IC 2-3.5-5 Chapter 5. Legislators' Defined Contribution Plan
IC 2-3.5-5-1 Application Sec. 1. This chapter applies to: (1) each member of the general assembly who is serving onApril 30, 1989, and who files an election under IC 2-3.5-3-1(b);and (2) each member of the general assembly who is elected orappointed after April 30, 1989. As added by P.L.6-1989, SEC.1.
IC 2-3.5-5-2 Defined contribution fund; content Sec. 2. (a) The defined contribution fund consists of thefollowing: (1) Each participant's contributions to the fund. (2) Contributions made to the fund on behalf of the participantsunder: (A) section 5 of this chapter (before its repeal on January 1,2009); or (B) after December 31, 2008, section 5.5 of this chapter. (3) Amounts transferred to the fund under subsections (b) and(c). (4) All gifts, grants, devises, and bequests in money, property,or other form made to the fund. (5) All earnings on investments or on deposits of the funds. (6) All contributions or payments to the fund made in a mannerprovided by the general assembly. (b) On any July 1 following the date a participant beginsparticipation in the defined contribution fund, if the participant hasbeen before that date a member of PERF, any amount in the PERFannuity savings account credited to the participant may at theparticipant's irrevocable option be transferred one (1) time to thedefined contribution fund for the benefit of the participant. At noother time, if the participant continues or begins to participate inPERF, may such a transfer be made. (c) On any July 1 following the date a participant beginsparticipation in the defined contribution fund, if the participant hasbeen before that date a member of TRF, the amount in the TRFannuity savings account credited to the participant may at theparticipant's irrevocable election be transferred one (1) time to thedefined contribution fund for the benefit of the participant. At noother time, if the participant continues or begins to participate inTRF, may the transfer be made. (d) Each participant shall be credited individually with: (1) the participant's contributions to the fund under section 4 ofthis chapter, which shall be credited to the participant's account; (2) the contributions made to the fund on behalf of the
participant under: (A) section 5 of this chapter (before its repeal on January 1,2009); or (B) after December 31, 2008, section 5.5 of this chapter; which shall be credited to the participant's account; (3) the amount transferred to the fund under subsections (b) and(c), which shall be credited to the participant's account; and (4) the net earnings on the participant's accounts, determinedunder section 3 of this chapter. As added by P.L.6-1989, SEC.1. Amended by P.L.195-1999, SEC.2and P.L.205-1999, SEC.3; P.L.43-2007, SEC.2.
IC 2-3.5-5-3 Version a Alternative investment programs Note: This version of section effective until 7-1-2010. See alsofollowing version of this section, effective 7-1-2010. Sec. 3. (a) The PERF board shall establish alternative investmentprograms within the fund, based on the following requirements: (1) The PERF board shall maintain at least one (1) alternativeinvestment program that is an indexed stock fund, one (1)alternative investment program that is a bond fund, and one (1)alternative investment program that is a stable value fund. (2) The programs should represent a variety of investmentobjectives. (3) The programs may not permit a member to withdraw moneyfrom the member's account, except as provided in section 6 ofthis chapter. (4) All administrative costs of each alternative program shall bepaid from the earnings on that program. (5) A valuation of each member's account must be completed asof: (A) the last day of each quarter; or (B) a time that the board may specify by rule. (b) A member shall direct the allocation of the amount credited tothe member among the available alternative investment funds,subject to the following conditions: (1) A member may make a selection or change an existingselection under rules established by the PERF board. The PERFboard shall allow a member to make a selection or change anyexisting selection at least once each quarter. (2) The PERF board shall implement the member's selectionbeginning on the first day of the next calendar quarter thatbegins at least thirty (30) days after the selection is received bythe PERF board or on an alternate date established by the rulesof the board. This date is the effective date of the member'sselection. (3) A member may select any combination of the availableinvestment funds, in ten percent (10%) increments or smallerincrements that may be established by the rules of the board. (4) A member's selection remains in effect until a new selection
is made. (5) On the effective date of a member's selection, the boardshall reallocate the member's existing balance or balances inaccordance with the member's direction, based on the marketvalue on the effective date. (6) If a member does not make an investment selection of thealternative investment programs, the member's account shall beinvested in the PERF board's general investment fund. (7) All contributions to the member's account shall be allocatedas of the last day of the quarter in which the contributions arereceived or at an alternate time established by the rules of theboard in accordance with the member's most recent effectivedirection. The PERF board shall not reallocate the member'saccount at any other time. (c) When a member transfers the amount credited to the memberfrom one (1) alternative investment program to another alternativeinvestment program, the amount credited to the member shall bevalued at the market value of the member's investment, as of the daybefore the effective date of the member's selection or at an alternatetime established by the rules of the board. When a member retires,becomes disabled, dies, or withdraws from the fund, the amountcredited to the member shall be the market value of the member'sinvestment as of the last day of the quarter preceding the member'sdistribution or annuitization at retirement, disability, death, orwithdrawal, plus contributions received after that date or at analternate time established by the rules of the board. (d) The PERF board shall determine the value of each alternativeprogram in the defined contribution fund, as of the last day of eachcalendar quarter, as follows: (1) The market value shall exclude the employer contributionsand employee contributions received during the quarter endingon the current allocation date. (2) The market value as of the immediately preceding quarterend date shall include the employer contributions and employeecontributions received during that preceding quarter. (3) The market value as of the immediately preceding quarterend date shall exclude benefits paid from the fund during thequarter ending on the current quarter end date. As added by P.L.6-1989, SEC.1. Amended by P.L.205-1999, SEC.4;P.L.195-1999, SEC.3; P.L.118-2000, SEC.1; P.L.13-2001, SEC.4;P.L.30-2009, SEC.1; P.L.165-2009, SEC.1; P.L.1-2010, SEC.1.
IC 2-3.5-5-3 Version b Alternative investment programs Note: This version of section effective 7-1-2010. See alsopreceding version of this section, effective until 7-1-2010. Sec. 3. (a) The PERF board shall establish alternative investmentprograms within the fund, based on the following requirements: (1) The PERF board shall maintain at least one (1) alternativeinvestment program that is an indexed stock fund, one (1)
alternative investment program that is a bond fund, and one (1)alternative investment program that is a stable value fund. ThePERF board may maintain one (1) or more alternativeinvestment programs that: (A) invest in one (1) or more commingled or pooled fundsthat consist in part or entirely of mortgages that qualify asfive star mortgages under the program established byIC 24-5-23.6; or (B) otherwise invest in mortgages that qualify as five starmortgages under the program established by IC 24-5-23.6. (2) The programs should represent a variety of investmentobjectives. (3) The programs may not permit a member to withdraw moneyfrom the member's account, except as provided in section 6 ofthis chapter. (4) All administrative costs of each alternative program shall bepaid from the earnings on that program. (5) A valuation of each member's account must be completed asof: (A) the last day of each quarter; or (B) a time that the board may specify by rule. (b) A member shall direct the allocation of the amount credited tothe member among the available alternative investment funds,subject to the following conditions: (1) A member may make a selection or change an existingselection under rules established by the PERF board. The PERFboard shall allow a member to make a selection or change anyexisting selection at least once each quarter. (2) The PERF board shall implement the member's selectionbeginning on the first day of the next calendar quarter thatbegins at least thirty (30) days after the selection is received bythe PERF board or on an alternate date established by the rulesof the board. This date is the effective date of the member'sselection. (3) A member may select any combination of the availableinvestment funds, in ten percent (10%) increments or smallerincrements that may be established by the rules of the board. (4) A member's selection remains in effect until a new selectionis made. (5) On the effective date of a member's selection, the boardshall reallocate the member's existing balance or balances inaccordance with the member's direction, based on the marketvalue on the effective date. (6) If a member does not make an investment selection of thealternative investment programs, the member's account shall beinvested in the PERF board's general investment fund. (7) All contributions to the member's account shall be allocatedas of the last day of the quarter in which the contributions arereceived or at an alternate time established by the rules of theboard in accordance with the member's most recent effective
direction. The PERF board shall not reallocate the member'saccount at any other time. (c) When a member transfers the amount credited to the memberfrom one (1) alternative investment program to another alternativeinvestment program, the amount credited to the member shall bevalued at the market value of the member's investment, as of the daybefore the effective date of the member's selection or at an alternatetime established by the rules of the board. When a member retires,becomes disabled, dies, or withdraws from the fund, the amountcredited to the member shall be the market value of the member'sinvestment as of the last day of the quarter preceding the member'sdistribution or annuitization at retirement, disability, death, orwithdrawal, plus contributions received after that date or at analternate time established by the rules of the board. (d) The PERF board shall determine the value of each alternativeprogram in the defined contribution fund, as of the last day of eachcalendar quarter, as follows: (1) The market value shall exclude the employer contributionsand employee contributions received during the quarter endingon the current allocation date. (2) The market value as of the immediately preceding quarterend date shall include the employer contributions and employeecontributions received during that preceding quarter. (3) The market value as of the immediately preceding quarterend date shall exclude benefits paid from the fund during thequarter ending on the current quarter end date. As added by P.L.6-1989, SEC.1. Amended by P.L.205-1999, SEC.4;P.L.195-1999, SEC.3; P.L.118-2000, SEC.1; P.L.13-2001, SEC.4;P.L.30-2009, SEC.1; P.L.165-2009, SEC.1; P.L.1-2010, SEC.1;P.L.115-2010, SEC.1.
IC 2-3.5-5-4 Participant contributions to the fund Sec. 4. Each participant shall make contributions to the definedcontribution fund of five percent (5%) of each payment of salaryreceived for services after June 30, 1989. Contributions shall bededucted from the salary of each participant by the auditor of state.Contributions shall be credited to the fund on the June 30 followingtheir deduction. As added by P.L.6-1989, SEC.1.
IC 2-3.5-5-5 Repealed (Repealed by P.L.43-2007, SEC.13.)
IC 2-3.5-5-5.5 Contributions made to defined contribution fund after 12/31/08;"salary" defined; time for making contributions; determination ofcontribution percentage Sec. 5.5. (a) This section applies to contributions to the defined
contribution fund made by the state after December 31, 2008. (b) This subsection applies after December 31, 2008.Notwithstanding IC 2-3.5-2-10, as used in this section, "salary"means the total of the following amounts paid to a participant by thestate for performing legislative services in the year in which theamounts are paid, determined without regard to any salary reductionagreement established under Section 125 or Section 457 of theInternal Revenue Code: (1) Salary. (2) Business per diem allowance and allowances paid in lieu ofthe submission of claims for reimbursement (but excluding anyallowances paid for mileage). (3) Allowances paid to officers of the house of representativesand the senate. (c) This subsection applies after December 31, 2008. The stateshall make a contribution to the defined contribution fund on behalfof each participant on June 30 of each year. The amount of thecontribution is determined by multiplying the participant's salary forthat year by a percentage determined for that year by the PERF boardunder subsection (d). (d) This subsection applies after December 31, 2008. The PERFboard shall use the following rates in determining the percentagedescribed in subsection (c): (1) The rate of the state's normal contribution for its employeesto PERF, as determined under IC 5-10.2-2-11. (2) The rate at which the state makes contributions to annuitysavings accounts on behalf of state employees who are membersof PERF, as specified in IC 5-10.2-3-2 and IC 5-10.3-7-9. (e) This subsection applies after December 31, 2008. The budgetagency shall confirm the percentage determined by the PERF board.The percentage confirmed by the budget agency may not exceed thetotal contribution rate paid that year by the state to PERF for stateemployees. As added by P.L.43-2007, SEC.3.
IC 2-3.5-5-6 Termination of service; withdrawal from the fund Sec. 6. (a) A participant who terminates service as a member ofthe general assembly is entitled to withdraw both the participant'semployee contribution account and employer contribution accountfrom the defined contribution fund. The withdrawal shall be madenot later than the required beginning date under the Internal RevenueCode. The amount available for the withdrawal shall be the fairmarket value of the participant's accounts on the last day of thequarter preceding the date of withdrawal plus employee contributionsdeducted and employer contributions made since the last day of thequarter preceding the date of withdrawal. (b) The withdrawal amount shall be paid in a lump sum, a partiallump sum, a monthly annuity as purchased by the PERF board withthe remaining amount, or a series of monthly installment payments
over sixty (60), one hundred twenty (120), or one hundred eighty(180) months, as elected by the participant. The forms of annuity andinstallments shall be established by the PERF board by rule, inconsultation with the system's actuary. The PERF board shall giveparticipants information on these forms of payments and the effectsof various dates of withdrawal. As added by P.L.6-1989, SEC.1. Amended by P.L.195-1999, SEC.4and P.L.205-1999, SEC.5; P.L.13-2001, SEC.5.
IC 2-3.5-5-7 Death of participant; designated beneficiaries; surviving spouse;dependent children Sec. 7. (a) This section applies to a participant who dies while amember of the general assembly, or who dies after terminatingservice as a member of the general assembly and prior towithdrawing the participant's account from the defined contributionfund. The participant's employee contribution account and theparticipant's employer contribution account shall be paid to abeneficiary or the beneficiaries designated on a form prescribed bythe board. The amount paid shall be the fair market value of theparticipant's accounts on the last day of the quarter preceding thedate of payment, plus employee contributions deducted and employercontributions made since the last day of the quarter preceding thedate of payment. If there is no properly designated beneficiary, or ifno beneficiary survives the participant, the participant's accountsshall be paid to: (1) the surviving spouse of the participant; (2) if there is no surviving spouse, a surviving dependent or thesurviving dependents of the participant; or (3) if there is no surviving spouse and no surviving dependent,the estate of the participant. (b) Amounts payable under this section shall be paid in a lumpsum, a partial lump sum, a monthly annuity as purchased by thePERF board with the remaining amount, or a series of monthlyinstallment payments over sixty (60) months, as elected by therecipient. The forms of annuity and installments available shall beestablished by the PERF board by rule, in consultation with thesystem's actuary. As added by P.L.6-1989, SEC.1. Amended by P.L.195-1999, SEC.5and P.L.205-1999, SEC.6; P.L.13-2001, SEC.6.
IC 2-3.5-5-8 Biennial appropriation Sec. 8. (a) For purposes of this chapter, there is appropriated foreach biennium the following sums of money: (1) From the state general fund, the amount required to equalthe contributions specified in: (A) section 5 of this chapter (before its repeal on January 1,2009); or (B) after December 31, 2008, section 5.5 of this chapter. (2) From the state general fund, the amount required foradministration of this chapter. (b) The biennial appropriation provided in this section shall becredited to the defined contribution fund annually in the month ofJuly of each year of the biennium, based on the amounts specified insubsection (a). As added by P.L.6-1989, SEC.1. Amended by P.L.43-2007, SEC.4.
IC 2-3.5-5-9 Exemptions; criminal taking of state property Sec. 9. All benefits and assets in the defined contribution fund areexempt from levy, sale, garnishment, attachment, or other legalprocess. However, a participant's benefits may be transferred toreimburse the state for loss resulting from the participant's criminaltaking of state property if the board receives adequate proof of theloss. The loss must be proven by conviction of a felony ormisdemeanor. As added by P.L.6-1989, SEC.1.
IC 2-3.5-5-10 Assignment of benefits Sec. 10. A participant or beneficiary may not assign any paymentunder this chapter except for: (1) premiums on a life, hospitalization, surgical, or medicalgroup insurance plan maintained in part by a state agency; and (2) dues to an association that proves to the board's satisfactionthat the association has as members at least twenty percent(20%) of the retired participants in the legislators' definedbenefit plan. As added by P.L.6-1989, SEC.1.
IC 2-3.5-5-11 Loans Sec. 11. Before January 1, 2002, the PERF board shall adopt rulesestablishing procedures for making loans to a participant from theparticipant's employee contribution account and employercontribution account within the defined contribution fund. Rulesadopted under this section must comply with the requirements ofSection 72(p) of the Internal Revenue Code and must apply to eachparticipant in the plan, regardless of whether the participant isserving in the general assembly at the time of the loan. A loan madein accordance with rules adopted under this section is not consideredthe receipt of retirement benefits for purposes of IC 5-10-8-1. As added by P.L.184-2001, SEC.1.
IC 2-3.5-5-12 Rollover distributions Sec. 12. (a) To the extent permitted by the Internal Revenue Codeand the applicable regulations, the fund may accept, on behalf of anyactive member, a rollover distribution from any of the following: (1) A qualified plan described in Section 401(a) or Section403(a) of the Internal Revenue Code. (2) An annuity contract or account described in Section 403(b)of the Internal Revenue Code. (3) An eligible plan that is maintained by a state, a politicalsubdivision of a state, or an agency or instrumentality of a stateor political subdivision of a state under Section 457(b) of theInternal Revenue Code. (4) An individual retirement account or annuity described inSection 408(a) or Section 408(b) of the Internal Revenue Code. (b) Any amounts rolled over under subsection (a) must beaccounted for in a "rollover account" that is separate from themember's account. (c) A member may direct the investment of the member's rolloveraccount into any alternative investment option that the board maymake available to the member's rollover account under section 3 ofthis chapter. (d) A member may withdraw the member's rollover account fromthe fund in a lump sum at any time before retirement. At retirement,the member may withdraw the member's rollover account inaccordance with the retirement options that are available for themember's account. As added by P.L.61-2002, SEC.1.
IC 2-3.5-5 Chapter 5. Legislators' Defined Contribution Plan
IC 2-3.5-5-1 Application Sec. 1. This chapter applies to: (1) each member of the general assembly who is serving onApril 30, 1989, and who files an election under IC 2-3.5-3-1(b);and (2) each member of the general assembly who is elected orappointed after April 30, 1989. As added by P.L.6-1989, SEC.1.
IC 2-3.5-5-2 Defined contribution fund; content Sec. 2. (a) The defined contribution fund consists of thefollowing: (1) Each participant's contributions to the fund. (2) Contributions made to the fund on behalf of the participantsunder: (A) section 5 of this chapter (before its repeal on January 1,2009); or (B) after December 31, 2008, section 5.5 of this chapter. (3) Amounts transferred to the fund under subsections (b) and(c). (4) All gifts, grants, devises, and bequests in money, property,or other form made to the fund. (5) All earnings on investments or on deposits of the funds. (6) All contributions or payments to the fund made in a mannerprovided by the general assembly. (b) On any July 1 following the date a participant beginsparticipation in the defined contribution fund, if the participant hasbeen before that date a member of PERF, any amount in the PERFannuity savings account credited to the participant may at theparticipant's irrevocable option be transferred one (1) time to thedefined contribution fund for the benefit of the participant. At noother time, if the participant continues or begins to participate inPERF, may such a transfer be made. (c) On any July 1 following the date a participant beginsparticipation in the defined contribution fund, if the participant hasbeen before that date a member of TRF, the amount in the TRFannuity savings account credited to the participant may at theparticipant's irrevocable election be transferred one (1) time to thedefined contribution fund for the benefit of the participant. At noother time, if the participant continues or begins to participate inTRF, may the transfer be made. (d) Each participant shall be credited individually with: (1) the participant's contributions to the fund under section 4 ofthis chapter, which shall be credited to the participant's account; (2) the contributions made to the fund on behalf of the
participant under: (A) section 5 of this chapter (before its repeal on January 1,2009); or (B) after December 31, 2008, section 5.5 of this chapter; which shall be credited to the participant's account; (3) the amount transferred to the fund under subsections (b) and(c), which shall be credited to the participant's account; and (4) the net earnings on the participant's accounts, determinedunder section 3 of this chapter. As added by P.L.6-1989, SEC.1. Amended by P.L.195-1999, SEC.2and P.L.205-1999, SEC.3; P.L.43-2007, SEC.2.
IC 2-3.5-5-3 Version a Alternative investment programs Note: This version of section effective until 7-1-2010. See alsofollowing version of this section, effective 7-1-2010. Sec. 3. (a) The PERF board shall establish alternative investmentprograms within the fund, based on the following requirements: (1) The PERF board shall maintain at least one (1) alternativeinvestment program that is an indexed stock fund, one (1)alternative investment program that is a bond fund, and one (1)alternative investment program that is a stable value fund. (2) The programs should represent a variety of investmentobjectives. (3) The programs may not permit a member to withdraw moneyfrom the member's account, except as provided in section 6 ofthis chapter. (4) All administrative costs of each alternative program shall bepaid from the earnings on that program. (5) A valuation of each member's account must be completed asof: (A) the last day of each quarter; or (B) a time that the board may specify by rule. (b) A member shall direct the allocation of the amount credited tothe member among the available alternative investment funds,subject to the following conditions: (1) A member may make a selection or change an existingselection under rules established by the PERF board. The PERFboard shall allow a member to make a selection or change anyexisting selection at least once each quarter. (2) The PERF board shall implement the member's selectionbeginning on the first day of the next calendar quarter thatbegins at least thirty (30) days after the selection is received bythe PERF board or on an alternate date established by the rulesof the board. This date is the effective date of the member'sselection. (3) A member may select any combination of the availableinvestment funds, in ten percent (10%) increments or smallerincrements that may be established by the rules of the board. (4) A member's selection remains in effect until a new selection
is made. (5) On the effective date of a member's selection, the boardshall reallocate the member's existing balance or balances inaccordance with the member's direction, based on the marketvalue on the effective date. (6) If a member does not make an investment selection of thealternative investment programs, the member's account shall beinvested in the PERF board's general investment fund. (7) All contributions to the member's account shall be allocatedas of the last day of the quarter in which the contributions arereceived or at an alternate time established by the rules of theboard in accordance with the member's most recent effectivedirection. The PERF board shall not reallocate the member'saccount at any other time. (c) When a member transfers the amount credited to the memberfrom one (1) alternative investment program to another alternativeinvestment program, the amount credited to the member shall bevalued at the market value of the member's investment, as of the daybefore the effective date of the member's selection or at an alternatetime established by the rules of the board. When a member retires,becomes disabled, dies, or withdraws from the fund, the amountcredited to the member shall be the market value of the member'sinvestment as of the last day of the quarter preceding the member'sdistribution or annuitization at retirement, disability, death, orwithdrawal, plus contributions received after that date or at analternate time established by the rules of the board. (d) The PERF board shall determine the value of each alternativeprogram in the defined contribution fund, as of the last day of eachcalendar quarter, as follows: (1) The market value shall exclude the employer contributionsand employee contributions received during the quarter endingon the current allocation date. (2) The market value as of the immediately preceding quarterend date shall include the employer contributions and employeecontributions received during that preceding quarter. (3) The market value as of the immediately preceding quarterend date shall exclude benefits paid from the fund during thequarter ending on the current quarter end date. As added by P.L.6-1989, SEC.1. Amended by P.L.205-1999, SEC.4;P.L.195-1999, SEC.3; P.L.118-2000, SEC.1; P.L.13-2001, SEC.4;P.L.30-2009, SEC.1; P.L.165-2009, SEC.1; P.L.1-2010, SEC.1.
IC 2-3.5-5-3 Version b Alternative investment programs Note: This version of section effective 7-1-2010. See alsopreceding version of this section, effective until 7-1-2010. Sec. 3. (a) The PERF board shall establish alternative investmentprograms within the fund, based on the following requirements: (1) The PERF board shall maintain at least one (1) alternativeinvestment program that is an indexed stock fund, one (1)
alternative investment program that is a bond fund, and one (1)alternative investment program that is a stable value fund. ThePERF board may maintain one (1) or more alternativeinvestment programs that: (A) invest in one (1) or more commingled or pooled fundsthat consist in part or entirely of mortgages that qualify asfive star mortgages under the program established byIC 24-5-23.6; or (B) otherwise invest in mortgages that qualify as five starmortgages under the program established by IC 24-5-23.6. (2) The programs should represent a variety of investmentobjectives. (3) The programs may not permit a member to withdraw moneyfrom the member's account, except as provided in section 6 ofthis chapter. (4) All administrative costs of each alternative program shall bepaid from the earnings on that program. (5) A valuation of each member's account must be completed asof: (A) the last day of each quarter; or (B) a time that the board may specify by rule. (b) A member shall direct the allocation of the amount credited tothe member among the available alternative investment funds,subject to the following conditions: (1) A member may make a selection or change an existingselection under rules established by the PERF board. The PERFboard shall allow a member to make a selection or change anyexisting selection at least once each quarter. (2) The PERF board shall implement the member's selectionbeginning on the first day of the next calendar quarter thatbegins at least thirty (30) days after the selection is received bythe PERF board or on an alternate date established by the rulesof the board. This date is the effective date of the member'sselection. (3) A member may select any combination of the availableinvestment funds, in ten percent (10%) increments or smallerincrements that may be established by the rules of the board. (4) A member's selection remains in effect until a new selectionis made. (5) On the effective date of a member's selection, the boardshall reallocate the member's existing balance or balances inaccordance with the member's direction, based on the marketvalue on the effective date. (6) If a member does not make an investment selection of thealternative investment programs, the member's account shall beinvested in the PERF board's general investment fund. (7) All contributions to the member's account shall be allocatedas of the last day of the quarter in which the contributions arereceived or at an alternate time established by the rules of theboard in accordance with the member's most recent effective
direction. The PERF board shall not reallocate the member'saccount at any other time. (c) When a member transfers the amount credited to the memberfrom one (1) alternative investment program to another alternativeinvestment program, the amount credited to the member shall bevalued at the market value of the member's investment, as of the daybefore the effective date of the member's selection or at an alternatetime established by the rules of the board. When a member retires,becomes disabled, dies, or withdraws from the fund, the amountcredited to the member shall be the market value of the member'sinvestment as of the last day of the quarter preceding the member'sdistribution or annuitization at retirement, disability, death, orwithdrawal, plus contributions received after that date or at analternate time established by the rules of the board. (d) The PERF board shall determine the value of each alternativeprogram in the defined contribution fund, as of the last day of eachcalendar quarter, as follows: (1) The market value shall exclude the employer contributionsand employee contributions received during the quarter endingon the current allocation date. (2) The market value as of the immediately preceding quarterend date shall include the employer contributions and employeecontributions received during that preceding quarter. (3) The market value as of the immediately preceding quarterend date shall exclude benefits paid from the fund during thequarter ending on the current quarter end date. As added by P.L.6-1989, SEC.1. Amended by P.L.205-1999, SEC.4;P.L.195-1999, SEC.3; P.L.118-2000, SEC.1; P.L.13-2001, SEC.4;P.L.30-2009, SEC.1; P.L.165-2009, SEC.1; P.L.1-2010, SEC.1;P.L.115-2010, SEC.1.
IC 2-3.5-5-4 Participant contributions to the fund Sec. 4. Each participant shall make contributions to the definedcontribution fund of five percent (5%) of each payment of salaryreceived for services after June 30, 1989. Contributions shall bededucted from the salary of each participant by the auditor of state.Contributions shall be credited to the fund on the June 30 followingtheir deduction. As added by P.L.6-1989, SEC.1.
IC 2-3.5-5-5 Repealed (Repealed by P.L.43-2007, SEC.13.)
IC 2-3.5-5-5.5 Contributions made to defined contribution fund after 12/31/08;"salary" defined; time for making contributions; determination ofcontribution percentage Sec. 5.5. (a) This section applies to contributions to the defined
contribution fund made by the state after December 31, 2008. (b) This subsection applies after December 31, 2008.Notwithstanding IC 2-3.5-2-10, as used in this section, "salary"means the total of the following amounts paid to a participant by thestate for performing legislative services in the year in which theamounts are paid, determined without regard to any salary reductionagreement established under Section 125 or Section 457 of theInternal Revenue Code: (1) Salary. (2) Business per diem allowance and allowances paid in lieu ofthe submission of claims for reimbursement (but excluding anyallowances paid for mileage). (3) Allowances paid to officers of the house of representativesand the senate. (c) This subsection applies after December 31, 2008. The stateshall make a contribution to the defined contribution fund on behalfof each participant on June 30 of each year. The amount of thecontribution is determined by multiplying the participant's salary forthat year by a percentage determined for that year by the PERF boardunder subsection (d). (d) This subsection applies after December 31, 2008. The PERFboard shall use the following rates in determining the percentagedescribed in subsection (c): (1) The rate of the state's normal contribution for its employeesto PERF, as determined under IC 5-10.2-2-11. (2) The rate at which the state makes contributions to annuitysavings accounts on behalf of state employees who are membersof PERF, as specified in IC 5-10.2-3-2 and IC 5-10.3-7-9. (e) This subsection applies after December 31, 2008. The budgetagency shall confirm the percentage determined by the PERF board.The percentage confirmed by the budget agency may not exceed thetotal contribution rate paid that year by the state to PERF for stateemployees. As added by P.L.43-2007, SEC.3.
IC 2-3.5-5-6 Termination of service; withdrawal from the fund Sec. 6. (a) A participant who terminates service as a member ofthe general assembly is entitled to withdraw both the participant'semployee contribution account and employer contribution accountfrom the defined contribution fund. The withdrawal shall be madenot later than the required beginning date under the Internal RevenueCode. The amount available for the withdrawal shall be the fairmarket value of the participant's accounts on the last day of thequarter preceding the date of withdrawal plus employee contributionsdeducted and employer contributions made since the last day of thequarter preceding the date of withdrawal. (b) The withdrawal amount shall be paid in a lump sum, a partiallump sum, a monthly annuity as purchased by the PERF board withthe remaining amount, or a series of monthly installment payments
over sixty (60), one hundred twenty (120), or one hundred eighty(180) months, as elected by the participant. The forms of annuity andinstallments shall be established by the PERF board by rule, inconsultation with the system's actuary. The PERF board shall giveparticipants information on these forms of payments and the effectsof various dates of withdrawal. As added by P.L.6-1989, SEC.1. Amended by P.L.195-1999, SEC.4and P.L.205-1999, SEC.5; P.L.13-2001, SEC.5.
IC 2-3.5-5-7 Death of participant; designated beneficiaries; surviving spouse;dependent children Sec. 7. (a) This section applies to a participant who dies while amember of the general assembly, or who dies after terminatingservice as a member of the general assembly and prior towithdrawing the participant's account from the defined contributionfund. The participant's employee contribution account and theparticipant's employer contribution account shall be paid to abeneficiary or the beneficiaries designated on a form prescribed bythe board. The amount paid shall be the fair market value of theparticipant's accounts on the last day of the quarter preceding thedate of payment, plus employee contributions deducted and employercontributions made since the last day of the quarter preceding thedate of payment. If there is no properly designated beneficiary, or ifno beneficiary survives the participant, the participant's accountsshall be paid to: (1) the surviving spouse of the participant; (2) if there is no surviving spouse, a surviving dependent or thesurviving dependents of the participant; or (3) if there is no surviving spouse and no surviving dependent,the estate of the participant. (b) Amounts payable under this section shall be paid in a lumpsum, a partial lump sum, a monthly annuity as purchased by thePERF board with the remaining amount, or a series of monthlyinstallment payments over sixty (60) months, as elected by therecipient. The forms of annuity and installments available shall beestablished by the PERF board by rule, in consultation with thesystem's actuary. As added by P.L.6-1989, SEC.1. Amended by P.L.195-1999, SEC.5and P.L.205-1999, SEC.6; P.L.13-2001, SEC.6.
IC 2-3.5-5-8 Biennial appropriation Sec. 8. (a) For purposes of this chapter, there is appropriated foreach biennium the following sums of money: (1) From the state general fund, the amount required to equalthe contributions specified in: (A) section 5 of this chapter (before its repeal on January 1,2009); or (B) after December 31, 2008, section 5.5 of this chapter. (2) From the state general fund, the amount required foradministration of this chapter. (b) The biennial appropriation provided in this section shall becredited to the defined contribution fund annually in the month ofJuly of each year of the biennium, based on the amounts specified insubsection (a). As added by P.L.6-1989, SEC.1. Amended by P.L.43-2007, SEC.4.
IC 2-3.5-5-9 Exemptions; criminal taking of state property Sec. 9. All benefits and assets in the defined contribution fund areexempt from levy, sale, garnishment, attachment, or other legalprocess. However, a participant's benefits may be transferred toreimburse the state for loss resulting from the participant's criminaltaking of state property if the board receives adequate proof of theloss. The loss must be proven by conviction of a felony ormisdemeanor. As added by P.L.6-1989, SEC.1.
IC 2-3.5-5-10 Assignment of benefits Sec. 10. A participant or beneficiary may not assign any paymentunder this chapter except for: (1) premiums on a life, hospitalization, surgical, or medicalgroup insurance plan maintained in part by a state agency; and (2) dues to an association that proves to the board's satisfactionthat the association has as members at least twenty percent(20%) of the retired participants in the legislators' definedbenefit plan. As added by P.L.6-1989, SEC.1.
IC 2-3.5-5-11 Loans Sec. 11. Before January 1, 2002, the PERF board shall adopt rulesestablishing procedures for making loans to a participant from theparticipant's employee contribution account and employercontribution account within the defined contribution fund. Rulesadopted under this section must comply with the requirements ofSection 72(p) of the Internal Revenue Code and must apply to eachparticipant in the plan, regardless of whether the participant isserving in the general assembly at the time of the loan. A loan madein accordance with rules adopted under this section is not consideredthe receipt of retirement benefits for purposes of IC 5-10-8-1. As added by P.L.184-2001, SEC.1.
IC 2-3.5-5-12 Rollover distributions Sec. 12. (a) To the extent permitted by the Internal Revenue Codeand the applicable regulations, the fund may accept, on behalf of anyactive member, a rollover distribution from any of the following: (1) A qualified plan described in Section 401(a) or Section403(a) of the Internal Revenue Code. (2) An annuity contract or account described in Section 403(b)of the Internal Revenue Code. (3) An eligible plan that is maintained by a state, a politicalsubdivision of a state, or an agency or instrumentality of a stateor political subdivision of a state under Section 457(b) of theInternal Revenue Code. (4) An individual retirement account or annuity described inSection 408(a) or Section 408(b) of the Internal Revenue Code. (b) Any amounts rolled over under subsection (a) must beaccounted for in a "rollover account" that is separate from themember's account. (c) A member may direct the investment of the member's rolloveraccount into any alternative investment option that the board maymake available to the member's rollover account under section 3 ofthis chapter. (d) A member may withdraw the member's rollover account fromthe fund in a lump sum at any time before retirement. At retirement,the member may withdraw the member's rollover account inaccordance with the retirement options that are available for themember's account. As added by P.L.61-2002, SEC.1.
IC 2-3.5-5 Chapter 5. Legislators' Defined Contribution Plan
IC 2-3.5-5-1 Application Sec. 1. This chapter applies to: (1) each member of the general assembly who is serving onApril 30, 1989, and who files an election under IC 2-3.5-3-1(b);and (2) each member of the general assembly who is elected orappointed after April 30, 1989. As added by P.L.6-1989, SEC.1.
IC 2-3.5-5-2 Defined contribution fund; content Sec. 2. (a) The defined contribution fund consists of thefollowing: (1) Each participant's contributions to the fund. (2) Contributions made to the fund on behalf of the participantsunder: (A) section 5 of this chapter (before its repeal on January 1,2009); or (B) after December 31, 2008, section 5.5 of this chapter. (3) Amounts transferred to the fund under subsections (b) and(c). (4) All gifts, grants, devises, and bequests in money, property,or other form made to the fund. (5) All earnings on investments or on deposits of the funds. (6) All contributions or payments to the fund made in a mannerprovided by the general assembly. (b) On any July 1 following the date a participant beginsparticipation in the defined contribution fund, if the participant hasbeen before that date a member of PERF, any amount in the PERFannuity savings account credited to the participant may at theparticipant's irrevocable option be transferred one (1) time to thedefined contribution fund for the benefit of the participant. At noother time, if the participant continues or begins to participate inPERF, may such a transfer be made. (c) On any July 1 following the date a participant beginsparticipation in the defined contribution fund, if the participant hasbeen before that date a member of TRF, the amount in the TRFannuity savings account credited to the participant may at theparticipant's irrevocable election be transferred one (1) time to thedefined contribution fund for the benefit of the participant. At noother time, if the participant continues or begins to participate inTRF, may the transfer be made. (d) Each participant shall be credited individually with: (1) the participant's contributions to the fund under section 4 ofthis chapter, which shall be credited to the participant's account; (2) the contributions made to the fund on behalf of the
participant under: (A) section 5 of this chapter (before its repeal on January 1,2009); or (B) after December 31, 2008, section 5.5 of this chapter; which shall be credited to the participant's account; (3) the amount transferred to the fund under subsections (b) and(c), which shall be credited to the participant's account; and (4) the net earnings on the participant's accounts, determinedunder section 3 of this chapter. As added by P.L.6-1989, SEC.1. Amended by P.L.195-1999, SEC.2and P.L.205-1999, SEC.3; P.L.43-2007, SEC.2.
IC 2-3.5-5-3 Version a Alternative investment programs Note: This version of section effective until 7-1-2010. See alsofollowing version of this section, effective 7-1-2010. Sec. 3. (a) The PERF board shall establish alternative investmentprograms within the fund, based on the following requirements: (1) The PERF board shall maintain at least one (1) alternativeinvestment program that is an indexed stock fund, one (1)alternative investment program that is a bond fund, and one (1)alternative investment program that is a stable value fund. (2) The programs should represent a variety of investmentobjectives. (3) The programs may not permit a member to withdraw moneyfrom the member's account, except as provided in section 6 ofthis chapter. (4) All administrative costs of each alternative program shall bepaid from the earnings on that program. (5) A valuation of each member's account must be completed asof: (A) the last day of each quarter; or (B) a time that the board may specify by rule. (b) A member shall direct the allocation of the amount credited tothe member among the available alternative investment funds,subject to the following conditions: (1) A member may make a selection or change an existingselection under rules established by the PERF board. The PERFboard shall allow a member to make a selection or change anyexisting selection at least once each quarter. (2) The PERF board shall implement the member's selectionbeginning on the first day of the next calendar quarter thatbegins at least thirty (30) days after the selection is received bythe PERF board or on an alternate date established by the rulesof the board. This date is the effective date of the member'sselection. (3) A member may select any combination of the availableinvestment funds, in ten percent (10%) increments or smallerincrements that may be established by the rules of the board. (4) A member's selection remains in effect until a new selection
is made. (5) On the effective date of a member's selection, the boardshall reallocate the member's existing balance or balances inaccordance with the member's direction, based on the marketvalue on the effective date. (6) If a member does not make an investment selection of thealternative investment programs, the member's account shall beinvested in the PERF board's general investment fund. (7) All contributions to the member's account shall be allocatedas of the last day of the quarter in which the contributions arereceived or at an alternate time established by the rules of theboard in accordance with the member's most recent effectivedirection. The PERF board shall not reallocate the member'saccount at any other time. (c) When a member transfers the amount credited to the memberfrom one (1) alternative investment program to another alternativeinvestment program, the amount credited to the member shall bevalued at the market value of the member's investment, as of the daybefore the effective date of the member's selection or at an alternatetime established by the rules of the board. When a member retires,becomes disabled, dies, or withdraws from the fund, the amountcredited to the member shall be the market value of the member'sinvestment as of the last day of the quarter preceding the member'sdistribution or annuitization at retirement, disability, death, orwithdrawal, plus contributions received after that date or at analternate time established by the rules of the board. (d) The PERF board shall determine the value of each alternativeprogram in the defined contribution fund, as of the last day of eachcalendar quarter, as follows: (1) The market value shall exclude the employer contributionsand employee contributions received during the quarter endingon the current allocation date. (2) The market value as of the immediately preceding quarterend date shall include the employer contributions and employeecontributions received during that preceding quarter. (3) The market value as of the immediately preceding quarterend date shall exclude benefits paid from the fund during thequarter ending on the current quarter end date. As added by P.L.6-1989, SEC.1. Amended by P.L.205-1999, SEC.4;P.L.195-1999, SEC.3; P.L.118-2000, SEC.1; P.L.13-2001, SEC.4;P.L.30-2009, SEC.1; P.L.165-2009, SEC.1; P.L.1-2010, SEC.1.
IC 2-3.5-5-3 Version b Alternative investment programs Note: This version of section effective 7-1-2010. See alsopreceding version of this section, effective until 7-1-2010. Sec. 3. (a) The PERF board shall establish alternative investmentprograms within the fund, based on the following requirements: (1) The PERF board shall maintain at least one (1) alternativeinvestment program that is an indexed stock fund, one (1)
alternative investment program that is a bond fund, and one (1)alternative investment program that is a stable value fund. ThePERF board may maintain one (1) or more alternativeinvestment programs that: (A) invest in one (1) or more commingled or pooled fundsthat consist in part or entirely of mortgages that qualify asfive star mortgages under the program established byIC 24-5-23.6; or (B) otherwise invest in mortgages that qualify as five starmortgages under the program established by IC 24-5-23.6. (2) The programs should represent a variety of investmentobjectives. (3) The programs may not permit a member to withdraw moneyfrom the member's account, except as provided in section 6 ofthis chapter. (4) All administrative costs of each alternative program shall bepaid from the earnings on that program. (5) A valuation of each member's account must be completed asof: (A) the last day of each quarter; or (B) a time that the board may specify by rule. (b) A member shall direct the allocation of the amount credited tothe member among the available alternative investment funds,subject to the following conditions: (1) A member may make a selection or change an existingselection under rules established by the PERF board. The PERFboard shall allow a member to make a selection or change anyexisting selection at least once each quarter. (2) The PERF board shall implement the member's selectionbeginning on the first day of the next calendar quarter thatbegins at least thirty (30) days after the selection is received bythe PERF board or on an alternate date established by the rulesof the board. This date is the effective date of the member'sselection. (3) A member may select any combination of the availableinvestment funds, in ten percent (10%) increments or smallerincrements that may be established by the rules of the board. (4) A member's selection remains in effect until a new selectionis made. (5) On the effective date of a member's selection, the boardshall reallocate the member's existing balance or balances inaccordance with the member's direction, based on the marketvalue on the effective date. (6) If a member does not make an investment selection of thealternative investment programs, the member's account shall beinvested in the PERF board's general investment fund. (7) All contributions to the member's account shall be allocatedas of the last day of the quarter in which the contributions arereceived or at an alternate time established by the rules of theboard in accordance with the member's most recent effective
direction. The PERF board shall not reallocate the member'saccount at any other time. (c) When a member transfers the amount credited to the memberfrom one (1) alternative investment program to another alternativeinvestment program, the amount credited to the member shall bevalued at the market value of the member's investment, as of the daybefore the effective date of the member's selection or at an alternatetime established by the rules of the board. When a member retires,becomes disabled, dies, or withdraws from the fund, the amountcredited to the member shall be the market value of the member'sinvestment as of the last day of the quarter preceding the member'sdistribution or annuitization at retirement, disability, death, orwithdrawal, plus contributions received after that date or at analternate time established by the rules of the board. (d) The PERF board shall determine the value of each alternativeprogram in the defined contribution fund, as of the last day of eachcalendar quarter, as follows: (1) The market value shall exclude the employer contributionsand employee contributions received during the quarter endingon the current allocation date. (2) The market value as of the immediately preceding quarterend date shall include the employer contributions and employeecontributions received during that preceding quarter. (3) The market value as of the immediately preceding quarterend date shall exclude benefits paid from the fund during thequarter ending on the current quarter end date. As added by P.L.6-1989, SEC.1. Amended by P.L.205-1999, SEC.4;P.L.195-1999, SEC.3; P.L.118-2000, SEC.1; P.L.13-2001, SEC.4;P.L.30-2009, SEC.1; P.L.165-2009, SEC.1; P.L.1-2010, SEC.1;P.L.115-2010, SEC.1.
IC 2-3.5-5-4 Participant contributions to the fund Sec. 4. Each participant shall make contributions to the definedcontribution fund of five percent (5%) of each payment of salaryreceived for services after June 30, 1989. Contributions shall bededucted from the salary of each participant by the auditor of state.Contributions shall be credited to the fund on the June 30 followingtheir deduction. As added by P.L.6-1989, SEC.1.
IC 2-3.5-5-5 Repealed (Repealed by P.L.43-2007, SEC.13.)
IC 2-3.5-5-5.5 Contributions made to defined contribution fund after 12/31/08;"salary" defined; time for making contributions; determination ofcontribution percentage Sec. 5.5. (a) This section applies to contributions to the defined
contribution fund made by the state after December 31, 2008. (b) This subsection applies after December 31, 2008.Notwithstanding IC 2-3.5-2-10, as used in this section, "salary"means the total of the following amounts paid to a participant by thestate for performing legislative services in the year in which theamounts are paid, determined without regard to any salary reductionagreement established under Section 125 or Section 457 of theInternal Revenue Code: (1) Salary. (2) Business per diem allowance and allowances paid in lieu ofthe submission of claims for reimbursement (but excluding anyallowances paid for mileage). (3) Allowances paid to officers of the house of representativesand the senate. (c) This subsection applies after December 31, 2008. The stateshall make a contribution to the defined contribution fund on behalfof each participant on June 30 of each year. The amount of thecontribution is determined by multiplying the participant's salary forthat year by a percentage determined for that year by the PERF boardunder subsection (d). (d) This subsection applies after December 31, 2008. The PERFboard shall use the following rates in determining the percentagedescribed in subsection (c): (1) The rate of the state's normal contribution for its employeesto PERF, as determined under IC 5-10.2-2-11. (2) The rate at which the state makes contributions to annuitysavings accounts on behalf of state employees who are membersof PERF, as specified in IC 5-10.2-3-2 and IC 5-10.3-7-9. (e) This subsection applies after December 31, 2008. The budgetagency shall confirm the percentage determined by the PERF board.The percentage confirmed by the budget agency may not exceed thetotal contribution rate paid that year by the state to PERF for stateemployees. As added by P.L.43-2007, SEC.3.
IC 2-3.5-5-6 Termination of service; withdrawal from the fund Sec. 6. (a) A participant who terminates service as a member ofthe general assembly is entitled to withdraw both the participant'semployee contribution account and employer contribution accountfrom the defined contribution fund. The withdrawal shall be madenot later than the required beginning date under the Internal RevenueCode. The amount available for the withdrawal shall be the fairmarket value of the participant's accounts on the last day of thequarter preceding the date of withdrawal plus employee contributionsdeducted and employer contributions made since the last day of thequarter preceding the date of withdrawal. (b) The withdrawal amount shall be paid in a lump sum, a partiallump sum, a monthly annuity as purchased by the PERF board withthe remaining amount, or a series of monthly installment payments
over sixty (60), one hundred twenty (120), or one hundred eighty(180) months, as elected by the participant. The forms of annuity andinstallments shall be established by the PERF board by rule, inconsultation with the system's actuary. The PERF board shall giveparticipants information on these forms of payments and the effectsof various dates of withdrawal. As added by P.L.6-1989, SEC.1. Amended by P.L.195-1999, SEC.4and P.L.205-1999, SEC.5; P.L.13-2001, SEC.5.
IC 2-3.5-5-7 Death of participant; designated beneficiaries; surviving spouse;dependent children Sec. 7. (a) This section applies to a participant who dies while amember of the general assembly, or who dies after terminatingservice as a member of the general assembly and prior towithdrawing the participant's account from the defined contributionfund. The participant's employee contribution account and theparticipant's employer contribution account shall be paid to abeneficiary or the beneficiaries designated on a form prescribed bythe board. The amount paid shall be the fair market value of theparticipant's accounts on the last day of the quarter preceding thedate of payment, plus employee contributions deducted and employercontributions made since the last day of the quarter preceding thedate of payment. If there is no properly designated beneficiary, or ifno beneficiary survives the participant, the participant's accountsshall be paid to: (1) the surviving spouse of the participant; (2) if there is no surviving spouse, a surviving dependent or thesurviving dependents of the participant; or (3) if there is no surviving spouse and no surviving dependent,the estate of the participant. (b) Amounts payable under this section shall be paid in a lumpsum, a partial lump sum, a monthly annuity as purchased by thePERF board with the remaining amount, or a series of monthlyinstallment payments over sixty (60) months, as elected by therecipient. The forms of annuity and installments available shall beestablished by the PERF board by rule, in consultation with thesystem's actuary. As added by P.L.6-1989, SEC.1. Amended by P.L.195-1999, SEC.5and P.L.205-1999, SEC.6; P.L.13-2001, SEC.6.
IC 2-3.5-5-8 Biennial appropriation Sec. 8. (a) For purposes of this chapter, there is appropriated foreach biennium the following sums of money: (1) From the state general fund, the amount required to equalthe contributions specified in: (A) section 5 of this chapter (before its repeal on January 1,2009); or (B) after December 31, 2008, section 5.5 of this chapter. (2) From the state general fund, the amount required foradministration of this chapter. (b) The biennial appropriation provided in this section shall becredited to the defined contribution fund annually in the month ofJuly of each year of the biennium, based on the amounts specified insubsection (a). As added by P.L.6-1989, SEC.1. Amended by P.L.43-2007, SEC.4.
IC 2-3.5-5-9 Exemptions; criminal taking of state property Sec. 9. All benefits and assets in the defined contribution fund areexempt from levy, sale, garnishment, attachment, or other legalprocess. However, a participant's benefits may be transferred toreimburse the state for loss resulting from the participant's criminaltaking of state property if the board receives adequate proof of theloss. The loss must be proven by conviction of a felony ormisdemeanor. As added by P.L.6-1989, SEC.1.
IC 2-3.5-5-10 Assignment of benefits Sec. 10. A participant or beneficiary may not assign any paymentunder this chapter except for: (1) premiums on a life, hospitalization, surgical, or medicalgroup insurance plan maintained in part by a state agency; and (2) dues to an association that proves to the board's satisfactionthat the association has as members at least twenty percent(20%) of the retired participants in the legislators' definedbenefit plan. As added by P.L.6-1989, SEC.1.
IC 2-3.5-5-11 Loans Sec. 11. Before January 1, 2002, the PERF board shall adopt rulesestablishing procedures for making loans to a participant from theparticipant's employee contribution account and employercontribution account within the defined contribution fund. Rulesadopted under this section must comply with the requirements ofSection 72(p) of the Internal Revenue Code and must apply to eachparticipant in the plan, regardless of whether the participant isserving in the general assembly at the time of the loan. A loan madein accordance with rules adopted under this section is not consideredthe receipt of retirement benefits for purposes of IC 5-10-8-1. As added by P.L.184-2001, SEC.1.
IC 2-3.5-5-12 Rollover distributions Sec. 12. (a) To the extent permitted by the Internal Revenue Codeand the applicable regulations, the fund may accept, on behalf of anyactive member, a rollover distribution from any of the following: (1) A qualified plan described in Section 401(a) or Section403(a) of the Internal Revenue Code. (2) An annuity contract or account described in Section 403(b)of the Internal Revenue Code. (3) An eligible plan that is maintained by a state, a politicalsubdivision of a state, or an agency or instrumentality of a stateor political subdivision of a state under Section 457(b) of theInternal Revenue Code. (4) An individual retirement account or annuity described inSection 408(a) or Section 408(b) of the Internal Revenue Code. (b) Any amounts rolled over under subsection (a) must beaccounted for in a "rollover account" that is separate from themember's account. (c) A member may direct the investment of the member's rolloveraccount into any alternative investment option that the board maymake available to the member's rollover account under section 3 ofthis chapter. (d) A member may withdraw the member's rollover account fromthe fund in a lump sum at any time before retirement. At retirement,the member may withdraw the member's rollover account inaccordance with the retirement options that are available for themember's account. As added by P.L.61-2002, SEC.1.
