CHAPTER 3. CREDITABLE SERVICE; CONTRIBUTIONS; WITHDRAWALS; DEATH SETTLEMENTS
IC 5-10.2-3
Chapter 3. Creditable Service; Contributions; Withdrawals; DeathSettlements
IC 5-10.2-3-1
Creditable service
Sec. 1. (a) Except as provided in IC 5-10.2-4-8(d), each member'screditable service, for the purpose of computing benefits under thisarticle, consists of all service in a position covered by a retirementfund plus all other service for which the retirement fund law givescredit.
(b) No member may be required to pay any contributions forservice before the member is covered by this article as a conditionprecedent to receiving benefits under this article. However, themember must furnish proof of the service to the board of the fundunder which the member claims service.
(c) A member who has past service as an employee of the state ora participating political subdivision in a position which was notcovered by the retirement fund is entitled to credit for this service ifthe position becomes covered before January 1, 1985, by the Indianastate teachers' retirement fund, the public employees' retirement fund,or the retirement fund for the state board of accounts and if themember submits proof of the service to the secretary of the fund inwhich the member claims service.
(d) A member who has past service in a position that was notcovered by the retirement fund is entitled to credit for this service ifthe position becomes covered after December 31, 1984, by a fundwhile the member holds that position or another position with thesame employer and if the member submits proof of the service to thedirector of the fund in which the member claims 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 informationrequired 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 creditfor the time the member is receiving disability benefits under adisability plan established under IC 5-10-8-7.
(g) If a participant in the legislators' defined benefit plan does notbecome entitled to a benefit from that plan, the PERF board or theTRF board shall include the participant's service in the generalassembly in the determination of eligibility for, and computation of,benefits under PERF or TRF at the time the participant would beeligible to receive benefits under PERF or TRF. After benefitscommence under PERF or TRF with the general assembly serviceincluded, the participant's general assembly service may not be usedfor the computation of benefits under IC 2-3.5-4.
(h) A member may receive service credit for all or a part of themember's creditable service in another governmental retirement planunder 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 inanother retirement plan maintained by a state, a political subdivision,or an instrumentality of the state for service that PERF or TRF wouldotherwise give credit.
(i) A member may use all or a part of the member's creditableservice under PERF or TRF in another governmental retirement planunder the terms of the other plan. Creditable service used under theother governmental retirement plan may not be used in PERF orTRF.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.28-1984,SEC.1; P.L.5-1990, SEC.5; P.L.43-1991, SEC.1; P.L.22-1998,SEC.3; P.L.2-2006, SEC.23; P.L.72-2007, SEC.2; P.L.1-2009,SEC.17.
IC 5-10.2-3-1.2
Additional service credit purchase
Sec. 1.2. (a) A member who has earned at least ten (10) years ofservice in a position covered by PERF, TRF, or a combination of thetwo (2) funds may purchase one (1) year of service credit for eachfive (5) years of service that the member has completed in a positioncovered by PERF or TRF.
(b) Before a member retires, a member who desires to purchaseadditional service credit under subsection (a) must contribute to thefund as follows:
(1) Contributions that are equal to the product of the following:
(A) The member's salary at the time the member actuallymakes a contribution for the service credit.
(B) A rate, determined by the actuary for the fund, that isbased on the age of the member at the time the memberactually makes a contribution for the service credit andcomputed to result in a contribution amount thatapproximates the actuarial present value of the benefitattributable to the service credit purchased.
(C) The number of years of service credit the memberintends to purchase.
(2) Contributions for any accrued interest, at a rate determinedby the actuary for the fund, for the period from the member'sinitial membership in the fund to the date payment is made bythe member.
(c) The following apply to the purchase of service credit underthis section:
(1) The board may allow a member to make periodic paymentsof the contributions required for the purchase of service credit.The board shall determine the length of the period during whichthe payments must be made.
(2) The board may deny an application for the purchase ofservice credit if the purchase would exceed the limitationsunder Section 415 of the Internal Revenue Code.
(3) A member may not claim the service credit for the purposeof computing benefits unless the member has made all
payments required for the purchase of the service credit.
(4) To the extent permitted by the Internal Revenue Code andapplicable regulations, a member may purchase service creditunder this section by a rollover distribution to the fund from anyof the following:
(A) A qualified plan described in Section 401(a) or Section403(a) of the Internal Revenue Code.
(B) An annuity contract or account described in Section403(b) of the Internal Revenue Code.
(C) An eligible plan that is maintained by a state, a politicalsubdivision of a state, or an agency or instrumentality of astate or political subdivision of a state under Section 457(b)of the Internal Revenue Code.
(D) An individual retirement account or annuity described inSection 408(a) or Section 408(b) of the Internal RevenueCode.
(d) A member who terminates employment before satisfying theeligibility requirements necessary to receive a monthly benefit maywithdraw the purchase amount, plus accumulated interest, aftersubmitting a properly completed application for a refund to the fund.However, the member must also apply for a refund of the member'sentire annuity savings account under section 6 or 6.5 of this chapterto be eligible for a refund of the member's rollover amount.
(e) For a member who is a state employee, the employer may payall or a part of the member contributions required for the purchase ofservice credit under this section. In that event, the actuary shalldetermine the amortization, and subsections (c)(1), (c)(3), (c)(4), and(d) do not apply.
(f) For a member who is an employee of a participating politicalsubdivision, the employer may adopt an ordinance to pay all or a partof the member contributions required for the purchase of servicecredit under this section. In that event, the actuary shall determinethe amortization, and subsections (c)(1), (c)(3), (c)(4), and (d) do notapply.
As added by P.L.61-2002, SEC.3. Amended by P.L.115-2008, SEC.6.
IC 5-10.2-3-2
Members' contributions; employers picking up
Sec. 2. (a) Subject to IC 5-10.2-2-1.5, as used in this section,"compensation" means:
(1) the basic salary earned by and paid to the member; plus
(2) the amount that would have been a part of the basic salaryearned and paid except for the member's salary reductionagreement established under Section 125, 403(b), or 457 of theInternal 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' retirementfund may not make contributions during a period ofreemployment as provided in IC 5-10.2-4-8(d);each member shall, as a condition of employment, contribute to thefund three percent (3%) of the member's compensation.
(c) Except as provided in IC 5-10.2-4-8(d), a member of a fundmay make contributions to the member's annuity savings account inaddition to the contributions required under subsection (b). The totalamount of contributions that may be made to a member's annuitysavings account with respect to a payroll period under this subsectionmay not exceed ten percent (10%) of the member's compensation forthat payroll period. The contributions made under this subsectionmay be picked-up and paid by an employer as provided in subsection(d).
(d) In compliance with rules adopted by each board, an employer,under Section 414(h)(2) of the Internal Revenue Code, may pick-upand pay the contributions under subsection (c), subject to approvalof the board and to the board's receipt of a favorable private letterruling from the Internal Revenue Service. The employer shall reducethe member's compensation by an amount equal to the amount of themember's contributions under subsection (c) that are picked-up bythe employer. Each board shall by rule establish the proceduralrequirements for employers to carry out the pick-up in compliancewith Section 414(h)(2) of the Internal Revenue Code.
(e) A member's contributions and interest credits belong to themember and do not belong to the state or political subdivision.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985,SEC.8; P.L.55-1989, SEC.13; P.L.53-2000, SEC.1; P.L.246-2001,SEC.4; P.L.72-2007, SEC.3; P.L.1-2009, SEC.18.
IC 5-10.2-3-3
Deduction of contributions
Sec. 3. (a) This section does not apply to a member of the Indianastate teachers' retirement fund who is reemployed more than thirty(30) days after the member's retirement in a position covered by theIndiana state teachers' retirement fund.
(b) Members' contributions, other than members' contributionspaid on behalf of a member, shall be deducted from theircompensation even if the net compensation to the member is lessthan the statutory minimum.
(c) The payment of a member's compensation minus the deductionconstitutes a complete discharge of all claims for services renderedby the member during the period covered by the payment, except theclaim for benefits under this article.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.41-1983,SEC.5; P.L.35-1985, SEC.9; P.L.72-2007, SEC.4; P.L.76-2008,SEC.1.
IC 5-10.2-3-4
Repealed
(Repealed by P.L.46-1988, SEC.14.)
IC 5-10.2-3-5
Suspension of membership
Sec. 5. (a) A member who is not eligible for retirement ordisability retirement may suspend the member's membership if themember terminates employment.
(b) After five (5) continuous years in which the member performsno service, the member's membership shall be automaticallysuspended by the board unless the member has vested status.
(c) The board may suspend a member's membership in the fund if:
(1) the member has not performed any service in a coveredposition during the past two (2) years;
(2) the member has not attained vested status in the fund; and
(3) the value of the member's annuity savings account is notmore than one thousand dollars ($1,000).
(d) On resuming service the member may claim as creditableservice the period of employment before the suspension ofmembership, but only to the extent that the same period ofemployment is not being used by another governmental plan forpurposes of the member's benefit in the other governmental plan.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.22-1998,SEC.4; P.L.195-1999, SEC.11; P.L.165-2009, SEC.5.
IC 5-10.2-3-6
Withdrawal of contributions
Sec. 6. (a) After a member suspends his membership, he isentitled to withdraw in a lump sum the amount of his contributionsplus interest credited to him.
(b) Except as provided in subsection (c), if the member does notclaim his moneys within five (5) years after the suspension, themoneys shall be credited to the retirement fund. Any reasonable costsof locating the member or the member's beneficiary may be chargedagainst the member's or the beneficiary's money. The fund shallretain the moneys until the member claims them, with no furtherinterest credits to the member after the moneys are credited to thefund.
(c) If a member suspends membership in the fund because themember is no longer in a covered position but does not separate fromemployment with the member's employer, money shall be credited tothe retirement fund only if the member does not claim the member'smoney within forty-five (45) years after the suspension.
(d) If a member is suspended under section (5)(c) of this chapter,the board shall pay the member's annuity savings account in a lumpsum.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.25-1994,SEC.3; P.L.2-1995, SEC.15; P.L.195-1999, SEC.12.
IC 5-10.2-3-6.2
Withdrawal of contributions to purchase creditable service inanother governmental retirement plan
Sec. 6.2. (a) This section applies to a member of the Indiana state
teachers' retirement fund.
(b) A member who:
(1) has attained vested status in the fund;
(2) has terminated employment;
(3) has not begun receiving benefits; and
(4) is transferring creditable service earned under TRF toanother governmental retirement plan under section 1(i) of thischapter;
may suspend the member's membership and withdraw the member'sannuity savings account to purchase creditable service in the othergovernmental retirement plan.
As added by P.L.61-2002, SEC.4. Amended by P.L.115-2008, SEC.7.
IC 5-10.2-3-6.3
Suspension of membership; transfer of amount in annuity savingsaccount to purchase service credit in sheriff's pension trust
Sec. 6.3. (a) Notwithstanding any other provision in this article,IC 5-10.3, or IC 5-10.4, a member who:
(1) has not attained vested status in the fund;
(2) is not an active participant in the fund; and
(3) is an active participant in a retirement plan established underIC 36-8-10-12;
may suspend membership in the fund and transfer the entire amountin the member's annuity savings account in accordance with themember's purchase of service credit under IC 36-8-10-12.5.
(b) A member who makes a transfer under IC 36-8-10-12.5 fromthe member's annuity savings account shall provide notice of thetransfer on a form provided by the board.
(c) A transfer under IC 36-8-10-12.5 is irrevocable.
(d) A member who makes a transfer under this section waives allcredit for service in the fund.
As added by P.L.98-2009, SEC.1.
IC 5-10.2-3-6.5
Withdrawal of annuity savings account before retirement
Sec. 6.5. (a) A member who meets all of the followingrequirements may elect to withdraw the entire amount in themember's annuity savings account before the member is eligible todo so at retirement under IC 5-10.2-4-2:
(1) The member has attained vested status in the fund.
(2) The member has terminated employment with the applicablefund and is not currently employed in a covered position.
(3) The member has not performed any service in a positioncovered by the fund for at least thirty (30) days after the datethe member terminates employment.
(4) The member makes the election described in this subsection:
(A) after December 31, 2008, if the member is a member ofthe public employees' retirement fund; or
(B) after June 30, 2009, if the member is a member of theIndiana state teachers' retirement fund. (5) Except as provided in subsection (b), the member is noteligible for a reduced or unreduced retirement on the date thefund receives notice of the election described in this subsection.
(b) The requirement described in subsection (a)(5) does not applyto a member of the public employees' retirement fund who:
(1) was eligible for a reduced or unreduced retirement; and
(2) received a distribution under this section;
after December 31, 2008, and before January 1, 2010.
(c) A member who elects to withdraw the entire amount in themember's annuity savings account under subsection (a) shall providenotice of the election on a form provided by the board.
(d) The election to withdraw the entire amount in the member'sannuity savings account is irrevocable.
(e) The board shall pay the amount in the member's annuitysavings account as a lump sum.
(f) Except as provided in subsection (g), a member who makes awithdrawal under this section is entitled to receive, when the memberbecomes eligible to receive a retirement benefit under IC 5-10.2-4,a retirement benefit equal to the pension provided by employercontributions computed under IC 5-10.2-4.
(g) A member who:
(1) transfers creditable service earned under the fund to anothergovernmental retirement plan under section 1(i) of this chapter;and
(2) withdraws the member's annuity savings account under thissection to purchase the service;
may not use the transferred service in the computation of a retirementbenefit payable under subsection (f).
As added by P.L.115-2008, SEC.8. Amended by P.L.115-2009,SEC.1; P.L.99-2010, SEC.2.
IC 5-10.2-3-7
Repealed
(Repealed by P.L.55-1989, SEC.67.)
IC 5-10.2-3-7.1
Repealed
(Repealed by P.L.4-1990, SEC.22.)
IC 5-10.2-3-7.2
Repealed
(Repealed by P.L.55-1989, SEC.67.)
IC 5-10.2-3-7.5 Version a
Survivor benefits; forfeiture
Note: This version of section effective until 7-1-2010. See alsofollowing version of this section, effective 7-1-2010.
Sec. 7.5. (a) This subsection applies to members who die afterMarch 31, 1990, and before January 1, 2007. A surviving dependentor surviving spouse of a member who dies in service is entitled to a
survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if themember died in service as a member of the generalassembly;
(B) at least fifteen (15) years of creditable service, if themember died in service in any other position covered by theretirement fund; or
(C) at least ten (10) years but not more than fourteen (14)years of creditable service if the member:
(i) was at least sixty-five (65) years of age; and
(ii) died in service in a position covered by the teachers'retirement fund; and
(2) the surviving dependent or surviving spouse qualifies for asurvivor benefit under subsection (c) or (d).
(b) This subsection applies to members who die after December31, 2006. A surviving dependent or surviving spouse of a memberwho dies is entitled to a survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if themember died in service as a member of the generalassembly;
(B) at least ten (10) years but not more than fourteen (14)years of creditable service if the member was at leastsixty-five (65) years of age and died in service in a positioncovered by the fund (other than a position described inclause (A)); or
(C) at least fifteen (15) years of creditable service, if themember died in service in a position covered by the fund(other than a position described in clause (A)); and
(2) the surviving dependent or surviving spouse qualifies for asurvivor benefit under subsection (c) or (d).
(c) If a member described in subsection (a) or (b) dies with asurviving spouse who was married to the member for at least two (2)years, the surviving spouse is entitled to a survivor benefit equal tothe monthly pension benefit that would have been payable to thespouse under the joint and survivor option of IC 5-10.2-4-7 upon themember's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. However, benefits payable under this subsectionare subject to subsections (f) and (h).
(d) If a member described in subsection (a) or (b) dies without asurviving spouse who was married to the member for at least two (2)years, but with a surviving dependent, the surviving dependent isentitled to a survivor benefit in a monthly amount equal to theactuarial equivalent of the monthly pension benefit that would havebeen payable to the spouse (assuming the spouse would have had thesame birth date as the member) under the joint and survivor optionof IC 5-10.2-4-7 upon the member's death following retirement at: (1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. If there are two (2) or more surviving dependents,the actuarial equivalent of the benefit described in this subsectionshall be calculated and, considering the dependents' attained ages, anequal dollar amount shall be determined as the monthly pensionbenefit to be paid to each dependent. Monthly pension benefits underthis subsection are payable until the date the dependent becomeseighteen (18) years of age or dies, whichever is earlier. However, ifa dependent has a permanent and total disability (using disabilityguidelines established by the Social Security Administration) at thedate the dependent reaches eighteen (18) years of age, the monthlypension benefit is payable until the date the dependent no longer hasa disability (using disability guidelines established by the SocialSecurity Administration) or dies, whichever is earlier. Benefitspayable under this subsection are subject to subsections (f) and (h).
(e) This subsection applies if a member did not designate abeneficiary or the designated beneficiary does not survive themember. Except as provided in subsections (f) and (i), the survivingspouse or surviving dependent of a member who is entitled to asurvivor benefit under subsection (c) or (d) or section 7.6 of thischapter may elect to receive a lump sum payment of the total amountcredited to the member in the member's annuity savings account oran amount equal to the member's federal income tax basis in themember's annuity savings account as of December 31, 1986. Asurviving spouse or surviving dependent who makes such an electionis not entitled to an annuity as part of the survivor benefit undersubsection (c) or (d) or section 7.6 of this chapter to the extent of thelump sum payment.
(f) If a member is survived by a designated beneficiary, thefollowing provisions apply:
(1) If the member is survived by one (1) designated beneficiary,the designated beneficiary is entitled to receive in a lump sumor over a period of up to five (5) years, as elected by thedesignated beneficiary, the amount credited to the member'sannuity savings account, less any disability benefits paid to themember.
(2) If the member is survived by two (2) or more designatedbeneficiaries, the designated beneficiaries are entitled to receivein a lump sum or over a period of up to five (5) years, as electedby the designated beneficiary, equal shares of the amountcredited to the member's annuity savings account, less anydisability benefits paid to the member.
(3) If the member is also survived by a spouse or dependentwho is entitled to a survivor benefit under subsection (c) or (d)or section 7.6 of this chapter, the surviving spouse or dependentis not entitled to an annuity or a lump sum payment as part ofthe survivor benefit, unless the surviving spouse or dependentis also a designated beneficiary.
(g) If a member dies: (1) without a surviving spouse or surviving dependent whoqualifies for survivor benefits under subsection (c) or (d) orsection 7.6 of this chapter; and
(2) without a surviving designated beneficiary who is entitledto receive the member's annuity savings account undersubsection (f);
the amount credited to the member's annuity savings account, lessany disability benefits paid to the member, shall be paid to themember's estate.
(h) Survivor benefits payable under this section or section 7.6 ofthis chapter shall be reduced by any disability benefits paid to themember.
(i) Additional annuity contributions, if any, shall not be includedin determining survivor benefits under subsection (c) or (d) orsection 7.6 of this chapter, but are payable in a lump sum payment to:
(1) the member's surviving designated beneficiary; or
(2) the member's estate, if there is no surviving designatedbeneficiary.
(j) Survivor benefits provided under this section or section 7.6 ofthis chapter are subject to IC 5-10.2-2-1.5.
(k) A benefit specified in this section shall be forfeited andcredited to the member's retirement fund if no person entitled to thebenefit claims it within three (3) years after the member's death.However, the board may honor a claim that is made more than three(3) years after the member's death if the board finds, in the board'sdiscretion, that:
(1) the delay in making the claim was reasonable or otherextenuating circumstances justify the award of the benefit to theclaimant; and
(2) paying the claim would not cause a violation of theapplicable Internal Revenue Service rules.
As added by P.L.55-1989, SEC.14. Amended by P.L.4-1990, SEC.5;P.L.43-1991, SEC.2; P.L.35-1996, SEC.1; P.L.22-1998, SEC.5;P.L.118-2000, SEC.2; P.L.190-2003, SEC.1; P.L.99-2007, SEC.15;P.L.113-2009, SEC.1; P.L.115-2009, SEC.2; P.L.1-2010, SEC.18.
IC 5-10.2-3-7.5 Version b
Survivor benefits; forfeiture
Note: This version of section effective 7-1-2010. See alsopreceding version of this section, effective until 7-1-2010.
Sec. 7.5. (a) This subsection applies to members who die afterMarch 31, 1990, and before January 1, 2007. A surviving dependentor surviving spouse of a member who dies in service is entitled to asurvivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if themember died in service as a member of the generalassembly;
(B) at least fifteen (15) years of creditable service, if themember died in service in any other position covered by the
retirement fund; or
(C) at least ten (10) years but not more than fourteen (14)years of creditable service if the member:
(i) was at least sixty-five (65) years of age; and
(ii) died in service in a position covered by the teachers'retirement fund; and
(2) the surviving dependent or surviving spouse qualifies for asurvivor benefit under subsection (c) or (d).
(b) This subsection applies to members who die after December31, 2006. A surviving dependent or surviving spouse of a memberwho dies is entitled to a survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if themember died in service as a member of the generalassembly;
(B) at least ten (10) years but not more than fourteen (14)years of creditable service if the member was at leastsixty-five (65) years of age and died in service in a positioncovered by the fund (other than a position described inclause (A)); or
(C) at least fifteen (15) years of creditable service, if themember died in service in a position covered by the fund(other than a position described in clause (A)); and
(2) the surviving dependent or surviving spouse qualifies for asurvivor benefit under subsection (c) or (d).
(c) If a member described in subsection (a) or (b) dies with asurviving spouse who was married to the member for at least two (2)years, the surviving spouse is entitled to a survivor benefit equal tothe monthly pension benefit that would have been payable to thespouse under the joint and survivor option of IC 5-10.2-4-7 upon themember's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. However, benefits payable under this subsectionare subject to subsections (f) and (h).
(d) If a member described in subsection (a) or (b) dies without asurviving spouse who was married to the member for at least two (2)years, but with a surviving dependent, the surviving dependent isentitled to a survivor benefit in a monthly amount equal to theactuarial equivalent of the monthly pension benefit that would havebeen payable to the spouse (assuming the spouse would have had thesame birth date as the member) under the joint and survivor optionof IC 5-10.2-4-7 upon the member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. If there are two (2) or more surviving dependents,the actuarial equivalent of the benefit described in this subsectionshall be calculated and, considering the dependents' attained ages, anequal dollar amount shall be determined as the monthly pensionbenefit to be paid to each dependent. Monthly pension benefits under
this subsection are payable until the date the dependent becomeseighteen (18) years of age or dies, whichever is earlier. However, ifa dependent has a permanent and total disability (using disabilityguidelines established by the Social Security Administration) at thedate the dependent reaches eighteen (18) years of age, the monthlypension benefit is payable until the date the dependent no longer hasa disability (using disability guidelines established by the SocialSecurity Administration) or dies, whichever is earlier. Benefitspayable under this subsection are subject to subsections (f) and (h).
(e) This subsection applies if a member did not designate abeneficiary or the designated beneficiary does not survive themember. Except as provided in subsections (f) and (i), the survivingspouse or surviving dependent of a member who is entitled to asurvivor benefit under subsection (c) or (d) or section 7.6 of thischapter may elect to receive a lump sum payment of the total amountcredited to the member in the member's annuity savings account oran amount equal to the member's federal income tax basis in themember's annuity savings account as of December 31, 1986. Asurviving spouse or surviving dependent who makes such an electionis not entitled to an annuity as part of the survivor benefit undersubsection (c) or (d) or section 7.6 of this chapter to the extent of thelump sum payment.
(f) If a member is survived by a designated beneficiary, thefollowing provisions apply:
(1) If the member is survived by one (1) designated beneficiary,the designated beneficiary is entitled to receive in a lump sumor over a period of up to five (5) years, as elected by thedesignated beneficiary, the amount credited to the member'sannuity savings account, less any disability benefits paid to themember.
(2) If the member is survived by two (2) or more designatedbeneficiaries, the designated beneficiaries are entitled to receivein a lump sum or over a period of up to five (5) years, as electedby the designated beneficiary, equal shares of the amountcredited to the member's annuity savings account unless themember has allocated the shares among the designatedbeneficiaries in a manner authorized under IC 5-10.3-8-15 orIC 5-10.4-4-10, less any disability benefits paid to the member.
(3) If the member is also survived by a spouse or dependentwho is entitled to a survivor benefit under subsection (c) or (d)or section 7.6 of this chapter, the surviving spouse or dependentis not entitled to an annuity or a lump sum payment as part ofthe survivor benefit, unless the surviving spouse or dependentis also a designated beneficiary.
(g) If a member dies:
(1) without a surviving spouse or surviving dependent whoqualifies for survivor benefits under subsection (c) or (d) orsection 7.6 of this chapter; and
(2) without a surviving designated beneficiary who is entitledto receive the member's annuity savings account under
subsection (f);
the amount credited to the member's annuity savings account, lessany disability benefits paid to the member, shall be paid to themember's estate.
(h) Survivor benefits payable under this section or section 7.6 ofthis chapter shall be reduced by any disability benefits paid to themember.
(i) Additional annuity contributions, if any, shall not be includedin determining survivor benefits under subsection (c) or (d) orsection 7.6 of this chapter, but are payable in a lump sum payment to:
(1) the member's surviving designated beneficiary; or
(2) the member's estate, if there is no surviving designatedbeneficiary.
(j) Survivor benefits provided under this section or section 7.6 ofthis chapter are subject to IC 5-10.2-2-1.5.
(k) A benefit specified in this section shall be forfeited andcredited to the member's retirement fund if no person entitled to thebenefit claims it within three (3) years after the member's death.However, the board may honor a claim that is made more than three(3) years after the member's death if the board finds, in the board'sdiscretion, that:
(1) the delay in making the claim was reasonable or otherextenuating circumstances justify the award of the benefit to theclaimant; and
(2) paying the claim would not cause a violation of theapplicable Internal Revenue Service rules.
As added by P.L.55-1989, SEC.14. Amended by P.L.4-1990, SEC.5;P.L.43-1991, SEC.2; P.L.35-1996, SEC.1; P.L.22-1998, SEC.5;P.L.118-2000, SEC.2; P.L.190-2003, SEC.1; P.L.99-2007, SEC.15;P.L.113-2009, SEC.1; P.L.115-2009, SEC.2; P.L.1-2010, SEC.18;P.L.99-2010, SEC.3.
IC 5-10.2-3-7.6
Survivor benefits of member with 30 years creditable service
Sec. 7.6. (a) This section applies to the surviving spouse and thesurviving dependent of a member who:
(1) dies after June 30, 1996;
(2) has at least thirty (30) years of creditable service; and
(3) dies in service in a position covered by the fund.
(b) If a member described in subsection (a) dies with a survivingspouse who was married to the member for at least two (2) years, theboard may determine that the surviving spouse is entitled to asurvivor benefit equal to the monthly benefit that would have beenpayable to the spouse under the joint and survivor option ofIC 5-10.2-4-7 upon the member's death following retirement at:
(1) fifty-five (55) years of age; or
(2) the actual date of death;
whichever is later. However, benefits payable under this section aresubject to section 7.5(f) and 7.5(h) of this chapter.
(c) If a member described in subsection (a) dies without a
surviving spouse who was married to the member for at least two (2)years, but with a surviving dependent, the board may determine thatthe surviving dependent is entitled to a survivor benefit in a monthlyamount equal to the actuarial equivalent of the monthly benefit thatwould have been payable to the spouse (assuming the spouse wouldhave had the same birth date as the member) under the joint andsurvivor option of IC 5-10.2-4-7 upon the member's death followingretirement at:
(1) fifty-five (55) years of age; or
(2) the actual date of death;
whichever is later. If there are two (2) or more surviving dependents,the actuarial equivalent of the benefit described in this subsectionshall be calculated and, considering the dependents' attained ages, anequal dollar amount shall be determined as the monthly benefit to bepaid to each dependent. Monthly benefits under this subsection arepayable until the date the dependent becomes eighteen (18) years ofage or dies, whichever is earlier. However, if a dependent has apermanent and total disability (using disability guidelines establishedby the Social Security Administration) on the date the dependentbecomes eighteen (18) years of age, the monthly benefit is payableuntil the date the dependent no longer has a disability (usingdisability guidelines established by the Social SecurityAdministration) or dies, whichever is earlier. Benefits payable underthis section are subject to section 7.5(f) and 7.5(h) of this chapter.
As added by P.L.35-1996, SEC.2. Amended by P.L.99-2007, SEC.16;P.L.113-2009, SEC.2.
IC 5-10.2-3-8
Survivor benefits; death while not in service
Sec. 8. (a) If a member dies:
(1) after March 31, 1990;
(2) while not in service in a position covered by the retirementfund; and
(3) while eligible to receive retirement or disability benefitsunder IC 5-10.2-4-6, but before applying for those benefits;
the member's surviving spouse or surviving dependent is entitled tosurvivor benefits in the same amount and under the same conditionsas provided in section 7.5 of this chapter.
(b) If a member dies while not in service and while not eligible forretirement or disability retirement, the sum payable upon suspensionof membership shall be paid to the member's surviving designatedbeneficiary or to the member's estate if no beneficiary is designated.
(c) The sums specified in subsections (a) and (b) shall be forfeitedand credited to the member's retirement fund if no beneficiary orother person entitled to the money under subsection (a) or (b) claimsit within three (3) years after the member's death. However, the boardmay honor a claim made more than three (3) years after the member'sdeath if the board finds, in the board's discretion, that:
(1) the member died after August 31, 1992; and
(2) either: (A) the delay in making the claim was reasonable; or
(B) other extenuating circumstances justify the award of thebenefit to the claimant.
(d) Survivor benefits payable under this section shall be reducedby any disability benefits paid to the member under the sameconditions as provided in section 7.5 of this chapter.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985,SEC.11; P.L.55-1989, SEC.15; P.L.4-1990, SEC.6; P.L.56-1993,SEC.1; P.L.22-1993, SEC.2; P.L.119-2006, SEC.1.
IC 5-10.2-3-9
Survivor benefits; death after July 1, 1991, while eligible forretirement benefits
Sec. 9. (a) This section applies if the following conditions are met.A member dies:
(1) after July 1, 1991; and
(2) while receiving or while eligible to receive retirementbenefits under IC 5-10.2-4-1 from the fund.
(b) As used in this section, "minimum amount" means the entireamount credited to the member's annuity savings account at the timeof:
(1) retirement; or
(2) death while entitled to retirement benefits;
minus all benefits paid to the member and the member's survivors.
(c) If the member dies without a survivor entitled to benefits andthe member has not received payments equal to or more than theminimum amount, the difference shall be paid in a lump sum to themember's designated beneficiary or beneficiaries in equal shares. Ifthe member dies without a surviving designated beneficiary, thedifference shall be paid in a lump sum to the member's estate.
(d) If the member dies with a survivor entitled to benefits, nopayment under this section shall be calculated until after all survivorsdie. If, at the time of death of the last survivor, the member and allsurvivors have not received payments equal to or more than theminimum amount, the difference shall be paid in a lump sum to thesurvivor's estate.
As added by P.L.43-1991, SEC.3.
IC 5-10.2-3-10
Rollover distributions
Sec. 10. (a) To the extent permitted by the Internal Revenue Codeand the applicable regulations, the fund may accept, on behalf of anyactive member, a rollover distribution from any of the following:
(1) A qualified plan described in Section 401(a) or Section403(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 maintained by a state, a politicalsubdivision of a state, or an agency or instrumentality of a stateor political subdivision of a state under Section 457(b) of the
Internal Revenue Code.
(4) An individual retirement account or annuity described inSection 408(a) or Section 408(b) of the Internal Revenue Code.
(b) Any amounts rolled over under subsection (a) must beaccounted for in a "rollover account" that is separate from themember's annuity savings account.
(c) A member may direct the investment of the member's rolloveraccount into any alternative investment option that the board maymake available to the member's rollover account under IC 5-10.2-2-3.However, the member may not invest the member's rollover accountin the guaranteed fund.
(d) A member may withdraw the member's rollover account fromthe fund in a lump sum at any time before retirement. At retirement,the member may withdraw the member's rollover account inaccordance with the retirement options that are available for themember's annuity savings account, including the deferral of awithdrawal.
As added by P.L.61-2002, SEC.5.