CHAPTER 2. FUND
IC 5-10.4-2
Chapter 2. Fund
IC 5-10.4-2-1
Establishment of fund
Sec. 1. (a) The Indiana state teachers' retirement fund isestablished to be used to pay benefits to teachers and to supervisorsof teachers in the public schools after specified years of service andunder other specified circumstances.
(b) The board is responsible for the control and management ofthe fund.
As added by P.L.2-2006, SEC.28.
IC 5-10.4-2-2
Accounts
Sec. 2. (a) The board shall segregate the fund into the followingaccounts:
(1) The pre-1996 account.
(2) The 1996 account.
(b) The board shall segregate each of the accounts establishedunder subsection (a) into the following subaccounts:
(1) The annuity savings account.
(2) The retirement allowance account.
(c) Except as provided in subsection (d), member contributionsshall be credited to the annuity savings account within the pre-1996account.
(d) Member contributions made after June 30, 1995, with respectto the following members shall be credited to the annuity savingsaccount within the 1996 account:
(1) An individual who first became a member of the fund afterJune 30, 1995.
(2) A member who:
(A) before July 1, 1995, served in a position covered by thefund; and
(B) after June 30, 1995, and before July 1, 2005, was hiredby another school corporation or institution covered by thefund or rehired by a prior employer.
(3) A member described in subdivision (2) who, after June 30,2005, is hired by another school corporation or institutioncovered by the fund or rehired by a prior employer.
(e) Member contributions made to the pre-1996 account withrespect to a member covered by subsection (d) shall be transferred tothe annuity savings account within the 1996 account.
(f) Employer contributions made after June 30, 1995, with respectto members described in subsection (d) shall be credited to theretirement allowance account within the 1996 account. Employercontributions made after June 30, 1995, with respect to all othermembers shall be credited to the retirement allowance account withinthe pre-1996 account.
(g) The board shall administer these accounts and subaccounts as
specified in IC 5-10.2-2.
As added by P.L.2-2006, SEC.28.
IC 5-10.4-2-3
Proration of expenses among accounts
Sec. 3. The board shall:
(1) prorate the expenses of administration of the fund and thebond of the director between the retirement allowance accounts;and
(2) pay the prorated expenses from those accounts.
As added by P.L.2-2006, SEC.28.
IC 5-10.4-2-4
Required appropriation
Sec. 4. (a) The general assembly shall appropriate an amount fromthe state general fund that is sufficient to cover the state's actuarialliability for each member covered by the pre-1996 account and foreach state employee covered by the 1996 account. The board mayreduce this liability by the amount of interest earned on the depositsin the fund. This liability is determined by the actuarial investigationrequired by IC 5-10.2-2-9.
(b) The actuarial investigation and the board shall include in thedetermination of the liability, contribution rate, and appropriation theamount necessary to fully fund any past and estimated future cost ofliving increases for members of the pre-1996 account and the 1996account, amortized over thirty (30) years. The actuary shall consultwith the budget agency in making this determination.
(c) The board shall:
(1) prepare its budget based on this investigation and for otherspecified expenditures; and
(2) submit the budget to the governor or to another officer orcommittee authorized by law to recommend the necessaryappropriation.
(d) Each school corporation shall contribute to the 1996 accountas specified in IC 5-10.4-7.
(e) If members receive compensation from federal funds, theboard shall determine the employer's contribution, excludingadministrative expenses, at the end of each fiscal year, to be paidfrom federal funds. The amount shall be determined by a methodadopted by the board that results in an equitable sharing of theemployer contribution by the federal government on account ofmembers receiving compensation from federal funds.
As added by P.L.2-2006, SEC.28.
IC 5-10.4-2-5
Pension stabilization fund
Sec. 5. (a) The pension stabilization fund is established. Thepension stabilization fund is a part of the pre-1996 account and shallbe administered by the board in accordance with the powers andduties granted to the board by IC 5-10.4-3-6, IC 5-10.4-3-8, and
IC 5-10.4-3-10 through IC 5-10.4-3-14.
(b) The following shall be deposited in the pension stabilizationfund:
(1) Amounts allocated to the pension stabilization fund underIC 4-30-16-3.
(2) A part of the employer reserve balance as determined by thebudget director so that the employer reserve is sufficient for thecash flow needs.
(3) Other amounts appropriated to the pension stabilization fundby the general assembly.
(c) Payments from the pension stabilization fund must equal thepre-1996 account liabilities for the current fiscal year minus the prioryear's state general fund payments for the pre-1996 accountmultiplied by the pension stabilization percentage set forth insubsection (d).
(d) The pension stabilization percentage is one hundred sixpercent (106%). The budget agency, after review by the budgetcommittee and with the approval of the governor, may change thepension stabilization percentage so that the present value of futurepayments from the fund equal the fund's balance plus the presentvalue of future receipts to the fund, but the payments may not allowthe fund balance to be negative.
(e) Money in the pension stabilization fund at the end of a statefiscal year does not revert to the state general fund.
As added by P.L.2-2006, SEC.28.
IC 5-10.4-2-6
Allocation of interest income
Sec. 6. The board shall do the following:
(1) Credit interest to the members' annuity savings accounts inthe guaranteed fund and actual earnings to the alternativeinvestment programs.
(2) After complying with subdivision (1), distribute anyremaining undistributed income reserve as of the end of eachaccounting period as determined by the rules of the board.
As added by P.L.2-2006, SEC.28. Amended by P.L.99-2010, SEC.6.