IC 5-10.2-3
Chapter 3. Creditable Service; Contributions; Withdrawals; Death
Settlements
IC 5-10.2-3-1 Creditable service
Sec. 1. (a) Except as provided in IC 5-10.2-4-8(d), each member's
creditable service, for the purpose of computing benefits under this
article, consists of all service in a position covered by a retirement
fund plus all other service for which the retirement fund law gives
credit.
(b) No member may be required to pay any contributions for
service before the member is covered by this article as a condition
precedent to receiving benefits under this article. However, the
member must furnish proof of the service to the board of the fund
under which the member claims service.
(c) A member who has past service as an employee of the state or
a participating political subdivision in a position which was not
covered by the retirement fund is entitled to credit for this service if
the position becomes covered before January 1, 1985, by the Indiana
state teachers' retirement fund, the public employees' retirement fund,
or the retirement fund for the state board of accounts and if the
member submits proof of the service to the secretary of the fund in
which the member claims service.
(d) A member who has past service in a position that was not
covered by the retirement fund is entitled to credit for this service if
the position becomes covered after December 31, 1984, by a fund
while the member holds that position or another position with the
same employer and if the member submits proof of the service to the
director of the fund in which the member claims service.
(e) The proof required by this section must:
(1) be submitted in a form approved by the director;
(2) contain dates and nature of service and other information
required by the director; and
(3) be certified by the governing body or its agent.
(f) A member who is a state employee is entitled to service credit
for the time the member is receiving disability benefits under a
disability plan established under IC 5-10-8-7.
(g) If a participant in the legislators' defined benefit plan does not
become entitled to a benefit from that plan, the PERF board or the
TRF board shall include the participant's service in the general
assembly in the determination of eligibility for, and computation of,
benefits under PERF or TRF at the time the participant would be
eligible to receive benefits under PERF or TRF. After benefits
commence under PERF or TRF with the general assembly service
included, the participant's general assembly service may not be used
for the computation of benefits under IC 2-3.5-4.
(h) A member may receive service credit for all or a part of the
member's creditable service in another governmental retirement plan
under IC 5-10.3-7-4.5 and IC 5-10.4-4-4. A member may not receive
credit for service for which the member receives service credit in
another retirement plan maintained by a state, a political subdivision,
or an instrumentality of the state for service that PERF or TRF would
otherwise give credit.
(i) A member may use all or a part of the member's creditable
service under PERF or TRF in another governmental retirement plan
under the terms of the other plan. Creditable service used under the
other governmental retirement plan may not be used in PERF or
TRF. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.28-1984,
SEC.1; P.L.5-1990, SEC.5; P.L.43-1991, SEC.1; P.L.22-1998,
SEC.3; P.L.2-2006, SEC.23; P.L.72-2007, SEC.2; P.L.1-2009,
SEC.17.
IC 5-10.2-3-1.2 Additional service credit purchase
Sec. 1.2. (a) A member who has earned at least ten (10) years of
service in a position covered by PERF, TRF, or a combination of the
two (2) funds may purchase one (1) year of service credit for each
five (5) years of service that the member has completed in a position
covered by PERF or TRF.
(b) Before a member retires, a member who desires to purchase
additional service credit under subsection (a) must contribute to the
fund as follows:
(1) Contributions that are equal to the product of the following:
(A) The member's salary at the time the member actually
makes a contribution for the service credit.
(B) A rate, determined by the actuary for the fund, that is
based on the age of the member at the time the member
actually makes a contribution for the service credit and
computed to result in a contribution amount that
approximates the actuarial present value of the benefit
attributable to the service credit purchased.
(C) The number of years of service credit the member
intends to purchase.
(2) Contributions for any accrued interest, at a rate determined
by the actuary for the fund, for the period from the member's
initial membership in the fund to the date payment is made by
the member.
(c) The following apply to the purchase of service credit under
this section:
(1) The board may allow a member to make periodic payments
of the contributions required for the purchase of service credit.
The board shall determine the length of the period during which
the payments must be made.
(2) The board may deny an application for the purchase of
service credit if the purchase would exceed the limitations
under Section 415 of the Internal Revenue Code.
(3) A member may not claim the service credit for the purpose
of computing benefits unless the member has made all
payments required for the purchase of the service credit.
(4) To the extent permitted by the Internal Revenue Code and
applicable regulations, a member may purchase service credit
under this section by a rollover distribution to the fund from any
of the following:
(A) A qualified plan described in Section 401(a) or Section
403(a) of the Internal Revenue Code.
(B) An annuity contract or account described in Section
403(b) of the Internal Revenue Code.
(C) An eligible plan that is maintained by a state, a political
subdivision of a state, or an agency or instrumentality of a
state or political subdivision of a state under Section 457(b)
of the Internal Revenue Code.
(D) An individual retirement account or annuity described in
Section 408(a) or Section 408(b) of the Internal Revenue
Code.
(d) A member who terminates employment before satisfying the
eligibility requirements necessary to receive a monthly benefit may
withdraw the purchase amount, plus accumulated interest, after
submitting a properly completed application for a refund to the fund.
However, the member must also apply for a refund of the member's
entire annuity savings account under section 6 or 6.5 of this chapter
to be eligible for a refund of the member's rollover amount.
(e) For a member who is a state employee, the employer may pay
all or a part of the member contributions required for the purchase of
service credit under this section. In that event, the actuary shall
determine the amortization, and subsections (c)(1), (c)(3), (c)(4), and
(d) do not apply.
(f) For a member who is an employee of a participating political
subdivision, the employer may adopt an ordinance to pay all or a part
of the member contributions required for the purchase of service
credit under this section. In that event, the actuary shall determine
the amortization, and subsections (c)(1), (c)(3), (c)(4), and (d) do not
apply. As added by P.L.61-2002, SEC.3. Amended by P.L.115-2008, SEC.6.
IC 5-10.2-3-2 Members' contributions; employers picking up
Sec. 2. (a) Subject to IC 5-10.2-2-1.5, as used in this section,
"compensation" means:
(1) the basic salary earned by and paid to the member; plus
(2) the amount that would have been a part of the basic salary
earned and paid except for the member's salary reduction
agreement established under Section 125, 403(b), or 457 of the
Internal Revenue Code.
(b) Except in cases where:
(1) the contribution is made on behalf of the member; or
(2) a retired member of the Indiana state teachers' retirement
fund may not make contributions during a period of
reemployment as provided in IC 5-10.2-4-8(d);
each member shall, as a condition of employment, contribute to the
fund three percent (3%) of the member's compensation.
(c) Except as provided in IC 5-10.2-4-8(d), a member of a fund
may make contributions to the member's annuity savings account in
addition to the contributions required under subsection (b). The total
amount of contributions that may be made to a member's annuity
savings account with respect to a payroll period under this subsection
may not exceed ten percent (10%) of the member's compensation for
that payroll period. The contributions made under this subsection
may be picked-up and paid by an employer as provided in subsection
(d).
(d) In compliance with rules adopted by each board, an employer,
under Section 414(h)(2) of the Internal Revenue Code, may pick-up
and pay the contributions under subsection (c), subject to approval
of the board and to the board's receipt of a favorable private letter
ruling from the Internal Revenue Service. The employer shall reduce
the member's compensation by an amount equal to the amount of the
member's contributions under subsection (c) that are picked-up by
the employer. Each board shall by rule establish the procedural
requirements for employers to carry out the pick-up in compliance
with Section 414(h)(2) of the Internal Revenue Code.
(e) A member's contributions and interest credits belong to the
member and do not belong to the state or political subdivision. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985,
SEC.8; P.L.55-1989, SEC.13; P.L.53-2000, SEC.1; P.L.246-2001,
SEC.4; P.L.72-2007, SEC.3; P.L.1-2009, SEC.18.
IC 5-10.2-3-3 Deduction of contributions
Sec. 3. (a) This section does not apply to a member of the Indiana
state teachers' retirement fund who is reemployed more than thirty
(30) days after the member's retirement in a position covered by the
Indiana state teachers' retirement fund.
(b) Members' contributions, other than members' contributions
paid on behalf of a member, shall be deducted from their
compensation even if the net compensation to the member is less
than the statutory minimum.
(c) The payment of a member's compensation minus the deduction
constitutes a complete discharge of all claims for services rendered
by the member during the period covered by the payment, except the
claim for benefits under this article. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.41-1983,
SEC.5; P.L.35-1985, SEC.9; P.L.72-2007, SEC.4; P.L.76-2008,
SEC.1.
IC 5-10.2-3-4
Repealed
(Repealed by P.L.46-1988, SEC.14.) IC 5-10.2-3-5 Suspension of membership
Sec. 5. (a) A member who is not eligible for retirement or
disability retirement may suspend the member's membership if the
member terminates employment.
(b) After five (5) continuous years in which the member performs
no service, the member's membership shall be automatically
suspended by the board unless the member has vested status.
(c) The board may suspend a member's membership in the fund if:
(1) the member has not performed any service in a covered
position during the past two (2) years;
(2) the member has not attained vested status in the fund; and
(3) the value of the member's annuity savings account is not
more than one thousand dollars ($1,000).
(d) On resuming service the member may claim as creditable
service the period of employment before the suspension of
membership, but only to the extent that the same period of
employment is not being used by another governmental plan for
purposes of the member's benefit in the other governmental plan. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.22-1998,
SEC.4; P.L.195-1999, SEC.11; P.L.165-2009, SEC.5.
IC 5-10.2-3-6 Withdrawal of contributions
Sec. 6. (a) After a member suspends his membership, he is
entitled to withdraw in a lump sum the amount of his contributions
plus interest credited to him.
(b) Except as provided in subsection (c), if the member does not
claim his moneys within five (5) years after the suspension, the
moneys shall be credited to the retirement fund. Any reasonable costs
of locating the member or the member's beneficiary may be charged
against the member's or the beneficiary's money. The fund shall
retain the moneys until the member claims them, with no further
interest credits to the member after the moneys are credited to the
fund.
(c) If a member suspends membership in the fund because the
member is no longer in a covered position but does not separate from
employment with the member's employer, money shall be credited to
the retirement fund only if the member does not claim the member's
money within forty-five (45) years after the suspension.
(d) If a member is suspended under section (5)(c) of this chapter,
the board shall pay the member's annuity savings account in a lump
sum. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.25-1994,
SEC.3; P.L.2-1995, SEC.15; P.L.195-1999, SEC.12.
IC 5-10.2-3-6.2 Withdrawal of contributions to purchase creditable service in
another governmental retirement plan
Sec. 6.2. (a) This section applies to a member of the Indiana state
teachers' retirement fund.
(b) A member who:
(1) has attained vested status in the fund;
(2) has terminated employment;
(3) has not begun receiving benefits; and
(4) is transferring creditable service earned under TRF to
another governmental retirement plan under section 1(i) of this
chapter;
may suspend the member's membership and withdraw the member's
annuity savings account to purchase creditable service in the other
governmental retirement plan. As added by P.L.61-2002, SEC.4. Amended by P.L.115-2008, SEC.7.
IC 5-10.2-3-6.3 Suspension of membership; transfer of amount in annuity savings
account to purchase service credit in sheriff's pension trust
Sec. 6.3. (a) Notwithstanding any other provision in this article,
IC 5-10.3, or IC 5-10.4, a member who:
(1) has not attained vested status in the fund;
(2) is not an active participant in the fund; and
(3) is an active participant in a retirement plan established under
IC 36-8-10-12;
may suspend membership in the fund and transfer the entire amount
in the member's annuity savings account in accordance with the
member's purchase of service credit under IC 36-8-10-12.5.
(b) A member who makes a transfer under IC 36-8-10-12.5 from
the member's annuity savings account shall provide notice of the
transfer on a form provided by the board.
(c) A transfer under IC 36-8-10-12.5 is irrevocable.
(d) A member who makes a transfer under this section waives all
credit for service in the fund. As added by P.L.98-2009, SEC.1.
IC 5-10.2-3-6.5 Withdrawal of annuity savings account before retirement
Sec. 6.5. (a) A member who meets all of the following
requirements may elect to withdraw the entire amount in the
member's annuity savings account before the member is eligible to
do so at retirement under IC 5-10.2-4-2:
(1) The member has attained vested status in the fund.
(2) The member has terminated employment with the applicable
fund and is not currently employed in a covered position.
(3) The member has not performed any service in a position
covered by the fund for at least thirty (30) days after the date
the member terminates employment.
(4) The member makes the election described in this subsection:
(A) after December 31, 2008, if the member is a member of
the public employees' retirement fund; or
(B) after June 30, 2009, if the member is a member of the
Indiana state teachers' retirement fund.
(5) Except as provided in subsection (b), the member is not
eligible for a reduced or unreduced retirement on the date the
fund receives notice of the election described in this subsection.
(b) The requirement described in subsection (a)(5) does not apply
to a member of the public employees' retirement fund who:
(1) was eligible for a reduced or unreduced retirement; and
(2) received a distribution under this section;
after December 31, 2008, and before January 1, 2010.
(c) A member who elects to withdraw the entire amount in the
member's annuity savings account under subsection (a) shall provide
notice of the election on a form provided by the board.
(d) The election to withdraw the entire amount in the member's
annuity savings account is irrevocable.
(e) The board shall pay the amount in the member's annuity
savings account as a lump sum.
(f) Except as provided in subsection (g), a member who makes a
withdrawal under this section is entitled to receive, when the member
becomes eligible to receive a retirement benefit under IC 5-10.2-4,
a retirement benefit equal to the pension provided by employer
contributions computed under IC 5-10.2-4.
(g) A member who:
(1) transfers creditable service earned under the fund to another
governmental retirement plan under section 1(i) of this chapter;
and
(2) withdraws the member's annuity savings account under this
section to purchase the service;
may not use the transferred service in the computation of a retirement
benefit payable under subsection (f). As added by P.L.115-2008, SEC.8. Amended by P.L.115-2009,
SEC.1; P.L.99-2010, SEC.2.
IC 5-10.2-3-7
Repealed
(Repealed by P.L.55-1989, SEC.67.)
IC 5-10.2-3-7.1
Repealed
(Repealed by P.L.4-1990, SEC.22.)
IC 5-10.2-3-7.2
Repealed
(Repealed by P.L.55-1989, SEC.67.)
IC 5-10.2-3-7.5 Version a Survivor benefits; forfeiture
Note: This version of section effective until 7-1-2010. See also
following version of this section, effective 7-1-2010.
Sec. 7.5. (a) This subsection applies to members who die after
March 31, 1990, and before January 1, 2007. A surviving dependent
or surviving spouse of a member who dies in service is entitled to a
survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if the
member died in service as a member of the general
assembly;
(B) at least fifteen (15) years of creditable service, if the
member died in service in any other position covered by the
retirement fund; or
(C) at least ten (10) years but not more than fourteen (14)
years of creditable service if the member:
(i) was at least sixty-five (65) years of age; and
(ii) died in service in a position covered by the teachers'
retirement fund; and
(2) the surviving dependent or surviving spouse qualifies for a
survivor benefit under subsection (c) or (d).
(b) This subsection applies to members who die after December
31, 2006. A surviving dependent or surviving spouse of a member
who dies is entitled to a survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if the
member died in service as a member of the general
assembly;
(B) at least ten (10) years but not more than fourteen (14)
years of creditable service if the member was at least
sixty-five (65) years of age and died in service in a position
covered by the fund (other than a position described in
clause (A)); or
(C) at least fifteen (15) years of creditable service, if the
member died in service in a position covered by the fund
(other than a position described in clause (A)); and
(2) the surviving dependent or surviving spouse qualifies for a
survivor benefit under subsection (c) or (d).
(c) If a member described in subsection (a) or (b) dies with a
surviving spouse who was married to the member for at least two (2)
years, the surviving spouse is entitled to a survivor benefit equal to
the monthly pension benefit that would have been payable to the
spouse under the joint and survivor option of IC 5-10.2-4-7 upon the
member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. However, benefits payable under this subsection
are subject to subsections (f) and (h).
(d) If a member described in subsection (a) or (b) dies without a
surviving spouse who was married to the member for at least two (2)
years, but with a surviving dependent, the surviving dependent is
entitled to a survivor benefit in a monthly amount equal to the
actuarial equivalent of the monthly pension benefit that would have
been payable to the spouse (assuming the spouse would have had the
same birth date as the member) under the joint and survivor option
of IC 5-10.2-4-7 upon the member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. If there are two (2) or more surviving dependents,
the actuarial equivalent of the benefit described in this subsection
shall be calculated and, considering the dependents' attained ages, an
equal dollar amount shall be determined as the monthly pension
benefit to be paid to each dependent. Monthly pension benefits under
this subsection are payable until the date the dependent becomes
eighteen (18) years of age or dies, whichever is earlier. However, if
a dependent has a permanent and total disability (using disability
guidelines established by the Social Security Administration) at the
date the dependent reaches eighteen (18) years of age, the monthly
pension benefit is payable until the date the dependent no longer has
a disability (using disability guidelines established by the Social
Security Administration) or dies, whichever is earlier. Benefits
payable under this subsection are subject to subsections (f) and (h).
(e) This subsection applies if a member did not designate a
beneficiary or the designated beneficiary does not survive the
member. Except as provided in subsections (f) and (i), the surviving
spouse or surviving dependent of a member who is entitled to a
survivor benefit under subsection (c) or (d) or section 7.6 of this
chapter may elect to receive a lump sum payment of the total amount
credited to the member in the member's annuity savings account or
an amount equal to the member's federal income tax basis in the
member's annuity savings account as of December 31, 1986. A
surviving spouse or surviving dependent who makes such an election
is not entitled to an annuity as part of the survivor benefit under
subsection (c) or (d) or section 7.6 of this chapter to the extent of the
lump sum payment.
(f) If a member is survived by a designated beneficiary, the
following provisions apply:
(1) If the member is survived by one (1) designated beneficiary,
the designated beneficiary is entitled to receive in a lump sum
or over a period of up to five (5) years, as elected by the
designated beneficiary, the amount credited to the member's
annuity savings account, less any disability benefits paid to the
member.
(2) If the member is survived by two (2) or more designated
beneficiaries, the designated beneficiaries are entitled to receive
in a lump sum or over a period of up to five (5) years, as elected
by the designated beneficiary, equal shares of the amount
credited to the member's annuity savings account, less any
disability benefits paid to the member.
(3) If the member is also survived by a spouse or dependent
who is entitled to a survivor benefit under subsection (c) or (d)
or section 7.6 of this chapter, the surviving spouse or dependent
is not entitled to an annuity or a lump sum payment as part of
the survivor benefit, unless the surviving spouse or dependent
is also a designated beneficiary.
(g) If a member dies:
(1) without a surviving spouse or surviving dependent who
qualifies for survivor benefits under subsection (c) or (d) or
section 7.6 of this chapter; and
(2) without a surviving designated beneficiary who is entitled
to receive the member's annuity savings account under
subsection (f);
the amount credited to the member's annuity savings account, less
any disability benefits paid to the member, shall be paid to the
member's estate.
(h) Survivor benefits payable under this section or section 7.6 of
this chapter shall be reduced by any disability benefits paid to the
member.
(i) Additional annuity contributions, if any, shall not be included
in determining survivor benefits under subsection (c) or (d) or
section 7.6 of this chapter, but are payable in a lump sum payment to:
(1) the member's surviving designated beneficiary; or
(2) the member's estate, if there is no surviving designated
beneficiary.
(j) Survivor benefits provided under this section or section 7.6 of
this chapter are subject to IC 5-10.2-2-1.5.
(k) A benefit specified in this section shall be forfeited and
credited to the member's retirement fund if no person entitled to the
benefit claims it within three (3) years after the member's death.
However, the board may honor a claim that is made more than three
(3) years after the member's death if the board finds, in the board's
discretion, that:
(1) the delay in making the claim was reasonable or other
extenuating circumstances justify the award of the benefit to the
claimant; and
(2) paying the claim would not cause a violation of the
applicable Internal Revenue Service rules. As added by P.L.55-1989, SEC.14. Amended by P.L.4-1990, SEC.5;
P.L.43-1991, SEC.2; P.L.35-1996, SEC.1; P.L.22-1998, SEC.5;
P.L.118-2000, SEC.2; P.L.190-2003, SEC.1; P.L.99-2007, SEC.15;
P.L.113-2009, SEC.1; P.L.115-2009, SEC.2; P.L.1-2010, SEC.18.
IC 5-10.2-3-7.5 Version b Survivor benefits; forfeiture
Note: This version of section effective 7-1-2010. See also
preceding version of this section, effective until 7-1-2010.
Sec. 7.5. (a) This subsection applies to members who die after
March 31, 1990, and before January 1, 2007. A surviving dependent
or surviving spouse of a member who dies in service is entitled to a
survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if the
member died in service as a member of the general
assembly;
(B) at least fifteen (15) years of creditable service, if the
member died in service in any other position covered by the
retirement fund; or
(C) at least ten (10) years but not more than fourteen (14)
years of creditable service if the member:
(i) was at least sixty-five (65) years of age; and
(ii) died in service in a position covered by the teachers'
retirement fund; and
(2) the surviving dependent or surviving spouse qualifies for a
survivor benefit under subsection (c) or (d).
(b) This subsection applies to members who die after December
31, 2006. A surviving dependent or surviving spouse of a member
who dies is entitled to a survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if the
member died in service as a member of the general
assembly;
(B) at least ten (10) years but not more than fourteen (14)
years of creditable service if the member was at least
sixty-five (65) years of age and died in service in a position
covered by the fund (other than a position described in
clause (A)); or
(C) at least fifteen (15) years of creditable service, if the
member died in service in a position covered by the fund
(other than a position described in clause (A)); and
(2) the surviving dependent or surviving spouse qualifies for a
survivor benefit under subsection (c) or (d).
(c) If a member described in subsection (a) or (b) dies with a
surviving spouse who was married to the member for at least two (2)
years, the surviving spouse is entitled to a survivor benefit equal to
the monthly pension benefit that would have been payable to the
spouse under the joint and survivor option of IC 5-10.2-4-7 upon the
member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. However, benefits payable under this subsection
are subject to subsections (f) and (h).
(d) If a member described in subsection (a) or (b) dies without a
surviving spouse who was married to the member for at least two (2)
years, but with a surviving dependent, the surviving dependent is
entitled to a survivor benefit in a monthly amount equal to the
actuarial equivalent of the monthly pension benefit that would have
been payable to the spouse (assuming the spouse would have had the
same birth date as the member) under the joint and survivor option
of IC 5-10.2-4-7 upon the member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. If there are two (2) or more surviving dependents,
the actuarial equivalent of the benefit described in this subsection
shall be calculated and, considering the dependents' attained ages, an
equal dollar amount shall be determined as the monthly pension
benefit to be paid to each dependent. Monthly pension benefits under
this subsection are payable until the date the dependent becomes
eighteen (18) years of age or dies, whichever is earlier. However, if
a dependent has a permanent and total disability (using disability
guidelines established by the Social Security Administration) at the
date the dependent reaches eighteen (18) years of age, the monthly
pension benefit is payable until the date the dependent no longer has
a disability (using disability guidelines established by the Social
Security Administration) or dies, whichever is earlier. Benefits
payable under this subsection are subject to subsections (f) and (h).
(e) This subsection applies if a member did not designate a
beneficiary or the designated beneficiary does not survive the
member. Except as provided in subsections (f) and (i), the surviving
spouse or surviving dependent of a member who is entitled to a
survivor benefit under subsection (c) or (d) or section 7.6 of this
chapter may elect to receive a lump sum payment of the total amount
credited to the member in the member's annuity savings account or
an amount equal to the member's federal income tax basis in the
member's annuity savings account as of December 31, 1986. A
surviving spouse or surviving dependent who makes such an election
is not entitled to an annuity as part of the survivor benefit under
subsection (c) or (d) or section 7.6 of this chapter to the extent of the
lump sum payment.
(f) If a member is survived by a designated beneficiary, the
following provisions apply:
(1) If the member is survived by one (1) designated beneficiary,
the designated beneficiary is entitled to receive in a lump sum
or over a period of up to five (5) years, as elected by the
designated beneficiary, the amount credited to the member's
annuity savings account, less any disability benefits paid to the
member.
(2) If the member is survived by two (2) or more designated
beneficiaries, the designated beneficiaries are entitled to receive
in a lump sum or over a period of up to five (5) years, as elected
by the designated beneficiary, equal shares of the amount
credited to the member's annuity savings account unless the
member has allocated the shares among the designated
beneficiaries in a manner authorized under IC 5-10.3-8-15 or
IC 5-10.4-4-10, less any disability benefits paid to the member.
(3) If the member is also survived by a spouse or dependent
who is entitled to a survivor benefit under subsection (c) or (d)
or section 7.6 of this chapter, the surviving spouse or dependent
is not entitled to an annuity or a lump sum payment as part of
the survivor benefit, unless the surviving spouse or dependent
is also a designated beneficiary.
(g) If a member dies:
(1) without a surviving spouse or surviving dependent who
qualifies for survivor benefits under subsection (c) or (d) or
section 7.6 of this chapter; and
(2) without a surviving designated beneficiary who is entitled
to receive the member's annuity savings account under
subsection (f);
the amount credited to the member's annuity savings account, less
any disability benefits paid to the member, shall be paid to the
member's estate.
(h) Survivor benefits payable under this section or section 7.6 of
this chapter shall be reduced by any disability benefits paid to the
member.
(i) Additional annuity contributions, if any, shall not be included
in determining survivor benefits under subsection (c) or (d) or
section 7.6 of this chapter, but are payable in a lump sum payment to:
(1) the member's surviving designated beneficiary; or
(2) the member's estate, if there is no surviving designated
beneficiary.
(j) Survivor benefits provided under this section or section 7.6 of
this chapter are subject to IC 5-10.2-2-1.5.
(k) A benefit specified in this section shall be forfeited and
credited to the member's retirement fund if no person entitled to the
benefit claims it within three (3) years after the member's death.
However, the board may honor a claim that is made more than three
(3) years after the member's death if the board finds, in the board's
discretion, that:
(1) the delay in making the claim was reasonable or other
extenuating circumstances justify the award of the benefit to the
claimant; and
(2) paying the claim would not cause a violation of the
applicable Internal Revenue Service rules. As added by P.L.55-1989, SEC.14. Amended by P.L.4-1990, SEC.5;
P.L.43-1991, SEC.2; P.L.35-1996, SEC.1; P.L.22-1998, SEC.5;
P.L.118-2000, SEC.2; P.L.190-2003, SEC.1; P.L.99-2007, SEC.15;
P.L.113-2009, SEC.1; P.L.115-2009, SEC.2; P.L.1-2010, SEC.18;
P.L.99-2010, SEC.3.
IC 5-10.2-3-7.6 Survivor benefits of member with 30 years creditable service
Sec. 7.6. (a) This section applies to the surviving spouse and the
surviving dependent of a member who:
(1) dies after June 30, 1996;
(2) has at least thirty (30) years of creditable service; and
(3) dies in service in a position covered by the fund.
(b) If a member described in subsection (a) dies with a surviving
spouse who was married to the member for at least two (2) years, the
board may determine that the surviving spouse is entitled to a
survivor benefit equal to the monthly benefit that would have been
payable to the spouse under the joint and survivor option of
IC 5-10.2-4-7 upon the member's death following retirement at:
(1) fifty-five (55) years of age; or
(2) the actual date of death;
whichever is later. However, benefits payable under this section are
subject to section 7.5(f) and 7.5(h) of this chapter.
(c) If a member described in subsection (a) dies without a
surviving spouse who was married to the member for at least two (2)
years, but with a surviving dependent, the board may determine that
the surviving dependent is entitled to a survivor benefit in a monthly
amount equal to the actuarial equivalent of the monthly benefit that
would have been payable to the spouse (assuming the spouse would
have had the same birth date as the member) under the joint and
survivor option of IC 5-10.2-4-7 upon the member's death following
retirement at:
(1) fifty-five (55) years of age; or
(2) the actual date of death;
whichever is later. If there are two (2) or more surviving dependents,
the actuarial equivalent of the benefit described in this subsection
shall be calculated and, considering the dependents' attained ages, an
equal dollar amount shall be determined as the monthly benefit to be
paid to each dependent. Monthly benefits under this subsection are
payable until the date the dependent becomes eighteen (18) years of
age or dies, whichever is earlier. However, if a dependent has a
permanent and total disability (using disability guidelines established
by the Social Security Administration) on the date the dependent
becomes eighteen (18) years of age, the monthly benefit is payable
until the date the dependent no longer has a disability (using
disability guidelines established by the Social Security
Administration) or dies, whichever is earlier. Benefits payable under
this section are subject to section 7.5(f) and 7.5(h) of this chapter. As added by P.L.35-1996, SEC.2. Amended by P.L.99-2007, SEC.16;
P.L.113-2009, SEC.2.
IC 5-10.2-3-8 Survivor benefits; death while not in service
Sec. 8. (a) If a member dies:
(1) after March 31, 1990;
(2) while not in service in a position covered by the retirement
fund; and
(3) while eligible to receive retirement or disability benefits
under IC 5-10.2-4-6, but before applying for those benefits;
the member's surviving spouse or surviving dependent is entitled to
survivor benefits in the same amount and under the same conditions
as provided in section 7.5 of this chapter.
(b) If a member dies while not in service and while not eligible for
retirement or disability retirement, the sum payable upon suspension
of membership shall be paid to the member's surviving designated
beneficiary or to the member's estate if no beneficiary is designated.
(c) The sums specified in subsections (a) and (b) shall be forfeited
and credited to the member's retirement fund if no beneficiary or
other person entitled to the money under subsection (a) or (b) claims
it within three (3) years after the member's death. However, the board
may honor a claim made more than three (3) years after the member's
death if the board finds, in the board's discretion, that:
(1) the member died after August 31, 1992; and
(2) either:
(A) the delay in making the claim was reasonable; or
(B) other extenuating circumstances justify the award of the
benefit to the claimant.
(d) Survivor benefits payable under this section shall be reduced
by any disability benefits paid to the member under the same
conditions as provided in section 7.5 of this chapter. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985,
SEC.11; P.L.55-1989, SEC.15; P.L.4-1990, SEC.6; P.L.56-1993,
SEC.1; P.L.22-1993, SEC.2; P.L.119-2006, SEC.1.
IC 5-10.2-3-9 Survivor benefits; death after July 1, 1991, while eligible for
retirement benefits
Sec. 9. (a) This section applies if the following conditions are met.
A member dies:
(1) after July 1, 1991; and
(2) while receiving or while eligible to receive retirement
benefits under IC 5-10.2-4-1 from the fund.
(b) As used in this section, "minimum amount" means the entire
amount credited to the member's annuity savings account at the time
of:
(1) retirement; or
(2) death while entitled to retirement benefits;
minus all benefits paid to the member and the member's survivors.
(c) If the member dies without a survivor entitled to benefits and
the member has not received payments equal to or more than the
minimum amount, the difference shall be paid in a lump sum to the
member's designated beneficiary or beneficiaries in equal shares. If
the member dies without a surviving designated beneficiary, the
difference shall be paid in a lump sum to the member's estate.
(d) If the member dies with a survivor entitled to benefits, no
payment under this section shall be calculated until after all survivors
die. If, at the time of death of the last survivor, the member and all
survivors have not received payments equal to or more than the
minimum amount, the difference shall be paid in a lump sum to the
survivor's estate. As added by P.L.43-1991, SEC.3.
IC 5-10.2-3-10 Rollover distributions
Sec. 10. (a) To the extent permitted by the Internal Revenue Code
and the applicable regulations, the fund may accept, on behalf of any
active member, a rollover distribution from any of the following:
(1) A qualified plan described in Section 401(a) or Section
403(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 maintained by a state, a political
subdivision of a state, or an agency or instrumentality of a state
or political subdivision of a state under Section 457(b) of the
Internal Revenue Code.
(4) An individual retirement account or annuity described in
Section 408(a) or Section 408(b) of the Internal Revenue Code.
(b) Any amounts rolled over under subsection (a) must be
accounted for in a "rollover account" that is separate from the
member's annuity savings account.
(c) A member may direct the investment of the member's rollover
account into any alternative investment option that the board may
make available to the member's rollover account under IC 5-10.2-2-3.
However, the member may not invest the member's rollover account
in the guaranteed fund.
(d) A member may withdraw the member's rollover account from
the fund in a lump sum at any time before retirement. At retirement,
the member may withdraw the member's rollover account in
accordance with the retirement options that are available for the
member's annuity savings account, including the deferral of a
withdrawal. As added by P.L.61-2002, SEC.5.
IC 5-10.2-3
Chapter 3. Creditable Service; Contributions; Withdrawals; Death
Settlements
IC 5-10.2-3-1 Creditable service
Sec. 1. (a) Except as provided in IC 5-10.2-4-8(d), each member's
creditable service, for the purpose of computing benefits under this
article, consists of all service in a position covered by a retirement
fund plus all other service for which the retirement fund law gives
credit.
(b) No member may be required to pay any contributions for
service before the member is covered by this article as a condition
precedent to receiving benefits under this article. However, the
member must furnish proof of the service to the board of the fund
under which the member claims service.
(c) A member who has past service as an employee of the state or
a participating political subdivision in a position which was not
covered by the retirement fund is entitled to credit for this service if
the position becomes covered before January 1, 1985, by the Indiana
state teachers' retirement fund, the public employees' retirement fund,
or the retirement fund for the state board of accounts and if the
member submits proof of the service to the secretary of the fund in
which the member claims service.
(d) A member who has past service in a position that was not
covered by the retirement fund is entitled to credit for this service if
the position becomes covered after December 31, 1984, by a fund
while the member holds that position or another position with the
same employer and if the member submits proof of the service to the
director of the fund in which the member claims service.
(e) The proof required by this section must:
(1) be submitted in a form approved by the director;
(2) contain dates and nature of service and other information
required by the director; and
(3) be certified by the governing body or its agent.
(f) A member who is a state employee is entitled to service credit
for the time the member is receiving disability benefits under a
disability plan established under IC 5-10-8-7.
(g) If a participant in the legislators' defined benefit plan does not
become entitled to a benefit from that plan, the PERF board or the
TRF board shall include the participant's service in the general
assembly in the determination of eligibility for, and computation of,
benefits under PERF or TRF at the time the participant would be
eligible to receive benefits under PERF or TRF. After benefits
commence under PERF or TRF with the general assembly service
included, the participant's general assembly service may not be used
for the computation of benefits under IC 2-3.5-4.
(h) A member may receive service credit for all or a part of the
member's creditable service in another governmental retirement plan
under IC 5-10.3-7-4.5 and IC 5-10.4-4-4. A member may not receive
credit for service for which the member receives service credit in
another retirement plan maintained by a state, a political subdivision,
or an instrumentality of the state for service that PERF or TRF would
otherwise give credit.
(i) A member may use all or a part of the member's creditable
service under PERF or TRF in another governmental retirement plan
under the terms of the other plan. Creditable service used under the
other governmental retirement plan may not be used in PERF or
TRF. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.28-1984,
SEC.1; P.L.5-1990, SEC.5; P.L.43-1991, SEC.1; P.L.22-1998,
SEC.3; P.L.2-2006, SEC.23; P.L.72-2007, SEC.2; P.L.1-2009,
SEC.17.
IC 5-10.2-3-1.2 Additional service credit purchase
Sec. 1.2. (a) A member who has earned at least ten (10) years of
service in a position covered by PERF, TRF, or a combination of the
two (2) funds may purchase one (1) year of service credit for each
five (5) years of service that the member has completed in a position
covered by PERF or TRF.
(b) Before a member retires, a member who desires to purchase
additional service credit under subsection (a) must contribute to the
fund as follows:
(1) Contributions that are equal to the product of the following:
(A) The member's salary at the time the member actually
makes a contribution for the service credit.
(B) A rate, determined by the actuary for the fund, that is
based on the age of the member at the time the member
actually makes a contribution for the service credit and
computed to result in a contribution amount that
approximates the actuarial present value of the benefit
attributable to the service credit purchased.
(C) The number of years of service credit the member
intends to purchase.
(2) Contributions for any accrued interest, at a rate determined
by the actuary for the fund, for the period from the member's
initial membership in the fund to the date payment is made by
the member.
(c) The following apply to the purchase of service credit under
this section:
(1) The board may allow a member to make periodic payments
of the contributions required for the purchase of service credit.
The board shall determine the length of the period during which
the payments must be made.
(2) The board may deny an application for the purchase of
service credit if the purchase would exceed the limitations
under Section 415 of the Internal Revenue Code.
(3) A member may not claim the service credit for the purpose
of computing benefits unless the member has made all
payments required for the purchase of the service credit.
(4) To the extent permitted by the Internal Revenue Code and
applicable regulations, a member may purchase service credit
under this section by a rollover distribution to the fund from any
of the following:
(A) A qualified plan described in Section 401(a) or Section
403(a) of the Internal Revenue Code.
(B) An annuity contract or account described in Section
403(b) of the Internal Revenue Code.
(C) An eligible plan that is maintained by a state, a political
subdivision of a state, or an agency or instrumentality of a
state or political subdivision of a state under Section 457(b)
of the Internal Revenue Code.
(D) An individual retirement account or annuity described in
Section 408(a) or Section 408(b) of the Internal Revenue
Code.
(d) A member who terminates employment before satisfying the
eligibility requirements necessary to receive a monthly benefit may
withdraw the purchase amount, plus accumulated interest, after
submitting a properly completed application for a refund to the fund.
However, the member must also apply for a refund of the member's
entire annuity savings account under section 6 or 6.5 of this chapter
to be eligible for a refund of the member's rollover amount.
(e) For a member who is a state employee, the employer may pay
all or a part of the member contributions required for the purchase of
service credit under this section. In that event, the actuary shall
determine the amortization, and subsections (c)(1), (c)(3), (c)(4), and
(d) do not apply.
(f) For a member who is an employee of a participating political
subdivision, the employer may adopt an ordinance to pay all or a part
of the member contributions required for the purchase of service
credit under this section. In that event, the actuary shall determine
the amortization, and subsections (c)(1), (c)(3), (c)(4), and (d) do not
apply. As added by P.L.61-2002, SEC.3. Amended by P.L.115-2008, SEC.6.
IC 5-10.2-3-2 Members' contributions; employers picking up
Sec. 2. (a) Subject to IC 5-10.2-2-1.5, as used in this section,
"compensation" means:
(1) the basic salary earned by and paid to the member; plus
(2) the amount that would have been a part of the basic salary
earned and paid except for the member's salary reduction
agreement established under Section 125, 403(b), or 457 of the
Internal Revenue Code.
(b) Except in cases where:
(1) the contribution is made on behalf of the member; or
(2) a retired member of the Indiana state teachers' retirement
fund may not make contributions during a period of
reemployment as provided in IC 5-10.2-4-8(d);
each member shall, as a condition of employment, contribute to the
fund three percent (3%) of the member's compensation.
(c) Except as provided in IC 5-10.2-4-8(d), a member of a fund
may make contributions to the member's annuity savings account in
addition to the contributions required under subsection (b). The total
amount of contributions that may be made to a member's annuity
savings account with respect to a payroll period under this subsection
may not exceed ten percent (10%) of the member's compensation for
that payroll period. The contributions made under this subsection
may be picked-up and paid by an employer as provided in subsection
(d).
(d) In compliance with rules adopted by each board, an employer,
under Section 414(h)(2) of the Internal Revenue Code, may pick-up
and pay the contributions under subsection (c), subject to approval
of the board and to the board's receipt of a favorable private letter
ruling from the Internal Revenue Service. The employer shall reduce
the member's compensation by an amount equal to the amount of the
member's contributions under subsection (c) that are picked-up by
the employer. Each board shall by rule establish the procedural
requirements for employers to carry out the pick-up in compliance
with Section 414(h)(2) of the Internal Revenue Code.
(e) A member's contributions and interest credits belong to the
member and do not belong to the state or political subdivision. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985,
SEC.8; P.L.55-1989, SEC.13; P.L.53-2000, SEC.1; P.L.246-2001,
SEC.4; P.L.72-2007, SEC.3; P.L.1-2009, SEC.18.
IC 5-10.2-3-3 Deduction of contributions
Sec. 3. (a) This section does not apply to a member of the Indiana
state teachers' retirement fund who is reemployed more than thirty
(30) days after the member's retirement in a position covered by the
Indiana state teachers' retirement fund.
(b) Members' contributions, other than members' contributions
paid on behalf of a member, shall be deducted from their
compensation even if the net compensation to the member is less
than the statutory minimum.
(c) The payment of a member's compensation minus the deduction
constitutes a complete discharge of all claims for services rendered
by the member during the period covered by the payment, except the
claim for benefits under this article. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.41-1983,
SEC.5; P.L.35-1985, SEC.9; P.L.72-2007, SEC.4; P.L.76-2008,
SEC.1.
IC 5-10.2-3-4
Repealed
(Repealed by P.L.46-1988, SEC.14.) IC 5-10.2-3-5 Suspension of membership
Sec. 5. (a) A member who is not eligible for retirement or
disability retirement may suspend the member's membership if the
member terminates employment.
(b) After five (5) continuous years in which the member performs
no service, the member's membership shall be automatically
suspended by the board unless the member has vested status.
(c) The board may suspend a member's membership in the fund if:
(1) the member has not performed any service in a covered
position during the past two (2) years;
(2) the member has not attained vested status in the fund; and
(3) the value of the member's annuity savings account is not
more than one thousand dollars ($1,000).
(d) On resuming service the member may claim as creditable
service the period of employment before the suspension of
membership, but only to the extent that the same period of
employment is not being used by another governmental plan for
purposes of the member's benefit in the other governmental plan. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.22-1998,
SEC.4; P.L.195-1999, SEC.11; P.L.165-2009, SEC.5.
IC 5-10.2-3-6 Withdrawal of contributions
Sec. 6. (a) After a member suspends his membership, he is
entitled to withdraw in a lump sum the amount of his contributions
plus interest credited to him.
(b) Except as provided in subsection (c), if the member does not
claim his moneys within five (5) years after the suspension, the
moneys shall be credited to the retirement fund. Any reasonable costs
of locating the member or the member's beneficiary may be charged
against the member's or the beneficiary's money. The fund shall
retain the moneys until the member claims them, with no further
interest credits to the member after the moneys are credited to the
fund.
(c) If a member suspends membership in the fund because the
member is no longer in a covered position but does not separate from
employment with the member's employer, money shall be credited to
the retirement fund only if the member does not claim the member's
money within forty-five (45) years after the suspension.
(d) If a member is suspended under section (5)(c) of this chapter,
the board shall pay the member's annuity savings account in a lump
sum. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.25-1994,
SEC.3; P.L.2-1995, SEC.15; P.L.195-1999, SEC.12.
IC 5-10.2-3-6.2 Withdrawal of contributions to purchase creditable service in
another governmental retirement plan
Sec. 6.2. (a) This section applies to a member of the Indiana state
teachers' retirement fund.
(b) A member who:
(1) has attained vested status in the fund;
(2) has terminated employment;
(3) has not begun receiving benefits; and
(4) is transferring creditable service earned under TRF to
another governmental retirement plan under section 1(i) of this
chapter;
may suspend the member's membership and withdraw the member's
annuity savings account to purchase creditable service in the other
governmental retirement plan. As added by P.L.61-2002, SEC.4. Amended by P.L.115-2008, SEC.7.
IC 5-10.2-3-6.3 Suspension of membership; transfer of amount in annuity savings
account to purchase service credit in sheriff's pension trust
Sec. 6.3. (a) Notwithstanding any other provision in this article,
IC 5-10.3, or IC 5-10.4, a member who:
(1) has not attained vested status in the fund;
(2) is not an active participant in the fund; and
(3) is an active participant in a retirement plan established under
IC 36-8-10-12;
may suspend membership in the fund and transfer the entire amount
in the member's annuity savings account in accordance with the
member's purchase of service credit under IC 36-8-10-12.5.
(b) A member who makes a transfer under IC 36-8-10-12.5 from
the member's annuity savings account shall provide notice of the
transfer on a form provided by the board.
(c) A transfer under IC 36-8-10-12.5 is irrevocable.
(d) A member who makes a transfer under this section waives all
credit for service in the fund. As added by P.L.98-2009, SEC.1.
IC 5-10.2-3-6.5 Withdrawal of annuity savings account before retirement
Sec. 6.5. (a) A member who meets all of the following
requirements may elect to withdraw the entire amount in the
member's annuity savings account before the member is eligible to
do so at retirement under IC 5-10.2-4-2:
(1) The member has attained vested status in the fund.
(2) The member has terminated employment with the applicable
fund and is not currently employed in a covered position.
(3) The member has not performed any service in a position
covered by the fund for at least thirty (30) days after the date
the member terminates employment.
(4) The member makes the election described in this subsection:
(A) after December 31, 2008, if the member is a member of
the public employees' retirement fund; or
(B) after June 30, 2009, if the member is a member of the
Indiana state teachers' retirement fund.
(5) Except as provided in subsection (b), the member is not
eligible for a reduced or unreduced retirement on the date the
fund receives notice of the election described in this subsection.
(b) The requirement described in subsection (a)(5) does not apply
to a member of the public employees' retirement fund who:
(1) was eligible for a reduced or unreduced retirement; and
(2) received a distribution under this section;
after December 31, 2008, and before January 1, 2010.
(c) A member who elects to withdraw the entire amount in the
member's annuity savings account under subsection (a) shall provide
notice of the election on a form provided by the board.
(d) The election to withdraw the entire amount in the member's
annuity savings account is irrevocable.
(e) The board shall pay the amount in the member's annuity
savings account as a lump sum.
(f) Except as provided in subsection (g), a member who makes a
withdrawal under this section is entitled to receive, when the member
becomes eligible to receive a retirement benefit under IC 5-10.2-4,
a retirement benefit equal to the pension provided by employer
contributions computed under IC 5-10.2-4.
(g) A member who:
(1) transfers creditable service earned under the fund to another
governmental retirement plan under section 1(i) of this chapter;
and
(2) withdraws the member's annuity savings account under this
section to purchase the service;
may not use the transferred service in the computation of a retirement
benefit payable under subsection (f). As added by P.L.115-2008, SEC.8. Amended by P.L.115-2009,
SEC.1; P.L.99-2010, SEC.2.
IC 5-10.2-3-7
Repealed
(Repealed by P.L.55-1989, SEC.67.)
IC 5-10.2-3-7.1
Repealed
(Repealed by P.L.4-1990, SEC.22.)
IC 5-10.2-3-7.2
Repealed
(Repealed by P.L.55-1989, SEC.67.)
IC 5-10.2-3-7.5 Version a Survivor benefits; forfeiture
Note: This version of section effective until 7-1-2010. See also
following version of this section, effective 7-1-2010.
Sec. 7.5. (a) This subsection applies to members who die after
March 31, 1990, and before January 1, 2007. A surviving dependent
or surviving spouse of a member who dies in service is entitled to a
survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if the
member died in service as a member of the general
assembly;
(B) at least fifteen (15) years of creditable service, if the
member died in service in any other position covered by the
retirement fund; or
(C) at least ten (10) years but not more than fourteen (14)
years of creditable service if the member:
(i) was at least sixty-five (65) years of age; and
(ii) died in service in a position covered by the teachers'
retirement fund; and
(2) the surviving dependent or surviving spouse qualifies for a
survivor benefit under subsection (c) or (d).
(b) This subsection applies to members who die after December
31, 2006. A surviving dependent or surviving spouse of a member
who dies is entitled to a survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if the
member died in service as a member of the general
assembly;
(B) at least ten (10) years but not more than fourteen (14)
years of creditable service if the member was at least
sixty-five (65) years of age and died in service in a position
covered by the fund (other than a position described in
clause (A)); or
(C) at least fifteen (15) years of creditable service, if the
member died in service in a position covered by the fund
(other than a position described in clause (A)); and
(2) the surviving dependent or surviving spouse qualifies for a
survivor benefit under subsection (c) or (d).
(c) If a member described in subsection (a) or (b) dies with a
surviving spouse who was married to the member for at least two (2)
years, the surviving spouse is entitled to a survivor benefit equal to
the monthly pension benefit that would have been payable to the
spouse under the joint and survivor option of IC 5-10.2-4-7 upon the
member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. However, benefits payable under this subsection
are subject to subsections (f) and (h).
(d) If a member described in subsection (a) or (b) dies without a
surviving spouse who was married to the member for at least two (2)
years, but with a surviving dependent, the surviving dependent is
entitled to a survivor benefit in a monthly amount equal to the
actuarial equivalent of the monthly pension benefit that would have
been payable to the spouse (assuming the spouse would have had the
same birth date as the member) under the joint and survivor option
of IC 5-10.2-4-7 upon the member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. If there are two (2) or more surviving dependents,
the actuarial equivalent of the benefit described in this subsection
shall be calculated and, considering the dependents' attained ages, an
equal dollar amount shall be determined as the monthly pension
benefit to be paid to each dependent. Monthly pension benefits under
this subsection are payable until the date the dependent becomes
eighteen (18) years of age or dies, whichever is earlier. However, if
a dependent has a permanent and total disability (using disability
guidelines established by the Social Security Administration) at the
date the dependent reaches eighteen (18) years of age, the monthly
pension benefit is payable until the date the dependent no longer has
a disability (using disability guidelines established by the Social
Security Administration) or dies, whichever is earlier. Benefits
payable under this subsection are subject to subsections (f) and (h).
(e) This subsection applies if a member did not designate a
beneficiary or the designated beneficiary does not survive the
member. Except as provided in subsections (f) and (i), the surviving
spouse or surviving dependent of a member who is entitled to a
survivor benefit under subsection (c) or (d) or section 7.6 of this
chapter may elect to receive a lump sum payment of the total amount
credited to the member in the member's annuity savings account or
an amount equal to the member's federal income tax basis in the
member's annuity savings account as of December 31, 1986. A
surviving spouse or surviving dependent who makes such an election
is not entitled to an annuity as part of the survivor benefit under
subsection (c) or (d) or section 7.6 of this chapter to the extent of the
lump sum payment.
(f) If a member is survived by a designated beneficiary, the
following provisions apply:
(1) If the member is survived by one (1) designated beneficiary,
the designated beneficiary is entitled to receive in a lump sum
or over a period of up to five (5) years, as elected by the
designated beneficiary, the amount credited to the member's
annuity savings account, less any disability benefits paid to the
member.
(2) If the member is survived by two (2) or more designated
beneficiaries, the designated beneficiaries are entitled to receive
in a lump sum or over a period of up to five (5) years, as elected
by the designated beneficiary, equal shares of the amount
credited to the member's annuity savings account, less any
disability benefits paid to the member.
(3) If the member is also survived by a spouse or dependent
who is entitled to a survivor benefit under subsection (c) or (d)
or section 7.6 of this chapter, the surviving spouse or dependent
is not entitled to an annuity or a lump sum payment as part of
the survivor benefit, unless the surviving spouse or dependent
is also a designated beneficiary.
(g) If a member dies:
(1) without a surviving spouse or surviving dependent who
qualifies for survivor benefits under subsection (c) or (d) or
section 7.6 of this chapter; and
(2) without a surviving designated beneficiary who is entitled
to receive the member's annuity savings account under
subsection (f);
the amount credited to the member's annuity savings account, less
any disability benefits paid to the member, shall be paid to the
member's estate.
(h) Survivor benefits payable under this section or section 7.6 of
this chapter shall be reduced by any disability benefits paid to the
member.
(i) Additional annuity contributions, if any, shall not be included
in determining survivor benefits under subsection (c) or (d) or
section 7.6 of this chapter, but are payable in a lump sum payment to:
(1) the member's surviving designated beneficiary; or
(2) the member's estate, if there is no surviving designated
beneficiary.
(j) Survivor benefits provided under this section or section 7.6 of
this chapter are subject to IC 5-10.2-2-1.5.
(k) A benefit specified in this section shall be forfeited and
credited to the member's retirement fund if no person entitled to the
benefit claims it within three (3) years after the member's death.
However, the board may honor a claim that is made more than three
(3) years after the member's death if the board finds, in the board's
discretion, that:
(1) the delay in making the claim was reasonable or other
extenuating circumstances justify the award of the benefit to the
claimant; and
(2) paying the claim would not cause a violation of the
applicable Internal Revenue Service rules. As added by P.L.55-1989, SEC.14. Amended by P.L.4-1990, SEC.5;
P.L.43-1991, SEC.2; P.L.35-1996, SEC.1; P.L.22-1998, SEC.5;
P.L.118-2000, SEC.2; P.L.190-2003, SEC.1; P.L.99-2007, SEC.15;
P.L.113-2009, SEC.1; P.L.115-2009, SEC.2; P.L.1-2010, SEC.18.
IC 5-10.2-3-7.5 Version b Survivor benefits; forfeiture
Note: This version of section effective 7-1-2010. See also
preceding version of this section, effective until 7-1-2010.
Sec. 7.5. (a) This subsection applies to members who die after
March 31, 1990, and before January 1, 2007. A surviving dependent
or surviving spouse of a member who dies in service is entitled to a
survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if the
member died in service as a member of the general
assembly;
(B) at least fifteen (15) years of creditable service, if the
member died in service in any other position covered by the
retirement fund; or
(C) at least ten (10) years but not more than fourteen (14)
years of creditable service if the member:
(i) was at least sixty-five (65) years of age; and
(ii) died in service in a position covered by the teachers'
retirement fund; and
(2) the surviving dependent or surviving spouse qualifies for a
survivor benefit under subsection (c) or (d).
(b) This subsection applies to members who die after December
31, 2006. A surviving dependent or surviving spouse of a member
who dies is entitled to a survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if the
member died in service as a member of the general
assembly;
(B) at least ten (10) years but not more than fourteen (14)
years of creditable service if the member was at least
sixty-five (65) years of age and died in service in a position
covered by the fund (other than a position described in
clause (A)); or
(C) at least fifteen (15) years of creditable service, if the
member died in service in a position covered by the fund
(other than a position described in clause (A)); and
(2) the surviving dependent or surviving spouse qualifies for a
survivor benefit under subsection (c) or (d).
(c) If a member described in subsection (a) or (b) dies with a
surviving spouse who was married to the member for at least two (2)
years, the surviving spouse is entitled to a survivor benefit equal to
the monthly pension benefit that would have been payable to the
spouse under the joint and survivor option of IC 5-10.2-4-7 upon the
member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. However, benefits payable under this subsection
are subject to subsections (f) and (h).
(d) If a member described in subsection (a) or (b) dies without a
surviving spouse who was married to the member for at least two (2)
years, but with a surviving dependent, the surviving dependent is
entitled to a survivor benefit in a monthly amount equal to the
actuarial equivalent of the monthly pension benefit that would have
been payable to the spouse (assuming the spouse would have had the
same birth date as the member) under the joint and survivor option
of IC 5-10.2-4-7 upon the member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. If there are two (2) or more surviving dependents,
the actuarial equivalent of the benefit described in this subsection
shall be calculated and, considering the dependents' attained ages, an
equal dollar amount shall be determined as the monthly pension
benefit to be paid to each dependent. Monthly pension benefits under
this subsection are payable until the date the dependent becomes
eighteen (18) years of age or dies, whichever is earlier. However, if
a dependent has a permanent and total disability (using disability
guidelines established by the Social Security Administration) at the
date the dependent reaches eighteen (18) years of age, the monthly
pension benefit is payable until the date the dependent no longer has
a disability (using disability guidelines established by the Social
Security Administration) or dies, whichever is earlier. Benefits
payable under this subsection are subject to subsections (f) and (h).
(e) This subsection applies if a member did not designate a
beneficiary or the designated beneficiary does not survive the
member. Except as provided in subsections (f) and (i), the surviving
spouse or surviving dependent of a member who is entitled to a
survivor benefit under subsection (c) or (d) or section 7.6 of this
chapter may elect to receive a lump sum payment of the total amount
credited to the member in the member's annuity savings account or
an amount equal to the member's federal income tax basis in the
member's annuity savings account as of December 31, 1986. A
surviving spouse or surviving dependent who makes such an election
is not entitled to an annuity as part of the survivor benefit under
subsection (c) or (d) or section 7.6 of this chapter to the extent of the
lump sum payment.
(f) If a member is survived by a designated beneficiary, the
following provisions apply:
(1) If the member is survived by one (1) designated beneficiary,
the designated beneficiary is entitled to receive in a lump sum
or over a period of up to five (5) years, as elected by the
designated beneficiary, the amount credited to the member's
annuity savings account, less any disability benefits paid to the
member.
(2) If the member is survived by two (2) or more designated
beneficiaries, the designated beneficiaries are entitled to receive
in a lump sum or over a period of up to five (5) years, as elected
by the designated beneficiary, equal shares of the amount
credited to the member's annuity savings account unless the
member has allocated the shares among the designated
beneficiaries in a manner authorized under IC 5-10.3-8-15 or
IC 5-10.4-4-10, less any disability benefits paid to the member.
(3) If the member is also survived by a spouse or dependent
who is entitled to a survivor benefit under subsection (c) or (d)
or section 7.6 of this chapter, the surviving spouse or dependent
is not entitled to an annuity or a lump sum payment as part of
the survivor benefit, unless the surviving spouse or dependent
is also a designated beneficiary.
(g) If a member dies:
(1) without a surviving spouse or surviving dependent who
qualifies for survivor benefits under subsection (c) or (d) or
section 7.6 of this chapter; and
(2) without a surviving designated beneficiary who is entitled
to receive the member's annuity savings account under
subsection (f);
the amount credited to the member's annuity savings account, less
any disability benefits paid to the member, shall be paid to the
member's estate.
(h) Survivor benefits payable under this section or section 7.6 of
this chapter shall be reduced by any disability benefits paid to the
member.
(i) Additional annuity contributions, if any, shall not be included
in determining survivor benefits under subsection (c) or (d) or
section 7.6 of this chapter, but are payable in a lump sum payment to:
(1) the member's surviving designated beneficiary; or
(2) the member's estate, if there is no surviving designated
beneficiary.
(j) Survivor benefits provided under this section or section 7.6 of
this chapter are subject to IC 5-10.2-2-1.5.
(k) A benefit specified in this section shall be forfeited and
credited to the member's retirement fund if no person entitled to the
benefit claims it within three (3) years after the member's death.
However, the board may honor a claim that is made more than three
(3) years after the member's death if the board finds, in the board's
discretion, that:
(1) the delay in making the claim was reasonable or other
extenuating circumstances justify the award of the benefit to the
claimant; and
(2) paying the claim would not cause a violation of the
applicable Internal Revenue Service rules. As added by P.L.55-1989, SEC.14. Amended by P.L.4-1990, SEC.5;
P.L.43-1991, SEC.2; P.L.35-1996, SEC.1; P.L.22-1998, SEC.5;
P.L.118-2000, SEC.2; P.L.190-2003, SEC.1; P.L.99-2007, SEC.15;
P.L.113-2009, SEC.1; P.L.115-2009, SEC.2; P.L.1-2010, SEC.18;
P.L.99-2010, SEC.3.
IC 5-10.2-3-7.6 Survivor benefits of member with 30 years creditable service
Sec. 7.6. (a) This section applies to the surviving spouse and the
surviving dependent of a member who:
(1) dies after June 30, 1996;
(2) has at least thirty (30) years of creditable service; and
(3) dies in service in a position covered by the fund.
(b) If a member described in subsection (a) dies with a surviving
spouse who was married to the member for at least two (2) years, the
board may determine that the surviving spouse is entitled to a
survivor benefit equal to the monthly benefit that would have been
payable to the spouse under the joint and survivor option of
IC 5-10.2-4-7 upon the member's death following retirement at:
(1) fifty-five (55) years of age; or
(2) the actual date of death;
whichever is later. However, benefits payable under this section are
subject to section 7.5(f) and 7.5(h) of this chapter.
(c) If a member described in subsection (a) dies without a
surviving spouse who was married to the member for at least two (2)
years, but with a surviving dependent, the board may determine that
the surviving dependent is entitled to a survivor benefit in a monthly
amount equal to the actuarial equivalent of the monthly benefit that
would have been payable to the spouse (assuming the spouse would
have had the same birth date as the member) under the joint and
survivor option of IC 5-10.2-4-7 upon the member's death following
retirement at:
(1) fifty-five (55) years of age; or
(2) the actual date of death;
whichever is later. If there are two (2) or more surviving dependents,
the actuarial equivalent of the benefit described in this subsection
shall be calculated and, considering the dependents' attained ages, an
equal dollar amount shall be determined as the monthly benefit to be
paid to each dependent. Monthly benefits under this subsection are
payable until the date the dependent becomes eighteen (18) years of
age or dies, whichever is earlier. However, if a dependent has a
permanent and total disability (using disability guidelines established
by the Social Security Administration) on the date the dependent
becomes eighteen (18) years of age, the monthly benefit is payable
until the date the dependent no longer has a disability (using
disability guidelines established by the Social Security
Administration) or dies, whichever is earlier. Benefits payable under
this section are subject to section 7.5(f) and 7.5(h) of this chapter. As added by P.L.35-1996, SEC.2. Amended by P.L.99-2007, SEC.16;
P.L.113-2009, SEC.2.
IC 5-10.2-3-8 Survivor benefits; death while not in service
Sec. 8. (a) If a member dies:
(1) after March 31, 1990;
(2) while not in service in a position covered by the retirement
fund; and
(3) while eligible to receive retirement or disability benefits
under IC 5-10.2-4-6, but before applying for those benefits;
the member's surviving spouse or surviving dependent is entitled to
survivor benefits in the same amount and under the same conditions
as provided in section 7.5 of this chapter.
(b) If a member dies while not in service and while not eligible for
retirement or disability retirement, the sum payable upon suspension
of membership shall be paid to the member's surviving designated
beneficiary or to the member's estate if no beneficiary is designated.
(c) The sums specified in subsections (a) and (b) shall be forfeited
and credited to the member's retirement fund if no beneficiary or
other person entitled to the money under subsection (a) or (b) claims
it within three (3) years after the member's death. However, the board
may honor a claim made more than three (3) years after the member's
death if the board finds, in the board's discretion, that:
(1) the member died after August 31, 1992; and
(2) either:
(A) the delay in making the claim was reasonable; or
(B) other extenuating circumstances justify the award of the
benefit to the claimant.
(d) Survivor benefits payable under this section shall be reduced
by any disability benefits paid to the member under the same
conditions as provided in section 7.5 of this chapter. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985,
SEC.11; P.L.55-1989, SEC.15; P.L.4-1990, SEC.6; P.L.56-1993,
SEC.1; P.L.22-1993, SEC.2; P.L.119-2006, SEC.1.
IC 5-10.2-3-9 Survivor benefits; death after July 1, 1991, while eligible for
retirement benefits
Sec. 9. (a) This section applies if the following conditions are met.
A member dies:
(1) after July 1, 1991; and
(2) while receiving or while eligible to receive retirement
benefits under IC 5-10.2-4-1 from the fund.
(b) As used in this section, "minimum amount" means the entire
amount credited to the member's annuity savings account at the time
of:
(1) retirement; or
(2) death while entitled to retirement benefits;
minus all benefits paid to the member and the member's survivors.
(c) If the member dies without a survivor entitled to benefits and
the member has not received payments equal to or more than the
minimum amount, the difference shall be paid in a lump sum to the
member's designated beneficiary or beneficiaries in equal shares. If
the member dies without a surviving designated beneficiary, the
difference shall be paid in a lump sum to the member's estate.
(d) If the member dies with a survivor entitled to benefits, no
payment under this section shall be calculated until after all survivors
die. If, at the time of death of the last survivor, the member and all
survivors have not received payments equal to or more than the
minimum amount, the difference shall be paid in a lump sum to the
survivor's estate. As added by P.L.43-1991, SEC.3.
IC 5-10.2-3-10 Rollover distributions
Sec. 10. (a) To the extent permitted by the Internal Revenue Code
and the applicable regulations, the fund may accept, on behalf of any
active member, a rollover distribution from any of the following:
(1) A qualified plan described in Section 401(a) or Section
403(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 maintained by a state, a political
subdivision of a state, or an agency or instrumentality of a state
or political subdivision of a state under Section 457(b) of the
Internal Revenue Code.
(4) An individual retirement account or annuity described in
Section 408(a) or Section 408(b) of the Internal Revenue Code.
(b) Any amounts rolled over under subsection (a) must be
accounted for in a "rollover account" that is separate from the
member's annuity savings account.
(c) A member may direct the investment of the member's rollover
account into any alternative investment option that the board may
make available to the member's rollover account under IC 5-10.2-2-3.
However, the member may not invest the member's rollover account
in the guaranteed fund.
(d) A member may withdraw the member's rollover account from
the fund in a lump sum at any time before retirement. At retirement,
the member may withdraw the member's rollover account in
accordance with the retirement options that are available for the
member's annuity savings account, including the deferral of a
withdrawal. As added by P.L.61-2002, SEC.5.
IC 5-10.2-3
Chapter 3. Creditable Service; Contributions; Withdrawals; Death
Settlements
IC 5-10.2-3-1 Creditable service
Sec. 1. (a) Except as provided in IC 5-10.2-4-8(d), each member's
creditable service, for the purpose of computing benefits under this
article, consists of all service in a position covered by a retirement
fund plus all other service for which the retirement fund law gives
credit.
(b) No member may be required to pay any contributions for
service before the member is covered by this article as a condition
precedent to receiving benefits under this article. However, the
member must furnish proof of the service to the board of the fund
under which the member claims service.
(c) A member who has past service as an employee of the state or
a participating political subdivision in a position which was not
covered by the retirement fund is entitled to credit for this service if
the position becomes covered before January 1, 1985, by the Indiana
state teachers' retirement fund, the public employees' retirement fund,
or the retirement fund for the state board of accounts and if the
member submits proof of the service to the secretary of the fund in
which the member claims service.
(d) A member who has past service in a position that was not
covered by the retirement fund is entitled to credit for this service if
the position becomes covered after December 31, 1984, by a fund
while the member holds that position or another position with the
same employer and if the member submits proof of the service to the
director of the fund in which the member claims service.
(e) The proof required by this section must:
(1) be submitted in a form approved by the director;
(2) contain dates and nature of service and other information
required by the director; and
(3) be certified by the governing body or its agent.
(f) A member who is a state employee is entitled to service credit
for the time the member is receiving disability benefits under a
disability plan established under IC 5-10-8-7.
(g) If a participant in the legislators' defined benefit plan does not
become entitled to a benefit from that plan, the PERF board or the
TRF board shall include the participant's service in the general
assembly in the determination of eligibility for, and computation of,
benefits under PERF or TRF at the time the participant would be
eligible to receive benefits under PERF or TRF. After benefits
commence under PERF or TRF with the general assembly service
included, the participant's general assembly service may not be used
for the computation of benefits under IC 2-3.5-4.
(h) A member may receive service credit for all or a part of the
member's creditable service in another governmental retirement plan
under IC 5-10.3-7-4.5 and IC 5-10.4-4-4. A member may not receive
credit for service for which the member receives service credit in
another retirement plan maintained by a state, a political subdivision,
or an instrumentality of the state for service that PERF or TRF would
otherwise give credit.
(i) A member may use all or a part of the member's creditable
service under PERF or TRF in another governmental retirement plan
under the terms of the other plan. Creditable service used under the
other governmental retirement plan may not be used in PERF or
TRF. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.28-1984,
SEC.1; P.L.5-1990, SEC.5; P.L.43-1991, SEC.1; P.L.22-1998,
SEC.3; P.L.2-2006, SEC.23; P.L.72-2007, SEC.2; P.L.1-2009,
SEC.17.
IC 5-10.2-3-1.2 Additional service credit purchase
Sec. 1.2. (a) A member who has earned at least ten (10) years of
service in a position covered by PERF, TRF, or a combination of the
two (2) funds may purchase one (1) year of service credit for each
five (5) years of service that the member has completed in a position
covered by PERF or TRF.
(b) Before a member retires, a member who desires to purchase
additional service credit under subsection (a) must contribute to the
fund as follows:
(1) Contributions that are equal to the product of the following:
(A) The member's salary at the time the member actually
makes a contribution for the service credit.
(B) A rate, determined by the actuary for the fund, that is
based on the age of the member at the time the member
actually makes a contribution for the service credit and
computed to result in a contribution amount that
approximates the actuarial present value of the benefit
attributable to the service credit purchased.
(C) The number of years of service credit the member
intends to purchase.
(2) Contributions for any accrued interest, at a rate determined
by the actuary for the fund, for the period from the member's
initial membership in the fund to the date payment is made by
the member.
(c) The following apply to the purchase of service credit under
this section:
(1) The board may allow a member to make periodic payments
of the contributions required for the purchase of service credit.
The board shall determine the length of the period during which
the payments must be made.
(2) The board may deny an application for the purchase of
service credit if the purchase would exceed the limitations
under Section 415 of the Internal Revenue Code.
(3) A member may not claim the service credit for the purpose
of computing benefits unless the member has made all
payments required for the purchase of the service credit.
(4) To the extent permitted by the Internal Revenue Code and
applicable regulations, a member may purchase service credit
under this section by a rollover distribution to the fund from any
of the following:
(A) A qualified plan described in Section 401(a) or Section
403(a) of the Internal Revenue Code.
(B) An annuity contract or account described in Section
403(b) of the Internal Revenue Code.
(C) An eligible plan that is maintained by a state, a political
subdivision of a state, or an agency or instrumentality of a
state or political subdivision of a state under Section 457(b)
of the Internal Revenue Code.
(D) An individual retirement account or annuity described in
Section 408(a) or Section 408(b) of the Internal Revenue
Code.
(d) A member who terminates employment before satisfying the
eligibility requirements necessary to receive a monthly benefit may
withdraw the purchase amount, plus accumulated interest, after
submitting a properly completed application for a refund to the fund.
However, the member must also apply for a refund of the member's
entire annuity savings account under section 6 or 6.5 of this chapter
to be eligible for a refund of the member's rollover amount.
(e) For a member who is a state employee, the employer may pay
all or a part of the member contributions required for the purchase of
service credit under this section. In that event, the actuary shall
determine the amortization, and subsections (c)(1), (c)(3), (c)(4), and
(d) do not apply.
(f) For a member who is an employee of a participating political
subdivision, the employer may adopt an ordinance to pay all or a part
of the member contributions required for the purchase of service
credit under this section. In that event, the actuary shall determine
the amortization, and subsections (c)(1), (c)(3), (c)(4), and (d) do not
apply. As added by P.L.61-2002, SEC.3. Amended by P.L.115-2008, SEC.6.
IC 5-10.2-3-2 Members' contributions; employers picking up
Sec. 2. (a) Subject to IC 5-10.2-2-1.5, as used in this section,
"compensation" means:
(1) the basic salary earned by and paid to the member; plus
(2) the amount that would have been a part of the basic salary
earned and paid except for the member's salary reduction
agreement established under Section 125, 403(b), or 457 of the
Internal Revenue Code.
(b) Except in cases where:
(1) the contribution is made on behalf of the member; or
(2) a retired member of the Indiana state teachers' retirement
fund may not make contributions during a period of
reemployment as provided in IC 5-10.2-4-8(d);
each member shall, as a condition of employment, contribute to the
fund three percent (3%) of the member's compensation.
(c) Except as provided in IC 5-10.2-4-8(d), a member of a fund
may make contributions to the member's annuity savings account in
addition to the contributions required under subsection (b). The total
amount of contributions that may be made to a member's annuity
savings account with respect to a payroll period under this subsection
may not exceed ten percent (10%) of the member's compensation for
that payroll period. The contributions made under this subsection
may be picked-up and paid by an employer as provided in subsection
(d).
(d) In compliance with rules adopted by each board, an employer,
under Section 414(h)(2) of the Internal Revenue Code, may pick-up
and pay the contributions under subsection (c), subject to approval
of the board and to the board's receipt of a favorable private letter
ruling from the Internal Revenue Service. The employer shall reduce
the member's compensation by an amount equal to the amount of the
member's contributions under subsection (c) that are picked-up by
the employer. Each board shall by rule establish the procedural
requirements for employers to carry out the pick-up in compliance
with Section 414(h)(2) of the Internal Revenue Code.
(e) A member's contributions and interest credits belong to the
member and do not belong to the state or political subdivision. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985,
SEC.8; P.L.55-1989, SEC.13; P.L.53-2000, SEC.1; P.L.246-2001,
SEC.4; P.L.72-2007, SEC.3; P.L.1-2009, SEC.18.
IC 5-10.2-3-3 Deduction of contributions
Sec. 3. (a) This section does not apply to a member of the Indiana
state teachers' retirement fund who is reemployed more than thirty
(30) days after the member's retirement in a position covered by the
Indiana state teachers' retirement fund.
(b) Members' contributions, other than members' contributions
paid on behalf of a member, shall be deducted from their
compensation even if the net compensation to the member is less
than the statutory minimum.
(c) The payment of a member's compensation minus the deduction
constitutes a complete discharge of all claims for services rendered
by the member during the period covered by the payment, except the
claim for benefits under this article. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.41-1983,
SEC.5; P.L.35-1985, SEC.9; P.L.72-2007, SEC.4; P.L.76-2008,
SEC.1.
IC 5-10.2-3-4
Repealed
(Repealed by P.L.46-1988, SEC.14.) IC 5-10.2-3-5 Suspension of membership
Sec. 5. (a) A member who is not eligible for retirement or
disability retirement may suspend the member's membership if the
member terminates employment.
(b) After five (5) continuous years in which the member performs
no service, the member's membership shall be automatically
suspended by the board unless the member has vested status.
(c) The board may suspend a member's membership in the fund if:
(1) the member has not performed any service in a covered
position during the past two (2) years;
(2) the member has not attained vested status in the fund; and
(3) the value of the member's annuity savings account is not
more than one thousand dollars ($1,000).
(d) On resuming service the member may claim as creditable
service the period of employment before the suspension of
membership, but only to the extent that the same period of
employment is not being used by another governmental plan for
purposes of the member's benefit in the other governmental plan. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.22-1998,
SEC.4; P.L.195-1999, SEC.11; P.L.165-2009, SEC.5.
IC 5-10.2-3-6 Withdrawal of contributions
Sec. 6. (a) After a member suspends his membership, he is
entitled to withdraw in a lump sum the amount of his contributions
plus interest credited to him.
(b) Except as provided in subsection (c), if the member does not
claim his moneys within five (5) years after the suspension, the
moneys shall be credited to the retirement fund. Any reasonable costs
of locating the member or the member's beneficiary may be charged
against the member's or the beneficiary's money. The fund shall
retain the moneys until the member claims them, with no further
interest credits to the member after the moneys are credited to the
fund.
(c) If a member suspends membership in the fund because the
member is no longer in a covered position but does not separate from
employment with the member's employer, money shall be credited to
the retirement fund only if the member does not claim the member's
money within forty-five (45) years after the suspension.
(d) If a member is suspended under section (5)(c) of this chapter,
the board shall pay the member's annuity savings account in a lump
sum. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.25-1994,
SEC.3; P.L.2-1995, SEC.15; P.L.195-1999, SEC.12.
IC 5-10.2-3-6.2 Withdrawal of contributions to purchase creditable service in
another governmental retirement plan
Sec. 6.2. (a) This section applies to a member of the Indiana state
teachers' retirement fund.
(b) A member who:
(1) has attained vested status in the fund;
(2) has terminated employment;
(3) has not begun receiving benefits; and
(4) is transferring creditable service earned under TRF to
another governmental retirement plan under section 1(i) of this
chapter;
may suspend the member's membership and withdraw the member's
annuity savings account to purchase creditable service in the other
governmental retirement plan. As added by P.L.61-2002, SEC.4. Amended by P.L.115-2008, SEC.7.
IC 5-10.2-3-6.3 Suspension of membership; transfer of amount in annuity savings
account to purchase service credit in sheriff's pension trust
Sec. 6.3. (a) Notwithstanding any other provision in this article,
IC 5-10.3, or IC 5-10.4, a member who:
(1) has not attained vested status in the fund;
(2) is not an active participant in the fund; and
(3) is an active participant in a retirement plan established under
IC 36-8-10-12;
may suspend membership in the fund and transfer the entire amount
in the member's annuity savings account in accordance with the
member's purchase of service credit under IC 36-8-10-12.5.
(b) A member who makes a transfer under IC 36-8-10-12.5 from
the member's annuity savings account shall provide notice of the
transfer on a form provided by the board.
(c) A transfer under IC 36-8-10-12.5 is irrevocable.
(d) A member who makes a transfer under this section waives all
credit for service in the fund. As added by P.L.98-2009, SEC.1.
IC 5-10.2-3-6.5 Withdrawal of annuity savings account before retirement
Sec. 6.5. (a) A member who meets all of the following
requirements may elect to withdraw the entire amount in the
member's annuity savings account before the member is eligible to
do so at retirement under IC 5-10.2-4-2:
(1) The member has attained vested status in the fund.
(2) The member has terminated employment with the applicable
fund and is not currently employed in a covered position.
(3) The member has not performed any service in a position
covered by the fund for at least thirty (30) days after the date
the member terminates employment.
(4) The member makes the election described in this subsection:
(A) after December 31, 2008, if the member is a member of
the public employees' retirement fund; or
(B) after June 30, 2009, if the member is a member of the
Indiana state teachers' retirement fund.
(5) Except as provided in subsection (b), the member is not
eligible for a reduced or unreduced retirement on the date the
fund receives notice of the election described in this subsection.
(b) The requirement described in subsection (a)(5) does not apply
to a member of the public employees' retirement fund who:
(1) was eligible for a reduced or unreduced retirement; and
(2) received a distribution under this section;
after December 31, 2008, and before January 1, 2010.
(c) A member who elects to withdraw the entire amount in the
member's annuity savings account under subsection (a) shall provide
notice of the election on a form provided by the board.
(d) The election to withdraw the entire amount in the member's
annuity savings account is irrevocable.
(e) The board shall pay the amount in the member's annuity
savings account as a lump sum.
(f) Except as provided in subsection (g), a member who makes a
withdrawal under this section is entitled to receive, when the member
becomes eligible to receive a retirement benefit under IC 5-10.2-4,
a retirement benefit equal to the pension provided by employer
contributions computed under IC 5-10.2-4.
(g) A member who:
(1) transfers creditable service earned under the fund to another
governmental retirement plan under section 1(i) of this chapter;
and
(2) withdraws the member's annuity savings account under this
section to purchase the service;
may not use the transferred service in the computation of a retirement
benefit payable under subsection (f). As added by P.L.115-2008, SEC.8. Amended by P.L.115-2009,
SEC.1; P.L.99-2010, SEC.2.
IC 5-10.2-3-7
Repealed
(Repealed by P.L.55-1989, SEC.67.)
IC 5-10.2-3-7.1
Repealed
(Repealed by P.L.4-1990, SEC.22.)
IC 5-10.2-3-7.2
Repealed
(Repealed by P.L.55-1989, SEC.67.)
IC 5-10.2-3-7.5 Version a Survivor benefits; forfeiture
Note: This version of section effective until 7-1-2010. See also
following version of this section, effective 7-1-2010.
Sec. 7.5. (a) This subsection applies to members who die after
March 31, 1990, and before January 1, 2007. A surviving dependent
or surviving spouse of a member who dies in service is entitled to a
survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if the
member died in service as a member of the general
assembly;
(B) at least fifteen (15) years of creditable service, if the
member died in service in any other position covered by the
retirement fund; or
(C) at least ten (10) years but not more than fourteen (14)
years of creditable service if the member:
(i) was at least sixty-five (65) years of age; and
(ii) died in service in a position covered by the teachers'
retirement fund; and
(2) the surviving dependent or surviving spouse qualifies for a
survivor benefit under subsection (c) or (d).
(b) This subsection applies to members who die after December
31, 2006. A surviving dependent or surviving spouse of a member
who dies is entitled to a survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if the
member died in service as a member of the general
assembly;
(B) at least ten (10) years but not more than fourteen (14)
years of creditable service if the member was at least
sixty-five (65) years of age and died in service in a position
covered by the fund (other than a position described in
clause (A)); or
(C) at least fifteen (15) years of creditable service, if the
member died in service in a position covered by the fund
(other than a position described in clause (A)); and
(2) the surviving dependent or surviving spouse qualifies for a
survivor benefit under subsection (c) or (d).
(c) If a member described in subsection (a) or (b) dies with a
surviving spouse who was married to the member for at least two (2)
years, the surviving spouse is entitled to a survivor benefit equal to
the monthly pension benefit that would have been payable to the
spouse under the joint and survivor option of IC 5-10.2-4-7 upon the
member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. However, benefits payable under this subsection
are subject to subsections (f) and (h).
(d) If a member described in subsection (a) or (b) dies without a
surviving spouse who was married to the member for at least two (2)
years, but with a surviving dependent, the surviving dependent is
entitled to a survivor benefit in a monthly amount equal to the
actuarial equivalent of the monthly pension benefit that would have
been payable to the spouse (assuming the spouse would have had the
same birth date as the member) under the joint and survivor option
of IC 5-10.2-4-7 upon the member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. If there are two (2) or more surviving dependents,
the actuarial equivalent of the benefit described in this subsection
shall be calculated and, considering the dependents' attained ages, an
equal dollar amount shall be determined as the monthly pension
benefit to be paid to each dependent. Monthly pension benefits under
this subsection are payable until the date the dependent becomes
eighteen (18) years of age or dies, whichever is earlier. However, if
a dependent has a permanent and total disability (using disability
guidelines established by the Social Security Administration) at the
date the dependent reaches eighteen (18) years of age, the monthly
pension benefit is payable until the date the dependent no longer has
a disability (using disability guidelines established by the Social
Security Administration) or dies, whichever is earlier. Benefits
payable under this subsection are subject to subsections (f) and (h).
(e) This subsection applies if a member did not designate a
beneficiary or the designated beneficiary does not survive the
member. Except as provided in subsections (f) and (i), the surviving
spouse or surviving dependent of a member who is entitled to a
survivor benefit under subsection (c) or (d) or section 7.6 of this
chapter may elect to receive a lump sum payment of the total amount
credited to the member in the member's annuity savings account or
an amount equal to the member's federal income tax basis in the
member's annuity savings account as of December 31, 1986. A
surviving spouse or surviving dependent who makes such an election
is not entitled to an annuity as part of the survivor benefit under
subsection (c) or (d) or section 7.6 of this chapter to the extent of the
lump sum payment.
(f) If a member is survived by a designated beneficiary, the
following provisions apply:
(1) If the member is survived by one (1) designated beneficiary,
the designated beneficiary is entitled to receive in a lump sum
or over a period of up to five (5) years, as elected by the
designated beneficiary, the amount credited to the member's
annuity savings account, less any disability benefits paid to the
member.
(2) If the member is survived by two (2) or more designated
beneficiaries, the designated beneficiaries are entitled to receive
in a lump sum or over a period of up to five (5) years, as elected
by the designated beneficiary, equal shares of the amount
credited to the member's annuity savings account, less any
disability benefits paid to the member.
(3) If the member is also survived by a spouse or dependent
who is entitled to a survivor benefit under subsection (c) or (d)
or section 7.6 of this chapter, the surviving spouse or dependent
is not entitled to an annuity or a lump sum payment as part of
the survivor benefit, unless the surviving spouse or dependent
is also a designated beneficiary.
(g) If a member dies:
(1) without a surviving spouse or surviving dependent who
qualifies for survivor benefits under subsection (c) or (d) or
section 7.6 of this chapter; and
(2) without a surviving designated beneficiary who is entitled
to receive the member's annuity savings account under
subsection (f);
the amount credited to the member's annuity savings account, less
any disability benefits paid to the member, shall be paid to the
member's estate.
(h) Survivor benefits payable under this section or section 7.6 of
this chapter shall be reduced by any disability benefits paid to the
member.
(i) Additional annuity contributions, if any, shall not be included
in determining survivor benefits under subsection (c) or (d) or
section 7.6 of this chapter, but are payable in a lump sum payment to:
(1) the member's surviving designated beneficiary; or
(2) the member's estate, if there is no surviving designated
beneficiary.
(j) Survivor benefits provided under this section or section 7.6 of
this chapter are subject to IC 5-10.2-2-1.5.
(k) A benefit specified in this section shall be forfeited and
credited to the member's retirement fund if no person entitled to the
benefit claims it within three (3) years after the member's death.
However, the board may honor a claim that is made more than three
(3) years after the member's death if the board finds, in the board's
discretion, that:
(1) the delay in making the claim was reasonable or other
extenuating circumstances justify the award of the benefit to the
claimant; and
(2) paying the claim would not cause a violation of the
applicable Internal Revenue Service rules. As added by P.L.55-1989, SEC.14. Amended by P.L.4-1990, SEC.5;
P.L.43-1991, SEC.2; P.L.35-1996, SEC.1; P.L.22-1998, SEC.5;
P.L.118-2000, SEC.2; P.L.190-2003, SEC.1; P.L.99-2007, SEC.15;
P.L.113-2009, SEC.1; P.L.115-2009, SEC.2; P.L.1-2010, SEC.18.
IC 5-10.2-3-7.5 Version b Survivor benefits; forfeiture
Note: This version of section effective 7-1-2010. See also
preceding version of this section, effective until 7-1-2010.
Sec. 7.5. (a) This subsection applies to members who die after
March 31, 1990, and before January 1, 2007. A surviving dependent
or surviving spouse of a member who dies in service is entitled to a
survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if the
member died in service as a member of the general
assembly;
(B) at least fifteen (15) years of creditable service, if the
member died in service in any other position covered by the
retirement fund; or
(C) at least ten (10) years but not more than fourteen (14)
years of creditable service if the member:
(i) was at least sixty-five (65) years of age; and
(ii) died in service in a position covered by the teachers'
retirement fund; and
(2) the surviving dependent or surviving spouse qualifies for a
survivor benefit under subsection (c) or (d).
(b) This subsection applies to members who die after December
31, 2006. A surviving dependent or surviving spouse of a member
who dies is entitled to a survivor benefit if:
(1) the member has:
(A) at least ten (10) years of creditable service, if the
member died in service as a member of the general
assembly;
(B) at least ten (10) years but not more than fourteen (14)
years of creditable service if the member was at least
sixty-five (65) years of age and died in service in a position
covered by the fund (other than a position described in
clause (A)); or
(C) at least fifteen (15) years of creditable service, if the
member died in service in a position covered by the fund
(other than a position described in clause (A)); and
(2) the surviving dependent or surviving spouse qualifies for a
survivor benefit under subsection (c) or (d).
(c) If a member described in subsection (a) or (b) dies with a
surviving spouse who was married to the member for at least two (2)
years, the surviving spouse is entitled to a survivor benefit equal to
the monthly pension benefit that would have been payable to the
spouse under the joint and survivor option of IC 5-10.2-4-7 upon the
member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. However, benefits payable under this subsection
are subject to subsections (f) and (h).
(d) If a member described in subsection (a) or (b) dies without a
surviving spouse who was married to the member for at least two (2)
years, but with a surviving dependent, the surviving dependent is
entitled to a survivor benefit in a monthly amount equal to the
actuarial equivalent of the monthly pension benefit that would have
been payable to the spouse (assuming the spouse would have had the
same birth date as the member) under the joint and survivor option
of IC 5-10.2-4-7 upon the member's death following retirement at:
(1) fifty (50) years of age; or
(2) the actual date of death;
whichever is later. If there are two (2) or more surviving dependents,
the actuarial equivalent of the benefit described in this subsection
shall be calculated and, considering the dependents' attained ages, an
equal dollar amount shall be determined as the monthly pension
benefit to be paid to each dependent. Monthly pension benefits under
this subsection are payable until the date the dependent becomes
eighteen (18) years of age or dies, whichever is earlier. However, if
a dependent has a permanent and total disability (using disability
guidelines established by the Social Security Administration) at the
date the dependent reaches eighteen (18) years of age, the monthly
pension benefit is payable until the date the dependent no longer has
a disability (using disability guidelines established by the Social
Security Administration) or dies, whichever is earlier. Benefits
payable under this subsection are subject to subsections (f) and (h).
(e) This subsection applies if a member did not designate a
beneficiary or the designated beneficiary does not survive the
member. Except as provided in subsections (f) and (i), the surviving
spouse or surviving dependent of a member who is entitled to a
survivor benefit under subsection (c) or (d) or section 7.6 of this
chapter may elect to receive a lump sum payment of the total amount
credited to the member in the member's annuity savings account or
an amount equal to the member's federal income tax basis in the
member's annuity savings account as of December 31, 1986. A
surviving spouse or surviving dependent who makes such an election
is not entitled to an annuity as part of the survivor benefit under
subsection (c) or (d) or section 7.6 of this chapter to the extent of the
lump sum payment.
(f) If a member is survived by a designated beneficiary, the
following provisions apply:
(1) If the member is survived by one (1) designated beneficiary,
the designated beneficiary is entitled to receive in a lump sum
or over a period of up to five (5) years, as elected by the
designated beneficiary, the amount credited to the member's
annuity savings account, less any disability benefits paid to the
member.
(2) If the member is survived by two (2) or more designated
beneficiaries, the designated beneficiaries are entitled to receive
in a lump sum or over a period of up to five (5) years, as elected
by the designated beneficiary, equal shares of the amount
credited to the member's annuity savings account unless the
member has allocated the shares among the designated
beneficiaries in a manner authorized under IC 5-10.3-8-15 or
IC 5-10.4-4-10, less any disability benefits paid to the member.
(3) If the member is also survived by a spouse or dependent
who is entitled to a survivor benefit under subsection (c) or (d)
or section 7.6 of this chapter, the surviving spouse or dependent
is not entitled to an annuity or a lump sum payment as part of
the survivor benefit, unless the surviving spouse or dependent
is also a designated beneficiary.
(g) If a member dies:
(1) without a surviving spouse or surviving dependent who
qualifies for survivor benefits under subsection (c) or (d) or
section 7.6 of this chapter; and
(2) without a surviving designated beneficiary who is entitled
to receive the member's annuity savings account under
subsection (f);
the amount credited to the member's annuity savings account, less
any disability benefits paid to the member, shall be paid to the
member's estate.
(h) Survivor benefits payable under this section or section 7.6 of
this chapter shall be reduced by any disability benefits paid to the
member.
(i) Additional annuity contributions, if any, shall not be included
in determining survivor benefits under subsection (c) or (d) or
section 7.6 of this chapter, but are payable in a lump sum payment to:
(1) the member's surviving designated beneficiary; or
(2) the member's estate, if there is no surviving designated
beneficiary.
(j) Survivor benefits provided under this section or section 7.6 of
this chapter are subject to IC 5-10.2-2-1.5.
(k) A benefit specified in this section shall be forfeited and
credited to the member's retirement fund if no person entitled to the
benefit claims it within three (3) years after the member's death.
However, the board may honor a claim that is made more than three
(3) years after the member's death if the board finds, in the board's
discretion, that:
(1) the delay in making the claim was reasonable or other
extenuating circumstances justify the award of the benefit to the
claimant; and
(2) paying the claim would not cause a violation of the
applicable Internal Revenue Service rules. As added by P.L.55-1989, SEC.14. Amended by P.L.4-1990, SEC.5;
P.L.43-1991, SEC.2; P.L.35-1996, SEC.1; P.L.22-1998, SEC.5;
P.L.118-2000, SEC.2; P.L.190-2003, SEC.1; P.L.99-2007, SEC.15;
P.L.113-2009, SEC.1; P.L.115-2009, SEC.2; P.L.1-2010, SEC.18;
P.L.99-2010, SEC.3.
IC 5-10.2-3-7.6 Survivor benefits of member with 30 years creditable service
Sec. 7.6. (a) This section applies to the surviving spouse and the
surviving dependent of a member who:
(1) dies after June 30, 1996;
(2) has at least thirty (30) years of creditable service; and
(3) dies in service in a position covered by the fund.
(b) If a member described in subsection (a) dies with a surviving
spouse who was married to the member for at least two (2) years, the
board may determine that the surviving spouse is entitled to a
survivor benefit equal to the monthly benefit that would have been
payable to the spouse under the joint and survivor option of
IC 5-10.2-4-7 upon the member's death following retirement at:
(1) fifty-five (55) years of age; or
(2) the actual date of death;
whichever is later. However, benefits payable under this section are
subject to section 7.5(f) and 7.5(h) of this chapter.
(c) If a member described in subsection (a) dies without a
surviving spouse who was married to the member for at least two (2)
years, but with a surviving dependent, the board may determine that
the surviving dependent is entitled to a survivor benefit in a monthly
amount equal to the actuarial equivalent of the monthly benefit that
would have been payable to the spouse (assuming the spouse would
have had the same birth date as the member) under the joint and
survivor option of IC 5-10.2-4-7 upon the member's death following
retirement at:
(1) fifty-five (55) years of age; or
(2) the actual date of death;
whichever is later. If there are two (2) or more surviving dependents,
the actuarial equivalent of the benefit described in this subsection
shall be calculated and, considering the dependents' attained ages, an
equal dollar amount shall be determined as the monthly benefit to be
paid to each dependent. Monthly benefits under this subsection are
payable until the date the dependent becomes eighteen (18) years of
age or dies, whichever is earlier. However, if a dependent has a
permanent and total disability (using disability guidelines established
by the Social Security Administration) on the date the dependent
becomes eighteen (18) years of age, the monthly benefit is payable
until the date the dependent no longer has a disability (using
disability guidelines established by the Social Security
Administration) or dies, whichever is earlier. Benefits payable under
this section are subject to section 7.5(f) and 7.5(h) of this chapter. As added by P.L.35-1996, SEC.2. Amended by P.L.99-2007, SEC.16;
P.L.113-2009, SEC.2.
IC 5-10.2-3-8 Survivor benefits; death while not in service
Sec. 8. (a) If a member dies:
(1) after March 31, 1990;
(2) while not in service in a position covered by the retirement
fund; and
(3) while eligible to receive retirement or disability benefits
under IC 5-10.2-4-6, but before applying for those benefits;
the member's surviving spouse or surviving dependent is entitled to
survivor benefits in the same amount and under the same conditions
as provided in section 7.5 of this chapter.
(b) If a member dies while not in service and while not eligible for
retirement or disability retirement, the sum payable upon suspension
of membership shall be paid to the member's surviving designated
beneficiary or to the member's estate if no beneficiary is designated.
(c) The sums specified in subsections (a) and (b) shall be forfeited
and credited to the member's retirement fund if no beneficiary or
other person entitled to the money under subsection (a) or (b) claims
it within three (3) years after the member's death. However, the board
may honor a claim made more than three (3) years after the member's
death if the board finds, in the board's discretion, that:
(1) the member died after August 31, 1992; and
(2) either:
(A) the delay in making the claim was reasonable; or
(B) other extenuating circumstances justify the award of the
benefit to the claimant.
(d) Survivor benefits payable under this section shall be reduced
by any disability benefits paid to the member under the same
conditions as provided in section 7.5 of this chapter. As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985,
SEC.11; P.L.55-1989, SEC.15; P.L.4-1990, SEC.6; P.L.56-1993,
SEC.1; P.L.22-1993, SEC.2; P.L.119-2006, SEC.1.
IC 5-10.2-3-9 Survivor benefits; death after July 1, 1991, while eligible for
retirement benefits
Sec. 9. (a) This section applies if the following conditions are met.
A member dies:
(1) after July 1, 1991; and
(2) while receiving or while eligible to receive retirement
benefits under IC 5-10.2-4-1 from the fund.
(b) As used in this section, "minimum amount" means the entire
amount credited to the member's annuity savings account at the time
of:
(1) retirement; or
(2) death while entitled to retirement benefits;
minus all benefits paid to the member and the member's survivors.
(c) If the member dies without a survivor entitled to benefits and
the member has not received payments equal to or more than the
minimum amount, the difference shall be paid in a lump sum to the
member's designated beneficiary or beneficiaries in equal shares. If
the member dies without a surviving designated beneficiary, the
difference shall be paid in a lump sum to the member's estate.
(d) If the member dies with a survivor entitled to benefits, no
payment under this section shall be calculated until after all survivors
die. If, at the time of death of the last survivor, the member and all
survivors have not received payments equal to or more than the
minimum amount, the difference shall be paid in a lump sum to the
survivor's estate. As added by P.L.43-1991, SEC.3.
IC 5-10.2-3-10 Rollover distributions
Sec. 10. (a) To the extent permitted by the Internal Revenue Code
and the applicable regulations, the fund may accept, on behalf of any
active member, a rollover distribution from any of the following:
(1) A qualified plan described in Section 401(a) or Section
403(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 maintained by a state, a political
subdivision of a state, or an agency or instrumentality of a state
or political subdivision of a state under Section 457(b) of the
Internal Revenue Code.
(4) An individual retirement account or annuity described in
Section 408(a) or Section 408(b) of the Internal Revenue Code.
(b) Any amounts rolled over under subsection (a) must be
accounted for in a "rollover account" that is separate from the
member's annuity savings account.
(c) A member may direct the investment of the member's rollover
account into any alternative investment option that the board may
make available to the member's rollover account under IC 5-10.2-2-3.
However, the member may not invest the member's rollover account
in the guaranteed fund.
(d) A member may withdraw the member's rollover account from
the fund in a lump sum at any time before retirement. At retirement,
the member may withdraw the member's rollover account in
accordance with the retirement options that are available for the
member's annuity savings account, including the deferral of a
withdrawal. As added by P.L.61-2002, SEC.5.
