IC 2-3.5-3 Chapter 3. Legislators' Retirement System
IC 2-3.5-3-1 Application of chapter; election Sec. 1. (a) This chapter applies to: (1) each member of the general assembly who is serving onApril 30, 1989, and who files an election under subsection (b);and (2) each member of the general assembly who is elected orappointed after April 30, 1989. (b) A member of the general assembly who is serving on April 30,1989, may elect to have the member's years of service in the generalassembly covered by this chapter, IC 2-3.5-4, and IC 2-3.5-5 insteadof IC 5-10.2, IC 5-10.3, and IC 5-10.4. An election under thissubsection: (1) must be made in writing; (2) must be filed with the PERF board on a form prescribed bythe board; (3) must be made before January 1, 1990; and (4) is irrevocable. (c) Notwithstanding subsection (b), if a member of the generalassembly files an election under subsection (b), the PERF board orthe TRF board shall include all of the member's years of service inthe general assembly in the determination of eligibility for benefitsunder PERF or TRF. However, except as provided byIC 2-3.5-1-2(b), the PERF board or TRF board shall not include inthe computation of benefits from PERF or TRF the member's: (1) salary as a member of the general assembly received afterApril 30, 1989; or (2) years of service as a member of the general assembly afterApril 30, 1989. As added by P.L.6-1989, SEC.1. Amended by P.L.4-1990, SEC.1;P.L.2-2006, SEC.3.
IC 2-3.5-3-2 Establishment; content; funds; administration Sec. 2. (a) The legislators' retirement system is established. Thesystem consists of the legislators' defined benefit plan described inIC 2-3.5-4 and the legislators' defined contribution plan described inIC 2-3.5-5. (b) The following funds are established: (1) The fund for the legislators' defined benefit plan. (2) The fund for the legislators' defined contribution plan. Each of the funds shall be administered by the PERF board. Each ofthe funds is a trust, separate and distinct from all other entities,maintained for the purpose of paying benefits to participants andtheir beneficiaries and paying the costs associated with administeringthe plan. (c) The PERF board shall adopt rules under IC 4-22-2 necessary
for the administration of the plans and funds described in subsections(a) and (b). As added by P.L.6-1989, SEC.1.
IC 2-3.5-3-3 Qualification requirements Sec. 3. The legislators' retirement system shall satisfy thequalification requirements in Section 401 of the Internal RevenueCode, as applicable to the system. In order to meet thoserequirements, the system is subject to the following provisions,notwithstanding any other law: (1) The PERF board shall distribute the corpus and income ofthe funds to participants and their beneficiaries in accordancewith this chapter, IC 2-3.5-4, and IC 2-3.5-5. (2) No part of the corpus or income of the funds may be usedfor or diverted to a purpose other than the exclusive benefit ofthe participants and their beneficiaries. (3) Forfeitures arising from severance of employment, death, orfor any other reason may not be applied to increase the benefitsa participant would otherwise receive under this chapter,IC 2-3.5-4, and IC 2-3.5-5. (4) If the system is terminated, or if all contributions to thesystem are completely discontinued, the rights of each affectedparticipant to the benefits accrued at the date of termination ordiscontinuance, to the extent then funded, are nonforfeitable. (5) All benefits paid from the system shall be distributed inaccordance with the requirements of Section 401(a)(9) of theInternal Revenue Code and the regulations under that section.In order to meet those requirements, the funds are subject to thefollowing provisions: (A) The life expectancy of a participant, the participant'sspouse, or the participant's beneficiary may not berecalculated after the initial determination for purposes ofdetermining benefits. (B) If a participant dies before the distribution of theparticipant's benefits has begun, distributions to beneficiariesmust begin no later than December 31 of the calendar yearimmediately following the calendar year in which themember died. (C) The amount of an annuity paid to a participant'sbeneficiary may not exceed the maximum determined underthe incidental death benefit requirement of the InternalRevenue Code. (6) The PERF board may not: (A) determine eligibility for benefits; (B) compute rates of contribution; or (C) compute benefits of participant's beneficiaries; in a manner that discriminates in favor of participants who areconsidered officers, supervisors, or highly compensated, asprohibited under Section 401(a)(4) of the Internal Revenue
Code. (7) Benefits paid under this chapter, IC 2-3.5-4, and IC 2-3.5-5may not exceed the maximum benefits and contributionsspecified by Section 415 of the Internal Revenue Code. If aparticipant's benefits under this chapter, IC 2-3.5-4, andIC 2-3.5-5 would exceed those maximum benefits andcontributions, the benefit payable under IC 2-3.5-4 shall bereduced as necessary. (8) The salary taken into account under this chapter, IC 2-3.5-4,and IC 2-3.5-5 may not exceed the applicable amount underSection 401(a)(17) of the Internal Revenue Code. (9) The PERF board may not engage in a transaction prohibitedby Section 503(b) of the Internal Revenue Code. As added by P.L.6-1989, SEC.1. Amended by P.L.4-1990, SEC.3.
IC 2-3.5-3-4 PERF board; powers and duties; confidentiality of system records Sec. 4. (a) The PERF board shall administer the system, whichmay be commingled with the PERF fund for investment purposes. (b) The PERF board shall: (1) determine eligibility for and make payments of benefitsunder this chapter, IC 2-3.5-4, and IC 2-3.5-5; (2) in accordance with the powers and duties granted inIC 5-10.3-3-7, IC 5-10.3-3-7.1, IC 5-10.3-3-8, and IC 5-10.3-5-3through IC 5-10.3-5-6, administer the system; (3) provide by rule for the implementation of this chapter,IC 2-3.5-4, and IC 2-3.5-5; and (4) authorize deposits. (c) A determination by the PERF board may be appealed underIC 4-21.5. (d) The powers and duties of: (1) the director and the actuary of the PERF board; (2) the attorney general; and (3) the auditor of state; with respect to the fund are those specified in IC 5-10.3-3 andIC 5-10.3-4. (e) The PERF board may hire additional personnel, includinghearing officers, to assist in the implementation of this chapter. (f) Legislators' retirement system records of individualparticipants and participants' information are confidential, except forthe name and years of service of a retirement system participant. As added by P.L.6-1989, SEC.1. Amended by P.L.5-1990, SEC.1;P.L.94-2004, SEC.2; P.L.99-2010, SEC.1.
IC 2-3.5-3-5 Rollover of eligible distributions Sec. 5. Notwithstanding any other provision of this article, to theextent required by Internal Revenue Code Section 401(a)(31), asadded by the Unemployment Compensation Amendments of 1992(P.L. 102-318), and any amendments and regulations related to
Section 401(a)(31), the legislators' defined benefit plan and thelegislators' defined contribution plan shall allow participants andqualified beneficiaries to elect a direct rollover of eligibledistributions to another eligible retirement plan. As added by P.L.10-1993, SEC.1.
IC 2-3.5-3-6 Administration; service credit and benefits Sec. 6. (a) Notwithstanding any provision of this article, thelegislator's retirement system shall be administered in a mannerconsistent with the Family and Medical Leave Act of 1993 (29U.S.C. 2601 et seq.). A member on a leave of absence that qualifiesfor the benefits and protections afforded by the Family and MedicalLeave Act is entitled to receive credit for vesting and eligibilitypurposes to the extent required by the Family and Medical LeaveAct, but is not entitled to receive credit for service for benefitpurposes. (b) Notwithstanding any provision of this article, a participant 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.). As added by P.L.5-1997, SEC.1.
IC 2-3.5-3 Chapter 3. Legislators' Retirement System
IC 2-3.5-3-1 Application of chapter; election Sec. 1. (a) This chapter applies to: (1) each member of the general assembly who is serving onApril 30, 1989, and who files an election under subsection (b);and (2) each member of the general assembly who is elected orappointed after April 30, 1989. (b) A member of the general assembly who is serving on April 30,1989, may elect to have the member's years of service in the generalassembly covered by this chapter, IC 2-3.5-4, and IC 2-3.5-5 insteadof IC 5-10.2, IC 5-10.3, and IC 5-10.4. An election under thissubsection: (1) must be made in writing; (2) must be filed with the PERF board on a form prescribed bythe board; (3) must be made before January 1, 1990; and (4) is irrevocable. (c) Notwithstanding subsection (b), if a member of the generalassembly files an election under subsection (b), the PERF board orthe TRF board shall include all of the member's years of service inthe general assembly in the determination of eligibility for benefitsunder PERF or TRF. However, except as provided byIC 2-3.5-1-2(b), the PERF board or TRF board shall not include inthe computation of benefits from PERF or TRF the member's: (1) salary as a member of the general assembly received afterApril 30, 1989; or (2) years of service as a member of the general assembly afterApril 30, 1989. As added by P.L.6-1989, SEC.1. Amended by P.L.4-1990, SEC.1;P.L.2-2006, SEC.3.
IC 2-3.5-3-2 Establishment; content; funds; administration Sec. 2. (a) The legislators' retirement system is established. Thesystem consists of the legislators' defined benefit plan described inIC 2-3.5-4 and the legislators' defined contribution plan described inIC 2-3.5-5. (b) The following funds are established: (1) The fund for the legislators' defined benefit plan. (2) The fund for the legislators' defined contribution plan. Each of the funds shall be administered by the PERF board. Each ofthe funds is a trust, separate and distinct from all other entities,maintained for the purpose of paying benefits to participants andtheir beneficiaries and paying the costs associated with administeringthe plan. (c) The PERF board shall adopt rules under IC 4-22-2 necessary
for the administration of the plans and funds described in subsections(a) and (b). As added by P.L.6-1989, SEC.1.
IC 2-3.5-3-3 Qualification requirements Sec. 3. The legislators' retirement system shall satisfy thequalification requirements in Section 401 of the Internal RevenueCode, as applicable to the system. In order to meet thoserequirements, the system is subject to the following provisions,notwithstanding any other law: (1) The PERF board shall distribute the corpus and income ofthe funds to participants and their beneficiaries in accordancewith this chapter, IC 2-3.5-4, and IC 2-3.5-5. (2) No part of the corpus or income of the funds may be usedfor or diverted to a purpose other than the exclusive benefit ofthe participants and their beneficiaries. (3) Forfeitures arising from severance of employment, death, orfor any other reason may not be applied to increase the benefitsa participant would otherwise receive under this chapter,IC 2-3.5-4, and IC 2-3.5-5. (4) If the system is terminated, or if all contributions to thesystem are completely discontinued, the rights of each affectedparticipant to the benefits accrued at the date of termination ordiscontinuance, to the extent then funded, are nonforfeitable. (5) All benefits paid from the system shall be distributed inaccordance with the requirements of Section 401(a)(9) of theInternal Revenue Code and the regulations under that section.In order to meet those requirements, the funds are subject to thefollowing provisions: (A) The life expectancy of a participant, the participant'sspouse, or the participant's beneficiary may not berecalculated after the initial determination for purposes ofdetermining benefits. (B) If a participant dies before the distribution of theparticipant's benefits has begun, distributions to beneficiariesmust begin no later than December 31 of the calendar yearimmediately following the calendar year in which themember died. (C) The amount of an annuity paid to a participant'sbeneficiary may not exceed the maximum determined underthe incidental death benefit requirement of the InternalRevenue Code. (6) The PERF board may not: (A) determine eligibility for benefits; (B) compute rates of contribution; or (C) compute benefits of participant's beneficiaries; in a manner that discriminates in favor of participants who areconsidered officers, supervisors, or highly compensated, asprohibited under Section 401(a)(4) of the Internal Revenue
Code. (7) Benefits paid under this chapter, IC 2-3.5-4, and IC 2-3.5-5may not exceed the maximum benefits and contributionsspecified by Section 415 of the Internal Revenue Code. If aparticipant's benefits under this chapter, IC 2-3.5-4, andIC 2-3.5-5 would exceed those maximum benefits andcontributions, the benefit payable under IC 2-3.5-4 shall bereduced as necessary. (8) The salary taken into account under this chapter, IC 2-3.5-4,and IC 2-3.5-5 may not exceed the applicable amount underSection 401(a)(17) of the Internal Revenue Code. (9) The PERF board may not engage in a transaction prohibitedby Section 503(b) of the Internal Revenue Code. As added by P.L.6-1989, SEC.1. Amended by P.L.4-1990, SEC.3.
IC 2-3.5-3-4 PERF board; powers and duties; confidentiality of system records Sec. 4. (a) The PERF board shall administer the system, whichmay be commingled with the PERF fund for investment purposes. (b) The PERF board shall: (1) determine eligibility for and make payments of benefitsunder this chapter, IC 2-3.5-4, and IC 2-3.5-5; (2) in accordance with the powers and duties granted inIC 5-10.3-3-7, IC 5-10.3-3-7.1, IC 5-10.3-3-8, and IC 5-10.3-5-3through IC 5-10.3-5-6, administer the system; (3) provide by rule for the implementation of this chapter,IC 2-3.5-4, and IC 2-3.5-5; and (4) authorize deposits. (c) A determination by the PERF board may be appealed underIC 4-21.5. (d) The powers and duties of: (1) the director and the actuary of the PERF board; (2) the attorney general; and (3) the auditor of state; with respect to the fund are those specified in IC 5-10.3-3 andIC 5-10.3-4. (e) The PERF board may hire additional personnel, includinghearing officers, to assist in the implementation of this chapter. (f) Legislators' retirement system records of individualparticipants and participants' information are confidential, except forthe name and years of service of a retirement system participant. As added by P.L.6-1989, SEC.1. Amended by P.L.5-1990, SEC.1;P.L.94-2004, SEC.2; P.L.99-2010, SEC.1.
IC 2-3.5-3-5 Rollover of eligible distributions Sec. 5. Notwithstanding any other provision of this article, to theextent required by Internal Revenue Code Section 401(a)(31), asadded by the Unemployment Compensation Amendments of 1992(P.L. 102-318), and any amendments and regulations related to
Section 401(a)(31), the legislators' defined benefit plan and thelegislators' defined contribution plan shall allow participants andqualified beneficiaries to elect a direct rollover of eligibledistributions to another eligible retirement plan. As added by P.L.10-1993, SEC.1.
IC 2-3.5-3-6 Administration; service credit and benefits Sec. 6. (a) Notwithstanding any provision of this article, thelegislator's retirement system shall be administered in a mannerconsistent with the Family and Medical Leave Act of 1993 (29U.S.C. 2601 et seq.). A member on a leave of absence that qualifiesfor the benefits and protections afforded by the Family and MedicalLeave Act is entitled to receive credit for vesting and eligibilitypurposes to the extent required by the Family and Medical LeaveAct, but is not entitled to receive credit for service for benefitpurposes. (b) Notwithstanding any provision of this article, a participant 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.). As added by P.L.5-1997, SEC.1.
IC 2-3.5-3 Chapter 3. Legislators' Retirement System
IC 2-3.5-3-1 Application of chapter; election Sec. 1. (a) This chapter applies to: (1) each member of the general assembly who is serving onApril 30, 1989, and who files an election under subsection (b);and (2) each member of the general assembly who is elected orappointed after April 30, 1989. (b) A member of the general assembly who is serving on April 30,1989, may elect to have the member's years of service in the generalassembly covered by this chapter, IC 2-3.5-4, and IC 2-3.5-5 insteadof IC 5-10.2, IC 5-10.3, and IC 5-10.4. An election under thissubsection: (1) must be made in writing; (2) must be filed with the PERF board on a form prescribed bythe board; (3) must be made before January 1, 1990; and (4) is irrevocable. (c) Notwithstanding subsection (b), if a member of the generalassembly files an election under subsection (b), the PERF board orthe TRF board shall include all of the member's years of service inthe general assembly in the determination of eligibility for benefitsunder PERF or TRF. However, except as provided byIC 2-3.5-1-2(b), the PERF board or TRF board shall not include inthe computation of benefits from PERF or TRF the member's: (1) salary as a member of the general assembly received afterApril 30, 1989; or (2) years of service as a member of the general assembly afterApril 30, 1989. As added by P.L.6-1989, SEC.1. Amended by P.L.4-1990, SEC.1;P.L.2-2006, SEC.3.
IC 2-3.5-3-2 Establishment; content; funds; administration Sec. 2. (a) The legislators' retirement system is established. Thesystem consists of the legislators' defined benefit plan described inIC 2-3.5-4 and the legislators' defined contribution plan described inIC 2-3.5-5. (b) The following funds are established: (1) The fund for the legislators' defined benefit plan. (2) The fund for the legislators' defined contribution plan. Each of the funds shall be administered by the PERF board. Each ofthe funds is a trust, separate and distinct from all other entities,maintained for the purpose of paying benefits to participants andtheir beneficiaries and paying the costs associated with administeringthe plan. (c) The PERF board shall adopt rules under IC 4-22-2 necessary
for the administration of the plans and funds described in subsections(a) and (b). As added by P.L.6-1989, SEC.1.
IC 2-3.5-3-3 Qualification requirements Sec. 3. The legislators' retirement system shall satisfy thequalification requirements in Section 401 of the Internal RevenueCode, as applicable to the system. In order to meet thoserequirements, the system is subject to the following provisions,notwithstanding any other law: (1) The PERF board shall distribute the corpus and income ofthe funds to participants and their beneficiaries in accordancewith this chapter, IC 2-3.5-4, and IC 2-3.5-5. (2) No part of the corpus or income of the funds may be usedfor or diverted to a purpose other than the exclusive benefit ofthe participants and their beneficiaries. (3) Forfeitures arising from severance of employment, death, orfor any other reason may not be applied to increase the benefitsa participant would otherwise receive under this chapter,IC 2-3.5-4, and IC 2-3.5-5. (4) If the system is terminated, or if all contributions to thesystem are completely discontinued, the rights of each affectedparticipant to the benefits accrued at the date of termination ordiscontinuance, to the extent then funded, are nonforfeitable. (5) All benefits paid from the system shall be distributed inaccordance with the requirements of Section 401(a)(9) of theInternal Revenue Code and the regulations under that section.In order to meet those requirements, the funds are subject to thefollowing provisions: (A) The life expectancy of a participant, the participant'sspouse, or the participant's beneficiary may not berecalculated after the initial determination for purposes ofdetermining benefits. (B) If a participant dies before the distribution of theparticipant's benefits has begun, distributions to beneficiariesmust begin no later than December 31 of the calendar yearimmediately following the calendar year in which themember died. (C) The amount of an annuity paid to a participant'sbeneficiary may not exceed the maximum determined underthe incidental death benefit requirement of the InternalRevenue Code. (6) The PERF board may not: (A) determine eligibility for benefits; (B) compute rates of contribution; or (C) compute benefits of participant's beneficiaries; in a manner that discriminates in favor of participants who areconsidered officers, supervisors, or highly compensated, asprohibited under Section 401(a)(4) of the Internal Revenue
Code. (7) Benefits paid under this chapter, IC 2-3.5-4, and IC 2-3.5-5may not exceed the maximum benefits and contributionsspecified by Section 415 of the Internal Revenue Code. If aparticipant's benefits under this chapter, IC 2-3.5-4, andIC 2-3.5-5 would exceed those maximum benefits andcontributions, the benefit payable under IC 2-3.5-4 shall bereduced as necessary. (8) The salary taken into account under this chapter, IC 2-3.5-4,and IC 2-3.5-5 may not exceed the applicable amount underSection 401(a)(17) of the Internal Revenue Code. (9) The PERF board may not engage in a transaction prohibitedby Section 503(b) of the Internal Revenue Code. As added by P.L.6-1989, SEC.1. Amended by P.L.4-1990, SEC.3.
IC 2-3.5-3-4 PERF board; powers and duties; confidentiality of system records Sec. 4. (a) The PERF board shall administer the system, whichmay be commingled with the PERF fund for investment purposes. (b) The PERF board shall: (1) determine eligibility for and make payments of benefitsunder this chapter, IC 2-3.5-4, and IC 2-3.5-5; (2) in accordance with the powers and duties granted inIC 5-10.3-3-7, IC 5-10.3-3-7.1, IC 5-10.3-3-8, and IC 5-10.3-5-3through IC 5-10.3-5-6, administer the system; (3) provide by rule for the implementation of this chapter,IC 2-3.5-4, and IC 2-3.5-5; and (4) authorize deposits. (c) A determination by the PERF board may be appealed underIC 4-21.5. (d) The powers and duties of: (1) the director and the actuary of the PERF board; (2) the attorney general; and (3) the auditor of state; with respect to the fund are those specified in IC 5-10.3-3 andIC 5-10.3-4. (e) The PERF board may hire additional personnel, includinghearing officers, to assist in the implementation of this chapter. (f) Legislators' retirement system records of individualparticipants and participants' information are confidential, except forthe name and years of service of a retirement system participant. As added by P.L.6-1989, SEC.1. Amended by P.L.5-1990, SEC.1;P.L.94-2004, SEC.2; P.L.99-2010, SEC.1.
IC 2-3.5-3-5 Rollover of eligible distributions Sec. 5. Notwithstanding any other provision of this article, to theextent required by Internal Revenue Code Section 401(a)(31), asadded by the Unemployment Compensation Amendments of 1992(P.L. 102-318), and any amendments and regulations related to
Section 401(a)(31), the legislators' defined benefit plan and thelegislators' defined contribution plan shall allow participants andqualified beneficiaries to elect a direct rollover of eligibledistributions to another eligible retirement plan. As added by P.L.10-1993, SEC.1.
IC 2-3.5-3-6 Administration; service credit and benefits Sec. 6. (a) Notwithstanding any provision of this article, thelegislator's retirement system shall be administered in a mannerconsistent with the Family and Medical Leave Act of 1993 (29U.S.C. 2601 et seq.). A member on a leave of absence that qualifiesfor the benefits and protections afforded by the Family and MedicalLeave Act is entitled to receive credit for vesting and eligibilitypurposes to the extent required by the Family and Medical LeaveAct, but is not entitled to receive credit for service for benefitpurposes. (b) Notwithstanding any provision of this article, a participant 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.). As added by P.L.5-1997, SEC.1.
