in this chapter, "board" means both of the following:
(1) The board of trustees of
(2) The board of trustees of the state police pension trust.
(1) "Board" refers to the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1.
employees' retirement law. fund. system established by
IC 5-10.5-3-1.
(j) (11) "Americans with Disabilities Act" refers to the Americans
with Disabilities Act (42 U.S.C. 12101 et seq.) and any
amendments and regulations related to the Act.
(k) (12) Other words and phrases when used in this chapter shall,
for the purposes of this chapter, have the meanings respectively
ascribed to them as set forth in IC 5-10.3-1.
(1) the degree of impairment of any officer determined to have a disability; and
(2) whether the disability arose in the line of duty (as defined in section 13.5 of this chapter).
(b) The impairment standards contained in the United States Department of Veterans Affairs Schedule for Rating Disabilities in effect at the time the application for disability benefits is filed with the board of trustees shall be used to determine the degree of impairment.
(c) To the extent required by the Americans with Disabilities Act, the transcripts, reports, records, and other material generated as a result of a hearing, a review, or an appeal conducted under this chapter to determine the existence of a disability, the cause of a disability, or the degree of impairment shall be:
(1) kept in separate medical files for each member; and
(2) treated as confidential medical records.
(1) The applicable pension system administered by the Indiana public
For political subdivisions the governing body shall determine the effective date by resolution. The effective date may be made retroactive to the extent permitted by federal law.
(b) The effective date of a modification for employees of political subdivisions with retirement systems which are not covered by subsection (a)
(1) the Indiana state teachers' retirement fund;
(2) the public employees' retirement fund; and
(3) the Indiana public retirement system.
(1)
(2) No part of the corpus or income of a fund may be used for or diverted to any purpose other than the exclusive benefit of the members and their beneficiaries.
(3) Forfeitures arising from severance of employment, death, or for any other reason may not be applied to increase the benefits any member would otherwise receive under the retirement fund law.
(4) If a fund is terminated, or if all contributions to a fund are completely discontinued, the rights of each affected member to the benefits accrued at the date of the termination or discontinuance, to the extent then funded, are nonforfeitable.
(5) All benefits paid from a retirement fund shall be distributed in accordance with the requirements of Section 401(a)(9) of the Internal Revenue Code and the regulations under that section. In order to meet those requirements, each retirement fund is subject to the following provisions:
(A) The life expectancy of a member, the member's spouse, or the member's beneficiary may not be recalculated after the initial determination for purposes of determining benefits.
(B) If a member dies before the distribution of the member's benefits has begun, distributions to beneficiaries must begin no later than December 31 of the calendar year immediately following the calendar year in which the member died.
(C) The amount of an annuity paid to a member's beneficiary may not exceed the maximum determined under the incidental death benefit requirement of the Internal Revenue Code.
(6) The board may not:
(A) determine eligibility for benefits;
(B) compute rates of contribution; or
(C) compute benefits of members or beneficiaries;
in a manner that discriminates in favor of members who are considered officers, supervisors, or highly compensated, as prohibited under Section 401(a)(4) of the Internal Revenue Code.
(7) Benefits paid under this chapter may not exceed the maximum benefits specified by Section 415 of the Internal Revenue Code.
(8) The salary taken into account under this chapter may not exceed the applicable amount under Section 401(a)(17) of the Internal Revenue Code.
(9) The board may not engage in a transaction prohibited by Section 503(b) of the Internal Revenue Code.
(b)
of any other persons or entities. This authority includes, but is not
limited to, the power to invest in commingled or pooled funds,
partnerships, or mortgage pools, including pools that consist in part or
entirely of mortgages that qualify as five star mortgages under the
program established by IC 24-5-23.6. In the event of any such
investment, the board shall keep separate detailed records of the assets
invested. Any decision to commingle or pool assets is subject to the
limitations and restrictions set forth in IC 5-10.3-5-3, and
IC 5-10.4-3-10, and IC 5-10.5-5.
(1) the members' contributions; and
(2) the interest credits on these contributions in the guaranteed fund or the gain or loss in market value on these contributions in the alternative investment program, as specified in section 4 of this chapter.
Each member shall be credited individually with the amount of the member's contributions and interest credits.
(b)
(c)
(1)
(A) invest in one (1) or more commingled or pooled funds that consist in part or entirely of mortgages that qualify as five star mortgages under the program established by IC 24-5-23.6; or
(B) otherwise invest in mortgages that qualify as five star
mortgages under the program established by IC 24-5-23.6.
(2) The programs should represent a variety of investment
objectives under IC 5-10.3-5-3.
(3) No program may permit a member to withdraw money from
the member's account except as provided in IC 5-10.2-3 and
IC 5-10.2-4.
(4) All administrative costs of each alternative program shall be
paid from the earnings on that program or as may be determined
by the rules of each the board.
(5) Except as provided in section 4(e) of this chapter, a valuation
of each member's account must be completed as of:
(A) the last day of each quarter; or
(B) another time as each the board may specify by rule.
(d) The board must prepare, at least annually, an analysis of the
guaranteed program and each alternative investment program. This
analysis must:
(1) include a description of the procedure for selecting an
alternative investment program;
(2) be understandable by the majority of members; and
(3) include a description of prior investment performance.
(e) A member may direct the allocation of the amount credited to
the member among the guaranteed fund and any available alternative
investment funds, subject to the following conditions:
(1) A member may make a selection or change an existing
selection under rules established by each the board. A The board
shall allow a member to make a selection or change any existing
selection at least once each quarter.
(2) The board shall implement the member's selection beginning
on the first day of the next calendar quarter that begins at least
thirty (30) days after the selection is received by the board or on
an alternate date established by the rules of each the board. This
date is the effective date of the member's selection.
(3) A member may select any combination of the guaranteed fund
or any available alternative investment funds, in ten percent
(10%) increments or smaller increments that may be established
by the rules of each the board.
(4) A member's selection remains in effect until a new selection
is made.
(5) On the effective date of a member's selection, the board shall
reallocate the member's existing balance or balances in
accordance with the member's direction, based on:
(A) for an alternative investment program balance, the market
value on the effective date; and
(B) for any guaranteed program balance, the account balance
on the effective date.
All contributions to the member's account shall be allocated as of
the last day of that quarter or at an alternate time established by
the rules of each the board in accordance with the member's most
recent effective direction. The board shall not reallocate the
member's account at any other time.
(f) When a member who participates in an alternative investment
program transfers the amount credited to the member from one (1)
alternative investment program to another alternative investment
program or to the guaranteed program, the amount credited to the
member shall be valued at the market value of the member's
investment, as of the day before the effective date of the member's
selection or at an alternate time established by the rules of each the
board. When a member who participates in an alternative investment
program retires, becomes disabled, dies, or suspends membership and
withdraws from the fund, the amount credited to the member shall be
the market value of the member's investment as of the last day of the
quarter preceding the member's distribution or annuitization at
retirement, disability, death, or suspension and withdrawal, plus
contributions received after that date or at an alternate time established
by the rules of each the board.
(g) When a member who participates in the guaranteed program
transfers the amount credited to the member to an alternative
investment program, the amount credited to the member in the
guaranteed program is computed without regard to market value and is
based on the balance of the member's account in the guaranteed
program as of the last day of the quarter preceding the effective date of
the transfer. However, each the board may by rule provide for an
alternate valuation date. When a member who participates in the
guaranteed program retires, becomes disabled, dies, or suspends
membership and withdraws from the fund, the amount credited to the
member shall be computed without regard to market value and is based
on the balance of the member's account in the guaranteed program as
of the last day of the quarter preceding the member's distribution or
annuitization at retirement, disability, death, or suspension and
withdrawal, plus any contributions received since that date plus interest
since that date. However, each the board may by rule provide for an
alternate valuation date.
JULY 1, 2012]: Sec. 4. (a) Except as provided in subsection (e),
interest shall be credited and compounded at least annually on all
amounts credited to the member in the guaranteed program. For the
guaranteed program, the board shall annually establish an interest
credit rate equal to or less than the investment income earned.
(b) Except as provided in subsection (e), the market value of each
alternative investment program shall be allocated at least annually to
the members participating in that program.
(c) Contributions to the guaranteed program and the alternative
investment programs shall be invested as of the last day of the quarter
in which the contributions are received or at an alternate time
established by the rules of each the board. Contributions to the
guaranteed program shall begin to accumulate interest at the beginning
of the quarter after the quarter in which the contributions are received
or at an alternate time established by the rules of each the board.
(d) When a member retires or withdraws with a balance in the
guaranteed program, a proportional interest credit determined by the
board shall be granted for the period elapsed since the last interest date
on that balance.
(e) This subsection applies whenever the board is required to
establish an interest or earnings rate in order to credit interest or
earnings to an omitted contribution to a member's annuity savings
account. As used in this subsection, "omitted contribution" means a
contribution contributed by or on behalf of a member under
IC 5-10.3-7-9 or IC 5-10.4-4-11 that is received by the board after the
time required by IC 5-10.3-7-12.5 or IC 5-10.4-7-6(b)(1).
Notwithstanding any law to the contrary, each the board may by rule
specify:
(1) a single composite interest rate and the period to which the
rate applies for the purpose of computing the interest credits on
a member's contributions (including omitted contributions) in the
guaranteed fund; and
(2) a single composite earnings rate for the gain or loss in market
value for each alternative investment program and the period to
which the rate applies for the purpose of computing the gain or
loss in market value on a member's contributions (including
omitted contributions) in the alternate investment program.
retirement fund consists of the retirement fund, exclusive of the annuity
savings account. The retirement allowance account also includes any
amounts received under IC 5-10.3-12-24(b). 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. each contribution rate group.
(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.
(1) the normal contribution for each contribution rate group, which is the amount necessary to fund the pension portion of the retirement benefit;
(2) the rate of normal contribution;
(3) the unfunded accrued liability of the public employees' retirement fund, the pre-1996 account, and the 1996 account, which is the excess of total accrued liability over the fund's or account's total assets, respectively; and
(4) the period, which must be thirty (30) years or a shorter period, necessary to amortize the unfunded accrued liability determined in subdivision (3).
(b) Based on the information in subsection (a),
(c) The board's determinations under subsection (a):
(1) are subject to sections 1.5 and 11.5 of this chapter; and
(2) for an employer making a contribution to the Indiana state
teachers' retirement fund, may not include an amount for a retired
member of the Indiana state teachers' retirement fund for whom
the employer may not make contributions during the member's
period of reemployment as provided under IC 5-10.2-4-8(d).
(1) the state's normal contribution for its employees to the public employees' retirement fund, the pre-1996 account, and the 1996 account, as determined in section 11 of this chapter;
(2) at least the anticipated increase in the state's unfunded accrued liability in each fund, other than the pre-1996 account, as estimated by
(3) the state's obligation as estimated by
The request for this sum for each fund shall be submitted to the budget agency as one (1) item for each fund.
(b) The biennial appropriation specified in subsection (a) of this section shall be paid annually to each fund covered by this article that satisfies the conditions of section 1.5 of this chapter in equal installments in July of each year of the biennium.
(c) The biennial appropriation under this section shall be deposited in the trust of each fund and used only as provided in section 1.5 of this chapter.
(b) The agreement may contain such terms as the board considers desirable including:
(1) the custody, safeguarding or indemnity, servicing, handling and delivery of the securities and other investments; and
(2) the payment of taxes, fees of the custodian, and other expenses
and payments required in connection with the securities and
investments.
(c) Any person, firm, limited liability company, or corporation
authorized to service mortgage loans guaranteed by the federal housing
administration may be authorized by the board to service a mortgage
loan held by the fund.
(d) Each The board may authorize its custodian to enter into a
securities lending program agreement, under which the securities held
by each fund may be loaned in order to provide revenue to the fund.
Such an agreement must require that collateral be pledged in excess of
the total market value of the loaned securities.
(b) No member may be required to pay any contributions for service before the member is covered by this article as a condition precedent to receiving benefits under this article. However, the member must furnish to the board proof of the service
(c) A member who has past service as an employee of the state or a participating political subdivision in a position which was not covered by the retirement fund is entitled to credit for this service if the position becomes covered before January 1, 1985, by the Indiana state teachers' retirement fund, the public employees' retirement fund, or the retirement fund for the state board of accounts and if the member submits to the board proof of the service
(d) A member who has past service in a position that was not covered by the retirement fund is entitled to credit for this service if the position becomes covered after December 31, 1984, by a fund while the member holds that position or another position with the same employer and if the member submits to the board proof of the service
(e) The proof required by this section must:
(1) be submitted in a form approved by the director;
(2) contain dates and nature of service and other information required by the director; and
(3) be certified by the governing body or its agent.
(f) A member who is a state employee is entitled to service credit for the time the member is receiving disability benefits under a disability plan established under IC 5-10-8-7.
(g) If a participant in the legislators' defined benefit plan does not become entitled to a benefit from that plan, the
(h) A member may receive service credit for all or a part of the member's creditable service in another governmental retirement plan under IC 5-10.3-7-4.5 and IC 5-10.4-4-4. A member may not receive credit for service for which the member receives service credit in another retirement plan maintained by a state, a political subdivision, or an instrumentality of the state for service that PERF or TRF would otherwise give credit.
(i) A member may use all or a part of the member's creditable service under PERF or TRF in another governmental retirement plan under the terms of the other plan. Creditable service used under the other governmental retirement plan may not be used in PERF or TRF.
(1) the basic salary earned by and paid to the member; plus
(2) the amount that would have been a part of the basic salary earned and paid except for the member's salary reduction agreement established under Section 125, 403(b), or 457 of the Internal Revenue Code.
(b) Except in cases where:
(1) the contribution is made on behalf of the member; or
(2) a retired member of the Indiana state teachers' retirement fund may not make contributions during a period of reemployment as provided in IC 5-10.2-4-8(d);
each member shall, as a condition of employment, contribute to the fund three percent (3%) of the member's compensation.
(c) Except as provided in IC 5-10.2-4-8(d), a member of a fund may make contributions to the member's annuity savings account in addition
to the contributions required under subsection (b). The total amount of
contributions that may be made to a member's annuity savings account
with respect to a payroll period under this subsection may not exceed
ten percent (10%) of the member's compensation for that payroll
period. The contributions made under this subsection may be picked-up
and paid by an employer as provided in subsection (d).
(d) In compliance with rules adopted by each the board, an
employer, under Section 414(h)(2) of the Internal Revenue Code, may
pick-up and pay the contributions under subsection (c), subject to
approval of the board and to the board's receipt of a favorable private
letter ruling from the Internal Revenue Service. The employer shall
reduce the member's compensation by an amount equal to the amount
of the member's contributions under subsection (c) that are picked-up
by the employer. Each The board shall by rule establish the procedural
requirements for employers to carry out the pick-up in compliance with
Section 414(h)(2) of the Internal Revenue Code.
(e) A member's contributions and interest credits belong to the
member and do not belong to the state or political subdivision.
(1) The retirement date chosen by the member.
(2) If the member has not elected to withdraw the entire amount in the member's annuity savings account under IC 5-10.2-3-6.5, whether the member chooses:
(A) an annuity purchased from the amount credited to the member in the annuity savings account;
(B) a total or partial distribution from the annuity savings account under section 2(b) of this chapter; or
(C) a deferral of the payment of any benefits from the annuity savings account under section 2(c) of this chapter.
(3) The name of the beneficiary or beneficiaries designated by the member with respect to the pension portion of the member's retirement benefit.
(4) The name of the beneficiary or beneficiaries designated by the member with respect to the annuity portion of the member's retirement benefit, unless the member chooses total distribution under section 2 of this chapter.
(b) A member's designation of beneficiaries in the application for retirement benefits supersedes any previous designation of
beneficiaries by the member.
(c) A member must indicate the name, address, date of birth, and
Social Security number of each designated beneficiary and provide
proof of birth of each designated beneficiary.
(d) Each The board shall adopt a form for the application for
retirement benefits that meets the requirements of this section.
(b) If a member has not elected to withdraw the entire amount in the member's annuity savings account under IC 5-10.2-3-6.5, a member may choose at retirement or upon a disability retirement to receive a distribution of:
(1) the entire amount credited to the member in the annuity savings account; or
(2) an amount equal to the member's federal income tax basis in the member's annuity savings account balance as it existed on December 31, 1986.
If the member chooses to receive the distribution under subdivision (1), the member is not entitled to an annuity as part of the retirement or disability benefit. If the member chooses to receive the distribution under subdivision (2), the member is entitled to an annuity purchasable by the amount remaining in the member's annuity savings account after the payment under subdivision (2).
(c) Instead of choosing to receive the benefits described in subsection (a) or (b), if a member has not elected to withdraw the entire amount in the member's annuity savings account under IC 5-10.2-3-6.5,
a member may choose upon retirement or upon disability retirement to
begin receiving a pension provided by employer contributions and to
defer receiving in any form the member's annuity savings account. If
a member chooses this option, the member:
(1) is not entitled to an annuity as part of the member's retirement
or disability benefit, and the member's annuity savings account
will continue to be invested according to the member's direction
under IC 5-10.2-2-3; and
(2) may later choose, as of the first day of a month, or an alternate
date established by the rules of each the board, to receive a
distribution of:
(A) the entire amount credited to the member in the annuity
savings account; or
(B) an amount equal to the member's federal income tax basis
in the member's annuity savings account balance as it existed
on December 31, 1986.
If the member chooses to receive the distribution under subdivision
(2)(A), the member is not entitled to an annuity as part of the member's
retirement or disability benefit. If the member chooses to receive the
distribution under subdivision (2)(B), the member is entitled to an
annuity purchasable by the amount remaining in the member's annuity
savings account after the payment under subdivision (2)(B). If the
member does not choose to receive a distribution under this subsection,
the member is entitled to an annuity purchasable by the entire amount
in the member's annuity savings account, and the form of the annuity
shall be as described in subsection (d) unless the member elects an
option described in section 7(b)(1), 7(b)(2), or 7(b)(4) of this chapter.
The amount to be paid under this section shall be determined in the
manner described in IC 5-10.2-2-3. However, each the board may by
rule provide for an alternate valuation date.
(d) Retirement benefits must be distributed in a manner that
complies with Section 401(a)(9) of the Internal Revenue Code, as
specified in IC 5-10.2-2-1.5.
(1) the member has at least five (5) years of creditable service before the:
(A) termination of a salary or employer provided income protection benefits or Family and Medical Leave Act leave; or
(B) exhaustion of all worker's compensation benefits;
(2) the member has qualified for Social Security disability benefits and has furnished proof of the Social Security qualification to the board; and
(3) at least once each year until the member reaches age sixty-five (65) a representative of the board verifies the continued disability.
For the purposes of this section, a member of the public employees' retirement fund who has qualified for disability benefits under the federal civil service system is considered to have met the requirement of subdivision (2) if the member furnishes proof of the qualification to the board.
(b) Benefits for disability shall be paid beginning with the month following the onset of disability as determined by the Social Security Administration. The benefit is the retirement benefit specified in section 4 of this chapter with the pension computed using only the years of creditable service worked to the date of disability and without reduction for early retirement.
(c) The member may have the member's benefit paid under any of the retirement benefit options specified in section 7 of this chapter, except that the member may not choose to have the member's disability retirement benefit paid under the method specified under section 7(b)(3) of this chapter.
(d) This section applies to:
(1) a member of the public employees' retirement fund who became disabled after June 30, 1973; and
(2) a member of the Indiana state teachers' retirement fund who becomes disabled after June 30, 1984, and who chooses disability retirement under this section.
(e) To the extent required by the Americans with Disabilities Act (42 U.S.C. 12101 et seq.) and any amendments and regulations to the Act, the transcripts, records, and other material compiled to determine the existence of a disability shall be:
(1) kept in separate medical files for each member; and
(2) treated as confidential medical records.
(f) A member may continue to receive disability benefits from the public employees' retirement fund or the Indiana state teachers'
retirement fund so long as the member is entitled to receive Social
Security benefits, including periods of trial employment or
rehabilitation under the Social Security guidelines. However, during a
period of trial employment or rehabilitation, service credit may not be
granted under the public employees' retirement fund or the Indiana
state teachers' retirement fund.
(g) If the fund is authorized to make, in the form of a single check
or a series of checks, a one (1) time distribution that does not increase
the pension portion of the monthly benefit, the distribution must
include members eligible for disability benefits. A member eligible for
disability benefits is required to meet all additional requirements
necessary to receive the check or series of checks issued by the fund
under this subsection.
(b) A member who retires is entitled to receive monthly retirement benefits, which are guaranteed for five (5) years or until the member's death, whichever is later. A member may select in writing any of the following nonconflicting options for the payment of the member's retirement benefits instead of the five (5) year guaranteed retirement benefit payments. The amount of the optional payments shall be determined under rules of the board and shall be the actuarial equivalent of the benefit payable under sections 4, 5, and 6 of this chapter. A member who has elected to withdraw the entire amount in the member's annuity savings account under IC 5-10.2-3-6.5 may not select the cash refund annuity option.
(1) Joint and Survivor Option.
(A) The member receives a decreased retirement benefit during the member's lifetime, and there is a benefit payable after the member's death to a designated beneficiary during the lifetime of the beneficiary, which benefit equals, at the option of the member, either the full decreased retirement benefit or two-thirds (2/3) or one-half (1/2) of that benefit.
(B) If the member dies before retirement, the designated beneficiary may receive only the amount credited to the member in the annuity savings account unless the designated beneficiary is entitled to survivor benefits under IC 5-10.2-3.
(C) If the designated beneficiary dies before the member retires, the selection is automatically canceled and the member may make a new beneficiary election and may elect a different
form of benefit under this subsection.
(2) Benefit with No Guarantee. The member receives an increased
lifetime retirement benefit without the five (5) year guarantee
specified in this subsection.
(3) Integration with Social Security. If the member retires before
the age of eligibility for Social Security benefits, in order to
provide a level benefit during the member's retirement the
member receives an increased retirement benefit until the age of
Social Security eligibility and decreased retirement benefits after
that age.
(4) Cash Refund Annuity. The member receives a lifetime annuity
purchasable by the amount credited to the member in the annuity
savings account, and the member's designated beneficiary
receives a refund payment equal to:
(A) the total amount used in computing the annuity at the
retirement date; minus
(B) the total annuity payments paid and due to the member
before the member's death.
(c) This subsection does not apply to a member of the Indiana state
teachers' retirement fund after June 30, 2007, or to a member of the
public employees' retirement fund after June 30, 2008. If:
(1) the designated beneficiary dies while the member is receiving
benefits; or
(2) the member is receiving benefits, the member marries, either
for the first time or following the death of the member's spouse,
after the member's first benefit payment is made, and the
member's designated beneficiary is not the member's current
spouse or the member has not designated a beneficiary;
the member may elect to change the member's designated beneficiary
or form of benefit under subsection (b) and to receive an actuarially
adjusted and recalculated benefit for the remainder of the member's life
or for the remainder of the member's life and the life of the newly
designated beneficiary. The member may not elect to change to a five
(5) year guaranteed form of benefit. If the member's new election is the
joint and survivor option, the member shall indicate whether the
designated beneficiary's benefit shall equal, at the option of the
member, either the member's full recalculated retirement benefit or
two-thirds (2/3) or one-half (1/2) of this benefit. The cost of
recalculating the benefit shall be borne by the member and shall be
included in the actuarial adjustment.
(d) Except as provided in subsection (c) or section 7.2 of this
chapter, a member who files for regular or disability retirement may not
change:
(1) the member's retirement option under subsection (b);
(2) the selection of a lump sum payment under section 2 of this
chapter; or
(3) the beneficiary designated on the member's application for
benefits if the member selects the joint and survivor option under
subsection (b)(1);
after the first day of the month in which benefit payments are scheduled
to begin. For purposes of this subsection, it is immaterial whether a
benefit check has been sent, received, or negotiated.
(e) A member may direct that the member's retirement benefits be
paid to a revocable trust that permits the member unrestricted access
to the amounts held in the revocable trust. The member's direction is
not an assignment or transfer of benefits under IC 5-10.3-8-10 or
IC 5-10.4-5-14.
(f) Each The board may adopt a policy to permit annual payment of
a member's retirement benefit whenever the amount of the monthly
retirement benefit to be paid to the member is not more than five
dollars ($5).
(b) If a member who is receiving retirement benefits is reemployed in a position covered by this article not more than thirty (30) days after the member's retirement, the member's retirement benefits shall stop, the member shall begin making contributions as required by IC 5-10.2-3-2, and employer contributions shall be made throughout the period of reemployment.
(c) This subsection does not apply to a member of the Indiana state teachers' retirement fund who is reemployed more than thirty (30) days after the member's retirement in a position covered by the Indiana state teachers' retirement fund. If a retired member is reemployed in a position covered by this article, section 10 of this chapter applies to the
member upon the member's retirement from reemployment.
(d) Subject to subsection (f), the following apply to a member of the
Indiana state teachers' retirement fund who is reemployed more than
thirty (30) days after the member's retirement in a position covered by
the Indiana state teachers' retirement fund:
(1) The member's retirement benefit payments continue during the
member's period of reemployment without regard to the amount
of the member's earnings from the covered position.
(2) The member may not make contributions under IC 5-10.2-3-2
or IC 5-10.4-4-11 during the member's period of reemployment.
(3) The member's employer may not make contributions under
IC 5-10.2-2-11 or IC 5-10.4-4-11 for or on behalf of the member
during the member's period of reemployment.
(4) The member does not earn creditable service under
IC 5-10.2-3-1 for the member's period of reemployment.
(5) The member is not entitled to an additional benefit under
sections 9 and 10 of this chapter for the member's period of
reemployment.
(e) The thirty (30) day period provided for in this section may be
implemented unless the board of trustees of the fund receives a
determination from the Internal Revenue Service prohibiting the
implementation.
(f) After July 31, 2009, if, on or before the date the member files an
application for retirement benefits under this article, a member has a
formal or informal agreement with an employer covered by this article
to become reemployed in a position covered by this article after the
member's retirement, regardless of the time frame between the
member's retirement and the member's reemployment, the member's
application for retirement benefits is void, and the following apply to
the member's continued employment:
(1) If a member has received a retirement benefit:
(A) the member's retirement benefit shall stop; and
(B) the member shall repay the amount of the retirement
benefit received.
(2) The member shall make contributions as required by
IC 5-10.2-3-2 throughout the period of the member's continued
employment.
(3) Employer contributions shall be made throughout the period
of the member's continued employment.
(4) The member shall earn creditable service under IC 5-10.2-3-1
for the member's continued employment.
(5) When the period of the member's continued employment
terminates, the member may again file an application for
retirement benefits under this chapter.
(b) The increases specified in this section:
(1) are based upon the date of the member's latest retirement or disability;
(2) do not apply to benefits payable in a lump sum; and
(3) are in addition to any other increase provided by law.
(b) The increases specified in this section:
(1) are based upon the date of the member's latest retirement or
disability;
(2) do not apply to benefits payable in a lump sum; and
(3) are in addition to any other increase provided by law.
(1) The costs associated with the sale, redemption, divestment, or withdrawal of an investment.
(2) The costs associated with the acquisition and maintenance of a replacement investment.
(3) A cost not described in subdivision (1) or (2) that is incurred by the fund (before July 1, 2011) or system in connection with a divestment transaction.
(1) held in an account or a fund; and
(2) managed by one (1) or more persons not employed by the fund (before July 1, 2011) or system, in which the fund (before July 1, 2011) or system owns shares or interests on behalf of a fund together with other investors not subject to this chapter.
(b) In carrying out its responsibilities under subsection (a), and at the board's discretion,
(c) A board or a research firm with which the board contracts under subsection (b) may take any of the following actions:
(1) Review publicly available information regarding companies with business operations in Sudan.
(2) Contact other institutional investors that invest in companies with business operations in Sudan.
(3) Contact asset managers contracted by the fund that invest in companies with business operations in Sudan.
(d) Not later than the first meeting of the board after March 30, 2008,
(e)
(1) that is identified under section 22 of this chapter as one in
which the a fund has direct or indirect holdings; and
(2) that has only inactive business operations;
a written notice concerning the contents of this chapter and a statement
encouraging the company to continue to refrain from initiating active
business operations in Sudan until the company is able to avoid
scrutinized business operations altogether.
(b) The fund (before July 1, 2011) or board shall continue to
correspond on a semiannual basis with scrutinized companies in which
the a fund has direct or indirect holdings and that have only inactive
business operations.
(1) that is identified under section 22 of this chapter as one in which
(2) that has active business operations;
a written notice concerning the contents of this chapter and a statement indicating that
(b) A notice sent under this section shall:
(1) offer the company the opportunity to clarify the company's Sudan related activities; and
(2) encourage the company, within ninety (90) days after the date of the written notice, to either:
(A) cease its scrutinized business operations; or
(B) convert the company's operations to inactive business operations in order to avoid divestment by the fund (before July 1, 2011) or system of
(b) If, within ninety (90) days after a fund (before July 1, 2011) or the system first engages with a company under section 24 of this chapter, the company converts its scrutinized active business
operations to inactive business operations, the company shall be
subject to the provisions of section 23 of this chapter.
(1) At least fifty percent (50%) of such assets shall be removed from
(2) One hundred percent (100%) of such assets shall be removed from
(b) If a company that ceased scrutinized active business operations following engagement under section 24 of this chapter resumes scrutinized active business operations, and only while the company continues to have active business operations, the company shall immediately be placed back on the scrutinized company list. If a fund
(c)
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2012]: Sec. 27. Except as provided in sections 28 and 29 of
this chapter, a fund (before July 1, 2011) or the system shall not
acquire for a fund securities of companies on the scrutinized company
list that have active business operations.
(b) The report must include at least the following information, as of the date of the report:
(1) A copy of the scrutinized company list.
(2) A summary of correspondence with companies engaged by the fund (before July 1, 2011) or board under sections 23 and 24 of this chapter.
(3) All investments sold, redeemed, divested, or withdrawn in compliance with section 26 of this chapter.
(4) All commingled funds that are exempted from divestment under section 26 of this chapter.
(5) All prohibited investments under section 27 of this chapter.
(6) Any progress made under section 29 of this chapter.
companies on the scrutinized company list, the fund (before July 1,
2011) or system shall be exempt from any conflicting statutory or
common law obligations, including any obligations with respect to
choice of asset managers, investment funds, or investments for fund
securities portfolios.
(b) As provided by this section, any cessation of divestment or reinvestment shall be strictly limited to the minimum steps necessary to avoid the contingency set forth in subsection (a).
(c) For any cessation of divestment, reinvestment, and subsequent ongoing investment authorized by this section, the fund (before July 1, 2011) or board shall submit a report in an electronic format under IC 5-14-6 to the legislative council for distribution to the members of the general assembly in advance of any initial reinvestment. The report shall be updated annually thereafter as applicable, setting forth the reasons and justifications for the decision to cease divestment, reinvest, or remain invested with companies with scrutinized active business operations. This section does not apply to companies that have ceased to have scrutinized business operations.
(1) the state and its officers, agents, and employees; and
(2) the fund (before July 1, 2011) or system and its board members, executive director, officers, agents, and employees;
are immune from civil liability for any act or omission related to the removal of an asset from
(b) In addition to the immunity provided under subsection (a), both:
(1) the officers, agents, and employees of the state; and
(2) the board members, executive director, officers, agents, and employees of the fund (before July 1, 2011) or system;
are entitled to indemnification from the fund (before July 1, 2011) or system for all losses, costs, and expenses, including reasonable attorney's fees, associated with defending against any claim or suit relating to an act authorized under this chapter.
(1) The costs associated with the sale, redemption, divestment, or withdrawal of an investment.
(2) The costs associated with the acquisition and maintenance of a replacement investment.
(3) A cost not described in subdivision (1) or (2) that is incurred by the fund (before July 1, 2011) or system in connection with a divestment transaction.
(1) held in an account or a fund; and
(2) managed by one (1) or more persons:
(A) who are not employed by the fund (before July 1, 2011) or system; and
(B) in which the fund (before July 1, 2011) or the system on behalf of the fund owns shares or interests together with other investors not subject to this chapter.
companies in which the a fund administered by the board has direct or
indirect holdings.
(b) In carrying out its responsibilities under subsection (a), each the
board may use existing research or contract with a research firm.
(c) A board or a research firm with which the board contracts under
subsection (b) may take any of the following actions:
(1) Review publicly available information regarding companies
with business operations in states that sponsor terror.
(2) Contact other institutional investors that have divested from
or invest in companies with business operations in states that
sponsor terror.
(3) Contact asset managers that are contracted by the fund and
that invest in companies with business operations in states that
sponsor terror.
(d) Not later than the first meeting of the board after March 30,
2010, each the board shall compile the names of all scrutinized
companies into a scrutinized company list and indicate whether each
scrutinized company has active or inactive business operations in a
state sponsor of terror.
(e) Each The board shall update its scrutinized company list at least
on an annual basis based on evolving information from sources
described in subsections (b) and (c).
(f) If the Secretary of State of the United States determines that a
country is a state sponsor of terror after June 30, 2009, each the board
shall add any additional scrutinized company resulting from the
Secretary of State's determination when each the board updates its
scrutinized company list under subsection (e).
(1) that is identified under section 18 of this chapter as one in which
(2) that has only inactive business operations;
a written notice concerning the provisions of this chapter and a
statement encouraging the company to continue to refrain from
initiating active business operations in a state sponsor of terror until the
company is able to avoid scrutinized business operations altogether.
(b) Each fund (before July 1, 2011) or the board shall continue to
correspond on a semiannual basis with scrutinized companies:
(1) in which the a fund has direct or indirect holdings; and
(2) that have only inactive business operations.
(1) that is identified under section 18 of this chapter as one in which
(2) that has active business operations;
a written notice concerning the contents of this chapter and a statement indicating that
(b) A notice sent under this section must:
(1) offer the company the opportunity to clarify the company's state sponsor of terror related activities; and
(2) encourage the company to:
(A) cease its scrutinized business operations; or
(B) convert the company's operations to inactive business operations in order to avoid divestment by the fund (before July 1, 2011) or system of
not later than one hundred eighty (180) days after the date of the notice.
(b) If, within one hundred eighty (180) days after a fund (before July 1, 2011) or the system first sends written notice to a company under section 20 of this chapter, the company converts its scrutinized active business operations to inactive business operations, the company is subject to section 19 of this chapter.
(1) At least fifty percent (50%) of the securities shall be removed from
(2) At least seventy-five percent (75%) of the securities shall be removed from
(3) One hundred percent (100%) of the securities shall be removed from
(b) If a company that ceased scrutinized active business operations following engagement under section 20 of this chapter resumes scrutinized active business operations, the company shall immediately be placed on the scrutinized company list and shall remain on the scrutinized company list while the company continues to have active business operations. If a fund
(c)
chapter.
(1) before July 1, 2011, a fund shall not acquire; and
(2) after June 30, 2011, the system shall not acquire for a fund;
securities of companies on the scrutinized company list that have active business operations.
(b) A report submitted by the board
(1) A copy of the fund's scrutinized company list.
(2) A summary of correspondence between the
(3) All investments sold, redeemed, divested, or withdrawn by the
fund board in compliance with section 22 of this chapter.
(4) All commingled funds that are exempted from divestment
under section 22 of this chapter.
(5) All companies whose securities the fund system is prohibited
from acquiring under section 23 of this chapter.
(6) Any progress made under section 21 of this chapter.
(1) the state and its officers, agents, and employees; and
(2) each fund (before July 1, 2011) or the system and its board members, executive director, officers, agents, and employees;
are immune from civil liability for any act or omission related to the removal of an asset from
(b) In addition to the immunity provided under subsection (a), both:
(1) the officers, agents, and employees of the state; and
(2) the board members, executive director, officers, agents, and employees of a fund (before July 1, 2011) or the system;
are entitled to indemnification from the fund for all losses, costs, and expenses, including reasonable attorney's fees, associated with defending against any claim or suit relating to an act authorized under this chapter.
(1) members of the general assembly; or
(2) employees covered by section 3 of this chapter.
(b) An employee of the state or of a participating political subdivision who:
(1) became a full-time employee of the state or of a participating political subdivision in a covered position; and
(2) had not become a member of the fund;
before April 1, 1988, shall on April 1, 1988, become a member of the
fund unless the employee is excluded from membership under section
2 of this chapter.
(c) Any individual who becomes a full-time employee of the state
or of a participating political subdivision in a covered position after
March 31, 1988, becomes a member of the fund on the date the
individual's employment begins unless the individual is excluded from
membership under section 2 of this chapter.
(d) For the purposes of this section, "employees of the state"
includes:
(1) employees of the judicial circuits whose compensation is paid
from state funds;
(2) elected and appointed state officers;
(3) prosecuting attorneys and deputy prosecuting attorneys of the
judicial circuits, whose compensation is paid in whole or in part
from state funds, including participants in the prosecuting
attorneys retirement fund established under IC 33-39-7;
(4) employees in the classified service;
(5) employees of any state department, institution, board,
commission, office, agency, court, or division of state government
receiving state appropriations and having the authority to certify
payrolls from appropriations or from a trust fund held by the
treasurer of state or by any department;
(6) employees of any state agency which is a body politic and
corporate;
(7) except as provided under IC 5-10.5-7-4, employees of the
board of trustees of the Indiana public employees' retirement
fund; system;
(8) persons who:
(A) are employed by the state;
(B) have been classified as federal employees by the Secretary
of Agriculture of the United States; and
(C) are excluded from coverage as federal employees by the
federal Social Security program under 42 U.S.C. 410;
(9) the directors and employees of county offices of family and
children; and
(10) employees of the center for agricultural science and heritage
(the barn).
(b) 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) The board is the trustee of the account described in subsection
(b). 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) The board may adopt rules under IC 5-10.3-3-8 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); 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) 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) The account described in subsection (b) 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) To the extent allowed by:
(1) the Internal Revenue Code; and
(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) To the extent allowed by the Internal Revenue Code, the account described in subsection (b) 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).
(1) make payments from the pension relief fund;
(2) administer the pension relief fund in accordance with the powers and duties granted it in
(3) provide by rule and regulation for the implementation of this chapter.
(1) Each member's contributions to the plan under section 23 of this chapter.
(2) Contributions made by an employer to the plan on behalf of each member under section 24 of this chapter.
(3) Rollovers to the plan by a member under section 29 of this chapter.
(4) All earnings on investments or deposits of the plan.
(5) All contributions or payments to the plan made in the manner provided by the general assembly.
(b) The plan shall establish an account for each member. A member's account consists of two (2) subaccounts credited individually as follows:
(1) The member contribution subaccount consists of:
(A) the member's contributions to the plan under section 23 of this chapter; and
(B) the net earnings on the contributions described in clause
(A) as determined under section 22 of this chapter.
(2) The employer contribution subaccount consists of:
(A) the employer's contributions made on behalf of the
member to the plan under section 24 of this chapter; and
(B) the earnings on the contributions described in clause (A)
as determined under section 22 of this chapter.
The board may combine the two (2) subaccounts established under this
subsection into a single account, if the board determines that a single
account is administratively appropriate and permissible under
applicable law.
(c) If a member makes rollover contributions under section 30 29 of
this chapter, the plan shall establish a rollover account as a separate
subaccount within the member's account.
(1) prorate the expenses of administration of the fund
(2) pay the prorated expenses from those accounts.
(b) The board shall pay the expenses for the administration of the system as provided in IC 5-10.5-6-5.
(b) The following shall be deposited in the pension stabilization fund:
(1) Amounts allocated to the pension stabilization fund under
IC 4-30-16-3.
(2) A part of the employer reserve balance as determined by the
budget director so that the employer reserve is sufficient for the
cash flow needs.
(3) Other amounts appropriated to the pension stabilization fund
by the general assembly.
(c) Payments from the pension stabilization fund must equal the
pre-1996 account liabilities for the current fiscal year minus the prior
year's state general fund payments for the pre-1996 account multiplied
by the pension stabilization percentage set forth in subsection (d).
(d) The pension stabilization percentage is one hundred six percent
(106%). The budget agency, after review by the budget committee and
with the approval of the governor, may change the pension stabilization
percentage so that the present value of future payments from the fund
equal the fund's balance plus the present value of future receipts to the
fund, but the payments may not allow the fund balance to be negative.
(e) Money in the pension stabilization fund at the end of a state
fiscal year does not revert to the state general fund.
(b) Rules of the FERF board of trustees filed with the secretary of state before July 1, 1986, shall be treated after June 30, 1986, as though they had been adopted by the PERF board of trustees (as the board existed before its abolishment on July 1, 2011).
(b) Notwithstanding subsection (a), the members of FERF who were members on April 1, 1967, are entitled to receive retirement, survivor,
disability, and all other benefits as provided by IC 5-11-15-13
(repealed) before July 1, 1986.
(b) The ordinance or resolution must:
(1) specify the types of transactions that may be conducted by electronic funds transfer; and
(2) require the proper officers to maintain adequate documentation of the transactions so that they may be audited as provided by law.
(1) Approve all accounts for salaries and allowable expenses of the board, including, but not limited to:
(A) the employment of general or special attorneys, consultants, and employees and agents as may be necessary to assist the secretary-investment manager in carrying out the duties of that office and to assist the board in its consideration of applications for a guarantee of an industrial development obligation or credit enhancement obligation guarantee; and
(B) the setting of compensation of persons employed under clause (A).
(2) Approve all expenses incidental to the operation of the public deposit insurance fund.
(3) Perform other duties and functions that may be delegated to the secretary-investment manager by the board or that are necessary to carry out the duties of the secretary-investment manager under this chapter.
(b) The secretary-investment manager shall keep a record of the proceedings of the board, and shall maintain and be custodian of all books, documents, and papers filed with the board, and its official seal.
The secretary-investment manager may make copies of all minutes and
other records and documents of the board, and may give certificates
under seal of the board to the effect that the copies are true copies. All
persons dealing with the board may rely upon the certificates.
(c) Each year, beginning in 2001 and ending in 2021, after the
treasurer of state prepares the annual report required by IC 4-8.1-2-14,
the secretary-investment manager shall determine:
(1) the amount of interest earned by the public deposit insurance
fund during the state fiscal year ending on the preceding June 30,
after deducting:
(A) all expenses and other costs of the board for depositories
that were not paid from other sources during that state fiscal
year; and
(B) all expenses and other costs associated with the Indiana
education savings authority that were not paid from other
sources during that state fiscal year; and
(2) the amount of interest earned during the state fiscal year
ending on the preceding June 30 by the pension distribution fund
established by subsection (e).
(d) Subject to subsection (g), on or before the last business day of
December of each year, beginning in 2001 and ending in 2021, the
secretary-investment manager shall provide to the auditor of state a
check payable from the public deposit insurance fund to the pension
distribution fund established by subsection (e) in an amount equal to
the amount determined under subsection (c)(1).
(e) The pension distribution fund is established. The pension
distribution fund shall be administered by the treasurer of state. The
treasurer of state shall invest money in the pension distribution fund
not currently needed to meet the obligations of the pension distribution
fund in the same manner as other public money may be invested.
Interest that accrues from these investments shall be deposited in the
pension distribution fund. Money in the pension distribution fund at the
end of a state fiscal year does not revert to the state general fund.
(f) Subject to subsection (g), before June 30 and after June 30 and
before October 1 of each year, beginning in 2002 and ending in 2022,
the auditor of state shall distribute in two (2) equal installments from
the pension distribution fund to the Indiana public employees'
retirement fund system for deposit in the pension relief fund,
established by IC 5-10.3-11-1, the following:
(1) The amount determined under subsection (c)(2).
(2) The amount deposited in the pension distribution fund in
December of the preceding year under subsection (d).
The installments shall be used for distributions to units of local government under IC 5-10.3-11-4.7.
(g) Before providing a check to the auditor of state under subsection (d) in December of any year, the secretary-investment manager shall determine:
(1) the total amount of payments made from the public deposit insurance fund under IC 5-13-13-3 after June 30, 2001;
(2) the total amount of payments received by the board for depositories and deposited in the public deposit insurance fund under IC 5-13-13-3 after June 30, 2001; and
(3) the total amount of interest earned by the public deposit insurance fund after the first of the payments described in subdivision (1).
If the total amount of payments determined under subdivision (1) less the total amount of payments determined under subdivision (2) (referred to in this subsection as the "net draw on the fund") exceeds ten million dollars ($10,000,000) and also exceeds the total amount of interest determined under subdivision (3), the secretary-investment manager may not provide a check to the auditor of state under subsection (d) and a distribution may not be made from the pension distribution fund under subsection (f) in the following calendar year until the total amount of interest earned by the public deposit insurance fund equals the net draw on the fund. A check may not be provided under subsection (d) and a distribution may not be made under subsection (d) in any subsequent calendar year if a study conducted by the board under section 7(b) of this chapter demonstrates that payment of the distribution would reduce the balance of the public deposit insurance fund to a level insufficient to ensure the safekeeping and prompt payment of public funds to the extent they are not covered by insurance of any federal deposit insurance agency.
fund plan for the payment of benefits and administration costs to the
end of the fiscal year. The appropriation of funds shall be credited to
the state excise police retirement fund plan in equal installments at the
end of each month during each fiscal year.
(b) The fund consists of:
(1) money appropriated to the fund by the general assembly;
(2) money received from state or federal grants or programs for alternative energy projects; and
(3) donations, gifts, and money received from any other source, including transfers from other funds or accounts.
(c) Money in the fund is continuously appropriated for the purposes of this section.
(d) Money in the fund may be spent only in accordance with this chapter and to carry out the purposes of this chapter.
(e) The expenses of administering the fund shall be paid from money in the fund.
(f) Notwithstanding IC 5-13, the treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as money is invested by the Indiana public
(g) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
(1) funding projects, other than passenger or freight railroad systems as described in IC 8-15.7-2-14(a)(4), under IC 8-15.7 or IC 8-15-3;
(2) funding other projects in the department's transportation plan; and
(3) funding distributions under sections 6 and 7 of this chapter.
(b) The fund shall be administered by the department.
(c) Notwithstanding IC 5-13, the treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as money is invested by the Indiana public
(d) The fund consists of the following:
(1) Distributions to the fund from the toll road fund under IC 8-15.5-11.
(2) Distributions to the fund from the next generation trust fund under IC 8-14-15.
(3) Appropriations to the fund.
(4) Gifts, grants, loans, bond proceeds, and other money received for deposit in the fund.
(5) Revenues arising from:
(A) a tollway under IC 8-15-3 or IC 8-23-7-22; or
(B) a toll road under IC 8-15-2 or IC 8-23-7-23;
that the department designates as part of, and deposits in, the fund.
(6) Payments, other than payments for passenger or freight railroad systems as described in IC 8-15.7-2-14(a)(4), made to the authority or the department from operators under IC 8-15.7.
(7) Interest, premiums, or other earnings on the fund.
(e) The fund is considered a trust fund for purposes of IC 4-9.1-1-7. Money may not be transferred, assigned, or otherwise removed from the fund by the state board of finance, the budget agency, or any other state agency.
(f) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
(g) Money in the fund must be appropriated by the general assembly to be available for expenditure.
(1) the money that is transferred to the fund from the toll road fund under IC 8-15.5-11; plus
(2) the amount initially set aside in the administration account of the toll road fund to establish an escrow account to implement a written agreement entered into under IC 8-15.5-7-6 to fund reductions in, or refunds of, user fees imposed on Class 2 vehicles.
(b) The budget agency shall determine the amount of distributions required by this section. In making the determination, the budget agency shall include the following amounts:
(1) Amounts distributed to counties traversed by the Indiana Toll Road under section 6(a)(1) of this chapter.
(2) Money distributed to the northwest Indiana regional development authority under this chapter.
(3) Money distributed under section 6(a)(3) of this chapter.
(4) Projects carried out by the department in counties traversed by the Indiana Toll Road and funded with money distributed under section 6(a)(4) of this chapter.
(5) The amount initially set aside in the administration account of the toll road fund to establish an escrow account to implement a written agreement entered into under IC 8-15.5-7-6 to fund reductions in, or refunds of, user fees imposed on Class 2 vehicles.
(6) Money transferred to the administration account of the toll road fund under section 6(a)(5) of this chapter.
(7) Payments to the Indiana public
(1) administer and manage the trust;
(2) invest the money in the trust; and
(3) deposit in the trust any interest that accrues from the investment of these funds.
(b) Notwithstanding IC 5-13, the trustee shall invest the money in the trust not currently needed to meet the obligations of the trust in the same manner as money is invested by the Indiana public
trust and may pay the state expenses incurred under those contracts
from the trust.
(c) IC 4-9.1-1-8 and IC 4-9.1-1-9 do not apply to a trust established
under this chapter.
(d) Money in the trust at the end of a state fiscal year does not revert
to the state general fund.
(1) funding projects under IC 8-15.7 for passenger and freight railroad systems as described in IC 8-15.7-2-14(a)(4); and
(2) funding distributions under section 5 of this chapter.
(b) The fund shall be administered by the department.
(c) Notwithstanding IC 5-13, the treasurer of state shall invest the money in the fund not currently needed to meet the obligations of the fund in the same manner as money is invested by the Indiana public
(d) The fund consists of the following:
(1) Appropriations to the fund.
(2) Gifts, grants, loans, bond proceeds, and other money received for deposit in the fund.
(3) Payments made to the authority or the department from operators under IC 8-15.7 concerning passenger and freight railroad systems as described in IC 8-15.7-2-14(a)(4).
(4) Interest, premiums, or other earnings on the fund.
(e) The fund is considered a trust fund for purposes of IC 4-9.1-1-7. Money may not be transferred, assigned, or otherwise removed from the fund by the state board of finance, the budget agency, or any other state agency.
(f) Money in the fund at the end of a state fiscal year does not revert to the state general fund.
(g) Money in the fund must be appropriated by the general assembly to be available for expenditure.
JULY 1, 2012]: Sec. 3. (a) The tobacco farmers and rural community
impact fund is established. The fund shall be administered by the
director. The fund consists of:
(1) amounts, if any, that another statute requires to be distributed
to the fund from the Indiana tobacco master settlement agreement
fund;
(2) appropriations to the fund from other sources;
(3) grants, gifts, and donations intended for deposit in the fund;
and
(4) interest that accrues from money in the fund.
(b) The expenses of administering the fund shall be paid from
money in the fund.
(c) Notwithstanding IC 5-13, the treasurer of state shall invest the
money in the fund not currently needed to meet the obligations of the
fund in the same manner as money is invested by the Indiana public
employees retirement fund system under IC 5-10.3-5. The treasurer of
state may contract with investment management professionals,
investment advisers, and legal counsel to assist in the management of
the fund and may pay the state expenses incurred under those contracts.
(d) Money in the fund at the end of the state fiscal year does not
revert to the state general fund and remains available for expenditure.
(1) Adopt an employee benefit program that may include a vacation policy and employee discounts.
(2) Authorize expenditure of hospital funds for payment of advertising and placement fees for personnel and physicians.
(3) Expend hospital funds in an amount not to exceed one-half percent (0.5%) of hospital revenues for the preceding calendar year for a program that directly contributes to the productivity or morale of personnel, volunteers, or physicians. However, this subdivision does not apply to:
(A) an employee benefit program under subdivision (1); or
(B) an employee compensation arrangement, including a productivity bonus.
(4) Adopt a plan that provides for hospital employee sickness or accident disability and contract for and purchase insurance plans from an insurance company licensed to transact business in Indiana.
(5) Contract for and purchase adequate pension and retirement plans for hospital personnel from the Indiana public
retirement fund of Indiana system or from any company
authorized to do such business in Indiana.
(6) Enter into deferred compensation agreements with employees
and other contractual personnel and fund deferred obligations by
contracting with insurance companies licensed to transact
business in Indiana.
(7) Expend hospital funds to pay dues of the executive director
and department heads for memberships in local, state, or national
hospital or professional associations or organizations that the
board determines are of direct benefit to the hospital.
(8) Establish and operate employee registries for part-time or
temporary hospital employees.
(9) Pay a part or all of the costs of these plans out of hospital
funds.
(10) Expend hospital funds for reasonable expenses incurred by
persons and their spouses who are interviewed for employment or
for medical staff appointment and for reasonable moving
expenses for the persons and their spouses if employed or
appointed to the hospital medical staff.
(11) Expend hospital funds, advance tuition payments, or
establish a tuition refund program for the education or
professional improvement of nurses and other professional or
technical employees of the hospital for inservice training and
attending seminars or other special courses of instruction when
the board determines that the expenditures directly benefit the
hospital.
(12) Conduct business in a state adjacent to Indiana.
(1) The Indiana state teachers' retirement fund in accordance with IC 5-10.4.
(2) The public employees' retirement fund in accordance with IC 5-10.3.
(3) Another employee pension or retirement fund.
(b) Except as provided in subsection (e), a person who teaches in a charter school is a member of the Indiana state teachers' retirement fund. Service in a charter school is creditable service for purposes of IC 5-10.4.
(c) Except as provided in subsection (e), a person who:
(1) is a local school employee of a charter school; and
(2) is not eligible to participate in the Indiana state teachers' retirement fund;
is a member of the public employees' retirement fund.
(d) The
(e) Charter school employees may participate in a private pension or retirement program, if the organizer of the charter school offers the opportunity to participate in the program.
(b) The governing body of each school corporation shall organize by electing:
(1) a president;
(2) a vice president; and
(3) a secretary;
each of whom is a different member, not more than fifteen (15) days after the commencement date of the members' terms of office, as provided in section 4 of this chapter.
(c) A governing body shall, at the time that officers are elected under subsection (b), appoint a treasurer of the governing body and of the school corporation who is a person, other than the superintendent of schools, who is not a member of the governing body. The treasurer may, with the approval of the governing body, appoint a deputy who must be a person, other than the superintendent of schools, who is not a member of the governing body and who has the same powers and duties as the treasurer, or lesser duties as provided by the governing body by rule.
(d) The treasurer is the official custodian of all funds of the school corporation and is responsible for the proper safeguarding and accounting for the funds. The treasurer shall:
(1) issue a receipt for money received by the treasurer;
(2) deposit money described in subdivision (1) in accordance with
the laws governing the deposit of public funds; and
(3) issue all warrants in payment of expenses lawfully incurred on
behalf of the school corporation. However, except as otherwise
provided by law, warrants described in this subdivision must be
issued only after proper allowance or approval by the governing
body. The governing body may not require an allowance or
approval for amounts lawfully due in payment of indebtedness or
payments due the state, the United States government, or agencies
and instrumentalities of the state or the United States government.
A verification, other than a properly itemized invoice, may not be
required for any claim of one hundred dollars ($100) or less. A claim
that exceeds one hundred dollars ($100) is sufficient as to form if the
bill or statement for the claim has printed or stamped on the face of the
bill or statement a verification of the bill or statement in language
approved by the state board of accounts.
(e) Notwithstanding subsection (d), a treasurer may transact school
corporation financial business with a financial institution or a public
retirement fund through the use of electronic funds transfer. The
treasurer must provide adequate documentation to the governing body
of transfers made under this subsection. This subsection applies only
to agreements for joint investment of money under IC 5-13-9 and to
payments to the Indiana public retirement system for:
(1) the Indiana state teachers' retirement fund; or
(2) the public employees' retirement fund;
from participating employers.
(f) A treasurer is not personally liable for an act or omission
occurring in connection with the performance of the duties set forth in
this section, unless the act or omission constitutes gross negligence or
an intentional disregard of the treasurer's duties.
(g) A governing body may establish the position of executive
secretary to the governing body. The executive secretary:
(1) must be an employee of the school corporation;
(2) may not be a member of the governing body; and
(3) must be appointed by the governing body upon the
recommendation of the superintendent of the school corporation.
The governing body shall determine the duties of the executive
secretary, which may include all or part of the duties of the secretary of
the board.
this section) shall administer the fund, which may be commingled for
investment purposes with the public employees' retirement fund for
investment purposes. any public pension and retirement fund
administered by the system.
(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, IC 5-10.5-4, and IC 5-10.5-6, 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;
with respect to the fund are those specified in IC 5-10.3-3, and
IC 5-10.3-4, IC 5-10.5-4, and IC 5-10.5-6.
(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.
(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
through IC 5-10.3-5-6, IC 5-10.5-4, and IC 5-10.5-6, 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;
with respect to the fund are those specified in IC 5-10.3-3, and
IC 5-10.3-4, IC 5-10.5-4, and IC 5-10.5-6.
(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.
(b) The state may not purchase insurance to cover the liability of the state or its employees. This subsection does not prohibit any of the following:
(1) The requiring of contractors to carry insurance.
(2) The purchase of insurance to cover losses occurring on real property owned by:
(A) the Indiana public
(B) a public pension and retirement fund administered by the Indiana public retirement system.
(3) The purchase of insurance by a separate body corporate and
politic to cover the liability of itself or its employees.
(4) The purchase of casualty and liability insurance for foster
parents (as defined in IC 27-1-30-4) on a group basis.
(1) Require the defendant to:
(A) execute a bail bond with sufficient solvent sureties;
(B) deposit cash or securities in an amount equal to the bail;
(C) execute a bond secured by real estate in the county, where thirty-three hundredths (0.33) of the true tax value less encumbrances is at least equal to the amount of the bail;
(D) post a real estate bond; or
(E) perform any combination of the requirements described in clauses (A) through (D).
If the court requires the defendant to deposit cash or cash and another form of security as bail, the court may require the defendant and each person who makes the deposit on behalf of the defendant to execute an agreement that allows the court to retain all or a part of the cash to pay publicly paid costs of representation and fines, costs, fees, and restitution that the court may order the defendant to pay if the defendant is convicted. The defendant must also pay the fee required by subsection (d).
(2) Require the defendant to execute:
(A) a bail bond by depositing cash or securities with the clerk of the court in an amount not less than ten percent (10%) of the bail; and
(B) an agreement that allows the court to retain all or a part of the cash or securities to pay fines, costs, fees, and restitution that the court may order the defendant to pay if the defendant is convicted.
A portion of the deposit, not to exceed ten percent (10%) of the monetary value of the deposit or fifty dollars ($50), whichever is the lesser amount, may be retained as an administrative fee. The clerk shall also retain from the deposit under this subdivision fines, costs, fees, and restitution as ordered by the court, publicly paid costs of representation that shall be disposed of in
accordance with subsection (b), and the fee required by
subsection (d). In the event of the posting of a real estate bond,
the bond shall be used only to insure the presence of the
defendant at any stage of the legal proceedings, but shall not be
foreclosed for the payment of fines, costs, fees, or restitution. The
individual posting bail for the defendant or the defendant
admitted to bail under this subdivision must be notified by the
sheriff, court, or clerk that the defendant's deposit may be
forfeited under section 7 of this chapter or retained under
subsection (b).
(3) Impose reasonable restrictions on the activities, movements,
associations, and residence of the defendant during the period of
release.
(4) Except as provided in section 3.6 of this chapter, require the
defendant to refrain from any direct or indirect contact with an
individual and, if the defendant has been charged with an offense
under IC 35-46-3, any animal belonging to the individual,
including if the defendant has not been released from lawful
detention.
(5) Place the defendant under the reasonable supervision of a
probation officer, pretrial services agency, or other appropriate
public official. If the court places the defendant under the
supervision of a probation officer or pretrial services agency, the
court shall determine whether the defendant must pay the pretrial
services fee under section 3.3 of this chapter.
(6) Release the defendant into the care of a qualified person or
organization responsible for supervising the defendant and
assisting the defendant in appearing in court. The supervisor shall
maintain reasonable contact with the defendant in order to assist
the defendant in making arrangements to appear in court and,
where appropriate, shall accompany the defendant to court. The
supervisor need not be financially responsible for the defendant.
(7) Release the defendant on personal recognizance unless:
(A) the state presents evidence relevant to a risk by the
defendant:
(i) of nonappearance; or
(ii) to the physical safety of the public; and
(B) the court finds by a preponderance of the evidence that the
risk exists.
(8) Require a defendant charged with an offense under IC 35-46-3
to refrain from owning, harboring, or training an animal.
(9) Impose any other reasonable restrictions designed to assure
the defendant's presence in court or the physical safety of another
person or the community.
(b) Within thirty (30) days after disposition of the charges against
the defendant, the court that admitted the defendant to bail shall order
the clerk to remit the amount of the deposit remaining under subsection
(a)(2) to the defendant. The portion of the deposit that is not remitted
to the defendant shall be deposited by the clerk in the supplemental
public defender services fund established under IC 33-40-3.
(c) For purposes of subsection (b), "disposition" occurs when the
indictment or information is dismissed or the defendant is acquitted or
convicted of the charges.
(d) Except as provided in subsection (e), the clerk of the court shall:
(1) collect a fee of five dollars ($5) from each bond or deposit
required under subsection (a)(1); and
(2) retain a fee of five dollars ($5) from each deposit under
subsection (a)(2).
The clerk of the court shall semiannually remit the fees collected under
this subsection to the board of trustees of the Indiana public
employees' retirement fund system for deposit in the special death
benefit fund. The fee required by subdivision (2) is in addition to the
administrative fee retained under subsection (a)(2).
(e) With the approval of the clerk of the court, the county sheriff
may collect the bail posted under this section. The county sheriff shall
remit the bail to the clerk of the court by the following business day
and remit monthly the five dollar ($5) special death benefit fee to the
county auditor.
(f) When a court imposes a condition of bail described in subsection
(a)(4):
(1) the clerk of the court shall comply with IC 5-2-9; and
(2) the prosecuting attorney shall file a confidential form
prescribed or approved by the division of state court
administration with the clerk.
fire chief. This appointing authority may also grant a leave of absence
to any other full-time, fully paid police officer or firefighter.
(b) A leave of absence under subsection (a) shall be granted for
service in the Indiana general assembly. A leave of absence under
subsection (a) may also be granted for service in any other elected
office or for one (1) of the following reasons:
(1) Sickness.
(2) Disability.
(3) Sabbatical purposes.
However, a leave of absence because of disability may not be granted
to a member of the 1977 fund under this subsection unless a leave
granted under subsection (g) has expired without disability benefits
having been paid from the 1977 fund. In the case of such an expiration,
a leave for purposes of disability may be granted under this subsection
but only until the member's eligibility for disability benefits is finally
determined.
(c) Before a leave of absence may be granted for sabbatical
purposes, the member must submit a written request explaining and
justifying the leave to the appointing authority. Sabbatical purposes
must be related to the improvement of the member's professional
performance and skills, such as education, special training, work
related experience, and exchange programs.
(d) This subsection applies to leaves of absence granted under
subsection (b)(1), (b)(2), or (b)(3). A leave of absence may extend for
a period of not more than one (1) year, determined by the appointing
authority, and may be renewed upon written request of the member.
(e) This subsection applies to leaves of absence granted for service
in an elected office. A police officer or firefighter who serves in the
general assembly shall be granted a leave for the time spent in this
service, including the time spent for committee or legislative council
meetings. A police officer or firefighter who serves in any other elected
office may be granted a leave for the time spent in this service. Leave
for service in an elected office does not diminish a police officer's or
firefighter's rights under the police officer's or firefighter's retirement
or pension fund, except as provided in section 10 of this chapter, or
advancement on the police officer's or firefighter's department salary
schedule. For these purposes, the police officer or firefighter is, despite
the leave, considered to be a member of the department during that
time.
(f) This subsection applies to leaves of absence granted under
subsection (b)(1), (b)(2), or (b)(3). A member on leave may receive
compensation in an amount determined by the appointing authority, up
to a maximum amount that equals the member's salary before the leave
began.
(g) This subsection applies only to members of the 1977 fund. The
local board may grant a leave of absence for purposes of disability to
full-time, fully paid police officers or firefighters (including the police
chief or fire chief). The leave is subject to the following conditions:
(1) The police chief or fire chief must make a written
determination that there is no suitable and available work on the
appropriate department for which the fund member is or may be
capable of becoming qualified.
(2) The leave must be approved by the local board after a hearing
conducted under IC 36-8-8-12.7.
(3) The leave may not begin until the police officer or firefighter
has exhausted all paid leave for sickness.
(4) The leave shall continue until disability benefits are paid from
the 1977 fund. However, the leave may not continue for more
than six (6) months.
(5) During the leave, the police officer or firefighter is entitled to
receive compensation in an amount equal to fifty percent (50%)
of the salary of a first class patrolman or first class firefighter on
the date the leave begins.
Payments of compensation under this subsection may not be made from
the 1925 fund, the 1937 fund, the 1953 fund, or the 1977 fund.
(h) Determinations under subsection (g) are not reviewable by the
board of trustees of the Indiana public employees' retirement fund
system.
(i) This subsection applies to leaves of absence granted under
subsection (a) or (b). An appointing authority shall establish a policy
in writing that specifies whether a police officer or firefighter is
entitled, during a leave of absence, to participate in any promotional
process or earn seniority. A policy established under this subsection is
subject to a department's existing disciplinary procedures. An
appointing authority shall reinstate a police officer or firefighter
returning from a leave at the merit or permanent rank determined under
the policy established under this subsection. However, except as
otherwise provided by federal law, an appointing authority is not
required to reinstate a police officer or firefighter in the job that the
police officer or firefighter held at the time the police officer's or
firefighter's leave began.
10.1 of this chapter.
(b) A special death benefit of seventy-five thousand dollars
($75,000) for a fund member who dies in the line of duty before
January 1, 1998, and one hundred fifty thousand dollars ($150,000) for
a fund member who dies in the line of duty after December 31, 1997,
shall be paid in a lump sum by the Indiana public employees'
retirement fund system from the pension relief fund established under
IC 5-10.3-11 to the following relative of a fund member who dies in the
line of duty:
(1) To the surviving spouse.
(2) If there is no surviving spouse, to the surviving children (to be
shared equally).
(3) If there is no surviving spouse and there are no surviving
children, to the parent or parents in equal shares.
(c) The benefit provided by this section is in addition to any other
benefits provided under this chapter.
(b) A special death benefit of seventy-five thousand dollars ($75,000) for a fund member who dies in the line of duty before January 1, 1998, and one hundred fifty thousand dollars ($150,000) for a fund member who dies in the line of duty after December 31, 1997, shall be paid in a lump sum by the Indiana public
(1) To the surviving spouse.
(2) If there is no surviving spouse, to the surviving children (to be shared equally).
(3) If there is no surviving spouse and there are no surviving children, to the parent or parents in equal shares.
(c) The benefit provided by this section is in addition to any other benefits provided under this chapter.
(b) A special death benefit of seventy-five thousand dollars ($75,000) for a fund member who dies in the line of duty before January 1, 1998, and one hundred fifty thousand dollars ($150,000) for
a fund member who dies in the line of duty after December 31, 1997,
shall be paid in a lump sum by the Indiana public employees'
retirement fund system from the pension relief fund established under
IC 5-10.3-11 to the following relative of a fund member who dies in the
line of duty:
(1) To the surviving spouse.
(2) If there is no surviving spouse, to the surviving children (to be
shared equally).
(3) If there is no surviving spouse and there are no surviving
children, to the parent or parents in equal shares.
(c) The benefit provided by this section is in addition to any other
benefits provided under this chapter.
(1) means the Internal Revenue Code of 1954, as in effect on September 1, 1974, if permitted with respect to governmental plans; or
(2) to the extent not inconsistent with subdivision (1), has the meaning set forth in IC 6-3-1-11.
(b) The 1977 fund shall satisfy the qualification requirements in Section 401 of the Internal Revenue Code, as applicable to the 1977 fund. In order to meet those requirements, the 1977 fund is subject to the following provisions, notwithstanding any other provision of this chapter:
(1) The
(2) No part of the corpus or income of the 1977 fund may be used or diverted to any purpose other than the exclusive benefit of the members and their beneficiaries.
(3) Forfeitures arising from severance of employment, death, or for any other reason may not be applied to increase the benefits any member would otherwise receive under this chapter.
(4) If the 1977 fund is terminated, or if all contributions to the 1977 fund are completely discontinued, the rights of each affected member to the benefits accrued at the date of the termination or
discontinuance, to the extent then funded, are nonforfeitable.
(5) All benefits paid from the 1977 fund shall be distributed in
accordance with the requirements of Section 401(a)(9) of the
Internal Revenue Code and the regulations under that section. In
order to meet those requirements, the 1977 fund is subject to the
following provisions:
(A) The life expectancy of a member, the member's spouse, or
the member's beneficiary shall not be recalculated after the
initial determination, for purposes of determining benefits.
(B) If a member dies before the distribution of the member's
benefits has begun, distributions to beneficiaries must begin
no later than December 31 of the calendar year immediately
following the calendar year in which the member died.
(C) The amount of an annuity paid to a member's beneficiary
may not exceed the maximum determined under the incidental
death benefit requirement of the Internal Revenue Code.
(6) The PERF system board may not:
(A) determine eligibility for benefits;
(B) compute rates of contribution; or
(C) compute benefits of members or beneficiaries;
in a manner that discriminates in favor of members who are
considered officers, supervisors, or highly compensated, as
prohibited under Section 401(a)(4) of the Internal Revenue Code.
(7) Benefits paid under this chapter may not exceed the maximum
benefit specified by Section 415 of the Internal Revenue Code.
(8) The salary taken into account under this chapter may not
exceed the applicable amount under Section 401(a)(17) of the
Internal Revenue Code.
(9) The trustee may not engage in a transaction prohibited by
Section 503(b) of the Internal Revenue Code.
retirement fund. A person may become a member of the 1977 fund
under this subsection without meeting the age limitation under section
7(a) of this chapter only if the person satisfies:
(1) any aptitude, physical agility, or physical and mental standards
established by a local board under IC 36-8-3.2; and
(2) the minimum standards that are:
(A) adopted by the PERF system board under section 19 of
this chapter; and
(B) in effect on the date the person becomes a member of the
1977 fund.
Credit for prior service of a person who becomes a member of the 1977
fund under this subsection shall be determined under section 18 or 18.1
of this chapter. No service credit beyond that allowed under section 18
or 18.1 of this chapter may be recognized under the 1977 fund.
(b) If a unit did not establish a 1937 fund for its firefighters, the unit
may participate in the public employees' retirement fund or it may
participate in the 1977 fund. If a unit established a 1937 fund for its
firefighters, the unit is and shall remain a participant in the 1977 fund.
(c) A unit that:
(1) has not established a pension fund for its firefighters; or
(2) is participating in the public employees' retirement fund under
subsection (b);
may participate in the 1977 fund upon approval by the fiscal body,
notwithstanding IC 5-10.3-6-8. A unit that participates in the 1977 fund
under this subsection must comply with section 21 of this chapter.
However, if a firefighter is a member of the public employees'
retirement fund, the firefighter may continue as a member of that fund
instead of the 1977 fund.
(b) The
and the cost of participation is the same for all employers in the fund.
The fund member and employer contributions shall be recorded
separately for each employer.
(c) Any reference or cross-reference to the 1977 fund advisory
committee in the Indiana Code shall be treated after June 30, 2011, as
a reference or cross-reference to the system board.
(1) determine eligibility for and make payments of benefits, except as provided in section 12 of this chapter;
(2) in accordance with the powers and duties granted it in
(3) provide by rule for the implementation of this chapter; and
(4) authorize deposits.
(b) A determination by the
(c) The powers and duties of the director
(d) The
(e) The 1977 fund records of individual members and membership information are confidential, except for the name and years of service of a 1977 fund member.
(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.
(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
(1) a police officer; or
(2) a firefighter;
who is less than thirty-six (36) years of age and who passes the baseline statewide physical and mental examinations required under section 19 of this chapter shall be a member of the 1977 fund and is not a member of the 1925 fund, the 1937 fund, or the 1953 fund.
(b) A police officer or firefighter with service before May 1, 1977, who is hired or rehired after April 30, 1977, may receive credit under this chapter for service as a police officer or firefighter prior to entry into the 1977 fund if the employer who rehires the police officer or firefighter chooses to contribute to the 1977 fund the amount necessary to amortize the police officer's or firefighter's prior service liability over a period of not more than forty (40) years, the amount and the period to be determined by the
(c) Except as provided in section 18 of this chapter, a police officer or firefighter is entitled to credit for all years of service after April 30, 1977, with the police or fire department of an employer covered by this chapter.
(d) A police officer or firefighter with twenty (20) years of service does not become a member of the 1977 fund and is not covered by this chapter, if the police officer or firefighter:
(1) was hired before May 1, 1977;
(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both of which were repealed September 1, 1981); and
(3) is rehired after April 30, 1977, by the same employer.
(e) A police officer or firefighter does not become a member of the 1977 fund and is not covered by this chapter if the police officer or firefighter:
(1) was hired before May 1, 1977;
(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both of which were repealed September 1, 1981);
(3) was rehired after April 30, 1977, but before February 1, 1979; and
(4) was made, before February 1, 1979, a member of a 1925, 1937, or 1953 fund.
(f) A police officer or firefighter does not become a member of the 1977 fund and is not covered by this chapter if the police officer or firefighter:
(1) was hired by the police or fire department of a unit before May 1, 1977;
(2) did not convert under IC 19-1-17.8-7 or IC 19-1-36.5-7 (both of which were repealed September 1, 1981);
(3) is rehired by the police or fire department of another unit after December 31, 1981; and
(4) is made, by the fiscal body of the other unit after December 31, 1981, a member of a 1925, 1937, or 1953 fund of the other unit.
If the police officer or firefighter is made a member of a 1925, 1937, or 1953 fund, the police officer or firefighter is entitled to receive credit for all the police officer's or firefighter's years of service, including years before January 1, 1982.
(g) As used in this subsection, "emergency medical services" and "emergency medical technician" have the meanings set forth in IC 16-18-2-110 and IC 16-18-2-112. A firefighter who:
(1) is employed by a unit that is participating in the 1977 fund;
(2) was employed as an emergency medical technician by a political subdivision wholly or partially within the department's jurisdiction;
(3) was a member of the public employees' retirement fund during the employment described in subdivision (2); and
(4) ceased employment with the political subdivision and was hired by the unit's fire department due to the reorganization of emergency medical services within the department's jurisdiction;
shall participate in the 1977 fund. A firefighter who participates in the
1977 fund under this subsection is subject to sections 18 and 21 of this
chapter.
(h) A police officer or firefighter does not become a member of the
1977 fund and is not covered by this chapter if the individual was
appointed as:
(1) a fire chief under a waiver under IC 36-8-4-6(c); or
(2) a police chief under a waiver under IC 36-8-4-6.5(c);
unless the executive of the unit requests that the 1977 fund accept the
individual in the 1977 fund and the individual previously was a
member of the 1977 fund.
(i) A police matron hired or rehired after April 30, 1977, and before
July 1, 1996, who is a member of a police department in a second or
third class city on March 31, 1996, is a member of the 1977 fund.
(j) A park ranger who:
(1) completed at least the number of weeks of training at the
Indiana law enforcement academy or a comparable law
enforcement academy in another state that were required at the
time the park ranger attended the Indiana law enforcement
academy or the law enforcement academy in another state;
(2) graduated from the Indiana law enforcement academy or a
comparable law enforcement academy in another state; and
(3) is employed by the parks department of a city having a
population of more than one hundred twenty thousand (120,000)
but less than one hundred fifty thousand (150,000);
is a member of the fund.
(k) Notwithstanding any other provision of this chapter, a police
officer or firefighter:
(1) who is a member of the 1977 fund before a consolidation
under IC 36-3-1-5.1 or IC 36-3-1-6.1;
(2) whose employer is consolidated into the consolidated law
enforcement department or the fire department of a consolidated
city under IC 36-3-1-5.1 or IC 36-3-1-6.1; and
(3) who, after the consolidation, becomes an employee of the
consolidated law enforcement department or the consolidated fire
department under IC 36-3-1-5.1 or IC 36-3-1-6.1;
is a member of the 1977 fund without meeting the requirements under
sections 19 and 21 of this chapter.
(l) Notwithstanding any other provision of this chapter, if:
(1) before a consolidation under IC 8-22-3-11.6, a police officer
or firefighter provides law enforcement services or fire protection
services for an entity in a consolidated city;
(2) the provision of those services is consolidated into the law
enforcement department or fire department of a consolidated city;
and
(3) after the consolidation, the police officer or firefighter
becomes an employee of the consolidated law enforcement
department or the consolidated fire department under
IC 8-22-3-11.6;
the police officer or firefighter is a member of the 1977 fund without
meeting the requirements under sections 19 and 21 of this chapter.
(m) A police officer or firefighter who is a member of the 1977 fund
under subsection (k) or (l) may not be:
(1) retired for purposes of section 10 of this chapter; or
(2) disabled for purposes of section 12 of this chapter;
solely because of a change in employer under the consolidation.
(1) who becomes a member of the 1977 fund under section 7(h) of this chapter;
(2) whose appointment as a fire chief or police chief ends after June 30, 2007; and
(3) who is not eligible to receive a benefit from the 1977 fund at the end of the individual's appointment as a fire chief or police chief.
(b) A fund member described in subsection (a) may elect:
(1) to receive the fund member's contributions to the 1977 fund under section 8 of this chapter; or
(2) to transfer the fund member's service credit earned as a fire chief or police chief to PERF under subsection (c).
(c) If a fund member makes the election described in subsection (b)(2), the
(1) grant to the fund member service credit in PERF for all service earned as a fire chief or police chief in the 1977 fund; and
(2) transfer from the 1977 fund to PERF:
(A) the fund member's contributions made during the fund member's appointment as a fire chief or police chief to the 1977 fund; plus
(B) the present value of the unreduced benefit that would be payable to the transferring fund member upon retirement under section 10 of this chapter.
(d) The
(1) The fund member's contributions to the 1977 fund shall be
credited to the fund member's PERF annuity savings account.
(2) The present value of the unreduced benefit that would be
payable to the transferring fund member upon retirement under
section 10 of this chapter shall be credited to PERF's retirement
allowance account.
(e) For a fund member who makes the election described in
subsection (b)(2), all credit for service as a fire chief or police chief in
the 1977 fund is waived.
(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
(2) the contributions paid by or on behalf of a member under subsection (a) by electronic funds transfer.
(b) A fund member may purchase not more than two (2) years of service credit for the fund member's service on active duty in the armed services if the fund member meets the following conditions:
(1) The fund member has at least one (1) year of credited service in the fund.
(2) The fund member serves on active duty in the armed services of the United States for at least six (6) months.
(3) The fund member receives an honorable discharge from the armed services.
(4) Before the fund member retires, the fund member makes contributions to the 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 actually makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the 1977 fund, that is based on the age of the fund member at the time the fund member actually makes a contribution for 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 service credit the fund member intends to purchase.
(B) Contributions for any accrued interest, at a rate determined by the actuary of 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.
(c) A fund member must have at least twenty (20) years of service before a fund member may receive a benefit based on a service credit purchased under this section. A fund member's years of service may not exceed thirty-two (32) years with the inclusion of the service credit purchased under this section.
(d) A fund member may not receive service credit under this section:
(1) for service credit received under IC 36-8-5-7; or
(2) if the military service for which the fund member requests
credit also qualifies the fund member for a benefit in a military or
another governmental retirement system.
(e) 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 fund a properly
completed application for a refund.
(f) The following apply to the purchase of service credit under this
section:
(1) The PERF system board may allow a fund member to make
periodic payments of the contributions required for the purchase
of the service credit. The PERF system board shall determine the
length of the period during which the payments must be made.
(2) The PERF system 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 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.
(g) To the extent permitted by the Internal Revenue Code and
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.
(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 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) As used in this section, "public retirement fund" refers to any of the following, either singly or collectively:
(1) The public employees' retirement fund (IC 5-10.3).
(2) The Indiana state teachers' retirement fund (IC 5-10.4).
(3) The state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement fund (IC 5-10-5.5).
(4) The state police pension trust (IC 10-12).
(5) A sheriff's pension trust (IC 36-8-10-12).
(c) Subject to this section, a fund member may purchase service credit for the fund member's prior service in a position covered by a public retirement fund.
(d) To purchase the service credit described in subsection (c), a fund member must meet the following requirements:
(1) The fund member has at least one (1) year of creditable service in the 1977 fund.
(2) The fund member has not attained vested status in and is not an active member in the public retirement fund from which the fund member is purchasing service credit.
(3) 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 actually 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 actually 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 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.
(e) At the request of the fund member purchasing service credit under this section, the amount a fund member is required to contribute under subsection (d)(3) may be reduced by a trustee to trustee transfer from the public retirement fund in which the fund member has an account that contains amounts attributable to member contributions (plus any credited earnings) to the 1977 fund. The fund member may direct the transfer of an amount only to the extent necessary to fund the service purchase under subsection (d)(3). The fund member shall complete any forms required by the public retirement fund from which the fund member is requesting a transfer or the 1977 fund before the transfer is made.
(f) A fund member must have at least twenty (20) years of service in the 1977 fund before a fund member may receive a retirement 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 the service credit purchased under this section.
(g) A fund member who:
(1) terminates employment 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 tax supported governmental retirement plan other than the federal Social Security Act;
may withdraw the fund member's contributions made under this section plus accumulated interest after submitting a properly completed application for a refund to the 1977 fund.
(h) The following apply to the purchase of service credit under this section:
(1) The
(2) The
(3) A 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.
(i) To the extent permitted by the Internal Revenue Code and
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 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.
(j) To the extent permitted by the Internal Revenue Code and
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.
(k) The fund member's employer may pay all or a part of the fund
member's contributions required for the purchase of service credit
under this section. In that event, the actuary shall determine the
amortization, and subsections (g), (h)(1), (h)(3), and (i) do not apply.
(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
(2) The
(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.
(1) be rehired by the same unit that employed the fund member in a position covered by this chapter for a position not covered by
this chapter; and
(2) continue to receive the fund member's retirement benefit
under this chapter.
(b) This section may be implemented unless the PERF system board
receives from the Internal Revenue Service a determination that
prohibits the implementation.
(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
(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-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.
(b) A covered impairment is an impairment that permanently or temporarily makes a fund member unable to perform the essential function of the member's duties, considering reasonable accommodation to the extent required by the Americans with
Disabilities Act, with the police or fire department. However, a covered
impairment does not include an impairment:
(1) resulting from an intentionally self-inflicted injury or
attempted suicide while sane or insane;
(2) resulting from the fund member's commission or attempted
commission of a felony;
(3) that begins within two (2) years after a fund member's entry or
reentry into active service with the department and that was
caused or contributed to by a mental or physical condition that
manifested itself before the fund member entered or reentered
active service. Notwithstanding this subdivision, a fund member
may not be required to satisfy more than one (1) such two (2) year
period for the same mental or physical condition; or
(4) that is occasioned, in whole or in part, by the fund member
currently engaging (as defined in 29 CFR 1630.3, Appendix) in
any of the following:
(A) Use of a controlled substance (as defined in the Controlled
Substances Act (21 U.S.C. 812)).
(B) Unlawful use of a prescription drug.
(c) Notwithstanding subsection (b), this subsection applies to the
following:
(1) A fund member who is hired after March 1, 1992.
(2) A fund member who was admitted to the 1977 fund after
having been covered by another public pension plan as a police
officer or firefighter.
For a fund member who is determined by the PERF system board to
have a Class 3 excludable condition under IC 36-8-8-13.6, a covered
impairment does not include an impairment that would be classified as
a Class 3 impairment that begins at any time after the fund member's
entry or reentry into active service with the department and is related
in any manner to the Class 3 excludable condition.
(d) If the local board determines that a covered impairment exists,
the chief of the police or fire department shall submit to the local board
written determinations of the following:
(1) Whether there is suitable and available work on the
appropriate department for which the fund member is or may be
capable of becoming qualified, considering reasonable
accommodation to the extent required by the Americans with
Disabilities Act.
(2) For a fund member covered by sections 12.5 and 13.5 of this
chapter, the fund member's years of service with the department.
FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 12.4. A fund member
who is hired for the first time before January 1, 1990, may choose to be
covered by sections 12.5 and 13.5 of this chapter (instead of section
13.3 of this chapter) if the fund member files an election with the PERF
system board before January 1, 1991. However, an election may not be
filed after the fund member has a covered impairment. An election
filed under this section is irrevocable.
(b) At least five (5) days before the hearing, the local board shall give notice to the fund member and the safety board of the time, date, and place of the hearing.
(c) The local board must hold a hearing not more than ninety (90) days after the fund member requests the hearing.
(d) At the hearing, the local board shall permit the fund member and the safety board to:
(1) be represented by any individual;
(2) through witnesses and documents, present evidence;
(3) conduct cross-examination; and
(4) present arguments.
(e) At the hearing, the local board shall require all witnesses to be examined under oath, which may be administered by a member of the local board.
(f) The local board shall, at the request of the fund member or the safety board, issue:
(1) subpoenas;
(2) discovery orders; and
(3) protective orders;
in accordance with the Indiana Rules of Trial Procedure that govern discovery, depositions, and subpoenas in civil actions.
(g) The local board shall have the hearing recorded so that a transcript may be made of the proceedings.
(h) After the hearing, the local board shall make its determinations, including findings of fact, in writing and shall provide copies of its determinations to the fund member and the safety board not more than thirty (30) days after the hearing.
(i) If the local board:
(1) does not hold a hearing within the time required under
subsection (c); or
(2) does not issue its determination within the time required under
subsection (h);
the fund member shall be considered to be totally impaired for
purposes of section 13.5 of this chapter and, if the issue before the local
board concerns the class of the member's impairment, the member shall
be considered to have a Class 1 impairment. The PERF system board
shall review an impairment determined under this subsection as
provided in section 13.1 of this chapter.
(j) The local board may on its own motion issue:
(1) subpoenas;
(2) discovery orders; and
(3) protective orders;
in accordance with the Indiana Rules of Trial Procedure that govern
discovery, depositions, and subpoenas in civil actions.
(k) At the hearing, the local board may exclude evidence that is
irrelevant, immaterial, unduly repetitious, or excludable on the basis of
evidentiary privilege recognized by the courts.
(l) At the hearing, the local board may request the testimony of
witnesses and the production of documents.
(m) If a subpoena or order is issued under this section, the party
seeking the subpoena or order shall serve it in accordance with the
Indiana Rules of Trial Procedure. However, if the subpoena or order is
on the local board's own motion, the sheriff of the county in which the
subpoena or order is to be served shall serve it. A subpoena or order
under this section may be enforced in the circuit or superior court of
the county in which the subpoena or order is served.
(n) With respect to a hearing conducted for purposes of determining
disability under IC 36-8-6, IC 36-8-7, or IC 36-8-7.5, the determination
of the local board after a hearing is final and may be appealed to the
court.
(o) With respect to a hearing conducted for purposes of determining
impairment or class of impairment under this chapter, the fund member
may appeal the local board's determinations. An appeal under this
subsection:
(1) must be made in writing;
(2) must state the class of impairment and the degree of
impairment that is claimed by the fund member;
(3) must include a written determination by the chief of the police
or fire department stating that there is no suitable and available
work; and
(4) must be filed with the local board and the PERF system
board's director no later than thirty (30) days after the date on
which the fund member received a copy of the local board's
determinations.
(p) To the extent required by the Americans with Disabilities Act,
the transcripts, records, reports, and other materials generated as a
result of a hearing, review, or appeal conducted to determine an
impairment under this chapter or a disability under IC 36-8-6,
IC 36-8-7, or IC 36-8-7.5 must be:
(1) retained in the separate medical file created for the member;
and
(2) treated as a confidential medical record.
(q) If a local board determines that a fund member described in
section 13.3(a) of this chapter has a covered impairment, the local
board shall also make a recommendation to the 1977 fund advisory
committee system board concerning whether the covered impairment
is an impairment described in section 13.3(c) of this chapter or whether
it is an impairment described in section 13.3(d) of this chapter. The
local board shall forward its recommendation to the 1977 fund advisory
committee. system board.
(r) The 1977 fund advisory committee system board shall review
the local board's recommendation not later than forty-five (45) days
after receiving the recommendation and shall then issue an initial
determination of whether the disability is in the line of duty or not in
the line of duty. The 1977 fund advisory committee system board shall
notify the local board, the safety board, and the fund member of its
initial determination.
(s) The fund member, the safety board, or the local board may object
in writing to the 1977 fund advisory committee's system board's initial
determination under subsection (r) not later than fifteen (15) days after
the initial determination is issued. If a written objection is not filed, the
1977 fund advisory committee's system board's initial determination
becomes final. If a timely written objection is filed, the 1977 fund
advisory committee system board shall issue a final determination
after a hearing. The final determination must be issued not later than
one hundred eighty (180) days after the date of receipt of the local
board's recommendation.
(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 system board's director.
(b) Whenever a fund member is determined to have an impairment
under section 12.7(i) of this chapter, the system 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 system 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 system 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 system board shall adopt rules 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
system board's director. If a fund member refuses to submit to an
examination, the authority may find that no impairment exists.
(d) The system 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 system 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 system 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 (b): (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 system board. If a timely written objection is filed, the system 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 system board's director initiates a review under subsection (b). The following provisions apply if a final order is not issued within 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) 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 system board approves the director's initial determination, then the system 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 system board does not approve the initial determination, the system board may receive additional evidence on the matter before issuing a final order.
(g) Appeals of the system 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.
(b) A fund member or survivor of a fund member described in
subsection (a) may file an application, in accordance with this section,
requesting a determination that:
(1) the member's covered impairment, as determined under
section 13.3(b) of this chapter, was:
(A) the direct result of:
(i) a personal injury that occurred while the fund member
was on duty;
(ii) a personal injury that occurred while the fund member
was off duty and was responding to an offense or a reported
offense, in the case of a police officer, or an emergency or
reported emergency for which the fund member was trained,
in the case of a firefighter; or
(iii) an occupational disease (as defined in IC 22-3-7-10),
including a duty related disease that is also included within
clause (B);
(B) a duty related disease, which for purposes of this section,
means a disease arising out of the fund member's employment.
A disease is considered to arise out of the fund member's
employment if it is apparent to the rational mind, upon
consideration of all of the circumstances, that:
(i) there is a connection between the conditions under which
the fund member's duties are performed and the disease;
(ii) the disease can be seen to have followed as a natural
incident of the fund member's duties as a result of the
exposure occasioned by the nature of the fund member's
duties; and
(iii) the disease can be traced to the fund member's
employment as the proximate cause; or
(C) a disability presumed incurred in the line of duty under
IC 5-10-13 or IC 5-10-15; or
(2) the member's covered impairment, as determined under
section 13.3(b) of this chapter, was not a covered impairment
described in subsection (b)(1).
The application must be filed with the local board that made the
determination of a covered impairment resulting in a disability benefit
under section 13.3(b) of this chapter. The application form shall be
prepared by the PERF system board or its designee and be made
available to a fund member or survivor of a fund member described in
subsection (a) upon request.
(c) A fund member or survivor of a fund member who files an
application under this section has the burden of presenting sufficient
evidence to support a finding that the member's covered impairment,
as determined under section 13.3(b) of this chapter, satisfies the
standard provided in subsection (b)(1). Such evidence may include any
documents, materials, or other evidence provided in connection with
the original hearing and determination of a covered impairment as
determined under section 13.3(b) of this chapter, including any
transcript from that proceeding. A fund member or a survivor of a fund
member may include with an application any additional probative
evidence that is relevant to the determination under subsection (b)(1).
The local board may establish reasonable procedures with respect to
the application process and may engage a medical authority to provide
opinions relevant to making its determination. The local board may
hold a hearing with respect to an application filed under this section if
the fund member or survivor of a fund member shows good cause that
documents or other probative evidence sufficient to make the showing
required under this subsection is not reasonably obtainable and that
holding a hearing would be reasonably likely to provide such probative
evidence. If the local board conducts a hearing, it shall be subject to the
provisions of section 12.7 of this chapter relating to the conduct of
hearings on the determinations of covered impairments under this
chapter.
(d) The local board shall make its recommendation, including
findings of fact, in writing and shall provide copies of its
recommendation to the fund member or survivor of the fund member
the 1977 fund advisory committee, and the PERF system board no not
later than thirty (30) days after the:
(1) filing of the application, if no hearing is held; or
(2) hearing, if held.
(e) If the local board does not issue its recommendation within the
time required under subsection (d), the member's covered impairment
shall be considered to be a covered impairment described under
subsection (b)(1) for purposes of the local board's recommendation.
(f) The 1977 fund advisory committee system board shall review
the local board's recommendation, or the considered recommendation
under subsection (e), not later than forty-five (45) days after receiving
the recommendation and shall then issue an initial determination of
whether the covered impairment is one described under subsection
(b)(1). The 1977 fund advisory committee system board shall notify
the PERF board, the local board and the fund member or survivor of
the fund member of its initial determination. and the PERF board or its
designee will issue a final determination to the local board and the fund
member or survivor of the fund member. If no objection is made to the
initial determination under subsection (g) or (h) the PERF board must
issue a final determination not later than thirty (30) days after receiving
an initial determination.
(g) The fund member or survivor of the fund member or the local
board may object in writing to the 1977 fund advisory committee's
system board's initial determination under subsection (f) not later than
fifteen (15) days after the initial determination is issued by filing an
objection with the PERF system board. If a written objection is not
filed, the 1977 advisory committee's system board's initial
determination becomes final. If a timely written objection is filed, the
PERF system board shall issue a final determination after a hearing.
Unless an administrative law judge orders a waiver or an extension of
the period for cause shown, the final determination must be issued not
later than one hundred eighty (180) days after the date of receipt of the
local board's recommendation.
(h) If the 1977 fund advisory committee system board fails to issue
an initial determination within forty-five (45) days after receiving the
local board's recommendation, the default determination on whether
the covered impairment is one described under subsection (b)(1) will
be the determination made by PERF's the system board's medical
authority. An objection to this determination may be filed in
accordance with the provisions of subsection (g).
(i) A determination that a member's covered impairment is one
described under subsection (b)(1) will apply only on a prospective
basis beginning on January 1 of the calendar year in which the
determination is made. The amount of the benefit will not be changed
as a result of this determination.
(j) A fund member or survivor of a fund member described in
subsection (a) must file an application under this section no later than
two (2) years after the date the PERF system board notifies the fund
members and survivors described in subsection (a) that the board has
received a favorable ruling from the Internal Revenue Service. The
PERF system board will provide notice of receipt of a favorable ruling
within thirty (30) days of its receipt.
(k) This section expires July 1, 2021.
(1) is hired for the first time after December 31, 1989;
(2) chooses coverage by this section and section 12.5 of this chapter under section 12.4 of this chapter; or
(3) is described in section 12.3(c)(2) of this chapter.
(b) A fund member who is determined to have a Class 1 impairment and for whom it is determined that there is no suitable and available work within the fund member's department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, is entitled to a monthly base benefit equal to forty-five percent (45%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment.
(c) A fund member who is determined to have a Class 2 impairment and for whom it is determined that there is no suitable and available work within the fund member's department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, is entitled to a monthly base benefit equal to twenty-two percent (22%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment plus one-half percent (0.5%) of that salary for each year of service, up to a maximum of thirty (30) years of service.
(d) For applicants hired before March 2, 1992, a fund member who is determined to have a Class 3 impairment and for whom it is determined that there is no suitable and available work within the fund member's department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, is entitled to a monthly base benefit equal to the product of the member's years of service (not to exceed thirty (30) years of service) multiplied by one percent (1%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment.
(e) For applicants hired after March 1, 1992, or described in section 12.3(c)(2) of this chapter, a fund member who is determined to have a Class 3 impairment and for whom it is determined that there is no suitable and available work within the fund member's department, considering reasonable accommodation to the extent required by the Americans with Disabilities Act, is entitled to the following benefits instead of benefits provided under subsection (d):
(1) If the fund member did not have a Class 3 excludable condition under section 13.6 of this chapter at the time the fund member entered or reentered the fund, the fund member is entitled to a monthly base benefit equal to the product of the member's years of service, not to exceed thirty (30) years of service, multiplied by one percent (1%) of the monthly salary of a first class patrolman or firefighter in the year of the local board's determination of impairment.
(2) Except as provided in subdivision (5), a fund member is entitled to receive the benefits set forth in subdivision (1) if:
(A) the fund member had a Class 3 excludable condition under section 13.6 of this chapter at the time the fund member entered or reentered the fund;
(B) the fund member has a Class 3 impairment that is not related in any manner to the Class 3 excludable condition described in clause (A); and
(C) the Class 3 impairment described in clause (B) occurs after the fund member has completed four (4) years of service with the employer after the date the fund member entered or reentered the fund.
(3) Except as provided in subdivision (5), a fund member is not entitled to a monthly base benefit for a Class 3 impairment if:
(A) the fund member had a Class 3 excludable condition under section 13.6 of this chapter at the time the fund member entered or reentered the fund; and
(B) the Class 3 impairment occurs before the fund member has completed four (4) years of service with the employer after the date the fund member entered or reentered the fund.
(4) A fund member is not entitled to a monthly base benefit for a Class 3 impairment if:
(A) the fund member had a Class 3 excludable condition under section 13.6 of this chapter at the time the fund member entered or reentered the fund; and
(B) the Class 3 impairment is related in any manner to the Class 3 excludable condition.
(5) If, during the first four (4) years of service with the employer:
(A) a fund member with a Class 3 excludable condition is determined to have a Class 3 impairment; and
(B) the Class 3 impairment is attributable to an accidental injury that is not related in any manner to the fund member's Class 3 excludable condition;
the member is entitled to receive the benefits provided in subdivision (1) with respect to the accidental injury. For purposes of this subdivision, the local board shall make the initial determination of whether an impairment is attributable to an accidental injury. The local board shall forward the initial determination to the director of the
(f) If a fund member is entitled to a monthly base benefit under subsection (b), (c), (d), or (e), the fund member is also entitled to a monthly amount that is no less than ten percent (10%) and no greater
than forty-five percent (45%) of the monthly salary of a first class
patrolman or firefighter in the year of the local board's determination
of impairment. The additional monthly amount shall be determined by
the PERF Indiana public retirement system medical authority based
on the degree of impairment.
(g) Benefits for a Class 1 impairment as determined under this
section are payable for the remainder of the fund member's life.
(h) Benefits for a Class 2 impairment are payable:
(1) for a period equal to the years of service of the member, if the
member's total disability benefit is less than thirty percent (30%)
of the monthly salary of a first class patrolman or firefighter in the
year of the local board's determination of impairment and the
member has fewer than four (4) years of service; or
(2) for the remainder of the fund member's life if the fund
member's benefit is:
(A) equal to or greater than thirty percent (30%) of the
monthly salary of a first class patrolman or firefighter in the
year of the local board's determination of impairment; or
(B) less than thirty percent (30%) of the monthly salary of a
first class patrolman or firefighter in the year of the local
board's determination of impairment if the member has at least
four (4) years of service.
(i) Benefits for a Class 3 impairment are payable:
(1) for a period equal to the years of service of the member, if the
member's total disability benefit is less than thirty percent (30%)
of the monthly salary of a first class patrolman or firefighter in the
year of the local board's determination of impairment and the
member has fewer than four (4) years of service; or
(2) until the member becomes fifty-two (52) years of age if the
member's benefit is:
(A) equal to or greater than thirty percent (30%) of the
monthly salary of a first class patrolman or firefighter in the
year of the local board's determination of impairment; or
(B) less than thirty percent (30%) of the monthly salary of a
first class patrolman or firefighter in the year of the local
board's determination of impairment if the member has at least
four (4) years of service.
(j) Upon becoming fifty-two (52) years of age, a fund member with
a Class 2 impairment determined under subsection (h)(1) is entitled to
receive the retirement benefit payable to a fund member with:
(1) twenty (20) years of service; or
(2) the total years of service (including both active service and the
period, not to exceed twenty (20) years, during which the member
received disability benefits) and salary, as of the year the member
becomes fifty-two (52) years of age, that the fund member would
have earned if the fund member had remained in active service
until becoming fifty-two (52) years of age;
whichever is greater.
(k) Upon becoming fifty-two (52) years of age, a fund member who
is receiving or has received a Class 3 impairment benefit that is:
(1) equal to or greater than thirty percent (30%) of the monthly
salary of a first class patrolman or firefighter in the year of the
local board's determination of impairment; or
(2) less than thirty percent (30%) of the monthly salary of a first
class patrolman or firefighter in the year of the local board's
determination of impairment if the member has at least four (4)
years of service;
is entitled to receive the retirement benefit payable to a fund member
with twenty (20) years of service.
(l) Notwithstanding section 12.3 of this chapter and any other
provision of this section, a member who:
(1) has had a covered impairment;
(2) recovers and returns to active service with the department; and
(3) within two (2) years after returning to active service has an
impairment that, except for section 12.3(b)(3) of this chapter,
would be a covered impairment;
is entitled to the benefit under this subsection if the impairment
described in subdivision (3) results from the same condition or
conditions (without an intervening circumstance) that caused the
covered impairment described in subdivision (1). The member is
entitled to receive the monthly disability benefit amount paid to the
member at the time of the member's return to active service plus any
adjustments under section 15 of this chapter that would have been
applicable during the member's period of reemployment.
(1) a petition for review of the fund member's impairment may be filed with the local board by the fund member, the safety board, or the
(2) the local board may on its own motion seek a review of a fund member's impairment.
(b) The review may include a review of whether a covered
impairment continues to exist, whether the degree of impairment has
changed, and any other matter considered appropriate by the local
board.
(c) The local board shall conduct a hearing under section 12.7 of
this chapter to determine the matters raised in the petition for review.
The local board's determination shall be submitted to the PERF system
board, and the procedures specified in section 13.1 of this chapter
apply.
(d) The costs of a medical examination required by the local board
shall be paid by the party who filed the petition for review.
(b) An authorization for a deduction from a disability, retirement, or survivor monthly benefit paid under this chapter is valid only if all the
following requirements are met:
(1) The authorization is:
(A) in writing;
(B) signed personally by the person receiving the benefit;
(C) revocable at any time by the person receiving the benefit
upon written notice to the PERF system board; and
(D) agreed to in writing by the PERF system board.
(2) An executed copy of the authorization is delivered to the
PERF system board within ten (10) days after its execution.
(3) The deduction is made for a purpose described in subsection
(c).
(c) A deduction under this section may be made for the purpose of
paying any of the following:
(1) A premium on a policy of insurance for medical, surgical,
hospitalization, dental, vision, long term care, or Medicare
supplement coverage offered to retired fund members by the fund
member's former employer, the state, or the PERF system board.
(2) A pledge or contribution to a charitable or nonprofit
organization.
(3) Dues payable by the person receiving the benefit to a labor
organization of which the person is a member.
(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
(2) the police officers or firefighters pay, either in a lump sum or in a series of payments determined by the
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
system 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
(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-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
(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.
(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-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
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 system 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.
(b) Benefits paid under this section are subject to section 2.5 of this chapter.
(c) A special death benefit of seventy-five thousand dollars ($75,000) for a fund member who dies in the line of duty before January 1, 1998, and one hundred fifty thousand dollars ($150,000) for a fund member who dies in the line of duty after December 31, 1997, shall be paid in a lump sum by the Indiana public
(1) To the surviving spouse.
(2) If there is no surviving spouse, to the surviving children (to be shared equally).
(3) If there is no surviving spouse and there are no surviving children, to the parent or parents in equal shares.
(d) The benefit provided by this section is in addition to any other benefits provided under this chapter.
(1) are employed by units that become participants in the 1977 fund under section 3(c) of this chapter; or
(2) become members of the 1977 fund under section 7(g) of this
chapter.
(b) A firefighter may become a member of the 1977 fund without
meeting the age limitation under section 7(a) of this chapter if the
firefighter satisfies:
(1) any aptitude, physical agility, or physical and mental standards
established by a local board under IC 36-8-3.2; and
(2) the minimum standards that are:
(A) adopted by the PERF system board under section 19 of
this chapter; and
(B) in effect on the date the firefighter becomes a member of
the 1977 fund.
(c) Credit for prior service of a firefighter who becomes a member
of the 1977 fund under this section shall be determined under section
18 or 18.1 of this chapter. No service credit beyond that allowed under
section 18 or 18.1 of this chapter may be recognized under the 1977
fund.
(1) without receiving a retirement benefit under sections 10 and 11 of this chapter;
(2) without receiving a disability benefit under section 13.3 or 13.5 of this chapter;
(3) without a survivor entitled to receive a benefit under section 13.8, 13.9, or 14.1 of this chapter; and
(4) without the
(b) A fund member who chooses to designate one (1) or more beneficiaries under this section shall file the fund member's designation with the
(c) The
(d) Whenever a fund member does not designate a beneficiary under
this section and has no survivors entitled to receive a benefit under
section 13.8, 13.9, or 14.1 of this chapter, the PERF system board shall
refund to the fund member's estate:
(1) the fund member's contributions; plus
(2) interest at a rate determined by the PERF system board.
(1) the member's DROP retirement date;
(2) thirty-six (36) months after the member's DROP entry date;
(3) the mandatory retirement age applicable to the member, if any;
(4) the date the member retires because of a disability as provided under section 16.5(d) of this chapter; or
(5) the date determined under IC 36-8-8-24.8.
(b) A member of the 1925 fund, the 1937 fund, or the 1953 fund who enters the DROP established by this chapter must exit the DROP on the date the authority of the board of trustees of the Indiana public
Graphic file number 0 named seal1001.pcx with height 58 p and width 72 p Left aligned
