CHAPTER 2. THE RETIREMENT FUNDS
IC 5-10.2-2
Chapter 2. The Retirement Funds
IC 5-10.2-2-1
Scope; purpose
Sec. 1. Scope; Purpose. (a) This article applies to the Indiana stateteachers' retirement fund and the public employees' retirement fund.Each retirement fund covered by this article is a separate retirementfund managed by its board under its retirement fund law. Each boardshall make and publish regulations which are appropriate to theefficient administration of this article. The obligations of the stateand political subdivisions for benefit payments are specified in eachretirement fund law.
(b) Each fund is an independent body corporate and politic. Afund is not a department or agency of the state but is an independentinstrumentality exercising essential government functions.
(c) For purposes of IC 34-13-2, IC 34-13-3, and IC 34-13-4, eachboard, each fund, and all employees of each board or fund are publicemployees (as defined in IC 34-6-2-38). All employees of each boardor fund employed within a classification covered by a laboragreement to which the state is a party shall continue to remainsubject to the terms and conditions of that agreement and anysuccessor labor agreements entered into by the state.
(d) The benefits specified in this article and the benefits from theSocial Security Act provide the retirement, disability, and survivorbenefits for public employees and teachers. However, this articledoes not prohibit a political subdivision from establishing andproviding before January 1, 1995, and continuing to provide afterJanuary 1, 1995, retirement, disability, and survivor benefits for thepublic employees of the political subdivision independent of thisarticle if the political subdivision took action before January 1, 1995,and was not a participant in the public employees' retirement fund onJanuary 1, 1995, under this article or IC 5-10.3.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.66-1995,SEC.2; P.L.65-1995, SEC.2; P.L.119-2000, SEC.2.
IC 5-10.2-2-1.5
Qualification under Internal Revenue Code
Sec. 1.5. Each retirement fund covered by this article shall satisfythe qualification requirements in Section 401 of the Internal RevenueCode, as applicable to each retirement fund. In order to meet thoserequirements, each fund is subject to the following provisions,notwithstanding any other provision of the retirement fund law:
(1) Each board shall distribute the corpus and income of thefund to members and their beneficiaries in accordance with theretirement fund law.
(2) No part of the corpus or income of a fund may be used foror diverted to any purpose other than the exclusive benefit ofthe members and their beneficiaries.
(3) Forfeitures arising from severance of employment, death, or
for any other reason may not be applied to increase the benefitsany member would otherwise receive under the retirement fundlaw.
(4) If a fund is terminated, or if all contributions to a fund arecompletely discontinued, the rights of each affected member tothe benefits accrued at the date of the termination ordiscontinuance, to the extent then funded, are nonforfeitable.
(5) All benefits paid from a retirement fund shall be distributedin accordance with the requirements of Section 401(a)(9) of theInternal Revenue Code and the regulations under that section.In order to meet those requirements, each retirement fund issubject 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 theinitial determination for purposes of determining benefits.
(B) If a member dies before the distribution of the member'sbenefits has begun, distributions to beneficiaries must beginno later than December 31 of the calendar year immediatelyfollowing the calendar year in which the member died.
(C) The amount of an annuity paid to a member's beneficiarymay not exceed the maximum determined under theincidental death benefit requirement of the Internal RevenueCode.
(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 areconsidered officers, supervisors, or highly compensated, asprohibited under Section 401(a)(4) of the Internal RevenueCode.
(7) Benefits paid under this chapter may not exceed themaximum benefits specified by Section 415 of the InternalRevenue Code.
(8) The salary taken into account under this chapter may notexceed the applicable amount under Section 401(a)(17) of theInternal Revenue Code.
(9) The board may not engage in a transaction prohibited bySection 503(b) of the Internal Revenue Code.
As added by P.L.55-1989, SEC.8.
IC 5-10.2-2-2
Separate accounts and subaccounts
Sec. 2. (a) The board of the public employees' retirement fundshall maintain the following separate accounts:
(1) The annuity savings account.
(2) The retirement allowance account.
(b) The board of the Indiana state teachers' retirement fund shallmaintain the following two (2) separate accounts:
(1) The pre-1996 account. (2) The 1996 account.
(c) Within each account specified in subsection (b), the board ofthe Indiana state teachers' retirement fund shall maintain thefollowing separate subaccounts:
(1) The annuity savings account.
(2) The retirement allowance account.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985,SEC.3; P.L.54-1993, SEC.5.
IC 5-10.2-2-2.5
Investment guidelines and limits established by boards;commingling of assets
Sec. 2.5. (a) Each board may establish investment guidelines andlimits on all types of investments (including, but not limited to,stocks and bonds) and take other actions necessary to fulfill its dutyas a fiduciary for all assets under its control, subject to thelimitations and restrictions set forth in section 18 of this chapter,IC 5-10.3-5-3, and IC 5-10.4-3-10.
(b) Each board may commingle or pool assets with the assets ofany other persons or entities. This authority includes, but is notlimited to, the power to invest in commingled or pooled funds,partnerships, or mortgage pools, including pools that consist in partor entirely of mortgages that qualify as five star mortgages under theprogram established by IC 24-5-23.6. In the event of any suchinvestment, the board shall keep separate detailed records of theassets invested. Any decision to commingle or pool assets is subjectto the limitations and restrictions set forth in IC 5-10.3-5-3 andIC 5-10.4-3-10.
As added by P.L.43-1997, SEC.1. Amended by P.L.61-2002, SEC.2;P.L.224-2003, SEC.185; P.L.2-2006, SEC.20; P.L.115-2010, SEC.2.
IC 5-10.2-2-3 Version a
Annuity savings account; guaranteed programs; alternativeinvestment programs
Note: This version of section effective until 7-1-2010. See alsofollowing version of this section, effective 7-1-2010.
Sec. 3. (a) The annuity savings account consists of:
(1) the members' contributions; and
(2) the interest credits on these contributions in the guaranteedfund or the gain or loss in market value on these contributionsin the alternative investment program, as specified in section 4of this chapter.
Each member shall be credited individually with the amount of themember's contributions and interest credits.
(b) Each board shall maintain the annuity savings accountprogram in effect on December 31, 1995 (referred to in this chapteras the guaranteed program). In addition, the board of the Indianastate teachers' retirement fund shall establish and maintain aguaranteed program within the 1996 account. Each board mayestablish investment guidelines and limits on all types of investments
(including, but not limited to, stocks and bonds) and take otheractions necessary to fulfill its duty as a fiduciary of the annuitysavings account, subject to the limitations and restrictions set forthin IC 5-10.3-5-3 and IC 5-10.4-3-10.
(c) Each board shall establish alternative investment programswithin the annuity savings account of the public employees'retirement fund, the pre-1996 account, and the 1996 account, basedon the following requirements:
(1) Each board shall maintain at least one (1) alternativeinvestment program that is an indexed stock fund and one (1)alternative investment program that is a bond fund.
(2) The programs should represent a variety of investmentobjectives under IC 5-10.3-5-3.
(3) No program may permit a member to withdraw money fromthe member's account except as provided in IC 5-10.2-3 andIC 5-10.2-4.
(4) All administrative costs of each alternative program shall bepaid from the earnings on that program or as may be determinedby the rules of each board.
(5) Except as provided in section 4(e) of this chapter, avaluation of each member's account must be completed as of:
(A) the last day of each quarter; or
(B) another time as each board may specify by rule.
(d) The board must prepare, at least annually, an analysis of theguaranteed program and each alternative investment program. Thisanalysis must:
(1) include a description of the procedure for selecting analternative 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 tothe member among the guaranteed fund and any available alternativeinvestment funds, subject to the following conditions:
(1) A member may make a selection or change an existingselection under rules established by each board. A board shallallow a member to make a selection or change any existingselection at least once each quarter.
(2) The board shall implement the member's selection beginningon the first day of the next calendar quarter that begins at leastthirty (30) days after the selection is received by the board or onan alternate date established by the rules of each board. Thisdate is the effective date of the member's selection.
(3) A member may select any combination of the guaranteedfund or any available alternative investment funds, in tenpercent (10%) increments or smaller increments that may beestablished by the rules of each board.
(4) A member's selection remains in effect until a new selectionis made.
(5) On the effective date of a member's selection, the boardshall reallocate the member's existing balance or balances in
accordance with the member's direction, based on:
(A) for an alternative investment program balance, themarket value on the effective date; and
(B) for any guaranteed program balance, the account balanceon the effective date.
All contributions to the member's account shall be allocated asof the last day of that quarter or at an alternate time establishedby the rules of each board in accordance with the member'smost recent effective direction. The board shall not reallocatethe member's account at any other time.
(f) When a member who participates in an alternative investmentprogram transfers the amount credited to the member from one (1)alternative investment program to another alternative investmentprogram or to the guaranteed program, the amount credited to themember shall be valued at the market value of the member'sinvestment, as of the day before the effective date of the member'sselection or at an alternate time established by the rules of eachboard. When a member who participates in an alternative investmentprogram retires, becomes disabled, dies, or suspends membershipand withdraws from the fund, the amount credited to the membershall be the market value of the member's investment as of the lastday of the quarter preceding the member's distribution orannuitization at retirement, disability, death, or suspension andwithdrawal, plus contributions received after that date or at analternate time established by the rules of each board.
(g) When a member who participates in the guaranteed programtransfers the amount credited to the member to an alternativeinvestment program, the amount credited to the member in theguaranteed program is computed without regard to market value andis based on the balance of the member's account in the guaranteedprogram as of the last day of the quarter preceding the effective dateof the transfer. However, each board may by rule provide for analternate valuation date. When a member who participates in theguaranteed program retires, becomes disabled, dies, or suspendsmembership and withdraws from the fund, the amount credited to themember shall be computed without regard to market value and isbased on the balance of the member's account in the guaranteedprogram as of the last day of the quarter preceding the member'sdistribution or annuitization at retirement, disability, death, orsuspension and withdrawal, plus any contributions received sincethat date plus interest since that date. However, each board may byrule provide for an alternate valuation date.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985,SEC.4; P.L.40-1986, SEC.1; P.L.58-1987, SEC.1; P.L.55-1989,SEC.9; P.L.54-1993, SEC.6; P.L.43-1997, SEC.2; P.L.195-1999,SEC.9; P.L.285-2001, SEC.1; P.L.62-2005, SEC.1; P.L.2-2006,SEC.21; P.L.165-2009, SEC.2; P.L.1-2010, SEC.17.
IC 5-10.2-2-3 Version b
Annuity savings account; guaranteed programs; alternative
investment programs
Note: This version of section effective 7-1-2010. See alsopreceding version of this section, effective until 7-1-2010.
Sec. 3. (a) The annuity savings account consists of:
(1) the members' contributions; and
(2) the interest credits on these contributions in the guaranteedfund or the gain or loss in market value on these contributionsin the alternative investment program, as specified in section 4of this chapter.
Each member shall be credited individually with the amount of themember's contributions and interest credits.
(b) Each board shall maintain the annuity savings accountprogram in effect on December 31, 1995 (referred to in this chapteras the guaranteed program). In addition, the board of the Indianastate teachers' retirement fund shall establish and maintain aguaranteed program within the 1996 account. Each board mayestablish investment guidelines and limits on all types of investments(including, but not limited to, stocks and bonds) and take otheractions necessary to fulfill its duty as a fiduciary of the annuitysavings account, subject to the limitations and restrictions set forthin IC 5-10.3-5-3 and IC 5-10.4-3-10.
(c) Each board shall establish alternative investment programswithin the annuity savings account of the public employees'retirement fund, the pre-1996 account, and the 1996 account, basedon the following requirements:
(1) Each board shall maintain at least one (1) alternativeinvestment program that is an indexed stock fund and one (1)alternative investment program that is a bond fund. Each boardmay maintain one (1) or more alternative investment programsthat:
(A) invest in one (1) or more commingled or pooled fundsthat consist in part or entirely of mortgages that qualify asfive star mortgages under the program established byIC 24-5-23.6; or
(B) otherwise invest in mortgages that qualify as five starmortgages under the program established by IC 24-5-23.6.
(2) The programs should represent a variety of investmentobjectives under IC 5-10.3-5-3.
(3) No program may permit a member to withdraw money fromthe member's account except as provided in IC 5-10.2-3 andIC 5-10.2-4.
(4) All administrative costs of each alternative program shall bepaid from the earnings on that program or as may be determinedby the rules of each board.
(5) Except as provided in section 4(e) of this chapter, avaluation of each member's account must be completed as of:
(A) the last day of each quarter; or
(B) another time as each board may specify by rule.
(d) The board must prepare, at least annually, an analysis of theguaranteed program and each alternative investment program. This
analysis must:
(1) include a description of the procedure for selecting analternative 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 tothe member among the guaranteed fund and any available alternativeinvestment funds, subject to the following conditions:
(1) A member may make a selection or change an existingselection under rules established by each board. A board shallallow a member to make a selection or change any existingselection at least once each quarter.
(2) The board shall implement the member's selection beginningon the first day of the next calendar quarter that begins at leastthirty (30) days after the selection is received by the board or onan alternate date established by the rules of each board. Thisdate is the effective date of the member's selection.
(3) A member may select any combination of the guaranteedfund or any available alternative investment funds, in tenpercent (10%) increments or smaller increments that may beestablished by the rules of each board.
(4) A member's selection remains in effect until a new selectionis made.
(5) On the effective date of a member's selection, the boardshall reallocate the member's existing balance or balances inaccordance with the member's direction, based on:
(A) for an alternative investment program balance, themarket value on the effective date; and
(B) for any guaranteed program balance, the account balanceon the effective date.
All contributions to the member's account shall be allocated asof the last day of that quarter or at an alternate time establishedby the rules of each board in accordance with the member'smost recent effective direction. The board shall not reallocatethe member's account at any other time.
(f) When a member who participates in an alternative investmentprogram transfers the amount credited to the member from one (1)alternative investment program to another alternative investmentprogram or to the guaranteed program, the amount credited to themember shall be valued at the market value of the member'sinvestment, as of the day before the effective date of the member'sselection or at an alternate time established by the rules of eachboard. When a member who participates in an alternative investmentprogram retires, becomes disabled, dies, or suspends membershipand withdraws from the fund, the amount credited to the membershall be the market value of the member's investment as of the lastday of the quarter preceding the member's distribution orannuitization at retirement, disability, death, or suspension andwithdrawal, plus contributions received after that date or at analternate time established by the rules of each board. (g) When a member who participates in the guaranteed programtransfers the amount credited to the member to an alternativeinvestment program, the amount credited to the member in theguaranteed program is computed without regard to market value andis based on the balance of the member's account in the guaranteedprogram as of the last day of the quarter preceding the effective dateof the transfer. However, each board may by rule provide for analternate valuation date. When a member who participates in theguaranteed program retires, becomes disabled, dies, or suspendsmembership and withdraws from the fund, the amount credited to themember shall be computed without regard to market value and isbased on the balance of the member's account in the guaranteedprogram as of the last day of the quarter preceding the member'sdistribution or annuitization at retirement, disability, death, orsuspension and withdrawal, plus any contributions received sincethat date plus interest since that date. However, each board may byrule provide for an alternate valuation date.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985,SEC.4; P.L.40-1986, SEC.1; P.L.58-1987, SEC.1; P.L.55-1989,SEC.9; P.L.54-1993, SEC.6; P.L.43-1997, SEC.2; P.L.195-1999,SEC.9; P.L.285-2001, SEC.1; P.L.62-2005, SEC.1; P.L.2-2006,SEC.21; P.L.165-2009, SEC.2; P.L.1-2010, SEC.17; P.L.115-2010,SEC.3.
IC 5-10.2-2-4
Interest; omitted contributions
Sec. 4. (a) Except as provided in subsection (e), interest shall becredited and compounded at least annually on all amounts creditedto the member in the guaranteed program. For the guaranteedprogram, the board shall annually establish an interest credit rateequal to or less than the investment income earned.
(b) Except as provided in subsection (e), the market value of eachalternative investment program shall be allocated at least annually tothe members participating in that program.
(c) Contributions to the guaranteed program and the alternativeinvestment programs shall be invested as of the last day of thequarter in which the contributions are received or at an alternate timeestablished by the rules of each board. Contributions to theguaranteed program shall begin to accumulate interest at thebeginning of the quarter after the quarter in which the contributionsare received or at an alternate time established by the rules of eachboard.
(d) When a member retires or withdraws with a balance in theguaranteed program, a proportional interest credit determined by theboard shall be granted for the period elapsed since the last interestdate on that balance.
(e) This subsection applies whenever the board is required toestablish an interest or earnings rate in order to credit interest orearnings to an omitted contribution to a member's annuity savingsaccount. As used in this subsection, "omitted contribution" means a
contribution contributed by or on behalf of a member underIC 5-10.3-7-9 or IC 5-10.4-4-11 that is received by the board after thetime 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 board may by rulespecify:
(1) a single composite interest rate and the period to which therate applies for the purpose of computing the interest credits ona member's contributions (including omitted contributions) inthe guaranteed fund; and
(2) a single composite earnings rate for the gain or loss inmarket value for each alternative investment program and theperiod to which the rate applies for the purpose of computingthe gain or loss in market value on a member's contributions(including omitted contributions) in the alternate investmentprogram.
As added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1977(ss),P.L.1, SEC.1; Acts 1980, P.L.28, SEC.1; P.L.35-1985, SEC.5;P.L.43-1997, SEC.3; P.L.195-1999, SEC.10; P.L.165-2009, SEC.3.
IC 5-10.2-2-5
Repealed
(Repealed by P.L.55-1989, SEC.67.)
IC 5-10.2-2-6
Retirement allowance accounts
Sec. 6. (a) The retirement allowance account of the publicemployees' retirement fund consists of the retirement fund, exclusiveof the annuity savings account. For the public employees' retirementfund, separate accounts within the retirement allowance account shallbe maintained for contributions made by the state and by eachpolitical subdivision.
(b) The retirement allowance account of the pre-1996 accountconsists of the pre-1996 account, exclusive of the annuity savingsaccount.
(c) The retirement allowance account of the 1996 account consistsof the 1996 account, exclusive of the annuity savings account. Forthe 1996 account, separate accounts within the retirement allowanceaccount shall be maintained for contributions made by the state, byeach school corporation, and by each institution.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.55-1989,SEC.10; P.L.54-1993, SEC.7.
IC 5-10.2-2-7
Transfer of accounts
Sec. 7. (a) When a member retires or dies in service underconditions which entitle a beneficiary or spouse to survivor benefitsand if the member or survivor chooses to receive an annuity from thefund, the annuity savings account shall be charged with the amountcredited to him in the account. This amount shall be credited to theretirement allowance account, and the annuity shall be paid from this
account.
(b) When:
(1) a member of the public employees' retirement fund who isan employee of a participating political subdivision; or
(2) a member of the Indiana state teachers' retirement fund whois covered by the 1996 account and is an employee of a schoolcorporation or other institution;
retires or dies in service under conditions which entitle a beneficiaryor spouse to survivor benefits, the political subdivision's, schoolcorporation's, or other institution's account in the retirementallowance account shall be charged with an amount equal to theactuarial reserve of the member's retirement pension or the survivorbenefit. The amount charged shall be credited to the retirementallowance account, and the retirement pension or survivor benefitshall be paid from this account.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985,SEC.6; P.L.54-1993, SEC.8.
IC 5-10.2-2-8
Payment and computation of benefits for combined creditableservice
Sec. 8. (a) For a member who retires after June 30, 2008, withservice in more than one (1) retirement fund, the member maychoose at the time the member files an application for retirementbenefits whether to retire from the Indiana state teachers' retirementfund or from the public employees' retirement fund. The fund that themember chooses shall pay the retirement benefits to the member. Thepension shall be computed and vested status shall be determined onthe basis of combined creditable service. The annuity, if any, shall becomputed on the basis of amounts credited to the member in annuitysavings accounts in all funds minus any amount withdrawn by themember under IC 5-10.2-3-6.5. The funds in which the employee wasa member shall pay to the fund responsible for payment of benefits:
(1) the amount credited to the member in the annuity savingsaccount; and
(2) the proportionate actuarial cost of the member's pension.
(b) A member of the Indiana state teachers' retirement fund whohas served as a member of the general assembly and who retires afterJune 30, 1980, may choose at the member's retirement date whetherto retire from the Indiana state teachers' retirement fund or from thepublic employees' retirement fund. If the member chooses to retirefrom the public employees' retirement fund, that fund is responsiblefor the payment of benefits provided in IC 5-10.2-4, and the Indianastate teachers' retirement fund shall pay to the public employees'retirement fund:
(1) the amount credited to that member in the annuity savingsaccount in the Indiana state teachers' retirement fund; and
(2) the proportionate actuarial cost of the member's pension.
As added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1980,P.L.28, SEC.2; P.L.35-1985, SEC.7; P.L.115-2008, SEC.5.
IC 5-10.2-2-9
Actuarial investigation and valuation
Sec. 9. (a) The funds may employ a common actuary or actuarialservice.
(b) At least once in every five (5) years and in every year in whichthis article is amended so that benefits are changed, the actuary shallmake a separate actuarial investigation for each fund and for the1996 account of the mortality, service, and compensation experienceof the members and their beneficiaries and shall make a valuation ofthe assets and liabilities of the fund or account, using the "entry-agenormal cost" method.
(c) The actuarial investigation must include in the determinationof the liability and the rates of contribution the amount necessary tofully fund past and estimated future cost of living increases formembers of the public employees' retirement fund amortized overthirty (30) years. The actuary shall consult with the budget agency inmaking this determination.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.54-1993,SEC.9; P.L.246-2005, SEC.48.
IC 5-10.2-2-10
Mortality tables
Sec. 10. Based on the actuarial investigation and valuation insection 9 of this chapter, each board shall adopt mortality rates,service and such other tables as the board considers necessary for theimplementation of this article. Each board shall adopt a singlemortality table for both men and women that reasonably reflects eachfund's mortality experience.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.55-1989,SEC.11.
IC 5-10.2-2-11
Employer contribution rates; unfunded accrued liability
Sec. 11. (a) Based on the actuarial investigation and valuation insection 9 of this chapter, each board shall determine:
(1) the normal contribution for the employer, which is theamount necessary to fund the pension portion of the retirementbenefit;
(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 oraccount's total assets, respectively; and
(4) the rates of contribution for the state expressed as aproportion of compensation of members, which would benecessary to:
(A) amortize the unfunded accrued liability of the state forthirty (30) years or for a shorter time period requested by thebudget agency or the governor; and
(B) prevent the state's unfunded accrued liability from
increasing.
(b) Based on the information in subsection (a), each board maydetermine, in its sole discretion, contributions and contribution ratesfor individual employers or for a group of employers.
(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 stateteachers' retirement fund, may not include an amount for aretired member of the Indiana state teachers' retirement fund forwhom the employer may not make contributions during themember's period of reemployment as provided underIC 5-10.2-4-8(d).
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.55-1989,SEC.12; P.L.54-1993, SEC.10; P.L.246-2005, SEC.49; P.L.72-2007,SEC.1; P.L.1-2009, SEC.16; P.L.182-2009(ss), SEC.70.
IC 5-10.2-2-11.5
Employer contribution rates for Vincennes University
Sec. 11.5. (a) As used in this section, "Vincennes University"refers to the state educational institution established underIC 21-25-2.
(b) Notwithstanding section 11 of this chapter or any other law,Vincennes University is not required to make employer contributionsto the Indiana state teachers' retirement fund at any time for theemployment during the period July 1, 2001, through June 30, 2009,of Vincennes University's employees who are members of theIndiana state teachers' retirement fund and are covered by the Indianastate teachers' retirement fund pre-1996 account.
(c) This subsection applies to employer contributions made byVincennes University to the Indiana state teachers' retirement fundon account of the employment after June 30, 2009, of VincennesUniversity's employees who are members of the Indiana stateteachers' retirement fund and are covered by the Indiana stateteachers' retirement fund pre-1996 account. Notwithstanding section11 of this chapter or any other law, Vincennes University is requiredto pay only the following employer contributions to the Indiana stateteachers' retirement fund for those employees for the specified years:
(1) For the year beginning July 1, 2009, fifteen percent (15%)of the employer contribution otherwise determined forVincennes University.
(2) For the year beginning July 1, 2010, twenty percent (20%)of the employer contribution otherwise determined forVincennes University.
(3) For the year beginning July 1, 2011, twenty-five percent(25%) of the employer contribution otherwise determined forVincennes University.
(4) For the year beginning July 1, 2012, thirty-five percent(35%) of the employer contribution otherwise determined forVincennes University.
(5) For the year beginning July 1, 2013, fifty percent (50%) of
the employer contribution otherwise determined for VincennesUniversity.
(6) For the year beginning July 1, 2014, seventy-five percent(75%) of the employer contribution otherwise determined forVincennes University.
(7) For each year beginning after June 30, 2015, one hundredpercent (100%) of the employer contribution otherwisedetermined for Vincennes University.
Payments made according to this subsection shall be consideredpayment in full of employer contributions.
As added by P.L.182-2009(ss), SEC.71.
IC 5-10.2-2-12
State appropriation
Sec. 12. (a) The general assembly shall appropriate biennially foreach fund covered by this article that satisfies the conditions ofsection 1.5 of this chapter the sum of the following:
(1) the state's normal contribution for its employees to thepublic employees' retirement fund, the pre-1996 account, andthe 1996 account, as determined in section 11 of this chapter;
(2) at least the anticipated increase in the state's unfundedaccrued liability in each fund, other than the pre-1996 account,as estimated by each board under the procedures specified insection 11 of this chapter; and
(3) the state's obligation as estimated by each board fordisability benefits and benefits payable under retirement fundlaws in effect before April 1, 1955.
The request for this sum for each fund shall be submitted to thebudget agency as one (1) item for each fund. Each board shall submitto the agency its actuarial investigation and valuation and any otheractuarial information to support the request.
(b) The biennial appropriation specified in subsection (a) of thissection shall be paid annually to each fund covered by this articlethat satisfies the conditions of section 1.5 of this chapter in equalinstallments in July of each year of the biennium.
(c) The biennial appropriation under this section shall bedeposited in the trust of each fund and used only as provided insection 1.5 of this chapter.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.54-1993,SEC.11; P.L.119-2000, SEC.3.
IC 5-10.2-2-12.5
Submission of contributions, records, and reports electronically
Sec. 12.5. (a) This section applies to reports, records, andcontributions submitted after December 31, 2009, by an employer.
(b) As used in this section, "electronic funds transfer" has themeaning set forth in IC 4-8.1-2-7(f).
(c) Except as provided in subsection (e), an employer shall submitthrough the use of electronic funds transfer:
(1) the employer contributions determined under sections 11
and 11.5 of this chapter; and
(2) contributions paid by or on behalf of a member underIC 5-10.3-7-9 or IC 5-10.4-4-11.
(d) Except as provided in subsection (e), an employer shall submitin a uniform format through a secure connection over the Internet orthrough other electronic means specified by the board the reports andrecords described in:
(1) IC 5-10.3-7-12.5, for the public employees' retirement fund;or
(2) IC 5-10.4-7-6, for the Indiana state teachers' retirement fund.
(e) An employer that is unable to comply with either subsection(c) or (d), or both, may request that the board grant a waiver of therequirement of subsection (c) or (d), or both. The employer must:
(1) state the reason for requesting the waiver;
(2) provide a date, not to exceed two (2) years from the date theemployer is first subject to either the electronic funds transferrequirement or the electronic reporting requirement of thissection, by which the employer agrees to comply with therequirement of subsection (c) or (d), or both; and
(3) sign and verify the waiver form.
(f) The board may:
(1) grant the employer's request for a waiver; and
(2) specify the date by which the employer is required tocomply with the electronic funds transfer requirement or theelectronic reporting requirement, or both.
(g) The board shall establish a waiver form consistent with thissection.
(h) The board may establish or amend its rules or policies asnecessary to administer this section.
As added by P.L.165-2009, SEC.4. Amended by P.L.182-2009(ss),SEC.72.
IC 5-10.2-2-13
Custodial agreements for securities; servicing of mortgages;securities lending program
Sec. 13. Custodial Agreements for Securities; Servicing ofMortgages; Securities Lending Program. (a) Each board may enterinto a custodial agreement with a trust company or state or nationalbank to provide for the custody and servicing of the securities andother investments under the control of the board.
(b) The agreement may contain such terms as the board considersdesirable including:
(1) the custody, safeguarding or indemnity, servicing, handlingand delivery of the securities and other investments; and
(2) the payment of taxes, fees of the custodian, and otherexpenses and payments required in connection with thesecurities and investments.
(c) Any person, firm, limited liability company, or corporationauthorized to service mortgage loans guaranteed by the federalhousing administration may be authorized by the board to service a
mortgage loan held by the fund.
(d) Each board may authorize its custodian to enter into asecurities lending program agreement, under which the securitiesheld by each fund may be loaned in order to provide revenue to thefund. Such an agreement must require that collateral be pledged inexcess of the total market value of the loaned securities.
As added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1980,P.L.28, SEC.3; P.L.8-1993, SEC.55.
IC 5-10.2-2-14
Transfer of benefits to financial institutions; rollover
Sec. 14. (a) Upon written authorization of a retired member or aretired member's survivor or beneficiary, each fund may satisfy aclaim for benefits by directly depositing the amount of the benefitspayable to the retired member's or the survivor's or beneficiary'saccount in any state or federal chartered financial institution (asdefined in IC 28-1-1-3(1)).
(b) All forms and accounting procedures for implementingsubsection (a) must be approved by the state board of accounts, andany contract or agreement between a fund and a state or federalchartered financial institution (as defined in IC 28-1-1-3(1)) must beapproved by the attorney general and the governor.
(c) Notwithstanding any other provision of the retirement fundlaw, to the extent required by Internal Revenue Code Section401(a)(31), as added by the Unemployment CompensationAmendments of 1992 (P.L.102-318), and any amendments andregulations related to Section 401(a)(31), each retirement fund shallallow participants and qualified beneficiaries to elect a directrollover of eligible distributions to another eligible retirement plan.
As added by Acts 1979, P.L.35, SEC.1. Amended by P.L.10-1993,SEC.3; P.L.42-1993, SEC.2; P.L.1-1994, SEC.18.
IC 5-10.2-2-15
Repealed
(Repealed by P.L.1-2002, SEC.172.)
IC 5-10.2-2-16
Meetings of board members; communication alternatives
Sec. 16. (a) This section applies to any meeting of the board.
(b) A member of the board may participate in a meeting of theboard using any means of communication that permits:
(1) all other board members participating in the meeting; and
(2) all members of the public physically present at the placewhere the meeting is conducted;
to simultaneously communicate with each other during the meeting.
(c) A member of the board who participates in a meeting undersubsection (b) is considered to be present at the meeting.
(d) The memorandum of the meeting prepared underIC 5-14-1.5-4 must also state the name of each member who:
(1) was physically present at the place where the meeting was
conducted;
(2) participated in the meeting using a means of communicationdescribed in subsection (b); and
(3) was absent.
As added by P.L.246-2001, SEC.2.
IC 5-10.2-2-17
Confidentiality of fund records
Sec. 17. Fund records of individual members and membershipinformation are confidential, except for the name and years of serviceof a fund member. However, this section does not prohibit a boardfrom providing fund records to an association described inIC 5-10.3-8-10 or IC 5-10.4-5-14.
As added by P.L.246-2001, SEC.3. Amended by P.L.2-2006, SEC.22.
IC 5-10.2-2-18
Investment in high growth companies; goal percentages
Sec. 18. (a) As used in this section, "high growth company" meansa sole proprietorship, firm, corporation, partnership, limited liabilitycompany, limited liability partnership, joint venture, trust, syndicate,or other business unit or association that:
(1) is primarily focused on commercialization of research anddevelopment, technology transfers, or the application of newtechnology or is determined by the Indiana economicdevelopment corporation to have significant potential to:
(A) bring substantial capital into Indiana;
(B) create jobs;
(C) diversify the business base of Indiana; or
(D) significantly promote the purposes of this chapter in anyother way;
(2) has had an average annual net worth of less than twentymillion dollars ($20,000,000) in each of the last two (2)calendar years; and
(3) is not engaged in a business involving:
(A) real estate;
(B) real estate development;
(C) insurance;
(D) professional services provided by an accountant, alawyer, or a physician;
(E) retail sales, except when the primary purpose of thebusiness is the development or support of electroniccommerce using the Internet; or
(F) gas and oil exploration.
A company that meets the definition of a high growth company underthis subsection shall be considered to meet the definition even ifaffiliated with one (1) or more other companies that do not meet thedefinition and regardless of whether any of the affiliated companiesis engaged in a business involving the matters described insubdivision (3).
(b) As used in this section, "Indiana high growth company" means
a high growth company as defined in subsection (a) that:
(1) has its headquarters in Indiana; and
(2) has:
(A) at least fifty percent (50%) of its employees residing inIndiana; or
(B) at least seventy-five percent (75%) of its assets locatedin Indiana.
(c) If the board decides to allocate part of the fund assets to fundsinvesting in high growth companies, the board is strongly encouragedto establish the following:
(1) A goal for investment in funds investing in Indiana highgrowth companies of at least twenty-five percent (25%) of theamount allocated to funds investing in high growth companies.
(2) A preference for investments described in subdivision (1)that are started in or assisted by Indiana universities andcolleges.
(d) The board has five (5) years after the date the goals insubsection (c) are adopted to achieve the goal percentages.
(e) The board is not required to achieve the goal percentagesunder subsection (c) if the board, exercising financial and fiduciaryprudence, determines that sufficient appropriate investments inprivately held equity or debt assets are not available in Indiana.
(f) This section expires July 1, 2013.
As added by P.L.224-2003, SEC.186. Amended by P.L.4-2005,SEC.24.
IC 5-10.2-2-19
Common director
Sec. 19. (a) The board of trustees of the public employees'retirement fund and the board of trustees of the Indiana stateteachers' retirement fund shall appoint a common director for thefunds.
(b) The board of trustees of the public employees' retirement fundand the board of trustees of the Indiana state teachers' retirementfund shall fix the compensation of the director. Each fund shall payfifty percent (50%) of the director's compensation.
As added by P.L.107-2010, SEC.1.