2015 Indiana Code TITLE 2. GENERAL ASSEMBLY ARTICLE 3.5. LEGISLATIVE RETIREMENT BENEFITS CHAPTER 3. LEGISLATORS' RETIREMENT SYSTEM
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IC 2-3.5-3
Chapter 3. Legislators' Retirement System
IC 2-3.5-3-1
Application of chapter; election
Sec. 1. (a) This chapter applies to:
(1) each member of the general assembly who is serving on
April 30, 1989, and who files an election under subsection (b);
and
(2) each member of the general assembly who is elected or
appointed after April 30, 1989.
(b) A member of the general assembly who is serving on April 30,
1989, may elect to have the member's years of service in the general
assembly covered by this chapter, IC 2-3.5-4, and IC 2-3.5-5 instead
of IC 5-10.2, IC 5-10.3, and IC 5-10.4. An election under this
subsection:
(1) must be made in writing;
(2) must be filed with the PERF board (as it existed before its
dissolution on July 1, 2011) on a form prescribed by the board;
(3) must be made before January 1, 1990; and
(4) is irrevocable.
(c) Notwithstanding subsection (b), if a member of the general
assembly files an election under subsection (b), the board shall
include all of the member's years of service in the general assembly
in the determination of eligibility for benefits under PERF or TRF.
However, except as provided by IC 2-3.5-1-2(b), the board shall not
include in the computation of benefits from PERF or TRF the
member's:
(1) salary as a member of the general assembly received after
April 30, 1989; or
(2) years of service as a member of the general assembly after
April 30, 1989.
As added by P.L.6-1989, SEC.1. Amended by P.L.4-1990, SEC.1;
P.L.2-2006, SEC.3; P.L.35-2012, SEC.4.
IC 2-3.5-3-2
Establishment; content; funds; administration
Sec. 2. (a) The legislators' retirement system is established. The
system consists of the legislators' defined benefit plan described in
IC 2-3.5-4 and the legislators' defined contribution plan described in
IC 2-3.5-5.
(b) The following funds are established:
(1) The fund for the legislators' defined benefit plan.
(2) The fund for the legislators' defined contribution plan.
Each of the funds shall be administered by the board. Each of the
funds is a trust, separate and distinct from all other entities,
maintained for the purpose of paying benefits to participants and their
beneficiaries and paying the costs associated with administering the
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plan.
(c) The board shall adopt rules under IC 4-22-2 necessary for the
administration of the plans and funds described in subsections (a) and
(b).
As added by P.L.6-1989, SEC.1. Amended by P.L.35-2012, SEC.5.
IC 2-3.5-3-3
Qualification requirements
Sec. 3. The legislators' retirement system shall satisfy the
qualification requirements in Section 401 of the Internal Revenue
Code, as applicable to the system. In order to meet those
requirements, the system is subject to the following provisions,
notwithstanding any other law:
(1) The board shall distribute the corpus and income of the
funds to participants and their beneficiaries in accordance with
this chapter, IC 2-3.5-4, and IC 2-3.5-5.
(2) No part of the corpus or income of the funds may be used for
or diverted to a purpose other than the exclusive benefit of the
participants and their beneficiaries.
(3) Forfeitures arising from severance of employment, death, or
for any other reason may not be applied to increase the benefits
a participant would otherwise receive under this chapter,
IC 2-3.5-4, and IC 2-3.5-5.
(4) If the system is terminated, or if all contributions to the
system are completely discontinued, the rights of each affected
participant to the benefits accrued at the date of termination or
discontinuance, to the extent then funded, are nonforfeitable.
(5) All benefits paid from the system 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, the funds are subject to the
following provisions:
(A) The life expectancy of a participant, the participant's
spouse, or the participant's beneficiary may not be
recalculated after the initial determination for purposes of
determining benefits.
(B) If a participant dies before the distribution of the
participant'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 participant'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
(C) compute benefits of participant's beneficiaries;
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in a manner that discriminates in favor of participants 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, IC 2-3.5-4, and IC 2-3.5-5
may not exceed the maximum benefits and contributions
specified by Section 415 of the Internal Revenue Code. If a
participant's benefits under this chapter, IC 2-3.5-4, and
IC 2-3.5-5 would exceed those maximum benefits and
contributions, the benefit payable under IC 2-3.5-4 shall be
reduced as necessary.
(8) The salary taken into account under this chapter, IC 2-3.5-4,
and IC 2-3.5-5 may not exceed the applicable amount 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.6-1989, SEC.1. Amended by P.L.4-1990, SEC.3;
P.L.35-2012, SEC.6.
IC 2-3.5-3-4
PERF board; powers and duties; confidentiality of system records
Sec. 4. (a) The board shall administer the system, which may be
commingled for investment purposes with the other funds
administered by the board.
(b) The board shall:
(1) determine eligibility for and make payments of benefits
under this chapter, IC 2-3.5-4, and IC 2-3.5-5;
(2) in accordance with the powers and duties granted in
IC 5-10.3-3-7.1, IC 5-10.3-5-3 through IC 5-10.3-5-6,
IC 5-10.5-4, and IC 5-10.5-6, administer the system;
(3) provide by rule for the implementation of this chapter,
IC 2-3.5-4, and IC 2-3.5-5; and
(4) authorize deposits.
(c) A determination by the board may be appealed under
IC 4-21.5.
(d) The powers and duties of:
(1) the director and the actuary of the board; and
(2) the attorney general;
with respect to the fund are those specified in IC 5-10.3-3,
IC 5-10.3-4, IC 5-10.5-4, and IC 5-10.5-6.
(e) The board may hire additional personnel, including hearing
officers, to assist in the implementation of this chapter.
(f) Legislators' retirement system records of individual participants
and participants' information are confidential, except for the name
and years of service of a retirement system participant.
As added by P.L.6-1989, SEC.1. Amended by P.L.5-1990, SEC.1;
P.L.94-2004, SEC.2; P.L.99-2010, SEC.1; P.L.35-2012, SEC.7.
IC 2-3.5-3-5
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Rollover of eligible distributions
Sec. 5. Notwithstanding any other provision of this article, 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), the legislators' defined benefit plan and the
legislators' defined contribution plan shall allow participants and
qualified beneficiaries to elect a direct rollover of eligible
distributions to another eligible retirement plan.
As added by P.L.10-1993, SEC.1.
IC 2-3.5-3-6
Administration; service credit and benefits
Sec. 6. (a) Notwithstanding any provision of this article, the
legislator's retirement system shall 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.
(b) Notwithstanding any provision of this article, a participant 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.).
As added by P.L.5-1997, SEC.1.
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