2006 Indiana Code - CHAPTER 8. HIGHER EDUCATION RETIREMENT BENEFITS

IC 21-6.1-8-0.5
Application
     Sec. 0.5. This chapter applies to an institution of higher education that had at least one (1) employee who was a fund member on July 1, 1980.
As added by P.L.2-2006, SEC.173.

IC 21-6.1-8-1
Definitions
     Sec. 1. The following definitions apply throughout this chapter:
        (1) "Compensation" means:
            (A) the fiscal year salary received by an employee; plus
            (B) an amount not to exceed two thousand dollars ($2,000) received from the institution of higher education in contemplation of the employee's retirement, including severance pay, termination pay, retirement bonus, or commutation of sick leave or personal leave.
        (2) "Fund" refers to the Indiana state teachers' retirement fund established by IC 5-10.4-2-1.
        (3) "Fund member" means a person who qualifies for membership in the fund under IC 5-10.4-4-1.
        (4) "Institution of higher education" means an institution of higher education that is supported in whole or in part by the state.
        (5) "Retirement benefit system" means a retirement benefit system established by an institution of higher education after June 30, 1980.
As added by Acts 1980, P.L.28, SEC.16. Amended by P.L.2-2006, SEC.174.

IC 21-6.1-8-2
Participation in retirement benefit system
     Sec. 2. (a) An institution of higher education may establish a retirement benefit system for the employees of the institution of higher education.
    (b) If an institution of higher education establishes a retirement benefit system under subsection (a) that includes as participants employees who otherwise qualify as fund members, the institution of higher education must allow an employee who otherwise qualifies as a fund member to elect whether to participate in the retirement benefit system. If an employee who otherwise qualifies as a fund member elects to participate in a retirement benefit system established under subsection (a), subsections (c) through (j) apply.
    (c) If an employee is a contributing fund member at the time the employee elects under subsection (b) to participate in a retirement benefit system, the employee's rights in the fund on the date the employee's election is effective are the same as if the employee had

terminated employment on that date.
    (d) The service of an employee who is participating in a retirement benefit system may not be used to earn service credit, years of service, or for any other purpose by the fund.
    (e) After an employee's election under subsection (b) to become a participant in a retirement benefit system is effective, the employee is not entitled to rejoin the fund while the employee remains employed by the institution of higher education.
    (f) If an employee is a contributing fund member at the time the employee elects under subsection (b) to become a participant in a retirement benefit system, the employee's election and suspension of membership in the fund are effective on July 1 immediately following the date the employee files the election with the institution of higher education.
    (g) If an employee is not a contributing fund member at the time the employee is initially hired by an institution of higher education that has established a retirement benefit system under subsection (a), the employee may file an election under subsection (b) to participate in the employer's retirement benefit system not later than sixty (60) calendar days after the employee's initial employment date, and the election is effective as if it had been made on the employee's initial employment date.
    (h) An employee's election under subsection (b) must be in writing and is not effective until filed with the institution of higher education.
    (i) The institution of higher education shall inform the board of trustees of the fund of:
        (1) the employee's election to participate in the retirement benefit system established under subsection (a); and
        (2) the effective date of the employee's election.
    (j) An employee may not be both an active:
        (1) fund member; and
        (2) retirement benefit system participant;
at the same time.
As added by Acts 1980, P.L.28, SEC.16. Amended by P.L.2-2006, SEC.175.

IC 21-6.1-8-3
Payments to institution of higher education
     Sec. 3. (a) If an institution of higher education establishes a retirement benefit system applicable to employees of the institution who otherwise qualify as members of the fund under IC 21-6.1-4-1, the general assembly shall appropriate to an institution of higher education that establishes a retirement benefit system under section 2 of this chapter for the purpose of funding the retirement benefit system an amount estimated to be equal to seven and four-tenths percent (7.4%) of the compensation of an employee who makes the election described in section 2(b) of this chapter and becomes a participant in the retirement benefit system of the institution of higher education for all or a part of the period of the appropriation.     (b) The institution of higher education shall estimate the sum described in subsection (a) and submit the estimate to the budget agency and to the commission for higher education for inclusion in the operating appropriation of the institution of higher education.
    (c) The estimate described in subsection (b) must be submitted at the same time but separately from the request of the institution of higher education for an operating appropriation.
As added by Acts 1980, P.L.28, SEC.16. Amended by P.L.2-2006, SEC.176.

IC 21-6.1-8-4
Interpretation
     Sec. 4. This chapter does not limit the authority given to an institution of higher education under any other law.
As added by Acts 1980, P.L.28, SEC.16. Amended by P.L.2-2006, SEC.177.