Indiana § 5-10-18-4 - Required offer of health coverage; duration

Full text of Indiana Indiana Code § 5-10-18-4 — Required offer of health coverage; duration, with citation guidance and answers to common questions.

§ 5-10-18-4. Required offer of health coverage; duration

Sec. 4. (a) If an employer of a public safety officer who dies in the line of duty after December 31, 2017, offers health coverage for active employees, the employer shall offer to provide and pay for health coverage under the health coverage plan provided for active employees for the surviving spouse and each natural child, stepchild, and adopted child of the public safety officer.

(b) The health coverage for a surviving natural child, stepchild, or adopted child of the public safety officer provided under subsection (a) continues:

(1) until the child becomes eighteen (18) years of age;

(2) until the child becomes twenty-three (23) years of age, if the child is:

(A) enrolled in and regularly attending a secondary school; or

(B) a full-time student at an accredited college or university; or

(3) during the entire period of the child's physical or mental disability;

whichever period is longest.

(c) If the employer of a public safety officer who dies in the line of duty after December 31, 2017, offers health coverage to active employees, the health coverage that the employer provides to a surviving spouse and each natural child, stepchild, and adopted child of the public safety officer under subsection (a) must be equal to that offered to active employees.

(d) The employer's offer to provide and pay for health coverage under subsection (a) must remain open as long as the employer continues to offer health coverage for active employees, and:

(1) the surviving spouse is eligible for the health coverage under subsection (a); or

(2) a natural child, a stepchild, or an adopted child of the public safety officer is eligible for the health coverage under subsections (a) and (b).

As added by P.L.111-2019, SEC.2.

IC 5-10.1ARTICLE 10.1. SOCIAL SECURITY COVERAGE FOR PUBLIC EMPLOYEES

Ch. 1.Definitions Ch. 2.The Federal-State Agreement Ch. 2.5.Public Employee Sick Pay Plan Ch. 3.Coverage of Employees of Political Subdivisions Ch. 4.Coverage of Members of Retirement Systems Ch. 5.Repealed Ch. 6.Contributions Ch. 7.Construction of Codification

IC 5-10.1-1Chapter 1. Definitions

5-10.1-1-1"Employee" 5-10.1-1-2"Employee tax" and "employee contribution" 5-10.1-1-3"Employer contribution" and "matching contribution" 5-10.1-1-4"Federal Insurance Contributions Act" 5-10.1-1-5"Federal administrator" 5-10.1-1-6"Governing body" 5-10.1-1-7"Political subdivision" 5-10.1-1-8"State agency" 5-10.1-1-9"Social Security Act" 5-10.1-1-10"Agreement" 5-10.1-1-11Gender; number

IC 5-10.1-1-1"Employee" Sec. 1. "Employee" as used in this article includes:

(1) an elected or appointed officer of the state and of a political subdivision;

(2) a senior judge appointed under IC 33-24-3-7; and

(3) a duly elected prosecuting attorney of a judicial circuit.

As added by Acts 1977, P.L.53, SEC.1. Amended by P.L.40-1990, SEC.2; P.L.98-2004, SEC.66.

IC 5-10.1-1-2"Employee tax" and "employee contribution" Sec. 2. "Employee tax" and "employee contribution", as used in this article, means the tax imposed by section 3101 of the Internal Revenue Code.

As added by Acts 1977, P.L.53, SEC.1. Amended by P.L.2-1987, SEC.10.

IC 5-10.1-1-3"Employer contribution" and "matching contribution" Sec. 3. "Employer contribution" and "matching contribution", as used in this article, means the tax imposed by section 3111 of the Internal Revenue Code.

As added by Acts 1977, P.L.53, SEC.1. Amended by P.L.2-1987, SEC.11.

IC 5-10.1-1-4"Federal Insurance Contributions Act" Sec. 4. "Federal Insurance Contributions Act", as used in this article, means subchapters A and B of chapter 21 of the Internal Revenue Code.

As added by Acts 1977, P.L.53, SEC.1. Amended by P.L.2-1987, SEC.12.

IC 5-10.1-1-5"Federal administrator" Sec. 5. Federal Administrator. "Federal administrator" as used in this article means the federal security administrator and includes the secretary of health, education, and welfare of the United States and any individual to whom the federal security administrator has delegated any of his functions under the Social Security Act with respect to coverage of employees of a state and its political subdivisions.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-1-6"Governing body" Sec. 6. "Governing body" means the fiscal body of a county, city, town, or township, trustee, the township board, board of school commissioners, library board, or any board which by law is authorized to fix a rate of taxation on property of a political subdivision, or any other board which is empowered to administer the affairs of any department of, or associated with, a political subdivision, which department receives revenue independently of, or in addition to, funds obtained from taxation.

As added by Acts 1977, P.L.53, SEC.1. Amended by P.L.8-1987, SEC.9; P.L.8-1989, SEC.19.

IC 5-10.1-1-7"Political subdivision" Sec. 7. Political Subdivision. "Political subdivision" as used in this article means a county, city, town, township, political body corporate, political entity, local housing authority, public school corporation, public library, public utility of a county, city, town, or township whether the public utility is operated by the city or town or under the terms of a trusteeship for the benefit of the city or town, and a department of, or associated with, a county, city, town, or township, which department receives revenue independently of, or in addition to, funds obtained through taxation. A state agency or a judicial circuit may not be construed as a political subdivision.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-1-8"State agency" Sec. 8. "State agency" as used in this article means the Indiana public retirement system.

As added by Acts 1977, P.L.53, SEC.1. Amended by P.L.35-2012, SEC.27.

IC 5-10.1-1-9"Social Security Act" Sec. 9. Social Security Act. "Social Security Act" as used in this article means the act of Congress approved August 14, 1935, chapter 531, 49 Stat. 620 (42 U.S.C. 301), as amended, and any rules or regulations issued pursuant to it.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-1-10"Agreement" Sec. 10. Agreement. "Agreement" as used in this article means the federal-state agreement specified in chapter 2 of this article.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-1-11Gender; number Sec. 11. Gender; Number. (a) When a masculine pronoun is used in this article, it refers to the masculine, feminine, or neuter, as appropriate.

(b) The singular form of any noun used in this article includes the plural, and the plural includes the singular, as appropriate.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-2Chapter 2. The Federal-State Agreement

5-10.1-2-1Intent 5-10.1-2-2Authorization 5-10.1-2-3Coverage 5-10.1-2-4Effective date 5-10.1-2-5Payment to Secretary of Treasury 5-10.1-2-6Permissible provisions 5-10.1-2-7Termination of coverage 5-10.1-2-8Rules and regulations 5-10.1-2-9Exclusion of election workers

IC 5-10.1-2-1Intent Sec. 1. Intent. The procedures of this article are established to provide the basic protection of the Social Security Act to public employees and their dependents and survivors on as broad a basis as is permitted by the Social Security Act.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-2-2Authorization Sec. 2. Authorization. The state agency with the approval of the governor may enter into a federal-state agreement with the federal administrator to extend the benefits of the Social Security Act to the employees of the state and its political subdivisions.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-2-3Coverage Sec. 3. Coverage. (a) The agreement must cover services which are performed by an employee for the state or political subdivision and which are covered by a plan which conforms to the agreement and has been approved by the state agency.

(b) The agreement may not cover services which are covered by the Social Security Act without an agreement or which may not be included in an agreement under the Social Security Act.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-2-4Effective date Sec. 4. Effective Date. The agreement or a modification to it must contain an effective date for the coverage of services. The effective date of the agreement may not be earlier than permitted by the Social Security Act or earlier than January 1 of the year in which the agreement is entered into.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-2-5Payment to Secretary of Treasury Sec. 5. Payment to the Secretary of Treasury. The state shall pay to the secretary of the treasury, as prescribed under the Social Security Act, contributions equal to the sum of taxes which would be imposed by the Federal Insurance Contributions Act if the act applied to services covered by the agreement.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-2-6Permissible provisions Sec. 6. Permissible Provisions. The agreement may contain such provisions concerning coverage, benefits, contributions, effective date, modification and termination of the agreement, administrative, and other appropriate matters as the state agency and federal administrator agree upon.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-2-7Termination of coverage Sec. 7. Termination of Coverage. Coverage by the Social Security Act may be terminated by sending a written notice of termination to the federal administrator. The termination is effective if:

(1) the notice is filed two (2) years before the time of termination; and

(2) the employees have been covered for five (5) years or more before the date on which the federal administrator receives the notice.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-2-8Rules and regulations Sec. 8. Rules and Regulations. The state agency may make and publish such rules and regulations as it finds appropriate for the implementation of this article.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-2-9Exclusion of election workers Sec. 9. (a) The agreement shall be modified to exclude services performed by an election official or an election worker for calendar year 2007 in which the remuneration paid for such services is less than one thousand three hundred dollars ($1,300), and for each calendar year after 2007 in which the remuneration paid is less than the adjusted amount, as described in subsection (b), beginning with services performed in the year that this modification was mailed or delivered by other means to the Commissioner of Social Security.

(b) The one thousand three hundred dollar ($1,300) limit on the excludable amount of remuneration paid in a calendar year for the services specified in this modification will be subject to adjustment for calendar years after 2007 to reflect changes in wages in the economy without any further modification of the agreement, with respect to such services performed during such calendar years, in accordance with Section 218(c)(8)(B) of the Social Security Act.

(c) This exclusion applies to all coverage groups of the state and its political subdivisions currently (as of the date this modification is executed), including under this agreement and to which the agreement is hereafter made applicable.

As added by P.L.234-2007, SEC.208.

IC 5-10.1-2.5Chapter 2.5. Public Employee Sick Pay Plan

5-10.1-2.5-1Definition 5-10.1-2.5-2State employees; establishment; appropriations; authorization 5-10.1-2.5-3Political subdivision employees; establishment; appropriations

IC 5-10.1-2.5-1Definition Sec. 1. As used in this chapter, "sick pay plan" means a plan that:

(1) provides for an employer to make payments in lieu of wages to employees on account of sickness or accident disability; and

(2) meets the requirements of 42 U.S.C. 409(b) or (d).

As added by Acts 1979, P.L.34, SEC.1.

IC 5-10.1-2.5-2State employees; establishment; appropriations; authorization Sec. 2. The governor may establish a sick pay plan for state employees. If the governor establishes a sick pay plan, the general assembly may make separate appropriations for the money needed to fund the payments required under the plan.

As added by Acts 1979, P.L.34, SEC.1.

IC 5-10.1-2.5-3Political subdivision employees; establishment; appropriations Sec. 3. Each political subdivision may establish a sick pay plan for the employees of the political subdivision. If a political subdivision establishes a sick pay plan, the governing body of the political subdivision may make separate appropriations for the money needed to fund the payments required under the plan.

As added by Acts 1979, P.L.34, SEC.1. Amended by Acts 1981, P.L.49, SEC.1; Acts 1982, P.L.37, SEC.1.

IC 5-10.1-3Chapter 3. Coverage of Employees of Political Subdivisions

5-10.1-3-1Authorization 5-10.1-3-2Approval of plan 5-10.1-3-3Required elements of plan 5-10.1-3-4Ordinances 5-10.1-3-5Participation in public employees' retirement fund

IC 5-10.1-3-1Authorization Sec. 1. Authorization. Each political subdivision without a retirement system for its employees may submit for approval by the state agency a plan for extending the Social Security Act to its employees.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-3-2Approval of plan Sec. 2. Approval of the Plan. The state agency shall approve the plan and any amendments if they conform to the agreement and the regulations of the state agency. The state agency may not finally disapprove a plan or terminate an approved plan without reasonable notice and opportunity for a hearing for the political subdivision.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-3-3Required elements of plan Sec. 3. Required Elements of the Plan. The plan must:

(1) be in conformity with the requirements of the Social Security Act and with the agreement;

(2) provide that all services covered by the federal-state agreement in employment for the political subdivision is covered by the plan, except that it may exclude services to which section 218(c)(3), 218(c)(5), 218(c)(6), or 218(d) of the Social Security Act is applicable;

(3) specify the source from which the funds necessary to make the payments required of the political subdivision by this article are expected to be derived and contain reasonable assurance that the source will be adequate for that purpose;

(4) provide for such methods of administration of the plan by the political subdivision as are found by the state agency to be necessary for the proper administration of the plan;

(5) provide that the political subdivision shall:

(A) make such reports as the state agency requires; and

(B) comply with such provisions as the state agency or the federal administrator finds necessary to assure the correctness of the reports; and

(6) authorize the state agency to terminate the plan in its entirety if the state agency finds a failure to comply substantially with any provision of the plan. The termination takes effect at the expiration of such notice and on such conditions as are provided by the state agency, in accordance with the Social Security Act.

As added by Acts 1977, P.L.53, SEC.1. Amended by P.L.7-2015, SEC.5.

IC 5-10.1-3-4Ordinances Sec. 4. Ordinances. (a) Employees of a political subdivision without a retirement system are entitled to coverage by the Social Security Act if:

(1) the governing body passes an ordinance or resolution which it submits to the state agency within ten (10) days after passage;

(2) the ordinance contains an effective date for coverage which must be January 1 of any year;

(3) the ordinance is approved by the state agency; and

(4) the political subdivision and the federal administrator approve an agreement for the political subdivision which conforms to the federal-state agreement submitted by the state agency.

(b) On approval, the state agency shall furnish to the governing body an estimate of the costs for the first year of coverage. After the first year, the state agency shall certify to the governing body before July 2 of each year the amount of estimated costs for the next calendar year which amount if it is to be raised by a general property tax levy shall be included in the appropriation ordinance as provided in law for raising taxes assessed against property.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-3-5Participation in public employees' retirement fund Sec. 5. Participation in the Public Employees' Retirement Fund. A political subdivision which is eligible to become a participant in the public employees' retirement fund may be covered by the Social Security Act by becoming a participant as specified in IC 5-10.3-6. If the political subdivision has a retirement system, it must follow the procedures specified in chapter 4 of this article.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-4Chapter 4. Coverage of Members of Retirement Systems

5-10.1-4-1Referenda 5-10.1-4-2Procedure for referenda 5-10.1-4-3Referenda for public employees' retirement fund 5-10.1-4-4Effect of affirmative vote in referenda 5-10.1-4-5Effect of negative vote in referenda 5-10.1-4-6Effective date of modification

IC 5-10.1-4-1Referenda Sec. 1. The governor may conduct separate referenda for each of the following retirement systems to determine whether the positions covered by the systems will be included in the agreement:

(1) the Indiana state teachers' retirement fund;

(2) the public employees' retirement fund;

(3) each retirement system established by a state educational institution; and

(4) each other retirement system which is financially supported by a political subdivision if the board or governing body administering the retirement system requests a referendum.

As added by Acts 1977, P.L.53, SEC.1. Amended by P.L.2-2007, SEC.88.

IC 5-10.1-4-2Procedure for referenda Sec. 2. (a) Each referendum shall be conducted in compliance with section 218(d) of the Social Security Act.

(b) The governor may designate the board or governing body administering the affairs of each retirement system, or the board of trustees in the case of state educational institutions, as the agency to conduct the referendum for the system.

(1) the expenses of the referendum for a political subdivision participating in the public employees' retirement fund shall be paid by the political subdivision; and

(2) the expenses of the referendum for a state educational institution shall be paid by the institution.

As added by Acts 1977, P.L.53, SEC.1. Amended by P.L.2-2007, SEC.89.

IC 5-10.1-4-3Referenda for public employees' retirement fund Sec. 3. Referenda for Public Employees' Retirement Fund. (a) Separate referenda must be conducted for state employees and for employees of each participating political subdivision who are members of the public employees' retirement fund.

(b) Members of the public employees' retirement fund who are classified as federal employees by the secretary of agriculture of the United States and who participate in the federal civil service retirement system may not vote in any referendum.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-4-4Effect of affirmative vote in referenda Sec. 4. Effect of Affirmative Vote in Referenda. (a) If a majority of the employees in a retirement system vote in the affirmative in the referendum, the governor shall:

(1) certify to the secretary of health, education and welfare of the United States that the conditions prescribed by the Social Security Act have been met; and

(2) notify the state agency of the certification.

(b) The state agency shall then request a modification of the agreement by the federal administration to include service in positions covered by these retirement systems.

(c) The state agency, or the governing body for a political subdivision, may request that the modification not include the following positions covered by a retirement system:

(1) services of an emergency nature;

(2) elective positions;

(3) part-time positions;

(4) positions, the compensation for which is paid on a fee basis;

(5) agricultural labor; and

(6) service performed by a student, if the service would be excluded if done for a private employer.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-4-5Effect of negative vote in referenda Sec. 5. Effect of Negative Vote in Referenda. (a) If in a referendum the vote of the majority is negative, no member of the retirement system may be included in a modification of the agreement.

(b) A subsequent referendum may be conducted upon the request of the board or governing body. However, no subsequent referendum may be conducted until one (1) year after a prior referendum.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-4-6Effective date of modification Sec. 6. (a) The effective date of a modification of the agreement must be determined by resolution of the board of each of the following retirement systems:

(1) The applicable pension system administered by the Indiana public retirement system.

(2) Any retirement system established by a state educational institution.

For political subdivisions the governing body shall determine the effective date by resolution. The effective date may be made retroactive to the extent permitted by federal law.

(b) The effective date of a modification for employees of political subdivisions with retirement systems which are not covered by subsection (a) may be January 1, 1955, or any subsequent January 1.

As added by Acts 1977, P.L.53, SEC.1. Amended by P.L.2-2007, SEC.90; P.L.35-2012, SEC.28.

IC 5-10.1-5Chapter 5. RepealedRepealed by P.L.57-1987, SEC.6.

IC 5-10.1-6Chapter 6. Contributions

5-10.1-6-1Employer contributions for state employees 5-10.1-6-2Employer contributions; state institutions of higher education, school corporations, and political subdivisions 5-10.1-6-3Repealed 5-10.1-6-4Employee contributions 5-10.1-6-5Repealed 5-10.1-6-6Repealed

IC 5-10.1-6-1Employer contributions for state employees Sec. 1. (a) The state shall pay the employer contributions for state employees.

(b) After December 31, 2018, a school corporation may only pay the employer contributions, without an appropriation, from the school corporation's education fund.

(c) If state employees receive compensation from federal funds, contributions shall be made from the federal funds equal to the matching contribution which would be due on the compensation.

As added by Acts 1977, P.L.53, SEC.1. Amended by P.L.57-1987, SEC.1; P.L.240-1991(ss2), SEC.45; P.L.244-2017, SEC.4.

IC 5-10.1-6-2Employer contributions; state institutions of higher education, school corporations, and political subdivisions Sec. 2. State educational institutions, school corporations, and political subdivisions shall pay the employer contribution.

As added by Acts 1977, P.L.53, SEC.1. Amended by P.L.57-1987, SEC.2; P.L.240-1991(ss2), SEC.46; P.L.2-2007, SEC.91.

IC 5-10.1-6-3RepealedAs added by Acts 1977, P.L.53, SEC.1. Amended by Acts 1981, P.L.50, SEC.1. Repealed by P.L.57-1987, SEC.6.

IC 5-10.1-6-4Employee contributions Sec. 4. (a) Every employee whose services are covered by the federal-state agreement or a modification of the agreement shall, as a condition of his employment, pay an amount equal to the employee tax imposed by the Federal Insurance Contributions Act.

(b) The employee's contribution shall be deducted from wages paid. Failure to make the deduction does not relieve the employee or the employer from liability for the contribution.

(c) Employees who are entitled to back coverage under the federal-state agreement shall make contributions for the back coverage. The employee may have the contribution deducted from his compensation or from the amount credited to his annuity savings account if he is a member of the public employees' retirement fund.

As added by Acts 1977, P.L.53, SEC.1. Amended by P.L.57-1987, SEC.3.

IC 5-10.1-6-5RepealedAs added by Acts 1977, P.L.53, SEC.1. Repealed by P.L.57-1987, SEC.6.

IC 5-10.1-6-6RepealedAs added by Acts 1977, P.L.53, SEC.1. Amended by P.L.47-1985, SEC.3. Repealed by P.L.57-1987, SEC.6.

IC 5-10.1-7Chapter 7. Construction of Codification

5-10.1-7-1Purpose 5-10.1-7-2Headings

IC 5-10.1-7-1Purpose Sec. 1. Purpose of Codification. This article is intended to be a codification and restatement of applicable or corresponding provisions in prior law. A citation to prior law in the Indiana Code shall be construed as a citation to the appropriate provision of this article if the prior law is reenacted in the same or restated form by this article.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.1-7-2Headings Sec. 2. Headings. The headings prefixed to sections of this article are included for organizational purposes and do not affect the meaning, application, or construction of the sections.

As added by Acts 1977, P.L.53, SEC.1.

IC 5-10.2ARTICLE 10.2. PUBLIC RETIREMENT AND DISABILITY BENEFITS

Ch. 1.Definitions Ch. 2.The Retirement Funds Ch. 3.Creditable Service; Contributions; Withdrawals; Death Settlements Ch. 4.Retirement and Disability Benefits Ch. 5.Restricted Benefits Ch. 6.Construction of Codification Ch. 7.Repealed Ch. 8.Voluntary Supplemental Retirement Plan Ch. 9.Sudan Divestment Ch. 10.Divestment From States That Sponsor Terror Ch. 11.Divestment Related to Boycott of, Divestment from, or Sanctions of Israel Ch. 12.Supplemental Allowance Reserve Accounts Ch. 13.Divestment From Chinese Companies Ch. 14.ESG Commitment

IC 5-10.2-1Chapter 1. Definitions

5-10.2-1-1"Board" 5-10.2-1-2"Fund" 5-10.2-1-3"Employer" 5-10.2-1-3.5"Internal Revenue Code" 5-10.2-1-4"Member" 5-10.2-1-4.3"Miscellaneous participating entity" 5-10.2-1-4.5"1996 account" 5-10.2-1-5"Participating political subdivision" 5-10.2-1-5.5"Pre-1996 account" 5-10.2-1-6"Retirement fund law" 5-10.2-1-6.5"School corporation" 5-10.2-1-7"Social Security Act" 5-10.2-1-8"Vested status" 5-10.2-1-9Gender; number 5-10.2-1-10"Member's contribution"

IC 5-10.2-1-1"Board" Sec. 1. "Board", as used in this article, means the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.23-2011, SEC.6.

IC 5-10.2-1-2"Fund" Sec. 2. Fund. "Fund" as used in this article means the Indiana state teachers' retirement fund and the public employees' retirement fund.

As added by Acts 1977, P.L.53, SEC.2.

IC 5-10.2-1-3"Employer" Sec. 3. (a) "Employer" as used in this article means the state for employees of the state and a political subdivision or school corporation for its employees.

(b) With regard to employer contributions, "employer" includes the state for members of the Indiana state teachers' retirement fund with respect to the pre-1996 account.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.54-1993, SEC.1.

IC 5-10.2-1-3.5"Internal Revenue Code" Sec. 3.5. As used in this article, "Internal Revenue Code":

(1) means the Internal Revenue Code of 1954, as in effect on September 1, 1974, if permitted with respect to governmental plans; or

(2) to the extent not inconsistent with subdivision (1), has the meaning set forth in IC 6-3-1-11.

As added by P.L.55-1989, SEC.7.

IC 5-10.2-1-4"Member" Sec. 4. Member. "Member" as used in this article means a member of the Indiana state teachers' retirement fund or of the public employees' retirement fund.

As added by Acts 1977, P.L.53, SEC.2.

IC 5-10.2-1-4.3"Miscellaneous participating entity" Sec. 4.3. As used in this article, "miscellaneous participating entity" means an entity that participates in the public employees' retirement fund, except:

(1) the executive (including the administrative), legislative, and judicial branches of the state; or

(2) a political subdivision (as defined in IC 5-10.3-1-6).

As added by P.L.241-2015, SEC.2.

IC 5-10.2-1-4.5"1996 account" Sec. 4.5. As used in this article, "1996 account" refers to the 1996 account established within the Indiana state teachers' retirement fund under IC 5-10.4-2-2.

As added by P.L.54-1993, SEC.2. Amended by P.L.2-2006, SEC.17.

IC 5-10.2-1-5"Participating political subdivision" Sec. 5. Participating Political Subdivision. "Participating political subdivision" as used in this article means a political subdivision which is participating in the public employees' retirement fund as specified in IC 5-10.3-6.

As added by Acts 1977, P.L.53, SEC.2.

IC 5-10.2-1-5.5"Pre-1996 account" Sec. 5.5. As used in this article, "pre-1996 account" refers to the pre-1996 account established within the Indiana state teachers' retirement fund under IC 5-10.4-2-2.

As added by P.L.54-1993, SEC.3. Amended by P.L.2-2006, SEC.18.

IC 5-10.2-1-6"Retirement fund law" Sec. 6. "Retirement fund law" as used in this article means the statutes governing:

(1) the Indiana state teachers' retirement fund;

(2) the public employees' retirement fund; and

(3) the Indiana public retirement system.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-2012, SEC.29.

IC 5-10.2-1-6.5"School corporation" Sec. 6.5. As used in this article, "school corporation" has the meaning set forth in IC 5-10.4-1-13.

As added by P.L.54-1993, SEC.4. Amended by P.L.2-2006, SEC.19.

IC 5-10.2-1-7"Social Security Act" Sec. 7. Social Security Act. "Social Security Act" as used in this article means the act of Congress approved August 14, 1935, chapter 531, 49 Stat. 620 (42 U.S.C. 301), as amended, and any rules or regulations issued pursuant to it.

As added by Acts 1977, P.L.53, SEC.2.

IC 5-10.2-1-8"Vested status" Sec. 8. (a) Except as provided in subsection (b), "vested status" as used in this article means the status of having ten (10) years of creditable service.

(b) In the case of a person who is an elected county official whose governing body has provided for the county official's participation in the public employees' retirement fund under IC 5-10.3-7-2(1), "vested status" means the status of having:

(1) at least eight (8) years of creditable service as an elected county official in an office described in IC 5-10.2-4-1.7;

(2) been elected at least two (2) times if the person would have had at least eight (8) years of creditable service as an elected county official in an office described in IC 5-10.2-4-1.7 had the person's term of office not been shortened under a statute enacted under Article 6, Section 2(b) of the Constitution of the State of Indiana; or

(3) at least ten (10) years of creditable service as a member of the fund based on a combination of service as an elected county official and as a full-time employee in a covered position.

(c) In the case of a person whose term of office commences after the election on November 5, 2002, as state comptroller (referred to as "auditor of state" in the Constitution of the State of Indiana), secretary of state, or treasurer of state, and who is prohibited by Article 6, Section 1 of the Constitution of the State of Indiana from serving in that office for more than eight (8) years during any period of twelve (12) years, that person shall be vested with at least eight (8) years of creditable service as a member of the fund.

(d) This subsection applies to an individual elected to the office of treasurer of state at the election on November 7, 2006. The individual is vested for purposes of this article if the individual is reelected as treasurer of state at the 2010 general election and serves in the office until January 1, 2015.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.73-2002, SEC.1; P.L.88-2005, SEC.1; P.L.115-2008, SEC.4; P.L.40-2025, SEC.7.

IC 5-10.2-1-9Gender; number Sec. 9. Gender; Number. (a) When a masculine pronoun is used in this article, it refers to the masculine, feminine, or neuter, as appropriate.

(b) The singular form of any noun used in this article includes the plural, and the plural includes the singular, as appropriate.

As added by Acts 1977, P.L.53, SEC.2.

IC 5-10.2-1-10"Member's contribution" Sec. 10. As used in this article, "member's contribution" includes contributions paid by:

(1) the employer for members of the public employees' retirement fund; or

(2) a school corporation, the state, or a state educational institution for members of the teachers' retirement fund.

As added by P.L.41-1983, SEC.4. Amended by P.L.35-1985, SEC.2; P.L.2-2007, SEC.92.

IC 5-10.2-2Chapter 2. The Retirement Funds

5-10.2-2-0.1Application of certain amendments to chapter 5-10.2-2-1Scope; purpose 5-10.2-2-1.5Qualification under Internal Revenue Code 5-10.2-2-2Separate accounts and subaccounts 5-10.2-2-2.5Investment guidelines and limits established by boards; commingling of assets 5-10.2-2-3Annuity savings account; guaranteed program; stable value fund program; alternative investment programs 5-10.2-2-3.3Crediting interest in annuity savings accounts 5-10.2-2-3.5Repealed 5-10.2-2-4Expired 5-10.2-2-4.1Crediting interest and omitted contributions after December 31, 2016 5-10.2-2-5Repealed 5-10.2-2-6Retirement allowance accounts 5-10.2-2-7Transfer of accounts 5-10.2-2-8Payment and computation of benefits for combined creditable service 5-10.2-2-9Actuarial investigation and valuation 5-10.2-2-10Mortality tables 5-10.2-2-11Contribution rate determination; contribution rate groups; supplemental contributions; contributions and contribution rates report 5-10.2-2-11.5Employer contribution rates for Vincennes University 5-10.2-2-12State appropriation 5-10.2-2-12.5Submission of contributions, records, and reports electronically 5-10.2-2-13Custodial agreements for securities; servicing of mortgages; securities lending program 5-10.2-2-14Transfer of benefits to financial institutions; rollover 5-10.2-2-15Repealed 5-10.2-2-16Repealed 5-10.2-2-17Repealed 5-10.2-2-18Expired 5-10.2-2-19Repealed 5-10.2-2-20Withdrawal of miscellaneous participating entity 5-10.2-2-21Freeze in participation by miscellaneous participating entity 5-10.2-2-22Retirement plans offered by miscellaneous participating entity that withdraws from or freezes participation in public employees' retirement fund 5-10.2-2-23Election or discretionary action by branch of state government 5-10.2-2-24Transition from guaranteed program to stable value fund program

IC 5-10.2-2-0.1Application of certain amendments to chapter Sec. 0.1. The addition of section 18 of this chapter (expired July 1, 2013) by P.L.224-2003 applies only to investments made after June 30, 2003.

As added by P.L.220-2011, SEC.71. Amended by P.L.23-2026, SEC.25.

IC 5-10.2-2-1Scope; purpose Sec. 1. (a) This article applies to the Indiana state teachers' retirement fund and the public employees' retirement fund. Each retirement fund covered by this article is a separate retirement fund managed by the board under the fund's retirement fund law. The board shall make and publish regulations which are appropriate to the efficient administration of this article. The obligations of the state and political subdivisions for benefit payments are specified in each retirement fund law.

(b) The Indiana public retirement system is an independent body corporate and politic. The Indiana public retirement system is not a department or agency of the state but is an independent instrumentality exercising essential government functions.

(c) The benefits specified in this article and the benefits from the Social Security Act provide the retirement, disability, and survivor benefits for public employees and teachers. However, this article does not prohibit a political subdivision from establishing and providing before January 1, 1995, and continuing to provide after January 1, 1995, retirement, disability, and survivor benefits for the public employees of the political subdivision independent of this article if the political subdivision took action before January 1, 1995, and was not a participant in the public employees' retirement fund on January 1, 1995, under this article or IC 5-10.3.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.66-1995, SEC.2; P.L.65-1995, SEC.2; P.L.119-2000, SEC.2; P.L.23-2011, SEC.7.

IC 5-10.2-2-1.5Qualification under Internal Revenue Code Sec. 1.5. Each retirement fund covered by this article shall satisfy the qualification requirements in Section 401 of the Internal Revenue Code, as applicable to each retirement fund. In order to meet those requirements, each fund is subject to the following provisions, notwithstanding any other provision of the retirement fund law:

(1) The board shall distribute the corpus and income of the fund to members and their beneficiaries in accordance with the retirement fund law.

(2) No part of the corpus or income of a fund may be used for or diverted to any purpose other than the exclusive benefit of the members and their beneficiaries.

(3) Forfeitures arising from severance of employment, death, or for any other reason may not be applied to increase the benefits any member would otherwise receive under the retirement fund law.

(4) If a fund is terminated, or if all contributions to a fund are completely discontinued, the rights of each affected member to the benefits accrued at the date of the termination or discontinuance, to the extent then funded, are nonforfeitable.

(5) All benefits paid from a retirement fund shall be distributed in accordance with the requirements of Section 401(a)(9) of the Internal Revenue Code and the regulations under that section. In order to meet those requirements, each retirement fund is subject to the following provisions:

(A) The life expectancy of a member, the member's spouse, or the member's beneficiary may not be recalculated after the initial determination for purposes of determining benefits.

(B) If a member dies before the distribution of the member's benefits has begun, distributions to beneficiaries must begin no later than December 31 of the calendar year immediately following the calendar year in which the member died.

(C) The amount of an annuity paid to a member's beneficiary may not exceed the maximum determined under the incidental death benefit requirement of the Internal Revenue Code.

(6) The board may not:

(A) determine eligibility for benefits;

(B) compute rates of contribution; or

in a manner that discriminates in favor of members who are considered officers, supervisors, or highly compensated, as prohibited under Section 401(a)(4) of the Internal Revenue Code.

(7) Benefits paid under this chapter may not exceed the maximum benefits specified by Section 415 of the Internal Revenue Code.

(8) The salary taken into account under this chapter may not exceed the applicable amount under Section 401(a)(17) of the Internal Revenue Code.

(9) The board may not engage in a transaction prohibited by Section 503(b) of the Internal Revenue Code.

As added by P.L.55-1989, SEC.8. Amended by P.L.35-2012, SEC.30.

IC 5-10.2-2-2Separate accounts and subaccounts Sec. 2. (a) The board shall maintain the following separate accounts in the public employees' retirement fund:

(1) The annuity savings account.

(2) The retirement allowance account.

(3) A supplemental allowance reserve account for the purpose of paying postretirement benefit adjustments, including postretirement benefit increases, thirteenth checks, and other benefit changes or adjustments granted by the general assembly after June 30, 2018, to members of the public employees' retirement fund. The account consists of:

(A) amounts allotted to the account by the board from amounts transferred to the Indiana public retirement system under IC 4-30-16-3;

(B) amounts appropriated or transferred to the account by the general assembly;

(D) donations, gifts, bequests, devises, and grants made to the account.

(b) The board shall maintain the following two (2) separate accounts in the Indiana state teachers' retirement fund:

(1) The pre-1996 account.

(2) The 1996 account.

(1) The annuity savings account.

(2) The retirement allowance account.

(d) The supplemental allowance reserve account established under subsection (c)(3) for the pre-1996 account consists of:

(1) amounts allotted to the account by the board from amounts transferred to the Indiana public retirement system under IC 4-30-16-3;

(2) amounts appropriated or transferred to the account by the general assembly; and

(3) donations, gifts, bequests, devises, and grants made to the account.

(e) The supplemental allowance reserve account established under subsection (c)(3) for the 1996 account consists of:

(1) amounts allotted to the account by the board from amounts transferred to the Indiana public retirement system under IC 4-30-16-3;

(2) amounts appropriated or transferred to the account by the general assembly;

(3) contributions from employers under IC 5-10.2-12-3; and

(4) donations, gifts, bequests, devises, and grants made to the account.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985, SEC.3; P.L.54-1993, SEC.5; P.L.23-2011, SEC.8; P.L.127-2018, SEC.5.

IC 5-10.2-2-2.5Investment guidelines and limits established by boards; commingling of assets Sec. 2.5. (a) The board may establish investment guidelines and limits on all types of investments (including, but not limited to, stocks and bonds) and take other actions necessary to fulfill its duty as a fiduciary for all assets under its control, subject to the limitations and restrictions set forth in section 18 of this chapter (before its expiration), IC 5-10.3-5-3, IC 5-10.4-3-10, and IC 5-10.5-5.

(b) The board may commingle or pool assets with the assets of any other persons or entities. This authority includes, but is not limited to, the power to invest in commingled or pooled funds, partnerships, or mortgage pools, including pools that consist in part or entirely of mortgages that qualify as five star mortgages under the program established by IC 24-5-23.6. In the event of any such investment, the board shall keep separate detailed records of the assets invested. Any decision to commingle or pool assets is subject to the limitations and restrictions set forth in IC 5-10.3-5-3, IC 5-10.4-3-10, and IC 5-10.5-5.

As added by P.L.43-1997, SEC.1. Amended by P.L.61-2002, SEC.2; P.L.224-2003, SEC.185; P.L.2-2006, SEC.20; P.L.115-2010, SEC.2; P.L.35-2012, SEC.31; P.L.11-2023, SEC.19.

IC 5-10.2-2-3Annuity savings account; guaranteed program; stable value fund program; alternative investment programs Sec. 3. (a) The annuity savings account consists of:

(1) the members' contributions; and

(2) the interest credits on these contributions in the guaranteed fund (before January 1, 2017), the gain or loss in the balance of the member's account in the stable value fund (after December 31, 2016), or the gain or loss in market value on these contributions in the alternative investment program, as specified in section 4 of this chapter (before its expiration).

Each member shall be credited individually with the amount of the member's contributions and interest credits.

(b) The board shall maintain the investment program in effect on December 31, 1995, (referred to in this chapter as the guaranteed program) within the annuity savings account until January 1, 2017. In addition, the board shall establish and maintain a guaranteed program within the 1996 account until January 1, 2017. After December 31, 2016, the board shall establish an investment fund (referred to in this chapter as the stable value fund) that has preservation of capital as the primary investment objective. The board may establish investment guidelines and limits on all types of investments (including, but not limited to, stocks and bonds) and take other actions necessary to fulfill its duty as a fiduciary of the annuity savings account, subject to the limitations and restrictions set forth in IC 5-10.3-5-3, IC 5-10.4-3-10, and IC 5-10.5-5.

(c) The board shall establish alternative investment programs within the annuity savings account of the public employees' retirement fund, the pre-1996 account, and the 1996 account, based on the following requirements:

(1) The board shall maintain at least one (1) alternative investment program that is an indexed stock fund and one (1) alternative investment program that is a bond fund. The board may maintain one (1) or more alternative investment programs that:

(A) invest in one (1) or more commingled or pooled funds that consist in part or entirely of mortgages that qualify as five star mortgages under the program established by IC 24-5-23.6; or

(B) otherwise invest in mortgages that qualify as five star mortgages under the program established by IC 24-5-23.6.

(2) The programs should represent a variety of investment objectives under IC 5-10.3-5-3.

(3) No program may permit a member to withdraw money from the member's account except as provided in IC 5-10.2-3 and IC 5-10.2-4.

(4) All administrative costs of each alternative program shall be paid from the earnings on that program or as may be determined by the rules of the board.

(5) Except as provided in section 4(e) of this chapter (before its expiration), a valuation of each member's account must be completed as of:

(A) the last day of each quarter; or

(B) another time as the board may specify by rule.

(d) The board must prepare, at least annually, an analysis of the guaranteed program (before January 1, 2017), the stable value fund (after December 31, 2016), and each alternative investment program. This analysis must:

(1) include a description of the procedure for selecting an alternative investment program;

(2) be understandable by the majority of members; and

(3) include a description of prior investment performance.

(e) A member may direct the allocation of the amount credited to the member among the guaranteed fund (before January 1, 2017), the stable value fund (after December 31, 2016), and any available alternative investment funds, subject to the following conditions:

(1) A member may make a selection or change an existing selection under rules established by the board. The board shall allow a member to make a selection or change any existing selection at least once each quarter.

(2) The board shall implement the member's selection beginning on the first day of the next calendar quarter that begins at least thirty (30) days after the selection is received by the board or on an alternate date established by the rules of the board. This date is the effective date of the member's selection.

(3) A member may select any combination of the guaranteed fund (before January 1, 2017), the stable value fund (after December 31, 2016), or any available alternative investment funds, in ten percent (10%) increments or smaller increments that may be established by the rules of the board.

(4) A member's selection remains in effect until a new selection is made.

(5) On the effective date of a member's selection, the board shall reallocate the member's existing balance or balances in accordance with the member's direction, based on:

(A) for an alternative investment program balance, the market value on the effective date;

(B) for any guaranteed program balance, the account balance on the effective date; and

All contributions to the member's account shall be allocated as of the last day of that quarter or at an alternate time established by the rules of the board in accordance with the member's most recent effective direction. The board shall not reallocate the member's account at any other time.

(6) The provisions concerning the transition from the guaranteed program to the stable value fund program are met, as set forth in section 24 of this chapter.

(f) When a member who participates in an alternative investment program transfers the amount credited to the member from one (1) alternative investment program to another alternative investment program, to the guaranteed program (before January 1, 2017), or to the stable value fund program (after December 31, 2016), the amount credited to the member shall be valued at the market value of the member's investment, as of the day before the effective date of the member's selection or at an alternate time established by the rules of the board. When a member who participates in an alternative investment program retires, becomes disabled, dies, or suspends membership and withdraws from the fund, the amount credited to the member shall be the market value of the member's investment as of the last day of the quarter preceding the member's distribution or annuitization at retirement, disability, death, or suspension and withdrawal, plus contributions received after that date or at an alternate time established by the rules of the board.

(g) This subsection applies before January 1, 2017. When a member who participates in the guaranteed program transfers the amount credited to the member to an alternative investment program, the amount credited to the member in the guaranteed program is computed without regard to market value and is based on the balance of the member's account in the guaranteed program as of the last day of the quarter preceding the effective date of the transfer. However, the board may by rule provide for an alternate valuation date. When a member who participates in the guaranteed program retires, becomes disabled, dies, or suspends membership and withdraws from the fund, the amount credited to the member shall be computed without regard to market value and is based on the balance of the member's account in the guaranteed program as of the last day of the quarter preceding the member's distribution or annuitization at retirement, disability, death, or suspension and withdrawal, plus any contributions received since that date plus interest since that date. However, the board may by rule provide for an alternate valuation date.

(h) This subsection applies after December 31, 2016. When a member who participates in the stable value fund program transfers the amount credited to the member from the stable value fund program to an alternative investment program, the amount credited to the member shall be the balance of the member's account, as of the day before the effective date of the member's selection or at an alternate time established by the rules of the board. When a member who participates in the stable value fund program retires, becomes disabled, dies, or suspends membership and withdraws from the fund, the amount credited to the member shall be the balance of the member's account as of the last day of the quarter preceding the member's distribution or annuitization at retirement, disability, death, or suspension and withdrawal, plus contributions received after that date or at an alternate time established by the rules of the board.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985, SEC.4; P.L.40-1986, SEC.1; P.L.58-1987, SEC.1; P.L.55-1989, SEC.9; P.L.54-1993, SEC.6; P.L.43-1997, SEC.2; P.L.195-1999, SEC.9; P.L.285-2001, SEC.1; P.L.62-2005, SEC.1; P.L.2-2006, SEC.21; P.L.165-2009, SEC.2; P.L.1-2010, SEC.17; P.L.115-2010, SEC.3; P.L.35-2012, SEC.32; P.L.193-2016, SEC.3; P.L.217-2017, SEC.54; P.L.86-2018, SEC.14; P.L.212-2018(ss), SEC.12.

IC 5-10.2-2-3.3Crediting interest in annuity savings accounts Sec. 3.3. Interest credited prior to July 1, 2005, in the annuity savings account of the public employees' retirement fund to suspended members participating in the guaranteed fund (before its elimination on January 1, 2017) under section 3 of this chapter shall be treated as properly credited.

As added by P.L.220-2011, SEC.72. Amended by P.L.193-2016, SEC.4.

IC 5-10.2-2-3.5RepealedAs added by P.L.217-2017, SEC.55. Amended by P.L.86-2018, SEC.15. Repealed by P.L.212-2018(ss), SEC.13.

IC 5-10.2-2-4ExpiredAs added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1977(ss), P.L.1, SEC.1; Acts 1980, P.L.28, SEC.1; P.L.35-1985, SEC.5; P.L.43-1997, SEC.3; P.L.195-1999, SEC.10; P.L.165-2009, SEC.3; P.L.35-2012, SEC.33; P.L.193-2016, SEC.5. Expired 1-1-2017 by P.L.193-2016, SEC.5.

IC 5-10.2-2-4.1Crediting interest and omitted contributions after December 31, 2016 Sec. 4.1. (a) This section applies only after December 31, 2016.

(b) Except as provided in subsection (e), the market value of the stable value fund program shall be allocated at least annually to the members participating in that program.

(c) Except as provided in subsection (e), the market value of each alternative investment program shall be allocated at least annually to the members participating in that program.

(d) Contributions to the stable value fund program and the alternative investment programs shall be invested as of the last day of the quarter in which the contributions are received or at an alternate time established by the rules of the board.

(e) This subsection applies whenever the board is required to establish an earnings rate in order to credit earnings to an omitted contribution to a member's annuity savings account. As used in this subsection, "omitted contribution" means a contribution contributed by or on behalf of a member under IC 5-10.3-7-9 or IC 5-10.4-4-11 that is received by the board after the time required by IC 5-10.3-7-12.5 or IC 5-10.4-7-6(b)(1). Notwithstanding any law to the contrary, the board may by rule specify:

(1) a single composite earnings rate for the gain or loss in market value for the stable value fund program for the purpose of computing the gain or loss in market value on a member's contributions (including omitted contributions) in the stable value fund program; and

(2) a single composite earnings rate for the gain or loss in market value for each alternative investment program and the period to which the rate applies for the purpose of computing the gain or loss in market value on a member's contributions (including omitted contributions) in the alternate investment program.

As added by P.L.193-2016, SEC.6.

IC 5-10.2-2-5RepealedAs added by Acts 1977, P.L.53, SEC.2. Repealed by P.L.55-1989, SEC.67.

IC 5-10.2-2-6Retirement allowance accounts Sec. 6. (a) The retirement allowance account of the public employees' retirement fund consists of the retirement fund, exclusive of the annuity savings account and the supplemental allowance reserve account. The retirement allowance account also includes any amounts received under IC 5-10.3-12-24 or IC 5-10.3-12-24.5. For the public employees' retirement fund, separate accounts within the retirement allowance account shall be maintained for contributions made by each contribution rate group.

(b) The retirement allowance account of the pre-1996 account consists of the pre-1996 account, exclusive of the annuity savings account and the supplemental allowance reserve account.

(c) The retirement allowance account of the 1996 account consists of the 1996 account, exclusive of the annuity savings account and the supplemental allowance reserve account.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.55-1989, SEC.10; P.L.54-1993, SEC.7; P.L.13-2011, SEC.3; P.L.22-2011, SEC.1; P.L.23-2011, SEC.9; P.L.6-2012, SEC.28; P.L.35-2012, SEC.34; P.L.241-2015, SEC.3; P.L.127-2018, SEC.6.

IC 5-10.2-2-7Transfer of accounts Sec. 7. (a) When a member retires or dies in service under conditions which entitle a beneficiary or spouse to survivor benefits and if the member or survivor chooses to receive an annuity from the fund, the annuity savings account shall be charged with the amount credited to him in the account. This amount shall be credited to the retirement allowance account, and the annuity shall be paid from this account.

(b) When:

(1) a member of the public employees' retirement fund who is an employee of a participating political subdivision; or

(2) a member of the Indiana state teachers' retirement fund who is covered by the 1996 account and is an employee of a school corporation or other institution;

retires or dies in service under conditions which entitle a beneficiary or spouse to survivor benefits, the political subdivision's, school corporation's, or other institution's account in the retirement allowance account shall be charged with an amount equal to the actuarial reserve of the member's retirement pension or the survivor benefit. The amount charged shall be credited to the retirement allowance account, and the retirement pension or survivor benefit shall be paid from this account.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985, SEC.6; P.L.54-1993, SEC.8.

IC 5-10.2-2-8Payment and computation of benefits for combined creditable service Sec. 8. (a) For a member who retires after June 30, 2008, with service in more than one (1) retirement fund, the member may choose at the time the member files an application for retirement benefits whether to retire from the Indiana state teachers' retirement fund or from the public employees' retirement fund. The fund that the member chooses shall pay the pension benefit to the member. The pension shall be computed and vested status shall be determined on the basis of combined creditable service. The annuity, if any, shall be computed on the basis of the amounts credited to the member in annuity savings accounts in all funds minus any amount withdrawn by the member under IC 5-10.2-3-6.5 and any amounts credited to the member in annuity savings accounts in all funds that the member elects to retain in the annuity savings accounts. The funds in which the employee was a member shall pay to the fund responsible for payment of benefits the proportionate actuarial cost of the member's pension.

(b) A member of the Indiana state teachers' retirement fund who has served as a member of the general assembly and who retires after June 30, 1980, may choose at the member's retirement date whether to retire from the Indiana state teachers' retirement fund or from the public employees' retirement fund. If the member chooses to retire from the public employees' retirement fund, that fund is responsible for the payment of benefits provided in IC 5-10.2-4, and the Indiana state teachers' retirement fund shall pay to the public employees' retirement fund the proportionate actuarial cost of the member's pension.

As added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1980, P.L.28, SEC.2; P.L.35-1985, SEC.7; P.L.115-2008, SEC.5; P.L.40-2017, SEC.5.

IC 5-10.2-2-9Actuarial investigation and valuation Sec. 9. (a) The funds may employ a common actuary or actuarial service.

(b) At least once in every five (5) years and in every year in which this article is amended so that benefits are changed, the actuary shall make a separate actuarial investigation for each fund of the mortality, service, and compensation experience of the members and their beneficiaries and shall make a valuation of the assets and liabilities of the fund, using the "entry-age normal cost" method.

(c) The actuarial investigation must include in the determination of the liability and the rates of contribution the amount necessary to fully fund past and estimated future cost of living increases for members of the public employees' retirement fund amortized over a term determined by the board that does not exceed thirty (30) years.

(d) After June 30, 2018, the actuarial valuation must:

(1) segregate any amounts attributable to estimated future postretirement benefit increases, thirteenth checks, or other benefit changes or adjustments granted by the general assembly after June 30, 2018, to members of the public employees' retirement fund or the Indiana state teachers' retirement fund; and

(2) track separately the following:

(A) The liability associated with the postretirement benefit increase assumption used in the actuarial valuation.

(B) The specific assets used to fund postretirement benefit increases.

(e) The actuary performing the actuarial valuation shall, upon the board's request, provide a summary of potential postretirement benefit increase options and the related estimated costs of each option.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.54-1993, SEC.9; P.L.246-2005, SEC.48; P.L.111-2015, SEC.2; P.L.127-2018, SEC.7.

IC 5-10.2-2-10Mortality tables Sec. 10. Based on the actuarial investigation and valuation in section 9 of this chapter, the board shall adopt mortality, service, and such other tables as the board considers necessary for the implementation of this article. The board shall adopt a single mortality table for both men and women that reasonably reflects each fund's mortality experience.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.55-1989, SEC.11; P.L.35-2012, SEC.35.

IC 5-10.2-2-11Contribution rate determination; contribution rate groups; supplemental contributions; contributions and contribution rates report Sec. 11. (a) Based on the actuarial investigation and valuation in section 9 of this chapter, the board shall determine:

(1) the normal contribution for each contribution rate group, which is the amount necessary to fund the pension portion of the retirement benefit;

(2) the rate of normal contribution;

(3) the unfunded accrued liability of the public employees' retirement fund, the pre-1996 account, and the 1996 account, which is the excess of total accrued liability over the fund's or account's total assets, respectively; and

(4) the period, which must be thirty (30) years or a shorter period, necessary to amortize the unfunded accrued liability determined in subdivision (3).

(b) Based on the information in subsection (a), the board may determine, in its sole discretion, contributions and contribution rates for individual employers or for a group of employers. However, after June 30, 2018, the board shall segregate from its determination of contributions and contribution rates any amounts attributable to estimated future postretirement benefit increases, thirteenth checks, or other benefit changes or adjustments granted by the general assembly after June 30, 2018.

(c) The board shall require an employer to make a supplemental contribution to the fund in addition to the amounts described in subsection (a)(3) and (a)(4) in an amount necessary to pay the employer's share of the fund's actuarial unfunded liability that other employers would otherwise be required to pay because the employer's employees are becoming members of the plan under IC 5-10.3-12 or IC 5-10.4-8 instead of the fund. The amount necessary to pay an employer's contribution under this subsection in full must be made in a lump sum or in a series of payments determined by the board.

(d) The board's determinations under subsection (a):

(1) are subject to sections 1.5 and 11.5 of this chapter; and

(2) may not include an amount for a retired member for whom the employer may not make contributions during the member's period of reemployment as provided under IC 5-10.2-4-8(e).

(e) If the board determines contributions and contribution rates for one (1) or more employers under this section differ from the contributions and contribution rates determined by the actuarial investigation under section 9 of this chapter, the board shall notify the interim study committee for pension management oversight of this fact by reporting the board's action to the legislative services agency in an electronic format under IC 5-14-6.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.55-1989, SEC.12; P.L.54-1993, SEC.10; P.L.246-2005, SEC.49; P.L.72-2007, SEC.1; P.L.1-2009, SEC.16; P.L.182-2009(ss), SEC.70; P.L.23-2011, SEC.10; P.L.35-2012, SEC.36; P.L.195-2013, SEC.2; P.L.241-2015, SEC.4; P.L.217-2017, SEC.56; P.L.127-2018, SEC.8.

IC 5-10.2-2-11.5Employer contribution rates for Vincennes University Sec. 11.5. (a) As used in this section, "Vincennes University" refers to the state educational institution established under IC 21-25-2.

(b) Notwithstanding section 11 of this chapter or any other law, Vincennes University is not required to make employer contributions to the Indiana state teachers' retirement fund at any time for the employment during the period July 1, 2001, through June 30, 2009, of Vincennes University's employees who are members of the Indiana state teachers' retirement fund and are covered by the Indiana state teachers' retirement fund pre-1996 account.

(c) This subsection applies to employer contributions made by Vincennes University to the Indiana state teachers' retirement fund on account of the employment after June 30, 2009, of Vincennes University's employees who are members of the Indiana state teachers' retirement fund and are covered by the Indiana state teachers' retirement fund pre-1996 account. Notwithstanding section 11 of this chapter or any other law, Vincennes University is required to pay only the following employer contributions to the Indiana state teachers' retirement fund for those employees for the specified years:

(1) For the year beginning July 1, 2009, fifteen percent (15%) of the employer contribution otherwise determined for Vincennes University.

(2) For the year beginning July 1, 2010, twenty percent (20%) of the employer contribution otherwise determined for Vincennes University.

(3) For the year beginning July 1, 2011, twenty-five percent (25%) of the employer contribution otherwise determined for Vincennes University.

(4) For the year beginning July 1, 2012, thirty-five percent (35%) of the employer contribution otherwise determined for Vincennes University.

(5) For the year beginning July 1, 2013, fifty percent (50%) of the employer contribution otherwise determined for Vincennes University.

(6) For the year beginning July 1, 2014, seventy-five percent (75%) of the employer contribution otherwise determined for Vincennes University.

(7) For each year beginning after June 30, 2015, one hundred percent (100%) of the employer contribution otherwise determined for Vincennes University.

Payments made according to this subsection shall be considered payment in full of employer contributions.

As added by P.L.182-2009(ss), SEC.71.

IC 5-10.2-2-12State appropriation Sec. 12. (a) The general assembly shall appropriate biennially for each fund covered by this article that satisfies the conditions of section 1.5 of this chapter the sum of the following:

(1) the state's normal contribution for its employees to the public employees' retirement fund, the pre-1996 account, and the 1996 account, as determined in section 11 of this chapter;

(2) at least the anticipated increase in the state's unfunded accrued liability in each fund, other than the pre-1996 account, as estimated by the board under the procedures specified in section 11 of this chapter; and

(3) the state's obligation as estimated by the board for disability benefits and benefits payable under retirement fund laws in effect before April 1, 1955.

The request for this sum for each fund shall be submitted to the budget agency as one (1) item for each fund. The board shall submit to the agency its actuarial investigation and valuation and any other actuarial information to support the request.

(b) The biennial appropriation specified in subsection (a) of this section shall be paid annually to each fund covered by this article that satisfies the conditions of section 1.5 of this chapter in equal installments in July of each year of the biennium.

(c) The biennial appropriation under this section shall be deposited in the trust of each fund and used only as provided in section 1.5 of this chapter.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.54-1993, SEC.11; P.L.119-2000, SEC.3; P.L.35-2012, SEC.37.

IC 5-10.2-2-12.5Submission of contributions, records, and reports electronically Sec. 12.5. (a) This section applies to reports, records, and contributions submitted after December 31, 2009, by an employer.

(b) As used in this section, "electronic funds transfer" has the meaning set forth in IC 4-8.1-2-7(f).

(1) the employer contributions determined under sections 11 and 11.5 of this chapter; and

(2) contributions paid by or on behalf of a member under IC 5-10.3-7-9 or IC 5-10.4-4-11.

(d) Except as provided in subsection (e), an employer shall submit in a uniform format through a secure connection over the Internet or through other electronic means specified by the board the reports and records described in:

(1) IC 5-10.3-7-12.5, for the public employees' retirement fund; or

(2) IC 5-10.4-7-6, for the Indiana state teachers' retirement fund.

(e) An employer that is unable to comply with either subsection (c) or (d), or both, may request that the board grant a waiver of the requirement of subsection (c) or (d), or both. The employer must:

(1) state the reason for requesting the waiver;

(2) provide a date, not to exceed two (2) years from the date the employer is first subject to either the electronic funds transfer requirement or the electronic reporting requirement of this section, by which the employer agrees to comply with the requirement of subsection (c) or (d), or both; and

(3) sign and verify the waiver form.

(f) The board may:

(1) grant the employer's request for a waiver; and

(2) specify the date by which the employer is required to comply with the electronic funds transfer requirement or the electronic reporting requirement, or both.

(g) The board shall establish a waiver form consistent with this section.

(h) The board may establish or amend its rules or policies as necessary to administer this section.

As added by P.L.165-2009, SEC.4. Amended by P.L.182-2009(ss), SEC.72.

IC 5-10.2-2-13Custodial agreements for securities; servicing of mortgages; securities lending program Sec. 13. (a) The board may enter into a custodial agreement with a trust company or state or national bank to provide for the custody and servicing of the securities and other investments under the control of the board.

(b) The agreement may contain such terms as the board considers desirable including:

(1) the custody, safeguarding or indemnity, servicing, handling and delivery of the securities and other investments; and

(2) the payment of taxes, fees of the custodian, and other expenses and payments required in connection with the securities and investments.

(c) Any person, firm, limited liability company, or corporation authorized to service mortgage loans guaranteed by the federal housing administration may be authorized by the board to service a mortgage loan held by the fund.

(d) The board may authorize its custodian to enter into a securities lending program agreement, under which the securities held by each fund may be loaned in order to provide revenue to the fund. Such an agreement must require that collateral be pledged in excess of the total market value of the loaned securities.

As added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1980, P.L.28, SEC.3; P.L.8-1993, SEC.55; P.L.35-2012, SEC.38.

IC 5-10.2-2-14Transfer of benefits to financial institutions; rollover Sec. 14. (a) Upon written authorization of a retired member or a retired member's survivor or beneficiary, each fund may satisfy a claim for benefits by directly depositing the amount of the benefits payable to the retired member's or the survivor's or beneficiary's account in any state or federal chartered financial institution (as defined in IC 28-1-1-3(1)).

(b) All forms and accounting procedures for implementing subsection (a) must be approved by the state board of accounts, and any contract or agreement between a fund and a state or federal chartered financial institution (as defined in IC 28-1-1-3(1)) must be approved by the attorney general and the governor.

(c) Notwithstanding any other provision of the retirement fund law, to the extent required by Internal Revenue Code Section 401(a)(31), as added by the Unemployment Compensation Amendments of 1992 (P.L.102-318), and any amendments and regulations related to Section 401(a)(31), each retirement fund shall allow participants and qualified beneficiaries to elect a direct rollover of eligible distributions to another eligible retirement plan.

As added by Acts 1979, P.L.35, SEC.1. Amended by P.L.10-1993, SEC.3; P.L.42-1993, SEC.2; P.L.1-1994, SEC.18.

IC 5-10.2-2-15RepealedAs added by P.L.55-1993, SEC.1. Amended by P.L.5-1997, SEC.2. Repealed by P.L.1-2002, SEC.172.

IC 5-10.2-2-16RepealedAs added by P.L.246-2001, SEC.2. Repealed by P.L.23-2011, SEC.31.

IC 5-10.2-2-17RepealedAs added by P.L.246-2001, SEC.3. Amended by P.L.2-2006, SEC.22. Repealed by P.L.23-2011, SEC.31.

IC 5-10.2-2-18ExpiredAs added by P.L.224-2003, SEC.186. Amended by P.L.4-2005, SEC.24. Expired 7-1-2013 by P.L.4-2005, SEC.24.

IC 5-10.2-2-19RepealedAs added by P.L.107-2010, SEC.1. Repealed by P.L.23-2011, SEC.31.

IC 5-10.2-2-20Withdrawal of miscellaneous participating entity Sec. 20. (a) As used in this section:

(1) "fund" means the public employees' retirement fund; and

(2) "withdrawing participating entity" means a miscellaneous participating entity that takes an action described in subsection (b).

(b) Subject to the provisions of this section, a miscellaneous participating entity may do the following:

(1) Stop its participation in the fund and withdraw all of the miscellaneous participating entity's employees from participation in the fund.

(2) Withdraw a departmental, an occupational, or other definable classification of employees from participation in the fund.

(3) Stop the miscellaneous participating entity's participation in the fund by:

(A) selling all of the miscellaneous participating entity's assets; or

(B) ceasing to exist.

(c) The withdrawal of a miscellaneous participating entity's participation in the fund is effective on a termination date established by the board. The termination date may not occur before all the following have occurred:

(1) The withdrawing participating entity has provided written notice of the following to the board:

(A) The withdrawing participating entity's intent to cease participation.

(B) The names of the withdrawing participating entity's current employees and former employees as of the date on which the notice is provided.

(2) The expiration of:

(A) a ninety (90) day period following the filing of the notice with the board, for a withdrawing participating entity that sells all of the withdrawing participating entity's assets or that ceases to exist; or

(B) a two (2) year period following the filing of the notice with the board, for all other withdrawing participating entities.

(3) The withdrawing participating entity takes all actions required in subsections (d) through (g).

(d) With respect to retired members who have creditable service with the withdrawing participating entity, the withdrawing participating entity must contribute to the fund any additional amounts that the board determines are necessary to provide for reserves with sufficient assets to pay all future benefits from the fund to those retired members attributable to service with the withdrawing participating entity. The contribution by the withdrawing participating entity must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years.

(e) A member who is an employee of the miscellaneous participating entity as of the date of the notice under subsection (c) is vested in the pension portion of the member's retirement benefit. The withdrawing participating entity must contribute to the fund the amount the board determines is necessary to fund fully the vested benefit attributable to service with the withdrawing participating entity. The contribution by the withdrawing participating entity must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years.

(f) A member who is covered by subsection (e) and who is at least sixty-five (65) years of age may elect to retire under IC 5-10.2-4-1 even if the member has fewer than ten (10) years of service. The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of service.

(g) With respect to members of the fund who have creditable service with the withdrawing participating entity and who are not employees as of the date of the notice under subsection (c), the withdrawing participating entity must contribute the amount that the board determines is necessary to fund fully the service for those members that is attributable to service with the withdrawing participating entity. The contribution by the withdrawing participating entity must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years.

As added by P.L.241-2015, SEC.5.

IC 5-10.2-2-21Freeze in participation by miscellaneous participating entity Sec. 21. (a) This section applies to a miscellaneous participating entity that takes any of the following actions on or after December 31, 2010:

(1) The miscellaneous participating entity determines a date:

(A) before which newly hired employees of a departmental, occupational, or other definable classification of employees are required or allowed to participate in the fund; and

(B) on or after which newly hired employees of the departmental, occupational, or other definable classification of employees are not allowed to participate in the fund.

(2) The miscellaneous participating entity determines a date:

(A) before which newly hired employees of a departmental, occupational, or other definable classification of employees are required to participate in the fund; and

(B) on or after which newly hired employees of the departmental, occupational, or other definable classification of employees are allowed to choose to participate in a retirement plan other than the fund.

(3) The miscellaneous participating entity modifies its employee classification scheme as of a specified date in such a way that there is at least one (1) position that:

(A) is covered by the fund before the specified date; and

(B) is not covered by the fund after the specified date.

(b) The following definitions apply throughout this section:

(1) "Freeze" or "freeze participation in the fund" means to take an action described in subsection (a).

(2) "Freezing participating entity" means a miscellaneous participating entity that freezes its participation in the fund.

(3) "Fund" means the public employees' retirement fund.

(c) A miscellaneous participating entity that freezes its participation in the fund after December 31, 2010, shall do the following:

(1) Provide written notice of the following to the board:

(A) The action that was taken under subsection (a) by the freezing participating entity.

(B) The effective date of the action taken under subsection (a).

(i) are covered by the fund before the effective date of the freeze; and

(ii) will not be covered by the fund on or after the effective date of the freeze.

(D) The names of the freezing participating entity's current employees and former employees as of the date on which the notice is provided.

(2) Comply with subsections (d) through (f).

(d) With respect to retired members who have creditable service with the freezing participating entity, the freezing participating entity shall contribute to the fund any additional amounts that the board determines are necessary to provide for reserves with sufficient assets to pay all future benefits from the fund to those retired members attributable to service with the freezing participating entity. The board shall collaborate with the freezing participating entity by sharing the actuarial method and report used in determining the amounts under this subsection and under subsections (e) and (f). The contribution by the freezing participating entity must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years, as determined by the freezing participating entity.

(e) With respect to members of the fund who have creditable service with the freezing participating entity and who are not employees as of the effective date on which the miscellaneous participating entity freezes its participation in the fund, the freezing participating entity shall contribute the amount that the board determines is necessary to fund fully the service for those members that is attributable to service with the freezing participating entity. The board shall collaborate with the freezing participating entity by sharing the actuarial method and report. The contribution by the freezing participating entity must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years, as determined by the freezing participating entity.

(f) With respect to members of the fund who are employees of the freezing participating entity on the date of the notice under subsection (c), the freezing participating entity shall continue to contribute the amounts required under section 11 of this chapter for those employees for the duration of their employment with the freezing participating entity. In addition, the freezing participating entity shall contribute to the fund the amount the board determines is necessary to fund fully the benefits attributable to service with the freezing participating entity that are vested or will become vested and are not expected to be fully funded through the continuing contributions under section 11 of this chapter during the duration of the members' employment with the freezing participating entity. The board shall collaborate with the freezing participating entity by sharing the actuarial method and report. The contribution by the freezing participating entity must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years, as determined by the freezing participating entity.

(g) The Indiana public retirement system may do any of the following to determine a miscellaneous participating entity's compliance with this section:

(1) Require reports from the miscellaneous participating entity.

(2) Audit the miscellaneous participating entity.

(h) A miscellaneous participating entity must begin payments required under this section not later than July 1, 2016, or a date determined by the board. The board may charge interest on any amount that remains unpaid after the payment date determined by the board.

As added by P.L.241-2015, SEC.6. Amended by P.L.193-2016, SEC.7.

IC 5-10.2-2-22Retirement plans offered by miscellaneous participating entity that withdraws from or freezes participation in public employees' retirement fund Sec. 22. (a) This section applies to a miscellaneous participating entity that:

(1) either:

(A) withdraws from the public employees' retirement fund under section 20 of this chapter; or

(B) freezes its participation in the public employees' retirement fund as described in section 21 of this chapter; and

(2) chooses thereafter to offer a retirement plan to its employees.

(b) Except as provided in subsection (c), a miscellaneous participating entity to which this section applies may offer a retirement plan to its employees only by participating in the defined contribution plan under IC 5-10.3-12.

(c) If, on July 1, 2015, a miscellaneous participating entity to which this section applies has established or is otherwise participating in a defined contribution plan other than the defined contribution plan under IC 5-10.3-12, the miscellaneous participating entity may continue to participate in the defined contribution plan in which the miscellaneous participating entity participated on July 1, 2015.

As added by P.L.241-2015, SEC.7.

IC 5-10.2-2-23Election or discretionary action by branch of state government Sec. 23. If any provision of this article, IC 5-10.3, or IC 5-10.4 allows the state as an employer to make an election or take discretionary action, the election or discretionary action shall be taken by the following entities, as applicable:

(1) The governor, if the election or discretionary action involves an elected officer, appointed officer, or employee of the executive branch.

(2) The legislative council, if the election or discretionary action involves a senator, a representative, or an employee of the legislative branch.

(3) The chief justice of the supreme court, if the election or discretionary action involves:

(A) a justice;

(B) a judge;

(D) an officer paid by the state under IC 33-23-5-10, IC 33-38-5-7, or IC 33-39-6-2; or

(E) an employee of the judicial branch of state government.

As added by P.L.241-2015, SEC.8.

IC 5-10.2-2-24Transition from guaranteed program to stable value fund program Sec. 24. (a) After December 31, 2016, a member may not make contributions to the guaranteed program.

(b) For those members who as of December 31, 2016, have designated the guaranteed program as the investment program to receive all or part of the contributions to the member's annuity savings account, the board shall designate as a substitute one (1) or more alternative investment programs that are to receive those contributions after December 31, 2016. The designation by the board of an alternative investment program to receive a member's contributions under this subsection remains in effect until the member makes another allowable designation.

(c) After December 31, 2016, if a member has allocated all or part of the amount credited to the member to the guaranteed program, the board shall exchange the amount allocated to the guaranteed program by the member for an equivalent market value allocation to the stable value fund.

(d) The board shall eliminate the guaranteed program on January 1, 2017.

(e) After December 31, 2016, a member may allocate contributions and money invested in the alternative investment program to the stable value fund.

As added by P.L.193-2016, SEC.8.

IC 5-10.2-3Chapter 3. Creditable Service; Contributions; Withdrawals; Death Settlements

5-10.2-3-1Creditable service 5-10.2-3-1.2Additional service credit purchase 5-10.2-3-2Members' contributions; employers picking up 5-10.2-3-3Deduction of contributions 5-10.2-3-4Repealed 5-10.2-3-5Suspension of membership 5-10.2-3-6Withdrawal of contributions; treatment of suspended member's account 5-10.2-3-6.2Withdrawal of contributions to purchase creditable service in another governmental retirement plan 5-10.2-3-6.3Suspension of membership; transfer of amount in annuity savings account to purchase service credit in sheriff's pension trust 5-10.2-3-6.5Withdrawal of annuity savings account before retirement 5-10.2-3-7Repealed 5-10.2-3-7.1Repealed 5-10.2-3-7.2Repealed 5-10.2-3-7.5Survivor benefits; forfeiture 5-10.2-3-7.6Survivor benefits of member with 30 years creditable service 5-10.2-3-8Survivor benefits; death while not in service 5-10.2-3-9Survivor benefits; death after July 1, 1991, while eligible for retirement benefits 5-10.2-3-10Rollover distributions

IC 5-10.2-3-1Creditable service Sec. 1. (a) Except as provided in IC 5-10.2-4-8(e), each member's creditable service, for the purpose of computing benefits under this article, consists of all service in a position covered by a retirement fund plus all other service for which the retirement fund law gives credit.

(b) No member may be required to pay any contributions for service before the member is covered by this article as a condition precedent to receiving benefits under this article. However, the member must furnish to the board proof of the service in a position covered by the fund under which the member claims service.

(c) A member who has past service as an employee of the state or a participating political subdivision in a position which was not covered by the retirement fund is entitled to credit for this service if the position becomes covered before January 1, 1985, by the Indiana state teachers' retirement fund, the public employees' retirement fund, or the retirement fund for the state board of accounts and if the member submits to the board proof of the service in a position covered by the fund in which the member claims service.

(d) A member who has past service in a position that was not covered by the retirement fund is entitled to credit for this service if the position becomes covered after December 31, 1984, by a fund while the member holds that position or another position with the same employer and if the member submits to the board proof of the service in a position covered by the fund in which the member claims service.

(e) The proof required by this section must:

(1) be submitted in a form approved by the director;

(2) contain dates and nature of service and other information required by the director; and

(3) be certified by the governing body or its agent.

(f) A member who is a state employee is entitled to service credit for the time the member is receiving disability benefits under a disability plan established under IC 5-10-8-7.

(g) If a participant in the legislators' defined benefit plan does not become entitled to a benefit from that plan, the board shall include the participant's service in the general assembly in the determination of eligibility for, and computation of, benefits under PERF or TRF at the time the participant would be eligible to receive benefits under PERF or TRF. After benefits commence under PERF or TRF with the general assembly service included, the participant's general assembly service may not be used for the computation of benefits under IC 2-3.5-4.

(h) A member may receive service credit for all or a part of the member's creditable service in another governmental retirement plan under IC 5-10.3-7-4.5 and IC 5-10.4-4-4. A member may not receive credit for service for which the member receives service credit in another retirement plan maintained by a state, a political subdivision, or an instrumentality of the state for service that PERF or TRF would otherwise give credit.

(i) A member may use all or a part of the member's creditable service under PERF or TRF in another governmental retirement plan under the terms of the other plan. Creditable service used under the other governmental retirement plan may not be used in PERF or TRF.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.28-1984, SEC.1; P.L.5-1990, SEC.5; P.L.43-1991, SEC.1; P.L.22-1998, SEC.3; P.L.2-2006, SEC.23; P.L.72-2007, SEC.2; P.L.1-2009, SEC.17; P.L.35-2012, SEC.39; P.L.195-2013, SEC.3.

IC 5-10.2-3-1.2Additional service credit purchase Sec. 1.2. (a) A member who has earned at least ten (10) years of service in a position covered by PERF, TRF, or a combination of the two (2) funds may purchase one (1) year of service credit for each five (5) years of service that the member has completed in a position covered by PERF or TRF.

(b) Before a member retires, a member who desires to purchase additional service credit under subsection (a) must contribute to the fund as follows:

(1) Contributions that are equal to the product of the following:

(A) The member's salary at the time the member actually makes a contribution for the service credit.

(B) A rate, determined by the actuary for the fund, that is based on the age of the member at the time the member actually makes a contribution for the service credit and computed to result in a contribution amount that approximates the actuarial present value of the benefit attributable to the service credit purchased.

(2) Contributions for any accrued interest, at a rate determined by the actuary for the fund, for the period from the member's initial membership in the fund to the date payment is made by the member.

(1) The board may allow a member to make periodic payments of the contributions required for the purchase of service credit. The board shall determine the length of the period during which the payments must be made.

(2) The board may deny an application for the purchase of service credit if the purchase would exceed the limitations under Section 415 of the Internal Revenue Code.

(3) A member may not claim the service credit for the purpose of computing benefits unless the member has made all payments required for the purchase of the service credit.

(4) To the extent permitted by the Internal Revenue Code and applicable regulations, a member may purchase service credit under this section by a rollover distribution to the fund from any of the following:

(A) A qualified plan described in Section 401(a) or Section 403(a) of the Internal Revenue Code.

(B) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.

(C) An eligible plan that is maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state under Section 457(b) of the Internal Revenue Code.

(D) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code.

(d) A member who terminates employment before satisfying the eligibility requirements necessary to receive a monthly benefit may withdraw the purchase amount, plus accumulated interest, after submitting a properly completed application for a refund to the fund. However, the member must also apply for a refund of the member's entire annuity savings account under section 6 or 6.5 of this chapter to be eligible for a refund of the member's rollover amount.

(e) For a member who is a state employee, the employer may pay all or a part of the member contributions required for the purchase of service credit under this section. In that event, the actuary shall determine the amortization, and subsections (c)(1), (c)(3), (c)(4), and (d) do not apply.

(f) For a member who is an employee of a participating political subdivision, the employer may adopt an ordinance to pay all or a part of the member contributions required for the purchase of service credit under this section. In that event, the actuary shall determine the amortization, and subsections (c)(1), (c)(3), (c)(4), and (d) do not apply.

As added by P.L.61-2002, SEC.3. Amended by P.L.115-2008, SEC.6.

IC 5-10.2-3-2Members' contributions; employers picking up Sec. 2. (a) Subject to IC 5-10.2-2-1.5, as used in this section, "compensation" means:

(1) the basic salary earned by and paid to the member; plus

(2) the amount that would have been a part of the basic salary earned and paid except for the member's salary reduction agreement established under Section 125, 403(b), or 457 of the Internal Revenue Code.

(b) Except in cases where:

(1) the contribution is made on behalf of the member; or

(2) a retired member may not make contributions during a period of reemployment as provided in IC 5-10.2-4-8(e);

each member shall, as a condition of employment, contribute to the fund three percent (3%) of the member's compensation.

(c) Except as provided in IC 5-10.2-4-8(e), a member of a fund may make contributions to the member's annuity savings account in addition to the contributions required under subsection (b). The total amount of contributions that may be made to a member's annuity savings account with respect to a payroll period under this subsection may not exceed ten percent (10%) of the member's compensation for that payroll period. The contributions made under this subsection may be picked-up and paid by an employer as provided in subsection (d).

(d) In compliance with rules adopted by the board, an employer, under Section 414(h)(2) of the Internal Revenue Code, may pick-up and pay the contributions under subsection (c), subject to approval of the board and to the board's receipt of a favorable private letter ruling from the Internal Revenue Service. The employer shall reduce the member's compensation by an amount equal to the amount of the member's contributions under subsection (c) that are picked-up by the employer. The board shall by rule establish the procedural requirements for employers to carry out the pick-up in compliance with Section 414(h)(2) of the Internal Revenue Code.

(e) A member's contributions and interest credits belong to the member and do not belong to the state or political subdivision.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985, SEC.8; P.L.55-1989, SEC.13; P.L.53-2000, SEC.1; P.L.246-2001, SEC.4; P.L.72-2007, SEC.3; P.L.1-2009, SEC.18; P.L.35-2012, SEC.40; P.L.195-2013, SEC.4.

IC 5-10.2-3-3Deduction of contributions Sec. 3. (a) This section:

(1) does not apply to a retired member who begins a period of reemployment in a covered position more than thirty (30) days after the member's retirement, except as provided in subdivision (2); or

(2) applies to the entire period of reemployment for a retired member of the public employees' retirement fund who, before July 1, 2013, begins a period of reemployment in a covered position.

(b) Members' contributions, other than members' contributions paid on behalf of a member, shall be deducted from their compensation even if the net compensation to the member is less than the statutory minimum.

(c) The payment of a member's compensation minus the deduction constitutes a complete discharge of all claims for services rendered by the member during the period covered by the payment, except the claim for benefits under this article.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.41-1983, SEC.5; P.L.35-1985, SEC.9; P.L.72-2007, SEC.4; P.L.76-2008, SEC.1; P.L.195-2013, SEC.5.

IC 5-10.2-3-4RepealedAs added by Acts 1977, P.L.53, SEC.2. Repealed by P.L.46-1988, SEC.14.

IC 5-10.2-3-5Suspension of membership Sec. 5. (a) A member may suspend the member's membership in the applicable fund if the member terminates employment and is not currently employed in a covered position with the applicable fund.

(b) After five (5) continuous years in which the member performs no service, the member's membership shall be automatically suspended by the board unless the member has vested status.

(c) A member retains the member's creditable service for the period of employment before the suspension of membership, but only to the extent that the same period of employment is not being used by another governmental plan for purposes of the member's benefit in the other governmental plan.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.22-1998, SEC.4; P.L.195-1999, SEC.11; P.L.165-2009, SEC.5; P.L.193-2016, SEC.9; P.L.179-2018, SEC.6.

IC 5-10.2-3-6Withdrawal of contributions; treatment of suspended member's account Sec. 6. (a) After a member is suspended under section 5 of this chapter, the member is entitled to withdraw in a lump sum all or part of the amount of the member's contributions plus interest credited to the member.

(b) Except as provided in subsection (d), the suspended member's money is to remain in the stable value fund or the alternative investment program as the money was allocated on the day the member was suspended until:

(1) the suspended member changes the allocation of the money among the stable value fund and the alternative investment program;

(2) the suspended member withdraws the money from the fund; or

(3) the fund is otherwise required to distribute the money.

Any earnings or losses on the money shall be credited to the member in the same manner as if the member's membership was not suspended.

(c) The board may charge a reasonable annual administrative fee against the money held in the annuity savings account of a suspended member.

(d) If:

(1) a member is suspended under section 5 of this chapter;

(2) the member has not attained vested status in the fund; and

(3) the value of the member's annuity savings account is not more than one thousand dollars ($1,000);

the board may pay the member's annuity savings account only in a lump sum.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.25-1994, SEC.3; P.L.2-1995, SEC.15; P.L.195-1999, SEC.12; P.L.193-2016, SEC.10; P.L.27-2019, SEC.1.

IC 5-10.2-3-6.2Withdrawal of contributions to purchase creditable service in another governmental retirement plan Sec. 6.2. (a) This section applies to a member of the Indiana state teachers' retirement fund.

(b) A member who:

(1) has attained vested status in the fund;

(2) has terminated employment;

(3) has not begun receiving benefits; and

(4) is transferring creditable service earned under TRF to another governmental retirement plan under section 1(i) of this chapter;

may suspend the member's membership and withdraw the member's annuity savings account to purchase creditable service in the other governmental retirement plan.

As added by P.L.61-2002, SEC.4. Amended by P.L.115-2008, SEC.7.

IC 5-10.2-3-6.3Suspension of membership; transfer of amount in annuity savings account to purchase service credit in sheriff's pension trust Sec. 6.3. (a) Notwithstanding any other provision in this article, IC 5-10.3, or IC 5-10.4, a member who:

(1) has not attained vested status in the fund;

(2) is not an active participant in the fund; and

(3) is an active participant in a retirement plan established under IC 36-8-10-12;

may suspend membership in the fund and transfer the entire amount in the member's annuity savings account in accordance with the member's purchase of service credit under IC 36-8-10-12.5.

(b) A member who makes a transfer under IC 36-8-10-12.5 from the member's annuity savings account shall provide notice of the transfer on a form provided by the board.

(d) A member who makes a transfer under this section waives all credit for service in the fund.

As added by P.L.98-2009, SEC.1.

IC 5-10.2-3-6.5Withdrawal of annuity savings account before retirement Sec. 6.5. (a) After December 31, 2020, a member who meets all of the following requirements may elect to withdraw all or part of the amount in the member's annuity savings account:

(1) The member has terminated employment with the applicable fund and is not currently employed in a covered position for the applicable fund.

(2) The member makes the election described in this subsection:

(A) after December 31, 2008, if the member is a member of the public employees' retirement fund; or

(B) after June 30, 2009, if the member is a member of the Indiana state teachers' retirement fund.

(3) Except as provided in subsection (b), the member is not eligible for:

(A) before July 1, 2011, a reduced or unreduced retirement; or

(B) after June 30, 2011, an unreduced retirement;

under IC 5-10.2-4 on the date the fund receives notice of the election described in this subsection.

(b) The requirement described in subsection (a)(3) does not apply to a member of the public employees' retirement fund who:

(1) was eligible for a reduced or unreduced retirement; and

(2) received a distribution under this section;

after December 31, 2008, and before June 30, 2010.

(c) A member who elects to withdraw all or part of the amount in the member's annuity savings account under subsection (a) shall provide notice of the election on a form provided by the board.

(d) The election to withdraw all or part of the amount in the member's annuity savings account is irrevocable.

(e) The board shall pay an amount withdrawn from the member's annuity savings account under this section as a lump sum.

(f) Except as provided in subsection (g), a member who makes a withdrawal under this section is entitled to receive, when the member becomes eligible to receive and applies for a retirement benefit under IC 5-10.2-4, a retirement benefit equal to the pension provided by employer contributions computed under IC 5-10.2-4.

(g) A member who:

(1) transfers creditable service earned under the fund to another governmental retirement plan under section 1(i) of this chapter; and

(2) withdraws the member's annuity savings account under this section to purchase the service;

may not use the transferred service in the computation of a retirement benefit payable under subsection (f).

(h) After June 30, 2019, a member's withdrawal of all or part of the member's annuity savings account under:

(1) this section; or

(2) rules adopted by the board with respect to the Pension Protection Act of 2006;

has no effect on the member's service credit or pension.

(i) Subject to the Pension Protection Act of 2006 and notwithstanding any state law, after December 31, 2020, an active member who:

(1) becomes age and service eligible for normal retirement; and

(2) is at least fifty-nine and one-half (59 1/2) years of age;

may withdraw all or part of the amount in the member's annuity savings account without consequence to the member's pension benefit under the fund and without separating from a covered position.

As added by P.L.115-2008, SEC.8. Amended by P.L.115-2009, SEC.1; P.L.99-2010, SEC.2; P.L.13-2011, SEC.4; P.L.40-2017, SEC.6; P.L.179-2018, SEC.7; P.L.27-2019, SEC.2; P.L.51-2020, SEC.2.

IC 5-10.2-3-7RepealedAs added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1978, P.L.24, SEC.1; Acts 1980, P.L.28, SEC.4. Repealed by P.L.55-1989, SEC.67.

IC 5-10.2-3-7.1RepealedAs added by P.L.1-1989, SEC.14. Repealed by P.L.4-1990, SEC.22.

IC 5-10.2-3-7.2RepealedAs added by P.L.35-1985, SEC.10. Repealed by P.L.55-1989, SEC.67.

IC 5-10.2-3-7.5Survivor benefits; forfeiture Sec. 7.5. (a) This subsection applies to members who die after March 31, 1990, and before January 1, 2007. A surviving dependent or surviving spouse of a member who dies in service is entitled to a survivor benefit if:

(1) the member has:

(A) at least ten (10) years of creditable service, if the member died in service as a member of the general assembly;

(B) at least fifteen (15) years of creditable service, if the member died in service in any other position covered by the retirement fund; or

(i) was at least sixty-five (65) years of age; and

(ii) died in service in a position covered by the teachers' retirement fund; and

(2) the surviving dependent or surviving spouse qualifies for a survivor benefit under subsection (d) or (e).

(b) This subsection applies to members who die after December 31, 2006, and before July 1, 2018. A surviving dependent or surviving spouse of a member who dies is entitled to a survivor benefit if:

(1) the member has:

(A) at least ten (10) years of creditable service, if the member died in service as a member of the general assembly;

(B) at least ten (10) years but not more than fourteen (14) years of creditable service if the member was at least sixty-five (65) years of age and died in service in a position covered by the fund (other than a position described in clause (A)); or

(C) at least fifteen (15) years of creditable service, if the member died in service in a position covered by the fund (other than a position described in clause (A)); and

(2) the surviving dependent or surviving spouse qualifies for a survivor benefit under subsection (d) or (e).

(c) This subsection applies to a member who dies after June 30, 2018, regardless of whether the member dies in service in a position covered by the fund or the member dies out of service. A surviving dependent or surviving spouse of a member who dies is entitled to a survivor benefit if:

(1) the member has at least ten (10) years of creditable service; and

(2) the surviving dependent or surviving spouse qualifies for a survivor benefit under subsection (d) or (e).

(d) If a member described in subsection (a), (b), or (c) dies with a surviving spouse who was married to the member for at least two (2) years, the surviving spouse is entitled to a survivor benefit equal to the monthly pension benefit that would have been payable to the spouse under the joint and survivor option of IC 5-10.2-4-7 upon the member's death following retirement at:

(1) fifty (50) years of age; or

(2) the actual date of death;

whichever is later. However, benefits payable under this subsection are subject to subsections (g) and (i).

(e) If a member described in subsection (a), (b), or (c) dies without a surviving spouse who was married to the member for at least two (2) years, but with a surviving dependent, the surviving dependent is entitled to a survivor benefit in a monthly amount equal to the actuarial equivalent of the monthly pension benefit that would have been payable to the spouse (assuming the spouse would have had the same birth date as the member) under the joint and survivor option of IC 5-10.2-4-7 upon the member's death following retirement at:

(1) fifty (50) years of age; or

(2) the actual date of death;

whichever is later. If there are two (2) or more surviving dependents, the actuarial equivalent of the benefit described in this subsection shall be calculated and, considering the dependents' attained ages, an equal dollar amount shall be determined as the monthly pension benefit to be paid to each dependent. Monthly pension benefits under this subsection are payable until the date the dependent becomes eighteen (18) years of age or dies, whichever is earlier. However, if a dependent has a permanent and total disability (using disability guidelines established by the Social Security Administration) at the date the dependent reaches eighteen (18) years of age, the monthly pension benefit is payable until the date the dependent no longer has a disability (using disability guidelines established by the Social Security Administration) or dies, whichever is earlier. Benefits payable under this subsection are subject to subsections (g) and (i).

(f) This subsection applies if a member did not designate a beneficiary or the designated beneficiary does not survive the member. Except as provided in subsections (g) and (j), the surviving spouse or surviving dependent of a member who is entitled to a survivor benefit under subsection (d) or (e) or section 7.6 of this chapter may elect to receive one (1) or more lump sum payments that do not exceed in aggregate the total amount credited to the member in the member's annuity savings account or an amount equal to the member's federal income tax basis in the member's annuity savings account as of December 31, 1986. If a surviving spouse or surviving dependent makes such an election, the lump sum payments made to the surviving spouse or surviving dependent under this subsection are excluded from the calculation of an annuity that is part of the survivor benefit under subsection (d) or (e) or section 7.6 of this chapter.

(g) If a member is survived by a designated beneficiary, the following provisions apply:

(1) If the member is survived by one (1) designated beneficiary, the designated beneficiary is entitled to receive the amount credited to the member's annuity savings account, less any disability benefits paid to the member, in one (1) or more lump sum payments over a period of up to five (5) years.

(2) If the member is survived by two (2) or more designated beneficiaries, the designated beneficiaries are entitled to receive equal shares of the amount credited to the member's annuity savings account unless the member has allocated the shares among the designated beneficiaries in a manner authorized under IC 5-10.3-8-15 or IC 5-10.4-4-10, less any disability benefits paid to the member. Each beneficiary may elect to receive the beneficiary's share in one (1) or more lump sum payments over a period of up to five (5) years.

(3) If the member is also survived by a spouse or dependent who is entitled to a survivor benefit under subsection (d) or (e) or section 7.6 of this chapter, the surviving spouse or dependent is not entitled to an annuity or a lump sum payment as part of the survivor benefit, unless the surviving spouse or dependent is also a designated beneficiary.

(h) If a member dies:

(1) without a surviving spouse or surviving dependent who qualifies for survivor benefits under subsection (d) or (e) or section 7.6 of this chapter; and

(2) without a surviving designated beneficiary who is entitled to receive the member's annuity savings account under subsection (g);

the amount credited to the member's annuity savings account, less any disability benefits paid to the member, shall be paid to the member's estate.

(i) Survivor benefits payable under this section or section 7.6 of this chapter shall be reduced by any disability benefits paid to the member.

(j) Additional annuity contributions, if any, shall not be included in determining survivor benefits under subsection (d) or (e) or section 7.6 of this chapter, but are payable in a lump sum payment to:

(1) the member's surviving designated beneficiary; or

(2) the member's estate, if there is no surviving designated beneficiary.

(k) Survivor benefits provided under this section or section 7.6 of this chapter are subject to IC 5-10.2-2-1.5.

(l) A benefit specified in this section shall be forfeited and credited in the manner determined by the board if no person entitled to the benefit claims it within three (3) years after the member's death. However, the board may honor a claim that is made more than three (3) years after the member's death if the board finds, in the board's discretion, that:

(1) the delay in making the claim was reasonable or other extenuating circumstances justify the award of the benefit to the claimant; and

(2) paying the claim would not cause a violation of the applicable Internal Revenue Service rules.

As added by P.L.55-1989, SEC.14. Amended by P.L.4-1990, SEC.5; P.L.43-1991, SEC.2; P.L.35-1996, SEC.1; P.L.22-1998, SEC.5; P.L.118-2000, SEC.2; P.L.190-2003, SEC.1; P.L.99-2007, SEC.15; P.L.113-2009, SEC.1; P.L.115-2009, SEC.2; P.L.1-2010, SEC.18; P.L.99-2010, SEC.3; P.L.40-2017, SEC.7; P.L.199-2019, SEC.1.

IC 5-10.2-3-7.6Survivor benefits of member with 30 years creditable service Sec. 7.6. (a) This section applies to the surviving spouse and the surviving dependent of a member who:

(1) dies after June 30, 1996, and before July 1, 2018;

(2) has at least thirty (30) years of creditable service; and

(3) dies in service in a position covered by the fund.

(b) If a member described in subsection (a) dies with a surviving spouse who was married to the member for at least two (2) years, the board may determine that the surviving spouse is entitled to a survivor benefit equal to the monthly benefit that would have been payable to the spouse under the joint and survivor option of IC 5-10.2-4-7 upon the member's death following retirement at:

(1) fifty-five (55) years of age; or

(2) the actual date of death;

whichever is later. However, benefits payable under this section are subject to section 7.5(g) and 7.5(i) of this chapter.

(c) If a member described in subsection (a) dies without a surviving spouse who was married to the member for at least two (2) years, but with a surviving dependent, the board may determine that the surviving dependent is entitled to a survivor benefit in a monthly amount equal to the actuarial equivalent of the monthly benefit that would have been payable to the spouse (assuming the spouse would have had the same birth date as the member) under the joint and survivor option of IC 5-10.2-4-7 upon the member's death following retirement at:

(1) fifty-five (55) years of age; or

(2) the actual date of death;

whichever is later. If there are two (2) or more surviving dependents, the actuarial equivalent of the benefit described in this subsection shall be calculated and, considering the dependents' attained ages, an equal dollar amount shall be determined as the monthly benefit to be paid to each dependent. Monthly benefits under this subsection are payable until the date the dependent becomes eighteen (18) years of age or dies, whichever is earlier. However, if a dependent has a permanent and total disability (using disability guidelines established by the Social Security Administration) on the date the dependent becomes eighteen (18) years of age, the monthly benefit is payable until the date the dependent no longer has a disability (using disability guidelines established by the Social Security Administration) or dies, whichever is earlier. Benefits payable under this section are subject to section 7.5(g) and 7.5(i) of this chapter.

As added by P.L.35-1996, SEC.2. Amended by P.L.99-2007, SEC.16; P.L.113-2009, SEC.2; P.L.199-2019, SEC.2.

IC 5-10.2-3-8Survivor benefits; death while not in service Sec. 8. (a) If a member dies:

(1) after March 31, 1990, and before July 1, 2018;

(2) while not in service in a position covered by the retirement fund; and

(3) while eligible to receive retirement or disability benefits under IC 5-10.2-4-6, but before applying for those benefits;

the member's surviving spouse or surviving dependent is entitled to survivor benefits in the same amount and under the same conditions as provided in section 7.5 of this chapter.

(b) If a member dies:

(1) after June 30, 2018; and

(2) while eligible to receive retirement or disability benefits under IC 5-10.2-4-6, but before applying for those benefits;

regardless of whether the member dies in service in a position covered by the retirement fund or out of service, the member's surviving spouse or surviving dependent is entitled to survivor benefits in the same amount and under the same conditions as provided in section 7.5 of this chapter.

(c) Except as otherwise provided in section 7.5 of this chapter, if a member dies while not in service and while not eligible for retirement or disability retirement, the sum payable upon suspension of membership shall be paid to the member's surviving designated beneficiary or to the member's estate if no beneficiary is designated.

(d) The sums specified in subsections (a), (b), and (c) shall be forfeited and credited to the member's retirement fund if no beneficiary or other person entitled to the money under subsection (a), (b), or (c) claims it within three (3) years after the member's death. However, the board may honor a claim made more than three (3) years after the member's death if the board finds, in the board's discretion, that:

(1) the member died after August 31, 1992; and

(2) either:

(A) the delay in making the claim was reasonable; or

(B) other extenuating circumstances justify the award of the benefit to the claimant.

(e) Survivor benefits payable under this section shall be reduced by any disability benefits paid to the member under the same conditions as provided in section 7.5 of this chapter.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985, SEC.11; P.L.55-1989, SEC.15; P.L.4-1990, SEC.6; P.L.56-1993, SEC.1; P.L.22-1993, SEC.2; P.L.119-2006, SEC.1; P.L.199-2019, SEC.3.

IC 5-10.2-3-9Survivor benefits; death after July 1, 1991, while eligible for retirement benefits Sec. 9. (a) This section applies if the following conditions are met. A member dies:

(1) after July 1, 1991; and

(2) while receiving or while eligible to receive retirement benefits under IC 5-10.2-4-1 from the fund.

(b) As used in this section, "minimum amount" means the entire amount credited to the member's annuity savings account at the time of:

(1) retirement; or

(2) death while entitled to retirement benefits;

minus all benefits paid to the member and the member's survivors.

(c) If the member dies without a survivor entitled to benefits and the member has not received payments equal to or more than the minimum amount, the difference shall be paid in a lump sum to the member's designated beneficiary or beneficiaries in equal shares. If the member dies without a surviving designated beneficiary, the difference shall be paid in a lump sum to the member's estate.

(d) If the member dies with a survivor entitled to benefits, no payment under this section shall be calculated until after all survivors die. If, at the time of death of the last survivor, the member and all survivors have not received payments equal to or more than the minimum amount, the difference shall be paid in a lump sum to the survivor's estate.

(e) The minimum benefit provided in this section shall not apply to an election under IC 5-10.2-4-7(g).

As added by P.L.43-1991, SEC.3. Amended by P.L.51-2020, SEC.3.

IC 5-10.2-3-10Rollover distributions Sec. 10. (a) To the extent permitted by the Internal Revenue Code and the applicable regulations, the fund may accept, on behalf of any member, a rollover distribution from any of the following:

(1) A qualified plan described in Section 401(a) or Section 403(a) of the Internal Revenue Code.

(2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.

(3) An eligible plan maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state under Section 457(b) of the Internal Revenue Code.

(4) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code.

(b) Any amounts rolled over under subsection (a) must be accounted for in a "rollover account" that is separate from the member's annuity savings account.

(c) A member may direct the investment of the member's rollover account into the stable value fund or any alternative investment option that the board may make available to the member's rollover account under IC 5-10.2-2-3.

(d) A member may withdraw the member's rollover account from the fund in a lump sum at any time before retirement. At retirement, the member may withdraw the member's rollover account in accordance with the retirement options that are available for the member's annuity savings account, including the deferral of a withdrawal.

As added by P.L.61-2002, SEC.5. Amended by P.L.193-2016, SEC.11; P.L.179-2018, SEC.8.

IC 5-10.2-4Chapter 4. Retirement and Disability Benefits

5-10.2-4-0.1Application of certain amendments to chapter 5-10.2-4-0.3Consideration of certain claims for benefits 5-10.2-4-1Eligibility for normal and early retirement 5-10.2-4-1.2Repealed 5-10.2-4-1.3Application procedure 5-10.2-4-1.4Direct deposit benefit notice 5-10.2-4-1.5Estimated benefit payments 5-10.2-4-1.7Elected county official eligibility for normal retirement 5-10.2-4-1.9Eligibility of certain state officers for normal retirement 5-10.2-4-2Annuity or distribution benefits; choice of plans; payment of final contributions 5-10.2-4-3Average of the annual compensation 5-10.2-4-3.1Compensation from two or more employers; computation of average 5-10.2-4-3.2Compensation received in contemplation of retirement 5-10.2-4-4Retirement benefit computation 5-10.2-4-5Early retirement percent reduction 5-10.2-4-6Disability retirement 5-10.2-4-7Retirement benefit payment options; changes to beneficiary designation or form of benefit; annual payment of monthly benefit 5-10.2-4-7.2Changes to beneficiary designation 5-10.2-4-7.5School corporations participating in Section 401(a) plans; participation in plan under this chapter 5-10.2-4-8Reemployment after retirement; when retirement benefits application void 5-10.2-4-8.2Election, appointment to elected position, or service in other position covered by this article 5-10.2-4-8.4Retirement while serving in elected position 5-10.2-4-9Death during reemployment 5-10.2-4-10Benefits after reemployment 5-10.2-4-10.2Repealed

IC 5-10.2-4-0.1Application of certain amendments to chapter Sec. 0.1. The following amendments to this chapter apply as follows:

(1) The amendments made by P.L.45-1988 to STEP TWO of section 4(b) of this chapter (formerly section 4(a) of this chapter):

(A) apply only to retirement benefits paid after March 3, 1988; and

(B) do not require retroactive increases in any benefits paid before March 3, 1988.

(2) The amendments made to section 3 of this chapter by P.L.95-2004 apply only to members of the Indiana state teachers' retirement fund who retire after May 31, 2004.

(3) The amendments made to section 8 of this chapter by P.L.62-2005 apply to:

(A) fiscal years that begin after June 30, 2005, for teachers' retirement fund members; and

(B) calendar years that begin after December 31, 2005, for public employees' retirement fund members.

(4) The amendments made to section 6 of this chapter by P.L.124-2008 apply to disability retirement benefits payable by the Indiana state teachers' retirement fund and the public employees' retirement fund after December 31, 2007.

As added by P.L.220-2011, SEC.73.

IC 5-10.2-4-0.3Consideration of certain claims for benefits Sec. 0.3. The board may consider a claim for benefits under section 6(a) of this chapter, as amended by P.L.22-1998, even if the disability of the member making the claim arose from events occurring after March 31, 1994, and before April 2, 1998. A benefit claim approved by the board under this section is payable after the later of April 1, 1998, or the date of the member's claim.

As added by P.L.220-2011, SEC.74.

IC 5-10.2-4-1Eligibility for normal and early retirement Sec. 1. (a) This subsection applies to:

(1) members of the public employees' retirement fund who retire before July 1, 1995; and

(2) members of the Indiana state teachers' retirement fund who retire before May 2, 1989.

A member who has reached age sixty-five (65) and has at least ten (10) years of creditable service is eligible for normal retirement.

(b) This subsection applies to members of the Indiana state teachers' retirement fund who retire after May 1, 1989, and to members of the public employees' retirement fund who retire after June 30, 1995, except as provided in section 1.7 of this chapter. A member is eligible for normal retirement if:

(1) the member is at least sixty-five (65) years of age and has at least ten (10) years of creditable service;

(2) the member is at least sixty (60) years of age and has at least fifteen (15) years of creditable service; or

(3) the member's age in years plus the member's years of service is at least eighty-five (85) and the member is at least fifty-five (55) years of age.

(c) A member who has reached age fifty (50) and has at least fifteen (15) years of creditable service is eligible for early retirement with a reduced pension.

(d) A member who is eligible for normal or early retirement is entitled to choose a retirement date on which the member's benefit begins if the following conditions are met:

(1) The application for retirement benefits and the choice of the date is filed on a form provided by the board.

(2) The date must be after the cessation of the member's service and be the first day of a month.

(3) The retirement date is not more than six (6) months before the date the application is received by the board. However, if the board determines that a member is incompetent to file for benefits and choose a retirement date, the retirement date may be any date that is the first of the month after the time the member became incompetent.

As added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1980, P.L.28, SEC.5; P.L.48-1985, SEC.1; P.L.342-1989(ss), SEC.2; P.L.4-1990, SEC.7; P.L.10-1995, SEC.4; P.L.73-2002, SEC.2.

IC 5-10.2-4-1.2RepealedAs added by P.L.47-2003, SEC.1. Amended by P.L.115-2009, SEC.3. Repealed by P.L.127-2015, SEC.1.

IC 5-10.2-4-1.3Application procedure Sec. 1.3. (a) A member who files an application for retirement benefits must provide the following information on the application form:

(1) The retirement date chosen by the member.

(2) If the member has not elected to withdraw the entire amount in the member's annuity savings account under IC 5-10.2-3-6.5, the member's choice of any actuarially equivalent combination of:

(A) an annuity purchased from all or part of the amount credited to the member in the annuity savings account;

(B) a total or partial distribution from the annuity savings account under section 2(b) of this chapter; and

(3) The name of the beneficiary or beneficiaries designated by the member with respect to the pension portion of the member's retirement benefit.

(4) The name of the beneficiary or beneficiaries designated by the member with respect to the annuity portion of the member's retirement benefit, unless the member chooses total distribution under section 2 of this chapter.

(b) A member's designation of beneficiaries in the application for retirement benefits supersedes any previous designation of beneficiaries by the member.

(c) A member must indicate the name, address, date of birth, and Social Security number of each designated beneficiary and provide proof of birth of each designated beneficiary.

(d) The board shall adopt a form for the application for retirement benefits that meets the requirements of this section.

As added by P.L.195-1999, SEC.13. Amended by P.L.115-2008, SEC.9; P.L.35-2012, SEC.41; P.L.40-2017, SEC.8.

IC 5-10.2-4-1.4Direct deposit benefit notice Sec. 1.4. (a) This section applies to a member or a beneficiary of the fund who receives a monthly benefit by direct deposit.

(b) The fund shall furnish to the member or beneficiary:

(1) before each change in the amount of the member's or beneficiary's benefit; or

(2) once every twelve (12) months, if the member's or beneficiary's benefit amount does not change;

a written notice showing the member's or beneficiary's benefit amount, including any cost of living increase or other adjustment to the benefit amount, and a summary of the member's or beneficiary's benefit payment history since the member's or beneficiary's last written notice.

As added by P.L.47-2003, SEC.2. Amended by P.L.115-2009, SEC.4.

IC 5-10.2-4-1.5Estimated benefit payments Sec. 1.5. (a) A fund may calculate and pay an estimated retirement benefit of the pension portion to a member if:

(1) the member has applied for a retirement benefit and has chosen a retirement date on which the retirement benefit is to begin;

(2) the member's membership records are incomplete or have not been certified; and

(3) the member's membership records that have been submitted to the fund establish that the member is entitled to a retirement benefit.

(b) After June 30, 2009, if a fund calculates and pays an estimated benefit under this section, the estimated benefit must be at least eighty-five percent (85%) of the pension portion of the benefit determined under the fund's records on service and compensation information.

(c) If an estimated benefit is paid to a member under this section, the fund shall, after all membership records have been submitted to the fund and certified, determine the actual retirement benefit to which the member is entitled. After determining the actual retirement benefit to which the member is entitled, the fund shall temporarily adjust the actual retirement benefit that is paid to the member to reconcile any underpayment or overpayment of benefits to the member that resulted from the payment of estimated benefits. The fund may make the temporary adjustment to the member's actual retirement benefit over a reasonable time, as determined by the board.

As added by P.L.195-1999, SEC.14. Amended by P.L.115-2009, SEC.5.

IC 5-10.2-4-1.7Elected county official eligibility for normal retirement Sec. 1.7. (a) This section applies only to members of the public employees' retirement fund who retire after June 30, 2002.

(b) A member is eligible for normal retirement after becoming sixty-five (65) years of age if the member:

(1) has:

(A) served as an elected county official in an office described in Article 6, Section 2 of the Constitution of the State of Indiana for at least eight (8) years; or

(B) been elected at least two (2) times and would have served at least eight (8) years as an elected county official in an office described in Article 6, Section 2 of the Constitution of the State of Indiana had the member's term of office not been shortened under a statute enacted under Article 6, Section 2(b) of the Constitution of the State of Indiana; and

(2) is prohibited by Article 6, Section 2 of the Constitution of the State of Indiana from serving in that office for more than eight (8) years in any period of twelve (12) years.

(1) has served as an elected county official; and

(2) does not meet the requirements of subsection (b);

is eligible for normal retirement if the member has attained vested status (as defined in IC 5-10.2-1-8(b)(3)) and meets the requirements of section 1 of this chapter.

As added by P.L.73-2002, SEC.3. Amended by P.L.88-2005, SEC.2.

IC 5-10.2-4-1.9Eligibility of certain state officers for normal retirement Sec. 1.9. (a) For purposes of this section, "state officer" means the secretary of state, state comptroller (referred to as "auditor of state" in the Constitution of the State of Indiana), and treasurer of state.

(b) This section applies only to a member of the public employees' retirement fund:

(1) who has served as a state officer; and

(2) whose term of office as a state officer commenced after the election held on November 5, 2002.

(1) has:

(A) served as a state officer for at least eight (8) years; or

(B) been elected at least two (2) times and would have served at least eight (8) years as a state officer had the member's term of office not been shortened under a statute enacted to establish uniform dates for beginning the terms of state officers; and

(2) is prohibited by Article 6, Section 1 of the Constitution of the State of Indiana from serving in that office for more than eight (8) years in any period of twelve (12) years.

(d) A member who:

(1) has served as a state officer; and

(2) does not meet the requirements of subsection (c);

is eligible for normal retirement if the member has attained vested status (as defined in IC 5-10.2-1-8(a)) and meets the requirements of section 1 of this chapter.

As added by P.L.115-2008, SEC.10. Amended by P.L.40-2025, SEC.8.

IC 5-10.2-4-2Annuity or distribution benefits; choice of plans; payment of final contributions Sec. 2. (a) Unless a member elects otherwise under this section or has elected to withdraw the member's annuity savings account under IC 5-10.2-3-6.5, the retirement benefit for each member consists of the sum of a pension provided by employer contributions plus an annuity provided by all or part of the amount credited to the member in the annuity savings account. If a member has elected to withdraw the member's annuity savings account under IC 5-10.2-3-6.5, the member's retirement benefit is equal to the pension provided by employer contributions, unless the member has transferred the creditable service earned under the public employees' retirement fund to another governmental retirement plan under IC 5-10.2-3-1(i). Regardless of a member's election under this section, contributions that are posted to a member's annuity savings account after the final date on which the member's retirement benefit is processed may be distributed to the member as determined by the rules of the board. If the distribution exceeds one thousand dollars ($1,000), the board shall obtain the member's consent as to the form of the distribution.

(b) Subject to subsections (d) and (e), if a member has not elected to withdraw the entire amount in the member's annuity savings account under IC 5-10.2-3-6.5, a member may choose at retirement or upon a disability retirement or at a later time to receive a distribution of all or part of:

(1) the amount credited to the member in the annuity savings account; or

(2) the amount equal to the member's federal income tax basis in the member's annuity savings account balance as it existed on December 31, 1986.

(c) Subject to subsections (d) and (e), if a member has not elected to withdraw the entire amount in the member's annuity savings account under IC 5-10.2-3-6.5, a member may choose upon retirement or upon disability retirement to begin receiving a pension provided by employer contributions and to defer receiving all or part of the amount in the member's annuity savings account. If a member chooses this option:

(1) the member's annuity savings account will continue to be invested according to the member's direction under IC 5-10.2-2-3; and

(2) the member may later choose, as of the first day of a month, or an alternate date established by the rules of the board, to receive one (1) or more distributions of all or part of:

(A) the entire amount then credited to the member in the annuity savings account; or

(B) an amount equal to the member's federal income tax basis in the member's annuity savings account balance as it existed on December 31, 1986.

If the member chooses to receive the distribution under subdivision (2), the member is entitled to an annuity purchasable by the amount remaining in the member's annuity savings account after the payments under subdivision (2). If the member does not choose to receive a distribution under this subsection, the member is entitled to an annuity purchasable by all or part of the amount in the member's annuity savings account, and the form of the annuity shall be as described in subsection (e) unless the member elects an option described in section 7(b)(1), 7(b)(2), or 7(b)(4) of this chapter. The amount to be paid under this section shall be determined in the manner described in IC 5-10.2-2-3. However, the board may by rule provide for an alternate valuation date.

(d) A member may make any combination of choices under subsections (a) through (c) over time with respect to the remaining amount credited to the member in the annuity savings account.

(e) Retirement benefits must be distributed in a manner that complies with Section 401(a)(9) of the Internal Revenue Code, as specified in IC 5-10.2-2-1.5.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985, SEC.12; P.L.55-1989, SEC.16; P.L.59-1989, SEC.1; P.L.195-1999, SEC.15; P.L.62-2005, SEC.2; P.L.115-2008, SEC.11; P.L.115-2009, SEC.6; P.L.35-2012, SEC.42; P.L.22-2014, SEC.1; P.L.40-2017, SEC.9.

IC 5-10.2-4-3Average of the annual compensation Sec. 3. (a) This subsection applies to a member who retires before January 1, 2028. Except as provided in subsection (h), in computing the retirement benefit for a nonteacher member, "average of the annual compensation" means the average annual compensation calculated using the twenty (20) calendar quarters of service in a position covered by the retirement fund before retirement in which the member's annual compensation was the highest. However, in order for a quarter to be included in the twenty (20) calendar quarters, the nonteacher member must have performed service throughout the calendar quarter. All twenty (20) calendar quarters need not be continuous but they must be in groups of four (4) consecutive calendar quarters. The same calendar quarter may not be included in two (2) different groups.

(b) This subsection applies to a member who retires after December 31, 2027. This subsection does not apply to a teacher member described in subsection (d) or (e). Except as provided in subsection (h), in computing the retirement benefit for a nonteacher member, "average of the annual compensation" means average annual compensation calculated using the greater of the following:

(1) The five (5) calendar years of service before retirement in which the member's annual compensation for the calendar year was the highest.

(2) The five (5) fiscal years of service before retirement in which the member's annual compensation for the fiscal year was the highest.

(1) A year does not qualify for inclusion in the calculation unless:

(A) the year is equal to twelve (12) months; and

(B) the member received creditable service for at least six (6) months throughout the year.

(2) A calendar year begins on January 1.

(3) A fiscal year begins on July 1.

(4) The five (5) years need not be continuous.

(d) This subsection does not apply to a teacher member described in subsection (e). In computing the retirement benefit for a teacher member, "average of the annual compensation" means the average annual compensation for the five (5) years of service before retirement in which the member's annual compensation was highest. In order for a year to be included in the five (5) years, the teacher member must have received for the year credit under IC 5-10.4-4-2 for at least one-half (1/2) year of service. The five (5) years need not be continuous.

(e) This subsection applies to a member of the Indiana state teachers' retirement fund who serves in an elected position for which the member takes an unpaid leave of absence. In computing the retirement benefit for a teacher member described in this subsection for years of service to which IC 5-10.4-5-7 does not apply, "average of the annual compensation" means the annual compensation for the one (1) year of service before retirement in which the member's annual compensation was highest. In order for a year to be used, the teacher member must have received for the year credit under IC 5-10.4-4-2 for at least one-half (1/2) year of service.

(f) Subject to IC 5-10.2-2-1.5, "annual compensation" means:

(1) the basic salary earned by and paid to the member plus the amount that would have been part of that salary but for:

(A) the state's, a school corporation's, a participating political subdivision's, or a state educational institution's paying the member's contribution to the fund for the member; or

(B) the member's salary reduction agreement established under Section 125, 403(b), or 457 of the Internal Revenue Code; and

(2) in the case of a member described in subsection (e) and for years of service to which IC 5-10.4-5-7 does not apply, the basic salary that was not paid during the year but would have been paid to the member during the year under the member's employment contracts, if the member had not taken any unpaid leave of absence to serve in an elected position.

The portion of a back pay award or a similar award that the board determines is compensation under an agreement or under a judicial or an administrative proceeding shall be allocated by the board among the years the member earned or should have earned the compensation. Only that portion of the award allocated to the year the award is made is considered to have been earned during the year the award was made. Interest on an award is not considered annual compensation for any year.

(g) This subsection applies to a member who retires before January 1, 2028. Compensation of not more than two thousand dollars ($2,000) received from the employer in contemplation of the member's retirement, including severance pay, termination pay, retirement bonus, or commutation of unused sick leave or personal leave, may be included in the total annual compensation from which the average of the annual compensation is determined, if it is received:

(1) before the member ceases service; or

(2) within twelve (12) months after the member ceases service.

(h) This subsection applies to a member of the general assembly:

(1) who is a participant in the legislators' retirement system established under IC 2-3.5;

(2) who is also a member of the public employees' retirement fund or the Indiana state teachers' retirement fund; and

(3) whose years of service in the general assembly may not be considered in determining the average of the annual compensation under this section, as provided in IC 2-3.5-1-2(b)(2) or IC 2-3.5-3-1(c).

The board shall use the board's actuarial salary increase assumption to project the salary for any previous year needed to determine the average of the annual compensation.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.28-1984, SEC.2; P.L.35-1985, SEC.13; P.L.55-1989, SEC.17; P.L.6-1989, SEC.2; P.L.4-1990, SEC.8; P.L.10-1993, SEC.4; P.L.95-2004, SEC.2; P.L.2-2006, SEC.24; P.L.2-2007, SEC.93; P.L.104-2026, SEC.9.

IC 5-10.2-4-3.1Compensation from two or more employers; computation of average Sec. 3.1. For a member who receives annual compensation from two (2) or more employers, the average of the annual compensation shall be computed using the sum of the two (2) or more annual compensations if:

(1) each of the employers and the member made all of the contributions required by IC 5-10.2; and

(2) the member occupied at least one (1) position that normally required performance of service of more than six hundred (600) hours during the year.

As added by P.L.381-1987(ss), SEC.1.

IC 5-10.2-4-3.2Compensation received in contemplation of retirement Sec. 3.2. (a) This section applies to the calculation of the average of the annual compensation under section 3 of this chapter for members who retire after December 31, 2027.

(b) For purposes of this section, "compensation received in contemplation of retirement" means compensation that:

(1) a member received:

(A) during the member's last year of service; and

(B) after the member's last year of service; and

(2) is greater than one hundred twenty percent (120%) of the compensation the member received during the year immediately before the member's last year of service.

(1) retires after December 31, 2027; and

(2) served in a covered position during the entire year before the member's last year of service;

compensation received in contemplation of retirement is excluded from the average of the annual compensation.

(d) For purposes of this section, a year must begin on January 1 or July 1 on the same basis as the average of the annual compensation.

As added by P.L.104-2026, SEC.10.

IC 5-10.2-4-4Retirement benefit computation Sec. 4. (a) The computation of benefits under this section is subject to IC 5-10.2-2-1.5.

(b) For retirement benefits payable on and after July 1, 1975, for a member retired on and after January 1, 1956, the pension (p) is computed as follows:

STEP ONE: Multiply one and one-tenths percent (1.1%) times the average of the annual compensation (aac) and obtain a product.

STEP TWO: To obtain the pension, multiply the STEP ONE product by the total creditable service (scr) completed by the member on the member's retirement date.

Expressed mathematically:

p = (.011) times (aac) times (scr)

(c) If a member purchases an annuity under this title on any date, the amount purchasable on that date is the part of the amount credited to the member in the annuity savings account that the member designates for the purchase of the annuity. The amount purchasable is based on actuarial tables adopted by the board under IC 5-10.2-2-10 at an interest rate determined by the board under IC 5-10.5-4-2.6.

As added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1980, P.L.28, SEC.6; P.L.35-1985, SEC.14; P.L.45-1988, SEC.1; P.L.55-1989, SEC.18; P.L.195-1999, SEC.16; P.L.115-2008, SEC.12; P.L.177-2014, SEC.3; P.L.40-2017, SEC.10.

IC 5-10.2-4-5Early retirement percent reduction Sec. 5. The retirement benefit (rb) payable on and after July 1, 1975, for a member who retired on and after January 1, 1956, before age sixty-five (65) is the sum of the pension (P), as specified in section 4 of this chapter and computed on the basis of the total creditable service and the average of the annual compensation at retirement, multiplied by a percent (p), plus the annuity (A), if any, purchasable by all or part of the amount credited to the member in the annuity savings account. This sum is obtained by the following STEPS:

STEP ONE: From seven hundred eighty (780) months, which equals sixty-five (65) years, subtract the age of the member at the member's retirement date expressed in whole months (retirement age in months) and obtain a remainder (X).

STEP TWO:

(A) If the remainder (X) is less than or equal to sixty (60), then multiply the remainder (X) times one-tenth percent (0.1%) and obtain a product (Y).

(B) If the remainder (X) is greater than sixty (60), then multiply five-twelfths percent (5/12%) times the difference obtained by subtracting sixty (60) from the remainder (X) and obtain a product. Add to this six percent (6%) and obtain a sum (Y).

STEP THREE: From one hundred percent (100%) subtract the appropriate (Y) and obtain the percent (p).

STEP FOUR: The early retirement benefit equals (p) times (P) plus the annuity (A).

Expressed mathematically:

If "<" means "less than or equal to" and if ">" means "greater than"; then:

(I) 780 - (retire age in months) = X;

(II) if X < 60, (X) times (0.1%) = Y; or

if X > 60, (5/12%) times (X-60) + 6% = Y

(III) 100% - Y = p

(IV) rb = pP + A

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985, SEC.15; P.L.40-2017, SEC.11.

IC 5-10.2-4-6Disability retirement Sec. 6. (a) A member who becomes disabled while receiving a salary or employer provided income protection benefits or who is on leave under the Family and Medical Leave Act may retire for the duration of the member's disability if:

(1) the member has at least five (5) years of creditable service before the:

(A) termination of a salary or employer provided income protection benefits or Family and Medical Leave Act leave; or

(B) exhaustion of all worker's compensation benefits;

(2) the member has qualified for Social Security disability benefits and has furnished proof of the Social Security qualification to the board; and

(3) at least once each year until the member reaches age sixty-five (65) a representative of the board verifies the continued disability.

For the purposes of this section, a member of the public employees' retirement fund who has qualified for disability benefits under the federal civil service system is considered to have met the requirement of subdivision (2) if the member furnishes proof of the qualification to the board.

(b) Benefits for disability shall be paid beginning with the month following the onset of disability as determined by the Social Security Administration. The benefit is the retirement benefit specified in section 4 of this chapter with the pension computed using only the years of creditable service worked to the date of disability and without reduction for early retirement. The monthly disability retirement benefit payable before July 1, 2008, may not be less than one hundred dollars ($100). The monthly disability retirement benefit payable after June 30, 2008, may not be less than one hundred eighty dollars ($180).

(c) The member may have the member's benefit paid under any of the retirement benefit options specified in section 7 of this chapter, except that the member may not choose to have the member's disability retirement benefit paid under the method specified under section 7(b)(3) of this chapter.

(d) This section applies to:

(1) a member of the public employees' retirement fund who became disabled after June 30, 1973; and

(2) a member of the Indiana state teachers' retirement fund who becomes disabled after June 30, 1984, and who chooses disability retirement under this section.

(e) To the extent required by the Americans with Disabilities Act (42 U.S.C. 12101 et seq.) and any amendments and regulations to the Act, the transcripts, records, and other material compiled to determine the existence of a disability shall be:

(1) kept in separate medical files for each member; and

(2) treated as confidential medical records.

(f) A member may continue to receive disability benefits from the public employees' retirement fund or the Indiana state teachers' retirement fund so long as the member is entitled to receive Social Security benefits, including periods of trial employment or rehabilitation under the Social Security guidelines. However, during a period of trial employment or rehabilitation, service credit may not be granted under the public employees' retirement fund or the Indiana state teachers' retirement fund.

(g) If the fund is authorized to make, in the form of a single check or a series of checks, a one (1) time distribution that does not increase the pension portion of the monthly benefit, the distribution must include members eligible for disability benefits. A member eligible for disability benefits is required to meet all additional requirements necessary to receive the check or series of checks issued by the fund under this subsection.

As added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1978, P.L.24, SEC.2; P.L.29-1984, SEC.1; P.L.4-1992, SEC.9; P.L.22-1998, SEC.6; P.L.124-2008, SEC.2; P.L.131-2008, SEC.1; P.L.35-2012, SEC.43.

IC 5-10.2-4-7Retirement benefit payment options; changes to beneficiary designation or form of benefit; annual payment of monthly benefit Sec. 7. (a) Benefits provided under this section are subject to IC 5-10.2-2-1.5.

(b) A member who retires is entitled to receive monthly retirement benefits, which are guaranteed for five (5) years or until the member's death, whichever is later. A member may select in writing any of the following nonconflicting options for the payment of the member's retirement benefits instead of the five (5) year guaranteed retirement benefit payments. The amount of the optional payments shall be determined under rules of the board and shall be the actuarial equivalent of the benefit payable under sections 4, 5, and 6 of this chapter. A member who has elected to withdraw the entire amount in the member's annuity savings account under IC 5-10.2-3-6.5 may not select the cash refund annuity option.

(1) Joint and Survivor Option.

(A) The member receives a decreased retirement benefit during the member's lifetime, and there is a benefit payable after the member's death to a designated beneficiary during the lifetime of the beneficiary, which benefit equals, at the option of the member, either the full decreased retirement benefit or two-thirds (2/3) or one-half (1/2) of that benefit.

(B) If the member dies before retirement, the designated beneficiary may receive only the amount credited to the member in the annuity savings account unless the designated beneficiary is entitled to survivor benefits under IC 5-10.2-3.

(C) If the designated beneficiary dies before the member retires, the selection is automatically canceled and the member may make a new beneficiary election and may elect a different form of benefit under this subsection.

(2) Benefit with No Guarantee. The member receives an increased lifetime retirement benefit without the five (5) year guarantee specified in this subsection.

(3) Integration with Social Security. If the member retires before the age of eligibility for Social Security benefits, in order to provide a level benefit during the member's retirement the member receives an increased retirement benefit until the age of Social Security eligibility and decreased retirement benefits after that age.

(4) Cash Refund Annuity. The member receives a lifetime annuity purchasable by all or part of the amount credited to the member in the annuity savings account, and the member's designated beneficiary receives a refund payment equal to:

(A) the total amount used in computing the annuity; minus

(B) the total annuity payments paid and due to the member before the member's death.

(c) This subsection does not apply to a member of the Indiana state teachers' retirement fund after June 30, 2007, or to a member of the public employees' retirement fund after June 30, 2008. If:

(1) the designated beneficiary dies while the member is receiving benefits; or

(2) the member is receiving benefits, the member marries, either for the first time or following the death of the member's spouse, after the member's first benefit payment is made, and the member's designated beneficiary is not the member's current spouse or the member has not designated a beneficiary;

the member may elect to change the member's designated beneficiary or form of benefit under subsection (b) and to receive an actuarially adjusted and recalculated benefit for the remainder of the member's life or for the remainder of the member's life and the life of the newly designated beneficiary. The member may not elect to change to a five (5) year guaranteed form of benefit. If the member's new election is the joint and survivor option, the member shall indicate whether the designated beneficiary's benefit shall equal, at the option of the member, either the member's full recalculated retirement benefit or two-thirds (2/3) or one-half (1/2) of this benefit. The cost of recalculating the benefit shall be borne by the member and shall be included in the actuarial adjustment.

(d) Except as provided in subsection (c) or section 7.2 of this chapter, a member who files for regular or disability retirement may not change:

(1) the member's retirement option under subsection (b);

(2) the selection of a lump sum payment under section 2 of this chapter; or

(3) the beneficiary designated on the member's application for benefits if the member selects the joint and survivor option under subsection (b)(1);

after the first day of the month in which benefit payments are scheduled to begin. For purposes of this subsection, it is immaterial whether a benefit check has been sent, received, or negotiated.

(e) A member may direct that the member's retirement benefits be paid to a revocable trust that permits the member unrestricted access to the amounts held in the revocable trust. The member's direction is not an assignment or transfer of benefits under IC 5-10.3-8-10 or IC 5-10.4-5-14.5.

(f) The board may adopt a policy to permit annual payment of a member's retirement benefit whenever the amount of the monthly retirement benefit to be paid to the member is not more than five dollars ($5).

(g) The board may provide an alternative option for the payment of the member's retirement benefits that does not include the minimum benefit option under IC 5-10.2-3-9.

As added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1980, P.L.28, SEC.7; P.L.35-1985, SEC.16; P.L.59-1989, SEC.2; P.L.55-1989, SEC.19; P.L.59-1989, SEC.3; P.L.4-1990, SEC.9; P.L.195-1999, SEC.17; P.L.246-2001, SEC.5; P.L.190-2003, SEC.2; P.L.2-2006, SEC.25; P.L.149-2007, SEC.1; P.L.93-2008, SEC.1; P.L.115-2008, SEC.13; P.L.115-2009, SEC.7; P.L.35-2012, SEC.44; P.L.15-2013, SEC.1; P.L.40-2017, SEC.12; P.L.51-2020, SEC.4.

IC 5-10.2-4-7.2Changes to beneficiary designation Sec. 7.2. (a) This section applies to the following:

(1) A member of the Indiana state teachers' retirement fund after June 30, 2007.

(2) A member of the public employees' retirement fund after June 30, 2008.

(b) Except as otherwise provided in this section, if a member is receiving a benefit from the fund, the member may make the election described in subsection (c) any number of times.

(1) change the member's designated beneficiary or form of benefit under section 7(b) of this chapter; and

(2) receive an actuarially adjusted and recalculated benefit for the remainder of:

(A) the member's life; or

(B) the member's life and the life of the newly designated beneficiary.

(d) A member making the election under subsection (c) may not elect to change to a five (5) year guaranteed form of benefit under section 7(b) of this chapter.

(e) If a member elects a benefit under subsection (c)(2)(B), the member must indicate whether the newly designated beneficiary's benefit will equal:

(1) the member's full recalculated benefit;

(2) two-thirds (2/3) of the member's recalculated benefit; or

(3) one-half (1/2) of the member's recalculated benefit.

(f) The member bears the cost of recalculating a benefit under subsection (c)(2), and the member shall pay the cost in the manner prescribed by the board by rule. However, the board shall waive the cost associated with the first time after June 30, 2016, the member changes the member's designated beneficiary or form of benefit under this section.

(g) A member may not make the election under subsection (c) if a final order or property settlement in an action for dissolution of marriage:

(1) prohibits a change in the member's designated beneficiary; or

(2) provides a right to a survivor benefit to a person who would be removed as the designated beneficiary.

(h) Benefits may be recalculated under this section only to the extent permitted by the Internal Revenue Code and applicable regulations.

(i) Before implementing this section, the board may obtain any approvals that the board considers necessary or appropriate from the Internal Revenue Service.

(j) Subject to subsection (g), if a member is receiving a benefit from the fund and the member's spouse is the member's designated beneficiary, the member may not change the member's designated beneficiary or elect to receive an actuarially adjusted and recalculated benefit under subsection (c) unless:

(1) the member's designated beneficiary dies;

(2) the member and the member's designated beneficiary have been parties in an action for dissolution of marriage in which a final order has been issued after the member's first benefit payment is made; or

(3) the member's designated beneficiary, or the guardian of the member's designated beneficiary, authorizes the change in writing in the manner prescribed by the board.

With respect to a final order for dissolution of marriage described in subdivision (2), it is immaterial whether the final order was issued before, on, or after the date in subsection (a)(1) or (a)(2).

As added by P.L.149-2007, SEC.2. Amended by P.L.9-2008, SEC.1; P.L.93-2008, SEC.2; P.L.241-2015, SEC.9; P.L.193-2016, SEC.12.

IC 5-10.2-4-7.5School corporations participating in Section 401(a) plans; participation in plan under this chapter Sec. 7.5. A member may participate in a plan described in IC 5-10-1.1-1(2) in addition to the plans set forth in this chapter.

As added by P.L.42-1988, SEC.3.

IC 5-10.2-4-8Reemployment after retirement; when retirement benefits application void Sec. 8. (a) Subject to subsection (g), if a member who is receiving retirement benefits becomes reemployed in a position covered by this article more than thirty (30) days after the member's retirement, the member's retirement benefit payments continue.

(b) This subsection applies only to a retired member of the public employees' retirement fund who, before July 1, 2013, begins a period of reemployment in a covered position more than thirty (30) days after the member's retirement. The member shall begin making contributions as required in IC 5-10.2-3-2, and the member's employer shall make contributions throughout the member's period of reemployment.

(c) If a member who is receiving retirement benefits is reemployed in a position covered by this article not more than thirty (30) days after the member's retirement, the member's retirement benefits shall stop, the member shall begin making contributions as required by IC 5-10.2-3-2, and employer contributions shall be made throughout the period of reemployment.

(d) This subsection applies only to a retired member of the public employees' retirement fund who, before July 1, 2013, begins a period of reemployment in a covered position more than thirty (30) days after the member's retirement. If a retired member is reemployed in a position covered by this article, section 10 of this chapter applies to the member upon the member's retirement from reemployment.

(e) Subject to subsection (g), and except for a member described in IC 5-10.2-3-3(a)(2), the following apply to a retired member who begins a period of reemployment in a covered position more than thirty (30) days after the member's retirement:

(1) The member's retirement benefit payments continue during the member's period of reemployment without regard to the amount of the member's earnings from the covered position.

(2) The member may not make contributions under IC 5-10.2-3-2, IC 5-10.3-7-9, or IC 5-10.4-4-11 during the member's period of reemployment.

(3) The member's employer may not make contributions under IC 5-10.2-2-11, IC 5-10.3-7-9, or IC 5-10.4-4-11 for or on behalf of the member during the member's period of reemployment.

(4) The member does not earn creditable service under IC 5-10.2-3-1 for the member's period of reemployment.

(5) The member is not entitled to an additional benefit under sections 9 and 10 of this chapter for the member's period of reemployment.

(f) The thirty (30) day period provided for in this section may be implemented unless the board receives a determination from the Internal Revenue Service prohibiting the implementation.

(g) After July 31, 2009, if, on or before the date the member files an application for retirement benefits under this article, a member has a formal or informal agreement with an employer covered by this article to become reemployed in a position covered by this article after the member's retirement, regardless of the time frame between the member's retirement and the member's reemployment, the member's application for retirement benefits is void, and the following apply to the member's continued employment:

(1) If a member has received a retirement benefit:

(A) the member's retirement benefit shall stop; and

(B) the member shall repay the amount of the retirement benefit received.

(2) The member shall make contributions as required by IC 5-10.2-3-2 throughout the period of the member's continued employment.

(3) Employer contributions shall be made throughout the period of the member's continued employment.

(4) The member shall earn creditable service under IC 5-10.2-3-1 for the member's continued employment.

(5) When the period of the member's continued employment terminates, the member may again file an application for retirement benefits under this chapter.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.49-1985, SEC.1; P.L.195-1999, SEC.18; P.L.246-2001, SEC.6; P.L.62-2005, SEC.3; P.L.72-2007, SEC.5; P.L.76-2008, SEC.2; P.L.130-2008, SEC.1; P.L.115-2009, SEC.8; P.L.35-2012, SEC.45; P.L.195-2013, SEC.6; P.L.2-2014, SEC.15.

IC 5-10.2-4-8.2Election, appointment to elected position, or service in other position covered by this article Sec. 8.2. (a) Notwithstanding section 8 of this chapter, if a member who is receiving retirement benefits is elected or appointed to an elected position covered by this article, the member shall file a written, irrevocable election with the board to continue or discontinue retirement benefits while the member holds the elected position.

(b) If a member:

(1) is elected or appointed to an elected position and:

(A) becomes at least fifty-five (55) years of age; and

(B) completes at least twenty (20) years of service; or

(2) is serving in any other position covered by this article and:

(A) becomes:

(i) before July 1, 2023, at least seventy (70) years of age; and

(ii) after June 30, 2023, at least sixty-five (65) years of age; and

(B) completes at least twenty (20) years of service;

while holding the position, the member may file a written, irrevocable election to begin receiving, while holding the position, retirement benefits to which the member would be entitled by age and service. A member who does not make the irrevocable election while holding the position continues to accrue service credit for any period from the date the member qualifies to make the election under this subsection to the date on which the member files a retirement application or the date on which the member ceases to hold the position, whichever occurs first.

(c) The form and content of an election shall be prescribed by the board. If the member elects to discontinue receiving retirement benefits, the member shall make contributions as required in IC 5-10.2-3-2. If the member elects to continue or begin receiving benefits:

(1) the member may continue to make contributions under IC 5-10.2-3-2 but is not required to do so; and

(2) the member waives the accrual of service credit and the right to any supplemental benefit from service in the position, except to the extent that the value of the accrual of additional service credit and any supplemental benefit exceeds the actuarial value of the benefits received under this chapter and that were continued or begun pursuant to an election under this section.

(d) Except to the extent of the liability for any additional benefit accrued under subsection (c)(2), the employer shall make the employer's contribution only for past service liability based on the salary for the position of a member who elects under subsection (a) or (b) to continue or begin receiving retirement benefits.

(e) Section 10 of this chapter applies to a member who elects under subsection (a) to discontinue receiving retirement benefits. Section 10 of this chapter does not apply, while the member holds a position covered by this article, to a member who elects under subsection (a) or (b) to continue or begin receiving retirement benefits.

As added by P.L.47-1985, SEC.4. Amended by P.L.60-1989, SEC.1; P.L.4-1990, SEC.10; P.L.25-1994, SEC.4; P.L.61-2002, SEC.6; P.L.27-2019, SEC.3; P.L.201-2023, SEC.80.

IC 5-10.2-4-8.4Retirement while serving in elected position Sec. 8.4. (a) This section does not apply to a member of the Indiana state teachers' retirement fund who is eligible to retire under IC 5-10.2-2-8(b).

(b) A member of the Indiana state teachers' retirement fund who:

(1) serves in an elected position; and

(2) after June 30, 2006, makes an election under section 8.2(b) of this chapter to begin receiving, while the member holds the elected position or not later than thirty (30) days after the day on which the member's elected term of office ends, the retirement benefits to which the member is entitled by age and service;

may choose at the member's retirement date whether to retire from the Indiana state teachers' retirement fund or from the public employees' retirement fund.

(c) If the member described in subsection (b) chooses to retire from the public employees' retirement fund, that fund is responsible for the payment of benefits provided under this chapter, and the Indiana state teachers' retirement fund shall pay to the public employees' retirement fund:

(1) the amount credited to that member in the annuity savings account in the Indiana state teachers' retirement fund; and

(2) the proportionate actuarial cost of the member's pension.

As added by P.L.119-2006, SEC.2. Amended by P.L.93-2008, SEC.3.

IC 5-10.2-4-9Death during reemployment Sec. 9. (a) This section applies only to a retired member of the public employees' retirement fund who, before July 1, 2013, begins a period of reemployment in a covered position more than thirty (30) days after the member's retirement.

(b) If a member dies during reemployment and retirement benefits from before the member's reemployment are payable after the member's death, the payment of these amounts shall be made without change, and any additional benefit earned during reemployment shall be paid as provided in section 10 of this chapter.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.47-1985, SEC.5; P.L.246-2001, SEC.7; P.L.72-2007, SEC.6; P.L.76-2008, SEC.3; P.L.195-2013, SEC.7.

IC 5-10.2-4-10Benefits after reemployment Sec. 10. (a) This section applies only to a retired member of the public employees' retirement fund who, before July 1, 2013, begins a period of reemployment in a covered position more than thirty (30) days after the member's retirement.

(b) Benefits provided under this section are subject to IC 5-10.2-2-1.5.

(c) Upon termination of reemployment, except by death, the retirement benefits from before the member's reemployment which are payable after termination shall be paid without change.

(d) If the member is reemployed for fewer than ninety (90) consecutive school or working days, upon termination of reemployment, contributions and interest credited to the member's annuity savings account shall be paid to the member.

(e) If the member is reemployed for ninety (90) or more consecutive school or working days, upon termination of reemployment, the member shall receive an additional benefit.

(f) The additional retirement benefit consists of the sum of a supplemental pension and a supplemental annuity. The supplemental pension is computed under section 4 of this chapter using the member's:

(1) years of service during the member's reemployment; and

(2) average compensation during the member's reemployment, if the member is reemployed for less than five (5) years, or average of the annual compensation (as defined in section 3 of this chapter) during the member's reemployment.

If the member is entitled to a supplemental annuity, it consists of an annuity provided by contributions and interest credited to the member during reemployment, if any.

(g) The additional retirement benefits are guaranteed for five (5) years or until the member's death, whichever is later. The member may choose instead of the guaranteed payments any of the options under section 7 of this chapter for the payment of the member's additional retirement benefits.

(h) IC 5-10.2-2-7 applies to additional retirement benefits.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.49-1985, SEC.2; P.L.40-1986, SEC.2; P.L.55-1989, SEC.20; P.L.22-1993, SEC.3; P.L.25-1994, SEC.5; P.L.246-2001, SEC.8; P.L.72-2007, SEC.7; P.L.76-2008, SEC.4; P.L.195-2013, SEC.8.

IC 5-10.2-4-10.2RepealedAs added by P.L.35-1985, SEC.17. Repealed by P.L.40-1986, SEC.3.

IC 5-10.2-5Chapter 5. Restricted Benefits

5-10.2-5-1Transitional benefits, 1955 5-10.2-5-2Members retired pre-1956 5-10.2-5-3Surviving spouse, 1956-1959 5-10.2-5-4Cost of living increases 5-10.2-5-5Special benefit; $200 minimum 5-10.2-5-6Post-retirement cost of living increase payable on or after July 1, 1977 5-10.2-5-7Postretirement increase payable on or after July 1, 1979 5-10.2-5-8Postretirement increase payable on and after July 1, 1980 5-10.2-5-91980 cost of living adjustment 5-10.2-5-101981 postretirement increase 5-10.2-5-111982 postretirement increases 5-10.2-5-121983 postretirement increases 5-10.2-5-13Pension increases payable after June 30, 1984 5-10.2-5-14Increases in pension payable after June 30, 1985 5-10.2-5-15Cost of living increases in pension payable after June 30, 1986 5-10.2-5-16Pension increases payable after June 30, 1987 5-10.2-5-17Increases after June 30, 1988 5-10.2-5-18Repealed 5-10.2-5-19Increases after June 30, 1989 5-10.2-5-20Employees of institutions of higher learning 5-10.2-5-21Pension increases payable after June 30, 1990 5-10.2-5-22Increases after June 30, 1994 5-10.2-5-23Pension increases payable after June 30, 1995 5-10.2-5-24Pension increases payable after June 30, 1996 5-10.2-5-25Increases after June 30, 1997 5-10.2-5-26Pension increases payable after June 30, 1998 5-10.2-5-27Pension increases payable after June 30, 1999 5-10.2-5-28Pension increases payable after June 30, 2000 5-10.2-5-29Minimum purchasing power of pension portion after June 30, 1999 5-10.2-5-30Minimum purchasing power of pension portion after June 30, 2000 5-10.2-5-31Pension increases payable after June 30, 2001 5-10.2-5-32Repealed 5-10.2-5-33Public employees' retirement fund; pension increases payable after December 31, 2003 5-10.2-5-34Repealed 5-10.2-5-34.4Repealed 5-10.2-5-36Public employees' retirement fund; pension increase payable after December 31, 2004 5-10.2-5-37Repealed 5-10.2-5-38Public employees' retirement fund; benefit increase payable after December 31, 2005 5-10.2-5-39Teachers' retirement fund; benefit increase payable after December 31, 2005 5-10.2-5-40Public employees' retirement fund; benefit increase payable after December 31, 2006 5-10.2-5-41Teachers' retirement fund; benefit increase payable after December 31, 2006 5-10.2-5-42Teachers' retirement fund; cost of living increase payable after December 31, 2007 5-10.2-5-42.4Public employees' retirement fund; increase payable after December 31, 2007 5-10.2-5-43Public employees' retirement fund; benefit increase payable after December 31, 2008 5-10.2-5-43.4Teachers' retirement fund; benefit increase payable after December 31, 2008

IC 5-10.2-5-1Transitional benefits, 1955 Sec. 1. (a) A member who was an employee of the state or political subdivision on April 1, 1955, and who was a member of the public employees' retirement fund or the Indiana state teachers' retirement fund, before April 1, 1955, is entitled to a normal retirement benefit which, when added to the primary social security benefit to which he may become entitled under the Social Security Act, is greater than or equal to the normal retirement benefit to which he would have been entitled under the retirement fund law in effect before April 1, 1955.

(b) This section does not abridge, diminish, or cancel any rights, privileges, or benefits provided to these members under laws in effect before April 1, 1955.

(1) was a member of that fund on April 1, 1955; and

(2) dies, retires, or qualifies for disability retirement before April 2, 1970;

the member or his surviving spouse may choose to receive, instead of the benefits of this article, the annuity survivor or disability benefits under the retirement fund law in effect on March 31, 1955. The benefit paid shall be reduced by any payments under the federal Social Security Act. In addition, the member may receive any annuity payments provided by additional annuity contributions.

(d) If a member has earnings recorded under the Social Security Act from employment with more than one (1) employer, the amount of his primary social security benefit shall be computed by applying to his total primary social security benefit the percentage which his earnings recorded for service covered by IC 5-10.1 constitute of his total earnings recorded under the Social Security Act. The social security benefit determined is considered payable even if the member fails to apply for the benefit or loses all or part of it by delaying to apply for it or by engaging in covered employment or for any other reason.

(e) The benefit to which the member would have been entitled under the retirement fund law in effect before April 1, 1955, shall be computed either:

(1) on the assumption that contributions were made as required by the retirement fund law on and after the date the member became subject to the Social Security Act; or

(2) on the basis of his contributions actually made to the fund on and after April 1, 1955, and to the contribution fund established in IC 5-10.1 by January 1, 1987;

whichever of subdivision (1) or (2) is larger.

(f) The normal retirement benefit for retirement at any age under retirement fund laws in effect before April 1, 1955, and for retirement on or after age sixty-five (65) under this article is the retirement benefit payable for life without special election. For retirement before age sixty-five (65) after April 1, 1955, it is the retirement benefit payable under the option which integrates with the social security benefit at the youngest age of eligibility for the social security benefit to provide a uniform total benefit.

(g) The employer responsible for the employer contribution for a member who is retiring shall make any contributions required to carry out this section.

As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.57-1987, SEC.4.

IC 5-10.2-5-2Members retired pre-1956 Sec. 2. Members Retired Pre-1956. The retirement benefits of members who retired before January 1, 1956, shall be computed by multiplying fifteen dollars ($15.00) times years of service and then adjusting the product obtained for early retirement and the selected retirement option by using the factors in effect on July 1, 1975.

As added by Acts 1977, P.L.53, SEC.2.

IC 5-10.2-5-3Surviving spouse, 1956-1959 Sec. 3. Surviving Spouse, 1956-1959. The surviving spouse of a member who accumulated twenty (20) years of service in his retirement fund and who died between January 1, 1956, and April 1, 1959, is entitled to the annuity survivor benefits in effect on April 1, 1959.

As added by Acts 1977, P.L.53, SEC.2.

IC 5-10.2-5-4Cost of living increases Sec. 4. Cost of Living Increases. As a cost of living increase, the retirement, disability, and survivor benefit payable on and after July 1, 1976, to a member, or beneficiary or survivor of a member, who retired before July 2, 1975, shall be increased by three percent (3%). However, the benefit may not be increased by an amount less than seven dollars ($7.00) per month nor more than fifteen dollars ($15.00) per month. This section does not apply to benefits payable in a lump sum.

As added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1977(ss), P.L.2, SEC.1.

IC 5-10.2-5-5Special benefit; $200 minimum Sec. 5. Special Benefit: $200 Minimum. (a) On and after July 1, 1976, a retired member is entitled to a supplemental retirement benefit to be paid by the fund as long as he meets each of these conditions:

(1) he currently receives an annuity or pension or other retirement benefit from his fund;

(2) he was sixty-five (65) years of age or older on July 1, 1976; and

(3) the amount of all annuities, pensions, and retirement benefits for which he is eligible under the Social Security Act is less than two hundred dollars ($200) per month.

(b) The amount of supplemental retirement benefit to which a qualifying retired member is entitled each month is the difference between two hundred dollars ($200) and the total of all annuities, pensions and retirement benefits which he is eligible to receive under the Social Security Act. A retired member who is not eligible for any annuity, pension, or retirement benefit under the Social Security Act on July 1, 1976, and who qualifies under subsection (a) of this section, is entitled to a supplemental retirement benefit of two hundred dollars ($200) per month.

(c) This section does not apply to members of the public employees' retirement fund who have been classified as federal employees by the secretary of agriculture of the United States.

As added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1978, P.L.24, SEC.3.

IC 5-10.2-5-6Post-retirement cost of living increase payable on or after July 1, 1977 Sec. 6. (a) The monthly benefit (B) payable on and after July 1, 1977, to a member, or a survivor or beneficiary of a member, who retired or was disabled before July 2, 1972, shall be increased by an amount equal to the benefit payable (J) in June 1977 times one-half percent (1/2%) times the number of years (y) from the member's date of retirement or disability through June 1977.

Expressed mathematically: B = (1 + .005y)J

This subsection does not apply to persons receiving disability benefits under IC 5-10.4-5-2.

(b) As a cost of living increase, the retirement, disability, and survivor benefit payable on and after July 1, 1978, to a member, or a beneficiary or survivor of a member, who retired before July 2, 1977, shall be increased by three percent (3%). This subsection does not apply to benefits payable in a lump sum.

As added by Acts 1977(ss), P.L.2, SEC.2. Amended by P.L.2-2006, SEC.26.

IC 5-10.2-5-7Postretirement increase payable on or after July 1, 1979 Sec. 7. Postretirement Increase. (a) The monthly benefit payable on and after July 1, 1979, to a member, or a survivor or beneficiary of a member, who retired or was disabled:

(1) before July 2, 1962, shall be increased by six percent (6%);

(2) after July 1, 1962, and before July 2, 1967, shall be increased by four percent (4%); and

(3) after July 1, 1967, and before July 2, 1972, shall be increased by two percent (2%).

The increase specified in this section shall be based upon the date of the member's initial retirement or disability. This section does not apply to benefits payable in a lump sum.

(b) As a cost of living increase, the retirement, disability, and survivor benefits payable after June 30, 1979, to a member, or a beneficiary or a survivor of a member, who retired before August 1, 1978, shall be increased three percent (3%). The increase provided by this subsection is in addition to any other increase provided by law. This subsection does not apply to benefits payable in a lump sum.

As added by Acts 1979, P.L.36, SEC.1.

IC 5-10.2-5-8Postretirement increase payable on and after July 1, 1980 Sec. 8. Postretirement Increase. The monthly benefit payable on and after July 1, 1980, to a member, or a survivor or beneficiary of a member, who retired or was disabled:

(1) before July 2, 1963, shall be increased by nine percent (9%);

(2) after July 1, 1963, and before July 2, 1968, shall be increased by six percent (6%); and

(3) after July 1, 1968, and before July 2, 1973, shall be increased by three percent (3%).

The increase specified in this section shall be based upon the date of the member's initial retirement or disability. This section does not apply to benefits payable in a lump sum. The increases provided by this section are in addition to any other increase provided by law.

As added by Acts 1980, P.L.29, SEC.1.

IC 5-10.2-5-91980 cost of living adjustment Sec. 9. 1980 Cost of Living Adjustment. As a cost of living increase, the retirement, disability, and survivor benefits payable after June 30, 1980, to a member, or a beneficiary or a survivor of a member, who retired before August 1, 1979, shall be increased four percent (4%). The increase provided by this section is in addition to any other increase provided by law. This section does not apply to benefits payable in a lump sum.

As added by Acts 1980, P.L.29, SEC.2.

IC 5-10.2-5-101981 postretirement increase Sec. 10. Postretirement Increase. The monthly benefit payable on and after July 1, 1981, to a member, or a survivor or beneficiary of a member, who retired or was disabled before July 2, 1968, shall be increased by three percent (3%). The increase specified in this section shall be based upon the date of the member's initial retirement or disability. This section does not apply to benefits payable in a lump sum. The increases provided by this section are in addition to any other increase provided by law.

As added by Acts 1981, P.L.49, SEC.2.

IC 5-10.2-5-111982 postretirement increases Sec. 11. 1982 Postretirement Increases. (a) The monthly benefit payable after June 30, 1982, to a member, or a survivor or beneficiary of a member, who retired or was disabled before July 2, 1980, shall be increased by four percent (4%).

(b) The increase specified in this section:

(1) shall be based upon the date of the member's initial retirement or disability;

(2) does not apply to benefits payable in a lump sum; and

(3) is in addition to any other increase provided by law.

As added by Acts 1982, P.L.38, SEC.1.

IC 5-10.2-5-121983 postretirement increases Sec. 12. (a) The monthly benefit payable after June 30, 1983, to a member, or a survivor or beneficiary of a member, who retired or was disabled:

(1) before July 2, 1965, shall be increased by three percent (3%);

(2) after July 1, 1965, and before July 2, 1970, shall be increased by two percent (2%); and

(3) after July 1, 1970, and before July 2, 1975, shall be increased by one percent (1%).

(b) In addition to the increase specified in subsection (a), the monthly benefit payable after June 30, 1983, to a member, or a survivor or beneficiary of a member, who retired or was disabled before July 2, 1982, shall be increased by three percent (3%).

(1) shall be based upon the date of the member's initial retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.50-1983, SEC.1.

IC 5-10.2-5-13Pension increases payable after June 30, 1984 Sec. 13. (a) The pension portion (plus postretirement increases to the pension portion), provided by employer contributions, of the monthly benefit payable after June 30, 1984, to a member, or a survivor or beneficiary of a member, who retired or was disabled:

(1) before July 2, 1966, shall be increased by four percent (4%);

(2) after July 1, 1966, and before July 2, 1971, shall be increased by three percent (3%); and

(3) after July 1, 1971, and before July 2, 1981, shall be increased by two percent (2%).

(b) The increases specified in this section:

(1) shall be based upon the date of the member's initial retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.30-1984, SEC.1.

IC 5-10.2-5-14Increases in pension payable after June 30, 1985 Sec. 14. (a) The pension portion (plus postretirement increases to the pension portion), provided by employer contributions, of the monthly benefit payable after June 30, 1985, to a member, or a survivor or beneficiary of a member, who retired or was disabled:

(1) before July 2, 1969, shall be increased by three percent (3%);

(2) after July 1, 1969, and before July 2, 1974, shall be increased by two percent (2%); and

(3) after July 1, 1974, and before July 2, 1979, shall be increased by one percent (1%).

(b) In addition to the increase specified in subsection (a), the pension portion (plus postretirement increases to the pension portion), provided by employer contributions, of the monthly benefit payable after June 30, 1985, to a member, or a survivor or beneficiary of a member, who retired or was disabled before July 2, 1984, shall be increased by three percent (3%).

(1) shall be based upon the date of the member's initial retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.50-1985, SEC.1.

IC 5-10.2-5-15Cost of living increases in pension payable after June 30, 1986 Sec. 15. (a) The pension portion (plus postretirement increases to the pension portion), provided by employer contributions, of the monthly benefit payable after June 30, 1986, to a member, or a survivor or beneficiary of a member, who retired or was disabled:

(1) before July 2, 1970, shall be increased by three percent (3%);

(2) after July 1, 1970, and before July 2, 1975, shall be increased by two percent (2%); and

(3) after July 1, 1975, and before July 2, 1980, shall be increased by one percent (1%).

(b) In addition to the increase specified in subsection (a), the pension portion (plus postretirement increases to the pension portion), provided by employer contributions, of the monthly benefit payable after June 30, 1986, to a member, or a survivor or beneficiary of a member, who retired or was disabled before July 2, 1985, shall be increased by two percent (2%).

(1) shall be based upon the date of the member's initial retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.41-1986, SEC.1.

IC 5-10.2-5-16Pension increases payable after June 30, 1987 Sec. 16. (a) Subject to subsection (d), the pension portion (plus postretirement increases to the pension portion), provided by employer contributions, of the monthly benefit payable after June 30, 1987, to a member, or a survivor or beneficiary of a member, who retired or was disabled:

(1) before July 2, 1970, shall be increased by three percent (3%);

(2) after July 1, 1970, and before July 2, 1976, shall be increased by two percent (2%); and

(3) after July 1, 1976, and before July 2, 1981, shall be increased by one percent (1%).

(b) In addition to the increase specified in subsection (a), the pension portion (plus postretirement increases to the pension portion), provided by employer contributions, of the monthly benefit payable after June 30, 1987, to a member, or a survivor or beneficiary of a member, who retired or was disabled before July 2, 1985, shall, subject to subsection (d), be increased by one percent (1%).

(1) shall be based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

(d) This section is applicable only if the general assembly provides sufficient funding for the increased cost of the benefits provided by this section.

As added by P.L.59-1987, SEC.1.

IC 5-10.2-5-17Increases after June 30, 1988 Sec. 17. (a) The pension portion (plus postretirement increases to the pension portion), provided by employer contributions, of the monthly benefit payable after June 30, 1988, to a member, or a survivor or beneficiary of a member, who retired or was disabled:

(1) before July 2, 1970, shall be increased by three percent (3%);

(2) after July 1, 1970, and before July 2, 1976, shall be increased by two percent (2%); and

(3) after July 1, 1976, and before July 2, 1981, shall be increased by one percent (1%).

(b) In addition to the increase specified in subsection (a), the pension portion (plus postretirement increases to the pension portion), provided by employer contribution, of the monthly benefit payable after June 30, 1988, to a member, or a survivor or beneficiary of a member, who retired or was disabled before July 2, 1986, shall be increased by one percent (1%).

(1) shall be based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

(d) This subsection does not apply to a person described in IC 5-10.4-6-7. For the period beginning July 1, 1988, through June 30, 1989, the costs of the postretirement increases provided by this section for members of the Indiana state teachers' retirement fund shall be charged to the retired teacher annuity reserve.

As added by P.L.45-1988, SEC.2. Amended by P.L.2-2006, SEC.27.

IC 5-10.2-5-18RepealedAs added by P.L.45-1988, SEC.3. Repealed by P.L.2-2006, SEC.199.

IC 5-10.2-5-19Increases after June 30, 1989 Sec. 19. (a) The pension portion (plus postretirement increases to the pension portion), provided by employer contributions, of the monthly benefit payable after June 30, 1989, to a member, or a survivor or beneficiary of a member, who retired or was disabled before July 2, 1987, shall be increased by three percent (3%).

(b) The increases specified in this section:

(1) shall be based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.61-1989, SEC.1.

IC 5-10.2-5-20Employees of institutions of higher learning Sec. 20. (a) Notwithstanding the repeal of IC 5-10.2-2-5, a member who:

(1) is an employee of a state educational institution; and

(2) began making contributions by payroll deduction under IC 5-10.2-2-5 before January 1, 1989;

may continue to make contributions after June 30, 1989, as if IC 5-10.2-2-5 had not been repealed. Such an institution may continue to make additional contributions for members on whose behalf additional contributions were being made before January 1, 1989.

(b) The employer may use contributions made under this section and IC 5-10.2-2-5 to purchase an annuity from a retirement fund for a member described in subsection (a) at any time before the member retires.

(c) Interest shall be credited on contributions made under this section and IC 5-10.2-2-5 as specified in IC 5-10.2-2-4 (before its expiration).

(d) Nothing in this section or in the repeal of IC 5-10.2-2-5 may be construed to affect in any way the ability of a state educational institution to make contributions on behalf of its employees to a tax deferred annuity under Section 403(b) of the Internal Revenue Code.

(e) A member who:

(1) has at least five (5) years of credited service;

(2) is an employee of a state educational institution; and

(3) is transferred from a position covered by the Indiana state teachers' retirement fund or the Indiana public employees' retirement fund to a position not covered by either of the funds;

shall continue to receive credit, for the determination of eligibility for benefits only, for up to five (5) additional years of service with the institution, subject to all the provisions of the retirement fund law. The additional service credit and the salary in the non-covered position shall not be included in the computation of benefits from the retirement fund.

As added by P.L.55-1989, SEC.21. Amended by P.L.2-2007, SEC.94; P.L.86-2018, SEC.16.

IC 5-10.2-5-21Pension increases payable after June 30, 1990 Sec. 21. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after June 30, 1990, to a member or a survivor or beneficiary of a member who retired or was disabled:

(1) before July 2, 1971, shall be increased by three percent (3%);

(2) after July 1, 1971, and before July 2, 1976, shall be increased by two percent (2%); and

(3) after July 1, 1976, and before July 2, 1983, shall be increased by one percent (1%).

(b) In addition to the increase specified in subsection (a), the pension portion (plus postretirement increases to the pension portion), provided by employer contributions of the monthly benefit payable after June 30, 1990, to a member or a survivor or beneficiary of a member, who retired or was disabled before July 2, 1988, shall be increased by two percent (2%).

As added by P.L.43-1990, SEC.1.

IC 5-10.2-5-22Increases after June 30, 1994 Sec. 22. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after June 30, 1994, to a member of the public employees' retirement fund or the Indiana state teachers' retirement fund or a survivor or beneficiary of a member of the public employees' retirement fund or the Indiana state teachers' retirement fund who retired or was disabled:

(1) after July 1, 1987, and before July 2, 1992, shall be increased by one percent (1%);

(2) after July 1, 1984, and before July 2, 1987, shall be increased by two percent (2%); and

(3) before July 2, 1984, shall be increased by three percent (3%).

(b) This subsection applies only to an increase payable to a member of the Indiana teachers' retirement fund. The cost difference between the monthly benefit payable before the increase required by this section and the monthly benefit payable after the increase required by this section after June 30, 1994, and before July 1, 1995, shall be paid from the employer reserve fund for the Indiana state teachers' retirement fund. After June 30, 1995, the difference shall be paid from the state general fund.

(1) shall be based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.27-1994, SEC.1.

IC 5-10.2-5-23Pension increases payable after June 30, 1995 Sec. 23. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after June 30, 1995, to a member of the public employees' retirement fund or the Indiana state teachers' retirement fund or a survivor or beneficiary of a member of the public employees' retirement fund or the Indiana state teachers' retirement fund who retired or was disabled:

(1) before July 2, 1981, shall be increased by three and one-tenth percent (3.1%); and

(2) after July 1, 1981, and before July 2, 1993, shall be increased by one and one-half percent (1.5%).

(b) This subsection applies only to an increase payable to a member of the Indiana state teachers' retirement fund. The cost difference between the monthly benefit payable before the increase required by this section and the monthly benefit payable after the increase required by this section after June 30, 1995, and before July 1, 1996, shall be paid from the employer reserve fund for the Indiana state teachers' retirement fund. After June 30, 1996, the difference shall be paid from the state general fund.

(1) shall be based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.68-1995, SEC.1.

IC 5-10.2-5-24Pension increases payable after June 30, 1996 Sec. 24. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after June 30, 1996, to a member of the public employees' retirement fund or the Indiana state teachers' retirement fund or a survivor or beneficiary of a member of the public employees' retirement fund or the Indiana state teachers' retirement fund who retired or was disabled:

(1) before July 2, 1981, shall be increased by three and one-tenth percent (3.1%); and

(2) after July 1, 1981, and before July 2, 1993, shall be increased by one and one-half percent (1.5%).

(b) This subsection applies only to an increase payable to a member of the Indiana state teachers' retirement fund. The cost difference between the monthly benefit payable before the increase required by this section and the monthly benefit payable after the increase required by this section after June 30, 1996, and before July 1, 1997, shall be paid from the employer reserve fund for the Indiana state teachers' retirement fund. After June 30, 1997, the difference shall be paid from the state general fund.

(1) shall be based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.68-1995, SEC.2.

IC 5-10.2-5-25Increases after June 30, 1997 Sec. 25. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after June 30, 1997, to a member of the public employees' retirement fund or the Indiana state teachers' retirement fund or a survivor or beneficiary of a member of the public employees' retirement fund or the Indiana state teachers' retirement fund who retired or was disabled:

(1) after July 1, 1983, and before July 2, 1996, shall be increased by two percent (2%);

(2) after July 1, 1975, and before July 2, 1983, shall be increased by three percent (3%); and

(3) before July 2, 1975, shall be increased by four percent (4%).

(b) This subsection applies only to an increase payable to a member of the Indiana teachers' retirement fund. The cost difference between the monthly benefit payable before the increase required by this section and the monthly benefit payable after the increase required by this section after June 30, 1997, and before July 1, 1998, shall be paid from the employer reserve fund for the Indiana state teachers' retirement fund. After June 30, 1998, the difference shall be paid from the state general fund.

(1) shall be based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.44-1997, SEC.1.

IC 5-10.2-5-26Pension increases payable after June 30, 1998 Sec. 26. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after June 30, 1998, to a member of the public employees' retirement fund or the Indiana state teachers' retirement fund or a survivor or beneficiary of a member of the public employees' retirement fund or the Indiana state teachers' retirement fund who retired or was disabled:

(1) after July 1, 1983, and before July 2, 1995, shall be increased by two percent (2%);

(2) after July 1, 1975, and before July 2, 1983, shall be increased by three percent (3%); and

(3) before July 2, 1975, shall be increased by four percent (4%).

(b) The increases specified in this section:

(1) shall be based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.45-1998, SEC.1.

IC 5-10.2-5-27Pension increases payable after June 30, 1999 Sec. 27. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after June 30, 1999, to a member of the public employees' retirement fund or the Indiana state teachers' retirement fund (or to a survivor or beneficiary of a member of the public employees' retirement fund or the Indiana state teachers' retirement fund) who retired or was disabled:

(1) after July 1, 1990, and before July 2, 1995, shall be increased by one and one-quarter percent (1.25%);

(2) after July 1, 1980, and before July 2, 1990, shall be increased by two percent (2%);

(3) after July 1, 1970, and before July 2, 1980, shall be increased by five percent (5%);

(4) after July 1, 1960, and before July 2, 1970, shall be increased by seven percent (7%); and

(5) before July 2, 1960, shall be increased by nine percent (9%).

(b) The increases specified in this section:

(1) are based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.228-1999, SEC.1.

IC 5-10.2-5-28Pension increases payable after June 30, 2000 Sec. 28. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after June 30, 2000, to a member of the public employees' retirement fund or the Indiana state teachers' retirement fund (or to a survivor or beneficiary of a member of the public employees' retirement fund or the Indiana state teachers' retirement fund) who retired or was disabled:

(1) after July 1, 1990, and before July 2, 1996, shall be increased by one percent (1%);

(2) after July 1, 1980, and before July 2, 1990, shall be increased by two percent (2%);

(3) after July 1, 1970, and before July 2, 1980, shall be increased by five percent (5%);

(4) after July 1, 1960, and before July 2, 1970, shall be increased by seven percent (7%); and

(5) before July 2, 1960, shall be increased by nine percent (9%).

(b) The increases specified in this section:

(1) are based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.228-1999, SEC.2.

IC 5-10.2-5-29Minimum purchasing power of pension portion after June 30, 1999 Sec. 29. (a) In addition to any other cost of living provided under this chapter, the pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after June 30, 1999, to a member of the public employees' retirement fund or the Indiana state teachers' retirement fund (or to a survivor or beneficiary of a member of the public employees' retirement fund or the Indiana state teachers' retirement fund) who retired or was disabled before July 2, 1960, shall be increased by the amount necessary to ensure that the purchasing power (as determined by the PERF or TRF board (as those boards existed before their dissolution on July 1, 2011), based on changes in the consumer price index and postretirement increases to the pension portion) of the member's pension portion is at least equal to fifty percent (50%) of the purchasing power of the member's pension portion at the time the member retired, as determined on July 1, 1999.

(b) The increases specified in this section:

(1) are based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.228-1999, SEC.3. Amended by P.L.35-2012, SEC.46.

IC 5-10.2-5-30Minimum purchasing power of pension portion after June 30, 2000 Sec. 30. (a) In addition to any other cost of living provided under this chapter, the pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after June 30, 2000, to a member of the public employees' retirement fund or the Indiana state teachers' retirement fund (or to a survivor or beneficiary of a member of the public employees' retirement fund or the Indiana state teachers' retirement fund) who retired or was disabled before July 2, 1975, shall be increased by the amount necessary to ensure that the purchasing power (as determined by the PERF or TRF board (as those boards existed before their dissolution on July 1, 2011), based on changes in the consumer price index and postretirement increases to the pension portion) of the member's pension portion is at least equal to fifty-seven and four-tenths percent (57.4%) of the purchasing power of the member's pension portion at the time the member retired, as determined on July 1, 2000.

(b) The increases specified in this section:

(1) are based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.228-1999, SEC.4. Amended by P.L.35-2012, SEC.47.

IC 5-10.2-5-31Pension increases payable after June 30, 2001 Sec. 31. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after June 30, 2001, to a member of the public employees' retirement fund or the Indiana state teachers' retirement fund (or to a survivor or beneficiary of a member of the public employees' retirement fund or the Indiana state teachers' retirement fund) who retired or was disabled before July 2, 1999, shall be increased by one percent (1%).

(b) The increases specified in this section:

(1) are based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.285-2001, SEC.2.

IC 5-10.2-5-32RepealedAs added by P.L.191-2002, SEC.1. Repealed by P.L.2-2006, SEC.199.

IC 5-10.2-5-33Public employees' retirement fund; pension increases payable after December 31, 2003 Sec. 33. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after December 31, 2003, to a member of the public employees' retirement fund (or to a survivor or beneficiary of a member of the public employees' retirement fund) who retired or was disabled before January 1, 2003, shall be increased by two percent (2%).

(b) The monthly amount of the increase described in subsection (a) payable to a member of the public employees' retirement fund (or to a survivor or beneficiary of a member of the public employees' retirement fund) may not be less than five dollars ($5).

(1) are based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.190-2003, SEC.3.

IC 5-10.2-5-34RepealedAs added by P.L.190-2003, SEC.4. Amended by P.L.246-2005, SEC.50. Repealed by P.L.12-2008, SEC.3.

IC 5-10.2-5-34.4RepealedAs added by P.L.172-2003, SEC.1. Repealed by P.L.2-2006, SEC.199.

IC 5-10.2-5-36Public employees' retirement fund; pension increase payable after December 31, 2004 Sec. 36. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after December 31, 2004, to a member of the public employees' retirement fund (or to a survivor or beneficiary of a member) who retired or was disabled before January 1, 2004, shall be increased by two percent (2%).

(b) The monthly amount of the increase described in subsection (a) payable to a member of the public employees' retirement fund (or to a survivor or beneficiary of a member) may not be less than five dollars ($5).

(1) are based on the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.56-2004, SEC.1.

IC 5-10.2-5-37RepealedAs added by P.L.56-2004, SEC.2. Repealed by P.L.2-2006, SEC.199.

IC 5-10.2-5-38Public employees' retirement fund; benefit increase payable after December 31, 2005 Sec. 38. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after December 31, 2005, to a member of the public employees' retirement fund (or to a survivor or beneficiary of a member of the public employees' retirement fund) who retired or was disabled:

(1) before July 2, 1990, shall be increased by two percent (2%); and

(2) after July 1, 1990, and before January 1, 2005, shall be increased by one and one-half percent (1.5%).

(b) The increases specified in this section:

(1) are based on the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.246-2005, SEC.51.

IC 5-10.2-5-39Teachers' retirement fund; benefit increase payable after December 31, 2005 Sec. 39. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after December 31, 2005, to a member of the Indiana state teachers' retirement fund (or to a survivor or beneficiary of a member of the Indiana state teachers' retirement fund) who retired or was disabled:

(1) before July 2, 1990, shall be increased by two percent (2%); and

(2) after July 1, 1990, and before July 2, 2003, shall be increased by one percent (1%).

(b) The increases specified in this section:

(1) are based on the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.246-2005, SEC.52.

IC 5-10.2-5-40Public employees' retirement fund; benefit increase payable after December 31, 2006 Sec. 40. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after December 31, 2006, to a member of the public employees' retirement fund (or to a survivor or beneficiary of a member of the public employees' retirement fund) who retired or was disabled before January 1, 2006, shall be increased by two percent (2%).

(b) The increase specified in this section:

(1) is based on the date of the member's latest retirement or disability;

(2) does not apply to benefits payable in a lump sum; and

(3) is in addition to any other increase provided by law.

As added by P.L.115-2006, SEC.1. Amended by P.L.1-2007, SEC.27.

IC 5-10.2-5-41Teachers' retirement fund; benefit increase payable after December 31, 2006 Sec. 41. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after December 31, 2006, to a member of the Indiana state teachers' retirement fund (or to a survivor or beneficiary of a member of the Indiana state teachers' retirement fund) who retired or was disabled:

(1) before July 2, 1991, shall be increased by two percent (2%); and

(2) after July 1, 1991, and before July 2, 2004, shall be increased by one percent (1%).

(b) The increases specified in this section:

(1) are based on the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.115-2006, SEC.2.

IC 5-10.2-5-42Teachers' retirement fund; cost of living increase payable after December 31, 2007 Sec. 42. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after December 31, 2007, to a member of the Indiana state teachers' retirement fund (or to a survivor or beneficiary of a member of the Indiana state teachers' retirement fund) who retired or was disabled:

(1) before July 2, 1999, shall be increased by two percent (2%); and

(2) after July 1, 1999, and before July 2, 2005, shall be increased by one percent (1%).

(b) The increases specified in this section:

(1) are based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.87-2007, SEC.1.

IC 5-10.2-5-42.4Public employees' retirement fund; increase payable after December 31, 2007 Sec. 42.4. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after December 31, 2007, to a member of the public employees' retirement fund (or to a survivor or beneficiary of a member of the public employees' retirement fund) who retired or was disabled before January 1, 2007, shall be increased by two percent (2%).

(b) The increases specified in this section:

(1) are based on the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.163-2007, SEC.1.

IC 5-10.2-5-43Public employees' retirement fund; benefit increase payable after December 31, 2008 Sec. 43. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after December 31, 2008, to a member of the public employees' retirement fund (or to a survivor or beneficiary of a member of the public employees' retirement fund) who retired or was disabled before January 1, 2008, shall be increased by:

(1) two percent (2%) for members who retired after December 31, 1999; and

(2) two and one-half (2.5%) percent for members who retired before January 1, 2000.

(b) In addition to any other cost of living increase provided under this chapter, the pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after December 31, 2008, to a member of the public employees' retirement fund (or to a survivor or beneficiary of a member of the public employees' retirement fund) who is a retired member of the fund with at least ten (10) years of creditable service may not be less than one hundred eighty dollars ($180).

(c) Subsection (b) does not apply to a member of the public employees' retirement fund (or to a survivor or beneficiary of a member of the public employees' retirement fund) whose creditable service was earned only as an elected official.

(d) The increases specified in this section:

(1) are based on the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.12-2008, SEC.1.

IC 5-10.2-5-43.4Teachers' retirement fund; benefit increase payable after December 31, 2008 Sec. 43.4. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable after December 31, 2008, to a member of the Indiana state teachers' retirement fund (or to a survivor or beneficiary of a member of the Indiana state teachers' retirement fund) who retired or was disabled:

(1) before July 2, 2000, shall be increased by two percent (2%); and

(2) after July 1, 2000, and before July 2, 2006, shall be increased by one percent (1%).

(b) The increases specified in this section:

(1) are based upon the date of the member's latest retirement or disability;

(2) do not apply to benefits payable in a lump sum; and

(3) are in addition to any other increase provided by law.

As added by P.L.124-2008, SEC.3.

IC 5-10.2-6Chapter 6. Construction of Codification

5-10.2-6-1Purpose 5-10.2-6-2Headings

IC 5-10.2-6-1Purpose Sec. 1. Purpose of Codification. This article is intended to be a codification and restatement of applicable or corresponding provisions in prior law. A citation to prior law in the Indiana Code shall be construed as a citation to the appropriate provision of this article if the prior law is reenacted in the same or restated form by this article.

As added by Acts 1977, P.L.53, SEC.2.

IC 5-10.2-6-2Headings Sec. 2. Headings. The headings prefixed to sections of this article are included for organizational purposes and do not affect the meaning, application, or construction of the sections.

As added by Acts 1977, P.L.53, SEC.2.

IC 5-10.2-7Chapter 7. RepealedRepealed by P.L.5-1997, SEC.15.

IC 5-10.2-8Chapter 8. Voluntary Supplemental Retirement Plan

5-10.2-8-1"Plan" defined 5-10.2-8-2Establishment 5-10.2-8-3Prohibition against commingling of assets 5-10.2-8-4Supplemental nature of plan; reduction in other retirement or pension benefits prohibited 5-10.2-8-5Day-to-day operation

IC 5-10.2-8-1"Plan" defined Sec. 1. As used in this chapter, "plan" refers to a voluntary supplemental retirement plan established for a political subdivision under this chapter.

As added by P.L.5-1997, SEC.3.

IC 5-10.2-8-2Establishment Sec. 2. The board may elect to establish a voluntary supplemental retirement plan for political subdivisions. A plan established under this chapter shall be governed by Section 457 of the Internal Revenue Code. A plan established under this chapter shall be funded through employee salary deductions and may additionally have employer contributions, subject to the limits and provisions under Section 457 of the Internal Revenue Code.

As added by P.L.5-1997, SEC.3. Amended by P.L.35-2012, SEC.48.

IC 5-10.2-8-3Prohibition against commingling of assets Sec. 3. The board shall maintain a separate trust for the plan, and the assets shall not be part of, or commingled with, the assets of the other funds administered by the board.

As added by P.L.5-1997, SEC.3.

IC 5-10.2-8-4Supplemental nature of plan; reduction in other retirement or pension benefits prohibited Sec. 4. A plan established under this chapter exists and serves in addition to other retirement, pension, and benefit systems established by a political subdivision and may not result in a reduction of any retirement, pension, or other benefit provided by applicable law. Any compensation deferred under the plan shall continue to be included as regular compensation for the purpose of computing the retirement and pension benefits earned by an employee.

As added by P.L.5-1997, SEC.3.

IC 5-10.2-8-5Day-to-day operation Sec. 5. A plan established under this chapter shall include appropriate provisions pertaining to the day-to-day operation of the plan, including methods to elect income deferrals, changes to elections, or other provisions that may be appropriate. The investment options shall be comparable to the alternative programs established under IC 5-10.2-2-3.

As added by P.L.5-1997, SEC.3.

IC 5-10.2-9Chapter 9. Sudan Divestment

5-10.2-9-0.3General assembly findings 5-10.2-9-1"Active business operations" 5-10.2-9-2"Board" 5-10.2-9-3"Business operations" 5-10.2-9-4"Company" 5-10.2-9-5"Complicit in Darfur genocide" 5-10.2-9-6"Cost of divestment" 5-10.2-9-7"Direct holdings" 5-10.2-9-8"Fund" 5-10.2-9-9"Government of Sudan" 5-10.2-9-10"Inactive business operations" 5-10.2-9-11"Indirect holdings" 5-10.2-9-12"Marginalized populations of Sudan" 5-10.2-9-13"Military equipment" 5-10.2-9-14"Mineral extraction activities" 5-10.2-9-15"Oil related activities" 5-10.2-9-16"Power production activities" 5-10.2-9-17"Research firm" 5-10.2-9-18"Scrutinized company" 5-10.2-9-19"Social development company" 5-10.2-9-20"Substantial action" 5-10.2-9-20.5"System" 5-10.2-9-21Identification of scrutinized companies 5-10.2-9-22Identification of holdings 5-10.2-9-23Notice to scrutinized company with inactive business operations 5-10.2-9-24Notice to scrutinized company with active business operations 5-10.2-9-25Compliance by a scrutinized company 5-10.2-9-26Divestment; exemption for certain commingled funds 5-10.2-9-27Acquisition of securities containing scrutinized companies 5-10.2-9-28Scrutinized company excluded from federal sanctions 5-10.2-9-29Exclusion of indirect holdings in actively managed investment funds 5-10.2-9-30Exclusion of private equity funds 5-10.2-9-31Report to legislative council 5-10.2-9-32Expiration of chapter 5-10.2-9-33Exemption from conflicting statutory or common law obligations 5-10.2-9-34Cessation of divestment and reinvestment in scrutinized companies 5-10.2-9-35Immunity; liability of the fund and its agents 5-10.2-9-36Severability

IC 5-10.2-9-0.3General assembly findings Sec. 0.3. The general assembly finds the following:

(1) Mandatory divestment by the funds of the funds' holdings in certain companies is a measure that should be employed only under extraordinary circumstances.

(2) The Congress and President of the United States have declared that genocide is occurring in the Darfur region of Sudan.

(3) The Sudan crisis represents the first time the government of the United States has labeled ongoing atrocities a genocide.

(4) The situation in Sudan is unique and constitutes the extraordinary circumstances necessary for mandatory divestment by the funds of the funds' holdings in scrutinized companies with active business operations in Sudan.

As added by P.L.220-2011, SEC.75.

IC 5-10.2-9-1"Active business operations" Sec. 1. As used in this chapter, "active business operations" means all business operations that are not inactive business operations.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-2"Board" Sec. 2. As used in this chapter, "board" refers to the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1.

As added by P.L.149-2007, SEC.3. Amended by P.L.23-2011, SEC.11.

IC 5-10.2-9-3"Business operations" Sec. 3. As used in this chapter, "business operations" means engaging in any commerce in any form in Sudan.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-4"Company" Sec. 4. (a) As used in this chapter, "company" means any of the following:

(1) A sole proprietorship.

(2) An organization.

(3) An association.

(4) A corporation.

(5) A partnership.

(6) A joint venture.

(7) A limited partnership.

(8) A limited liability partnership.

(9) A limited liability company.

(10) A business association.

(b) The term includes all wholly owned subsidiaries, majority owned subsidiaries, parent companies, and affiliates of such entities or business associations that exist for profit making purposes.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-5"Complicit in Darfur genocide" Sec. 5. For purposes of this chapter, a company is "complicit in the Darfur genocide" if the company took any actions during the preceding twenty (20) month period that directly support or promote the genocidal campaign in the Darfur region of Sudan, including any of the following:

(1) Preventing Darfur's victimized population from communicating with each other.

(2) Encouraging Sudanese citizens to speak out against an internationally approved security force in Darfur.

(3) Actively working to deny, cover up, or alter the record on human rights abuses in Darfur.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-6"Cost of divestment" Sec. 6. As used in this chapter, "cost of divestment" means the sum of the following:

(1) The costs associated with the sale, redemption, divestment, or withdrawal of an investment.

(2) The costs associated with the acquisition and maintenance of a replacement investment.

(3) A cost not described in subdivision (1) or (2) that is incurred by the fund (before July 1, 2011) or system in connection with a divestment transaction.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.49.

IC 5-10.2-9-7"Direct holdings" Sec. 7. As used in this chapter, "direct holdings" means all securities of a company held directly by the system on behalf of a fund or in an account in which the system on behalf of a fund owns all shares or interests.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.50.

IC 5-10.2-9-8"Fund" Sec. 8. As used in this chapter, "fund" refers to the following:

(1) The Indiana state teachers' retirement fund.

(2) The public employees' retirement fund.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-9"Government of Sudan" Sec. 9. (a) As used in this chapter, "government of Sudan" refers to the government in Khartoum, Sudan, that is led by the National Congress Party (formally known as the National Islamic Front) or any successor government formed on or after October 13, 2006, including the coalition National Unity Government agreed upon in the Comprehensive Peace Agreement for Sudan.

(b) The term does not include the regional government of southern Sudan.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-10"Inactive business operations" Sec. 10. As used in this chapter, "inactive business operations" means the mere continued holding or renewal of rights to property previously operated to generate revenues but not presently deployed for such purpose.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-11"Indirect holdings" Sec. 11. As used in this chapter, "indirect holdings" means all securities of a company:

(1) held in an account or a fund; and

(2) managed by one (1) or more persons not employed by the fund (before July 1, 2011) or system, in which the fund (before July 1, 2011) or system owns shares or interests on behalf of a fund together with other investors not subject to this chapter.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.51.

IC 5-10.2-9-12"Marginalized populations of Sudan" Sec. 12. As used in this chapter, "marginalized populations of Sudan" includes the following:

(1) The part of the population in the Darfur region that has been genocidally victimized.

(2) The part of the population of southern Sudan victimized by Sudan's north-south civil war.

(3) The Beja, Rashidiya, and other similarly underserved groups of eastern Sudan.

(4) The Nubian and other similarly underserved groups in Sudan's Abyei, southern Blue Nile, and Nuba mountain regions.

(5) The Amri, Hamadab, Manasir, and other similarly underserved groups of northern Sudan.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-13"Military equipment" Sec. 13. (a) As used in this chapter, "military equipment" means weapons, arms, or military defense supplies provided directly or indirectly to any force actively participating in the conflict in Sudan. The term includes any equipment that readily may be used for military purposes, including:

(1) radar systems; or

(2) military grade transport vehicles.

(b) The term does not include weapons, arms, or military defense supplies sold to peacekeeping forces that may be dispatched to Sudan by the United Nations or the African Union.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-14"Mineral extraction activities" Sec. 14. (a) As used in this chapter, "mineral extraction activities" means the exploration, extraction, processing, transporting, or wholesale sale of elemental minerals or associated metals or oxides, including:

(1) gold;

(2) copper;

(3) chromium;

(4) chromite;

(5) diamonds;

(6) iron;

(7) iron ore;

(8) silver;

(9) tungsten;

(10) uranium; and

(11) zinc.

(b) The term includes the facilitation of mineral extraction activities, including the provision of supplies or services in support of mineral extraction activities.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-15"Oil related activities" Sec. 15. (a) As used in this chapter, "oil related activities" includes:

(1) the export of oil;

(2) the extraction of or production of oil;

(3) the exploration for oil;

(4) the ownership of rights to oil blocks;

(5) the refining or processing of oil;

(6) the transportation of oil;

(7) the selling or trading of oil; or

(8) the construction or maintenance of a pipeline, a refinery, or another oil field infrastructure.

(b) The term includes the facilitation of oil related activities, including the provision of supplies or services in support of oil related activities. The mere retail sale of gasoline and related consumer products is not considered an oil related activity.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-16"Power production activities" Sec. 16. As used in this chapter, "power production activities" means any business operation that involves a project commissioned by the National Electricity Corporation of Sudan or other similar entity of the government of Sudan whose purpose is to facilitate power generation and delivery. The term includes the following:

(1) Establishing power generating plants or hydroelectric dams.

(2) Selling or installing components for power generating plants or hydroelectric dams.

(3) Providing service contracts related to the installation or maintenance of power generating plants or hydroelectric dams.

(4) Facilitating power production activities, including providing supplies or services in support of power production activities.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-17"Research firm" Sec. 17. As used in this chapter, "research firm" means a reputable, neutral third party research firm not controlled by the fund (before July 1, 2011) or system.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.52.

IC 5-10.2-9-18"Scrutinized company" Sec. 18. (a) As used in this chapter, "scrutinized company" means a company that meets any of the following criteria:

(1) Both of the following apply to the company:

(A) The company has business operations that involve contracts with or the provision of supplies or services to:

(i) the government of Sudan;

(ii) companies in which the government of Sudan has any direct or indirect equity share;

(iii) consortiums or projects commissioned by the government of Sudan; or

(iv) companies involved in consortiums or projects commissioned by the government of Sudan.

(B) Either:

(i) more than ten percent (10%) of the company's revenues or assets linked to Sudan involve oil related activities or mineral extraction activities, and less than seventy-five percent (75%) of the company's oil related or mineral extracting revenues or assets linked to Sudan involve contracts with the regional government of southern Sudan or a project or consortium created exclusively by the regional government, and the company has failed to take substantial action; or

(ii) more than ten percent (10%) of the company's revenues or assets linked to Sudan involve power production activities and less than seventy-five percent (75%) of the company's power production activities include projects that are intended to provide power or electricity to the marginalized populations of Sudan, and the company has failed to take substantial action.

(2) The company is complicit in the Darfur genocide.

(3) The company supplies military equipment within Sudan, unless the company implements safeguards to prevent the use of the equipment by forces actively participating in armed conflict in Sudan. This subdivision does not apply to companies involved in the sale of military equipment solely to the regional government of southern Sudan or any internationally recognized peacekeeping force or humanitarian organization.

(b) The term does not include a social development company that is not complicit in the Darfur genocide.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-19"Social development company" Sec. 19. As used in this chapter, "social development company" means a company whose primary purpose in Sudan is to provide humanitarian goods or services, including:

(1) medicine or medical equipment;

(2) agricultural supplies or infrastructure;

(3) educational opportunities;

(4) journalism related activities;

(5) information or informational materials;

(6) spiritual related activities;

(7) services that are clerical or reporting in nature;

(8) food;

(9) clothing; or

(10) general consumer goods that are unrelated to oil related activities, mineral extraction activities, or power production activities.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-20"Substantial action" Sec. 20. As used in this chapter, "substantial action" means:

(1) adopting, publicizing, and implementing a formal plan to cease scrutinized business operations within one (1) year and to refrain from any new business operations;

(2) undertaking significant humanitarian efforts on behalf of one (1) or more marginalized populations of Sudan; or

(3) materially improving conditions for the genocidally victimized population in Darfur through engagement with the government of Sudan.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-20.5"System" Sec. 20.5. As used in this chapter, "system" refers to the Indiana public retirement system established by IC 5-10.5-2-1.

As added by P.L.35-2012, SEC.53.

IC 5-10.2-9-21Identification of scrutinized companies Sec. 21. (a) Not later than March 30, 2008, the board shall make a good faith effort to identify all scrutinized companies in which a fund has direct or indirect holdings.

(b) In carrying out its responsibilities under subsection (a), and at the board's discretion, the board may use existing research or contract with a research firm.

(c) A board or a research firm with which the board contracts under subsection (b) may take any of the following actions:

(1) Review publicly available information regarding companies with business operations in Sudan.

(2) Contact other institutional investors that invest in companies with business operations in Sudan.

(3) Contact asset managers contracted by the fund that invest in companies with business operations in Sudan.

(d) Not later than the first meeting of the board after March 30, 2008, the board shall compile the names of all scrutinized companies into a scrutinized company list and indicate whether each scrutinized company has active or inactive business operations in Sudan.

(e) The board shall update its scrutinized company list at least on an annual basis based on evolving information from sources described in subsections (b) and (c).

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.54.

IC 5-10.2-9-22Identification of holdings Sec. 22. After the board creates or updates the scrutinized company list under section 21 of this chapter, the board shall immediately identify the companies on the scrutinized company list in which a fund has direct or indirect holdings.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.55.

IC 5-10.2-9-23Notice to scrutinized company with inactive business operations Sec. 23. (a) Each fund (before July 1, 2011) or the board shall send to each scrutinized company:

(1) that is identified under section 22 of this chapter as one in which a fund has direct or indirect holdings; and

(2) that has only inactive business operations;

a written notice concerning the contents of this chapter and a statement encouraging the company to continue to refrain from initiating active business operations in Sudan until the company is able to avoid scrutinized business operations altogether.

(b) The fund (before July 1, 2011) or board shall continue to correspond on a semiannual basis with scrutinized companies in which a fund has direct or indirect holdings and that have only inactive business operations.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.56.

IC 5-10.2-9-24Notice to scrutinized company with active business operations Sec. 24. (a) Each fund (before July 1, 2011) or the board shall send to each scrutinized company:

(1) that is identified under section 22 of this chapter as one in which a fund has direct or indirect holdings; and

(2) that has active business operations;

a written notice concerning the contents of this chapter and a statement indicating that a fund's holdings in the company may become subject to divestment by the fund (before July 1, 2011) or system.

(b) A notice sent under this section shall:

(1) offer the company the opportunity to clarify the company's Sudan related activities; and

(2) encourage the company, within ninety (90) days after the date of the written notice, to either:

(A) cease its scrutinized business operations; or

(B) convert the company's operations to inactive business operations in order to avoid divestment by the fund (before July 1, 2011) or system of a fund's holdings in the company.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.57.

IC 5-10.2-9-25Compliance by a scrutinized company Sec. 25. (a) If, within ninety (90) days after a fund's (before July 1, 2011) or the system's first engagement with a company under section 24 of this chapter, the company ceases scrutinized business operations, the company shall be removed from a fund's scrutinized company list and the provisions of sections 26, 27, 28, and 29 of this chapter shall cease to apply to the company unless the company resumes scrutinized business operations.

(b) If, within ninety (90) days after a fund (before July 1, 2011) or the system first engages with a company under section 24 of this chapter, the company converts its scrutinized active business operations to inactive business operations, the company shall be subject to the provisions of section 23 of this chapter.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.58.

IC 5-10.2-9-26Divestment; exemption for certain commingled funds Sec. 26. (a) Except as provided in sections 28 and 29 of this chapter, if, after ninety (90) days after a fund's (before July 1, 2011) or the system's first engagement with a company under section 24 of this chapter, the company continues to have scrutinized active business operations, the fund (before July 1, 2011) or system shall sell, redeem, divest, or withdraw all publicly traded securities of the company that are held by a fund, as follows:

(1) At least fifty percent (50%) of such assets shall be removed from a fund's assets under management within nine (9) months after the company's appearance on the scrutinized company list.

(2) One hundred percent (100%) of such assets shall be removed from a fund's assets under management within fifteen (15) months after the company's appearance on the scrutinized company list.

(b) If a company that ceased scrutinized active business operations following engagement under section 24 of this chapter resumes scrutinized active business operations, and only while the company continues to have active business operations, the company shall immediately be placed back on the scrutinized company list. If a fund has holdings in the company, the fund (before July 1, 2011) or the system shall sell, redeem, divest, or withdraw all publicly traded securities of the company as provided in subsection (a) based on the date the company is placed back on the scrutinized company list. The fund (before July 1, 2011) or the system shall send a written notice to the company indicating that the company was placed back on the scrutinized company list and is subject to divestment.

(c) The board is not required to divest a fund's holdings in a passively managed commingled fund that includes a scrutinized company with active business operations in Sudan if the estimated cost of divestment of the commingled fund is greater than ten percent (10%) of the total value of the scrutinized companies with active business operations held in the commingled fund. The board shall include any commingled fund that includes a scrutinized company that is exempted from divestment under this subsection in the board's report submitted to the legislative council under section 31 of this chapter.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.59.

IC 5-10.2-9-27Acquisition of securities containing scrutinized companies Sec. 27. Except as provided in sections 28 and 29 of this chapter, a fund (before July 1, 2011) or the system shall not acquire for a fund securities of companies on the scrutinized company list that have active business operations.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.60.

IC 5-10.2-9-28Scrutinized company excluded from federal sanctions Sec. 28. If the government of the United States affirmatively declares any company on the scrutinized company list with active business operations in Sudan to be excluded from any federal sanctions relating to Sudan, the company is not subject to divestment or investment prohibition under this chapter.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-29Exclusion of indirect holdings in actively managed investment funds Sec. 29. Notwithstanding any provision to the contrary, sections 26 and 27 of this chapter do not apply to indirect holdings in actively managed investment funds. However, if a fund has indirect holdings in actively managed investment funds containing the securities of scrutinized companies with active business operations, the fund (before July 1, 2011) or board shall submit letters to the managers of the investment funds requesting that the managers remove the scrutinized companies with active business operations from the fund or create a similar actively managed fund with indirect holdings without scrutinized companies with active business operations. If the manager creates a similar fund, the fund (before July 1, 2011) or board shall replace all applicable investments with investments in the similar fund in a period consistent with prudent investing standards.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.61.

IC 5-10.2-9-30Exclusion of private equity funds Sec. 30. This chapter does not apply to private equity funds.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-31Report to legislative council Sec. 31. (a) On or before November 1, 2007, and thereafter as directed by the legislative council, the board shall submit a report in an electronic format under IC 5-14-6 to the legislative council for distribution to the members of the general assembly.

(b) The report must include at least the following information, as of the date of the report:

(1) A copy of the scrutinized company list.

(2) A summary of correspondence with companies engaged by the fund (before July 1, 2011) or board under sections 23 and 24 of this chapter.

(3) All investments sold, redeemed, divested, or withdrawn in compliance with section 26 of this chapter.

(4) All commingled funds that are exempted from divestment under section 26 of this chapter.

(5) All prohibited investments under section 27 of this chapter.

(6) Any progress made under section 29 of this chapter.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.62.

IC 5-10.2-9-32Expiration of chapter Sec. 32. This chapter expires on the earliest of the following:

(1) Twelve (12) months after the date the government of Sudan halts the genocide in Darfur as determined by the Congress of the United States and the United States Department of State.

(2) The date the United States revokes its current sanctions against the government of Sudan.

(3) The date Congress or the President of the United States, through legislation or executive order, declares that mandatory divestment of the type provided for in this chapter interferes with the conduct of foreign policy for the United States.

(4) The date Congress or the President of the United States declares that the government of Sudan:

(A) has honored its commitments to cease attacks on civilians;

(B) demobilizes and demilitarizes the Janjaweed and associated militias;

(D) allows for the safe and voluntary return of refugees and international displaced persons.

As added by P.L.149-2007, SEC.3.

IC 5-10.2-9-33Exemption from conflicting statutory or common law obligations Sec. 33. With respect to actions taken in compliance with this chapter, including all good faith determinations regarding companies on the scrutinized company list, the fund (before July 1, 2011) or system shall be exempt from any conflicting statutory or common law obligations, including any obligations with respect to choice of asset managers, investment funds, or investments for fund securities portfolios.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.63.

IC 5-10.2-9-34Cessation of divestment and reinvestment in scrutinized companies Sec. 34. (a) Notwithstanding any provision to the contrary, the fund (before July 1, 2011) or system shall be permitted to cease divesting and to reinvest in certain scrutinized companies on the scrutinized company list with active business operations in Sudan if evidence shows that the value for all assets under management by the fund (before July 1, 2011) or the system on a fund's behalf becomes equal to or less than ninety-nine and five-tenths percent (99.5%) of the value of all assets under management by the fund (before July 1, 2011) or the system on a fund's behalf, including the companies divested under section 26 of this chapter.

(b) As provided by this section, any cessation of divestment or reinvestment shall be strictly limited to the minimum steps necessary to avoid the contingency set forth in subsection (a).

(c) For any cessation of divestment, reinvestment, and subsequent ongoing investment authorized by this section, the fund (before July 1, 2011) or board shall submit a report in an electronic format under IC 5-14-6 to the legislative council for distribution to the members of the general assembly in advance of any initial reinvestment. The report shall be updated annually thereafter as applicable, setting forth the reasons and justifications for the decision to cease divestment, reinvest, or remain invested with companies with scrutinized active business operations. This section does not apply to companies that have ceased to have scrutinized business operations.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.64.

IC 5-10.2-9-35Immunity; liability of the fund and its agents Sec. 35. (a) Both:

(1) the state and its officers, agents, and employees; and

(2) the fund (before July 1, 2011) or system and its board members, executive director, officers, agents, and employees;

are immune from civil liability for any act or omission related to the removal of an asset from a fund under this chapter.

(b) In addition to the immunity provided under subsection (a), both:

(1) the officers, agents, and employees of the state; and

(2) the board members, executive director, officers, agents, and employees of the fund (before July 1, 2011) or system;

are entitled to indemnification from the fund (before July 1, 2011) or system for all losses, costs, and expenses, including reasonable attorney's fees, associated with defending against any claim or suit relating to an act authorized under this chapter.

As added by P.L.149-2007, SEC.3. Amended by P.L.35-2012, SEC.65.

IC 5-10.2-9-36Severability Sec. 36. The provisions of this chapter are severable in the manner provided in IC 1-1-1-8(b).

As added by P.L.149-2007, SEC.3.

IC 5-10.2-10Chapter 10. Divestment From States That Sponsor Terror

5-10.2-10-0.3General assembly findings 5-10.2-10-1Requirements for mandatory divestment 5-10.2-10-2"Active business operations" 5-10.2-10-3"Board" 5-10.2-10-4"Business operations" 5-10.2-10-5"Company" 5-10.2-10-6"Cost of divestment" 5-10.2-10-7"Direct holdings" 5-10.2-10-8"Fund" 5-10.2-10-9"Inactive business operations" 5-10.2-10-10"Indirect holdings" 5-10.2-10-10.2"Military equipment" 5-10.2-10-10.4"Mineral extraction activities" 5-10.2-10-10.6"Oil related activities" 5-10.2-10-10.8"Power production activities" 5-10.2-10-11"Private market fund" 5-10.2-10-12"Scrutinized business operations" 5-10.2-10-13"Scrutinized company" 5-10.2-10-14"Social development company" 5-10.2-10-15"State sponsor of terror" 5-10.2-10-16"Substantial action" 5-10.2-10-16.5"System" 5-10.2-10-17Identification of scrutinized companies 5-10.2-10-18Identification of holdings 5-10.2-10-19Notice to scrutinized company with inactive business operations 5-10.2-10-20Notice to scrutinized company with active business operations 5-10.2-10-21Compliance by a scrutinized company 5-10.2-10-22Divestment; exemption for certain commingled funds 5-10.2-10-23Acquisition of securities containing scrutinized companies 5-10.2-10-24Scrutinized company excluded from federal sanctions 5-10.2-10-25Exclusion of indirect holdings in a private market fund 5-10.2-10-25.5Exclusion of indirect holdings in actively managed investment funds 5-10.2-10-26Report to legislative council 5-10.2-10-27Expiration of chapter 5-10.2-10-28Exemption from conflicting statutory or common law obligations 5-10.2-10-29Immunity; liability of the fund and its agents 5-10.2-10-30Severability

IC 5-10.2-10-0.3General assembly findings Sec. 0.3. The general assembly finds the following:

(1) Mandatory divestment by the funds of the funds' holdings in certain companies is a measure that should be employed only under extraordinary circumstances.

(2) States that are designated as a state sponsor of terror by the Secretary of State of the United States are providing military, financial, political, diplomatic, and organizational aid to known terrorist groups.

(3) Support for terrorism and the acquisition of weapons of mass destruction represent a grave threat to the security of the United States and to the citizens of Indiana.

(4) The threat from terrorism to the security of the United States and to the citizens of Indiana constitutes the extraordinary circumstances necessary for mandatory divestment by the funds of the funds' holdings in scrutinized companies with active business operations in a state sponsor of terror.

As added by P.L.220-2011, SEC.76.

IC 5-10.2-10-1Requirements for mandatory divestment Sec. 1. The requirements for mandatory divestment contained in this chapter are separate and distinct from the requirements for mandatory divestment contained in IC 5-10.2-9.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-2"Active business operations" Sec. 2. As used in this chapter, "active business operations" means all business operations that are not inactive business operations.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-3"Board" Sec. 3. As used in this chapter, "board" refers to the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1.

As added by P.L.67-2009, SEC.1. Amended by P.L.23-2011, SEC.12.

IC 5-10.2-10-4"Business operations" Sec. 4. As used in this chapter, "business operations" means engaging in any commerce in any form in a state that sponsors terror.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-5"Company" Sec. 5. (a) As used in this chapter, "company" means any of the following:

(1) A sole proprietorship.

(2) An organization.

(3) An association.

(4) A corporation.

(5) A partnership.

(6) A joint venture.

(7) A limited partnership.

(8) A limited liability partnership.

(9) A limited liability company.

(10) A business association.

(b) The term includes all wholly owned subsidiaries, majority owned subsidiaries, parent companies, and affiliates of such entities or business associations that exist for profit making purposes.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-6"Cost of divestment" Sec. 6. As used in this chapter, "cost of divestment" means the sum of the following:

(1) The costs associated with the sale, redemption, divestment, or withdrawal of an investment.

(2) The costs associated with the acquisition and maintenance of a replacement investment.

(3) A cost not described in subdivision (1) or (2) that is incurred by the fund (before July 1, 2011) or system in connection with a divestment transaction.

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.66.

IC 5-10.2-10-7"Direct holdings" Sec. 7. As used in this chapter, "direct holdings" means all securities of a company held directly by a fund (before July 1, 2011) or the system on behalf of a fund or in an account in which the fund (before July 1, 2011) or the system on behalf of the fund owns all shares or interests.

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.67.

IC 5-10.2-10-8"Fund" Sec. 8. As used in this chapter, "fund" refers to the following:

(1) The Indiana state teachers' retirement fund.

(2) The public employees' retirement fund.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-9"Inactive business operations" Sec. 9. As used in this chapter, "inactive business operations" means the mere continued holding or renewal of rights to property previously operated to generate revenues but not presently deployed for that purpose.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-10"Indirect holdings" Sec. 10. As used in this chapter, "indirect holdings" means all securities of a company that are:

(1) held in an account or a fund; and

(2) managed by one (1) or more persons:

(A) who are not employed by the fund (before July 1, 2011) or system; and

(B) in which the fund (before July 1, 2011) or the system on behalf of the fund owns shares or interests together with other investors not subject to this chapter.

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.68.

IC 5-10.2-10-10.2"Military equipment" Sec. 10.2. (a) As used in this chapter, "military equipment" means weapons, arms, or military defense supplies provided directly or indirectly to any force of a state sponsor of terror. The term includes any equipment that readily may be used for military purposes, including:

(1) radar systems; or

(2) military grade transport vehicles.

(b) The term does not include weapons, arms, or military defense supplies sold to peacekeeping forces that may be dispatched to a state sponsor of terror by the United Nations or the African Union.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-10.4"Mineral extraction activities" Sec. 10.4. (a) As used in this chapter, "mineral extraction activities" means the exploration, extraction, processing, transporting, or wholesale sale of elemental minerals or associated metals or oxides, including:

(1) gold;

(2) copper;

(3) chromium;

(4) chromite;

(5) diamonds;

(6) iron;

(7) iron ore;

(8) silver;

(9) tungsten;

(10) uranium; and

(11) zinc.

(b) The term includes the facilitation of mineral extraction activities, including the provision of supplies or services in support of mineral extraction activities.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-10.6"Oil related activities" Sec. 10.6. (a) As used in this chapter, "oil related activities" includes:

(1) the export of oil;

(2) the extraction of or production of oil;

(3) the exploration for oil;

(4) the ownership of rights to oil blocks;

(5) the refining or processing of oil;

(6) the transportation of oil;

(7) the selling or trading of oil; or

(8) the construction or maintenance of a pipeline, a refinery, or another oil field infrastructure.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-10.8"Power production activities" Sec. 10.8. As used in this chapter, "power production activities" means any business operation that involves a project commissioned by a state sponsor of terror whose purpose is to facilitate power generation and delivery. The term includes the following:

(1) Establishing power generating plants or hydroelectric dams.

(2) Selling or installing components for power generating plants or hydroelectric dams.

(3) Providing service contracts related to the installation or maintenance of power generating plants or hydroelectric dams.

(4) Facilitating power production activities, including providing supplies or services in support of power production activities.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-11"Private market fund" Sec. 11. As used in this chapter, "private market fund" means any:

(1) private equity fund;

(2) private equity fund of funds;

(3) venture capital fund;

(4) hedge fund;

(5) hedge fund of funds;

(6) real estate fund; or

(7) investment vehicle;

that is not publicly traded.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-12"Scrutinized business operations" Sec. 12. As used in this chapter, "scrutinized business operations" means business operations that have caused a company to become a scrutinized company.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-13"Scrutinized company" Sec. 13. (a) As used in this chapter, "scrutinized company" means a company that meets any of the following criteria:

(1) Both of the following apply to the company:

(A) The company has business operations that involve contracts with or the provision of supplies or services to:

(i) a state sponsor of terror;

(ii) companies in which a state sponsor of terror has any direct or indirect equity share;

(iii) consortiums or projects commissioned by a state sponsor of terror; or

(iv) companies involved in consortiums or projects commissioned by a state sponsor of terror.

(B) Either:

(i) more than ten percent (10%) of the company's revenues or assets is linked to a state sponsor of terror involve oil related activities or mineral extraction activities; or

(ii) more than ten percent (10%) of the company's revenues or assets is linked to a state sponsor of terror involve power production activities.

(2) The company supplies military equipment to a state sponsor of terror, unless the company implements safeguards to prevent the use of the equipment by forces actively participating in an armed conflict in a state sponsor of terror. This subdivision does not apply to companies involved in the sale of military equipment solely to any internationally recognized peacekeeping force or humanitarian organization.

(b) The term does not include a social development company.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-14"Social development company" Sec. 14. (a) As used in this chapter, "social development company" means a company that is:

(1) licensed by the United States Department of Treasury under the Federal Trade Sanction Reform and Export Enhancement Act of 2000 (P.L. 106-387); or

(2) lawfully operating under the laws of another country whose primary purpose in a state sponsor of terror is to provide humanitarian goods or services.

(b) A company described in subsection (a)(2) includes a company whose primary purpose is to provide:

(1) food;

(2) medicine or medical equipment;

(3) agricultural supplies or infrastructure;

(4) educational opportunities;

(5) journalism related activities;

(6) spiritual related activities or materials;

(7) information or information materials;

(8) general consumer goods; or

(9) services of a purely clerical or reporting nature;

to aid the inhabitants of a state sponsor of terror.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-15"State sponsor of terror" Sec. 15. As used in this chapter, "state sponsor of terror" means a country determined by the Secretary of State of the United States to have repeatedly provided support for acts of international terrorism.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-16"Substantial action" Sec. 16. As used in this chapter, "substantial action" means adopting, publicizing, and implementing a formal plan to cease scrutinized business operations within one (1) year and to refrain from any new business operations.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-16.5"System" Sec. 16.5. As used in this chapter, "system" refers to the Indiana public retirement system established by IC 5-10.5-2-1.

As added by P.L.35-2012, SEC.69.

IC 5-10.2-10-17Identification of scrutinized companies Sec. 17. (a) Not later than March 30, 2010, the board shall make a good faith effort to identify all scrutinized companies in which a fund has direct or indirect holdings.

(b) In carrying out its responsibilities under subsection (a), the board may use existing research or contract with a research firm.

(c) A board or a research firm with which the board contracts under subsection (b) may take any of the following actions:

(1) Review publicly available information regarding companies with business operations in states that sponsor terror.

(2) Contact other institutional investors that have divested from or invest in companies with business operations in states that sponsor terror.

(3) Contact asset managers that are contracted by the fund and that invest in companies with business operations in states that sponsor terror.

(d) Not later than the first meeting of the board after March 30, 2010, the board shall compile the names of all scrutinized companies into a scrutinized company list and indicate whether each scrutinized company has active or inactive business operations in a state sponsor of terror.

(e) The board shall update its scrutinized company list at least on an annual basis based on evolving information from sources described in subsections (b) and (c).

(f) If the Secretary of State of the United States determines that a country is a state sponsor of terror after June 30, 2009, the board shall add any additional scrutinized company resulting from the Secretary of State's determination when the board updates its scrutinized company list under subsection (e).

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.70.

IC 5-10.2-10-18Identification of holdings Sec. 18. After the board creates or updates the scrutinized company list under section 17 of this chapter, the board shall immediately identify the companies on the scrutinized company list in which a fund has direct or indirect holdings.

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.71.

IC 5-10.2-10-19Notice to scrutinized company with inactive business operations Sec. 19. (a) Each fund (before July 1, 2011) or the board shall send to each scrutinized company:

(1) that is identified under section 18 of this chapter as one in which a fund has direct or indirect holdings; and

(2) that has only inactive business operations;

a written notice concerning the provisions of this chapter and a statement encouraging the company to continue to refrain from initiating active business operations in a state sponsor of terror until the company is able to avoid scrutinized business operations altogether.

(b) Each fund (before July 1, 2011) or the board shall continue to correspond on a semiannual basis with scrutinized companies:

(1) in which a fund has direct or indirect holdings; and

(2) that have only inactive business operations.

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.72.

IC 5-10.2-10-20Notice to scrutinized company with active business operations Sec. 20. (a) Each fund (before July 1, 2011) or the board shall send to each scrutinized company:

(1) that is identified under section 18 of this chapter as one in which a fund has direct or indirect holdings; and

(2) that has active business operations;

a written notice concerning the contents of this chapter and a statement indicating that a fund's holdings in the company may become subject to divestment by the fund (before July 1, 2011) or system.

(b) A notice sent under this section must:

(1) offer the company the opportunity to clarify the company's state sponsor of terror related activities; and

(2) encourage the company to:

(A) cease its scrutinized business operations; or

(B) convert the company's operations to inactive business operations in order to avoid divestment by the fund (before July 1, 2011) or system of a fund's holdings in the company;

not later than one hundred eighty (180) days after the date of the notice.

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.73.

IC 5-10.2-10-21Compliance by a scrutinized company Sec. 21. (a) If, within one hundred eighty (180) days after a fund (before July 1, 2011) or the system first sends written notice to a company under section 20 of this chapter, the company ceases scrutinized business operations, the company shall be removed from a fund's scrutinized company list, and sections 22, 23, 24, and 25 of this chapter do not apply to the company unless the company resumes scrutinized business operations.

(b) If, within one hundred eighty (180) days after a fund (before July 1, 2011) or the system first sends written notice to a company under section 20 of this chapter, the company converts its scrutinized active business operations to inactive business operations, the company is subject to section 19 of this chapter.

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.74.

IC 5-10.2-10-22Divestment; exemption for certain commingled funds Sec. 22. (a) Except as provided in sections 24 and 25 of this chapter, if a company continues to have scrutinized active business operations one hundred eighty (180) days after a fund (before July 1, 2011) or the system first sends written notice to the company under section 20 of this chapter, the fund shall sell, redeem, divest, or withdraw all publicly traded securities of the company that are held by a fund, as follows:

(1) At least fifty percent (50%) of the securities shall be removed from a fund's assets under management within three (3) years after the company's appearance on the scrutinized company list.

(2) At least seventy-five percent (75%) of the securities shall be removed from a fund's assets under management within four (4) years after the company's appearance on the scrutinized company list.

(3) One hundred percent (100%) of the securities shall be removed from a fund's assets under management within five (5) years after the company's appearance on the scrutinized company list.

(b) If a company that ceased scrutinized active business operations following engagement under section 20 of this chapter resumes scrutinized active business operations, the company shall immediately be placed on the scrutinized company list and shall remain on the scrutinized company list while the company continues to have active business operations. If a fund has holdings in the company, the fund (before July 1, 2011) or the system shall send a written notice to the company as described in section 20 of this chapter indicating that the company has been placed on the scrutinized company list and is subject to divestment. The fund (before July 1, 2011) or system shall sell, redeem, divest, or withdraw all publicly traded securities of the company as provided in subsection (a) based on the date the company is placed back on the scrutinized company list.

(c) The board is not required to divest the board's holdings in a passively managed commingled fund that includes a scrutinized company with active business operations in a state sponsor of terror if the estimated cost of divestment of the commingled fund is greater than ten percent (10%) of the total value of the scrutinized companies with active business operations held in the commingled fund. The board shall include any commingled fund that includes a scrutinized company that is exempted from divestment under this subsection in the board's report submitted to the legislative council under section 26 of this chapter.

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.75.

IC 5-10.2-10-23Acquisition of securities containing scrutinized companies Sec. 23. Except as provided in sections 24 and 25 of this chapter:

(1) before July 1, 2011, a fund shall not acquire; and

(2) after June 30, 2011, the system shall not acquire for a fund;

securities of companies on the scrutinized company list that have active business operations.

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.76.

IC 5-10.2-10-24Scrutinized company excluded from federal sanctions Sec. 24. If the government of the United States declares that a company on the scrutinized company list with active business operations in a state sponsor of terror is excluded from any federal sanctions relating to a state sponsor of terror, the company is not subject to divestment or investment prohibition under this chapter.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-25Exclusion of indirect holdings in a private market fund Sec. 25. Notwithstanding any provision to the contrary, sections 22 and 23 of this chapter do not apply to indirect holdings in a private market fund that includes a scrutinized company with active business operations in a state sponsor of terror.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-25.5Exclusion of indirect holdings in actively managed investment funds Sec. 25.5. Notwithstanding any provision to the contrary, sections 22 and 23 of this chapter do not apply to indirect holdings in actively managed investment funds. However, if a fund has indirect holdings in actively managed investment funds containing the securities of scrutinized companies with active business operations, the fund (before July 1, 2011) or board shall submit letters to the managers of the investment funds requesting that the managers remove the scrutinized companies with active business operations from the fund or create a similar actively managed fund with indirect holdings without scrutinized companies with active business operations. If the manager creates a similar fund, the fund (before July 1, 2011) or board shall replace all applicable investments with investments in the similar fund in a period consistent with prudent investing standards.

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.77.

IC 5-10.2-10-26Report to legislative council Sec. 26. (a) On or before November 1, 2010, and thereafter as directed by the legislative council, the board shall submit a report in an electronic format under IC 5-14-6 to the legislative council. Notwithstanding IC 5-14-6-4(b)(2), the submission of a report under this subsection to the executive director of the legislative services agency fulfills the board's requirement to send a copy of the report to each member of the general assembly using the member's senate or house of representatives electronic mail address.

(b) A report submitted by the board under this section must include at least the following information, as of the date of the report:

(1) A copy of the fund's scrutinized company list.

(2) A summary of correspondence between the board and companies under sections 19 and 20 of this chapter.

(3) All investments sold, redeemed, divested, or withdrawn by the board in compliance with section 22 of this chapter.

(4) All commingled funds that are exempted from divestment under section 22 of this chapter.

(5) All companies whose securities the system is prohibited from acquiring under section 23 of this chapter.

(6) Any progress made under section 21 of this chapter.

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.78.

IC 5-10.2-10-27Expiration of chapter Sec. 27. The provisions of this chapter regarding any country determined to be a state sponsor of terror cease to apply to that country on the earlier of the following:

(1) The date the Secretary of State of the United States removes the country from its official list of state sponsors of terrorism.

(2) The date Congress or the President of the United States, through legislation or executive order, declares that mandatory divestment of the type provided for in this chapter interferes with the conduct of foreign policy of the United States.

As added by P.L.67-2009, SEC.1.

IC 5-10.2-10-28Exemption from conflicting statutory or common law obligations Sec. 28. With respect to actions taken in compliance with this chapter, including all good faith determinations regarding companies on the scrutinized company list, a fund (before July 1, 2011) or the system is exempt from any conflicting statutory or common law obligations, including any obligations with respect to choice of asset managers, investment funds, or investments for fund securities portfolios.

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.79.

IC 5-10.2-10-29Immunity; liability of the fund and its agents Sec. 29. (a) Both:

(1) the state and its officers, agents, and employees; and

(2) each fund (before July 1, 2011) or the system and its board members, executive director, officers, agents, and employees;

are immune from civil liability for any act or omission related to the removal of an asset from a fund under this chapter.

(b) In addition to the immunity provided under subsection (a), both:

(1) the officers, agents, and employees of the state; and

(2) the board members, executive director, officers, agents, and employees of a fund (before July 1, 2011) or the system;

are entitled to indemnification from the fund for all losses, costs, and expenses, including reasonable attorney's fees, associated with defending against any claim or suit relating to an act authorized under this chapter.

As added by P.L.67-2009, SEC.1. Amended by P.L.35-2012, SEC.80.

IC 5-10.2-10-30Severability Sec. 30. The provisions of this chapter are severable in the manner provided in IC 1-1-1-8(b).

As added by P.L.67-2009, SEC.1.

IC 5-10.2-11Chapter 11. Divestment Related to Boycott of, Divestment from, or Sanctions of Israel

5-10.2-11-1General assembly findings 5-10.2-11-2"Board" 5-10.2-11-3"Boycott, divest from, or sanction Israel activity" 5-10.2-11-4"Business" 5-10.2-11-5"Cost of divestment" 5-10.2-11-6"Direct holdings" 5-10.2-11-7"Fund" 5-10.2-11-8"Indirect holdings" 5-10.2-11-9"Research firm" 5-10.2-11-10"Restricted business" 5-10.2-11-11"System" 5-10.2-11-12Identification of restricted businesses 5-10.2-11-13Identification of holdings 5-10.2-11-14Notice to restricted businesses concerning possible divestment 5-10.2-11-15Compliance by restricted business 5-10.2-11-16Divestment; exemption for certain passively managed comingled funds 5-10.2-11-17Acquisition of securities of businesses on restricted business list 5-10.2-11-18Restricted business excluded from federal sanctions 5-10.2-11-19Exclusion of indirect holdings in actively managed investment funds 5-10.2-11-20Investment in private equity partnership 5-10.2-11-21Report to general assembly 5-10.2-11-22Expiration of chapter 5-10.2-11-23Exemption from conflicting statutory or common law obligations 5-10.2-11-24Cessation of divestment and reinvestment in restricted businesses; report to general assembly 5-10.2-11-25Immunity; indemnification of the fund and its agents 5-10.2-11-26Severability

IC 5-10.2-11-1General assembly findings Sec. 1. The general assembly finds the following:

(1) Mandatory divestment by the system of the system's holdings in certain companies is a measure that should be employed only under extraordinary circumstances.

(2) The Jewish state of Israel is the only democracy in the Middle East.

(3) By virtue of shared values and interests, the Jewish state of Israel is the strongest ally of the United States in the Middle East.

(4) The fundamental principles of the United States are offended by attempts to:

(A) delegitimize Israel's existence;

(B) demonize the Jewish state; or

through an international campaign to boycott, divest from, or sanction Israel.

(5) Efforts to promote an international campaign to boycott, divest from, or sanction Israel:

(A) increasingly occur on college and university campuses nationwide, leading to a climate of intimidation, fear, and violence on campuses in Indiana;

(B) disproportionately harm thousands of Palestinian workers employed by Israeli owned firms; and

(C) are antithetical and deeply damaging to the cause of peace, justice, equality, democracy, and human rights for all people in the Middle East.

(6) The federal Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (P.L.114-26, Sections 102(b)(20) and 103(b)) specifies principal negotiating objectives regarding commercial partnerships of the United States in negotiation of a transatlantic trade and investment partnership agreement, as follows:

(A) To discourage actions by potential trading partners that prejudice or discourage commercial activity solely between the United States and Israel.

(B) To discourage politically motivated actions to boycott, divest from, or sanction Israel.

(C) To seek elimination of politically motivated nontariff barriers on Israeli goods, services, or other commerce imposed on the Jewish state of Israel.

(D) To seek elimination of state sponsored unsanctioned foreign actions to boycott, divest from, or sanction Israel or compliance with the Arab League boycott of Israel by prospective trading partners.

(As used in this subdivision, "actions to boycott, divest from, or sanction Israel" has the meaning set forth in P.L.114-26, Section 102(b)(20)(B).)

(7) The situation with respect to promotion of activities to boycott, divest from, or sanction Israel is unique and constitutes the extraordinary circumstances necessary for mandatory divestment by the system of the system's holdings in restricted businesses.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-2"Board" Sec. 2. As used in this chapter, "board" refers to the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-3"Boycott, divest from, or sanction Israel activity" Sec. 3. Except as provided in section 1(6) of this chapter, as used in this chapter, "boycott, divest from, or sanction Israel activity" means action or inaction that:

(1) furthers;

(2) coordinates with; or

(3) acquiesces in;

an effort by another person to penalize, inflict economic harm on, or otherwise limit commercial relations with the Jewish state of Israel or businesses that are based in the Jewish state of Israel or territories controlled by the Jewish state of Israel. "Boycott, divest from, or sanction Israel" has a corresponding meaning.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-4"Business" Sec. 4. (a) As used in this chapter, "business" means any of the following that exist for profit making purposes:

(1) A sole proprietorship.

(2) An organization.

(3) An association.

(4) A corporation.

(5) A partnership.

(6) A joint venture.

(7) A limited partnership.

(8) A limited liability partnership.

(9) A limited liability company.

(10) A business association.

(b) The term includes all wholly owned subsidiaries, majority owned subsidiaries, parent businesses, and affiliates of such entities or business associations that exist for profit making purposes.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-5"Cost of divestment" Sec. 5. As used in this chapter, "cost of divestment" means the sum of the following:

(1) The costs associated with the sale, redemption, divestment, or withdrawal of an investment.

(2) The costs associated with the acquisition and maintenance of a replacement investment.

(3) A cost not described in subdivision (1) or (2) that is incurred by the system in connection with a divestment transaction.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-6"Direct holdings" Sec. 6. As used in this chapter, "direct holdings" means all securities of a business held directly by the system on behalf of a fund or in an account in which the system on behalf of a fund owns all shares or interests.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-7"Fund" Sec. 7. As used in this chapter, "fund" refers to the following:

(1) The Indiana state teachers' retirement fund.

(2) The public employees' retirement fund.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-8"Indirect holdings" Sec. 8. As used in this chapter, "indirect holdings" means all securities of a business:

(1) held in an account or a fund; and

(2) managed by one (1) or more persons not employed by the system, in which the system owns shares or interests on behalf of a fund together with other investors not subject to this chapter.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-9"Research firm" Sec. 9. As used in this chapter, "research firm" means a reputable, neutral third party research firm not controlled by the system.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-10"Restricted business" Sec. 10. As used in this chapter, "restricted business" means a business that engages in boycott, divest from, or sanction Israel activity.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-11"System" Sec. 11. As used in this chapter, "system" refers to the Indiana public retirement system established by IC 5-10.5-2-1.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-12Identification of restricted businesses Sec. 12. (a) Not later than January 31, 2017, the board shall make a good faith effort to identify all restricted businesses in which a fund has direct or indirect holdings.

(b) In carrying out its responsibilities under subsection (a), and at the board's discretion, the board may use existing research or contract with a research firm.

(c) The board or a research firm with which the board contracts under subsection (b) may take any of the following actions to determine a business's connections with respect to boycott, divest from, or sanction Israel activity:

(1) Review publicly available information regarding businesses.

(2) Contact other institutional investors that invest in businesses.

(3) Contact asset managers that invest in businesses and are contracted by a fund.

(d) Not later than the first meeting of the board after January 31, 2017, the board shall compile the names of all restricted businesses into a restricted business list.

(e) The board shall update the restricted business list at least on an annual basis based on evolving information from sources described in subsections (b) and (c).

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-13Identification of holdings Sec. 13. After the board creates or updates the restricted business list under section 12 of this chapter, the board shall immediately identify the businesses on the restricted business list in which a fund has direct or indirect holdings.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-14Notice to restricted businesses concerning possible divestment Sec. 14. (a) The board shall send to each restricted business that is identified under section 13 of this chapter as a business in which a fund has direct or indirect holdings a written notice concerning the contents of this chapter and a statement indicating that the fund's holdings in the business may become subject to divestment by the system.

(b) A notice sent under this section must:

(1) offer the business the opportunity to clarify the business's boycott, divest from, or sanction Israel activity; and

(2) encourage the business, within ninety (90) days after the date of the written notice, to cease its boycott, divest from, or sanction Israel activity to avoid divestment by the system of the fund's holdings in the business.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-15Compliance by restricted business Sec. 15. If, within ninety (90) days after the system's first engagement with a business under section 14 of this chapter, the business ceases boycott, divest from, or sanction Israel activity, the business shall be removed from the restricted business list and sections 16, 17, 18, and 19 of this chapter cease to apply to the business unless the business resumes boycott, divest from, or sanction Israel activity.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-16Divestment; exemption for certain passively managed comingled funds Sec. 16. (a) Except as provided in sections 18 and 19 of this chapter, if, after ninety (90) days after the system's first engagement with a business under section 14 of this chapter, the business continues to engage in boycott, divest from, or sanction Israel activity, the system shall sell, redeem, divest, or withdraw all publicly traded securities of the business that are held by a fund, as follows:

(1) At least fifty percent (50%) of such assets shall be removed from a fund's assets under management within nine (9) months after the business's appearance on the restricted business list.

(2) One hundred percent (100%) of such assets shall be removed from a fund's assets under management within fifteen (15) months after the business's appearance on the restricted business list.

(b) If a business that ceased boycott, divest from, or sanction Israel activity following engagement under section 14 of this chapter resumes boycott, divest from, or sanction Israel activity, the business shall be placed immediately back on the restricted business list. If a fund has holdings in the business, the system shall sell, redeem, divest, or withdraw all publicly traded securities of the business as provided in subsection (a) based on the date the business is placed back on the restricted business list. The system shall send a written notice to the business indicating that the business was placed back on the restricted business list and is subject to divestment.

(c) The board is not required to divest a fund's holdings in a passively managed commingled fund that includes a restricted business engaging in boycott, divest from, or sanction Israel activity if the estimated cost of divestment of the commingled fund is greater than ten percent (10%) of the total value of the restricted businesses held in the commingled fund. The board shall include any commingled fund that includes a restricted business that is exempted from divestment under this subsection in the board's report submitted to the legislative council under section 21 of this chapter.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-17Acquisition of securities of businesses on restricted business list Sec. 17. Except as provided in sections 18 and 19 of this chapter, the system shall not acquire for a fund securities of businesses on the restricted business list.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-18Restricted business excluded from federal sanctions Sec. 18. If the United States government affirmatively declares any business on the restricted business list to be excluded from any federal sanctions related to boycott, divest from, or sanction Israel activity, the business is not subject to divestment or investment prohibition under this chapter.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-19Exclusion of indirect holdings in actively managed investment funds Sec. 19. Notwithstanding any provision to the contrary, sections 16 and 17 of this chapter do not apply to indirect holdings in actively managed investment funds. However, if a fund has indirect holdings in an actively managed investment fund containing the securities of restricted businesses, the board shall submit letters to the managers of the actively managed investment fund requesting that the managers remove the restricted businesses from the actively managed investment fund or create a similar actively managed investment fund with indirect holdings without restricted businesses. If the managers create a similar actively managed investment fund, the board shall replace all applicable investments with investments in the similar actively managed investment fund in a period consistent with prudent investing standards.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-20Investment in private equity partnership Sec. 20. This chapter does not apply directly to private equity funds. However, the board shall ensure that reasonable efforts are made during the due diligence process before an investment is made in a private equity partnership to determine whether any investments by the private equity general partner on behalf of the private equity partnership include a restricted business.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-21Report to general assembly Sec. 21. (a) On or before November 1, 2017, and thereafter as directed by the legislative council, the board shall submit a report in an electronic format under IC 5-14-6 to the executive director of the legislative services agency for distribution to the members of the general assembly.

(b) The report must include at least the following information, as of the date of the report:

(1) A copy of the restricted business list.

(2) A summary of correspondence with businesses engaged by the board under section 14 of this chapter.

(3) All publicly traded securities sold, redeemed, divested, or withdrawn in compliance with section 16 of this chapter.

(4) All commingled funds that are exempted from divestment under section 16 of this chapter.

(5) All prohibited securities under section 17 of this chapter.

(6) Any progress made under section 19 of this chapter.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-22Expiration of chapter Sec. 22. This chapter expires on the earliest of the following:

(1) Twelve (12) months after the date on which boycott, divest from, or sanction Israel activity ceases.

(2) The date on which the United States government revokes any sanctions imposed on persons engaged in boycott, divest from, or sanction Israel activity.

(3) The date on which Congress or the President of the United States, through legislation or executive order, declares that mandatory divestment of the type provided for in this chapter interferes with the conduct of foreign policy of the United States.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-23Exemption from conflicting statutory or common law obligations Sec. 23. With respect to actions taken in compliance with this chapter, including all good faith determinations regarding businesses on the restricted business list, the system shall be exempt from any conflicting statutory or common law obligations, including any obligations with respect to choice of asset managers, investment funds, or investments for fund securities portfolios.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-24Cessation of divestment and reinvestment in restricted businesses; report to general assembly Sec. 24. (a) Notwithstanding any provision to the contrary, the system is permitted to cease divesting and to reinvest in certain restricted businesses on the restricted business list if evidence shows that the value for all assets under management by the system on a fund's behalf becomes equal to or less than ninety-nine and five-tenths percent (99.5%) of the value of all assets under management by the system on a fund's behalf, including the businesses divested under section 16 of this chapter.

(b) As provided by this section, any cessation of divestment or reinvestment shall be strictly limited to the minimum steps necessary to avoid the contingency set forth in subsection (a).

(c) For any cessation of divestment, reinvestment, and subsequent ongoing investment authorized by this section, the board shall submit a report in an electronic format under IC 5-14-6 to the executive director of the legislative services agency for distribution to the members of the general assembly before any initial reinvestment. The report shall be updated annually thereafter as applicable, setting forth the reasons and justifications for the decision to cease divestment, reinvest, or remain invested with businesses engaged in boycott, divest from, or sanction Israel activity. This section does not apply to businesses that have ceased to engage in boycott, divest from, or sanction Israel activity.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-25Immunity; indemnification of the fund and its agents Sec. 25. (a) Both:

(1) the state and officers, agents, and employees of the state; and

(2) the system and the board members, executive director, officers, agents, and employees of the system;

are immune from civil liability for any act or omission related to the removal of an asset from a fund under this chapter.

(b) In addition to the immunity provided under subsection (a), both:

(1) the officers, agents, and employees of the state; and

(2) the board members, executive director, officers, agents, and employees of the system;

are entitled to indemnification from the system for all losses, costs, and expenses, including reasonable attorney's fees, associated with defending against any claim or suit relating to an act authorized under this chapter.

As added by P.L.177-2016, SEC.1.

IC 5-10.2-11-26Severability Sec. 26. The provisions of this chapter are severable in the manner provided under IC 1-1-1-8(b).

As added by P.L.177-2016, SEC.1.

IC 5-10.2-12Chapter 12. Supplemental Allowance Reserve Accounts

5-10.2-12-1Applicability 5-10.2-12-2Uses of money in a supplemental allowance reserve account 5-10.2-12-3Contribution rate surcharge 5-10.2-12-4Supplemental allowance reserve account; actuarial report; grants of postretirement benefits

IC 5-10.2-12-1Applicability Sec. 1. This chapter applies to the supplemental allowance reserve accounts established under the following:

(1) IC 2-3.5-3-2(c) (for the legislators' defined benefit plan).

(2) IC 5-10-5.5-4(c) (for the state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement plan).

(3) IC 5-10.2-2-2(a)(3) (for the public employees' retirement fund).

(4) IC 5-10.2-2-2(c)(3) (for the Indiana state teachers' retirement fund).

As added by P.L.127-2018, SEC.9.

IC 5-10.2-12-2Uses of money in a supplemental allowance reserve account Sec. 2. All amounts in a supplemental allowance reserve account of a fund or plan are available to the board to pay a postretirement benefit increase, thirteenth check, or other benefit change or adjustment granted by the general assembly after June 30, 2018, to members of or participants in that fund or plan.

As added by P.L.127-2018, SEC.9.

IC 5-10.2-12-3Contribution rate surcharge Sec. 3. (a) For 2019 and each year thereafter, the contribution rate established by the board for each employer shall include a surcharge determined by the board that is paid to the supplemental allowance reserve account of the applicable fund or plan. The board shall determine an equivalent amount to be included in the general fund appropriations for the supplemental allowance reserve accounts of the legislators' defined benefit plan and, subject to IC 5-10.4-2-5, the pre-1996 account of the Indiana state teachers' retirement fund.

(b) The surcharge described in subsection (a) shall be paid in the same manner as other employer contributions required under IC 5-10-5.5-4, IC 5-10.2-2-12.5, IC 5-10.3-7-12.5, and IC 5-10.4-7-6.

As added by P.L.127-2018, SEC.9. Amended by P.L.129-2024, SEC.3.

IC 5-10.2-12-4Supplemental allowance reserve account; actuarial report; grants of postretirement benefits Sec. 4. (a) In each even-numbered calendar year, beginning in 2018, the board shall present to the interim study committee on pension management oversight (established by IC 2-5-1.3-4) an actuarial report concerning the status of each supplemental allowance reserve account.

(b) The general assembly may grant a postretirement benefit increase, thirteenth check, or other benefit change or adjustment for members of or participants in a fund or plan listed in section 1 of this chapter only:

(1) in an odd-numbered calendar year; and

(2) if the postretirement benefit increase, thirteenth check, or other benefit change or adjustment:

(A) may be funded from the uncommitted balance in the supplemental allowance reserve account of the particular fund or plan; and

(B) may be paid in the same amount or percentage, or by using the same formula or computation method, to members of or participants in each of the funds and plans listed in section 1 of this chapter.

As added by P.L.127-2018, SEC.9.

IC 5-10.2-13Chapter 13. Divestment From Chinese Companies

5-10.2-13-1General assembly findings 5-10.2-13-2"Board" 5-10.2-13-3"Control" 5-10.2-13-4"Divest" 5-10.2-13-5"Fund" 5-10.2-13-6"Investment" 5-10.2-13-7"Person" 5-10.2-13-8"Restricted entity" 5-10.2-13-9"Restricted investment product" 5-10.2-13-10"System" 5-10.2-13-11Prohibition on investment in restricted entities 5-10.2-13-12Identification of restricted entities 5-10.2-13-13Divestment 5-10.2-13-14Cessation or deferral of divestment 5-10.2-13-15Report 5-10.2-13-16Exemption from conflicting statutory or common law obligations 5-10.2-13-17Immunity; indemnification of the fund and its agents 5-10.2-13-18Exclusions; investment in similar actively managed investment fund 5-10.2-13-19Severability

IC 5-10.2-13-1General assembly findings Sec. 1. The general assembly finds the following:

(1) Mandatory divestment by the system of fund holdings in entities and investment products is a measure that should be employed only under extraordinary circumstances.

(2) The People's Republic of China has both the motivation and capability to interfere with and impose economic, political, or military harm on the United States and its people.

(3) Economic support for and investment in Chinese entities unnecessarily increase the risk to the security and welfare of the United States and the people of Indiana.

(4) The threat from these entities constitutes the extraordinary circumstances necessary for mandatory divestment by the system of the fund holdings in restricted entities and restricted investment products.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-2"Board" Sec. 2. As used in this chapter, "board" refers to the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-3"Control" Sec. 3. As used in this chapter, "control" means the following:

(1) Control as defined in the Investment Company Act of 1940 (15 U.S.C. 80a–2(a)).

(2) Involvement in an entity's governance structure, monitoring, or internal human resources decisions of an entity consistent with the objectives set out in the Opinion on Strengthening the United Front Work of the Private Economy in the New Era issued by the General Office of the Central Committee of the Chinese Communist Party (2020) or a successor or similar document.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-4"Divest" Sec. 4. As used in this chapter, "divest" means a sale, redemption, replacement, or any other activity that terminates the investment.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-5"Fund" Sec. 5. As used in this chapter, "fund" refers to any public pension and retirement funds of the system (as defined in IC 5-10.5-1-5).

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-6"Investment" Sec. 6. As used in this chapter, "investment" refers to any investment that the board or system is authorized to make under IC 5-10.5-5 or another law.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-7"Person" Sec. 7. As used in this chapter, "person" means an individual or entity.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-8"Restricted entity" Sec. 8. As used in this chapter, "restricted entity" refers to the following, including wholly owned subsidiaries, majority owned subsidiaries, parent companies, and affiliates that exist for profit-making purposes:

(1) Any person (other than a U.S. person (as defined in 15 CFR 772.1)) that is identified for the People's Republic of China on the Entity List (Supplement No. 4 to 15 CFR Part 744) as a person reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States until the End-User Review Committee of the Bureau of Industry and Security in the United States Department of Commerce determines that the person no longer meets that criteria and removes the person from the list.

(2) Any person that:

(A) the United States Secretary of Defense has listed as a Communist Chinese military company operating directly or indirectly in the United States or in any of its territories or possessions pursuant to Section 1237 of Public Law 105-261, as amended by Section 1233 of Public Law 106-398 and Section 1222 of Public Law 108-375 until such time as the United States Secretary of Defense removes the person from such list;

(B) the United States Secretary of Defense, in consultation with the United States Secretary of the Treasury, determines is a Communist Chinese military company operating directly or indirectly in the United States or in any of its territories or possessions and therefore lists as such pursuant to Section 1237 of Public Law 105-261, as amended by Section 1233 of Public Law 106-398 and Section 1222 of Public Law 108-375, until such time as the United States Secretary of Defense removes the person from such list; or

(C) the United States Secretary of the Treasury publicly lists as meeting the criteria in Section 1237(b)(4)(B) of Public Law 105-261, or publicly lists as a subsidiary of a person already determined to be a Communist Chinese military company, until the United States Secretary of the Treasury determines that the person no longer meets that criteria and removes the person from such list.

(3) Any investment that is domiciled, issued, incorporated, or listed in the People's Republic of China (other than a U.S. person or U.S. subsidiary (as defined in 15 CFR 772.1)) or that is publicly confirmed to be controlled by the People's Republic of China, the Chinese Communist Party, or a provincial division, municipality, governmental agency, sovereign wealth fund, or political instrumentality of the People's Republic of China.

(4) Any organization or citizen that is identified by the appropriate government agencies to be required by the National Intelligence Law of the People's Republic of China (2017), as amended in 2018, or any successor to support, assist, and cooperate with the state intelligence work of the People's Republic of China and keep the secrets of the national intelligence work of the People's Republic of China.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-9"Restricted investment product" Sec. 9. As used in this chapter, "restricted investment product" refers to an investment product that:

(1) is managed by one (1) or more persons:

(A) that are not employed by the system; and

(B) in which the system on behalf of the fund owns investments together with investors other than the system; and

(2) holds investments in a restricted entity.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-10"System" Sec. 10. As used in this chapter, "system" has the meaning set forth in IC 5-10.5-1-6.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-11Prohibition on investment in restricted entities Sec. 11. After June 30, 2023, the system may not knowingly invest in a restricted entity or a restricted investment product and shall divest any investment that the system has on behalf of a fund in accordance with this chapter. Determinations under this chapter are independent of any determinations made under IC 5-10.2-9, IC 5-10.2-10, and IC 5-10.2-11.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-12Identification of restricted entities Sec. 12. Before June 30, 2023, and at least annually before July 1 of each subsequent year, the board shall make a good faith effort to identify all restricted entities and restricted investment products in which the system holds an investment. The board may use an independent research firm to assist the board.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-13Divestment Sec. 13. If the board determines after a review under section 12 of this chapter that the system has investments in a restricted entity or a restricted investment product, the board shall establish a plan to divest the investment and complete the divestment as soon as financially prudent. However, the investment must be divested not later than the following:

(1) At least fifty percent (50%) of the investment shall be removed from a fund's assets within three (3) years after the board discovers that the investment is in a restricted entity or restricted investment product.

(2) At least seventy-five percent (75%) of the investment shall be removed from a fund's assets within four (4) years after the board discovers that the investment is in a restricted entity or restricted investment product.

(3) One hundred percent (100%) of the investment shall be removed from a fund's assets within five (5) years after the board discovers that the investment is in a restricted entity or restricted investment product.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-14Cessation or deferral of divestment Sec. 14. The board, as directed by the legislative council, shall consult with the interim study committee on pension management oversight to determine whether to cease or defer divestment in the entity or product initiated under this chapter and resume investment in the entity or product during any period in which the entity or product has not returned to being a restricted entity or restricted investment product if any of the following conditions are met:

(1) The United States Secretary of State has issued a determination that the People's Republic of China is in compliance with each of the following:

(A) The December 19, 1984, Joint Declaration of the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China on the Question of Hong Kong.

(B) The Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China.

(D) The December 10, 1948, Universal Declaration of Human Rights.

(E) The December 19, 1966, International Covenant on Civil and Political Rights.

(2) The entity or product meets or exceeds the rules and standards of the Public Company Accounting Oversight Board and the Sarbanes-Oxley Act of 2002 (Public Law 107-204).

(3) The board determines that a fund has holdings in a passively managed commingled fund that includes a restricted entity and the estimated cost of divestment of the commingled fund is greater than ten percent (10%) of the total value of the restricted entities held in the commingled fund.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-15Report Sec. 15. (a) On or before November 2, 2023, and annually before November 2 of each subsequent year, the board shall submit a report in an electronic format under IC 5-14-6 to the executive director of the legislative services agency for distribution to the members of the general assembly.

(b) The report must include at least the following information, as of the date of the report:

(1) A copy of the restricted entity list.

(2) All publicly traded securities sold, redeemed, divested, or withdrawn in compliance with section 11 of this chapter.

(3) All commingled funds that are exempted from divestment under sections 14 and 18 of this chapter.

(4) Any progress made under section 14 of this chapter.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-16Exemption from conflicting statutory or common law obligations Sec. 16. With respect to actions taken in compliance with this chapter, including all good faith determinations regarding restricted entities and restricted investment products, the board and the system are exempt from any conflicting statutory or common law obligations, including any obligations with respect to choice of asset managers, investment funds, or investments for fund investment portfolios.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-17Immunity; indemnification of the fund and its agents Sec. 17. (a) Both:

(1) the state and its officers, agents, and employees; and

(2) a fund or the system and its board members, executive director, officers, agents, and employees;

are immune from civil liability for any act or omission related to the removal of an asset from a fund under this chapter.

(b) In addition to the immunity provided under subsection (a), both:

(1) the officers, agents, and employees of the state; and

(2) the board members, executive director, officers, agents, and employees of a fund or the system;

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-18Exclusions; investment in similar actively managed investment fund Sec. 18. (a) Except as provided in subsection (b), the divestment requirements of this chapter do not apply to existing investments in private market funds.

(b) The requirements of section 11 of this chapter shall apply to existing investments in private market funds.

(c) Notwithstanding any provision to the contrary, sections 9 and 11 of this chapter do not apply to indirect holdings in actively managed investment funds.

(d) If a manager creates a similar actively managed investment fund without the restricted entities, the board shall replace all applicable investments with investment in the similar actively managed investment fund in a period consistent with prudent investing standards.

As added by P.L.104-2023, SEC.1.

IC 5-10.2-13-19Severability Sec. 19. The provisions of this chapter are severable in the manner provided in IC 1-1-1-8(b).

As added by P.L.104-2023, SEC.1.

IC 5-10.2-14Chapter 14. ESG Commitment

5-10.2-14-1Applicability 5-10.2-14-2"ESG commitment" 5-10.2-14-3"Financial" 5-10.2-14-4"Service provider" 5-10.2-14-5"System" 5-10.2-14-6Factors as evidence of ESG commitment 5-10.2-14-7Duties of the treasurer of state 5-10.2-14-8Prohibited actions 5-10.2-14-9Duties of the INPRS board 5-10.2-14-10Prohibited contracting; replacement of service provider; exception 5-10.2-14-11Tabulation and reporting of proxy votes 5-10.2-14-12Immunity; indemnification 5-10.2-14-13Board duties concerning certain funds, plans, and accounts

IC 5-10.2-14-1Applicability Sec. 1. This chapter does not apply to:

(1) a bank holding company (as defined in IC 28-2-16-3 or IC 28-2-16-9);

(2) a subsidiary of a bank holding company (as defined in IC 28-2-16-3 or IC 28-2-16-9); or

(3) an action taken or a factor considered pursuant to the requirements of this chapter by a trustee for a:

(A) bank holding company described in subdivision (1); or

(B) subsidiary of a bank holding company described in subdivision (2).

As added by P.L.206-2023, SEC.1.

IC 5-10.2-14-2"ESG commitment" Sec. 2. (a) As used in this chapter, "ESG commitment" means an action taken or a factor considered by a service provider:

(1) with respect to or including the system's assets; and

(2) with the nonfinancial purpose to further social, political, or ideological interests based on evidence indicating the purpose.

(b) The term defined in subsection (a) includes a commitment to further, through portfolio company engagement or board or shareholder votes, any of the following for nonfinancial purposes beyond the applicable law requirements:

(1) Eliminating, reducing, offsetting, or disclosing greenhouse gas emissions.

(2) Instituting or assessing:

(A) corporate board;

(B) employment;

(D) compensation; or

(E) disclosure;

criteria that incorporate characteristics protected under IC 22-9.

(3) Divesting from, limiting investment in, or limiting the activities or investments of a company that does any of the following:

(A) Fails to meet or does not commit to environmental standards or disclosures.

(B) Engages in, facilitates, or supports the manufacture, import, distribution, marketing or advertising, sale, or lawful use of firearms, ammunition, or component parts and accessories of firearms or ammunition.

(C) Contracts with the United States Immigration and Customs Enforcement for the provision of federal immigration detention centers or support services related to the implementation of federal immigration and border security laws, regulations, and policies.

(D) Engages in the exploration, production, utilization, transportation, sale, or manufacturing of fossil fuel based energy, timber, mining, agriculture, and food animal production.

As added by P.L.206-2023, SEC.1.

IC 5-10.2-14-3"Financial" Sec. 3. (a) As used in this chapter, "financial" means a prudent determination by a fiduciary to have a material effect on the monetary risk or the monetary return of an investment.

(b) The term does not include an action taken or a factor considered by a fiduciary with the nonfinancial purpose to further social, political, or ideological interests as set forth in section 2 of this chapter.

As added by P.L.206-2023, SEC.1.

IC 5-10.2-14-4"Service provider" Sec. 4. As used in this chapter, "service provider" means investment managers and proxy advisors to the system.

As added by P.L.206-2023, SEC.1.

IC 5-10.2-14-5"System" Sec. 5. (a) As used in this chapter and except as provided in subsection (b), "system" refers to the Indiana public retirement system established by IC 5-10.5-2-1.

(b) The term does not include the following:

(1) The public employees' defined contribution plan established under IC 5-10.3-12.

(2) An annuity savings account for the public employees' retirement fund established under IC 5-10.2-2-2(a)(1).

(3) The teachers' defined contribution plan established under IC 5-10.4-8.

(4) An annuity savings account for the Indiana state teachers' retirement fund established under IC 5-10.2-2-2(c)(1).

(5) The legislators' defined contribution plan established under IC 2-3.5-5.

As added by P.L.206-2023, SEC.1.

IC 5-10.2-14-6Factors as evidence of ESG commitment Sec. 6. Factors to be considered as evidence of a service provider's ESG commitment may include one (1) or more of the following:

(1) Advertising.

(2) Statements.

(3) Explanations.

(4) Reports.

(5) Letters to clients.

(6) Communications with portfolio companies.

(7) Statements of principles.

(8) Participation in, affiliation with, or status as a signatory to:

(A) a coalition;

(B) an initiative;

(D) an agreement.

As added by P.L.206-2023, SEC.1.

IC 5-10.2-14-7Duties of the treasurer of state Sec. 7. If the treasurer of state has reasonable cause to believe that a service provider has made an ESG commitment, the treasurer of state shall research the matter and make a determination as to whether the service provider has made an ESG commitment. In conducting this research, the treasurer of state shall attempt to consult with the service provider and consider any information the service provider provides to the treasurer of state. If the treasurer of state concludes that the service provider has made an ESG commitment, the treasurer of state shall provide the:

(1) name of the service provider; and

(2) research supporting the conclusion;

to the board.

As added by P.L.206-2023, SEC.1.

IC 5-10.2-14-8Prohibited actions Sec. 8. (a) Except as otherwise provided by law, the board may not make an investment decision with the purpose of:

(1) influencing any social or environmental policy; or

(2) attempting to influence the governance of any corporation for nonfinancial purposes.

(b) Except as otherwise provided by law, the system is prohibited from making an ESG commitment with respect to system assets, including without limitation in the selection of investments, selection of investment managers, management or oversight of investments, proxy voting, or shareholder engagement.

As added by P.L.206-2023, SEC.1.

IC 5-10.2-14-9Duties of the INPRS board Sec. 9. (a) In making and supervising investments of the system, the board shall discharge its duties solely in the financial interest of the participants and beneficiaries of the system for the exclusive purposes of:

(1) providing financial benefits to participants and beneficiaries; and

(2) defraying reasonable expenses of administering the system.

(b) The board, in accordance with the fiduciary duties described in this article, shall make investment decisions with the primary purpose of maximizing the target rate of return on the board's investments.

As added by P.L.206-2023, SEC.1.

IC 5-10.2-14-10Prohibited contracting; replacement of service provider; exception Sec. 10. (a) In accordance with the board's duty under section 9 of this chapter, and except as provided in subsection (c), the board shall not:

(1) enter a contract; or

(2) modify, amend, or continue a contract;

with a service provider that has made an ESG commitment unless taking the action described in subdivisions (1) and (2) violates the board's fiduciary duty to the system's participants and beneficiaries.

(b) The board shall replace a service provider that has made an ESG commitment with a service provider that is comparable in financial performance, so as not to violate the board's fiduciary duty to the system's participants and beneficiaries. If the board replaces a service provider, it shall do so within a reasonable time, but not later than one hundred eighty (180) days after receiving notice from the treasurer of state of the service provider's ESG commitment.

(c) If the board determines that there is not a comparable service provider to replace a service provider under subsection (b), the board shall continue contracting with the service provider that has made an ESG commitment. The board shall include in its minutes the:

(1) decision that a comparable service provider does not exist; and

(2) evidence supporting the decision under subdivision (1).

As added by P.L.206-2023, SEC.1.

IC 5-10.2-14-11Tabulation and reporting of proxy votes Sec. 11. The board shall, at least annually, tabulate and report all proxy votes made by a service provider that is not a private market fund (as defined in IC 5-10.2-10-11) in relation to the administration of the system. For each vote reported, the report must contain:

(1) a vote caption;

(2) the fund's vote;

(3) the recommendation of the portfolio company's management; and

(4) if applicable, the recommendation of a proxy advisor or other service provider.

As added by P.L.206-2023, SEC.1.

IC 5-10.2-14-12Immunity; indemnification Sec. 12. (a) The following are immune from civil liability for any act or omission related to any action under this chapter:

(1) The state.

(2) Officers, agents, and employees of the state.

(3) The system.

(4) The:

(A) board members;

(B) executive director;

(D) agents; and

(E) employees;

of the system.

(b) In addition to the immunity provided under subsection (a), the following are entitled to indemnification from the system for all losses, costs, and expenses, including reasonable attorney's fees, associated with defending against any claim or suit relating to an act authorized under this chapter:

(1) Officers, agents, and employees of the state.

(2) The:

(A) board members;

(B) executive director;

(D) agents; and

(E) employees;

of the system.

As added by P.L.206-2023, SEC.1.

IC 5-10.2-14-13Board duties concerning certain funds, plans, and accounts Sec. 13. This chapter does not apply directly to the defined contribution plans or an annuity savings account described in section 5(b) of this chapter or a private market fund (as defined in IC 5-10.2-10-11). However, the board shall:

(1) ensure that reasonable efforts are made during the due diligence process before an investment is made and in monitoring investments in:

(A) the public employees' defined contribution plan established under IC 5-10.3-12;

(B) an annuity savings account for the public employees' retirement fund established under IC 5-10.2-2-2(a)(1);

(D) an annuity savings account for the Indiana state teachers' retirement fund established under IC 5-10.2-2-2(c)(1);

(E) the legislators' defined contribution plan established under IC 2-3.5-5; or

(F) a private market fund (as defined in IC 5-10.2-10-11);

to determine whether any investments would violate section 9 of this chapter; and

(2) take appropriate action, if necessary, consistent with the board's fiduciary duties.

As added by P.L.206-2023, SEC.1.

IC 5-10.3ARTICLE 10.3. THE PUBLIC EMPLOYEES' RETIREMENT FUND

Ch. 1.Definitions Ch. 2.The Public Employees' Retirement Fund Ch. 3.The Board of Trustees Ch. 4.State Officers of the Fund Ch. 5.Accounts; Investments Ch. 6.Participation by Political Subdivisions Ch. 7.Membership; Creditable Service; Contributions; Withdrawal Ch. 8.Benefits Ch. 9.Administration of Other Retirement Plans Ch. 10.Construction of Codification Ch. 11.Pension Relief Fund Ch. 12.Public Employees' Defined Contribution Plan

IC 5-10.3-1Chapter 1. Definitions

5-10.3-1-1"Board" 5-10.3-1-1.3"Cryptocurrency" 5-10.3-1-2"Employer" 5-10.3-1-2.5"Director" 5-10.3-1-3"Fund" 5-10.3-1-4"Governing body" 5-10.3-1-5"Member" 5-10.3-1-6"Political subdivision" 5-10.3-1-7Repealed 5-10.3-1-8Gender; number 5-10.3-1-9"Member's contribution"

IC 5-10.3-1-1"Board" Sec. 1. "Board" as used in this article means the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.23-2011, SEC.13.

IC 5-10.3-1-1.3"Cryptocurrency" Sec. 1.3. As used in this article, "cryptocurrency" has the meaning set forth in IC 2-3.5-2-2.8.

As added by P.L.49-2026, SEC.5.

IC 5-10.3-1-2"Employer" Sec. 2. Employer. "Employer" as used in this article means the state for employees of the state and a political subdivision for its employees.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-1-2.5"Director" Sec. 2.5. As used in this article, "director" refers to the director of the Indiana public retirement system established by IC 5-10.5-2-1.

As added by P.L.5-1990, SEC.6. Amended by P.L.23-2011, SEC.14.

IC 5-10.3-1-3"Fund" Sec. 3. Fund. "Fund" as used in this article means the public employees' retirement fund.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-1-4"Governing body" Sec. 4. "Governing body" means the fiscal body of a county, city, town, or township, board of school commissioners, library board, or any board which by law is authorized to fix a rate of taxation on property of a political subdivision, or any other board which is empowered to administer the affairs of any department of a political subdivision, which department receives revenue independently of, or in addition to, funds obtained from taxation.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.8-1987, SEC.10; P.L.8-1989, SEC.20.

IC 5-10.3-1-5"Member" Sec. 5. Member. "Member" as used in this article means persons qualifying for membership under IC 5-10.3-7-1.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-1-6"Political subdivision" Sec. 6. Political Subdivision. "Political subdivision" as used in this article means a county, city, town, township, political body corporate, public school corporation, public library, public utility of a county, city, town, township, and any department of, or associated with, a county, city, town, or township, which department receives revenue independently of, or in addition to, funds obtained from taxation.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-1-7RepealedAs added by Acts 1977, P.L.53, SEC.3. Repealed by P.L.5-1990, SEC.24.

IC 5-10.3-1-8Gender; number Sec. 8. Gender; Number. (a) When a masculine pronoun is used in this article, it refers to the masculine, feminine, or neuter, as appropriate.

(b) The singular form of any noun used in this article includes the plural, and the plural includes the singular, as appropriate.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-1-9"Member's contribution" Sec. 9. As used in this article, "member's contribution" includes contributions paid by the employer for members of the fund.

As added by P.L.41-1983, SEC.6. Amended by P.L.35-1985, SEC.18.

IC 5-10.3-2Chapter 2. The Public Employees' Retirement Fund

5-10.3-2-0.3Legalization of payment of certain benefits 5-10.3-2-0.4Validation of certain board actions 5-10.3-2-1Establishment and administration of fund 5-10.3-2-2Interests in fund 5-10.3-2-3Legislative intent; public obligations 5-10.3-2-4Participation in fund or state defined contribution plan by qualifying employees of eligible entity

IC 5-10.3-2-0.3Legalization of payment of certain benefits Sec. 0.3. If before June 1, 1985, the board approved a member's choice of retirement date that preceded the member's application for benefits, payments made as a result of the choice of retirement date are legalized.

As added by P.L.220-2011, SEC.77.

IC 5-10.3-2-0.4Validation of certain board actions Sec. 0.4. (a) If the board, the state, or a political subdivision denied, after December 31, 1986, an employee of the state or the political subdivision who was sixty (60) years of age or older the option not to join the fund, the denial is validated.

(b) Actions taken by the board before March 5, 1988, that would have been valid under IC 5-10.3-7-3(a), as amended by P.L.46-1988, are validated.

As added by P.L.220-2011, SEC.78.

IC 5-10.3-2-1Establishment and administration of fund Sec. 1. (a) The public employees' retirement fund of Indiana, referred to as the fund, is established to pay benefits to officers and employees of the state and its political subdivisions after specified years of service and under other specified circumstances. The purpose of the fund is to promote economy and efficiency in the administration of state and local government by providing an orderly way for members to be retired without prejudice and without inflicting hardship on the retired member.

(b) The fund is a trust. The board of trustees of the Indiana public retirement system shall administer the fund and implement this article, without the supervision of the department of insurance.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.23-2011, SEC.15.

IC 5-10.3-2-2Interests in fund Sec. 2. No individual, group of persons, or entity has a right to any specific security, property, or cash other than an undivided interest in the whole fund as specified in this article.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.28-1984, SEC.3.

IC 5-10.3-2-3Legislative intent; public obligations Sec. 3. The general assembly intends that, to the extent specified in this article, the payments to the fund by the state or the participating political subdivisions, the payment of all benefits, the payment of interest credits, and the payment of administration expenses are obligations of the state and the participating political subdivisions. However, this obligation is not a guarantee that the amount credited to a member in the annuity savings account will not vary in value as a result of the performance of the investment program selected by the member under IC 5-10.2-2, unless the member selected the guaranteed program (before its elimination on January 1, 2017), in which case the obligation is such a guarantee.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.35-1985, SEC.19; P.L.193-2016, SEC.13.

IC 5-10.3-2-4Participation in fund or state defined contribution plan by qualifying employees of eligible entity Sec. 4. (a) The following definitions apply throughout this section:

(1) "Defined contribution plan" refers to the public employees' defined contribution plan established under IC 5-10.3-12.

(2) "Eligible entity" means an entity that is eligible but not required to participate in the public employees' retirement fund.

(3) "Qualifying employee" means an employee who would be eligible under IC 5-10.3-7 to become a member of the fund, if the employee's employer were to participate in the fund.

(b) Except as otherwise provided in this section, if an eligible entity wishes to offer a retirement plan to a qualifying employee, the eligible entity must provide the retirement plan to the qualifying employee by participating in the fund or the defined contribution plan.

(c) If, on July 1, 2015, an eligible employer is providing a retirement plan other than the fund or the defined contribution plan to a departmental, occupational, or other definable classification of an eligible entity's employees, the qualifying employees in the departmental, occupational, or other classification of employees may continue to participate in the retirement plan, regardless of whether the qualifying employees in the departmental, occupational, or other definable classification begin employment with the eligible entity after June 30, 2015.

(d) An eligible entity may offer a retirement plan other than the fund or the defined contribution plan to an employee, if the employee is not a qualifying employee.

As added by P.L.241-2015, SEC.10.

IC 5-10.3-3Chapter 3. The Board of Trustees

5-10.3-3-1Repealed 5-10.3-3-2Repealed 5-10.3-3-3Repealed 5-10.3-3-4Repealed 5-10.3-3-5Repealed 5-10.3-3-6Repealed 5-10.3-3-7Repealed 5-10.3-3-7.1Annual analysis of fund 5-10.3-3-8Repealed 5-10.3-3-9Repealed 5-10.3-3-10Actuary; duties

IC 5-10.3-3-1RepealedAs added by Acts 1977, P.L.53, SEC.3. Amended by P.L.36-1996, SEC.1; P.L.246-2001, SEC.9; P.L.62-2005, SEC.4. Repealed by P.L.23-2011, SEC.31.

IC 5-10.3-3-2RepealedAs added by Acts 1977, P.L.53, SEC.3. Repealed by P.L.23-2011, SEC.31.

IC 5-10.3-3-3RepealedAs added by Acts 1977, P.L.53, SEC.3. Repealed by P.L.23-2011, SEC.31.

IC 5-10.3-3-4RepealedAs added by Acts 1977, P.L.53, SEC.3. Amended by P.L.25-1994, SEC.6; P.L.62-2005, SEC.5. Repealed by P.L.23-2011, SEC.31.

IC 5-10.3-3-5RepealedAs added by Acts 1977, P.L.53, SEC.3. Amended by P.L.28-1984, SEC.4. Repealed by P.L.23-2011, SEC.31.

IC 5-10.3-3-6RepealedAs added by Acts 1977, P.L.53, SEC.3. Amended by P.L.62-2005, SEC.6. Repealed by P.L.23-2011, SEC.31.

IC 5-10.3-3-7RepealedAs added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1979, P.L.17, SEC.6; P.L.35-1985, SEC.20; P.L.5-1990, SEC.7; P.L.119-2000, SEC.4; P.L.107-2010, SEC.2. Repealed by P.L.23-2011, SEC.31.

IC 5-10.3-3-7.1Annual analysis of fund Sec. 7.1. The board shall annually analyze for internal control purposes the fund's;

(1) income and expenditures;

(2) actuarial condition;

(3) reserve accounts;

(4) investments; and

(5) such other data as necessary to interpret the fund's condition and the board's administration of the fund.

As added by Acts 1979, P.L.17, SEC.7.

IC 5-10.3-3-8RepealedAs added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1977(ss), P.L.1, SEC.2; P.L.35-1985, SEC.21; P.L.43-1991, SEC.4; P.L.22-1998, SEC.7; P.L.119-2000, SEC.5; P.L.61-2002, SEC.7; P.L.183-2003, SEC.1. Repealed by P.L.23-2011, SEC.31.

IC 5-10.3-3-9RepealedAs added by Acts 1977, P.L.53, SEC.3. Amended by P.L.46-1988, SEC.1; P.L.5-1990, SEC.8; P.L.115-2009, SEC.9. Repealed by P.L.23-2011, SEC.31.

IC 5-10.3-3-10Actuary; duties Sec. 10. The actuary shall perform the duties specified in this article and in IC 5-10.2 and all other duties assigned by the board.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.23-2011, SEC.16.

IC 5-10.3-4Chapter 4. State Officers of the Fund

5-10.3-4-1Repealed 5-10.3-4-2Repealed 5-10.3-4-3Attorney general

IC 5-10.3-4-1RepealedAs added by Acts 1977, P.L.53, SEC.3. Amended by P.L.46-1988, SEC.2. Repealed by P.L.115-2009, SEC.21.

IC 5-10.3-4-2RepealedAs added by Acts 1977, P.L.53, SEC.3. Amended by P.L.5-1990, SEC.9; P.L.62-2005, SEC.7. Repealed by P.L.115-2009, SEC.21.

IC 5-10.3-4-3Attorney general Sec. 3. The Attorney General. The attorney general of the state is the legal advisor of the board.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-5Chapter 5. Accounts; Investments

5-10.3-5-1Accounts in fund 5-10.3-5-2Employer contributions; federal money 5-10.3-5-3Investments of assets; management agreements; board exemptions on sale of surplus personal property or state property 5-10.3-5-3.1Board transactions subject to qualification requirements of Internal Revenue Code 5-10.3-5-3.5Self-directed brokerage account offering cryptocurrency investment option within the annuity savings accounts 5-10.3-5-4Investments 5-10.3-5-5Custodians 5-10.3-5-6Termination of agreements 5-10.3-5-7Actuarial reports; status of reserve account; charges against difference between reserves in account and accrued liability

IC 5-10.3-5-1Accounts in fund Sec. 1. Accounts in the Fund. The fund consists of separate annuity savings and retirement allowance accounts established and administered as specified in IC 5-10.2-2.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-5-2Employer contributions; federal money Sec. 2. Employer Contributions; Federal Moneys. (a) The state shall make contributions to the retirement allowance account as specified in IC 5-10.2-2. Participating political subdivisions shall make contributions as specified in chapter 6 of this article.

(b) If members receive compensation from federal funds, the board shall at the end of each fiscal year determine the employer's contribution, excluding administration expenses, to be paid from federal funds. The amount shall be determined by such method adopted by the board as results in an equitable sharing of the employer contribution by the federal government on account of members receiving compensation from federal funds.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-5-3Investments of assets; management agreements; board exemptions on sale of surplus personal property or state property Sec. 3. (a) The board shall invest its assets with the care, skill, prudence, and diligence that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character with like aims. The board shall also diversify such investments in accordance with prudent investment standards.

(b) The board may invest up to five percent (5%) of the excess of its cash working balance in debentures of the corporation for innovation development subject to IC 30-4-3-3.

(c) The board is not subject to IC 4-13, IC 4-13.6, and IC 5-16 when managing real property as an investment. Any management agreements entered into by the board must ensure that the management agent acts in a prudent manner with regard to the purchase of goods and services. Contracts for the management of investment property shall be submitted to the governor, the attorney general, and the budget agency for approval. A contract for management of real property as an investment:

(1) may not exceed a four (4) year term and must be based upon guidelines established by the board;

(2) may provide that the property manager may collect rent and make disbursements for routine operating expenses such as utilities, cleaning, maintenance, and minor tenant finish needs;

(3) must establish, consistent with the board's duty under IC 30-4-3-3(c), guidelines for the prudent management of expenditures related to routine operation and capital improvements; and

(4) may provide specific guidelines for the board to purchase new properties, contract for the construction or repair of properties, and lease or sell properties without individual transactions requiring the approval of the governor, the attorney general, the Indiana department of administration, and the budget agency. However, each individual contract involving the purchase or sale of real property is subject to review and approval by the attorney general at the specific request of the attorney general.

(d) Whenever the board takes bids in managing or selling real property, the board shall require a bid submitted by a trust (as defined in IC 30-4-1-1(a)) to identify all of the following:

(1) Each beneficiary of the trust.

(2) Each settlor empowered to revoke or modify the trust.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.51-1983, SEC.1; P.L.46-1988, SEC.3; P.L.336-1989(ss), SEC.14; P.L.1-1991, SEC.34; P.L.37-1996, SEC.1; P.L.49-1997, SEC.26; P.L.224-2003, SEC.187; P.L.32-2021, SEC.9.

IC 5-10.3-5-3.1Board transactions subject to qualification requirements of Internal Revenue Code Sec. 3.1. The board's transactions under section 3 of this chapter are subject to IC 5-10.2-2-1.5.

As added by P.L.55-1989, SEC.22.

IC 5-10.3-5-3.5Self-directed brokerage account offering cryptocurrency investment option within the annuity savings accounts Sec. 3.5. (a) Not later than July 1, 2027, the board shall offer, as a regular investment program within the annuity savings accounts described in IC 5-10.2-2-2(a), a self directed brokerage account that offers at least one (1) cryptocurrency investment option.

(b) The board may adopt requirements and rules that apply to a cryptocurrency investment option under a self directed brokerage account offered under subsection (a), including the following:

(1) The board's investment guidelines and limits for the cryptocurrency investment option.

(2) A member's selection of and changes to the member's investment options.

(3) The valuation of a member's account.

(4) The allocation and payment of administrative expenses for the cryptocurrency investment option.

As added by P.L.49-2026, SEC.6.

IC 5-10.3-5-4Investments Sec. 4. (a) Securities shall be held for the fund by banks or trust companies under a custodial agreement. Income, interest, proceeds of sale, materials, redemptions, and all other receipts from securities and other investments which the board retains for the cash working balance shall be deposited as authorized by the board.

(b) The board may contract with investment counsel, trust companies, or banks to assist the board in its investment program.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.46-1988, SEC.4; P.L.55-1993, SEC.2; P.L.195-1999, SEC.19; P.L.1-2002, SEC.16; P.L.115-2009, SEC.10.

IC 5-10.3-5-5Custodians Sec. 5. (a) The custodians must be banks or trust companies that are domiciled in the United States and approved by the board to:

(1) act in a fiduciary capacity; and

(2) manage custodial accounts;

on behalf of the fund.

(b) The board is authorized to accept safekeeping receipts for securities held by the custodians. Each custodian must have a combined capital and surplus of at least ten million dollars ($10,000,000) according to the last published report of condition for the bank or trust company and have physical custody of such securities. The state board of accounts is authorized to rely on safekeeping receipts from the custodian. The custodian may be authorized by the agreement to:

(1) hold securities and other investments in the name of the fund, in the name of a nominee of the custodian, or in bearer form;

(2) collect and receive income, interest, proceeds of sale, maturities, redemptions, and all other receipts from the securities and other investments;

(3) deposit all the receipts collected and received under subdivision (2) in a custodian account or checking account as instructed by the board;

(4) reinvest the receipts collected and received under subdivision (2) as directed by the board;

(5) maintain accounting records and prepare reports which are required by the board and the state board of accounts; and

(6) perform other services for the board as are customary and appropriate for custodians.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.46-1988, SEC.5; P.L.25-1994, SEC.7; P.L.72-2003, SEC.1; P.L.97-2004, SEC.19; P.L.90-2008, SEC.2.

IC 5-10.3-5-6Termination of agreements Sec. 6. Termination of Agreements and Contracts. The board may terminate contracts and custodial agreements with investment counsel, trust companies and banks and may recover securities and moneys held under the custodial agreements whenever the board considers these actions necessary to protect the fund.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-5-7Actuarial reports; status of reserve account; charges against difference between reserves in account and accrued liability Sec. 7. (a) After each fiscal year, the actuary shall report the status of the reserve account for persons receiving benefits from the fund. The report must contain a statement of the reserves in the account and the accrued liability for these persons.

(b) Taking into consideration the actuary's report, the board shall after June 30, 1985, charge the costs of postretirement benefit increases against any difference between the reserves in the account and the accrued liability. However, the board may withhold from the difference, as a contingency reserve, an amount less than or equal to two percent (2%) of the reserve. If the amount of the difference is insufficient to meet the costs of the postretirement benefit increases, the excess shall be charged against each employer's account in the retirement allowance account on a prorata basis.

As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1977(ss), P.L.2, SEC.3; P.L.50-1985, SEC.2.

IC 5-10.3-6Chapter 6. Participation by Political Subdivisions

5-10.3-6-0.5"Plan" 5-10.3-6-1Admission to fund or plan 5-10.3-6-1.1Volunteer fire departments; plan participation 5-10.3-6-1.5Authorized agent in third class city or town 5-10.3-6-2Preliminary survey 5-10.3-6-3Powers of governing body 5-10.3-6-4Accounts 5-10.3-6-5Repealed 5-10.3-6-6Appropriations and payments by school corporations 5-10.3-6-7Collection of payments 5-10.3-6-8Withdrawal of political subdivision 5-10.3-6-8.2Freeze in participation by political subdivision 5-10.3-6-8.3Retirement plans offered by political subdivision that withdraws from or freezes participation in fund 5-10.3-6-8.5Certain state university employees involved in health care 5-10.3-6-8.9State employee terminations resulting from lease or contractual arrangement with nongovernmental entity 5-10.3-6-9Participation of political subdivision with retirement system 5-10.3-6-10Transfer of assets 5-10.3-6-11Repealed

IC 5-10.3-6-0.5"Plan" Sec. 0.5. As used in this chapter, "plan" refers to the public employees' defined contribution plan under IC 5-10.3-12.

As added by P.L.241-2015, SEC.11.

IC 5-10.3-6-1Admission to fund or plan Sec. 1. (a) The governing body of a political subdivision may adopt an ordinance or resolution specifying a departmental, occupational, or other definable classification of employees:

(1) who are required to become members of the fund;

(2) who are required to become members of the plan; or

(3) who may each elect whether to become members of the fund or members of the plan.

An ordinance or resolution adopted by the governing body of a political subdivision under this subsection that specifies the departmental, occupational, or other definable classification of employees who are required under subdivision (2) to become members of the plan or who may under subdivision (3) elect whether to become members of the fund or plan may not take effect before January 2, 2016. A political subdivision may become a participant in the fund or the plan, or both, as applicable, if the ordinance or resolution is filed with and approved by the board.

(b) An ordinance or resolution adopted under subsection (a) that includes a provision described under subsection (a)(3) may also include one (1) of the following provisions:

(1) If an employee who may elect whether to become a member of the fund or a member of the plan does not make an election under IC 5-10.3-7-1.1, the employee becomes a member of the plan.

(2) If an employee who may elect whether to become a member of the fund or a member of the plan does not make an election under IC 5-10.3-12-20.5, the employee becomes a member of the fund.

If an ordinance or resolution adopted under subsection (a) that includes a provision described under subsection (a)(3) does not include either of the provisions described in subdivision (1) or (2), subdivision (2) applies to the departmental, occupational, or other definable classification of employees that may elect to become members of the fund or members of the plan.

(c) If an ordinance or resolution adopted under subsection (a) includes a provision described under subsection (a)(2) or (a)(3), or both, the ordinance or resolution must include a specification of the political subdivision's contribution rate to the plan as a percentage of each member's compensation. Each year, the political subdivision's contribution rate specified under this subsection must be greater than or equal to zero percent (0%) and may not exceed the percentage that would produce the normal cost for participation in the fund under IC 5-10.2-2-11, if the political subdivision were a participant in the fund. If a provision specifying the political subdivision's contribution rate is not included in the ordinance or resolution, the political subdivision's contribution rate to the plan is zero percent (0%).

(d) If an ordinance or resolution adopted under subsection (a) includes a provision described under subsection (a)(2) or (a)(3), or both, the ordinance or resolution must include a specification of the political subdivision's matching rate that is the percentage of each member's additional contributions to the plan that the political subdivision will match. A political subdivision may specify only:

(1) zero percent (0%); or

(2) fifty percent (50%).

If a provision specifying the political subdivision's matching rate is not included in the ordinance or resolution, the political subdivision's matching rate for the plan is zero percent (0%).

(e) A governing body may include in its ordinance or resolution adopted under subsection (a) a determination of the date from which prior service for its employees will be computed. Creditable service for these employees is determined under IC 5-10.3-7-7.5.

(f) The effective date of participation is a date approved by the board, either a date suggested by the political subdivision or a date selected by the board, but the date may not be later than sixty (60) days after the date of approval. However, no retirement benefit may be paid until six (6) months after the effective date of participation.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.60-1987, SEC.1; P.L.241-2015, SEC.12; P.L.179-2018, SEC.9.

IC 5-10.3-6-1.1Volunteer fire departments; plan participation Sec. 1.1. (a) This section applies to a political subdivision that is served by a volunteer fire department.

(b) The following definitions apply throughout this section:

(1) "Nominal compensation" has the meaning set forth in IC 36-8-12-2.

(2) "Volunteer fire department" has the meaning set forth in IC 36-8-12-2.

(c) The governing body of a political subdivision may adopt an ordinance or resolution specifying the departmental, occupational, or other definable classifications of members of the volunteer fire department that are required to become members of the plan. A political subdivision may become a participant in the plan if the ordinance or resolution is filed with and approved by the board.

(d) The governing body of a political subdivision shall determine the amounts of the contributions that the political subdivision will make on behalf of the eligible members of the volunteer fire department. However, the contributions that are made on behalf of each eligible member of the volunteer fire department in any specified departmental, occupational, or other definable classification must be equal. The governing body of the political subdivision shall specify the amounts of the contributions that the political subdivision will make for each departmental, occupational, or other definable classification of the members of the volunteer fire department in an ordinance or resolution adopted under subsection (c) and in any subsequent ordinance or resolution that changes the contribution amounts. If the governing body of the political subdivision changes the contribution amounts, the governing body shall file the ordinance or resolution with the board. The new contribution amounts become effective on the later of the date on which the ordinance or resolution is approved by the board or the effective date specified in the resolution.

(e) Contributions made under this section on behalf of the eligible members of a volunteer fire department may not be considered in the computation of nominal compensation for purposes of IC 36-8-12.

(f) An individual who participates in the plan under subsection (c) does not earn creditable service (as defined in IC 5-10.2-3-1) in the fund for the individual's service with a volunteer fire department.

As added by P.L.96-2020, SEC.1. Amended by P.L.92-2021, SEC.7.

IC 5-10.3-6-1.5Authorized agent in third class city or town Sec. 1.5. (a) This section applies to a third class city or a town.

(b) The clerk-treasurer of a city or town is that city's or town's authorized agent for all matters concerning the fund and the plan.

As added by P.L.69-1995, SEC.1. Amended by P.L.241-2015, SEC.13.

IC 5-10.3-6-2Preliminary survey Sec. 2. The governing body may request a preliminary survey, at its expense as determined by the board, to determine the estimated cost of participation. The board and its actuary shall give an estimate of the costs, the benefits, and other appropriate information.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.246-2001, SEC.10; P.L.23-2011, SEC.17.

IC 5-10.3-6-3Powers of governing body Sec. 3. Powers of the Governing Body. After a political subdivision becomes a participant, its governing body may make appropriations, make payments, and do all things required by this article.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-6-4Accounts Sec. 4. The board shall maintain separate accounts for each contribution rate group. Credits and charges to these accounts shall be made as prescribed in IC 5-10.2-2 and IC 5-10.3-12, as applicable.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.23-2011, SEC.18; P.L.241-2015, SEC.14.

IC 5-10.3-6-5RepealedAs added by Acts 1977, P.L.53, SEC.3. Amended by P.L.47-1985, SEC.6; P.L.54-1993, SEC.12. Repealed by P.L.23-2011, SEC.31.

IC 5-10.3-6-6Appropriations and payments by school corporations Sec. 6. A school corporation shall make the appropriations and payments required of participating political subdivisions from its education fund or operations fund in accordance with the categories of expenditures established under IC 20-42.5-3.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.238-2019, SEC.6.

IC 5-10.3-6-7Collection of payments Sec. 7. (a) If the employer or political subdivision fails to make payments required by this chapter, the amount payable may be:

(1) withheld by the state comptroller from moneys payable to the employer or subdivision and transferred to the fund or the plan, as applicable; or

(2) recovered in a suit in the circuit or superior court of the county in which the political subdivision is located. The suit shall be an action by the state on the relation of the board, prosecuted by the attorney general.

(b) If:

(1) service credit is verified for a member who has filed an application for retirement benefits; and

(2) the member's employer at the time the service credit was earned has not made contributions for or on behalf of the member for the service credit;

liability for the unfunded service credit shall be charged against the employer's account and collected by the fund as provided in subsection (a). Processing of a member's application for retirement benefits may not be delayed by an employer's failure to make contributions for the service credit earned by the member while the member was employed by the employer.

(c) If the employer or political subdivision fails to file the reports or records required by this chapter or by IC 5-10.3-7-12.5, the state comptroller shall:

(1) withhold the penalty described in IC 5-10.3-7-12.5 from money payable to the employer or the political subdivision; and

(2) transfer the penalty to the fund or the plan, as applicable.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.195-1999, SEC.20; P.L.115-2009, SEC.11; P.L.241-2015, SEC.15; P.L.9-2024, SEC.125.

IC 5-10.3-6-8Withdrawal of political subdivision Sec. 8. (a) As used in this section, "withdrawing political subdivision" means a political subdivision that takes an action described in subsection (b).

(b) Subject to the provisions of this section, a political subdivision may do the following:

(1) Stop its participation in the fund and withdraw all of the political subdivision's employees from participation in the fund.

(2) Withdraw a departmental, an occupational, or other definable classification of employees from participation in the fund.

(3) Stop the political subdivision's participation in the fund by:

(A) selling all of the political subdivision's assets; or

(B) ceasing to exist as a political subdivision.

(c) The withdrawal of a political subdivision's participation in the fund is effective on a termination date established by the board. The termination date may not occur before all of the following have occurred:

(1) The withdrawing political subdivision has provided written notice of the following to the board:

(A) The withdrawing political subdivision's intent to cease participation.

(B) The names of the withdrawing political subdivision's current employees and former employees as of the date on which the notice is provided.

(2) The expiration of:

(A) a ninety (90) day period following the filing of the notice with the board, for a withdrawing political subdivision that sells all of the withdrawing political subdivision's assets or that ceases to exist as a political subdivision; or

(B) a two (2) year period following the filing of the notice with the board, for all other withdrawing political subdivisions.

(3) The withdrawing political subdivision takes all actions required in subsections (d) through (g).

(d) With respect to retired members who have creditable service with the withdrawing political subdivision, the withdrawing political subdivision must contribute to the fund any additional amounts that the board determines are necessary to provide for reserves with sufficient assets to pay all future benefits from the fund to those retired members attributable to service with the withdrawing political subdivision. The contribution by the withdrawing political subdivision must be made in a lump sum or in a series of payments over a term determined by the board that does not exceed thirty (30) years.

(e) A member who is an employee of the political subdivision as of the date of the notice under subsection (c) is vested in the pension portion of the member's retirement benefit. The withdrawing political subdivision must contribute to the fund the amount the board determines is necessary to fund fully the vested benefit attributable to service with the withdrawing political subdivision. The contribution by the withdrawing political subdivision must be made in a lump sum or in a series of payments over a term determined by the board that does not exceed thirty (30) years.

(g) With respect to members of the fund who have creditable service with the withdrawing political subdivision and who are not employees as of the date of the notice under subsection (c), the withdrawing political subdivision must contribute the amount that the board determines is necessary to fund fully the service for those members that is attributable to service with the withdrawing political subdivision. The contribution by the withdrawing political subdivision must be made in a lump sum or in a series of payments over a term determined by the board that does not exceed thirty (30) years.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.28-1984, SEC.5; P.L.22-1993, SEC.4; P.L.241-2015, SEC.16.

IC 5-10.3-6-8.2Freeze in participation by political subdivision Sec. 8.2. (a) The following definitions apply throughout this section:

(1) "Freeze" or "freeze participation in the fund" means to take an action described under subsection (b)(1), (b)(2), or (b)(3).

(2) "Freezing political subdivision" means a political subdivision that freezes its participation in the fund.

(b) Subject to the provisions of this section, a political subdivision that did not take an action described in this subsection before the effective date of this section may adopt an ordinance or resolution, which may not be effective before January 2, 2016, to do the following:

(1) Determine a date (which may not be before January 2, 2016):

(A) before which newly hired employees of a departmental, occupational, or other definable classification of employees are eligible to participate in the fund; and

(B) on or after which newly hired employees of the departmental, occupational, or other definable classification of employees are not eligible to participate in the fund.

(2) Determine a date (which may not be before January 2, 2016):

(A) before which newly hired employees of a departmental, occupational, or other definable classification of employees are required to participate in the fund; and

(B) on or after which newly hired employees of the departmental, occupational, or other definable classification of employees are allowed to choose whether to participate in a retirement benefit system other than the fund.

(3) Modify the political subdivision's employee classification scheme as of a specified date (which may not be before January 2, 2016) in such a way that there is at least one (1) position that:

(A) is covered by the fund before the specified date; and

(B) is not covered by the fund on or after the specified date.

(1) Provide written notice of the following to the board:

(A) The action that was taken under subsection (b) by the freezing political subdivision.

(B) The effective date of the action taken under subsection (b).

(i) are covered by the fund before the effective date of the freeze; and

(ii) will not be covered by the fund on or after the effective date of the freeze.

(D) The names of the freezing political subdivision's current employees and former employees as of the date on which the notice is provided.

(2) Comply with subsections (d) through (f).

(d) With respect to retired members who have creditable service with the freezing political subdivision, the freezing political subdivision shall contribute to the fund any additional amounts that the board determines are necessary to provide for reserves with sufficient assets to pay all future benefits from the fund to those retired members attributable to service with the freezing political subdivision. The board shall collaborate with the freezing political subdivision by sharing the actuarial method and report. The contribution by the freezing political subdivision must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years, as determined by the freezing political subdivision.

(e) With respect to members of the fund who have creditable service with the freezing political subdivision and who are not employees as of the effective date on which the political subdivision freezes its participation in the fund, the freezing political subdivision shall contribute the amount that the board determines is necessary to fund fully the service for those members that is attributable to service with the freezing political subdivision. The board shall collaborate with the freezing political subdivision by sharing the actuarial method and report. The contribution by the freezing political subdivision must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years, as determined by the freezing political subdivision.

(f) With respect to members of the fund who are employees of the freezing political subdivision as of the date of the notice under subsection (c), the freezing political subdivision shall continue to contribute the amounts required under IC 5-10.2-2-11 for those employees for the duration of their employment with the freezing political subdivision. In addition, the freezing political subdivision shall contribute to the fund the amount the board determines is necessary to fund fully the benefits attributable to service with the freezing political subdivision that are vested or will become vested and are not anticipated to be fully funded through the continuing contributions under IC 5-10.2-2-11 during the duration of the members' employment with the freezing political subdivision. The board shall collaborate with the freezing political subdivision by sharing the actuarial method and report. The contribution by the freezing participating entity must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years, as determined by the freezing political subdivision.

(g) The Indiana public retirement system may do any of the following to determine a political subdivision's compliance with this section:

(1) Require reports from the political subdivision.

(2) Audit the political subdivision.

As added by P.L.241-2015, SEC.17.

IC 5-10.3-6-8.3Retirement plans offered by political subdivision that withdraws from or freezes participation in fund Sec. 8.3. (a) This section applies to a political subdivision that:

(1) either:

(A) withdraws from the fund under section 8 of this chapter; or

(B) freezes its participation in the fund as described in section 8.2 of this chapter; and

(2) chooses thereafter to offer a retirement plan to its employees.

(b) Except as provided in subsection (c), a political subdivision to which this section applies may offer a retirement plan to its employees only by participating in the defined contribution plan under IC 5-10.3-12.

(c) If, on July 1, 2015, a political subdivision to which this section applies has established or is otherwise participating in a defined contribution plan other than the defined contribution plan under IC 5-10.3-12, the political subdivision may continue to participate in the defined contribution plan in which the political subdivision participated on July 1, 2015.

As added by P.L.241-2015, SEC.18.

IC 5-10.3-6-8.5Certain state university employees involved in health care Sec. 8.5. (a) This section only applies if:

(1) certain employees of a state university in a departmental, occupational, or other definable classification involved in health care are terminated from employment with the state university as a result of:

(A) a lease or other transfer of university property to a nongovernmental entity; or

(B) a contractual arrangement with a nongovernmental entity to perform certain state university functions;

(2) the state university requests coverage under this section from the board; and

(3) the board approves the request.

(b) The withdrawal of the employees described in subsection (a) from the fund is effective on a termination date established by the board. The board may not establish a termination date that occurs before all of the following have occurred:

(1) The state university has requested coverage under this section and provided written notice of the following to the board:

(A) The intent of the state university to terminate the employees from employment.

(B) The names of the terminated employees as of the date that the termination is to occur.

(2) The expiration of a thirty (30) day period following the filing of the notice with the board.

(3) The state university fully complies with subsection (c).

(c) A member who is an employee of the state university described in subsection (a) as of the date of the notice under subsection (b) and who is listed in the notice under subsection (b) is vested in the pension portion of the member's retirement benefit. The state university must contribute to the fund the amount the board determines is necessary to completely fund the vested benefit. The contribution by the state university must be made in a lump sum or in a series of payments determined by the board.

(d) A member who is covered by subsection (c) and who is at least sixty-five (65) years of age may elect to retire under IC 5-10.2-4-1 even if the member has less than ten (10) years of service. The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of creditable service.

(e) The board shall evaluate each withdrawal under this section to determine if the withdrawal affects the fund's compliance with Section 401(a) of the Internal Revenue Code of 1954, as in effect on September 1, 1974. The board may deny an employee permission to withdraw if the denial is necessary to achieve compliance with Section 401(a) of the Internal Revenue Code of 1954, as in effect on September 1, 1974.

As added by P.L.38-1996, SEC.1.

IC 5-10.3-6-8.9State employee terminations resulting from lease or contractual arrangement with nongovernmental entity Sec. 8.9. (a) This section applies when certain employees of the state in particular departmental, occupational, or other definable classifications are terminated from employment with the state as a result of:

(1) a lease or other transfer of state property to a nongovernmental entity; or

(2) a contractual arrangement with a nongovernmental entity to perform certain state functions.

(b) The governor shall request coverage under this section from the board whenever an employee of the state is terminated as described in subsection (a).

(c) The board must approve a request from the governor under subsection (b) unless approval violates subsection (k), federal or state law, or the terms of the fund.

(d) As used in this section, "early retirement" means a member is eligible to retire with a reduced pension under IC 5-10.2-4-1, because the member:

(1) is at least fifty (50) years of age; and

(2) has at least fifteen (15) years of creditable service.

(e) As used in this section, "normal retirement" means a member is eligible to retire under IC 5-10.2-4-1, because:

(1) the member is at least sixty-five (65) years of age and has at least ten (10) years of creditable service;

(2) the member is at least sixty (60) years of age and has at least fifteen (15) years of creditable service; or

(3) the member's age in years plus the member's years of service is at least eighty-five (85) and the member is at least fifty-five (55) years of age.

(f) The withdrawal of the employees described in subsection (a) from the fund is effective on a termination date established by the board. The board may not establish a termination date that occurs before all of the following have occurred:

(1) The governor has requested coverage under this section and provided written notice of the following to the board:

(A) The intent of the state to terminate the employees from employment.

(B) The names of the terminated employees as of the date that the termination is to occur.

(2) The expiration of a thirty (30) day period following the filing of the notice with the board.

(3) The state complies with subsections (g) and (i).

(g) A member who:

(1) is an employee of the state described in subsection (a) with at least twenty-four (24) months of creditable service as of the date of the notice under subsection (f); and

(2) is listed in the notice under subsection (f);

is vested in the pension portion of the member's retirement benefit. The state must contribute to the fund the amount the board determines is necessary to completely fund the vested benefit. The contribution by the state must be made in a lump sum or in a series of payments determined by the board. The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of creditable service.

(h) A member who is covered by subsection (g) and who is at least sixty-five (65) years of age as of the date of the notice under subsection (f) may elect to retire under IC 5-10.2-4-1 even if the member has less than ten (10) years of service. The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of creditable service.

(i) A member who is covered by subsection (f) and who, as of the date of the notice under subsection (f), is less than twenty-four (24) months from being eligible for normal or early retirement under IC 5-10.2-4-1 may elect to retire by purchasing the service credit needed for retirement under the following conditions:

(1) The state shall contribute to the fund an amount determined under IC 5-10.2-3-1.2 and payable from the sources described in subsection (j) sufficient to pay the member's contributions required for the member's purchase of the service credit the member needs to retire.

(2) The maximum amount of creditable service that the state may purchase for a member under this subsection is twenty-four (24) months.

(3) The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of creditable service plus all other service for which the fund gives credit, including the creditable service purchased under this subsection.

(j) The amounts that the state is required to contribute to the fund under subsection (i) must come from the following sources:

(1) If the state receives monetary payments under the lease or contractual arrangement described in subsection (a), the proceeds of the monetary payments received by the state. The state may not require, as a condition of the transaction to transfer state property or have certain state functions performed by a nongovernmental entity, that the nongovernmental entity directly or indirectly pay the amounts that the state is required to contribute under subsection (i).

(2) If the state does not receive any monetary payments under the lease or contractual arrangement described in subsection (a), any remaining appropriations made to the state department, agency, or other entity terminating the employees described in subsection (a).

(3) If the sources described in subdivisions (1) and (2) do not fully fund the amounts that the state is required to contribute to the fund under subsection (i), the board shall request that the general assembly appropriate the amount necessary to fully fund the state's required contribution under subsection (i) in the next biennial state budget.

(k) The board shall evaluate each withdrawal under this section to determine if the withdrawal affects the fund's compliance with Section 401(a) of the Internal Revenue Code of 1954, as in effect on September 1, 1974. The board may deny an employee permission to withdraw if the denial is necessary to achieve compliance with Section 401(a) of the Internal Revenue Code of 1954, as in effect on September 1, 1974.

As added by P.L.47-2006, SEC.3 and P.L.158-2006, SEC.3.

IC 5-10.3-6-9Participation of political subdivision with retirement system Sec. 9. Participation of Political Subdivision with Retirement Systems. If a political subdivision has a retirement system for its employees, it must conduct a referendum, at which seventy-five percent (75%) of all active and retired members vote for participation, before it may follow the procedures in this chapter for participation.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-6-10Transfer of assets Sec. 10. (a) If a political subdivision with a retirement system becomes a participant, the moneys and securities in the retirement system shall be transferred to the fund. If the securities to be transferred are not acceptable to the board, they shall be converted to cash, which shall be transferred to the fund.

(b) If there are insufficient funds transferred under subsection (a), then the political subdivision shall pay the fund, either in a single payment or in installment payments approved by the board, the amount needed. If the political subdivision is unable to make any payment, the board may reduce proportionately each benefit payable to retired members.

(c) The liabilities of a retirement system which is transferred to the fund are not liabilities of the fund, except as provided by agreement between the fund and the political subdivision.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.23-2011, SEC.19.

IC 5-10.3-6-11RepealedAs added by Acts 1977, P.L.53, SEC.3. Repealed by P.L.16-1986, SEC.85.

IC 5-10.3-7Chapter 7. Membership; Creditable Service; Contributions; Withdrawal

5-10.3-7-0.1Application of certain amendments to chapter 5-10.3-7-0.3Legalization of certain actions under section 2 of chapter 5-10.3-7-1Members of fund 5-10.3-7-1.1Election by employee of political subdivision to become fund member; failure to make election 5-10.3-7-2Exclusions from membership 5-10.3-7-2.5Constables 5-10.3-7-2.7Police officers and firefighters 5-10.3-7-3Optional membership 5-10.3-7-3.5State lottery commission members and employees 5-10.3-7-4Creditable service 5-10.3-7-4.3Public employees' defined contribution plan service credit purchase; rollovers and transfers 5-10.3-7-4.5Out-of-state service credit purchase 5-10.3-7-4.6In-state service credit purchase 5-10.3-7-4.7Purchase of service credit earned in 1977 police officers' and firefighters' pension and disability fund 5-10.3-7-4.8State quasi-governmental entity service credit purchase 5-10.3-7-5Military service credit 5-10.3-7-6Leave service credit 5-10.3-7-7Service credits for public service 5-10.3-7-7.5Exclusion of service before prior service credit date contained in resolution 5-10.3-7-7.7Employees of township trustee's office; service credit 5-10.3-7-7.8Repealed 5-10.3-7-7.9Service credits; eligibility; computation 5-10.3-7-8Other service 5-10.3-7-9Member contributions 5-10.3-7-9.5Rollover contributions; trustee to trustee transfers; liability for income tax consequences of transfers 5-10.3-7-9.6State required to make certain contributions 5-10.3-7-10Membership records 5-10.3-7-11Payroll preparation 5-10.3-7-12Certification of deductions; transfer to fund 5-10.3-7-12.5Reports, records, or membership payments; failure to submit 5-10.3-7-13Suspension of membership; withdrawal of contributions 5-10.3-7-14Governor's waiver of membership 5-10.3-7-15Reinstatements of eligibility

IC 5-10.3-7-0.1Application of certain amendments to chapter Sec. 0.1. The amendments made to section 5 of this chapter by P.L.184-2001 apply only to members of the public employees' retirement fund or the Indiana state teachers' retirement fund who retire after June 30, 2001.

As added by P.L.220-2011, SEC.79.

IC 5-10.3-7-0.3Legalization of certain actions under section 2 of chapter Sec. 0.3. Actions taken before April 16, 1987, that would have been valid under section 2 of this chapter, as amended by P.L.62-1987, are legalized and validated.

As added by P.L.220-2011, SEC.80.

IC 5-10.3-7-1Members 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) As used in 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 that is a body politic and corporate;

(7) except as provided under IC 5-10.5-7-4, employees of the board of trustees of the Indiana public retirement system;

(8) persons who:

(A) are employed by the state;

(B) have been classified as federal employees by the United States Secretary of Agriculture; and

(9) the directors and employees of county offices of family and children; and

(10) members and employees of the state lottery commission.

(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.

(d) Except as otherwise provided, 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.

(e) An individual:

(1) who becomes a full-time employee of a political subdivision in a covered position after June 30, 2015;

(2) who is employed by a political subdivision that has elected in an ordinance or resolution adopted under IC 5-10.3-6-1 and approved by the board to require an employee in the covered position to become a member of the fund; and

(3) who is not excluded from membership under section 2 of this chapter;

becomes a member of the fund on the date the individual's employment begins.

(f) An individual:

(1) who becomes a full-time employee of a political subdivision in a covered position after an ordinance or resolution described in subdivision (2) that is adopted by the political subdivision has been approved by the board;

(2) who is employed by a political subdivision that has elected in an ordinance or resolution adopted under IC 5-10.3-6-1 and approved by the board:

(A) to allow an employee in the covered position to become a member of the fund or a member of the public employees' defined contribution plan at the discretion of the employee; and

(B) to require an employee in a covered position to make an election under IC 5-10.3-12-20.5 in order to become a member of the plan;

(3) who does not make an election under IC 5-10.3-12-20.5 to become a member of the public employees' defined contribution plan; and

(4) who is not excluded from membership under section 2 of this chapter;

becomes a member of the fund on the date the individual's employment begins.

(g) An individual:

(2) who is employed by a political subdivision that has elected in an ordinance or resolution adopted under IC 5-10.3-6-1 and approved by the board:

(A) to allow an employee in the covered position to become a member of the fund or the public employees' defined contribution plan at the discretion of the employee; and

(B) to require an employee to make an election under section 1.1 of this chapter in order to become a member of the fund;

(3) who does make an election under section 1.1 of this chapter to become a member of the fund; and

(4) who is not excluded from membership under section 2 of this chapter;

becomes a member of the fund on the date the individual's employment begins.

(h) An individual who makes an election to participate in the fund under IC 5-10.3-12-33 becomes a member of the fund on the date the board receives the election.

As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1978, P.L.24, SEC.4; Acts 1982, P.L.37, SEC.2; P.L.41-1983, SEC.7; P.L.31-1984, SEC.1; P.L.35-1985, SEC.23; P.L.16-1986, SEC.2; P.L.61-1987, SEC.1; P.L.46-1988, SEC.6; P.L.62-1989, SEC.1; P.L.4-1993, SEC.7; P.L.5-1993, SEC.18; P.L.98-2004, SEC.67; P.L.91-2004, SEC.1; P.L.35-2012, SEC.81; P.L.195-2013, SEC.9; P.L.241-2015, SEC.19; P.L.92-2019, SEC.1; P.L.104-2026, SEC.11.

IC 5-10.3-7-1.1Election by employee of political subdivision to become fund member; failure to make election Sec. 1.1. (a) An individual:

(2) who is employed by a political subdivision that has elected in an ordinance or resolution adopted under IC 5-10.3-6-1 and approved by the board:

(A) to allow an employee in the covered position to become a member of the fund or the public employees' defined contribution plan at the discretion of the employee; and

(B) to require an employee to make an election under this section in order to become a member of the fund; and

(3) who is not excluded from membership under section 2 of this chapter;

may elect to become a member of the fund.

(b) An election under this section:

(1) must be made in writing on a form prescribed by the board;

(2) must be filed with the board; and

(3) is irrevocable.

(1) is eligible to make the election under this section; and

(2) does not make the election;

becomes a member of the public employees' defined contribution plan.

(d) An individual described in subsection (a) who separates from employment with a political subdivision and later returns to employment with the political subdivision having had an opportunity to make an election under this section during an earlier period of employment with the political subdivision is not entitled to a second opportunity to make an election under this section with respect to the individual's employment with the political subdivision.

As added by P.L.241-2015, SEC.20. Amended by P.L.209-2016, SEC.1.

IC 5-10.3-7-2Exclusions 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 9-14-10.

(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

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; P.L.195-2013, SEC.10; P.L.198-2016, SEC.10.

IC 5-10.3-7-2.5Constables 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 5-10.3-7-2.7Police 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 5-10.3-7-3Optional 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.

(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 5-10.3-7-3.5State lottery commission members and employees Sec. 3.5. (a) As used in this section, "commission" refers to the state lottery commission established under IC 4-30-3-1.

(b) Not later than July 1, 2014, for each member or employee of the commission who:

(1) is a participant in a defined benefit retirement plan offered by the commission before July 1, 2013; and

(2) becomes a member of the fund on July 1, 2013, under IC 4-30-3-14.5;

the commission shall transfer from the lottery commission defined benefit retirement plan to the retirement allowance account of the fund the amount required to fund the pension portion of each participant's accrued retirement benefit, calculated as if the participant had been in the fund during the participant's service with the lottery commission as of July 1, 2013. If the assets in the lottery commission defined benefit retirement plan are not sufficient to fund the retirement benefit accrued as of July 1, 2013, for the participants described in this subsection, the commission shall pay to the fund, either in a single payment or in installment payments approved by the board, the amount needed to fund the accrued retirement benefits as described in this subsection.

(c) No amounts shall be transferred as of July 1, 2013, to the annuity savings account of the fund for a member described in subsection (b).

(d) A member or employee of the commission who becomes a member of the fund on July 1, 2013, is entitled to receive creditable service in the fund for all service performed for the commission before July 1, 2013.

(e) The liabilities of a retirement plan offered by the commission before July 1, 2013, whose participants are transferred on July 1, 2013, to the fund are not liabilities of the fund, except as provided by agreement between the fund and the commission.

(f) This section shall not be interpreted to diminish the amount of the benefits previously accrued by any member of the commission's plan who is transferred to the fund under this section. To the extent that the member's benefit exceeds the amount due from the fund, the remaining obligation shall be that of the commission alone.

(g) A member or employee of the commission who becomes a member of the fund on July 1, 2013, under IC 4-30-3-14.5 is vested in the pension portion of the member's retirement benefit from the fund. To the extent that the amount transferred to the fund under this section is not sufficient to fund the cost for vesting under this subsection, the remaining obligation shall be that of the commission alone.

As added by P.L.195-2013, SEC.11.

IC 5-10.3-7-4Creditable 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 5-10.3-7-4.3Public employees' defined contribution plan service credit purchase; rollovers and transfers Sec. 4.3. (a) A member of the fund who is also a member of the public employees' defined contribution plan may purchase and claim years of service credit in the fund subject to the following requirements:

(1) The member has at least one (1) year of credited service in the fund.

(2) The member has at least ten (10) years combined in:

(A) credited service in a covered position in the fund; and

(B) years of participation in a covered position in the plan;

before the member may claim the years of service credit.

(3) After acquiring one (1) year of credited service in the fund and before the member retires, the member must make the following contributions to the fund:

(A) Contributions that are equal to the product of the following:

(i) The member's salary at the time the member 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.

(iii) The number of years of service credit that 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.

(b) A member who:

(1) terminates employment before becoming eligible 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 this section plus accumulated interest after submitting an application for a refund to the fund in the manner prescribed by the board.

(1) The board may allow a member to make periodic payments of the contributions required for the purchase of service credit in the fund.

(2) A member may elect to make a transfer of the vested portion of the member's annuity savings account balance attributable to participation in the public employees' defined contribution plan to purchase service credit in the fund.

(3) The board may deny an application for the purchase of service credit in the fund if the purchase would exceed the limitations under Section 415 of the Internal Revenue Code.

(4) A member may not claim the service credit for the purpose of determining eligibility or computing benefits unless the member has made all the payments required for the purchase of the service credit.

(d) To the extent permitted by the Internal Revenue Code and applicable regulations, the fund may accept, on behalf of a fund member who is purchasing service credit under this section, a rollover of a distribution from any of the following:

(1) A qualified plan described in Section 401(a) or 403(a) of the Internal Revenue Code.

(2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.

(3) An eligible plan that is maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or a political subdivision of a state under Section 457(b) of the Internal Revenue Code.

(4) An individual retirement account or annuity described in Section 408(a) or 408(b) of the Internal Revenue Code.

(e) To the extent permitted by the Internal Revenue Code and applicable regulations, the fund may accept, on behalf of a member who is purchasing service credit under this section, a trustee to trustee transfer from any of the following:

(1) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.

(2) An eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.

(f) The member's employer may pay all or a part of the member's contributions required for purchase of service credit under this section. In that event, the actuary shall determine the amortization, and subsections (b), (c)(1), (c)(4), and (d) do not apply.

As added by P.L.209-2016, SEC.2. Amended by P.L.104-2026, SEC.12.

IC 5-10.3-7-4.5Out-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 and claim 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; P.L.8-2015, SEC.2.

IC 5-10.3-7-4.6In-state service credit purchase Sec. 4.6. (a) Subject to the provisions of this section, a member may purchase and claim 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.

(iii) The number of years of service credit the member intends to purchase.

(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.

(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:

(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. Amended by P.L.8-2015, SEC.3.

IC 5-10.3-7-4.7Purchase of service credit earned in 1977 police officers' and firefighters' pension and disability fund Sec. 4.7. (a) As used in this section, "1977 fund" refers to the 1977 police officers' and firefighters' pension and disability fund established by IC 36-8-8-4.

(b) A member may purchase and claim service credit for the member's prior service in a position covered by the 1977 fund subject to the following:

(1) The member must have at least one (1) year of credited service in the fund.

(2) The member must not have attained vested status in and may not be an active member of the 1977 fund.

(3) The member must have at least ten (10) years of credited service in the fund before the member may claim the service credit.

(4) Before the member retires, the member must make 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 makes a contribution for the service credit.

(iii) The number of years of 1977 fund service 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.

(5) The member must receive verification from the fund that the member's service in the 1977 fund is valid.

(c) If a member meets the requirements to purchase service credit under this section and applies to purchase service credit under this section, the board shall transfer from the 1977 fund to the retirement allowance account of the fund:

(1) the member's contributions made under IC 36-8-8-8(a), if the contributions were not returned to the member under IC 36-8-8-8(c); plus

(2) the present value of the unreduced benefit payable upon retirement under IC 36-8-8-10 that is attributable to the member.

The amount a member must contribute to the fund under subsection (b)(4) is reduced by the amount transferred to the fund under this subsection.

(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 this section 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:

(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.

(f) If the requirements of subsection (b) are satisfied, credit for the member's service in a position covered by the 1977 fund that is purchased under this section is waived.

(g) To the extent permitted by the Internal Revenue Code and applicable regulations, the fund may accept, on behalf of a fund member who is purchasing service credit under this section, a rollover of a distribution from any of the following:

(1) A qualified plan described in Section 401(a) or 403(a) of the Internal Revenue Code.

(2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.

(4) An individual retirement account or annuity described in Section 408(a) or 408(b) of the Internal Revenue Code.

(h) To the extent permitted by the Internal Revenue Code and applicable regulations, the fund may accept, on behalf of a member who is purchasing service credit under this section, a trustee to trustee transfer from any of the following:

(1) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.

(2) An eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.

(i) The member's employer may pay all or a part of the member's contributions required for the purchase of service credit under this section. In that event, the actuary shall determine the amortization, and subsections (d), (e)(1), (e)(3), and (g) do not apply.

As added by P.L.8-2015, SEC.4.

IC 5-10.3-7-4.8State 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 and claim 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:

(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. Amended by P.L.8-2015, SEC.5.

IC 5-10.3-7-5Military service credit Sec. 5. (a) A member who:

(1) enters the United States armed services;

(2) leaves the member's contributions in the fund;

(3) except as provided in subsection (c), resumes service with the member's employer within one hundred twenty (120) days after the member's 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 the member:

(1) except as provided in subsection (c), resumes service with the employer within one hundred twenty (120) days after the member's 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 and claim 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 a discharge from the armed services under conditions other than conditions set forth in IC 10-17-12-8.1(2).

(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):

(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; P.L.8-2015, SEC.6; P.L.238-2025, SEC.9; P.L.94-2026, SEC.11.

IC 5-10.3-7-6Leave service credit Sec. 6. (a) A member is entitled to service credit for adoption leave and maternity or paternity leave of not more than one (1) year if the employer certifies that the leave is granted in accordance with the employer's leave policy.

(b) A member is entitled to service credit for leaves of absence, granted under rules in force at the time of the leave, totaling not more than one-eighth (1/8) of the member's creditable service in the fund at the time the leave is taken. However, service credit for leave granted under this subsection may be included in calculating the maximum leave period if the employer makes employer contributions for the employee during the leave period.

(c) If a member receives compensation from the employer during the leave period, the employer must make contributions to the fund for the employee.

(d) A member may make contributions during the leave of absence based on the member's rate of compensation on the date the member's leave of absence began.

(e) 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) or (b).

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.5-1997, SEC.6; P.L.195-1999, SEC.23; P.L.27-2019, SEC.4.

IC 5-10.3-7-7Service 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 5-10.3-7-7.5Exclusion 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(e) 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. Amended by P.L.241-2015, SEC.21.

IC 5-10.3-7-7.7Employees 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 5-10.3-7-7.8RepealedAs added by P.L.61-1989, SEC.2; P.L.333-1989(ss), SEC.2. Repealed by P.L.1-1990, SEC.60.

IC 5-10.3-7-7.9Service 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).

(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 5-10.3-7-8Other 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 5-10.3-7-9Member contributions Sec. 9. (a) This section:

(1) does not apply to a retired member who begins a period of reemployment in a covered position more than thirty (30) days after the member's retirement, except as provided in subdivision (2); or

(2) applies to the entire period of reemployment for a retired member of the public employees' retirement fund who, before July 1, 2013, begins a period of reemployment in a covered position.

(b) Each member shall contribute three percent (3%) of the member's 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; P.L.195-2013, SEC.12.

IC 5-10.3-7-9.5Rollover 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;

(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.

(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; P.L.40-2017, SEC.13.

IC 5-10.3-7-9.6State required to make certain contributions Sec. 9.6. (a) The state shall initiate the contributions required by section 9 of this chapter, as amended by P.L.35-1985, as part of salary and fringe benefit adjustments provided for state employees after June 30, 1986.

(b) The state shall initiate the contributions required by section 9 of this chapter for each governor, lieutenant governor, and attorney general elected or appointed to office after November 7, 1988.

(c) The state shall initiate, for compensation paid after June 30, 1987, the contributions required under section 9 of this chapter for the following persons whose compensation is paid in whole or in part from state funds:

(1) Prosecuting attorneys.

(2) Deputy prosecuting attorneys.

(3) Juvenile court referees and full-time magistrates appointed under IC 31-6-9-2 (before its repeal, now codified at IC 31-31-3).

(4) The master commissioners and full-time magistrates appointed under IC 33-4-1-2.1 (before its repeal, now codified at IC 33-33-2-3), IC 33-4-1-74.3 (before its repeal, now codified at IC 33-33-75-2), IC 33-4-1-75.1 (as amended by P.L.378-1987(ss), before its repeal, now codified at IC 33-33-71-3), and IC 33-4-1-82.1 (before its repeal, now codified at IC 33-33-82-3).

(5) The court commissioner and a full-time magistrate appointed under IC 33-5-29.5-7.1 (as amended by P.L.378-1987(ss), before its repeal, now codified at IC 33-33-45-10).

As added by P.L.220-2011, SEC.81. Amended by P.L.43-2021, SEC.26.

IC 5-10.3-7-10Membership 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 5-10.3-7-11Payroll 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 5-10.3-7-12Certification 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 5-10.3-7-12.5Reports, 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) by another due date specified in section 10 of this chapter; or

(3) by 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 state comptroller for additional withholding under IC 5-10.3-6-7.

(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, IC 5-10.3-12-24, IC 5-10.3-12-24.5, or IC 5-10.3-12-24.7; and

(B) contributions paid by or on behalf of a member under section 9 of this chapter or IC 5-10.3-12-23;

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; P.L.109-2015, SEC.22; P.L.241-2015, SEC.22; P.L.96-2020, SEC.2; P.L.9-2024, SEC.126.

IC 5-10.3-7-13Suspension 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 5-10.3-7-14Governor's waiver of membership Sec. 14. 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 under IC 5-10.2 and this article waives the governor's right to any pension benefit from the fund on and after the date of the governor's irrevocable choice. After the governor makes that irrevocable choice, the governor is entitled, as a member of the fund, to the contributions required under sections 9 and 9.6 of this chapter. The retirement and surviving spouse benefits for a governor are determined in accordance with IC 4-3-3.

As added by Acts 1980, P.L.9, SEC.4. Amended by P.L.92-2021, SEC.8.

IC 5-10.3-7-15Reinstatements 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 5-10.3-8Chapter 8. Benefits

5-10.3-8-0.1Application of certain amendments to chapter 5-10.3-8-1Conditions and computation 5-10.3-8-2State legislators; average of annual compensation; computation 5-10.3-8-3Retirement benefit options 5-10.3-8-4Disability retirement; conditions; computation 5-10.3-8-5Claims of error 5-10.3-8-6Death settlements 5-10.3-8-7Re-employment of retired members 5-10.3-8-8Payment of retirement benefit 5-10.3-8-9Benefits exempted from legal process; reimbursement of employers; withholding payments while charges of criminal taking from employer pending 5-10.3-8-10Assignment of benefits 5-10.3-8-11Federal agricultural employees; federal and state portions of retirement or disability benefit; limitations 5-10.3-8-12Stopping member's benefit payments; grounds; limitations 5-10.3-8-13Public employees' retirement fund benefits; cost of living increase 5-10.3-8-14Retirement medical benefits account 5-10.3-8-15Allocation of benefits; distribution of death benefit

IC 5-10.3-8-0.1Application of certain amendments to chapter Sec. 0.1. The addition of section 13 of this chapter by P.L.191-2002 applies to monthly benefits payable by the public employees' retirement fund after December 31, 2002.

As added by P.L.220-2011, SEC.82.

IC 5-10.3-8-1Conditions and computation Sec. 1. Retirement and Retirement Benefits. The conditions for a member's retirement and the computation of his retirement benefit are stated in IC 5-10.2-4.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-8-2State legislators; average of annual compensation; computation Sec. 2. In computing the pension for a member of the general assembly, the average of the annual compensation is the highest compensation which the member received in any one (1) year while engaged in a position covered by the fund in state service, as a teacher, and in service with a political subdivision.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.381-1987(ss), SEC.4.

IC 5-10.3-8-3Retirement benefit options Sec. 3. Retirement Benefit Options. A member may have his retirement benefits paid under the options specified in IC 5-10.2-4-7.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-8-4Disability retirement; conditions; computation Sec. 4. Disability Retirement and Disability Retirement Benefit. The conditions for a member's disability retirement and the computation of his disability retirement benefit are stated in IC 5-10.2-4-6.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-8-5Claims of error Sec. 5. A member may petition the board to correct an error in the determination of the member's:

(1) creditable service; or

(2) benefit;

at any time. The petition must contain the necessary information to sustain the member's claim of error. The board shall investigate the claim and, if error is found, shall order the member's records corrected. If no error is found and the member petitioned the board to correct the error within six (6) years after the determination of the member's creditable service or benefit, the member may appeal the board's decision under IC 4-21.5.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.99-2010, SEC.4.

IC 5-10.3-8-6Death settlements Sec. 6. Death Settlements. The conditions for payments upon the death of a member before retirement are stated in IC 5-10.2-3.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-8-7Re-employment of retired members Sec. 7. Re-employment of Retired Members. The re-employment of retired members is covered under IC 5-10.2-4.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-8-8Payment of retirement benefit Sec. 8. Except as provided under IC 5-10.2-4-7(f), the retirement benefit is payable in equal monthly installments. The benefit may not be increased, decreased, revoked or repealed except for error or by action of the general assembly.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.115-2009, SEC.12.

IC 5-10.3-8-9Benefits exempted from legal process; reimbursement of employers; withholding payments while charges of criminal taking from employer pending Sec. 9. (a) All benefits, refunds of contributions, and money in the fund are exempt from levy, sale, garnishment, attachment, or other legal process. However, the member's contributions or benefits, or both, may be transferred to reimburse the member's employer for loss resulting from the member's criminal taking of the employer's property by the board if the board receives adequate proof of the loss. The loss resulting from the member's criminal taking of the member's employer's property must be proven by an order for restitution in favor of the employer issued by the sentencing court following a felony or misdemeanor conviction.

(b) The board may withhold payment of a member's contributions and interest if the employer of the member notifies the board that felony or misdemeanor charges accusing the member of the criminal taking of the employer's property have been filed.

(c) The board may withhold payment of a member's contributions and interest under subsection (b) until the final resolution of the criminal charges.

(d) Subsections (b) and (c) do not apply to the:

(1) pension portion of the member's retirement benefit; or

(2) disability retirement benefit of a member who becomes disabled.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.28-1984, SEC.6; P.L.22-1993, SEC.5; P.L.15-2013, SEC.2; P.L.203-2019, SEC.1.

IC 5-10.3-8-10Assignment of benefits Sec. 10. Assignment of Benefits. A member or a beneficiary may not assign any payment except for:

(1) premiums on a life, hospitalization, surgical, or medical group insurance plan maintained in whole or in part by:

(A) a state agency; or

(B) any association that proves to the board's satisfaction that the association has as members at least twenty percent (20%) of the number of the retired members of the fund; and

(2) dues to any association which proves to the board's satisfaction that the association has as members at least twenty percent (20%) of the number of the retired members of the fund.

As added by Acts 1977, P.L.53, SEC.3. Amended by Acts 1980, P.L.28, SEC.9; P.L.12-2008, SEC.2.

IC 5-10.3-8-11Federal agricultural employees; federal and state portions of retirement or disability benefit; limitations Sec. 11. (a) The retirement or disability benefit (including the annuity) provided under this chapter at the date of retirement or disability to a member who:

(1) has been classified as a federal employee by the Secretary of Agriculture of the United States;

(2) was employed after July 1, 1955; and

(3) retires after December 31, 1978, and before July 1, 1987;

may not exceed at the date of retirement or disability, when added to his federal civil service benefit, seventy-four percent (74%) of the average of the annual compensation used in computing his benefit under this chapter. If the sum of his retirement or disability benefit and his federal civil service benefit does exceed seventy-four percent (74%), then the state pension portion of the benefit shall be reduced by the board so that the sum does not exceed that percent. In determination of the annual compensation under this section no more than two (2) tax supported retirement benefits shall be utilized. However, the annuity portion of the benefit may not be reduced by this subsection.

(b) The retirement or disability benefit (excluding the annuity) provided under this chapter at the date of retirement or disability to a member who:

(1) has been classified as a federal employee by the Secretary of Agriculture of the United States;

(2) was employed after July 1, 1955; and

(3) retires after June 30, 1987, and before July 1, 1995;

may not exceed at the date of retirement or disability, when added to the member's federal civil service benefit, eighty-five percent (85%) of the average of the annual compensation used in computing the member's benefit under this chapter. If the sum of the retirement or disability benefit (excluding the annuity) and the federal civil service benefit exceeds eighty-five percent (85%), the state pension portion of the benefit shall be reduced by the board so that the sum does not exceed that percent.

(c) The retirement or disability benefit (excluding the annuity) provided under this chapter at the date of retirement or disability to a member who:

(1) has been classified as a federal employee by the Secretary of Agriculture of the United States;

(2) was employed after July 1, 1955; and

(3) retires after June 30, 1995;

may not exceed at the date of retirement or disability, when added to the member's federal civil service benefit, one hundred percent (100%) of the average of the annual compensation used in computing the member's benefit under this chapter. If the sum of the retirement or disability benefit (excluding the annuity) and the federal civil service benefit exceeds one hundred percent (100%), the state pension portion of the benefit shall be reduced by the board so that the sum does not exceed that percent.

As added by Acts 1978, P.L.24, SEC.6. Amended by P.L.61-1987, SEC.3; P.L.10-1995, SEC.5.

IC 5-10.3-8-12Stopping member's benefit payments; grounds; limitations Sec. 12. (a) The board may stop a member's, survivor's, or beneficiary's benefit if any of the following occur:

(1) The member does any of the following while receiving the benefit:

(A) Fails to report for a required examination, unless excused by the board.

(B) Disobeys the requirements of the board regarding the examination.

(2) A survivor or beneficiary refuses to repay an overpayment of benefits while receiving the benefit or overpayment of benefits made to the member.

(3) The board has reasonable cause to believe:

(A) that the member, survivor, or beneficiary has died; or

(B) in the case of a member receiving disability benefits under IC 5-10.2-4-6, that the member no longer has a disability.

(b) Except as provided in subsection (c), if an overpayment under this section occurs, the board may not require a member, survivor, or beneficiary to pay more than twenty-five percent (25%) of their monthly benefit toward the overpayment.

(1) began before July 1, 2015; and

(2) was caused by no fault of the member, survivor, or beneficiary;

the board may only require a member, survivor, or beneficiary to pay the amount of the overpayment of benefits received during the six (6) years before the date that the Indiana public retirement system discovers the overpayment and attempts to notify the member, survivor, or beneficiary of the overpayment. If an overpayment subject to this subsection occurs, the board may not require a member, survivor, or beneficiary to pay more than ten percent (10%) of their monthly benefit toward the overpayment. The board may not use any method to collect an overpayment of benefits under this subsection other than those specified in this section.

As added by P.L.22-1993, SEC.6. Amended by P.L.99-2007, SEC.17; P.L.92-2021, SEC.9.

IC 5-10.3-8-13Public employees' retirement fund benefits; cost of living increase Sec. 13. (a) The pension portion (plus postretirement increases to the pension portion) provided by employer contributions of the monthly benefit payable to a member of the fund (or to a survivor or beneficiary of a member of the fund) shall be increased beginning on January 1, 2003, by the lesser of:

(1) two percent (2%); or

(2) the annual cost of living adjustment computed under 42 U.S.C. 415 and published in the Federal Register in accordance with 42 U.S.C. 215(i)(2)(D).

(b) The increase described in subsection (a) is payable to a member of the fund (or to a survivor or beneficiary of a member of the fund) who has been retired or disabled for at least one (1) year on January 1, 2003.

As added by P.L.191-2002, SEC.2.

IC 5-10.3-8-14Retirement medical benefits account Sec. 14. (a) Except as provided in subsection (d), this section applies to employees of the state who are:

(1) members of the fund; and

(2) paid by the state comptroller by salary warrants.

(b) Except as provided in subsection (d), this section does not apply to the employees of the state employed by:

(1) a body corporate and politic of the state created by state statute; or

(2) a state educational institution (as defined in IC 21-7-13-32).

(d) The chief executive officer of a body or institution described in subsection (b) may elect to have this section apply to the employees of the state employed by the body or institution by submitting a written notice of the election to the director. An election under this subsection is effective on the later of:

(1) the date the notice of the election is received by the director; or

(2) July 1, 2013.

(e) The board shall adopt provisions to establish a retirement medical benefits account within the fund under Section 401(h) or as a separate fund under another applicable section of the Internal Revenue Code for the purpose of converting unused excess accrued leave to a monetary contribution for an employee of the state to fund on a pretax basis benefits for sickness, accident, hospitalization, and medical expenses for the employee and the spouse and dependents of the employee after the employee's retirement. The state may match all or a portion of an employee's contributions to the retirement medical benefits account established under this section.

(f) The board is the trustee of the account described in subsection (e). The account must be qualified, as determined by the Internal Revenue Service, as a separate account within the fund whose benefits are subordinate to the retirement benefits provided by the fund.

(g) The board may adopt rules under IC 5-10.5-4-2 that it considers appropriate or necessary to implement this section after consulting with the state personnel department. The rules adopted by the board under this section must:

(1) be consistent with the federal and state law that applies to:

(A) the account described in subsection (e); and

(B) the fund; and

(2) include provisions concerning:

(A) the type and amount of leave that may be converted to a monetary contribution;

(B) the conversion formula for valuing any leave that is converted;

(D) the vesting schedule for any leave that is converted.

(h) The board may adopt the following:

(1) Account provisions governing:

(A) the investment of amounts in the account; and

(B) the accounting for converted leave.

(2) Any other provisions that are necessary or appropriate for operation of the account.

(i) The account described in subsection (e) may be implemented only if the board has received from the Internal Revenue Service any rulings or determination letters that the board considers necessary or appropriate.

(j) To the extent allowed by:

(1) the Internal Revenue Code; and

(2) rules adopted by:

(A) the board under this section; and

(B) the state personnel department under IC 5-10-1.1-7.5;

employees of the state may convert unused excess accrued leave to a monetary contribution under this section and under IC 5-10-1.1-7.5.

As added by P.L.220-2005, SEC.6. Amended by P.L.44-2007, SEC.2; P.L.35-2012, SEC.82; P.L.54-2013, SEC.1; P.L.205-2013, SEC.76; P.L.91-2014, SEC.15; P.L.241-2015, SEC.23; P.L.9-2024, SEC.127.

IC 5-10.3-8-15Allocation of benefits; distribution of death benefit Sec. 15. (a) The board may adopt rules to allow a member who designates more than one (1) beneficiary to allocate benefit shares in percentage increments.

(b) This subsection applies in the case of a member who dies after June 30, 2013. Notwithstanding a contrary collateral agreement, court order, process, attachment, or levy, the right to receive a death benefit under IC 5-10.2 or this article vests with the designated beneficiary on file with the fund at the time of the member's death. The fund shall distribute the death benefit to the designated beneficiary or the designated beneficiary's estate in accordance with IC 5-10.2 and this article.

As added by P.L.99-2010, SEC.5. Amended by P.L.15-2013, SEC.3.

IC 5-10.3-9Chapter 9. Administration of Other Retirement Plans

5-10.3-9-1Petitions; requisites 5-10.3-9-2Actuarial investigation; audit of accounts 5-10.3-9-3Administration by board 5-10.3-9-4Advisory board 5-10.3-9-5Repealed 5-10.3-9-6Investments 5-10.3-9-7Separate records 5-10.3-9-8Limited liability

IC 5-10.3-9-1Petitions; requisites Sec. 1. Petition for Administration. (a) The members of a retirement system, other than the Indiana state teachers' retirement fund, may petition the board to assume the administration of their retirement system if:

(1) the system was in existence on March 31, 1947; and

(2) the system is maintained by the state or a political subdivision.

(b) The petition must be signed by at least sixty percent (60%) of the members of the retirement system and must be approved by the employer of the members and the trustees or administrator of the system.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-9-2Actuarial investigation; audit of accounts Sec. 2. Actuarial Investigation and Audit of Accounts. After the board receives the petition:

(1) the actuary shall determine the actuarial soundness of the retirement system; and

(2) the state board of accounts shall audit the records and accounts of the retirement system.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-9-3Administration by board Sec. 3. Administration by the Board. After reviewing the actuarial investigation and audit, the board may choose to administer the plan as a trustee in compliance with the law which created the plan.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-9-4Advisory board Sec. 4. Advisory Board. The board of trustees or administrators of the retirement system shall act as advisors to the fund's director.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.5-1990, SEC.11.

IC 5-10.3-9-5RepealedAs added by Acts 1977, P.L.53, SEC.3. Repealed by P.L.115-2009, SEC.21.

IC 5-10.3-9-6Investments Sec. 6. Investments. All investments made after the transfer shall be made by the board.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-9-7Separate records Sec. 7. Separate Records. The board shall keep separate detailed records of the general or annuitant's reserve of each retirement system which it administers.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-9-8Limited liability Sec. 8. Limited Liability. The liabilities of a retirement system which is administered by the board are not liabilities of the fund, except as provided for in the agreement between the retirement system and the board.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-10Chapter 10. Construction of Codification

5-10.3-10-1Purpose 5-10.3-10-2Headings

IC 5-10.3-10-1Purpose Sec. 1. Purpose of Codification. This article is intended to be a codification and restatement of applicable or corresponding provisions in prior law. A citation to prior law in the Indiana Code shall be construed as a citation to the appropriate provision of this article if the prior law is reenacted in the same or restated form by this article.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-10-2Headings Sec. 2. Headings. The headings prefixed to sections of this article are included for organizational purposes and do not affect the meaning, application, or construction of the sections.

As added by Acts 1977, P.L.53, SEC.3.

IC 5-10.3-11Chapter 11. Pension Relief Fund

5-10.3-11-0.3Repealed 5-10.3-11-1Creation; administration; revenues 5-10.3-11-2Powers and duties of state board 5-10.3-11-3Payments to units of local government; restriction 5-10.3-11-4Certification of information to state board; determination of total pension payments 5-10.3-11-4.5Repealed 5-10.3-11-4.7Distributions to units of local government 5-10.3-11-5Annual report 5-10.3-11-6Repealed

IC 5-10.3-11-0.3RepealedAs added by P.L.220-2011, SEC.83. Repealed by P.L.6-2012, SEC.29.

IC 5-10.3-11-1Creation; administration; revenues Sec. 1. There is created within the public employees' retirement fund a separate account known as the pension relief fund. This fund is administered by the board of trustees of the Indiana public retirement system, referred to as the "state board" in this chapter. The pension relief fund consists of revenues received under IC 6-7-1-28.1(3), IC 7.1-4-12-1, any appropriations to the fund, and earnings on these revenues.

[Pre-Local Government Recodification Citation: 19-1-37.3-1.]

As added by Acts 1980, P.L.8, SEC.45. Amended by P.L.26-1996, SEC.3; P.L.23-2011, SEC.20; P.L.201-2023, SEC.81.

IC 5-10.3-11-2Powers and duties of state board Sec. 2. The state board shall:

(1) make payments from the pension relief fund;

(2) administer the pension relief fund in accordance with the powers and duties granted it in IC 5-10.3-5-3 through IC 5-10.3-5-6, IC 5-10.5-4, and IC 5-10.5-6; and

(3) provide by rule and regulation for the implementation of this chapter.

[Pre-Local Government Recodification Citation: 19-1-37.3-2.]

As added by Acts 1980, P.L.8, SEC.45. Amended by P.L.35-2012, SEC.83.

IC 5-10.3-11-3Payments to units of local government; restriction Sec. 3. The pension relief fund may be used only for making payments to cities, counties, towns, and townships, referred to as "units of local government" in this chapter, having pension funds under IC 36-8-6, IC 36-8-7, or IC 36-8-7.5, and paying reasonable administrative expenses approved by the state board. Payments received by the units may be used only for pension payments from a pension fund listed in this section.

[Pre-Local Government Recodification Citation: 19-1-37.3-3.]

As added by Acts 1980, P.L.8, SEC.45. Amended by P.L.182-2009(ss), SEC.74; P.L.27-2019, SEC.5; P.L.104-2026, SEC.13.

IC 5-10.3-11-4Certification of information to state board; determination of total pension payments Sec. 4. (a) Monies from the pension relief fund shall be paid annually by the state board under the procedures specified in this section.

(b) Each year, before a date set by the state board, each unit of local government must certify to the state board:

(1) the amount of payments made during the preceding year for benefits under its pension funds covered by this chapter, referred to in this section as "pension payments";

(2) the data determined necessary by the state board to perform an actuarial valuation of the unit's pension funds covered by this chapter;

(3) the names required to prepare the list specified in subsection (c); and

(4) any other information that is necessary for the state board to make distributions to units under this chapter.

A unit is ineligible to receive a distribution under this section if it does not supply the complete information required by this subsection or a substantial amount of the information required if it is accompanied by an affidavit of the chief executive officer of the unit detailing the steps which have been taken to obtain the information and the reasons the complete information has not been obtained. The reporting requirement of this subsection is in addition to the reporting requirement of IC 5-11-20.

(c) Each year, before a date set by the state board, the state board shall prepare a list of all police officers and firefighters, active, retired, and deceased if their beneficiaries are eligible for benefits, who are members of a police or fire pension fund that was established before May 1, 1977. The list may not include police officers, firefighters, or their beneficiaries for whom no future benefits will be paid. The state board shall then compute the present value of the accrued liability to provide the pension and other benefits to each person on the list.

(d) Each year, before a date set by the state board, the state board shall determine the total pension payments made by all units of local government for the preceding year and shall estimate the total pension payments to be made to all units in the calendar year in which the July 1 occurs and in the following calendar year.

[Pre-Local Government Recodification Citation: 19-1-37.3-4 part.]

As added by Acts 1980, P.L.8, SEC.45. Amended by Acts 1982, P.L.39, SEC.1; P.L.25-1994, SEC.8; P.L.26-1996, SEC.4; P.L.38-2001, SEC.1; P.L.146-2008, SEC.35; P.L.47-2013, SEC.2.

IC 5-10.3-11-4.5RepealedAs added by P.L.47-1988, SEC.1. Amended by P.L.55-1989, SEC.24; P.L.1-1994, SEC.19; P.L.118-2000, SEC.3. Repealed by P.L.146-2008, SEC.814.

IC 5-10.3-11-4.7Distributions to units of local government Sec. 4.7. (a) In 2009 and each year thereafter, the state board shall distribute from the pension relief fund to each unit of local government the total amount of pension, disability, and survivor benefit payments from the 1925 police pension fund (IC 36-8-6), the 1937 firefighters' pension fund (IC 36-8-7), and the 1953 police pension fund (IC 36-8-7.5) to be made by the unit in the calendar year, as estimated by the state board under section 4 of this chapter.

(b) The state board shall make the distributions under subsection (a) in two (2) equal installments before July 1 and before October 2 of each year.

As added by P.L.38-2001, SEC.2. Amended by P.L.28-2006, SEC.1; P.L.234-2007, SEC.277; P.L.146-2008, SEC.36; P.L.115-2010, SEC.4.

IC 5-10.3-11-5Annual report Sec. 5. At least annually the state board shall report in writing to each affected unit of local government the following information:

(1) The projected pension payments for the next twenty (20) years.

(2) The present value of the total future projected pension payments.

[Pre-Local Government Recodification Citation: 19-1-37.3-4 part.]

As added by Acts 1980, P.L.8, SEC.45. Amended by P.L.47-1985, SEC.7; P.L.26-1996, SEC.5.

IC 5-10.3-11-6RepealedAs added by P.L.38-2001, SEC.3. Amended by P.L.146-2008, SEC.37; P.L.182-2009(ss), SEC.75. Repealed by P.L.104-2026, SEC.14.

IC 5-10.3-12Chapter 12. Public Employees' Defined Contribution Plan

5-10.3-12-1Applicability of chapter 5-10.3-12-2"Account" 5-10.3-12-3"Annuity savings account" 5-10.3-12-4"Board" 5-10.3-12-5"Compensation" 5-10.3-12-6"Dies in the line of duty" 5-10.3-12-7"Effective date" 5-10.3-12-7.5"Employees of the state" 5-10.3-12-8"Employer" 5-10.3-12-9"Employer contribution subaccount" 5-10.3-12-10"Fund" 5-10.3-12-11"Internal Revenue Code" 5-10.3-12-12"Member" 5-10.3-12-13"Member contribution subaccount" 5-10.3-12-14"Normal retirement age" 5-10.3-12-14.5"Participating political subdivision" 5-10.3-12-15"Plan" 5-10.3-12-15.5"Volunteer fire department" 5-10.3-12-16"Years of participation" 5-10.3-12-17Applicability of other laws 5-10.3-12-18Establishment and administration of plan; Internal Revenue Service approval 5-10.3-12-19Authorization to request Internal Revenue Service rulings or determination letters 5-10.3-12-20Plan membership; election; fund membership 5-10.3-12-20.3Election during July 2016, by first time state employee who is fund member 5-10.3-12-20.5Election by employee of political subdivision to become plan member; failure to make election 5-10.3-12-21Plan; member accounts; rollover accounts 5-10.3-12-22Alternative investment programs; stable value fund program; requirements and rules; administrative fees 5-10.3-12-22.5Self-directed brokerage account offering cryptocurrency investment option within the public employees' defined contribution plan 5-10.3-12-23Member required contributions; additional contributions; crediting; employer pick-up and payment 5-10.3-12-24State employer contribution; contribution rate determination; minimum rate; amounts credited; electronic submission of contributions 5-10.3-12-24.5Political subdivision employer contribution; contribution rate determination; amounts credited; electronic submission of contributions 5-10.3-12-24.7Political subdivision contributions; members of a volunteer fire department 5-10.3-12-25Member contributions belong to member; vesting schedule for employer contributions; forfeiture of amounts not vested 5-10.3-12-26Member accounts; withdrawals; forms of payment 5-10.3-12-27Member accounts; beneficiary or survivor withdrawals; forms of payment 5-10.3-12-28Plan exempt from legal process; assignment of payments 5-10.3-12-29Rollover contributions; rollover accounts 5-10.3-12-30Member accounts; disability withdrawals; forms of payment 5-10.3-12-31Effect of reemployment on plan participation 5-10.3-12-32Election by state or participating political subdivision to allow plan participation by retired reemployed fund members 5-10.3-12-33Second chance election

IC 5-10.3-12-1Applicability of chapter Sec. 1. (a) Except as otherwise provided in this section, this chapter applies to the following:

(1) An individual who:

(A) on or after the effective date of the plan, becomes for the first time a full-time employee of the state:

(i) in a position that would otherwise be eligible for membership in the fund under IC 5-10.3-7; and

(ii) who is paid by the state comptroller by salary warrants; and

(B) makes the election described in section 20 of this chapter to become a member of the plan.

(2) An individual:

(A) who becomes a full-time employee of a participating political subdivision in a covered position after an ordinance or resolution described in clause (C) that is adopted by the political subdivision has been approved by the board;

(B) who would otherwise be eligible for membership in the fund under IC 5-10.3-7; and

(C) who is employed by a political subdivision that has elected in an ordinance or resolution adopted under IC 5-10.3-6-1 and approved by the board to require an employee in the covered position to become a member of the plan.

(3) An individual:

(A) who becomes a full-time employee of a political subdivision in a covered position after an ordinance or resolution described in clause (C) that is adopted by the political subdivision has been approved by the board;

(B) who would otherwise be eligible for membership in the fund under IC 5-10.3-7;

(C) who is employed by a political subdivision that has elected in an ordinance or resolution adopted under IC 5-10.3-6-1 and approved by the board:

(i) to allow an employee in the covered position to become a member of the fund or a member of the plan at the discretion of the employee; and

(ii) to require an employee in a covered position to make an election under section 20.5 of this chapter in order to become a member of the plan; and

(D) who makes an election under section 20.5 of this chapter to become a member of the plan.

(4) An individual:

(B) who would otherwise be eligible for membership in the fund under IC 5-10.3-7;

(C) who is employed by a political subdivision that has elected in an ordinance or resolution adopted under IC 5-10.3-6-1 and approved by the board:

(i) to allow an employee in the covered position to become a member of the fund or a member of the plan at the discretion of the employee; and

(ii) to require an employee to make an election under IC 5-10.3-7-1.1 in order to become a member of the fund; and

(D) who does not make an election under IC 5-10.3-7-1.1 to become a member of the fund.

(5) An individual who makes an election described in section 20.3 of this chapter.

(6) An individual:

(A) who is a retired member (as defined in IC 5-10.3-1-5) of the fund;

(B) who is prohibited from making contributions to the fund under IC 5-10.2-4-8(e) during a period of reemployment that begins more than thirty (30) days after the member retired; and

(i) the state files a notice; or

(ii) a participating political subdivision files an adopted ordinance or resolution;

with the board in accordance with section 32 of this chapter, begins, or is engaged in, a period of reemployment with the state or a participating political subdivision as a full-time employee more than thirty (30) days after the individual's retirement in a position that would otherwise be covered by the fund.

(7) An individual who becomes a member of a volunteer fire department in a covered position after a political subdivision served by the volunteer fire department has elected in an ordinance or resolution adopted under IC 5-10.3-6-1.1 and approved by the board to require an individual in the covered position to become a member of the plan.

(b) Except as provided in subsection (c), this chapter does not apply to an individual who, on or after the effective date of the plan:

(1) becomes for the first time a full-time employee of the state in a position that would otherwise be eligible for membership in the fund under IC 5-10.3-7; and

(2) is employed by:

(A) a body corporate and politic of the state created by state statute; or

(B) a state educational institution (as defined in IC 21-7-13-32).

(c) The chief executive officer of a body or institution described in subsection (b) may elect, by submitting a written notice of the election to the director, to have this chapter apply to individuals who, as employees of the body or institution, become for the first time full-time employees of the state in positions that would otherwise be eligible for membership in the fund under IC 5-10.3-7. An election under this subsection is effective on the later of:

(1) the date the notice of the election is received by the director; or

(2) March 1, 2013.

As added by P.L.22-2011, SEC.2. Amended by P.L.54-2013, SEC.2; P.L.241-2015, SEC.24; P.L.193-2016, SEC.14; P.L.209-2016, SEC.3; P.L.96-2020, SEC.3; P.L.9-2024, SEC.128.

IC 5-10.3-12-2"Account" Sec. 2. As used in this chapter, "account" means the plan account established for a member under section 21(b) of this chapter.

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-3"Annuity savings account" Sec. 3. As used in this chapter, "annuity savings account" means the annuity savings account maintained under IC 5-10.2-2-2(a)(1).

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-4"Board" Sec. 4. As used in this chapter, "board" has the meaning set forth in IC 5-10.3-1-1.

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-5"Compensation" Sec. 5. As used in this chapter, "compensation" has the meaning set forth in IC 5-10.2-3-2(a).

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-6"Dies in the line of duty" Sec. 6. As used in this chapter, "dies in the line of duty" has the meaning set forth in IC 5-10-11-2.

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-7"Effective date" Sec. 7. As used in this chapter, "effective date" means the first day of the month that is six (6) months after the month in which the Internal Revenue Service issues an approval of the plan.

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-7.5"Employees of the state" Sec. 7.5. As used in this chapter, "employees of the state" has the meaning set forth in IC 5-10.3-7-1.

As added by P.L.241-2015, SEC.25.

IC 5-10.3-12-8"Employer" Sec. 8. As used in this chapter, "employer" means the state or a participating political subdivision.

As added by P.L.22-2011, SEC.2. Amended by P.L.241-2015, SEC.26.

IC 5-10.3-12-9"Employer contribution subaccount" Sec. 9. As used in this chapter, "employer contribution subaccount" means the subaccount in a member's plan account established under section 21(b)(2) of this chapter.

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-10"Fund" Sec. 10. As used in this chapter, "fund" has the meaning set forth in IC 5-10.3-1-3.

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-11"Internal Revenue Code" Sec. 11. As used in this chapter, "Internal Revenue Code" has the meaning set forth in IC 5-10.2-1-3.5.

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-12"Member" Sec. 12. As used in this chapter, "member" means an individual who has elected or is required to participate in the plan.

As added by P.L.22-2011, SEC.2. Amended by P.L.241-2015, SEC.27.

IC 5-10.3-12-13"Member contribution subaccount" Sec. 13. As used in this chapter, "member contribution subaccount" means the subaccount in a member's plan account established under section 21(b)(1) of this chapter.

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-14"Normal retirement age" Sec. 14. As used in this chapter, "normal retirement age" for a member means the member is at least sixty-two (62) years of age with at least five (5) years of participation in the plan.

As added by P.L.22-2011, SEC.2. Amended by P.L.66-2013, SEC.1.

IC 5-10.3-12-14.5"Participating political subdivision" Sec. 14.5. As used in this chapter, "participating political subdivision" means a political subdivision which is participating in the plan as specified in IC 5-10.3-6.

As added by P.L.241-2015, SEC.28.

IC 5-10.3-12-15"Plan" Sec. 15. As used in this chapter, "plan" refers to the public employees' defined contribution plan established by section 18 of this chapter.

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-15.5"Volunteer fire department" Sec. 15.5. As used in this chapter, "volunteer fire department" has the meaning set forth in IC 36-8-12-2.

As added by P.L.96-2020, SEC.4.

IC 5-10.3-12-16"Years of participation" Sec. 16. As used in this chapter, "years of participation" means periods of participation in the plan in a covered position, plus any additional service for which this chapter provides years of participation credit, except that the term excludes periods of participation in the plan in a covered position for service described in section 1(a)(7) of this chapter.

As added by P.L.22-2011, SEC.2. Amended by P.L.92-2021, SEC.10.

IC 5-10.3-12-17Applicability of other laws Sec. 17. Except as otherwise provided in this chapter or by federal law, and subject to the board obtaining the approval of the Internal Revenue Service as described in section 18(b) of this chapter, the provisions of IC 5-10.3 that apply to the annuity savings account apply to an account established under this chapter.

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-18Establishment and administration of plan; Internal Revenue Service approval Sec. 18. (a) The public employees' defined contribution plan is established for the purpose of providing amounts funded by an employer and a member for the use of the member or the member's beneficiaries or survivors after the member's retirement.

(b) The board shall adopt provisions to implement the plan established under subsection (a) as follows:

(1) The board shall initially offer the plan using the annuity savings account, subject to obtaining the approval of the Internal Revenue Service in a manner satisfactory to the board to preserve the qualified status of the plan and the fund. If, and while, the plan uses the annuity savings account as provided in this subdivision, the plan is a component within the fund.

(2) If the approval of the Internal Revenue Service to offer the plan using the annuity savings account cannot be obtained in a manner satisfactory to the board, the board shall offer the plan as a separate fund under Section 401(a) or another applicable section of the Internal Revenue Code.

(3) If the board initially offers the plan using the annuity savings account as provided under subdivision (1), the board may at any time afterwards convert the plan to a separate fund under Section 401(a) or another applicable section of the Internal Revenue Code. If the board converts the plan to a separate fund as provided under this subdivision, after the conversion the plan is not a component within the fund.

(d) The board may adopt a plan document that it considers appropriate or necessary to administer the plan.

As added by P.L.22-2011, SEC.2. Amended by P.L.27-2019, SEC.6.

IC 5-10.3-12-19Authorization to request Internal Revenue Service rulings or determination letters Sec. 19. The board may request from the Internal Revenue Service any rulings or determination letters that the board considers necessary or appropriate in order to implement or administer the plan.

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-20Plan membership; election; fund membership Sec. 20. (a) This section applies only to an individual who, on or after the effective date of the plan, becomes for the first time a full-time employee of the state in a position that would otherwise be eligible for membership in the fund under IC 5-10.3-7.

(b) An individual to whom this section applies may elect to become a member of the plan for all service credit that the member accrues in a covered position as an employee of the state. An election under this section:

(1) must be made in writing;

(2) must be filed with the board, on a form prescribed by the board; and

(3) is irrevocable.

(c) Except as provided in section 32(a) of this chapter, an individual who does not elect to become a member of the plan becomes a member (as defined in IC 5-10.3-1-5) of the fund for all service credit that the member accrues in a covered position as an employee of the state.

As added by P.L.22-2011, SEC.2. Amended by P.L.241-2015, SEC.29; P.L.209-2016, SEC.4.

IC 5-10.3-12-20.3Election during July 2016, by first time state employee who is fund member Sec. 20.3. (a) This section applies to an individual who:

(1) is an employee of the state on July 1, 2016;

(2) became for the first time, after January 1, 2013, a full-time employee of the state in a position that is eligible for membership in the fund under IC 5-10.3-7; and

(3) is a member (as defined in IC 5-10.3-1-5) of the fund.

(b) An individual to whom this section applies may elect to become a member of the plan. An election under this section:

(1) must be made in writing;

(2) must be filed with the board, on a form prescribed by the board, not later than July 30, 2016; and

(3) is irrevocable.

(1) The individual's service from the date, after January 1, 2013, that the individual first became a full-time employee of the state until the date immediately preceding the date of the individual's election under subsection (b) is considered participation in the plan for purposes of vesting in the employer contribution subaccount under section 25 of this chapter, and the individual waives service credit in the fund for the service.

(2) The amount credited to the individual's annuity savings account in the fund on the date of the individual's election under subsection (b) is transferred to the individual's member contribution subaccount.

(3) The amounts paid to the fund by the state as employer normal cost contributions for the individual from the date, after January 1, 2013, that the individual first became a full-time employee of the state until the date immediately preceding the date of the individual's election under subsection (b) are transferred to the individual's employer contribution subaccount.

As added by P.L.193-2016, SEC.15.

IC 5-10.3-12-20.5Election by employee of political subdivision to become plan member; failure to make election Sec. 20.5. (a) This section applies to an individual described in section 1(a)(3) of this chapter who is otherwise eligible to become a member of the plan.

(b) An individual described in subsection (a) may elect to become a member of the plan on the date the individual begins the individual's employment in a covered position with a political subdivision that participates in the plan. The election applies to all service credit that the member accrues in a covered position as an employee of the political subdivision while the political subdivision participates in the plan.

(1) must be made in writing;

(2) must be filed with the board on a form prescribed by the board; and

(3) is irrevocable.

(d) Except as provided in section 32(b) of this chapter, an individual described in subsection (a) who does not elect to become a member of the plan becomes a member (as defined in IC 5-10.3-1-5) of the fund for all service credit that the member accrues in a covered position as an employee of the political subdivision while the political subdivision participates in the fund.

As added by P.L.241-2015, SEC.30. Amended by P.L.209-2016, SEC.5.

IC 5-10.3-12-21Plan; member accounts; rollover accounts Sec. 21. (a) The plan consists of the following:

(1) Each member's contributions to the plan under section 23 of this chapter.

(2) Contributions made by an employer to the plan on behalf of each member under section 24 or 24.5 of this chapter.

(3) Rollovers to the plan by a member under section 29 of this chapter.

(4) All earnings on investments or deposits of the plan.

(5) All contributions or payments to the plan made in the manner provided by the general assembly.

(b) The plan shall establish an account for each member. A member's account consists of two (2) subaccounts credited individually as follows:

(1) The member contribution subaccount consists of:

(A) the member's contributions to the plan under section 23 of this chapter; and

(B) the net earnings on the contributions described in clause (A) as determined under section 22 of this chapter.

(2) The employer contribution subaccount consists of:

(A) the employer's contributions made on behalf of the member to the plan under section 24 or 24.5 of this chapter; and

(B) the earnings on the contributions described in clause (A) as determined under section 22 of this chapter.

The board may combine the two (2) subaccounts established under this subsection into a single account, if the board determines that a single account is administratively appropriate and permissible under applicable law.

(c) If a member makes rollover contributions under section 29 of this chapter, the plan shall establish a rollover account as a separate subaccount within the member's account.

As added by P.L.22-2011, SEC.2. Amended by P.L.6-2012, SEC.30; P.L.35-2012, SEC.84; P.L.241-2015, SEC.31; P.L.209-2016, SEC.6; P.L.27-2019, SEC.7.

IC 5-10.3-12-22Alternative investment programs; stable value fund program; requirements and rules; administrative fees Sec. 22. (a) Subject to the board obtaining the approval of the Internal Revenue Service as described in section 18(b) of this chapter, the board shall establish:

(1) a stable value fund as the regular investment program for the plan; and

(2) alternative investment programs for the plan.

(b) The board may adopt requirements and rules that apply to the alternative investment programs within the plan, including the following:

(1) The board's investment guidelines and limits for the alternative investment programs.

(2) A member's selection of and changes to the member's investment options.

(3) The valuation of a member's account.

(4) The allocation and payment of administrative expenses for the alternative investment programs.

As added by P.L.22-2011, SEC.2. Amended by P.L.6-2012, SEC.31; P.L.193-2016, SEC.16; P.L.86-2018, SEC.17; P.L.27-2019, SEC.8.

IC 5-10.3-12-22.5Self-directed brokerage account offering cryptocurrency investment option within the public employees' defined contribution plan Sec. 22.5. (a) Not later than July 1, 2027, the board shall offer, as a regular investment program within the plan, a self directed brokerage account that offers at least one (1) cryptocurrency investment option.

(b) The board may adopt requirements and rules that apply to a cryptocurrency investment option under a self directed brokerage account offered under subsection (a), including the following:

(1) The board's investment guidelines and limits for the cryptocurrency investment option.

(2) A member's selection of and changes to the member's investment options.

(3) The valuation of a member's account.

(4) The allocation and payment of administrative expenses for the cryptocurrency investment option.

As added by P.L.49-2026, SEC.7.

IC 5-10.3-12-23Member required contributions; additional contributions; crediting; employer pick-up and payment Sec. 23. (a) This section does not apply to a member of the plan described in section 1(a)(7) of this chapter with respect to the member's service with a volunteer fire department.

(b) Each member's contribution to the plan is equal to three percent (3%) of the member's compensation.

(c) For a member who is an employee of the state, the state shall pay the member's contribution on behalf of the member each year.

(d) For a member who is an employee of a political subdivision, the political subdivision may pay all or part of the member's contribution on behalf of the member.

(e) To the extent permitted by the Internal Revenue Code and applicable regulations, a member of the plan may make contributions to the plan in addition to the contribution required under subsection (b). IC 5-10.2-3-2(c) and IC 5-10.2-3-2(d) govern additional contributions made under this subsection.

(f) Member contributions will be credited to the member's account as specified in IC 5-10.2-3.

(g) Although designated as employee contributions, the contributions made under subsection (c) are picked up and paid by the state as the employer in lieu of the contributions being paid by the employee in accordance with Section 414(h)(2) of the Internal Revenue Code.

(h) Although designated as employee contributions, the contributions made under subsection (d) by a political subdivision may be picked up and paid by the employer instead of the contributions being paid by the employee in accordance with Section 414(h)(2) of the Internal Revenue Code.

(i) A member may not receive any amounts paid by an employer under this section directly instead of having the amounts paid to the plan.

As added by P.L.22-2011, SEC.2. Amended by P.L.5-2014, SEC.1; P.L.241-2015, SEC.32; P.L.96-2020, SEC.5.

IC 5-10.3-12-24State employer contribution; contribution rate determination; minimum rate; amounts credited; electronic submission of contributions Sec. 24. (a) The state shall make employer contributions to the plan based on the rate determined under this section.

(b) The state's contribution rate for the plan is equal to the employer's contribution rate for the fund as determined by the board under IC 5-10.2-2-11(b). The amount credited from the employer's contribution rate to the member's account shall not be greater than the normal cost of the fund. Any amount not credited to the member's account shall be applied to the unfunded accrued liability of the fund as determined under IC 5-10.2-2-11(a)(3) and IC 5-10.2-2-11(a)(4).

(c) The state's minimum contribution under this section is equal to three percent (3%) of the compensation of all members of the plan who are employees of the state.

(d) The state shall submit the employer contributions determined under this section as provided in IC 5-10.2-2-12.5.

As added by P.L.22-2011, SEC.2. Amended by P.L.241-2015, SEC.33.

IC 5-10.3-12-24.5Political subdivision employer contribution; contribution rate determination; amounts credited; electronic submission of contributions Sec. 24.5. (a) This section does not apply to a participating political subdivision's contributions for an individual described in section 1(a)(7) of this chapter with respect to the individual's service with a volunteer fire department.

(b) A participating political subdivision shall make employer contributions to the plan based on the rate determined under this section.

(1) the contribution rate determined by the participating political subdivision under IC 5-10.3-6-1(c); and

(2) the sum, for each member employed by the participating political subdivision, of:

(A) the member's additional contribution to the plan under section 23(e) of this chapter; multiplied by

(B) the participating political subdivision's matching rate determined under IC 5-10.3-6-1(d).

(d) For each employee of a participating political subdivision, the amount credited to the member's account is the part of the employer's contribution determined under subsection (c) that is attributable to the member's compensation and the member's additional contributions.

(e) A participating political subdivision shall submit the employer contributions determined under this section as provided in IC 5-10.2-2-12.5.

As added by P.L.241-2015, SEC.34. Amended by P.L.96-2020, SEC.6.

IC 5-10.3-12-24.7Political subdivision contributions; members of a volunteer fire department Sec. 24.7. (a) This section applies to a participating political subdivision's contributions for an individual described in section 1(a)(7) of this chapter with respect to the individual's service with a volunteer fire department.

(b) The governing body of a participating political subdivision shall determine the participating political subdivision's contribution to the plan for individuals described in section 1(a)(7) of this chapter with respect to the individual's service with the volunteer fire department in accordance with IC 5-10.3-6-1.1.

(c) For each individual described in section 1(a)(7) of this chapter for whom the participating political subdivision makes a contribution under this section, the amount credited to the member's account is the entire amount of the contribution that is made on behalf of the individual. No part of a contribution made on behalf of the individual under this section may be paid into the fund.

(d) A participating political subdivision shall submit the employer contributions determined under this section as provided in IC 5-10.2-2-12.5.

As added by P.L.96-2020, SEC.7.

IC 5-10.3-12-25Member contributions belong to member; vesting schedule for employer contributions; forfeiture of amounts not vested Sec. 25. (a) Member contributions and net earnings on the member contributions in the member contribution subaccount belong to the member at all times and do not belong to any employer.

(b) A member is vested in the employer contribution subaccount in accordance with the following schedule:

Years of participation in the

Vested percentage of

plan

employer contributions

and earnings

20%

40%

60%

80%

100%

For purposes of vesting in the employer contribution subaccount, only a member's full years of participation in the plan may be counted.

(d) A member who attains normal retirement age is fully vested in all amounts in the member's account.

(e) If a member separates from service with the member's employer before the member is fully vested in the employer contribution subaccount, the amount in the employer contribution subaccount that is not vested is forfeited as of the date the member separates from service.

(f) Amounts forfeited under subsection (e) must be used as determined by the board.

(g) A member may not earn creditable service (as defined in IC 5-10.2-3-1(a)) under the plan.

As added by P.L.22-2011, SEC.2. Amended by P.L.6-2012, SEC.32; P.L.241-2015, SEC.35; P.L.104-2026, SEC.15.

IC 5-10.3-12-26Member accounts; withdrawals; forms of payment Sec. 26. (a) After December 31, 2020, subject to the provisions of the Internal Revenue Code applicable to qualified plan distributions, a member who terminates service in a covered position is entitled to withdraw all or part of the amounts in the member's account to the extent the member is vested in the account. A member must make a required withdrawal from the member's account not later than the required beginning date under the Internal Revenue Code.

(b) The member may elect to have withdrawals paid as:

(1) a lump sum;

(2) a direct rollover to another eligible retirement plan; or

(3) if the member has attained normal retirement age, a monthly annuity in accordance with the rules of the board.

(c) The board may establish a minimum account balance or a minimum monthly payment amount in order for a member to select the monthly annuity option. The board shall establish the forms of annuity by rule, in consultation with the board's actuary. The board shall give members information about these forms of payment and any information required by federal law to accompany such distributions.

(d) Unless otherwise required by federal or state law, the requirements and rules that apply to the distribution of the annuity savings account apply to distributions from a member's account.

(e) Subject to the Pension Protection Act of 2006 and notwithstanding any state law, after December 31, 2020, an active member who:

(1) reaches normal retirement age; and

(2) has attained vested status in the fund;

may withdraw all or part of the amount in the member's account without separating from a covered position.

As added by P.L.22-2011, SEC.2. Amended by P.L.6-2012, SEC.33; P.L.66-2013, SEC.2; P.L.27-2019, SEC.9; P.L.51-2020, SEC.5.

IC 5-10.3-12-27Member accounts; beneficiary or survivor withdrawals; forms of payment Sec. 27. (a) If a member dies:

(1) while in service in a position covered by the plan but not in the line of duty; or

(2) after terminating service in a position covered by the plan but before withdrawing the member's account;

to the extent that the member is vested, the member's account shall be paid to the beneficiary or beneficiaries designated by the member on a form prescribed by the board. The amount paid shall be valued as provided in IC 5-10.2-2-3 and IC 5-10.2-2-4 (expired). The board shall invest the total amount in the member's account in the stable value fund not later than thirty (30) days after receiving notification of a member's death.

(b) If there is no properly designated beneficiary, or if no beneficiary survives the member, the member's account shall be paid to:

(1) the surviving spouse of the member;

(2) if there is not a surviving spouse, the surviving dependent or dependents of the member in equal shares; or

(3) if there is not a surviving spouse or dependent, the member's estate.

(c) The beneficiary or beneficiaries designated under subsection (a) or a survivor determined under subsection (b) may elect to have the member's account paid as:

(1) a lump sum;

(2) a direct rollover to another eligible retirement plan; or

(3) a monthly annuity in accordance with rules of the board.

A monthly annuity is an option only on or after the beneficiary or survivor attains sixty-two (62) years of age. The board shall establish the forms of annuity by rule, in consultation with the board's actuary. Further, the board may establish a minimum account balance or a minimum monthly payment amount that is required in order for a beneficiary or survivor to select the monthly annuity option.

(d) If a member dies in the line of duty while in service in a covered position, the designated beneficiary or beneficiaries or the surviving spouse or dependents, as applicable, are entitled to payment of the member's account as provided in this section. In addition, if the member was not fully vested in the employer contribution subaccount, the account is deemed to be fully vested for purposes of withdrawal under this section.

As added by P.L.22-2011, SEC.2. Amended by P.L.86-2018, SEC.18.

IC 5-10.3-12-28Plan exempt from legal process; assignment of payments Sec. 28. (a) All assets in the plan are exempt from levy, sale, garnishment, attachment, or other legal process.

(b) A member, beneficiary, or survivor may not assign any payment under this chapter except for the following:

(1) Premiums on a life, hospitalization, surgical, or medical group insurance plan maintained in part by a state agency.

(2) Dues to an association that proves to the board's satisfaction that the association has as members at least twenty percent (20%) of the retired members in the plan.

As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-29Rollover contributions; rollover accounts Sec. 29. (a) To the extent permitted by the Internal Revenue Code and the applicable regulations and guidance, the plan may accept, on behalf of any member, a rollover distribution from any of the following:

(1) A qualified plan described in Section 401(a) or Section 403(a) of the Internal Revenue Code.

(2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.

(4) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code.

(b) Any amounts rolled over under subsection (a) must be accounted for in a "rollover account" that is separate from the member's account in the plan. The member shall be fully vested in the member's rollover account.

(c) A member may direct the investment of the member's rollover account into any alternative investment option that the board may make available to the member's rollover account under section 22 of this chapter.

(d) A member may withdraw all or part of the member's rollover account from the plan in a lump sum or direct a rollover to an eligible retirement plan at any time. Upon attainment of normal retirement age, in addition to these payment options, the member may withdraw the member's rollover account as a monthly annuity as established by the board in accordance with the annuity options that are available for the member's account in the plan. A member must make a required withdrawal from the member's account in the plan not later than the required beginning date under the Internal Revenue Code.

As added by P.L.22-2011, SEC.2. Amended by P.L.179-2018, SEC.10; P.L.27-2019, SEC.10.

IC 5-10.3-12-30Member accounts; disability withdrawals; forms of payment Sec. 30. (a) If a member becomes disabled while in a covered position, subject to any federal law limitations concerning qualified plan distributions and the member furnishing proof of the member's qualification for Social Security disability benefits to the board, to the extent that the member is vested, the member may make a full or partial withdrawal from the member's account.

(b) The member may elect to have the withdrawal paid as:

(1) a lump sum;

(2) a direct rollover to another eligible retirement plan; or

(3) a monthly annuity in accordance with the rules of the board.

(c) The board may establish a minimum account balance or a minimum monthly payment amount in order for a member to select the monthly annuity option.

As added by P.L.22-2011, SEC.2. Amended by P.L.6-2012, SEC.34; P.L.27-2019, SEC.11.

IC 5-10.3-12-31Effect of reemployment on plan participation Sec. 31. (a) If a member of the plan separates from employment with the member's employer and later begins employment with the same or a different employer in a position covered by the plan:

(1) the member resumes the member's participation in the plan; and

(2) the member is entitled to receive credit for the member's years of participation in the plan before the member's separation.

Any amounts forfeited by the member under section 25(e) of this chapter may not be restored to the member's account.

(b) An individual who returns to state employment having had an opportunity to make an election under section 20 of this chapter during an earlier period of state employment is not entitled to a second opportunity to make an election under section 20 of this chapter.

(c) An individual described in section 1(a)(3) of this chapter who returns to employment with a participating political subdivision having had an opportunity to make an election under section 20.5 of this chapter during an earlier period of employment with the participating political subdivision is not entitled to a second opportunity to make an election under section 20.5 of this chapter with respect to that employer.

As added by P.L.22-2011, SEC.2. Amended by P.L.241-2015, SEC.36; P.L.209-2016, SEC.7; P.L.85-2017, SEC.9.

IC 5-10.3-12-32Election by state or participating political subdivision to allow plan participation by retired reemployed fund members Sec. 32. (a) Notwithstanding section 20 and section 31(b) of this chapter, the state may elect to allow an individual who meets the following conditions to begin or resume membership in the plan for a period of reemployment with the state on the later of the date the board receives notice that the state has made an election under this subsection or the date on which the individual's period of reemployment begins:

(1) The individual is a retired member (as defined in IC 5-10.3-1-5) of the fund.

(2) The individual is prohibited from making contributions to the fund under IC 5-10.2-4-8(e) during a period of reemployment that begins more than thirty (30) days after the member retired.

(3) On or after the date the board receives notice that the state has made an election under this subsection, the individual begins, or is engaged in, a period of reemployment with the state in a position that would otherwise be covered by the fund.

An election by the state under this subsection must be made as provided under IC 5-10.2-2-23 and is effective on the date that notice of the election is filed with the board.

(b) Notwithstanding section 20.5 and section 31(c) of this chapter, a participating political subdivision may adopt an ordinance or resolution allowing an individual who meets the following conditions to begin or resume membership in the plan for a period of reemployment with the participating political subdivision on the later of the date the ordinance or resolution adopted by the participating political subdivision is filed with the board or the date on which the individual's period of reemployment begins:

(1) The individual is a retired member (as defined in IC 5-10.3-1-5) of the fund.

(2) The individual is prohibited from making contributions to the fund under IC 5-10.2-4-8(e) during a period of reemployment that begins more than thirty (30) days after the member retired.

(3) On or after the date a participating political subdivision files an ordinance or resolution adopted under this subsection, the individual begins, or is engaged in, a period of reemployment with a participating political subdivision as a full-time employee in a position that would otherwise be covered by the fund.

An election by a participating political subdivision under this subsection is effective on the date the ordinance or resolution adopted by a participating political subdivision is filed with the board.

As added by P.L.209-2016, SEC.8.

IC 5-10.3-12-33Second chance election Sec. 33. (a) This section applies notwithstanding sections 20, 20.3, 20.5, and 31 of this chapter.

(b) An employer that participates in the fund may allow a member who is fully vested in the employer contribution subaccount under section 25(b) of this chapter to make an election to participate in the fund.

(1) The election must be made:

(A) within a time; and

(B) in a form and manner;

approved by the board.

(2) An employee who makes an election becomes a member of the fund on the date described in IC 5-10.3-7-1(h).

(3) The election is irrevocable.

(d) A member who does not make an election under subsection (b) remains a member of the plan. The failure to make an election under subsection (b) is irrevocable.

As added by P.L.104-2026, SEC.16.

IC 5-10.4ARTICLE 10.4. STATE TEACHERS' RETIREMENT FUND

Ch. 1.General Provisions Ch. 2.Fund Ch. 3.Board Ch. 4.Fund Membership; Employee Contributions; Creditable Service; Purchase of Service; Fund Withdrawal Ch. 5.Benefits Ch. 6.Restricted Benefits Ch. 7.School Corporation Reports and Administration Ch. 8.Teachers' Defined Contribution Plan Ch. 9.Participation by School Corporations in the Defined Contribution Plan

IC 5-10.4-1Chapter 1. General Provisions

5-10.4-1-0.3Legalization of payment of certain benefits 5-10.4-1-0.4Retention of certain accrued creditable service 5-10.4-1-1Purpose 5-10.4-1-2Application 5-10.4-1-3"1996 account" 5-10.4-1-4"Americans with Disabilities Act" 5-10.4-1-5"Board" 5-10.4-1-5.4"Cryptocurrency" 5-10.4-1-6"Director" 5-10.4-1-7"Fund" 5-10.4-1-8"Governing body" 5-10.4-1-9"Member" 5-10.4-1-10"Member's contribution" 5-10.4-1-11"Military service" 5-10.4-1-12"Pre-1996 account" 5-10.4-1-13"School corporation" 5-10.4-1-14Repealed 5-10.4-1-15"Transfer" 5-10.4-1-16"Trustee"

IC 5-10.4-1-0.3Legalization of payment of certain benefits Sec. 0.3. If before June 1, 1985, the board approved a member's choice of retirement date that preceded the member's application for benefits, payments made as a result of the choice of retirement date are legalized.

As added by P.L.220-2011, SEC.84.

IC 5-10.4-1-0.4Retention of certain accrued creditable service Sec. 0.4. (a) The definitions in IC 21-6.1-1 (before its repeal, now codified in this chapter) apply throughout this section.

(b) Notwithstanding IC 21-6.1-4-5 (as amended by P.L.214-1995, before its repeal, now codified at IC 5-10.4-4-7) and IC 21-6.1-4-13(a) (as added by P.L.214-1995, before its repeal, now codified at IC 5-10.4-4-14), and subject to IC 21-6.1-4-13(b) (as added by P.L.214-1995, before its repeal, now codified at IC 5-10.4-4-14), a member who accrued creditable service before January 1, 1995, for leave for other educational employment approved by the board:

(1) retains the creditable service accrued before January 1, 1995, resulting from the leave for other educational employment that was approved by the board; and

(2) continues to accrue creditable service after December 31, 1994, resulting from the leave for other educational employment that was approved before January 1, 1995, by the board.

As added by P.L.220-2011, SEC.85.

IC 5-10.4-1-1Purpose Sec. 1. This article supplements IC 5-10.2 and may not be construed or administered to diminish or nullify the rights, privileges, and benefits conferred by IC 5-10.2, except for the granting and purchase of service credit under IC 21-6.1-4 (before its repeal) or IC 5-10.4-4.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-5-19(a).]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-1-2Application Sec. 2. The definitions in this chapter apply throughout this article.

[2006 Education Finance Recodification Citation: New.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-1-3"1996 account" Sec. 3. "1996 account" refers to the 1996 account established within the fund under IC 5-10.4-2-2.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-6.7.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-1-4"Americans with Disabilities Act" Sec. 4. "Americans with Disabilities Act" refers to the Americans with Disabilities Act (42 U.S.C. 12101 et seq.) and any amendments and regulations related to the Act.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-1.5.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-1-5"Board" Sec. 5. "Board" refers to the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-1.]

As added by P.L.2-2006, SEC.28. Amended by P.L.23-2011, SEC.21.

IC 5-10.4-1-5.4"Cryptocurrency" Sec. 5.4. "Cryptocurrency" has the meaning set forth in IC 2-3.5-2-2.8.

As added by P.L.49-2026, SEC.8.

IC 5-10.4-1-6"Director" Sec. 6. "Director" refers to the director of the Indiana public retirement system established by IC 5-10.5-2-1.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-2.5.]

As added by P.L.2-2006, SEC.28. Amended by P.L.35-2012, SEC.85.

IC 5-10.4-1-7"Fund" Sec. 7. "Fund" refers to the Indiana state teachers' retirement fund:

(1) established by; and

(2) operating under;

this article.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-4.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-1-8"Governing body" Sec. 8. "Governing body" means:

(1) a board of school commissioners;

(2) a metropolitan board of education;

(3) a board of trustees; or

(4) another board or commission;

charged by law with the responsibility of administering the affairs of a school corporation.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-5.]

As added by P.L.2-2006, SEC.28. Amended by P.L.233-2015, SEC.8.

IC 5-10.4-1-9"Member" Sec. 9. "Member" means a person qualifying for membership in the fund under IC 5-10.4-4-1.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-6.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-1-10"Member's contribution" Sec. 10. "Member's contributions" includes contributions paid by the employer of a member for the member to the fund.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-6.5.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-1-11"Military service" Sec. 11. "Military service" means service in the military, naval, or air service of the United States armed forces.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-6.8.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-1-12"Pre-1996 account" Sec. 12. "Pre-1996 account" refers to the pre-1996 account established within the fund under IC 5-10.4-2-2.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-6.9.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-1-13"School corporation" Sec. 13. "School corporation" means a public school corporation established by and under Indiana law. The term includes any:

(1) school city;

(2) school town;

(3) consolidated school corporation;

(4) metropolitan school district;

(5) township school corporation;

(6) county school corporation;

(7) united school corporation; or

(8) community school corporation.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-7.]

As added by P.L.2-2006, SEC.28. Amended by P.L.233-2015, SEC.9.

IC 5-10.4-1-14Repealed[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-8.]

As added by P.L.2-2006, SEC.28. Repealed by P.L.43-2021, SEC.27.

IC 5-10.4-1-15"Transfer" Sec. 15. "Transfer" includes the acts of selling and assigning.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-10.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-1-16"Trustee" Sec. 16. "Trustee" means a member of the board.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-1-11.]

As added by P.L.2-2006, SEC.28. Amended by P.L.35-2012, SEC.86.

IC 5-10.4-2Chapter 2. Fund

5-10.4-2-1Establishment of fund 5-10.4-2-2Accounts 5-10.4-2-2.5Adjustment of employer compensation rate because of certain savings 5-10.4-2-3Proration of expenses among accounts 5-10.4-2-4Required appropriation 5-10.4-2-5Pension stabilization fund 5-10.4-2-5.5Allocation from pension stabilization fund certain amounts 5-10.4-2-6Allocation of interest income

IC 5-10.4-2-1Establishment of fund Sec. 1. (a) The Indiana state teachers' retirement fund is established to be used to pay benefits to teachers and to supervisors of teachers in the public schools after specified years of service and under other specified circumstances.

(b) The board is responsible for the control and management of the fund.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-2-1.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-2-2Accounts Sec. 2. (a) The board shall segregate the fund into the following accounts:

(1) The pre-1996 account.

(2) The 1996 account.

(b) The board shall segregate each of the accounts established under subsection (a) into the following subaccounts:

(1) The annuity savings account.

(2) The retirement allowance account.

(c) Except as provided in subsection (d), member contributions shall be credited to the annuity savings account within the pre-1996 account.

(d) Member contributions made after June 30, 1995, with respect to the following members shall be credited to the annuity savings account within the 1996 account:

(1) An individual who first became a member of the fund after June 30, 1995.

(2) A member who:

(A) before July 1, 1995, served in a position covered by the fund; and

(B) after June 30, 1995, and before July 1, 2005, was hired by another school corporation or institution covered by the fund or rehired by a prior employer.

(3) A member described in subdivision (2) who, after June 30, 2005, is hired by another school corporation or institution covered by the fund or rehired by a prior employer.

(e) Member contributions made to the pre-1996 account with respect to a member covered by subsection (d) shall be transferred to the annuity savings account within the 1996 account.

(f) Employer contributions made after June 30, 1995, with respect to members described in subsection (d) shall be credited to the retirement allowance account within the 1996 account. Employer contributions made after June 30, 1995, with respect to all other members shall be credited to the retirement allowance account within the pre-1996 account.

(g) The board shall administer these accounts and subaccounts as specified in IC 5-10.2-2.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-2-2.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-2-2.5Adjustment of employer compensation rate because of certain savings Sec. 2.5. The board shall adjust the employer contribution rate for the Indiana state teachers' retirement fund to take into account any actuarial savings resulting from the amendment to IC 21-6.1-2-2 (before its repeal, now codified at section 2 of this chapter) by P.L.291-2001.

As added by P.L.220-2011, SEC.86.

IC 5-10.4-2-3Proration of expenses among accounts Sec. 3. (a) The board shall:

(1) prorate the expenses of administration of the fund between the retirement allowance accounts; and

(2) pay the prorated expenses from those accounts.

(b) The board shall pay the expenses for the administration of the system as provided in IC 5-10.5-6-5.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-2-4.]

As added by P.L.2-2006, SEC.28. Amended by P.L.35-2012, SEC.87.

IC 5-10.4-2-4Required appropriation Sec. 4. (a) The general assembly shall appropriate an amount from the state general fund that is sufficient to cover the state's actuarial liability for each member covered by the pre-1996 account and for each state employee covered by the 1996 account. The board may reduce this liability by the amount of interest earned on the deposits in the fund. This liability is determined by the actuarial investigation required by IC 5-10.2-2-9.

(b) The actuarial investigation and the board shall include in the determination of the liability, contribution rate, and appropriation the amount necessary to fully fund any past and estimated future cost of living increases for members of the pre-1996 account and the 1996 account, amortized over a term determined by the board that does not exceed thirty (30) years. However, after June 30, 2018, the actuarial investigation must incorporate the requirements specified in IC 5-10.2-2-9(d), and the board shall segregate from its determination of contributions and contribution rates any amounts attributable to estimated future postretirement benefit increases, thirteenth checks, or other benefit changes or adjustments granted by the general assembly after June 30, 2018.

(1) prepare its budget based on this investigation and for other specified expenditures; and

(2) submit the budget to the governor or to another officer or committee authorized by law to recommend the necessary appropriation.

(d) Each school corporation shall contribute to the 1996 account as specified in IC 5-10.4-7.

(e) If members receive compensation from federal funds, the board shall determine the employer's contribution, excluding administrative expenses, at the end of each fiscal year, to be paid from federal funds. The amount shall be determined by a method adopted by the board that results in an equitable sharing of the employer contribution by the federal government on account of members receiving compensation from federal funds.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-2-5.]

As added by P.L.2-2006, SEC.28. Amended by P.L.111-2015, SEC.3; P.L.127-2018, SEC.10.

IC 5-10.4-2-5Pension stabilization fund Sec. 5. (a) The pension stabilization fund is established. The pension stabilization fund is a part of the pre-1996 account and shall be administered by the board in accordance with the powers and duties granted to the board by IC 5-10.4-3-10 through IC 5-10.4-3-14, IC 5-10.5-4, and IC 5-10.5-6.

(b) The following shall be deposited in the pension stabilization fund:

(1) Amounts allocated to the pension stabilization fund by the board from amounts transferred to the Indiana public retirement system under IC 4-30-16-3.

(2) A part of the employer reserve balance as determined by the budget director so that the employer reserve is sufficient for the cash flow needs.

(3) Other amounts appropriated to the pension stabilization fund by the general assembly.

(c) Payments from the pension stabilization fund must equal the pre-1996 account liabilities for the current fiscal year minus the prior year's state general fund payments for the pre-1996 account multiplied by the pension stabilization percentage set forth in subsection (d).

(d) The pension stabilization percentage is one hundred six percent (106%). The budget agency, after review by the budget committee and with the approval of the governor, may change the pension stabilization percentage so that the present value of future payments from the fund equal the fund's balance plus the present value of future receipts to the fund, but the payments may not allow the fund balance to be negative.

(e) Money in the pension stabilization fund at the end of a state fiscal year does not revert to the state general fund.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-2-8.]

As added by P.L.2-2006, SEC.28. Amended by P.L.35-2012, SEC.88; P.L.127-2018, SEC.11.

IC 5-10.4-2-5.5Allocation from pension stabilization fund certain amounts Sec. 5.5. The board shall allocate from the pension stabilization fund (IC 21-6.1-2-8, before its repeal, now codified at section 5 of this chapter) to the fund's 1996 account an amount equal to the unfunded liability for individuals who were members of the fund's pre-1996 account before July 1, 1995, (and survivors and beneficiaries of these members) who after June 30, 1995, became members of the Indiana state teachers' retirement fund's 1996 account.

As added by P.L.220-2011, SEC.87.

IC 5-10.4-2-6Allocation of interest income Sec. 6. The board shall do the following:

(1) Credit interest to the members' annuity savings accounts in the guaranteed fund (before January 1, 2017), actual earnings to the stable value fund (after December 31, 2016), and actual earnings to the alternative investment programs.

(2) After complying with subdivision (1), distribute any remaining undistributed income reserve as of the end of each accounting period as determined by the rules of the board.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-2-9.]

As added by P.L.2-2006, SEC.28. Amended by P.L.99-2010, SEC.6; P.L.193-2016, SEC.17.

IC 5-10.4-3Chapter 3. Board

5-10.4-3-1Repealed 5-10.4-3-2Repealed 5-10.4-3-3Repealed 5-10.4-3-4Repealed 5-10.4-3-5Repealed 5-10.4-3-6Repealed 5-10.4-3-7Financial information; annualization of data 5-10.4-3-8Repealed 5-10.4-3-9Management of property 5-10.4-3-10Investments 5-10.4-3-10.5Self-directed brokerage account offering cryptocurrency investment option within the annuity savings accounts 5-10.4-3-11Compliance with federal law 5-10.4-3-12Form of securities 5-10.4-3-13Custodial agreements 5-10.4-3-14Management of custodial account 5-10.4-3-15Conflict of interest prohibited 5-10.4-3-16Criminal penalties

IC 5-10.4-3-1Repealed[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-1.]

As added by P.L.2-2006, SEC.28. Repealed by P.L.23-2011, SEC.31.

IC 5-10.4-3-2Repealed[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-2.]

As added by P.L.2-2006, SEC.28. Repealed by P.L.23-2011, SEC.31.

IC 5-10.4-3-3Repealed[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-3.]

As added by P.L.2-2006, SEC.28. Repealed by P.L.23-2011, SEC.31.

IC 5-10.4-3-4Repealed[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-4.]

As added by P.L.2-2006, SEC.28. Repealed by P.L.23-2011, SEC.31.

IC 5-10.4-3-5Repealed[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-5.]

As added by P.L.2-2006, SEC.28. Amended by P.L.107-2010, SEC.3. Repealed by P.L.23-2011, SEC.31.

IC 5-10.4-3-6Repealed[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-6.]

As added by P.L.2-2006, SEC.28. Amended by P.L.107-2010, SEC.4. Repealed by P.L.23-2011, SEC.31.

IC 5-10.4-3-7Financial information; annualization of data Sec. 7. The board shall annually analyze the fund's:

(1) income and expenditures;

(2) actuarial condition;

(3) reserve accounts;

(4) investments; and

(5) such other data as necessary to interpret the fund's condition and the board's administration of the fund;

for internal control purposes.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-6.1.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-3-8Repealed[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-7.]

As added by P.L.2-2006, SEC.28. Repealed by P.L.23-2011, SEC.31.

IC 5-10.4-3-9Management of property Sec. 9. (a) The board is responsible for the fund's property. The board may take and hold any property given outright or on condition to the fund and shall perform the conditions accepted. Unless restricted by a condition, the board may transfer the property when necessary for the fund's benefit.

(b) The board shall receipt:

(1) property belonging to or coming into the fund and shall judiciously invest the property; and

(2) money coming into the fund and, except as specified in sections 13 and 14 of this chapter, shall deposit the money as authorized by the board.

(c) The board shall direct the fund's disbursements on itemized vouchers approved by the president of the board and the director or, in the absence or incapacity of both officers, by another trustee directed by order of the board.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-8.]

As added by P.L.2-2006, SEC.28. Amended by P.L.115-2009, SEC.13.

IC 5-10.4-3-10Investments Sec. 10. (a) The board shall invest its assets with the care, skill, prudence, and diligence that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character with like aims. The board also shall diversify investments in accordance with prudent investment standards, subject to the limitations and restrictions set forth in IC 5-10.2-2-18.

(b) The board may:

(1) make or have investigations made concerning investments; and

(2) contract for and employ investment counsel to advise and assist in the purchase and sale of securities.

(c) The board is not subject to IC 4-13, IC 4-13.6, or IC 5-16 when managing real property as an investment. A management agreement entered into by the board shall ensure that the management agent acts in a prudent manner regarding the purchase of goods and services. Contracts for the management of investment property shall be submitted to the governor, the attorney general, and the budget agency for approval. A contract for the management of real property as an investment:

(1) may not exceed a four (4) year term and must be based upon guidelines established by the board;

(2) may provide that the property manager may collect rent and make disbursements for routine operating expenses such as utilities, cleaning, maintenance, and minor tenant finish needs;

(3) shall establish, consistent with the board's duty under IC 30-4-3-3(c), guidelines for the prudent management of expenditures related to routine operation and capital improvements; and

(4) may provide specific guidelines for the board to:

(A) purchase new properties;

(B) contract for the construction or repair of properties; and

without individual transactions requiring the approval of the governor, the attorney general, the Indiana department of administration, and the budget agency. However, each individual contract involving the purchase or sale of real property is subject to review and approval by the attorney general at the specific request of the attorney general.

(d) Whenever the board takes bids in managing or selling real property, the board shall require a bid submitted by a trust (as defined in IC 30-4-1-1(a)) to identify all the following:

(1) Each beneficiary of the trust.

(2) Each settlor empowered to revoke or modify the trust.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-9.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-3-10.5Self-directed brokerage account offering cryptocurrency investment option within the annuity savings accounts Sec. 10.5. (a) Not later than July 1, 2027, the board shall offer, as a regular investment program within the annuity savings accounts described in IC 5-10.4-2-2, a self directed brokerage account that offers at least one (1) cryptocurrency investment option.

(b) The board may adopt requirements and rules that apply to a cryptocurrency investment option under a self directed brokerage account offered under subsection (a), including the following:

(1) The board's investment guidelines and limits for the cryptocurrency investment option.

(2) A member's selection of and changes to the member's investment options.

(3) The valuation of a member's account.

(4) The allocation and payment of administrative expenses for the cryptocurrency investment option.

As added by P.L.49-2026, SEC.9.

IC 5-10.4-3-11Compliance with federal law Sec. 11. The board's transactions under section 10 of this chapter are subject to IC 5-10.2-2-1.5.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-9.1.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-3-12Form of securities Sec. 12. Each security may be held in bearer form or registered in the name of:

(1) the fund;

(2) a nominee created by the board; or

(3) a nominee of a custodian bank or safekeeping bank, approved by the board.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-11.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-3-13Custodial agreements Sec. 13. (a) The board may enter into a custodial agreement on terms the board considers in the best interest of the fund with a bank or trust company that is domiciled in the United States and approved by the board to:

(1) act in a fiduciary capacity; and

(2) manage custodial accounts;

on behalf of the fund.

(b) The agreement described in subsection (a) may authorize the custodian to:

(1) hold the fund's securities and other investments in the name of the fund or a nominee, or in bearer form;

(2) collect the income and other receipts from the securities and other investments and deposit them subject to the instructions of the board or the board's representative;

(3) reinvest the receipts on the direction of the board or the board's representative;

(4) maintain accounting records and prepare reports as may be required for use by the fund and the state board of accounts; and

(5) perform other services for the board that are appropriate and customary for the custodian.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-13.]

As added by P.L.2-2006, SEC.28. Amended by P.L.90-2008, SEC.3.

IC 5-10.4-3-14Management of custodial account Sec. 14. All income and other receipts from securities may be:

(1) collected by the custodian bank or safekeeping bank approved for that purpose by the board and deposited in the custodial account or a checking account of the board;

(2) reinvested from the custodial account or checking account when the board determines that the receipts may be safely invested; or

(3) withdrawn by the board for the immediate needs of the fund from the checking account or custodial account.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-15.]

As added by P.L.2-2006, SEC.28. Amended by P.L.115-2009, SEC.14.

IC 5-10.4-3-15Conflict of interest prohibited Sec. 15. (a) Except as otherwise provided, a trustee or employee of the board may not have any direct interest in the income of an investment made by the board or may not receive any pay or emolument for services connected with any investment made by the board.

(b) The board may purchase a security or financial interest issued or owned by a:

(1) custodian bank or trust company; or

(2) subsidiary, parent corporation, or holding company of a custodian bank or trust company.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-18.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-3-16Criminal penalties Sec. 16. A person who recklessly violates section 10, 12, 14, or 15 of this chapter is subject to IC 35-44.2-2-4.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-3-19.]

As added by P.L.2-2006, SEC.28. Amended by P.L.126-2012, SEC.16; P.L.32-2019, SEC.7.

IC 5-10.4-4Chapter 4. Fund Membership; Employee Contributions; Creditable Service; Purchase of Service; Fund Withdrawal

5-10.4-4-0.1Application of certain amendments to chapter 5-10.4-4-0.2Application of certain amendments to chapter 5-10.4-4-1Membership 5-10.4-4-2Creditable service 5-10.4-4-2.3Teachers' defined contribution plan service credit purchase; rollovers and transfers 5-10.4-4-3Creditable service earned under prior law 5-10.4-4-4Out-of-state service 5-10.4-4-5Private teaching service 5-10.4-4-6Substitute teaching service 5-10.4-4-7Leaves of absence 5-10.4-4-8Military service credit; teachers; college teacher education; employees at state institutions of higher learning 5-10.4-4-9Computation of state liability 5-10.4-4-10Designation of beneficiary; allocation of benefits 5-10.4-4-11Member contributions to fund 5-10.4-4-12Cash rollover contributions 5-10.4-4-13Withdrawal provisions 5-10.4-4-14Service not related to governmental unit; contribution of employer share

IC 5-10.4-4-0.1Application of certain amendments to chapter Sec. 0.1. The amendments made to section 8 of this chapter by P.L.201-2007 apply to members of the Indiana state teachers' retirement fund who retire after June 30, 2007.

As added by P.L.220-2011, SEC.88.

IC 5-10.4-4-0.2Application of certain amendments to chapter Sec. 0.2. The amendments made to IC 21-6.1-4-6.1 (before its repeal, now codified at section 8 of this chapter) by P.L.184-2001 apply only to members of the public employees' retirement fund or the Indiana state teachers' retirement fund who retire after June 30, 2001.

As added by P.L.220-2011, SEC.89.

IC 5-10.4-4-1Membership Sec. 1. (a) The members of the fund include:

(1) legally qualified and regularly employed teachers in the public schools;

(2) persons employed by a governing body, who were qualified before their election or appointment;

(3) legally qualified and regularly employed teachers at Ball State University, Indiana State University, University of Southern Indiana, and Vincennes University;

(4) legally qualified and regularly employed teachers in a state educational institution whose teachers devote their entire time to teaching;

(5) legally qualified and regularly employed teachers in state benevolent, charitable, or correctional institutions;

(6) legally qualified and regularly employed teachers in an experimental school in a state university who teach elementary or high school students;

(7) as determined by the board, certain instructors serving in a state educational institution extension division not covered by a state retirement law;

(8) employees and officers of the department of education and of the fund who were qualified before their election or appointment;

(9) a person who:

(A) is employed as a nurse appointed under IC 20-34-3-6 by a school corporation located in a city having a population of more than sixty-nine thousand (69,000) and less than sixty-nine thousand five hundred (69,500); and

(B) participated in the fund before December 31, 1991, in the position described in clause (A); and

(10) persons who are employed by the fund.

(b) Teachers in any state institution who accept the benefits of a state supported retirement benefit system comparable to the fund's benefits may not come under the fund unless permitted by law or the rules of the board.

(c) The members of the fund do not include substitute teachers who have not obtained an associate degree or a baccalaureate degree.

(d) Except as provided in IC 5-10.4-8-18, the members of the fund do not include individuals who participate in the teachers' defined contribution plan under IC 5-10.4-8.

(e) An individual who makes an election to participate in the fund under IC 5-10.4-8-18 becomes a member of the fund on the date the board receives the election.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-4-1.]

As added by P.L.2-2006, SEC.28. Amended by P.L.2-2007, SEC.95; P.L.119-2012, SEC.14; P.L.217-2017, SEC.57; P.L.104-2022, SEC.16; P.L.104-2026, SEC.17.

IC 5-10.4-4-2Creditable service Sec. 2. (a) Creditable service is determined under IC 5-10.2-3-1 and this chapter.

(b) A member, whether or not the member is employed under a contract, must serve at least:

(1) one hundred twenty (120) days in a year; or

(2) sixty (60) days in each of two (2) years;

to receive one (1) year of service credit in the fund.

(c) Except as otherwise specified, a member may not be granted more than one (1) year of credit for service in a calendar year or fiscal year.

[Pre-2006 Education Finance Recodification Citation: 21-6.1-4-2.]

As added by P.L.2-2006, SEC.28.

IC 5-10.4-4-2.3Teachers' defined contribution plan service credit purchase; rollovers and transfers Sec. 2.3. (a) A member of the fund who is also a member of the teachers' defined contribution plan may purchase and claim years of service credit in the fund subject to the following requirements:

(1) The member has at least one (1) year of credited service in the fund.

(2) The member has at least ten (10) years combined in:

(A) credited service in a covered position in the fund; and

(B) years of participation in a covered position in the plan;

before the member may claim the years of service credit.

(3) Before the member retires, the member must make the following contributions to the fund: