Bill Text: IN SB0527 | 2013 | Regular Session | Introduced
Bill Title: Judges' pensions.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-05-13 - Public Law 56 [SB0527 Detail]
Download: Indiana-2013-SB0527-Introduced.html
Citations Affected: IC 33-38; IC 33-39-7.
Synopsis: Judges' and prosecutors' pensions. Changes various
provisions of the judges' 1985 retirement system to incorporate features
that are the same as or similar to features found in the prosecuting
attorneys' retirement fund law, including the definition of "salary", the
age and service requirements to receive an unreduced retirement
benefit, the benefit reduction percentage for early retirement, a
reduction in survivor benefits for early retirement, the requirement of
active service with at least five years of creditable service to receive a
disability benefit, and the computation of a disability benefit. Changes
various provisions of the prosecuting attorneys retirement fund law to
incorporate features that are the same as or similar to features found in
the judges' 1985 retirement system, including pretax "pick-up" for
participant contributions, a 22 year contribution period, interest on
participant amounts credited at least annually at a rate determined by
the board of trustees of the Indiana public retirement system, partial
years of service used in benefit computation, survivor's benefit paid for
a participant who dies in service, and the minimum annual survivor's
benefit increased from $7,000 to $12,000.
Effective: July 1, 2013.
January 14, 2013, read first time and referred to Committee on Pensions and Labor.
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
A BILL FOR AN ACT to amend the Indiana Code concerning
pensions.
(b) This subsection applies to salary earned for services performed after June 30, 2013, by a participant in the judges' 1985 retirement system. As used in this chapter, "salary" means the salary paid to a participant by the state, determined without regard to any salary reduction agreement established under Section 125 of the Internal Revenue Code. The term does not include an amount paid to a participant by a county or counties.
(1) the auditor of state; and
(2) the county auditor, for a salary warrant drawn for services performed before July 1, 2013, for a participant in the judges' 1985 retirement system;
shall deduct from the amount of the warrant the participant's contribution, if any, to the fund in the amount certified in the vouchers or an order issued by the director.
(b) The auditor of state and the county auditor shall draw a warrant to the fund for the total contributions withheld from the participants each month. The warrant drawn to the fund together with a list of participants and the amount withheld from each participant shall be transmitted immediately to the director.
(c) After December 31, 2011, the auditor of state and the county auditor shall submit the contributions paid by or on behalf of a participant under this section by electronic funds transfer in accordance with section 21.5 of this chapter.
(1) the auditor of state; and
(2) the county auditor, for a salary warrant drawn for services performed before July 1, 2013, for a participant in the judges' 1985 retirement system.
(b) The auditor of state and the county auditor, in the preparation of salary warrants to participants, shall indicate on the payroll voucher the following information, in addition to other things:
(1) The amount of the participant's contribution to the fund deducted from the salary of the participant.
(2) The net amount payable to the participant, after the deduction of the participant's contribution.
(b) This subsection applies to salary earned for services performed after June 30, 2013. As used in this chapter, "salary" means the salary paid to a participant by the state, determined without regard to any salary reduction agreement established under Section 125 of the Internal Revenue Code. The term does not
include an amount paid to a participant by a county or counties.
(1) The date on which the benefit begins is not:
(A) before the date of final termination of employment of the participant; or
(B) the date thirty (30) days before the receipt of the application by the board.
(2) The participant:
(A) is at least sixty-two (62) years of age and has at least eight (8) years of service credit;
(B) is at least fifty-five (55) years of age and the participant's age in years plus the participant's years of service is at least eighty-five (85), for a participant who applies to receive a retirement benefit before July 1, 2013; or
(C)
(3) The participant is not receiving a salary from the state for services currently performed as:
(A) a judge (as defined in IC 33-38-6-7); or
(B) a magistrate under IC 33-23-5.
(b) A participant who:
(1) applies for a retirement benefit; and
(2) is at least:
(A) sixty-five (65) years of age; or
(B) fifty-five (55) years of age and meets the requirements under section 13(2)(B) of this chapter, for a participant who applies to receive a retirement benefit before July 1, 2013;
is entitled to an annual retirement benefit as calculated in subsection (c).
(c) The annual retirement benefit for a participant who meets the requirements of subsection (b) equals the product of:
(1) the applicable salary determined under subsection
(2) the percentage prescribed in the following table:
Participant's Years Percentage
of Service
8 24%
9 27%
10 30%
11 33%
12 50%
13 51%
14 52%
15 53%
16 54%
17 55%
18 56%
19 57%
20 58%
21 59%
22 or more 60%
If a participant has a partial year of service in addition to at least eight (8) full years of service, an additional percentage shall be calculated by prorating between the applicable percentages, based on the number of months in the partial year of service.
(d) Except as provided in section 13(2)(B) of this chapter and subsection (b)(2)(B), if a participant who applies for a retirement benefit has not attained sixty-five (65) years of age, the participant is entitled to receive a reduced annual retirement benefit that equals the benefit that would be payable if the participant were sixty-five (65) years of age reduced by:
(1) one-tenth percent (0.1%), for a participant who applies to receive a retirement benefit before July 1, 2013; or
(2) one-fourth percent (0.25%), for a participant who applies to receive a retirement benefit after June 30, 2013;
for each month that the participant's age at retirement precedes the participant's sixty-fifth birthday.
(e) The reduction described in subsection (d) does not apply to:
(1)
(2) survivors of
(3) survivors of
(1) The salary that was being paid to the participant at the time of the participant's separation from service for:
(A) a participant who applies to receive a retirement benefit from the fund before January 1, 2010; or
(B) a participant who:
(i) before January 1, 2010, separates from service;
(ii) is entitled to receive a retirement benefit from the fund, but does not apply before January 1, 2010, to receive a retirement benefit; and
(iii) does not earn any service credit in the fund after December 31, 2009.
(2) The salary being paid for the office that the participant held at the time of the participant's separation from service for a participant who:
(A) applies to receive a benefit after December 31, 2009; and
(B) is not a participant described in subdivision (1)(B).
(1) the participant has at least five (5) years of creditable service, for a participant who applies to receive a disability benefit after June 30, 2013; and
(2) the board has received a written certification by at least two (2) licensed and practicing physicians, appointed by the board, that:
(b) The participant shall be reexamined by at least two (2) physicians appointed by the board, at the times the board designates but at intervals not to exceed one (1) year. If, in the opinion of these physicians, the participant has recovered from the participant's disability, then benefits shall cease to be payable as of the date of the examination unless, on that date, the participant is at least:
(1) sixty-five (65) years of age; or
(2) fifty-five (55) years of age and meets the requirements under section 13(2)(B) of this chapter, for a participant who applies to receive a disability benefit before July 1, 2013.
(c) To the extent required by the Americans with Disabilities Act, the transcripts, reports, records, and other material generated by the initial and periodic examinations and reviews to determine eligibility for disability benefits under this section shall be:
(1) kept in separate medical files for each member; and
(2) treated as confidential medical records.
(b) A participant who
(1) the salary that was paid to the participant at the time of separation from service; multiplied by
(2) the percentage prescribed in the following table:
Participant's Years Percentage
of Service
0-12 50%
13 51%
14 52%
15 53%
16 54%
17 55%
18 56%
19 57%
20 58%
21 59%
22 or more 60%
If a participant has a partial year of service in addition to at least eight (8) full years of service, an additional percentage shall be calculated by prorating between the applicable percentages, based on the number of months in the partial year of service.
(c) A participant who first meets the requirements for disability benefits under section 15 of this chapter after June 30, 2013, is entitled to an annual benefit that equals the product of:
(1) the salary that was paid to the participant at the time of
separation from service; multiplied by
(2) the percentage prescribed in the following table:
Participant's Years
Percentage
of Service
Less than 5
0
5-10 40%
11 41%
12 42%
13 43%
14 44%
15 45%
16 46%
17 47%
18 48%
19 49%
20 or more 50%
If a participant has a partial year of service in addition to at least
eight (8) full years of service, an additional percentage shall be
calculated by prorating between the applicable percentages, based
on the number of months in the partial year of service.
(1) is a judge participating under this chapter;
(2) was appointed by a court to serve as a full-time referee, full-time commissioner, or, before January 1, 2011, full-time magistrate, either:
(A) before becoming a judge; or
(B) after leaving an elected term on the bench;
(3) was a member of the public employees' retirement fund during the employment described in subdivision (2); and
(4) received credited service under the public employees' retirement fund for the employment described in subdivision (2).
(b) If a person becomes a participant as a judge in the judges' 1985 benefit system under section 1 of this chapter, credit for service by the judge as a full-time referee, full-time commissioner, or, before January 1, 2011, full-time magistrate shall be granted under this chapter by the board if:
(1) the service was credited under the public employees' retirement fund;
(2) the state contributes to the judges' 1985 benefit system the amount the board determines necessary to amortize the service
liability over a period determined by the board, but not more than
ten (10) years; and
(3) the judge pays in a lump sum or in a series of payments
determined by the board, not exceeding five (5) annual payments,
the amount the judge would have contributed if the judge had
been a member of the judges' 1985 benefit system during the
service.
(c) If the requirements of subsection (b)(2) and (b)(3) are not
satisfied, a participant is entitled to credit only for years of service
earned as a participant in the judges' 1985 benefit system.
(d) An amortization schedule for contributions paid under
subsection (b)(2) or (b)(3) must include interest at a rate determined by
the board.
(e) The following provisions apply to a person described in
subsection (a):
(1) A minimum benefit applies to participants receiving credit in
the judges' 1985 benefit system from service covered by the
public employees' retirement fund. The minimum benefit is
payable at sixty-five (65) years of age, or when the participant is
at least fifty-five (55) years of age and meets the requirements
under section 13(2)(B) of this chapter for a participant who
applies to receive a retirement benefit before July 1, 2013, and
equals the actuarial equivalent of the vested retirement benefit
that is:
(A) payable to the member at normal retirement under
IC 5-10.2-4-1 as of the day before the transfer; and
(B) based solely on:
(i) creditable service;
(ii) the average of the annual compensation; and
(iii) the amount credited under IC 5-10.2 and IC 5-10.3 to
the annuity savings account of the transferring member as of
the day before the transfer.
(2) If the requirements of subsection (b)(2) and (b)(3) are
satisfied, the board shall transfer from the public employees'
retirement fund to the judges' 1985 benefit system the amount
credited to the annuity savings account and the present value of
the retirement benefit that is:
(A) attributable to the retiring participant; and
(B) payable at:
(i) sixty-five (65) years of age; or
(ii) at least fifty-five (55) years of age under section
13(2)(B) of this chapter, that is attributable to the
transferring participant. for a participant who applies to
receive a retirement benefit before July 1, 2013.
(3) The amount the state and the participant must contribute to the
judges' 1985 benefit system under subsection (b) shall be reduced
by the amount transferred to the judges' 1985 benefit system by
the board under subdivision (2).
(4) If the requirements of subsection (b)(2) and (b)(3) are
satisfied, credit for service in the public employees' retirement
fund as a full-time referee, full-time commissioner, or, before
January 1, 2011, full-time magistrate is waived. Any credit for the
service under the judges' 1985 benefit system may be granted only
under subsection (b).
(f) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the judges' 1985 benefit system may accept, on
behalf of a participant who is purchasing permissive service credit
under subsection (b), 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 judges' 1985 benefit system may accept, on
behalf of a participant who is purchasing permissive service credit
under subsection (b), 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) is a full-time magistrate participating under this chapter;
(2) was appointed by a court to serve as:
(A) a full-time referee or full-time commissioner; or
(B) before January 1, 2011, a full-time magistrate;
(3) was a member of the public employees' retirement fund during the employment described in subdivision (2); and
(4) received credited service under the public employees' retirement fund for the employment described in subdivision (2).
(b) If a person becomes a participant as a full-time magistrate in the judges' 1985 benefit system under section 1 of this chapter, credit for service by the magistrate as a full-time referee, full-time commissioner, or, before January 1, 2011, full-time magistrate shall be granted under this chapter by the board if:
(1) the service was credited under the public employees' retirement fund; and
(2) the magistrate pays in a lump sum or in a series of payments determined by the board, not exceeding five (5) annual payments, the amount determined by the actuary for the judges' 1985 benefit system as the total cost of the service.
(c) If the requirements of subsection (b) are not satisfied, a participant is entitled to credit only for years of service earned as a participant in the judges' 1985 benefit system.
(d) An amortization schedule for contributions paid under this section must include interest at a rate determined by the board.
(e) The following provisions apply to a person described in subsection (a):
(1) A minimum benefit applies to participants receiving credit in the judges' 1985 benefit system from service covered by the public employees' retirement fund. The minimum benefit is payable at sixty-five (65) years of age, or when the participant is at least fifty-five (55) years of age and meets the requirements under section 13(2)(B) of this chapter for a participant who applies to receive a retirement benefit before July 1, 2013, and equals the actuarial equivalent of the vested retirement benefit that is:
(A) payable to the member at normal retirement under IC 5-10.2-4-1 as of the day before the transfer; and
(B) based solely on:
(i) creditable service;
(ii) the average of the annual compensation; and
(iii) the amount credited under IC 5-10.2 and IC 5-10.3 to the annuity savings account of the transferring member as of the day before the transfer.
(2) If the requirements of subsection (b) are satisfied, the board
shall transfer from the public employees' retirement fund to the
judges' 1985 benefit system the amount credited to the annuity
savings account and the present value of the retirement benefit
that is:
(A) attributable to the transferring participant; and
(B) payable at:
(i) sixty-five (65) years of age; or
(ii) at least fifty-five (55) years of age under section
13(2)(B) of this chapter, that is attributable to the
transferring participant. for a participant who applies to
receive a retirement benefit before July 1, 2013.
(3) The amount the participant must contribute to the judges' 1985
benefit system under subsection (b) shall be reduced by the
amount transferred to the judges' 1985 benefit system by the
board under subdivision (2).
(4) If the requirements of subsection (b) are satisfied, credit for
service in the public employees' retirement fund as a full-time
referee, full-time commissioner, or before July 1, 2010, full-time
magistrate that is purchased under this section is waived. Any
credit for the service under the judges' 1985 benefit system may
be granted only under subsection (b).
(f) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the judges' 1985 benefit system may accept, on
behalf of a participant who is purchasing permissive service credit
under subsection (b), 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 judges' 1985 benefit system may accept, on
behalf of a participant who is purchasing permissive service credit
under subsection (b), 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) A participant described in section 8(a)(1) of this chapter shall make contributions of six percent (6%) of each payment of salary received for services after December 31, 1989.
(2) A participant described in section 8(a)(2) or 8(a)(3) of this chapter shall make contributions of six percent (6%) of each payment of salary received for services after June 30, 1994.
A participant's contributions shall be deducted from the participant's monthly salary by the auditor of state and credited to the fund.
(b) The state may pay the contributions for a participant. The state may elect to pay the contribution for the participant as a pickup under Section 414(h) of the Internal Revenue Code.
(c) After a participant has contributed to the fund as provided in subsection (a) for twenty-two (22) years, the participant is not required to make additional contributions to the fund.
(b) Contributions begin to accumulate interest at the beginning of the fiscal year after the year in which the contributions are due or at an alternate time established by the rules of the board.
(c) When a member retires or withdraws from the fund, a proportional interest credit determined under this chapter shall be paid for the period elapsed since the last date on which interest was credited.
(b) Except as provided in subsections (c) and (d), the amount of the annual retirement benefit to which a participant who applies for a retirement benefit and who is at least sixty-five (65) years of age is entitled equals the product of:
(1) the highest annual salary that was paid to the participant before separation from service; multiplied by
(2) the percentage prescribed in the following table:
Participant's Years Percentage
of Service
Less than 8 0
8 24%
9 27%
10 30%
11 33%
12 50%
13 51%
14 52%
15 53%
16 54%
17 55%
18 56%
19 57%
20 58%
21 59%
22 or more 60%
If a participant has a partial year of service in addition to at least eight (8) full years of service, an additional percentage is calculated under this subsection by prorating between the applicable percentages, based on the number of months in the partial year of service.
(c) If a participant who applies for a retirement benefit is not at least sixty-five (65) years of age, the participant is entitled to receive a reduced annual retirement benefit that equals the benefit that would be payable if the participant were sixty-five (65) years of age reduced by one-fourth percent (0.25%) for each month that the participant's age at retirement precedes the participant's sixty-fifth birthday.
(d) Benefits payable to a participant under this section are reduced by the pension, if any, that would be payable to the participant from the public employees' retirement fund if the participant had retired from the public employees' retirement fund on the date of the participant's retirement from the prosecuting attorneys retirement fund. Benefits payable to a participant under this section are not reduced by annuity
payments made to the participant from the public employees' retirement
fund.
(e) If benefits payable from the public employees' retirement fund
exceed the benefits payable from the prosecuting attorneys retirement
fund, the participant is entitled at retirement to withdraw from the
prosecuting attorneys retirement fund the total sum contributed plus
interest at a rate specified by rule by the board.
(1) the annual salary that was paid to the participant at the time of separation from service; multiplied by
(2) the percentage prescribed in the following table:
Participant's Years Percentage
of Service
Less than 5 0
5-10 40%
11 41%
12 42%
13 43%
14 44%
15 45%
16 46%
17 47%
18 48%
19 49%
20 or more 50%
If a participant has a partial year of service in addition to at least five (5) years of service, an additional percentage is calculated under this subsection by prorating between the applicable percentages, based on the number of months in the partial year of service.
(b) Benefits payable to a participant under this section are reduced by the amounts, if any, that are payable to the participant from the public employees' retirement fund.
(1) dies; and
(2) on the date of death:
(A) was receiving benefits under this chapter;
(B) was in service and had completed at least eight (8) years of service in a position described in section 8 of this chapter;
(C) met the requirements for disability benefits under section 17 of this chapter; or
(D) was not in service in a position described in section 8 of this chapter, had completed at least eight (8) years of service in a position described in section 8 of this chapter, and was entitled to a future benefit;
is entitled, regardless of the participant's age, to the benefit prescribed by subsection (b).
(b) The surviving spouse is entitled to a benefit for life equal to the greater of:
(1)
(2) fifty percent (50%) of the amount of retirement benefit the participant was drawing at the time of death, or to which the participant would have been entitled had the participant retired and begun receiving retirement benefits on the date of death, with reductions as necessary under section 16(c) of this chapter.
(c) Benefits payable to a surviving spouse under this section are reduced by the amounts, if any, that are payable to the surviving spouse from the public employees' retirement fund as a result of the participant's death.
