CHAPTER 8. BENEFITS
IC 5-10.3-8
Chapter 8. Benefits
IC 5-10.3-8-1
Conditions and computation
Sec. 1. Retirement and Retirement Benefits. The conditions for amember's retirement and the computation of his retirement benefitare stated in IC 5-10.2-4.
As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-8-2
State legislators; average of annual compensation; computation
Sec. 2. In computing the pension for a member of the generalassembly, the average of the annual compensation is the highestcompensation which the member received in any one (1) year whileengaged in a position covered by the fund in state service, as ateacher, and in service with a political subdivision.
As added by Acts 1977, P.L.53, SEC.3. Amended byP.L.381-1987(ss), SEC.4.
IC 5-10.3-8-3
Retirement benefit options
Sec. 3. Retirement Benefit Options. A member may have hisretirement benefits paid under the options specified in IC 5-10.2-4-7.
As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-8-4
Disability retirement; conditions; computation
Sec. 4. Disability Retirement and Disability Retirement Benefit.The conditions for a member's disability retirement and thecomputation of his disability retirement benefit are stated inIC 5-10.2-4-6.
As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-8-5
Claims of error
Sec. 5. A member may petition the board to correct an error in thedetermination of the member's:
(1) creditable service; or
(2) benefit;
at any time. The petition must contain the necessary information tosustain the member's claim of error. The board shall investigate theclaim and, if error is found, shall order the member's recordscorrected. If no error is found and the member petitioned the boardto correct the error within six (6) years after the determination of themember's creditable service or benefit, the member may appeal theboard's decision under IC 4-21.5.
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.99-2010,SEC.4.
IC 5-10.3-8-6
Death settlements
Sec. 6. Death Settlements. The conditions for payments upon thedeath of a member before retirement are stated in IC 5-10.2-3.
As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-8-7
Re-employment of retired members
Sec. 7. Re-employment of Retired Members. The re-employmentof retired members is covered under IC 5-10.2-4.
As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-8-8
Payment of retirement benefit
Sec. 8. Except as provided under IC 5-10.2-4-7(f), the retirementbenefit is payable in equal monthly installments. The benefit may notbe increased, decreased, revoked or repealed except for error or byaction of the general assembly.
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.115-2009,SEC.12.
IC 5-10.3-8-9
Benefits exempted from legal process; reimbursement ofemployers; withholding payments while charges of criminal takingfrom employer pending
Sec. 9. (a) All benefits, refunds of contributions, and money in thefund are exempt from levy, sale, garnishment, attachment, or otherlegal process. However, the member's contributions or benefits, orboth, may be transferred to reimburse his employer for loss resultingfrom the member's criminal taking of his employer's property by theboard if it receives adequate proof of the loss. The loss resultingfrom the member's criminal taking of his employer's property mustbe proven by a felony or misdemeanor conviction.
(b) The board may withhold payment of a member's contributionsand interest if the employer of the member notifies the board thatfelony or misdemeanor charges accusing the member of the criminaltaking of the employer's property have been filed.
(c) The board may withhold payment of a member's contributionsand interest under subsection (b) until the final resolution of thecriminal charges.
As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.28-1984,SEC.6; P.L.22-1993, SEC.5.
IC 5-10.3-8-10
Assignment of benefits
Sec. 10. Assignment of Benefits. A member or a beneficiary maynot assign any payment except for:
(1) premiums on a life, hospitalization, surgical, or medicalgroup insurance plan maintained in whole or in part by:
(A) a state agency; or (B) any association that proves to the board's satisfactionthat the association has as members at least twenty percent(20%) of the number of the retired members of the fund; and
(2) dues to any association which proves to the board'ssatisfaction that the association has as members at least twentypercent (20%) of the number of the retired members of the fund.
As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1980,P.L.28, SEC.9; P.L.12-2008, SEC.2.
IC 5-10.3-8-11
Federal agricultural employees; federal and state portions ofretirement or disability benefit; limitations
Sec. 11. (a) The retirement or disability benefit (including theannuity) provided under this chapter at the date of retirement ordisability to a member who:
(1) has been classified as a federal employee by the Secretaryof Agriculture of the United States;
(2) was employed after July 1, 1955; and
(3) retires after December 31, 1978, and before July 1, 1987;
may not exceed at the date of retirement or disability, when added tohis federal civil service benefit, seventy-four percent (74%) of theaverage of the annual compensation used in computing his benefitunder this chapter. If the sum of his retirement or disability benefitand his federal civil service benefit does exceed seventy-four percent(74%), then the state pension portion of the benefit shall be reducedby the board so that the sum does not exceed that percent. Indetermination of the annual compensation under this section no morethan two (2) tax supported retirement benefits shall be utilized.However, the annuity portion of the benefit may not be reduced bythis subsection.
(b) The retirement or disability benefit (excluding the annuity)provided under this chapter at the date of retirement or disability toa member who:
(1) has been classified as a federal employee by the Secretaryof Agriculture of the United States;
(2) was employed after July 1, 1955; and
(3) retires after June 30, 1987, and before July 1, 1995;
may not exceed at the date of retirement or disability, when added tothe member's federal civil service benefit, eighty-five percent (85%)of the average of the annual compensation used in computing themember's benefit under this chapter. If the sum of the retirement ordisability benefit (excluding the annuity) and the federal civil servicebenefit exceeds eighty-five percent (85%), the state pension portionof the benefit shall be reduced by the board so that the sum does notexceed that percent.
(c) The retirement or disability benefit (excluding the annuity)provided under this chapter at the date of retirement or disability toa member who:
(1) has been classified as a federal employee by the Secretaryof Agriculture of the United States; (2) was employed after July 1, 1955; and
(3) retires after June 30, 1995;
may not exceed at the date of retirement or disability, when added tothe member's federal civil service benefit, one hundred percent(100%) of the average of the annual compensation used in computingthe member's benefit under this chapter. If the sum of the retirementor disability benefit (excluding the annuity) and the federal civilservice benefit exceeds one hundred percent (100%), the statepension portion of the benefit shall be reduced by the board so thatthe sum does not exceed that percent.
As added by Acts 1978, P.L.24, SEC.6. Amended by P.L.61-1987,SEC.3; P.L.10-1995, SEC.5.
IC 5-10.3-8-12
Stopping member's benefit payments; grounds
Sec. 12. The board may stop a member's benefit if either of thefollowing occurs:
(1) The member does any of the following while receiving thebenefit:
(A) Fails to report for a required examination, unlessexcused by the board.
(B) Disobeys the requirements of the board regarding theexamination.
(C) Refuses to repay an overpayment of benefits.
(2) The board has reasonable cause to believe:
(A) that the member has died; or
(B) in the case of a member receiving disability benefitsunder IC 5-10.2-4-6, that the member no longer has adisability.
As added by P.L.22-1993, SEC.6. Amended by P.L.99-2007, SEC.17.
IC 5-10.3-8-13
Public employees' retirement fund benefits; cost of living increase
Sec. 13. (a) The pension portion (plus postretirement increases tothe pension portion) provided by employer contributions of themonthly benefit payable to a member of the fund (or to a survivor orbeneficiary of a member of the fund) shall be increased beginning onJanuary 1, 2003, by the lesser of:
(1) two percent (2%); or
(2) the annual cost of living adjustment computed under 42U.S.C. 415 and published in the Federal Register in accordancewith 42 U.S.C. 215(i)(2)(D).
(b) The increase described in subsection (a) is payable to amember of the fund (or to a survivor or beneficiary of a member ofthe fund) who has been retired or disabled for at least one (1) year onJanuary 1, 2003.
As added by P.L.191-2002, SEC.2.
IC 5-10.3-8-14
Retirement medical benefits account Sec. 14. (a) This section applies to employees of the state (asdefined in IC 5-10.3-7-1(d)) who are members of the fund.
(b) The board shall adopt provisions to establish a retirementmedical benefits account within the fund under Section 401(h) or asa separate fund under another applicable section of the InternalRevenue Code for the purpose of converting unused excess accruedleave to a monetary contribution for an employee of the state to fundon a pretax basis benefits for sickness, accident, hospitalization, andmedical expenses for the employee and the spouse and dependentsof the employee after the employee's retirement. The state may matchall or a portion of an employee's contributions to the retirementmedical benefits account established under this section.
(c) The board is the trustee of the account described in subsection(b). The account must be qualified, as determined by the InternalRevenue Service, as a separate account within the fund whosebenefits are subordinate to the retirement benefits provided by thefund.
(d) The board may adopt rules under IC 5-10.3-3-8 that itconsiders appropriate or necessary to implement this section afterconsulting with the state personnel department. The rules adopted bythe board under this section must:
(1) be consistent with the federal and state law that applies to:
(A) the account described in subsection (b); and
(B) the fund; and
(2) include provisions concerning:
(A) the type and amount of leave that may be converted to amonetary contribution;
(B) the conversion formula for valuing any leave that isconverted;
(C) the manner of employee selection of leave conversion;and
(D) the vesting schedule for any leave that is converted.
(e) The board may adopt the following:
(1) Account provisions governing:
(A) the investment of amounts in the account; and
(B) the accounting for converted leave.
(2) Any other provisions that are necessary or appropriate foroperation of the account.
(f) The account described in subsection (b) may be implementedonly if the board has received from the Internal Revenue Service anyrulings or determination letters that the board considers necessary orappropriate.
(g) To the extent allowed by:
(1) the Internal Revenue Code; and
(2) rules adopted by:
(A) the board under this section; and
(B) the state personnel department under IC 5-10-1.1-7.5;
employees of the state may convert unused excess accrued leave toa monetary contribution under this section and under IC 5-10-1.1-7.5.
(h) To the extent allowed by the Internal Revenue Code, the
account described in subsection (b) must include provisions that:
(1) require an employee of the state to convert to a monetarycontribution to the account at retirement the balance, but notmore than thirty (30) days, of unused vacation leave for whichthe state would otherwise pay an employee in good standing atseparation from service (as determined by state personneldepartment rule); and
(2) allow the state to contribute to the account on theemployee's behalf an amount not to exceed two (2) times theamount of the employee's contribution under subdivision (1).
As added by P.L.220-2005, SEC.6. Amended by P.L.44-2007, SEC.2.
IC 5-10.3-8-15
Allocation of benefits
Sec. 15. The board may adopt rules to allow a member whodesignates more than one (1) beneficiary to allocate benefit shares inpercentage increments.
As added by P.L.99-2010, SEC.5.