CHAPTER 7. MEMBERSHIP; CREDITABLE SERVICE; CONTRIBUTIONS; WITHDRAWAL
IC 5-10.3-7
Chapter 7. Membership; Creditable Service; Contributions;Withdrawal
IC 5-10.3-7-1
Members of fund
Sec. 1. (a) This section does not apply to:
(1) members of the general assembly; or
(2) employees covered by section 3 of this chapter.
(b) An employee of the state or of a participating politicalsubdivision who:
(1) became a full-time employee of the state or of aparticipating political subdivision in a covered position; and
(2) had not become a member of the fund;
before April 1, 1988, shall on April 1, 1988, become a member of thefund unless the employee is excluded from membership undersection 2 of this chapter.
(c) Any individual who becomes a full-time employee of the stateor of a participating political subdivision in a covered position afterMarch 31, 1988, becomes a member of the fund on the date theindividual's employment begins unless the individual is excludedfrom membership under section 2 of this chapter.
(d) For the purposes of this section, "employees of the state"includes:
(1) employees of the judicial circuits whose compensation ispaid from state funds;
(2) elected and appointed state officers;
(3) prosecuting attorneys and deputy prosecuting attorneys ofthe judicial circuits, whose compensation is paid in whole or inpart from state funds, including participants in the prosecutingattorneys retirement fund established under IC 33-39-7;
(4) employees in the classified service;
(5) employees of any state department, institution, board,commission, office, agency, court, or division of stategovernment receiving state appropriations and having theauthority to certify payrolls from appropriations or from a trustfund held by the treasurer of state or by any department;
(6) employees of any state agency which is a body politic andcorporate;
(7) employees of the board of trustees of the public employees'retirement fund;
(8) persons who:
(A) are employed by the state;
(B) have been classified as federal employees by theSecretary of Agriculture of the United States; and
(C) are excluded from coverage as federal employees by thefederal Social Security program under 42 U.S.C. 410;
(9) the directors and employees of county offices of family andchildren; and
(10) employees of the center for agricultural science and
heritage (the barn).
As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1978,P.L.24, SEC.4; Acts 1982, P.L.37, SEC.2; P.L.41-1983, SEC.7;P.L.31-1984, SEC.1; P.L.35-1985, SEC.23; P.L.16-1986, SEC.2;P.L.61-1987, SEC.1; P.L.46-1988, SEC.6; P.L.62-1989, SEC.1;P.L.4-1993, SEC.7; P.L.5-1993, SEC.18; P.L.98-2004, SEC.67;P.L.91-2004, SEC.1.
IC 5-10.3-7-2
Exclusions from membership
Sec. 2. The following employees may not be members of the fund:
(1) Officials of a political subdivision elected by vote of thepeople, unless the governing body specifically provides for theparticipation of locally elected officials.
(2) Employees occupying positions normally requiringperformance of service of less than six hundred (600) hoursduring a year who:
(A) were hired before July 1, 1982; or
(B) are employed by a participating school corporation.
(3) Independent contractors or officers or employees paidwholly on a fee basis.
(4) Employees who occupy positions that are covered by otherpension or retirement funds or plans, maintained in whole or inpart by appropriations by the state or a political subdivision,except:
(A) the federal Social Security program; and
(B) the prosecuting attorneys retirement fund established byIC 33-39-7-9.
(5) Managers or employees of a license branch of the bureau ofmotor vehicles commission, except those persons who may beincluded as members under IC 9-16-4.
(6) Employees, except employees of a participating schoolcorporation, hired after June 30, 1982, occupying positionsnormally requiring performance of service of less than onethousand (1,000) hours during a year.
(7) Persons who:
(A) are employed by the state;
(B) have been classified as federal employees by theSecretary of Agriculture of the United States; and
(C) are covered by the federal Social Security program asfederal employees under 42 U.S.C. 410.
(8) Members and employees of the state lottery commission.
As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1978,P.L.24, SEC.5; Acts 1982, P.L.37, SEC.3; P.L.31-1984, SEC.2;P.L.42-1986, SEC.1; P.L.62-1987, SEC.1; P.L.61-1987, SEC.2;P.L.341-1989(ss), SEC.5; P.L.62-1989, SEC.2; P.L.2-1991, SEC.26;P.L.98-2004, SEC.68.
IC 5-10.3-7-2.5
Constables Sec. 2.5. Notwithstanding the provisions of section 2 of thischapter, any constable who:
(1) is not otherwise eligible for membership in the publicemployees' retirement fund; and
(2) was enrolled erroneously in the public employees' retirementfund as a contributing member;
is eligible for membership in the public employees' retirement fundand is entitled to receive the benefits provided by that fund.
As added by Acts 1981, P.L.51, SEC.1.
IC 5-10.3-7-2.7
Police officers and firefighters
Sec. 2.7. (a) This section applies only to an individual who:
(1) began service as a police officer or firefighter and becamea member of a police officers' pension fund or firefighters'pension fund before 1980;
(2) began service in another position (referred to in this sectionas the "PERF position") and was enrolled erroneously as acontributing member of the public employees' retirement fundwith respect to the PERF position before 1980;
(3) made contributions to the public employees' retirement fundwith respect to the PERF position as if the individual had beenlegally enrolled in that fund;
(4) after 1991 was denied service credit in the publicemployees' retirement fund with respect to all or part of theindividual's service in the PERF position because of theindividual's service in the police officer or firefighter positiondescribed in subdivision (1); and
(5) claims service credit in PERF and applies for membershipin PERF before January 1, 2000.
(b) Notwithstanding the provisions of section 2 of this chapter, anindividual described in subsection (a) who:
(1) is not otherwise eligible for membership in the publicemployees' retirement fund; and
(2) was enrolled erroneously in the public employees' retirementfund as a contributing member;
is eligible for membership in the public employees' retirement fundand is entitled to receive the benefits provided by that fund.
As added by P.L.195-1999, SEC.21.
IC 5-10.3-7-3
Optional membership
Sec. 3. (a) Members of the general assembly, including memberswho:
(1) completed their service before July 1, 1987; and
(2) were not members of the fund during their service in thegeneral assembly;
are entitled to become, at their option, members of the fund. Amember of the general assembly who completed his service beforeJuly 1, 1987, in order to become a member of the fund must apply to
the board for membership and must present evidence satisfactory tothe board of his prior service. Such a member of the generalassembly may become a member without any service after June 30,1987.
(b) Notwithstanding the exclusion specified in section 2(4) of thischapter, a member of the general assembly who is a member of theIndiana state teachers' retirement fund and who retires after June 30,1980, may choose at his retirement date to become a member of thepublic employees' retirement fund and to receive his retirementbenefit from the fund.
(c) An employee who:
(1) was hired before July 1, 1982; or
(2) is employed by a participating school corporation;
and who is occupying a position normally requiring performance ofservices of less than one thousand (1,000) hours a year may at hisoption be a member of the fund.
As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1980,P.L.28, SEC.8; Acts 1982, P.L.37, SEC.4; P.L.30-1984, SEC.2;P.L.381-1987(ss), SEC.2; P.L.46-1988, SEC.7.
IC 5-10.3-7-4
Creditable service
Sec. 4. Except as provided in section 7.5 of this chapter,creditable service is determined as specified in IC 5-10.2-3-1.Members also receive credit for service as specified in this chapter.
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.60-1987,SEC.2.
IC 5-10.3-7-4.5
Out-of-state service credit purchase
Sec. 4.5. (a) As used in this section, "out-of-state service" meansservice in another state in a comparable position that would becreditable service if performed in Indiana.
(b) Subject to subsections (c) through (f), a member may purchaseout-of-state service credit if the member meets the followingrequirements:
(1) The member has at least one (1) year of creditable servicein the fund.
(2) Before the member retires, the member makes contributionsto the fund as follows:
(A) Contributions that are equal to the product of thefollowing:
(i) The member's salary at the time the member actuallymakes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, based onthe age of the member at the time the member actuallymakes a contribution for service credit and computed toresult in a contribution amount that approximates theactuarial present value of the benefit attributable to theservice credit purchased. (iii) The number of years of out-of-state service themember intends to purchase.
(B) Contributions for any accrued interest, at a ratedetermined by the actuary for the fund, for the period fromthe member's initial membership in the fund to the datepayment is made by the member.
(3) The member has received verification from the fund that theout-of-state service is, as of that date, valid.
(c) Out-of-state years that qualify a member for retirement in anout-of-state system or in any federal retirement system may not begranted under this section.
(d) At least ten (10) years of service in Indiana is required beforea member may receive a benefit based on out-of-state service credits.
(e) A member who:
(1) terminates employment before satisfying the eligibilityrequirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service fromanother tax supported public employee retirement plan otherthan under the Social Security Act;
may withdraw the purchase amount plus accumulated interest aftersubmitting a properly completed application for a refund to the fund.
(f) 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 the servicecredit. The board shall determine the length of the period duringwhich the 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 purposes ofdetermining eligibility or computing benefits unless the memberhas made all payments required for the purchase of the servicecredit.
As added by P.L.5-1997, SEC.4. Amended by P.L.22-1998, SEC.8.
IC 5-10.3-7-4.6
In-state service credit purchase
Sec. 4.6. (a) Subject to the provisions of this section, a membermay purchase service credit for the member's prior service in aposition covered by the 1925 police pension fund under IC 36-8-6,the 1937 firefighters' pension fund under IC 36-8-7, or the 1953police pension fund under IC 36-8-7.5 if the member meets thefollowing requirements:
(1) The member has at least one (1) year of credited service inthe fund.
(2) The member has not attained vested status in and is not anactive member of the 1925 police pension fund, the 1937firefighters' pension fund, or the 1953 police pension fund.
(3) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of thefollowing:
(i) The member's salary at the time the member actuallymakes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, based onthe age of the member at the time the member actuallymakes a contribution for service credit and computed toresult in a contribution amount that approximates theactuarial present value of the benefit attributable to theservice credit purchased.
(iii) The number of years of service credit the memberintends to purchase.
(B) Contributions for any accrued interest, at a ratedetermined by the actuary for the fund, for the period fromthe member's initial membership in the fund to the datepayment is made by the member.
(4) The member has received verification from the fund that theservice in the 1925 police pension fund, the 1937 firefighters'pension fund, or the 1953 police pension fund is, as of that date,valid.
(b) At least ten (10) years of service in Indiana is required beforea member may receive a benefit based on service credits purchasedunder this section.
(c) A member who:
(1) terminates employment before satisfying the eligibilityrequirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service fromanother tax supported public employee retirement plan otherthan under the Social Security Act;
may withdraw the purchase amount plus accumulated interest aftersubmitting a properly completed application for a refund to the fund.
(d) 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 the servicecredit. The board shall determine the length of the period duringwhich the 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 purposes ofdetermining eligibility or computing benefits unless the memberhas made all payments required for the purchase of the servicecredit.
As added by P.L.195-1999, SEC.22.
IC 5-10.3-7-4.8
State quasi-governmental entity service credit purchase
Sec. 4.8. (a) As used in this section, "state quasi-governmental
entity service" means service in Indiana that would be consideredcreditable service if performed by an employee of a member of thefund by an individual who:
(1) provided the service as an employee of a body corporate andpolitic, nonprofit corporation established by the state, or otherquasi-governmental entity that performed a state governmentalfunction; and
(2) was not a member of the fund under section 1 of this chapterduring the period of employment.
(b) A member may purchase state quasi-governmental entityservice credit subject to the following:
(1) The member must have at least one (1) year of creditedservice in the fund.
(2) The member must have at least ten (10) years of in-statecredited service before the member may claim the servicecredit.
(3) Before the member retires, the member must makecontributions to the fund:
(A) that are equal to the product of:
(i) the member's salary at the time the member actuallymakes a contribution for the service credit;
(ii) a percentage rate, as determined by the actuary of thefund, based on the age of the member at the time themember makes a contribution for service credit andcomputed to result in a contribution amount thatapproximates the actuarial present value of the benefitattributable to the service credit purchased; and
(iii) the number of years of state quasi-governmental entityservice the member intends to purchase; and
(B) for any accrued interest, at a rate determined by theactuary of the fund, for the period from the member's initialmembership in the fund to the date payment is made by themember.
(4) The member must provide verification of the service withthe state quasi-governmental entity in a manner prescribed bythe fund.
(c) State quasi-governmental entity service that qualifies amember for retirement in a private retirement system or a federalretirement system may not be granted under this section.
(d) A member who:
(1) terminates employment before satisfying the eligibilityrequirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service fromanother tax supported public employee retirement plan otherthan under the federal Social Security Act;
may withdraw the personal contributions made under thecontributory plan plus accumulated interest after submitting to thefund a properly completed application for a refund.
(e) 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 the servicecredit. The board shall determine the length of the period duringwhich the 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 purposes ofdetermining eligibility or computing benefits unless the memberhas made all payments required for the purchase of the servicecredit.
As added by P.L.148-2007, SEC.1.
IC 5-10.3-7-5
Military service credit
Sec. 5. (a) A member who:
(1) enters the United States armed services;
(2) leaves his contributions in the fund;
(3) except as provided in subsection (c), resumes service withhis employer within one hundred twenty (120) days after hisunconditional discharge; and
(4) would be entitled to service credit for military service underthe Uniformed Services Employment and Reemployment RightsAct (38 U.S.C. 4301 et seq.) if the member had resumed servicewith the member's employer within ninety (90) days afterdischarge;
is entitled to service credit for the armed service.
(b) A state employee who left employment before January 1,1946, or an employee of a political subdivision who left employmentbefore the participation date, to enter the United States armedservices is entitled to service credit for the armed service if he:
(1) except as provided in subsection (c), resumes service withthe employer within one hundred twenty (120) days after hisunconditional discharge; and
(2) would be entitled to service credit for military service underthe applicable requirements of federal law in effect at the timeof reemployment if the employee had resumed service with theemployee's employer within ninety (90) days after discharge.
(c) The board shall extend the one hundred twenty (120) dayreemployment requirement contained in subsection (a)(3) or (b)(1)if the board determines that an illness, an injury, or a disabilityrelated to the member's military service prevented the member fromresuming employment within one hundred twenty (120) days afterthe member's discharge from military service. However, the boardmay not extend the deadline beyond thirty (30) months after themember's discharge.
(d) If a member retires and the board subsequently determines thatthe member is entitled to additional service credit due to theextension of a deadline under subsection (c), the board shallrecompute the member's benefit. However, the additional service
credit may be used only in the computation of benefits to be paidafter the date of the board's determination, and the member is notentitled to a recomputation of benefits received before the date of theboard's determination.
(e) Notwithstanding any provision of this section, a member isentitled to service credit and benefits in the amount and to the extentrequired by the Uniformed Services Employment and ReemploymentRights Act (38 U.S.C. 4301 et seq.).
(f) Subject to the provisions of this section, an active member maypurchase not more than two (2) years of service credit for themember's service on active duty in the armed services if the membermeets the following conditions:
(1) The member has at least one (1) year of credited service inthe fund.
(2) The member serves on active duty in the armed services ofthe United States for at least six (6) months.
(3) The member receives an honorable discharge from thearmed services.
(4) Before the member retires, the member makes contributionsto the fund as follows:
(A) Contributions that are equal to the product of thefollowing:
(i) The member's salary at the time the member actuallymakes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, that isbased on the age of the member at the time the memberactually makes a contribution for service credit andcomputed to result in a contribution amount thatapproximates the actuarial present value of the benefitattributable to the service credit purchased.
(iii) The number of years of service credit the memberintends to purchase.
(B) Contributions for any accrued interest, at a ratedetermined by the actuary of the fund, for the period fromthe member's initial membership in the fund to the datepayment is made by the member.
However, a member is entitled to purchase service credit under thissubsection only to the extent that service credit is not granted for thattime under another provision of this section. At least ten (10) yearsof service in Indiana is required before a member may receive abenefit based on service credits purchased under this section. Amember who terminates employment before satisfying the eligibilityrequirements necessary to receive a monthly allowance or receivesa monthly allowance for the same service from another tax supportedpublic employee retirement plan other than under the federal SocialSecurity Act may withdraw the purchase amount plus accumulatedinterest after submitting a properly completed application for arefund to the fund.
(g) The following apply to the purchase of service credit undersubsection (f): (1) The board may allow a member to make periodic paymentsof the contributions required for the purchase of the servicecredit. The board shall determine the length of the period duringwhich the 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 purposes ofdetermining eligibility or computing benefits unless the memberhas made all payments required for the purchase of the servicecredit.
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.43-1991,SEC.5; P.L.5-1997, SEC.5; P.L.184-2001, SEC.8.
IC 5-10.3-7-6
Leave service credit
Sec. 6. Leave Service. (a) A member is entitled to service creditfor adoption leave of not more than one (1) year and for leaves ofabsence, granted under rules in force at the time of the leave, totalingsix (6) months or less during any period of four (4) consecutiveyears.
(b) A member may make contributions during the leave ofabsence based on his rate of compensation on the date his leave ofabsence began.
(c) Notwithstanding any law, this section must be administered ina manner consistent with the Family and Medical Leave Act of 1993(29 U.S.C. 2601 et seq.). A member on a leave of absence thatqualifies for the benefits and protections afforded by the Family andMedical Leave Act is entitled to receive credit for vesting andeligibility purposes to the extent required by the Family and MedicalLeave Act, but is not entitled to receive credit for service for benefitpurposes unless the leave is described in subsection (a).
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.5-1997,SEC.6; P.L.195-1999, SEC.23.
IC 5-10.3-7-7
Service credits for public service
Sec. 7. (a) A member with at least one (1) year of service in aposition covered by the fund after January 1, 1946, shall receivecredit for years of service at any time as any of the following:
(1) A member of the general assembly.
(2) An elected state official.
(3) A prosecuting attorney of a judicial circuit.
(4) A judge who is covered by the judges' retirement system butwho is ineligible for its benefits.
(5) A member of the armed services if the member joined thearmed services while the member was a member of the generalassembly, including credit for the unexpired term if theunexpired term of the member of the general assembly waslonger than the armed service.As added by Acts 1977, P.L.53, SEC.3. Amended byP.L.381-1987(ss), SEC.3; P.L.5-1988, SEC.34.
IC 5-10.3-7-7.5
Exclusion of service before prior service credit date contained inresolution
Sec. 7.5. Notwithstanding IC 5-10.2-3-1, for the purpose ofcomputing benefits the creditable service of a member covered by anordinance or resolution adopted by a political subdivision'sgoverning body under IC 5-10.3-6-1(b) excludes all service with thepolitical subdivision before the prior service credit date contained inthe resolution. However, service with the political subdivision beforethe prior service credit date shall be considered for the purpose ofdetermining eligibility for benefits.
As added by P.L.60-1987, SEC.3.
IC 5-10.3-7-7.7
Employees of township trustee's office; service credit
Sec. 7.7. (a) For the purposes of computing benefits anddetermining eligibility, a member who:
(1) has at least one (1) year of service in a position covered bythe fund;
(2) became a member of the fund after December 31, 1987;
(3) was at least sixty (60) years of age when the member joinedthe fund; and
(4) before January 1, 1988, was an employee of a townshiptrustee's office:
(A) located in a county having a consolidated city; and
(B) participating in the fund;
is entitled to service credit as provided in subsections (b) and (c).
(b) A member who is qualified under subsection (a) is entitled toservice credit for the time the member:
(1) was an employee of a township trustee's office described insubsection (a)(4);
(2) was employed in a position covered by the fund; and
(3) was not a member of the fund.
(c) To receive service credit under this section, a member mustpay into the fund the amount the member would have contributed ifthe member had been a member of the fund for the period describedin subsection (b).
As added by P.L.1-1990, SEC.59.
IC 5-10.3-7-7.8
Repealed
(Repealed by P.L.1-1990, SEC.60.)
IC 5-10.3-7-7.9
Service credits; eligibility; computation
Sec. 7.9. (a) This section applies to a person who is or was anemployee of the office of a township executive in a county having a
consolidated city.
(b) Except as provided in subsection (d), for the purposes ofcomputing benefits and determining eligibility, a member who:
(1) has at least one (1) year of service in a position covered bythe fund;
(2) became a member of the fund after December 31, 1987;
(3) was at least sixty (60) years of age when the member joinedthe fund; and
(4) was an employee of the state or a political subdivisionparticipating in the fund, or both, before January 1, 1988;
is entitled to service credit as provided in subsection (c).
(c) A member who is qualified under subsection (b) is entitled toservice credit for the time the member:
(1) was an employee of the state or a political subdivisionparticipating in the fund, or both;
(2) was employed in a position covered by the fund; and
(3) was not a member of the fund.
(d) To receive service credit under this section, a member mustpay into the fund the amount the member would have contributed ifthe member had been a member of the fund for the period describedin subsection (c).
As added by P.L.1-1990, SEC.61.
IC 5-10.3-7-8
Other service
Sec. 8. Other Service. The board may establish rules to govern thedetermination of service in cases not specifically provided for in thisarticle or in IC 5-10.2-3.
As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-7-9
Member contributions
Sec. 9. Each member shall contribute three percent (3%) of hiscompensation to the fund as specified in IC 5-10.2-3. However, fora member who is a state employee, the employer shall pay thecontribution for the member, and for a member who is not a stateemployee, the employer may pay all or a part of the contribution forthe member.
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.41-1983,SEC.8; P.L.35-1985, SEC.22; P.L.55-1989, SEC.23; P.L.246-2001,SEC.11.
IC 5-10.3-7-9.5
Rollover contributions; trustee to trustee transfers; liability forincome tax consequences of transfers
Sec. 9.5. (a) The fund may accept cash rollover contributions froma member who is making payments for additional service creditsunder this chapter if the following conditions are met:
(1) The rollover contribution must represent:
(A) all or a portion of the member's interest in a retirement
plan of a former employer which is qualified under Section401(a) of the Internal Revenue Code and which permits theinterest to be transferred to the fund as a qualifying rollovercontribution under the Internal Revenue Code;
(B) all or a portion of the member's interest from anindividual retirement account or annuity described in Section408(a) or Section 408(b) of the Internal Revenue Code;
(C) all or a portion of the member's interest in:
(i) a qualified plan described in Section 403(a) of theInternal Revenue Code; or
(ii) an annuity contract or account described in Section403(b) of the Internal Revenue Code; or
(D) all or a portion of the member's interest in an eligibleplan that is maintained by a state, a political subdivision ofa state, or an agency or instrumentality of a state or politicalsubdivision of a state under Section 457(b) of the InternalRevenue Code.
(2) The amount of the rollover contributions may not exceed theamount of payment required to purchase the service creditsunder this chapter.
(3) The rollover contributions may contain only tax-deferredcontributions and earnings on the contributions, and may notinclude any post-tax contributions.
(4) The member must be otherwise eligible to purchase theservice credit under this chapter.
(b) To the extent permitted by the Internal Revenue Code and theapplicable regulations, the fund may accept, on behalf of a memberwho is purchasing permissive service credit under this chapter, atrustee to trustee transfer from:
(1) an annuity contract or account described in Section 403(b)of the Internal Revenue Code; or
(2) an eligible deferred compensation plan under Section 457(b)of the Internal Revenue Code.
(c) The fund, the board, and their respective members, officers,and employees do not have any responsibility or liability with respectto the federal and state income tax consequences of any transfermade to the fund under this section. The board may require, as acondition to the fund's acceptance of a rollover contribution:
(1) satisfactory evidence that the proposed transfer is aqualifying rollover contribution under the Internal RevenueCode; and
(2) reasonable releases or indemnifications from the memberagainst any and all liabilities that may be connected with thetransfer.
(d) Cash transferred to the fund as a rollover contribution shall bedeposited in the retirement allowance account.
(e) A member who terminates employment before satisfying theeligibility requirements necessary for a pension or disability benefitmay withdraw the member's rollover contribution, plus accumulatedinterest, after submitting a properly completed application for a
refund to the fund. However, the member must also apply for arefund of the member's entire annuity savings account underIC 5-10.2-3 to be eligible for a refund of the member's rolloveramount.
(f) Except as provided in this section, the fund shall not acceptany other rollover contributions from a member.
(g) The board shall administer this section in accordance with therollover provisions of the Internal Revenue Code and any applicableregulations.
As added by P.L.5-1997, SEC.7. Amended by P.L.61-2002, SEC.8.
IC 5-10.3-7-10
Membership records
Sec. 10. Each department shall submit to the board certifiedmembership records containing the names, titles, rates ofcompensation, dates of birth, length of service, and other pertinentinformation required by the board about the department's employees.A department must submit the membership record to the board notmore than thirty (30) days after the member's date of hire.
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.195-1999,SEC.24.
IC 5-10.3-7-11
Payroll preparation
Sec. 11. The director shall certify to the department the names ofthe employees for whom deductions or payments of contributionsmust be made. In the preparation of payrolls, each department shallindicate:
(1) the total compensation of each employee;
(2) the amount of each member's contribution; and
(3) the net amount payable to each member.
No compensation may be paid and no payroll may be processedunless the deduction or payment is made for members' contributions.
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.41-1983,SEC.9; P.L.5-1990, SEC.10.
IC 5-10.3-7-12
Certification of deductions; transfer to fund
Sec. 12. A certified copy of each department's payroll or anequivalent certified list of members shall be sent to the boardtogether with a warrant issued by the department for members'contributions.
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.41-1983,SEC.10.
IC 5-10.3-7-12.5
Reports, records, or membership payments; failure to submit
Sec. 12.5. (a) An employer or department shall make the reports,membership records, or payments required by IC 5-10.3-6 or bysections 10 through 12 of this chapter: (1) not more than thirty (30) days after the end of the calendarquarter, if applicable;
(2) another due date specified in sections 10 through 12 of thischapter; or
(3) an alternate due date established by the rules of the board.
(b) If the employer or department does not make the reports,records, or payments within the time specified in subsection (a):
(1) the board may fine the employer or department one hundreddollars ($100) for each additional day that the reports, records,or payments are late, to be withheld under IC 5-10.3-6-7; and
(2) if the employer or department is habitually late, asdetermined by the board, the board shall report the employer orthe department to the auditor of state for additional withholdingunder IC 5-10.3-6-7.
(c) After December 31, 2009, an employer or department shallsubmit:
(1) the reports and records described in subsection (a) in auniform format through a secure connection over the Internet orthrough other electronic means specified by the board inaccordance with IC 5-10.2-2-12.5; and
(2) both:
(A) employer contributions determined underIC 5-10.2-2-11; and
(B) contributions paid by or on behalf of a member undersection 9 of this chapter;
by electronic funds transfer in accordance withIC 5-10.2-2-12.5.
As added by P.L.195-1999, SEC.25. Amended by P.L.165-2009,SEC.6.
IC 5-10.3-7-13
Suspension of membership; withdrawal of contributions
Sec. 13. Suspension of Membership; Withdrawal ofContributions. Each member who suspends his membership andwithdraws his contributions plus interest credits is covered byIC 5-10.2-3.
As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-7-14
Governor's waiver of membership
Sec. 14. Governor's Waiver of Membership. A governor whomakes an irrevocable choice under IC 4-3-3-1.1 to receive aretirement benefit other than the retirement benefit from the fundwaives his right to membership in the fund and to any benefit fromthe fund on and after the date of his irrevocable choice. After thegovernor makes that irrevocable choice, he is entitled to withdraw ina lump sum from the fund the amount of his contributions plusinterest credited to him.
As added by Acts 1980, P.L.9, SEC.4.
IC 5-10.3-7-15
Reinstatements of eligibility
Sec. 15. A person who has fifteen (15) or more years of creditableservice in the fund and has withdrawn from the fund before reachingthe age of sixty-five (65) years may apply for reinstatement ofeligibility, if the person:
(1) makes the application before July 1, 1998, and within ninety(90) days after reaching the age of sixty-five (65) years; and
(2) demonstrates that further employment with an employercovered by the fund is impractical due to health or otherconditions as determined by the board.
The board has the ultimate authority whether to grant reinstatementsof eligibility.
As added by P.L.5-1997, SEC.8.