Bill Text: IN SB0248 | 2013 | Regular Session | Engrossed
Bill Title: State employee deferred compensation contributions.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Passed) 2013-05-13 - Public Law 242 [SB0248 Detail]
Download: Indiana-2013-SB0248-Engrossed.html
Citations Affected: IC 2-3.5; IC 5-10; IC 11-10; IC 22-2.
Synopsis: State pensions and wage payment and wage claims.
Increases to 2% the amount of a state employee's base salary
contributed during the first year the employee is automatically enrolled
in the state's deferred compensation plan (plan), if that amount is
greater than the maximum state match. (Currently, a state employee's
contribution in the first year the employee is automatically enrolled in
the plan is the greater of: (1) the maximum state match; or (2) 0.5% of
the employee's base salary.) Provides that benefits and assets in the
legislators' defined contribution fund are exempt from levy, sale,
garnishment, attachment, or other legal process, and may not be
assigned, except in relation to a qualified domestic relations order.
Provides that criminal offenders in a facility operated by the
department of correction or operated by a private operator under
contract with the department of correction are exempt from certain
provisions concerning the frequency of wage payment and wage
claims.
Effective: Upon passage; July 1, 2013.
(HOUSE SPONSORS _ STEUERWALD, NIEZGODSKI)
January 7, 2013, read first time and referred to Committee on Pensions and Labor.
January 24, 2013, reported favorably _ Do Pass.
January 28, 2013, read second time, ordered engrossed. Engrossed.
January 29, 2013, read third time, call withdrawn.
January 31, 2013, read third time, passed. Yeas 37, nays 12.
February 26, 2013, read first time and referred to Committee on Employment, Labor and Pensions.
March 21, 2013, amended, reported _ Do Pass.
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A BILL FOR AN ACT to amend the Indiana Code concerning state
pensions and wage payment and wage claims.
(1) premiums on a life, hospitalization, surgical, or medical group insurance plan maintained in part by a state agency;
(2) dues to an association that proves to the board's satisfaction that the association has as members at least twenty percent (20%) of the retired participants in the legislators' defined benefit plan;
or
(3) a payment made under a qualified domestic relations
order.
(b) Unless an employee notifies the state that the employee does not want to enroll in the deferred compensation plan, on day thirty-one (31) of the employee's employment:
(1) the employee is automatically enrolled in the deferred compensation plan; and
(2) the state is authorized to begin deductions as otherwise allowed under this chapter.
(c) The auditor of state shall provide written notice to an employee of the provisions of this chapter. The notice provided under this subsection must:
(1) be provided:
(A) with the employee's first paycheck; and
(B) on paper that is a color that is separate and distinct from the color of the employee's paycheck;
(2) contain a statement concerning:
(A) the purposes of;
(B) procedures for notifying the state that the employee does not want to enroll in;
(C) the tax consequences of; and
(D) the details of the state match for employee contribution to;
the deferred compensation plan; and
(3) list the telephone number, electronic mail address, and other contact information for the auditor of state, who serves as plan administrator.
(d) This subsection applies to contributions made before July 1, 2011. Notwithstanding IC 22-2-6, except as provided by subsection
(e) This subsection applies to contributions made after June 30, 2011, and before July 1, 2013. Notwithstanding IC 22-2-6 and except as provided by subsection
state shall deduct each pay period from the employee's compensation
as a contribution to the deferred compensation plan an amount equal
to the greater of the following:
(1) The maximum amount of any match provided by the state on
behalf of the employee to a defined contribution plan established
under section 1.5(a) of this chapter.
(2) One-half percent (0.5%) of the employee's base salary.
(f) This subsection applies to contributions made after June 30,
2013. Notwithstanding IC 22-2-6 and except as provided by
subsection (h), during the first year an employee is enrolled under
subsection (b) in the deferred compensation plan, the state shall
deduct each pay period from the employee's compensation as a
contribution to the deferred compensation plan an amount equal
to the greater of the following:
(1) The maximum amount of any match provided by the state
on behalf of the employee to a defined contribution plan
established under section 1.5(a) of this chapter.
(2) Two percent (2%) of the employee's base salary.
(f) (g) This subsection applies to a year:
(1) after the first year in which an employee is enrolled in the
deferred compensation plan; and
(2) in which the employee does not affirmatively choose a
contribution amount under subsection (g). (h).
The percentage of the employee's base salary used for the year in
subsection (e)(2) or (f)(2) to determine the employee's contribution
increases by one-half percent (0.5%) from the percentage determined
in the immediately preceding year. for five (5) years. The maximum
percentage of an employee's base salary that may be deducted under
this subsection is three percent (3%). The contribution increase occurs
on the anniversary date of the employee's enrollment in the deferred
compensation plan.
(g) (h) An employee may contribute to the deferred compensation
plan established by the state under this chapter an amount other than
the amount described in subsections (d) through (f) (g) by affirmatively
choosing to contribute:
(1) a higher amount;
(2) a lower amount; or
(3) zero (0).
(b) An offender may be employed under this chapter only on a voluntary basis and only after the offender has been informed of the conditions of the offender's employment.
(c) An offender employed under this chapter is not eligible for unemployment compensation benefits under workforce development laws.
(d) An offender employed in accordance with this chapter is subject to IC 22-2-5-3 and IC 22-2-9-8.
(1) Farmers and those engaged in the business of agriculture and horticulture.
(2) Criminal offenders in a facility operated by the department of correction (as established by IC 11-8-2-1) or operated by a private operator under contract with the department of correction.