CHAPTER 8.5. RETIREMENT MEDICAL BENEFITS ACCOUNT
IC 5-10-8.5
Chapter 8.5. Retirement Medical Benefits Account
IC 5-10-8.5-1
Application of chapter
Sec. 1. (a) This chapter applies to an individual who is one (1) ofthe following:
(1) An employee of the executive, legislative, or judicial branchof state government.
(2) A state elected or appointed officer.
(3) A member of the general assembly.
(4) An elected officer paid by the state.
(5) An officer paid by the state under IC 33-23-5-10,IC 33-38-5-7, or IC 33-39-6-2.
(b) An individual described in subsection (a) is a participant in theretirement medical benefits account.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-2
"Account"
Sec. 2. As used in this chapter, "account" refers to the retirementmedical benefits account established by section 11 of this chapter.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-3
"Budget agency"
Sec. 3. As used in this chapter, "budget agency" refers to thebudget agency established under IC 4-12-1-3.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-4
"Department"
Sec. 4. As used in this chapter, "department" refers to the statepersonnel department established under IC 4-15-1.8-2.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-5
"Employer"
Sec. 5. As used in this chapter, "employer" means the following:
(1) For an elected officer, appointed officer, or employee of theexecutive branch of state government, the state, including anyboard, commission, department, division, authority, institution,establishment, facility, or governmental unit under thesupervision of the state, having a payroll in relation to personsit immediately employs.
(2) For a member of the general assembly or an employee of thelegislative branch of state government:
(A) the president pro tempore of the senate, for a member oran employee of the senate;
(B) the speaker of the house, for a member or an employee
of the house of representatives; or
(C) the personnel subcommittee of the legislative council,for an employee of the legislative services agency.
(3) For:
(A) a justice;
(B) a judge;
(C) a prosecuting attorney;
(D) an officer described under section 1(a)(5) of thischapter; or
(E) an employee of the judicial branch of state government,including an employee of any board, commission,department, division, authority, institution, establishment,facility, or governmental unit under the supervision of thejudicial branch, having a payroll in relation to persons itimmediately employs;
the Indiana supreme court.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-6
"Fund"
Sec. 6. As used in this chapter, "fund" refers to the publicemployees' retirement fund established under IC 5-10.3-2-1.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-7
"Internal Revenue Code"
Sec. 7. As used in this chapter, "Internal Revenue Code":
(1) means the Internal Revenue Code of 1954, as in effectSeptember 1, 1974, if permitted with respect to governmentalplans; or
(2) to the extent not inconsistent with subdivision (1), has themeaning set forth in IC 6-3-1-11.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-8
"Participant"
Sec. 8. As used in this chapter, "participant" means an individualfor whom a subaccount is established under section 14 of thischapter.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-9
"Retired participant"
Sec. 9. (a) As used in this chapter, "retired participant" means:
(1) A participant who is eligible for and has applied to receivea normal, unreduced or disability retirement benefit (asdetermined by the Indiana public employee retirement fund ofwhich the participant is a member) on the participant's last dayof service.
(2) A participant who has completed at least ten (10) years of
service as an elected or appointed officer on the participant'slast day of service as an elected or appointed officer.
(b) For a participant described in subsection (a)(2) who hasservice with more than one (1) employer, the participant's years ofservice is the sum of all of the participant's years of service.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-10
"Subaccount"
Sec. 10. As used in this chapter, "subaccount" means aparticipant's allocable share of the account.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-11
Account established; administered by budget agency; specificappropriation required
Sec. 11. (a) The budget agency shall adopt provisions to establisha retirement medical benefits account as a health reimbursementarrangement or as a separate fund under another applicable sectionof the Internal Revenue Code for the purpose of funding by anemployer on a pretax basis benefits for sickness, accident,hospitalization, and medical expenses for a participant and thespouse and dependents of a participant after the participant'sretirement.
(b) The budget agency shall administer the account and mayrequest the assistance of the department, the fund, and other stateagencies. The account shall be maintained as a separate account topay benefits for sickness, accident, hospitalization, and medicalexpenses for retired participants and their spouses and dependents.
(c) Notwithstanding any other provision of this chapter, thebudget agency may not establish the account or implement the healthreimbursement arrangement unless the general assembly makes aspecific appropriation to implement the health reimbursementarrangement.
(d) The budget agency may adopt rules under IC 4-22-2 that itconsiders appropriate or necessary to administer the account.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-12
Authorization to request Internal Revenue Service rulings
Sec. 12. The budget agency may request from the InternalRevenue Service any rulings or determination letters that the budgetagency considers necessary or appropriate in order to implement oradminister the account.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-13
Management and pooling of account assets; confidentiality ofaccount records
Sec. 13. (a) The budget agency may designate the board of
trustees of the fund to manage the assets in the account in the samemanner and with the same limitations that apply to the managementof the assets in the fund.
(b) The assets in the account may be commingled or pooled withother public funds for investment purposes.
(c) The account and subaccount records of individual participantsand participants' information are confidential, except for the nameand contributions made on behalf of the participant.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-14
Account; subaccounts; administrative costs
Sec. 14. (a) The account consists of the following:
(1) Contributions made by a participant's employer to theaccount under section 15 or 16 of this chapter.
(2) All earnings on investments or deposits of the account.
(3) All contributions or payments to the account made in amanner provided by the general assembly.
(b) The administrative costs of the account shall be paid from theearnings of the account before the earnings are credited toparticipants' subaccounts.
(c) The budget agency shall establish a subaccount for eachparticipant. Each participant's subaccount shall be credited with:
(1) the contributions made to the account on behalf of theparticipant under this chapter; and
(2) after the costs described in subsection (b) are paid, theearnings attributable to the balance of the subaccount.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-15
Annual employer contributions
Revisor's Note: P.L.182-2009(ss), SEC.517 directed that theamendments to this section made by P.L.182-2009(ss), SEC.69 notbe given effect and required this section to be published as follows.
Sec. 15. (a) A participant's employer shall make contributionsannually to the account on behalf of the participant. The amount ofthe contribution each fiscal year must equal the following, based onthe participant's age on the last day of the calendar year that is in thefiscal year in which the contribution is made:
Participant's Age in Years Annual Contribution Amount
Less than 30 $500
At least 30, but less than 40 $800
At least 40, but less than 50 $1,100
At least 50 $1,400
(b) The budget agency shall determine by rule the date on whichthe contributions are credited to participants' subaccounts.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-16
Employer additional contribution; eligibility; computation;
expiration date
Sec. 16. (a) If a participant meets all of the following conditions,the participant is entitled to receive an additional contributioncredited to the participant's subaccount and computed as describedin subsection (b):
(1) The participant is:
(A) on the participant's last day of service with theparticipant's employer, eligible for and has applied to receivea normal, unreduced retirement benefit from the publicemployee retirement fund of which the participant is amember; or
(B) on the participant's last day of service, an elected orappointed officer.
(2) After June 30, 2007, and before July 1, 2017, the participantterminates service:
(A) from the employer; or
(B) as an elected or appointed officer.
(3) By the participant's last day of service, the participant hascompleted:
(A) fifteen (15) years of service with the employer; or
(B) ten (10) years of service as an elected or appointedofficer.
(b) The amount of the contribution to a participant's subaccountunder this section is the product of:
(1) the participant's years of service (rounded down to thenearest whole year):
(A) with the participant's employer, determined on theparticipant's last day of service with the participant'semployer; or
(B) as an elected or appointed officer, determined on theparticipant's last day of service as an elected or appointedofficer; multiplied by
(2) one thousand dollars ($1,000).
(c) For a participant who has service with more than one (1)employer, the participant's years of service used in the computationunder subsection (b)(1) is the sum of all of the participant's years ofservice.
(d) The participant's employer must credit the additionalcontribution made under this section to the participant's subaccountnot later than sixty (60) days after the participant's last day ofservice.
(e) A participant who meets the requirements to receive anadditional contribution under this section may receive the additionalcontribution only once, regardless of the participant's employmentafter the payment of the additional contribution.
(f) This section expires July 1, 2017.
As added by P.L.44-2007, SEC.1. Amended by P.L.3-2008, SEC.25.
IC 5-10-8.5-17
Eligibility for benefits Sec. 17. (a) A retired participant is entitled to receive a benefitfrom the account.
(b) A participant who is not a retired participant is not entitled toreceive a benefit from the account when the participant separatesfrom service.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-18
Account benefits; coverage
Sec. 18. The balance in a retired participant's subaccount may beused by the retired participant and the spouse and dependents of theretired participant to pay premiums for individual or group healthcoverage.
As added by P.L.44-2007, SEC.1. Amended by P.L.124-2008, SEC.1.
IC 5-10-8.5-19
Surviving spouse or dependent use of account; forfeiture
Sec. 19. (a) The surviving spouse or dependent of a retiredparticipant may use amounts credited to the retired participant to payhealth insurance and other health care related expenses to the sameextent and in the same manner as the retired participant.
(b) If a retired participant dies without a surviving spouse ordependents, unused amounts credited to the retired participant areforfeited.
(c) Any forfeited amount may be used to reduce the contributionsrequired under this chapter.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-20
Budget committee annual review
Sec. 20. The budget committee shall annually review the financialstatus of the account.
As added by P.L.44-2007, SEC.1.