IC 5-10.3-7
Chapter 7. Membership; Creditable Service; Contributions;
Withdrawal
IC 5-10.3-7-1 Members of fund
Sec. 1. (a) This section does not apply to:
(1) members of the general assembly; or
(2) employees covered by section 3 of this chapter.
(b) An employee of the state or of a participating political
subdivision who:
(1) became a full-time employee of the state or of a
participating political subdivision in a covered position; and
(2) had not become a member of the fund;
before April 1, 1988, shall on April 1, 1988, become a member of the
fund unless the employee is excluded from membership under
section 2 of this chapter.
(c) Any individual who becomes a full-time employee of the state
or of a participating political subdivision in a covered position after
March 31, 1988, becomes a member of the fund on the date the
individual's employment begins unless the individual is excluded
from membership under section 2 of this chapter.
(d) For the purposes of this section, "employees of the state"
includes:
(1) employees of the judicial circuits whose compensation is
paid from state funds;
(2) elected and appointed state officers;
(3) prosecuting attorneys and deputy prosecuting attorneys of
the judicial circuits, whose compensation is paid in whole or in
part from state funds, including participants in the prosecuting
attorneys retirement fund established under IC 33-39-7;
(4) employees in the classified service;
(5) employees of any state department, institution, board,
commission, office, agency, court, or division of state
government receiving state appropriations and having the
authority to certify payrolls from appropriations or from a trust
fund held by the treasurer of state or by any department;
(6) employees of any state agency which is a body politic and
corporate;
(7) employees of the board of trustees of the public employees'
retirement fund;
(8) persons who:
(A) are employed by the state;
(B) have been classified as federal employees by the
Secretary of Agriculture of the United States; and
(C) are excluded from coverage as federal employees by the
federal Social Security program under 42 U.S.C. 410;
(9) the directors and employees of county offices of family and
children; and
(10) employees of the center for agricultural science and
IC 5-10.3-7-2 Exclusions from membership
Sec. 2. The following employees may not be members of the fund:
(1) Officials of a political subdivision elected by vote of the
people, unless the governing body specifically provides for the
participation of locally elected officials.
(2) Employees occupying positions normally requiring
performance of service of less than six hundred (600) hours
during a year who:
(A) were hired before July 1, 1982; or
(B) are employed by a participating school corporation.
(3) Independent contractors or officers or employees paid
wholly on a fee basis.
(4) Employees who occupy positions that are covered by other
pension or retirement funds or plans, maintained in whole or in
part by appropriations by the state or a political subdivision,
except:
(A) the federal Social Security program; and
(B) the prosecuting attorneys retirement fund established by
IC 33-39-7-9.
(5) Managers or employees of a license branch of the bureau of
motor vehicles commission, except those persons who may be
included as members under IC 9-16-4.
(6) Employees, except employees of a participating school
corporation, hired after June 30, 1982, occupying positions
normally requiring performance of service of less than one
thousand (1,000) hours during a year.
(7) Persons who:
(A) are employed by the state;
(B) have been classified as federal employees by the
Secretary of Agriculture of the United States; and
(C) are covered by the federal Social Security program as
federal employees under 42 U.S.C. 410.
(8) Members and employees of the state lottery commission. As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1978,
P.L.24, SEC.5; Acts 1982, P.L.37, SEC.3; P.L.31-1984, SEC.2;
P.L.42-1986, SEC.1; P.L.62-1987, SEC.1; P.L.61-1987, SEC.2;
P.L.341-1989(ss), SEC.5; P.L.62-1989, SEC.2; P.L.2-1991, SEC.26;
P.L.98-2004, SEC.68.
IC 5-10.3-7-2.5 Constables
Sec. 2.5. Notwithstanding the provisions of section 2 of this
chapter, any constable who:
(1) is not otherwise eligible for membership in the public
employees' retirement fund; and
(2) was enrolled erroneously in the public employees' retirement
fund as a contributing member;
is eligible for membership in the public employees' retirement fund
and is entitled to receive the benefits provided by that fund. As added by Acts 1981, P.L.51, SEC.1.
IC 5-10.3-7-2.7 Police officers and firefighters
Sec. 2.7. (a) This section applies only to an individual who:
(1) began service as a police officer or firefighter and became
a member of a police officers' pension fund or firefighters'
pension fund before 1980;
(2) began service in another position (referred to in this section
as the "PERF position") and was enrolled erroneously as a
contributing member of the public employees' retirement fund
with respect to the PERF position before 1980;
(3) made contributions to the public employees' retirement fund
with respect to the PERF position as if the individual had been
legally enrolled in that fund;
(4) after 1991 was denied service credit in the public
employees' retirement fund with respect to all or part of the
individual's service in the PERF position because of the
individual's service in the police officer or firefighter position
described in subdivision (1); and
(5) claims service credit in PERF and applies for membership
in PERF before January 1, 2000.
(b) Notwithstanding the provisions of section 2 of this chapter, an
individual described in subsection (a) who:
(1) is not otherwise eligible for membership in the public
employees' retirement fund; and
(2) was enrolled erroneously in the public employees' retirement
fund as a contributing member;
is eligible for membership in the public employees' retirement fund
and is entitled to receive the benefits provided by that fund. As added by P.L.195-1999, SEC.21.
IC 5-10.3-7-3 Optional membership
Sec. 3. (a) Members of the general assembly, including members
who:
(1) completed their service before July 1, 1987; and
(2) were not members of the fund during their service in the
general assembly;
are entitled to become, at their option, members of the fund. A
member of the general assembly who completed his service before
July 1, 1987, in order to become a member of the fund must apply to
the board for membership and must present evidence satisfactory to
the board of his prior service. Such a member of the general
assembly may become a member without any service after June 30,
1987.
(b) Notwithstanding the exclusion specified in section 2(4) of this
chapter, a member of the general assembly who is a member of the
Indiana state teachers' retirement fund and who retires after June 30,
1980, may choose at his retirement date to become a member of the
public employees' retirement fund and to receive his retirement
benefit from the fund.
(c) An employee who:
(1) was hired before July 1, 1982; or
(2) is employed by a participating school corporation;
and who is occupying a position normally requiring performance of
services of less than one thousand (1,000) hours a year may at his
option be a member of the fund. As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1980,
P.L.28, SEC.8; Acts 1982, P.L.37, SEC.4; P.L.30-1984, SEC.2;
P.L.381-1987(ss), SEC.2; P.L.46-1988, SEC.7.
IC 5-10.3-7-4 Creditable service
Sec. 4. Except as provided in section 7.5 of this chapter,
creditable service is determined as specified in IC 5-10.2-3-1.
Members also receive credit for service as specified in this chapter. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.60-1987,
SEC.2.
IC 5-10.3-7-4.5 Out-of-state service credit purchase
Sec. 4.5. (a) As used in this section, "out-of-state service" means
service in another state in a comparable position that would be
creditable service if performed in Indiana.
(b) Subject to subsections (c) through (f), a member may purchase
out-of-state service credit if the member meets the following
requirements:
(1) The member has at least one (1) year of creditable service
in the fund.
(2) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The member's salary at the time the member actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, based on
the age of the member at the time the member actually
makes a contribution for 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.
(iii) The number of years of out-of-state service the
member intends to purchase.
(B) 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.
(3) The member has received verification from the fund that the
out-of-state service is, as of that date, valid.
(c) Out-of-state years that qualify a member for retirement in an
out-of-state system or in any federal retirement system may not be
granted under this section.
(d) At least ten (10) years of service in Indiana is required before
a member may receive a benefit based on out-of-state service credits.
(e) A member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service from
another tax supported public employee retirement plan other
than under the Social Security Act;
may withdraw the purchase amount plus accumulated interest after
submitting a properly completed application for a refund to the fund.
(f) 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 the 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 purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit. As added by P.L.5-1997, SEC.4. Amended by P.L.22-1998, SEC.8.
IC 5-10.3-7-4.6 In-state service credit purchase
Sec. 4.6. (a) Subject to the provisions of this section, a member
may purchase service credit for the member's prior service in a
position covered by the 1925 police pension fund under IC 36-8-6,
the 1937 firefighters' pension fund under IC 36-8-7, or the 1953
police pension fund under IC 36-8-7.5 if the member meets the
following requirements:
(1) The member has at least one (1) year of credited service in
the fund.
(2) The member has not attained vested status in and is not an
active member of the 1925 police pension fund, the 1937
firefighters' pension fund, or the 1953 police pension fund.
(3) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The member's salary at the time the member actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, based on
the age of the member at the time the member actually
makes a contribution for 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.
(iii) The number of years of service credit the member
intends to purchase.
(B) 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.
(4) The member has received verification from the fund that the
service in the 1925 police pension fund, the 1937 firefighters'
pension fund, or the 1953 police pension fund is, as of that date,
valid.
(b) At least ten (10) years of service in Indiana is required before
a member may receive a benefit based on service credits purchased
under this section.
(c) A member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service from
another tax supported public employee retirement plan other
than under the Social Security Act;
may withdraw the purchase amount plus accumulated interest after
submitting a properly completed application for a refund to the fund.
(d) 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 the 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 purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit. As added by P.L.195-1999, SEC.22.
IC 5-10.3-7-4.8 State quasi-governmental entity service credit purchase
Sec. 4.8. (a) As used in this section, "state quasi-governmental
entity service" means service in Indiana that would be considered
creditable service if performed by an employee of a member of the
fund by an individual who:
(1) provided the service as an employee of a body corporate and
politic, nonprofit corporation established by the state, or other
quasi-governmental entity that performed a state governmental
function; and
(2) was not a member of the fund under section 1 of this chapter
during the period of employment.
(b) A member may purchase state quasi-governmental entity
service credit subject to the following:
(1) The member must have at least one (1) year of credited
service in the fund.
(2) The member must have at least ten (10) years of in-state
credited service before the member may claim the service
credit.
(3) Before the member retires, the member must make
contributions to the fund:
(A) that are equal to the product of:
(i) the member's salary at the time the member actually
makes a contribution for the service credit;
(ii) a percentage rate, as determined by the actuary of the
fund, based on the age of the member at the time the
member makes a contribution for 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; and
(iii) the number of years of state quasi-governmental entity
service the member intends to purchase; and
(B) for any accrued interest, at a rate determined by the
actuary of the fund, for the period from the member's initial
membership in the fund to the date payment is made by the
member.
(4) The member must provide verification of the service with
the state quasi-governmental entity in a manner prescribed by
the fund.
(c) State quasi-governmental entity service that qualifies a
member for retirement in a private retirement system or a federal
retirement system may not be granted under this section.
(d) A member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service from
another tax supported public employee retirement plan other
than under the federal Social Security Act;
may withdraw the personal contributions made under the
contributory plan plus accumulated interest after submitting to the
fund a properly completed application for a refund.
(e) 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 the 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 purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit. As added by P.L.148-2007, SEC.1.
IC 5-10.3-7-5 Military service credit
Sec. 5. (a) A member who:
(1) enters the United States armed services;
(2) leaves his contributions in the fund;
(3) except as provided in subsection (c), resumes service with
his employer within one hundred twenty (120) days after his
unconditional discharge; and
(4) would be entitled to service credit for military service under
the Uniformed Services Employment and Reemployment Rights
Act (38 U.S.C. 4301 et seq.) if the member had resumed service
with the member's employer within ninety (90) days after
discharge;
is entitled to service credit for the armed service.
(b) A state employee who left employment before January 1,
1946, or an employee of a political subdivision who left employment
before the participation date, to enter the United States armed
services is entitled to service credit for the armed service if he:
(1) except as provided in subsection (c), resumes service with
the employer within one hundred twenty (120) days after his
unconditional discharge; and
(2) would be entitled to service credit for military service under
the applicable requirements of federal law in effect at the time
of reemployment if the employee had resumed service with the
employee's employer within ninety (90) days after discharge.
(c) The board shall extend the one hundred twenty (120) day
reemployment requirement contained in subsection (a)(3) or (b)(1)
if the board determines that an illness, an injury, or a disability
related to the member's military service prevented the member from
resuming employment within one hundred twenty (120) days after
the member's discharge from military service. However, the board
may not extend the deadline beyond thirty (30) months after the
member's discharge.
(d) If a member retires and the board subsequently determines that
the member is entitled to additional service credit due to the
extension of a deadline under subsection (c), the board shall
recompute the member's benefit. However, the additional service
credit may be used only in the computation of benefits to be paid
after the date of the board's determination, and the member is not
entitled to a recomputation of benefits received before the date of the
board's determination.
(e) Notwithstanding any provision of this section, a member is
entitled to service credit and benefits in the amount and to the extent
required by the Uniformed Services Employment and Reemployment
Rights Act (38 U.S.C. 4301 et seq.).
(f) Subject to the provisions of this section, an active member may
purchase not more than two (2) years of service credit for the
member's service on active duty in the armed services if the member
meets the following conditions:
(1) The member has at least one (1) year of credited service in
the fund.
(2) The member serves on active duty in the armed services of
the United States for at least six (6) months.
(3) The member receives an honorable discharge from the
armed services.
(4) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The member's salary at the time the member actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, that is
based on the age of the member at the time the member
actually makes a contribution for 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.
(iii) The number of years of service credit the member
intends to purchase.
(B) Contributions for any accrued interest, at a rate
determined by the actuary of the fund, for the period from
the member's initial membership in the fund to the date
payment is made by the member.
However, a member is entitled to purchase service credit under this
subsection only to the extent that service credit is not granted for that
time under another provision of this section. At least ten (10) years
of service in Indiana is required before a member may receive a
benefit based on service credits purchased under this section. A
member who terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance or receives
a monthly allowance for the same service from another tax supported
public employee retirement plan other than under the federal Social
Security Act may withdraw the purchase amount plus accumulated
interest after submitting a properly completed application for a
refund to the fund.
(g) The following apply to the purchase of service credit under
subsection (f):
(1) The board may allow a member to make periodic payments
of the contributions required for the purchase of the 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 purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.43-1991,
SEC.5; P.L.5-1997, SEC.5; P.L.184-2001, SEC.8.
IC 5-10.3-7-6 Leave service credit
Sec. 6. Leave Service. (a) A member is entitled to service credit
for adoption leave of not more than one (1) year and for leaves of
absence, granted under rules in force at the time of the leave, totaling
six (6) months or less during any period of four (4) consecutive
years.
(b) A member may make contributions during the leave of
absence based on his rate of compensation on the date his leave of
absence began.
(c) Notwithstanding any law, this section must be administered in
a manner consistent with the Family and Medical Leave Act of 1993
(29 U.S.C. 2601 et seq.). A member on a leave of absence that
qualifies for the benefits and protections afforded by the Family and
Medical Leave Act is entitled to receive credit for vesting and
eligibility purposes to the extent required by the Family and Medical
Leave Act, but is not entitled to receive credit for service for benefit
purposes unless the leave is described in subsection (a). As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.5-1997,
SEC.6; P.L.195-1999, SEC.23.
IC 5-10.3-7-7 Service credits for public service
Sec. 7. (a) A member with at least one (1) year of service in a
position covered by the fund after January 1, 1946, shall receive
credit for years of service at any time as any of the following:
(1) A member of the general assembly.
(2) An elected state official.
(3) A prosecuting attorney of a judicial circuit.
(4) A judge who is covered by the judges' retirement system but
who is ineligible for its benefits.
(5) A member of the armed services if the member joined the
armed services while the member was a member of the general
assembly, including credit for the unexpired term if the
unexpired term of the member of the general assembly was
longer than the armed service.
As added by Acts 1977, P.L.53, SEC.3. Amended by
P.L.381-1987(ss), SEC.3; P.L.5-1988, SEC.34.
IC 5-10.3-7-7.5 Exclusion of service before prior service credit date contained in
resolution
Sec. 7.5. Notwithstanding IC 5-10.2-3-1, for the purpose of
computing benefits the creditable service of a member covered by an
ordinance or resolution adopted by a political subdivision's
governing body under IC 5-10.3-6-1(b) excludes all service with the
political subdivision before the prior service credit date contained in
the resolution. However, service with the political subdivision before
the prior service credit date shall be considered for the purpose of
determining eligibility for benefits. As added by P.L.60-1987, SEC.3.
IC 5-10.3-7-7.7 Employees of township trustee's office; service credit
Sec. 7.7. (a) For the purposes of computing benefits and
determining eligibility, a member who:
(1) has at least one (1) year of service in a position covered by
the fund;
(2) became a member of the fund after December 31, 1987;
(3) was at least sixty (60) years of age when the member joined
the fund; and
(4) before January 1, 1988, was an employee of a township
trustee's office:
(A) located in a county having a consolidated city; and
(B) participating in the fund;
is entitled to service credit as provided in subsections (b) and (c).
(b) A member who is qualified under subsection (a) is entitled to
service credit for the time the member:
(1) was an employee of a township trustee's office described in
subsection (a)(4);
(2) was employed in a position covered by the fund; and
(3) was not a member of the fund.
(c) To receive service credit under this section, a member must
pay into the fund the amount the member would have contributed if
the member had been a member of the fund for the period described
in subsection (b). As added by P.L.1-1990, SEC.59.
IC 5-10.3-7-7.8
Repealed
(Repealed by P.L.1-1990, SEC.60.)
IC 5-10.3-7-7.9 Service credits; eligibility; computation
Sec. 7.9. (a) This section applies to a person who is or was an
employee of the office of a township executive in a county having a
consolidated city.
(b) Except as provided in subsection (d), for the purposes of
computing benefits and determining eligibility, a member who:
(1) has at least one (1) year of service in a position covered by
the fund;
(2) became a member of the fund after December 31, 1987;
(3) was at least sixty (60) years of age when the member joined
the fund; and
(4) was an employee of the state or a political subdivision
participating in the fund, or both, before January 1, 1988;
is entitled to service credit as provided in subsection (c).
(c) A member who is qualified under subsection (b) is entitled to
service credit for the time the member:
(1) was an employee of the state or a political subdivision
participating in the fund, or both;
(2) was employed in a position covered by the fund; and
(3) was not a member of the fund.
(d) To receive service credit under this section, a member must
pay into the fund the amount the member would have contributed if
the member had been a member of the fund for the period described
in subsection (c). As added by P.L.1-1990, SEC.61.
IC 5-10.3-7-8 Other service
Sec. 8. Other Service. The board may establish rules to govern the
determination of service in cases not specifically provided for in this
article or in IC 5-10.2-3. As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-7-9 Member contributions
Sec. 9. Each member shall contribute three percent (3%) of his
compensation to the fund as specified in IC 5-10.2-3. However, for
a member who is a state employee, the employer shall pay the
contribution for the member, and for a member who is not a state
employee, the employer may pay all or a part of the contribution for
the member. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.41-1983,
SEC.8; P.L.35-1985, SEC.22; P.L.55-1989, SEC.23; P.L.246-2001,
SEC.11.
IC 5-10.3-7-9.5 Rollover contributions; trustee to trustee transfers; liability for
income tax consequences of transfers
Sec. 9.5. (a) The fund may accept cash rollover contributions from
a member who is making payments for additional service credits
under this chapter if the following conditions are met:
(1) The rollover contribution must represent:
(A) all or a portion of the member's interest in a retirement
plan of a former employer which is qualified under Section
401(a) of the Internal Revenue Code and which permits the
interest to be transferred to the fund as a qualifying rollover
contribution under the Internal Revenue Code;
(B) all or a portion of the member's interest from an
individual retirement account or annuity described in Section
408(a) or Section 408(b) of the Internal Revenue Code;
(C) all or a portion of the member's interest in:
(i) a qualified plan described in Section 403(a) of the
Internal Revenue Code; or
(ii) an annuity contract or account described in Section
403(b) of the Internal Revenue Code; or
(D) all or a portion of the member's interest in 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.
(2) The amount of the rollover contributions may not exceed the
amount of payment required to purchase the service credits
under this chapter.
(3) The rollover contributions may contain only tax-deferred
contributions and earnings on the contributions, and may not
include any post-tax contributions.
(4) The member must be otherwise eligible to purchase the
service credit under this chapter.
(b) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the fund may accept, on behalf of a member
who is purchasing permissive service credit under this chapter, a
trustee to trustee transfer from:
(1) an annuity contract or account described in Section 403(b)
of the Internal Revenue Code; or
(2) an eligible deferred compensation plan under Section 457(b)
of the Internal Revenue Code.
(c) The fund, the board, and their respective members, officers,
and employees do not have any responsibility or liability with respect
to the federal and state income tax consequences of any transfer
made to the fund under this section. The board may require, as a
condition to the fund's acceptance of a rollover contribution:
(1) satisfactory evidence that the proposed transfer is a
qualifying rollover contribution under the Internal Revenue
Code; and
(2) reasonable releases or indemnifications from the member
against any and all liabilities that may be connected with the
transfer.
(d) Cash transferred to the fund as a rollover contribution shall be
deposited in the retirement allowance account.
(e) A member who terminates employment before satisfying the
eligibility requirements necessary for a pension or disability benefit
may withdraw the member's rollover contribution, 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
IC 5-10.2-3 to be eligible for a refund of the member's rollover
amount.
(f) Except as provided in this section, the fund shall not accept
any other rollover contributions from a member.
(g) The board shall administer this section in accordance with the
rollover provisions of the Internal Revenue Code and any applicable
regulations. As added by P.L.5-1997, SEC.7. Amended by P.L.61-2002, SEC.8.
IC 5-10.3-7-10 Membership records
Sec. 10. Each department shall submit to the board certified
membership records containing the names, titles, rates of
compensation, dates of birth, length of service, and other pertinent
information required by the board about the department's employees.
A department must submit the membership record to the board not
more than thirty (30) days after the member's date of hire. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.195-1999,
SEC.24.
IC 5-10.3-7-11 Payroll preparation
Sec. 11. The director shall certify to the department the names of
the employees for whom deductions or payments of contributions
must be made. In the preparation of payrolls, each department shall
indicate:
(1) the total compensation of each employee;
(2) the amount of each member's contribution; and
(3) the net amount payable to each member.
No compensation may be paid and no payroll may be processed
unless the deduction or payment is made for members' contributions. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.41-1983,
SEC.9; P.L.5-1990, SEC.10.
IC 5-10.3-7-12 Certification of deductions; transfer to fund
Sec. 12. A certified copy of each department's payroll or an
equivalent certified list of members shall be sent to the board
together with a warrant issued by the department for members'
contributions. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.41-1983,
SEC.10.
IC 5-10.3-7-12.5 Reports, records, or membership payments; failure to submit
Sec. 12.5. (a) An employer or department shall make the reports,
membership records, or payments required by IC 5-10.3-6 or by
sections 10 through 12 of this chapter:
(1) not more than thirty (30) days after the end of the calendar
quarter, if applicable;
(2) another due date specified in sections 10 through 12 of this
chapter; or
(3) an alternate due date established by the rules of the board.
(b) If the employer or department does not make the reports,
records, or payments within the time specified in subsection (a):
(1) the board may fine the employer or department one hundred
dollars ($100) for each additional day that the reports, records,
or payments are late, to be withheld under IC 5-10.3-6-7; and
(2) if the employer or department is habitually late, as
determined by the board, the board shall report the employer or
the department to the auditor of state for additional withholding
under IC 5-10.3-6-7.
(c) After December 31, 2009, an employer or department shall
submit:
(1) the reports and records described in subsection (a) in a
uniform format through a secure connection over the Internet or
through other electronic means specified by the board in
accordance with IC 5-10.2-2-12.5; and
(2) both:
(A) employer contributions determined under
IC 5-10.2-2-11; and
(B) contributions paid by or on behalf of a member under
section 9 of this chapter;
by electronic funds transfer in accordance with
IC 5-10.2-2-12.5. As added by P.L.195-1999, SEC.25. Amended by P.L.165-2009,
SEC.6.
IC 5-10.3-7-13 Suspension of membership; withdrawal of contributions
Sec. 13. Suspension of Membership; Withdrawal of
Contributions. Each member who suspends his membership and
withdraws his contributions plus interest credits is covered by
IC 5-10.2-3. As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-7-14 Governor's waiver of membership
Sec. 14. Governor's Waiver of Membership. A governor who
makes an irrevocable choice under IC 4-3-3-1.1 to receive a
retirement benefit other than the retirement benefit from the fund
waives his right to membership in the fund and to any benefit from
the fund on and after the date of his irrevocable choice. After the
governor makes that irrevocable choice, he is entitled to withdraw in
a lump sum from the fund the amount of his contributions plus
interest credited to him. As added by Acts 1980, P.L.9, SEC.4. IC 5-10.3-7-15 Reinstatements of eligibility
Sec. 15. A person who has fifteen (15) or more years of creditable
service in the fund and has withdrawn from the fund before reaching
the age of sixty-five (65) years may apply for reinstatement of
eligibility, if the person:
(1) makes the application before July 1, 1998, and within ninety
(90) days after reaching the age of sixty-five (65) years; and
(2) demonstrates that further employment with an employer
covered by the fund is impractical due to health or other
conditions as determined by the board.
The board has the ultimate authority whether to grant reinstatements
of eligibility. As added by P.L.5-1997, SEC.8.
IC 5-10.3-7
Chapter 7. Membership; Creditable Service; Contributions;
Withdrawal
IC 5-10.3-7-1 Members of fund
Sec. 1. (a) This section does not apply to:
(1) members of the general assembly; or
(2) employees covered by section 3 of this chapter.
(b) An employee of the state or of a participating political
subdivision who:
(1) became a full-time employee of the state or of a
participating political subdivision in a covered position; and
(2) had not become a member of the fund;
before April 1, 1988, shall on April 1, 1988, become a member of the
fund unless the employee is excluded from membership under
section 2 of this chapter.
(c) Any individual who becomes a full-time employee of the state
or of a participating political subdivision in a covered position after
March 31, 1988, becomes a member of the fund on the date the
individual's employment begins unless the individual is excluded
from membership under section 2 of this chapter.
(d) For the purposes of this section, "employees of the state"
includes:
(1) employees of the judicial circuits whose compensation is
paid from state funds;
(2) elected and appointed state officers;
(3) prosecuting attorneys and deputy prosecuting attorneys of
the judicial circuits, whose compensation is paid in whole or in
part from state funds, including participants in the prosecuting
attorneys retirement fund established under IC 33-39-7;
(4) employees in the classified service;
(5) employees of any state department, institution, board,
commission, office, agency, court, or division of state
government receiving state appropriations and having the
authority to certify payrolls from appropriations or from a trust
fund held by the treasurer of state or by any department;
(6) employees of any state agency which is a body politic and
corporate;
(7) employees of the board of trustees of the public employees'
retirement fund;
(8) persons who:
(A) are employed by the state;
(B) have been classified as federal employees by the
Secretary of Agriculture of the United States; and
(C) are excluded from coverage as federal employees by the
federal Social Security program under 42 U.S.C. 410;
(9) the directors and employees of county offices of family and
children; and
(10) employees of the center for agricultural science and
IC 5-10.3-7-2 Exclusions from membership
Sec. 2. The following employees may not be members of the fund:
(1) Officials of a political subdivision elected by vote of the
people, unless the governing body specifically provides for the
participation of locally elected officials.
(2) Employees occupying positions normally requiring
performance of service of less than six hundred (600) hours
during a year who:
(A) were hired before July 1, 1982; or
(B) are employed by a participating school corporation.
(3) Independent contractors or officers or employees paid
wholly on a fee basis.
(4) Employees who occupy positions that are covered by other
pension or retirement funds or plans, maintained in whole or in
part by appropriations by the state or a political subdivision,
except:
(A) the federal Social Security program; and
(B) the prosecuting attorneys retirement fund established by
IC 33-39-7-9.
(5) Managers or employees of a license branch of the bureau of
motor vehicles commission, except those persons who may be
included as members under IC 9-16-4.
(6) Employees, except employees of a participating school
corporation, hired after June 30, 1982, occupying positions
normally requiring performance of service of less than one
thousand (1,000) hours during a year.
(7) Persons who:
(A) are employed by the state;
(B) have been classified as federal employees by the
Secretary of Agriculture of the United States; and
(C) are covered by the federal Social Security program as
federal employees under 42 U.S.C. 410.
(8) Members and employees of the state lottery commission. As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1978,
P.L.24, SEC.5; Acts 1982, P.L.37, SEC.3; P.L.31-1984, SEC.2;
P.L.42-1986, SEC.1; P.L.62-1987, SEC.1; P.L.61-1987, SEC.2;
P.L.341-1989(ss), SEC.5; P.L.62-1989, SEC.2; P.L.2-1991, SEC.26;
P.L.98-2004, SEC.68.
IC 5-10.3-7-2.5 Constables
Sec. 2.5. Notwithstanding the provisions of section 2 of this
chapter, any constable who:
(1) is not otherwise eligible for membership in the public
employees' retirement fund; and
(2) was enrolled erroneously in the public employees' retirement
fund as a contributing member;
is eligible for membership in the public employees' retirement fund
and is entitled to receive the benefits provided by that fund. As added by Acts 1981, P.L.51, SEC.1.
IC 5-10.3-7-2.7 Police officers and firefighters
Sec. 2.7. (a) This section applies only to an individual who:
(1) began service as a police officer or firefighter and became
a member of a police officers' pension fund or firefighters'
pension fund before 1980;
(2) began service in another position (referred to in this section
as the "PERF position") and was enrolled erroneously as a
contributing member of the public employees' retirement fund
with respect to the PERF position before 1980;
(3) made contributions to the public employees' retirement fund
with respect to the PERF position as if the individual had been
legally enrolled in that fund;
(4) after 1991 was denied service credit in the public
employees' retirement fund with respect to all or part of the
individual's service in the PERF position because of the
individual's service in the police officer or firefighter position
described in subdivision (1); and
(5) claims service credit in PERF and applies for membership
in PERF before January 1, 2000.
(b) Notwithstanding the provisions of section 2 of this chapter, an
individual described in subsection (a) who:
(1) is not otherwise eligible for membership in the public
employees' retirement fund; and
(2) was enrolled erroneously in the public employees' retirement
fund as a contributing member;
is eligible for membership in the public employees' retirement fund
and is entitled to receive the benefits provided by that fund. As added by P.L.195-1999, SEC.21.
IC 5-10.3-7-3 Optional membership
Sec. 3. (a) Members of the general assembly, including members
who:
(1) completed their service before July 1, 1987; and
(2) were not members of the fund during their service in the
general assembly;
are entitled to become, at their option, members of the fund. A
member of the general assembly who completed his service before
July 1, 1987, in order to become a member of the fund must apply to
the board for membership and must present evidence satisfactory to
the board of his prior service. Such a member of the general
assembly may become a member without any service after June 30,
1987.
(b) Notwithstanding the exclusion specified in section 2(4) of this
chapter, a member of the general assembly who is a member of the
Indiana state teachers' retirement fund and who retires after June 30,
1980, may choose at his retirement date to become a member of the
public employees' retirement fund and to receive his retirement
benefit from the fund.
(c) An employee who:
(1) was hired before July 1, 1982; or
(2) is employed by a participating school corporation;
and who is occupying a position normally requiring performance of
services of less than one thousand (1,000) hours a year may at his
option be a member of the fund. As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1980,
P.L.28, SEC.8; Acts 1982, P.L.37, SEC.4; P.L.30-1984, SEC.2;
P.L.381-1987(ss), SEC.2; P.L.46-1988, SEC.7.
IC 5-10.3-7-4 Creditable service
Sec. 4. Except as provided in section 7.5 of this chapter,
creditable service is determined as specified in IC 5-10.2-3-1.
Members also receive credit for service as specified in this chapter. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.60-1987,
SEC.2.
IC 5-10.3-7-4.5 Out-of-state service credit purchase
Sec. 4.5. (a) As used in this section, "out-of-state service" means
service in another state in a comparable position that would be
creditable service if performed in Indiana.
(b) Subject to subsections (c) through (f), a member may purchase
out-of-state service credit if the member meets the following
requirements:
(1) The member has at least one (1) year of creditable service
in the fund.
(2) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The member's salary at the time the member actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, based on
the age of the member at the time the member actually
makes a contribution for 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.
(iii) The number of years of out-of-state service the
member intends to purchase.
(B) 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.
(3) The member has received verification from the fund that the
out-of-state service is, as of that date, valid.
(c) Out-of-state years that qualify a member for retirement in an
out-of-state system or in any federal retirement system may not be
granted under this section.
(d) At least ten (10) years of service in Indiana is required before
a member may receive a benefit based on out-of-state service credits.
(e) A member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service from
another tax supported public employee retirement plan other
than under the Social Security Act;
may withdraw the purchase amount plus accumulated interest after
submitting a properly completed application for a refund to the fund.
(f) 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 the 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 purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit. As added by P.L.5-1997, SEC.4. Amended by P.L.22-1998, SEC.8.
IC 5-10.3-7-4.6 In-state service credit purchase
Sec. 4.6. (a) Subject to the provisions of this section, a member
may purchase service credit for the member's prior service in a
position covered by the 1925 police pension fund under IC 36-8-6,
the 1937 firefighters' pension fund under IC 36-8-7, or the 1953
police pension fund under IC 36-8-7.5 if the member meets the
following requirements:
(1) The member has at least one (1) year of credited service in
the fund.
(2) The member has not attained vested status in and is not an
active member of the 1925 police pension fund, the 1937
firefighters' pension fund, or the 1953 police pension fund.
(3) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The member's salary at the time the member actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, based on
the age of the member at the time the member actually
makes a contribution for 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.
(iii) The number of years of service credit the member
intends to purchase.
(B) 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.
(4) The member has received verification from the fund that the
service in the 1925 police pension fund, the 1937 firefighters'
pension fund, or the 1953 police pension fund is, as of that date,
valid.
(b) At least ten (10) years of service in Indiana is required before
a member may receive a benefit based on service credits purchased
under this section.
(c) A member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service from
another tax supported public employee retirement plan other
than under the Social Security Act;
may withdraw the purchase amount plus accumulated interest after
submitting a properly completed application for a refund to the fund.
(d) 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 the 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 purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit. As added by P.L.195-1999, SEC.22.
IC 5-10.3-7-4.8 State quasi-governmental entity service credit purchase
Sec. 4.8. (a) As used in this section, "state quasi-governmental
entity service" means service in Indiana that would be considered
creditable service if performed by an employee of a member of the
fund by an individual who:
(1) provided the service as an employee of a body corporate and
politic, nonprofit corporation established by the state, or other
quasi-governmental entity that performed a state governmental
function; and
(2) was not a member of the fund under section 1 of this chapter
during the period of employment.
(b) A member may purchase state quasi-governmental entity
service credit subject to the following:
(1) The member must have at least one (1) year of credited
service in the fund.
(2) The member must have at least ten (10) years of in-state
credited service before the member may claim the service
credit.
(3) Before the member retires, the member must make
contributions to the fund:
(A) that are equal to the product of:
(i) the member's salary at the time the member actually
makes a contribution for the service credit;
(ii) a percentage rate, as determined by the actuary of the
fund, based on the age of the member at the time the
member makes a contribution for 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; and
(iii) the number of years of state quasi-governmental entity
service the member intends to purchase; and
(B) for any accrued interest, at a rate determined by the
actuary of the fund, for the period from the member's initial
membership in the fund to the date payment is made by the
member.
(4) The member must provide verification of the service with
the state quasi-governmental entity in a manner prescribed by
the fund.
(c) State quasi-governmental entity service that qualifies a
member for retirement in a private retirement system or a federal
retirement system may not be granted under this section.
(d) A member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service from
another tax supported public employee retirement plan other
than under the federal Social Security Act;
may withdraw the personal contributions made under the
contributory plan plus accumulated interest after submitting to the
fund a properly completed application for a refund.
(e) 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 the 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 purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit. As added by P.L.148-2007, SEC.1.
IC 5-10.3-7-5 Military service credit
Sec. 5. (a) A member who:
(1) enters the United States armed services;
(2) leaves his contributions in the fund;
(3) except as provided in subsection (c), resumes service with
his employer within one hundred twenty (120) days after his
unconditional discharge; and
(4) would be entitled to service credit for military service under
the Uniformed Services Employment and Reemployment Rights
Act (38 U.S.C. 4301 et seq.) if the member had resumed service
with the member's employer within ninety (90) days after
discharge;
is entitled to service credit for the armed service.
(b) A state employee who left employment before January 1,
1946, or an employee of a political subdivision who left employment
before the participation date, to enter the United States armed
services is entitled to service credit for the armed service if he:
(1) except as provided in subsection (c), resumes service with
the employer within one hundred twenty (120) days after his
unconditional discharge; and
(2) would be entitled to service credit for military service under
the applicable requirements of federal law in effect at the time
of reemployment if the employee had resumed service with the
employee's employer within ninety (90) days after discharge.
(c) The board shall extend the one hundred twenty (120) day
reemployment requirement contained in subsection (a)(3) or (b)(1)
if the board determines that an illness, an injury, or a disability
related to the member's military service prevented the member from
resuming employment within one hundred twenty (120) days after
the member's discharge from military service. However, the board
may not extend the deadline beyond thirty (30) months after the
member's discharge.
(d) If a member retires and the board subsequently determines that
the member is entitled to additional service credit due to the
extension of a deadline under subsection (c), the board shall
recompute the member's benefit. However, the additional service
credit may be used only in the computation of benefits to be paid
after the date of the board's determination, and the member is not
entitled to a recomputation of benefits received before the date of the
board's determination.
(e) Notwithstanding any provision of this section, a member is
entitled to service credit and benefits in the amount and to the extent
required by the Uniformed Services Employment and Reemployment
Rights Act (38 U.S.C. 4301 et seq.).
(f) Subject to the provisions of this section, an active member may
purchase not more than two (2) years of service credit for the
member's service on active duty in the armed services if the member
meets the following conditions:
(1) The member has at least one (1) year of credited service in
the fund.
(2) The member serves on active duty in the armed services of
the United States for at least six (6) months.
(3) The member receives an honorable discharge from the
armed services.
(4) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The member's salary at the time the member actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, that is
based on the age of the member at the time the member
actually makes a contribution for 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.
(iii) The number of years of service credit the member
intends to purchase.
(B) Contributions for any accrued interest, at a rate
determined by the actuary of the fund, for the period from
the member's initial membership in the fund to the date
payment is made by the member.
However, a member is entitled to purchase service credit under this
subsection only to the extent that service credit is not granted for that
time under another provision of this section. At least ten (10) years
of service in Indiana is required before a member may receive a
benefit based on service credits purchased under this section. A
member who terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance or receives
a monthly allowance for the same service from another tax supported
public employee retirement plan other than under the federal Social
Security Act may withdraw the purchase amount plus accumulated
interest after submitting a properly completed application for a
refund to the fund.
(g) The following apply to the purchase of service credit under
subsection (f):
(1) The board may allow a member to make periodic payments
of the contributions required for the purchase of the 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 purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.43-1991,
SEC.5; P.L.5-1997, SEC.5; P.L.184-2001, SEC.8.
IC 5-10.3-7-6 Leave service credit
Sec. 6. Leave Service. (a) A member is entitled to service credit
for adoption leave of not more than one (1) year and for leaves of
absence, granted under rules in force at the time of the leave, totaling
six (6) months or less during any period of four (4) consecutive
years.
(b) A member may make contributions during the leave of
absence based on his rate of compensation on the date his leave of
absence began.
(c) Notwithstanding any law, this section must be administered in
a manner consistent with the Family and Medical Leave Act of 1993
(29 U.S.C. 2601 et seq.). A member on a leave of absence that
qualifies for the benefits and protections afforded by the Family and
Medical Leave Act is entitled to receive credit for vesting and
eligibility purposes to the extent required by the Family and Medical
Leave Act, but is not entitled to receive credit for service for benefit
purposes unless the leave is described in subsection (a). As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.5-1997,
SEC.6; P.L.195-1999, SEC.23.
IC 5-10.3-7-7 Service credits for public service
Sec. 7. (a) A member with at least one (1) year of service in a
position covered by the fund after January 1, 1946, shall receive
credit for years of service at any time as any of the following:
(1) A member of the general assembly.
(2) An elected state official.
(3) A prosecuting attorney of a judicial circuit.
(4) A judge who is covered by the judges' retirement system but
who is ineligible for its benefits.
(5) A member of the armed services if the member joined the
armed services while the member was a member of the general
assembly, including credit for the unexpired term if the
unexpired term of the member of the general assembly was
longer than the armed service.
As added by Acts 1977, P.L.53, SEC.3. Amended by
P.L.381-1987(ss), SEC.3; P.L.5-1988, SEC.34.
IC 5-10.3-7-7.5 Exclusion of service before prior service credit date contained in
resolution
Sec. 7.5. Notwithstanding IC 5-10.2-3-1, for the purpose of
computing benefits the creditable service of a member covered by an
ordinance or resolution adopted by a political subdivision's
governing body under IC 5-10.3-6-1(b) excludes all service with the
political subdivision before the prior service credit date contained in
the resolution. However, service with the political subdivision before
the prior service credit date shall be considered for the purpose of
determining eligibility for benefits. As added by P.L.60-1987, SEC.3.
IC 5-10.3-7-7.7 Employees of township trustee's office; service credit
Sec. 7.7. (a) For the purposes of computing benefits and
determining eligibility, a member who:
(1) has at least one (1) year of service in a position covered by
the fund;
(2) became a member of the fund after December 31, 1987;
(3) was at least sixty (60) years of age when the member joined
the fund; and
(4) before January 1, 1988, was an employee of a township
trustee's office:
(A) located in a county having a consolidated city; and
(B) participating in the fund;
is entitled to service credit as provided in subsections (b) and (c).
(b) A member who is qualified under subsection (a) is entitled to
service credit for the time the member:
(1) was an employee of a township trustee's office described in
subsection (a)(4);
(2) was employed in a position covered by the fund; and
(3) was not a member of the fund.
(c) To receive service credit under this section, a member must
pay into the fund the amount the member would have contributed if
the member had been a member of the fund for the period described
in subsection (b). As added by P.L.1-1990, SEC.59.
IC 5-10.3-7-7.8
Repealed
(Repealed by P.L.1-1990, SEC.60.)
IC 5-10.3-7-7.9 Service credits; eligibility; computation
Sec. 7.9. (a) This section applies to a person who is or was an
employee of the office of a township executive in a county having a
consolidated city.
(b) Except as provided in subsection (d), for the purposes of
computing benefits and determining eligibility, a member who:
(1) has at least one (1) year of service in a position covered by
the fund;
(2) became a member of the fund after December 31, 1987;
(3) was at least sixty (60) years of age when the member joined
the fund; and
(4) was an employee of the state or a political subdivision
participating in the fund, or both, before January 1, 1988;
is entitled to service credit as provided in subsection (c).
(c) A member who is qualified under subsection (b) is entitled to
service credit for the time the member:
(1) was an employee of the state or a political subdivision
participating in the fund, or both;
(2) was employed in a position covered by the fund; and
(3) was not a member of the fund.
(d) To receive service credit under this section, a member must
pay into the fund the amount the member would have contributed if
the member had been a member of the fund for the period described
in subsection (c). As added by P.L.1-1990, SEC.61.
IC 5-10.3-7-8 Other service
Sec. 8. Other Service. The board may establish rules to govern the
determination of service in cases not specifically provided for in this
article or in IC 5-10.2-3. As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-7-9 Member contributions
Sec. 9. Each member shall contribute three percent (3%) of his
compensation to the fund as specified in IC 5-10.2-3. However, for
a member who is a state employee, the employer shall pay the
contribution for the member, and for a member who is not a state
employee, the employer may pay all or a part of the contribution for
the member. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.41-1983,
SEC.8; P.L.35-1985, SEC.22; P.L.55-1989, SEC.23; P.L.246-2001,
SEC.11.
IC 5-10.3-7-9.5 Rollover contributions; trustee to trustee transfers; liability for
income tax consequences of transfers
Sec. 9.5. (a) The fund may accept cash rollover contributions from
a member who is making payments for additional service credits
under this chapter if the following conditions are met:
(1) The rollover contribution must represent:
(A) all or a portion of the member's interest in a retirement
plan of a former employer which is qualified under Section
401(a) of the Internal Revenue Code and which permits the
interest to be transferred to the fund as a qualifying rollover
contribution under the Internal Revenue Code;
(B) all or a portion of the member's interest from an
individual retirement account or annuity described in Section
408(a) or Section 408(b) of the Internal Revenue Code;
(C) all or a portion of the member's interest in:
(i) a qualified plan described in Section 403(a) of the
Internal Revenue Code; or
(ii) an annuity contract or account described in Section
403(b) of the Internal Revenue Code; or
(D) all or a portion of the member's interest in 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.
(2) The amount of the rollover contributions may not exceed the
amount of payment required to purchase the service credits
under this chapter.
(3) The rollover contributions may contain only tax-deferred
contributions and earnings on the contributions, and may not
include any post-tax contributions.
(4) The member must be otherwise eligible to purchase the
service credit under this chapter.
(b) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the fund may accept, on behalf of a member
who is purchasing permissive service credit under this chapter, a
trustee to trustee transfer from:
(1) an annuity contract or account described in Section 403(b)
of the Internal Revenue Code; or
(2) an eligible deferred compensation plan under Section 457(b)
of the Internal Revenue Code.
(c) The fund, the board, and their respective members, officers,
and employees do not have any responsibility or liability with respect
to the federal and state income tax consequences of any transfer
made to the fund under this section. The board may require, as a
condition to the fund's acceptance of a rollover contribution:
(1) satisfactory evidence that the proposed transfer is a
qualifying rollover contribution under the Internal Revenue
Code; and
(2) reasonable releases or indemnifications from the member
against any and all liabilities that may be connected with the
transfer.
(d) Cash transferred to the fund as a rollover contribution shall be
deposited in the retirement allowance account.
(e) A member who terminates employment before satisfying the
eligibility requirements necessary for a pension or disability benefit
may withdraw the member's rollover contribution, 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
IC 5-10.2-3 to be eligible for a refund of the member's rollover
amount.
(f) Except as provided in this section, the fund shall not accept
any other rollover contributions from a member.
(g) The board shall administer this section in accordance with the
rollover provisions of the Internal Revenue Code and any applicable
regulations. As added by P.L.5-1997, SEC.7. Amended by P.L.61-2002, SEC.8.
IC 5-10.3-7-10 Membership records
Sec. 10. Each department shall submit to the board certified
membership records containing the names, titles, rates of
compensation, dates of birth, length of service, and other pertinent
information required by the board about the department's employees.
A department must submit the membership record to the board not
more than thirty (30) days after the member's date of hire. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.195-1999,
SEC.24.
IC 5-10.3-7-11 Payroll preparation
Sec. 11. The director shall certify to the department the names of
the employees for whom deductions or payments of contributions
must be made. In the preparation of payrolls, each department shall
indicate:
(1) the total compensation of each employee;
(2) the amount of each member's contribution; and
(3) the net amount payable to each member.
No compensation may be paid and no payroll may be processed
unless the deduction or payment is made for members' contributions. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.41-1983,
SEC.9; P.L.5-1990, SEC.10.
IC 5-10.3-7-12 Certification of deductions; transfer to fund
Sec. 12. A certified copy of each department's payroll or an
equivalent certified list of members shall be sent to the board
together with a warrant issued by the department for members'
contributions. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.41-1983,
SEC.10.
IC 5-10.3-7-12.5 Reports, records, or membership payments; failure to submit
Sec. 12.5. (a) An employer or department shall make the reports,
membership records, or payments required by IC 5-10.3-6 or by
sections 10 through 12 of this chapter:
(1) not more than thirty (30) days after the end of the calendar
quarter, if applicable;
(2) another due date specified in sections 10 through 12 of this
chapter; or
(3) an alternate due date established by the rules of the board.
(b) If the employer or department does not make the reports,
records, or payments within the time specified in subsection (a):
(1) the board may fine the employer or department one hundred
dollars ($100) for each additional day that the reports, records,
or payments are late, to be withheld under IC 5-10.3-6-7; and
(2) if the employer or department is habitually late, as
determined by the board, the board shall report the employer or
the department to the auditor of state for additional withholding
under IC 5-10.3-6-7.
(c) After December 31, 2009, an employer or department shall
submit:
(1) the reports and records described in subsection (a) in a
uniform format through a secure connection over the Internet or
through other electronic means specified by the board in
accordance with IC 5-10.2-2-12.5; and
(2) both:
(A) employer contributions determined under
IC 5-10.2-2-11; and
(B) contributions paid by or on behalf of a member under
section 9 of this chapter;
by electronic funds transfer in accordance with
IC 5-10.2-2-12.5. As added by P.L.195-1999, SEC.25. Amended by P.L.165-2009,
SEC.6.
IC 5-10.3-7-13 Suspension of membership; withdrawal of contributions
Sec. 13. Suspension of Membership; Withdrawal of
Contributions. Each member who suspends his membership and
withdraws his contributions plus interest credits is covered by
IC 5-10.2-3. As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-7-14 Governor's waiver of membership
Sec. 14. Governor's Waiver of Membership. A governor who
makes an irrevocable choice under IC 4-3-3-1.1 to receive a
retirement benefit other than the retirement benefit from the fund
waives his right to membership in the fund and to any benefit from
the fund on and after the date of his irrevocable choice. After the
governor makes that irrevocable choice, he is entitled to withdraw in
a lump sum from the fund the amount of his contributions plus
interest credited to him. As added by Acts 1980, P.L.9, SEC.4. IC 5-10.3-7-15 Reinstatements of eligibility
Sec. 15. A person who has fifteen (15) or more years of creditable
service in the fund and has withdrawn from the fund before reaching
the age of sixty-five (65) years may apply for reinstatement of
eligibility, if the person:
(1) makes the application before July 1, 1998, and within ninety
(90) days after reaching the age of sixty-five (65) years; and
(2) demonstrates that further employment with an employer
covered by the fund is impractical due to health or other
conditions as determined by the board.
The board has the ultimate authority whether to grant reinstatements
of eligibility. As added by P.L.5-1997, SEC.8.
IC 5-10.3-7
Chapter 7. Membership; Creditable Service; Contributions;
Withdrawal
IC 5-10.3-7-1 Members of fund
Sec. 1. (a) This section does not apply to:
(1) members of the general assembly; or
(2) employees covered by section 3 of this chapter.
(b) An employee of the state or of a participating political
subdivision who:
(1) became a full-time employee of the state or of a
participating political subdivision in a covered position; and
(2) had not become a member of the fund;
before April 1, 1988, shall on April 1, 1988, become a member of the
fund unless the employee is excluded from membership under
section 2 of this chapter.
(c) Any individual who becomes a full-time employee of the state
or of a participating political subdivision in a covered position after
March 31, 1988, becomes a member of the fund on the date the
individual's employment begins unless the individual is excluded
from membership under section 2 of this chapter.
(d) For the purposes of this section, "employees of the state"
includes:
(1) employees of the judicial circuits whose compensation is
paid from state funds;
(2) elected and appointed state officers;
(3) prosecuting attorneys and deputy prosecuting attorneys of
the judicial circuits, whose compensation is paid in whole or in
part from state funds, including participants in the prosecuting
attorneys retirement fund established under IC 33-39-7;
(4) employees in the classified service;
(5) employees of any state department, institution, board,
commission, office, agency, court, or division of state
government receiving state appropriations and having the
authority to certify payrolls from appropriations or from a trust
fund held by the treasurer of state or by any department;
(6) employees of any state agency which is a body politic and
corporate;
(7) employees of the board of trustees of the public employees'
retirement fund;
(8) persons who:
(A) are employed by the state;
(B) have been classified as federal employees by the
Secretary of Agriculture of the United States; and
(C) are excluded from coverage as federal employees by the
federal Social Security program under 42 U.S.C. 410;
(9) the directors and employees of county offices of family and
children; and
(10) employees of the center for agricultural science and
IC 5-10.3-7-2 Exclusions from membership
Sec. 2. The following employees may not be members of the fund:
(1) Officials of a political subdivision elected by vote of the
people, unless the governing body specifically provides for the
participation of locally elected officials.
(2) Employees occupying positions normally requiring
performance of service of less than six hundred (600) hours
during a year who:
(A) were hired before July 1, 1982; or
(B) are employed by a participating school corporation.
(3) Independent contractors or officers or employees paid
wholly on a fee basis.
(4) Employees who occupy positions that are covered by other
pension or retirement funds or plans, maintained in whole or in
part by appropriations by the state or a political subdivision,
except:
(A) the federal Social Security program; and
(B) the prosecuting attorneys retirement fund established by
IC 33-39-7-9.
(5) Managers or employees of a license branch of the bureau of
motor vehicles commission, except those persons who may be
included as members under IC 9-16-4.
(6) Employees, except employees of a participating school
corporation, hired after June 30, 1982, occupying positions
normally requiring performance of service of less than one
thousand (1,000) hours during a year.
(7) Persons who:
(A) are employed by the state;
(B) have been classified as federal employees by the
Secretary of Agriculture of the United States; and
(C) are covered by the federal Social Security program as
federal employees under 42 U.S.C. 410.
(8) Members and employees of the state lottery commission. As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1978,
P.L.24, SEC.5; Acts 1982, P.L.37, SEC.3; P.L.31-1984, SEC.2;
P.L.42-1986, SEC.1; P.L.62-1987, SEC.1; P.L.61-1987, SEC.2;
P.L.341-1989(ss), SEC.5; P.L.62-1989, SEC.2; P.L.2-1991, SEC.26;
P.L.98-2004, SEC.68.
IC 5-10.3-7-2.5 Constables
Sec. 2.5. Notwithstanding the provisions of section 2 of this
chapter, any constable who:
(1) is not otherwise eligible for membership in the public
employees' retirement fund; and
(2) was enrolled erroneously in the public employees' retirement
fund as a contributing member;
is eligible for membership in the public employees' retirement fund
and is entitled to receive the benefits provided by that fund. As added by Acts 1981, P.L.51, SEC.1.
IC 5-10.3-7-2.7 Police officers and firefighters
Sec. 2.7. (a) This section applies only to an individual who:
(1) began service as a police officer or firefighter and became
a member of a police officers' pension fund or firefighters'
pension fund before 1980;
(2) began service in another position (referred to in this section
as the "PERF position") and was enrolled erroneously as a
contributing member of the public employees' retirement fund
with respect to the PERF position before 1980;
(3) made contributions to the public employees' retirement fund
with respect to the PERF position as if the individual had been
legally enrolled in that fund;
(4) after 1991 was denied service credit in the public
employees' retirement fund with respect to all or part of the
individual's service in the PERF position because of the
individual's service in the police officer or firefighter position
described in subdivision (1); and
(5) claims service credit in PERF and applies for membership
in PERF before January 1, 2000.
(b) Notwithstanding the provisions of section 2 of this chapter, an
individual described in subsection (a) who:
(1) is not otherwise eligible for membership in the public
employees' retirement fund; and
(2) was enrolled erroneously in the public employees' retirement
fund as a contributing member;
is eligible for membership in the public employees' retirement fund
and is entitled to receive the benefits provided by that fund. As added by P.L.195-1999, SEC.21.
IC 5-10.3-7-3 Optional membership
Sec. 3. (a) Members of the general assembly, including members
who:
(1) completed their service before July 1, 1987; and
(2) were not members of the fund during their service in the
general assembly;
are entitled to become, at their option, members of the fund. A
member of the general assembly who completed his service before
July 1, 1987, in order to become a member of the fund must apply to
the board for membership and must present evidence satisfactory to
the board of his prior service. Such a member of the general
assembly may become a member without any service after June 30,
1987.
(b) Notwithstanding the exclusion specified in section 2(4) of this
chapter, a member of the general assembly who is a member of the
Indiana state teachers' retirement fund and who retires after June 30,
1980, may choose at his retirement date to become a member of the
public employees' retirement fund and to receive his retirement
benefit from the fund.
(c) An employee who:
(1) was hired before July 1, 1982; or
(2) is employed by a participating school corporation;
and who is occupying a position normally requiring performance of
services of less than one thousand (1,000) hours a year may at his
option be a member of the fund. As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1980,
P.L.28, SEC.8; Acts 1982, P.L.37, SEC.4; P.L.30-1984, SEC.2;
P.L.381-1987(ss), SEC.2; P.L.46-1988, SEC.7.
IC 5-10.3-7-4 Creditable service
Sec. 4. Except as provided in section 7.5 of this chapter,
creditable service is determined as specified in IC 5-10.2-3-1.
Members also receive credit for service as specified in this chapter. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.60-1987,
SEC.2.
IC 5-10.3-7-4.5 Out-of-state service credit purchase
Sec. 4.5. (a) As used in this section, "out-of-state service" means
service in another state in a comparable position that would be
creditable service if performed in Indiana.
(b) Subject to subsections (c) through (f), a member may purchase
out-of-state service credit if the member meets the following
requirements:
(1) The member has at least one (1) year of creditable service
in the fund.
(2) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The member's salary at the time the member actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, based on
the age of the member at the time the member actually
makes a contribution for 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.
(iii) The number of years of out-of-state service the
member intends to purchase.
(B) 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.
(3) The member has received verification from the fund that the
out-of-state service is, as of that date, valid.
(c) Out-of-state years that qualify a member for retirement in an
out-of-state system or in any federal retirement system may not be
granted under this section.
(d) At least ten (10) years of service in Indiana is required before
a member may receive a benefit based on out-of-state service credits.
(e) A member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service from
another tax supported public employee retirement plan other
than under the Social Security Act;
may withdraw the purchase amount plus accumulated interest after
submitting a properly completed application for a refund to the fund.
(f) 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 the 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 purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit. As added by P.L.5-1997, SEC.4. Amended by P.L.22-1998, SEC.8.
IC 5-10.3-7-4.6 In-state service credit purchase
Sec. 4.6. (a) Subject to the provisions of this section, a member
may purchase service credit for the member's prior service in a
position covered by the 1925 police pension fund under IC 36-8-6,
the 1937 firefighters' pension fund under IC 36-8-7, or the 1953
police pension fund under IC 36-8-7.5 if the member meets the
following requirements:
(1) The member has at least one (1) year of credited service in
the fund.
(2) The member has not attained vested status in and is not an
active member of the 1925 police pension fund, the 1937
firefighters' pension fund, or the 1953 police pension fund.
(3) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The member's salary at the time the member actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, based on
the age of the member at the time the member actually
makes a contribution for 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.
(iii) The number of years of service credit the member
intends to purchase.
(B) 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.
(4) The member has received verification from the fund that the
service in the 1925 police pension fund, the 1937 firefighters'
pension fund, or the 1953 police pension fund is, as of that date,
valid.
(b) At least ten (10) years of service in Indiana is required before
a member may receive a benefit based on service credits purchased
under this section.
(c) A member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service from
another tax supported public employee retirement plan other
than under the Social Security Act;
may withdraw the purchase amount plus accumulated interest after
submitting a properly completed application for a refund to the fund.
(d) 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 the 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 purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit. As added by P.L.195-1999, SEC.22.
IC 5-10.3-7-4.8 State quasi-governmental entity service credit purchase
Sec. 4.8. (a) As used in this section, "state quasi-governmental
entity service" means service in Indiana that would be considered
creditable service if performed by an employee of a member of the
fund by an individual who:
(1) provided the service as an employee of a body corporate and
politic, nonprofit corporation established by the state, or other
quasi-governmental entity that performed a state governmental
function; and
(2) was not a member of the fund under section 1 of this chapter
during the period of employment.
(b) A member may purchase state quasi-governmental entity
service credit subject to the following:
(1) The member must have at least one (1) year of credited
service in the fund.
(2) The member must have at least ten (10) years of in-state
credited service before the member may claim the service
credit.
(3) Before the member retires, the member must make
contributions to the fund:
(A) that are equal to the product of:
(i) the member's salary at the time the member actually
makes a contribution for the service credit;
(ii) a percentage rate, as determined by the actuary of the
fund, based on the age of the member at the time the
member makes a contribution for 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; and
(iii) the number of years of state quasi-governmental entity
service the member intends to purchase; and
(B) for any accrued interest, at a rate determined by the
actuary of the fund, for the period from the member's initial
membership in the fund to the date payment is made by the
member.
(4) The member must provide verification of the service with
the state quasi-governmental entity in a manner prescribed by
the fund.
(c) State quasi-governmental entity service that qualifies a
member for retirement in a private retirement system or a federal
retirement system may not be granted under this section.
(d) A member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service from
another tax supported public employee retirement plan other
than under the federal Social Security Act;
may withdraw the personal contributions made under the
contributory plan plus accumulated interest after submitting to the
fund a properly completed application for a refund.
(e) 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 the 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 purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit. As added by P.L.148-2007, SEC.1.
IC 5-10.3-7-5 Military service credit
Sec. 5. (a) A member who:
(1) enters the United States armed services;
(2) leaves his contributions in the fund;
(3) except as provided in subsection (c), resumes service with
his employer within one hundred twenty (120) days after his
unconditional discharge; and
(4) would be entitled to service credit for military service under
the Uniformed Services Employment and Reemployment Rights
Act (38 U.S.C. 4301 et seq.) if the member had resumed service
with the member's employer within ninety (90) days after
discharge;
is entitled to service credit for the armed service.
(b) A state employee who left employment before January 1,
1946, or an employee of a political subdivision who left employment
before the participation date, to enter the United States armed
services is entitled to service credit for the armed service if he:
(1) except as provided in subsection (c), resumes service with
the employer within one hundred twenty (120) days after his
unconditional discharge; and
(2) would be entitled to service credit for military service under
the applicable requirements of federal law in effect at the time
of reemployment if the employee had resumed service with the
employee's employer within ninety (90) days after discharge.
(c) The board shall extend the one hundred twenty (120) day
reemployment requirement contained in subsection (a)(3) or (b)(1)
if the board determines that an illness, an injury, or a disability
related to the member's military service prevented the member from
resuming employment within one hundred twenty (120) days after
the member's discharge from military service. However, the board
may not extend the deadline beyond thirty (30) months after the
member's discharge.
(d) If a member retires and the board subsequently determines that
the member is entitled to additional service credit due to the
extension of a deadline under subsection (c), the board shall
recompute the member's benefit. However, the additional service
credit may be used only in the computation of benefits to be paid
after the date of the board's determination, and the member is not
entitled to a recomputation of benefits received before the date of the
board's determination.
(e) Notwithstanding any provision of this section, a member is
entitled to service credit and benefits in the amount and to the extent
required by the Uniformed Services Employment and Reemployment
Rights Act (38 U.S.C. 4301 et seq.).
(f) Subject to the provisions of this section, an active member may
purchase not more than two (2) years of service credit for the
member's service on active duty in the armed services if the member
meets the following conditions:
(1) The member has at least one (1) year of credited service in
the fund.
(2) The member serves on active duty in the armed services of
the United States for at least six (6) months.
(3) The member receives an honorable discharge from the
armed services.
(4) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of the
following:
(i) The member's salary at the time the member actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, that is
based on the age of the member at the time the member
actually makes a contribution for 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.
(iii) The number of years of service credit the member
intends to purchase.
(B) Contributions for any accrued interest, at a rate
determined by the actuary of the fund, for the period from
the member's initial membership in the fund to the date
payment is made by the member.
However, a member is entitled to purchase service credit under this
subsection only to the extent that service credit is not granted for that
time under another provision of this section. At least ten (10) years
of service in Indiana is required before a member may receive a
benefit based on service credits purchased under this section. A
member who terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance or receives
a monthly allowance for the same service from another tax supported
public employee retirement plan other than under the federal Social
Security Act may withdraw the purchase amount plus accumulated
interest after submitting a properly completed application for a
refund to the fund.
(g) The following apply to the purchase of service credit under
subsection (f):
(1) The board may allow a member to make periodic payments
of the contributions required for the purchase of the 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 purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.43-1991,
SEC.5; P.L.5-1997, SEC.5; P.L.184-2001, SEC.8.
IC 5-10.3-7-6 Leave service credit
Sec. 6. Leave Service. (a) A member is entitled to service credit
for adoption leave of not more than one (1) year and for leaves of
absence, granted under rules in force at the time of the leave, totaling
six (6) months or less during any period of four (4) consecutive
years.
(b) A member may make contributions during the leave of
absence based on his rate of compensation on the date his leave of
absence began.
(c) Notwithstanding any law, this section must be administered in
a manner consistent with the Family and Medical Leave Act of 1993
(29 U.S.C. 2601 et seq.). A member on a leave of absence that
qualifies for the benefits and protections afforded by the Family and
Medical Leave Act is entitled to receive credit for vesting and
eligibility purposes to the extent required by the Family and Medical
Leave Act, but is not entitled to receive credit for service for benefit
purposes unless the leave is described in subsection (a). As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.5-1997,
SEC.6; P.L.195-1999, SEC.23.
IC 5-10.3-7-7 Service credits for public service
Sec. 7. (a) A member with at least one (1) year of service in a
position covered by the fund after January 1, 1946, shall receive
credit for years of service at any time as any of the following:
(1) A member of the general assembly.
(2) An elected state official.
(3) A prosecuting attorney of a judicial circuit.
(4) A judge who is covered by the judges' retirement system but
who is ineligible for its benefits.
(5) A member of the armed services if the member joined the
armed services while the member was a member of the general
assembly, including credit for the unexpired term if the
unexpired term of the member of the general assembly was
longer than the armed service.
As added by Acts 1977, P.L.53, SEC.3. Amended by
P.L.381-1987(ss), SEC.3; P.L.5-1988, SEC.34.
IC 5-10.3-7-7.5 Exclusion of service before prior service credit date contained in
resolution
Sec. 7.5. Notwithstanding IC 5-10.2-3-1, for the purpose of
computing benefits the creditable service of a member covered by an
ordinance or resolution adopted by a political subdivision's
governing body under IC 5-10.3-6-1(b) excludes all service with the
political subdivision before the prior service credit date contained in
the resolution. However, service with the political subdivision before
the prior service credit date shall be considered for the purpose of
determining eligibility for benefits. As added by P.L.60-1987, SEC.3.
IC 5-10.3-7-7.7 Employees of township trustee's office; service credit
Sec. 7.7. (a) For the purposes of computing benefits and
determining eligibility, a member who:
(1) has at least one (1) year of service in a position covered by
the fund;
(2) became a member of the fund after December 31, 1987;
(3) was at least sixty (60) years of age when the member joined
the fund; and
(4) before January 1, 1988, was an employee of a township
trustee's office:
(A) located in a county having a consolidated city; and
(B) participating in the fund;
is entitled to service credit as provided in subsections (b) and (c).
(b) A member who is qualified under subsection (a) is entitled to
service credit for the time the member:
(1) was an employee of a township trustee's office described in
subsection (a)(4);
(2) was employed in a position covered by the fund; and
(3) was not a member of the fund.
(c) To receive service credit under this section, a member must
pay into the fund the amount the member would have contributed if
the member had been a member of the fund for the period described
in subsection (b). As added by P.L.1-1990, SEC.59.
IC 5-10.3-7-7.8
Repealed
(Repealed by P.L.1-1990, SEC.60.)
IC 5-10.3-7-7.9 Service credits; eligibility; computation
Sec. 7.9. (a) This section applies to a person who is or was an
employee of the office of a township executive in a county having a
consolidated city.
(b) Except as provided in subsection (d), for the purposes of
computing benefits and determining eligibility, a member who:
(1) has at least one (1) year of service in a position covered by
the fund;
(2) became a member of the fund after December 31, 1987;
(3) was at least sixty (60) years of age when the member joined
the fund; and
(4) was an employee of the state or a political subdivision
participating in the fund, or both, before January 1, 1988;
is entitled to service credit as provided in subsection (c).
(c) A member who is qualified under subsection (b) is entitled to
service credit for the time the member:
(1) was an employee of the state or a political subdivision
participating in the fund, or both;
(2) was employed in a position covered by the fund; and
(3) was not a member of the fund.
(d) To receive service credit under this section, a member must
pay into the fund the amount the member would have contributed if
the member had been a member of the fund for the period described
in subsection (c). As added by P.L.1-1990, SEC.61.
IC 5-10.3-7-8 Other service
Sec. 8. Other Service. The board may establish rules to govern the
determination of service in cases not specifically provided for in this
article or in IC 5-10.2-3. As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-7-9 Member contributions
Sec. 9. Each member shall contribute three percent (3%) of his
compensation to the fund as specified in IC 5-10.2-3. However, for
a member who is a state employee, the employer shall pay the
contribution for the member, and for a member who is not a state
employee, the employer may pay all or a part of the contribution for
the member. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.41-1983,
SEC.8; P.L.35-1985, SEC.22; P.L.55-1989, SEC.23; P.L.246-2001,
SEC.11.
IC 5-10.3-7-9.5 Rollover contributions; trustee to trustee transfers; liability for
income tax consequences of transfers
Sec. 9.5. (a) The fund may accept cash rollover contributions from
a member who is making payments for additional service credits
under this chapter if the following conditions are met:
(1) The rollover contribution must represent:
(A) all or a portion of the member's interest in a retirement
plan of a former employer which is qualified under Section
401(a) of the Internal Revenue Code and which permits the
interest to be transferred to the fund as a qualifying rollover
contribution under the Internal Revenue Code;
(B) all or a portion of the member's interest from an
individual retirement account or annuity described in Section
408(a) or Section 408(b) of the Internal Revenue Code;
(C) all or a portion of the member's interest in:
(i) a qualified plan described in Section 403(a) of the
Internal Revenue Code; or
(ii) an annuity contract or account described in Section
403(b) of the Internal Revenue Code; or
(D) all or a portion of the member's interest in 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.
(2) The amount of the rollover contributions may not exceed the
amount of payment required to purchase the service credits
under this chapter.
(3) The rollover contributions may contain only tax-deferred
contributions and earnings on the contributions, and may not
include any post-tax contributions.
(4) The member must be otherwise eligible to purchase the
service credit under this chapter.
(b) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the fund may accept, on behalf of a member
who is purchasing permissive service credit under this chapter, a
trustee to trustee transfer from:
(1) an annuity contract or account described in Section 403(b)
of the Internal Revenue Code; or
(2) an eligible deferred compensation plan under Section 457(b)
of the Internal Revenue Code.
(c) The fund, the board, and their respective members, officers,
and employees do not have any responsibility or liability with respect
to the federal and state income tax consequences of any transfer
made to the fund under this section. The board may require, as a
condition to the fund's acceptance of a rollover contribution:
(1) satisfactory evidence that the proposed transfer is a
qualifying rollover contribution under the Internal Revenue
Code; and
(2) reasonable releases or indemnifications from the member
against any and all liabilities that may be connected with the
transfer.
(d) Cash transferred to the fund as a rollover contribution shall be
deposited in the retirement allowance account.
(e) A member who terminates employment before satisfying the
eligibility requirements necessary for a pension or disability benefit
may withdraw the member's rollover contribution, 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
IC 5-10.2-3 to be eligible for a refund of the member's rollover
amount.
(f) Except as provided in this section, the fund shall not accept
any other rollover contributions from a member.
(g) The board shall administer this section in accordance with the
rollover provisions of the Internal Revenue Code and any applicable
regulations. As added by P.L.5-1997, SEC.7. Amended by P.L.61-2002, SEC.8.
IC 5-10.3-7-10 Membership records
Sec. 10. Each department shall submit to the board certified
membership records containing the names, titles, rates of
compensation, dates of birth, length of service, and other pertinent
information required by the board about the department's employees.
A department must submit the membership record to the board not
more than thirty (30) days after the member's date of hire. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.195-1999,
SEC.24.
IC 5-10.3-7-11 Payroll preparation
Sec. 11. The director shall certify to the department the names of
the employees for whom deductions or payments of contributions
must be made. In the preparation of payrolls, each department shall
indicate:
(1) the total compensation of each employee;
(2) the amount of each member's contribution; and
(3) the net amount payable to each member.
No compensation may be paid and no payroll may be processed
unless the deduction or payment is made for members' contributions. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.41-1983,
SEC.9; P.L.5-1990, SEC.10.
IC 5-10.3-7-12 Certification of deductions; transfer to fund
Sec. 12. A certified copy of each department's payroll or an
equivalent certified list of members shall be sent to the board
together with a warrant issued by the department for members'
contributions. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.41-1983,
SEC.10.
IC 5-10.3-7-12.5 Reports, records, or membership payments; failure to submit
Sec. 12.5. (a) An employer or department shall make the reports,
membership records, or payments required by IC 5-10.3-6 or by
sections 10 through 12 of this chapter:
(1) not more than thirty (30) days after the end of the calendar
quarter, if applicable;
(2) another due date specified in sections 10 through 12 of this
chapter; or
(3) an alternate due date established by the rules of the board.
(b) If the employer or department does not make the reports,
records, or payments within the time specified in subsection (a):
(1) the board may fine the employer or department one hundred
dollars ($100) for each additional day that the reports, records,
or payments are late, to be withheld under IC 5-10.3-6-7; and
(2) if the employer or department is habitually late, as
determined by the board, the board shall report the employer or
the department to the auditor of state for additional withholding
under IC 5-10.3-6-7.
(c) After December 31, 2009, an employer or department shall
submit:
(1) the reports and records described in subsection (a) in a
uniform format through a secure connection over the Internet or
through other electronic means specified by the board in
accordance with IC 5-10.2-2-12.5; and
(2) both:
(A) employer contributions determined under
IC 5-10.2-2-11; and
(B) contributions paid by or on behalf of a member under
section 9 of this chapter;
by electronic funds transfer in accordance with
IC 5-10.2-2-12.5. As added by P.L.195-1999, SEC.25. Amended by P.L.165-2009,
SEC.6.
IC 5-10.3-7-13 Suspension of membership; withdrawal of contributions
Sec. 13. Suspension of Membership; Withdrawal of
Contributions. Each member who suspends his membership and
withdraws his contributions plus interest credits is covered by
IC 5-10.2-3. As added by Acts 1977, P.L.53, SEC.3.
IC 5-10.3-7-14 Governor's waiver of membership
Sec. 14. Governor's Waiver of Membership. A governor who
makes an irrevocable choice under IC 4-3-3-1.1 to receive a
retirement benefit other than the retirement benefit from the fund
waives his right to membership in the fund and to any benefit from
the fund on and after the date of his irrevocable choice. After the
governor makes that irrevocable choice, he is entitled to withdraw in
a lump sum from the fund the amount of his contributions plus
interest credited to him. As added by Acts 1980, P.L.9, SEC.4. IC 5-10.3-7-15 Reinstatements of eligibility
Sec. 15. A person who has fifteen (15) or more years of creditable
service in the fund and has withdrawn from the fund before reaching
the age of sixty-five (65) years may apply for reinstatement of
eligibility, if the person:
(1) makes the application before July 1, 1998, and within ninety
(90) days after reaching the age of sixty-five (65) years; and
(2) demonstrates that further employment with an employer
covered by the fund is impractical due to health or other
conditions as determined by the board.
The board has the ultimate authority whether to grant reinstatements
of eligibility. As added by P.L.5-1997, SEC.8.
