2013 Indiana Code
TITLE 5. STATE AND LOCAL ADMINISTRATION
ARTICLE 10.2. PUBLIC RETIREMENT AND DISABILITY BENEFITS
CHAPTER 2. THE RETIREMENT FUNDS
Download as PDF
<![CDATA[
IC 5-10.2-2
Chapter 2. The Retirement Funds
IC 5-10.2-2-0.1
Application of certain amendments to chapter
Sec. 0.1. The addition of section 18 of this chapter by
P.L.224-2003 applies only to investments made after June 30, 2003.
As added by P.L.220-2011, SEC.71.
IC 5-10.2-2-1
Scope; 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 5-10.2-2-1.5
Qualification 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
(C) compute benefits of members or beneficiaries;
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 5-10.2-2-2
Separate 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.
(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.
(c) Within each account specified in subsection (b), the board
shall maintain the following separate subaccounts:
(1) The annuity savings account.
(2) The retirement allowance 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.
IC 5-10.2-2-2.5
Investment 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,
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.
IC 5-10.2-2-3
Annuity savings account; guaranteed programs; 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 or the gain or loss in market value on these contributions
in the alternative investment program, as specified in section 4
of this chapter.
Each member shall be credited individually with the amount of the
member's contributions and interest credits.
(b) The board shall maintain the annuity savings account program
in effect on December 31, 1995 (referred to in this chapter as the
guaranteed program). In addition, the board shall establish and
maintain a guaranteed program within the 1996 account. 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, 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 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 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 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; and
(B) for any guaranteed program balance, the account balance
on the effective date.
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.
(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 or to the guaranteed program, 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) 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.
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.
IC 5-10.2-2-3.3
Crediting 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 under
section 3 of this chapter shall be treated as properly credited.
As added by P.L.220-2011, SEC.72.
IC 5-10.2-2-4
Interest; omitted contributions
Sec. 4. (a) Except as provided in subsection (e), interest shall be
credited and compounded at least annually on all amounts credited
to the member in the guaranteed program. For the guaranteed
program, the board shall annually establish an interest credit rate
equal to or less than the investment income earned.
(b) 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.
(c) Contributions to the guaranteed 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. Contributions to the guaranteed
program shall begin to accumulate interest at the beginning of the
quarter after the quarter in which the contributions are received or at
an alternate time established by the rules of the board.
(d) When a member retires or withdraws with a balance in the
guaranteed program, a proportional interest credit determined by the
board shall be granted for the period elapsed since the last interest
date on that balance.
(e) This subsection applies whenever the board is required to
establish an interest or earnings rate in order to credit interest or
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 interest rate and the period to which the
rate applies for the purpose of computing the interest credits on
a member's contributions (including omitted contributions) in
the guaranteed fund; 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 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.
IC 5-10.2-2-5
Repealed
(Repealed by P.L.55-1989, SEC.67.)
IC 5-10.2-2-6
Retirement 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. The retirement allowance account
also includes any amounts received under IC 5-10.3-12-24(b). 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.
(c) The retirement allowance account of the 1996 account consists
of the 1996 account, exclusive of the annuity savings 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.
IC 5-10.2-2-7
Transfer 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 5-10.2-2-8
Payment 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 retirement benefits 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 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. The funds in which the employee was
a member shall pay to the fund responsible for payment of benefits:
(1) the amount credited to the member in the annuity savings
account; and
(2) 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:
(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 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.
IC 5-10.2-2-9
Actuarial 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 and for the
1996 account 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 or account, 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
thirty (30) years. The actuary shall consult with the budget agency in
making this determination.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.54-1993,
SEC.9; P.L.246-2005, SEC.48.
IC 5-10.2-2-10
Mortality 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 5-10.2-2-11
Contribution rate determination; contribution rate groups;
unfunded accrued liability
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.
(c) 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).
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.
IC 5-10.2-2-11.5
Employer 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 5-10.2-2-12
State 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 5-10.2-2-12.5
Submission 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).
(c) Except as provided in subsection (e), an employer shall submit
through the use of electronic funds transfer:
(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 5-10.2-2-13
Custodial 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 5-10.2-2-14
Transfer 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 5-10.2-2-15
Repealed
(Repealed by P.L.1-2002, SEC.172.)
IC 5-10.2-2-16
Repealed
(Repealed by P.L.23-2011, SEC.31.)
IC 5-10.2-2-17
Repealed
(Repealed by P.L.23-2011, SEC.31.)
IC 5-10.2-2-18
Investment in high growth companies; goal percentages
Sec. 18. (a) As used in this section, "high growth company" means
a sole proprietorship, firm, corporation, partnership, limited liability
company, limited liability partnership, joint venture, trust, syndicate,
or other business unit or association that:
(1) is primarily focused on commercialization of research and
development, technology transfers, or the application of new
technology or is determined by the Indiana economic
development corporation to have significant potential to:
(A) bring substantial capital into Indiana;
(B) create jobs;
(C) diversify the business base of Indiana; or
(D) significantly promote the purposes of this chapter in any
other way;
(2) has had an average annual net worth of less than twenty
million dollars ($20,000,000) in each of the last two (2)
calendar years; and
(3) is not engaged in a business involving:
(A) real estate;
(B) real estate development;
(C) insurance;
(D) professional services provided by an accountant, a
lawyer, or a physician;
(E) retail sales, except when the primary purpose of the
business is the development or support of electronic
commerce using the Internet; or
(F) gas and oil exploration.
A company that meets the definition of a high growth company under
this subsection shall be considered to meet the definition even if
affiliated with one (1) or more other companies that do not meet the
definition and regardless of whether any of the affiliated companies
is engaged in a business involving the matters described in
subdivision (3).
(b) As used in this section, "Indiana high growth company" means
a high growth company as defined in subsection (a) that:
(1) has its headquarters in Indiana; and
(2) has:
(A) at least fifty percent (50%) of its employees residing in
Indiana; or
(B) at least seventy-five percent (75%) of its assets located
in Indiana.
(c) If the board decides to allocate part of the fund assets to funds
investing in high growth companies, the board is strongly encouraged
to establish the following:
(1) A goal for investment in funds investing in Indiana high
growth companies of at least twenty-five percent (25%) of the
amount allocated to funds investing in high growth companies.
(2) A preference for investments described in subdivision (1)
that are started in or assisted by Indiana universities and
colleges.
(d) The board has five (5) years after the date the goals in
subsection (c) are adopted to achieve the goal percentages.
(e) The board is not required to achieve the goal percentages
under subsection (c) if the board, exercising financial and fiduciary
prudence, determines that sufficient appropriate investments in
privately held equity or debt assets are not available in Indiana.
(f) This section expires July 1, 2013.
As added by P.L.224-2003, SEC.186. Amended by P.L.4-2005,
SEC.24.
IC 5-10.2-2-19
Repealed
(Repealed by P.L.23-2011, SEC.31.)
]]>
Disclaimer: These codes may not be the most recent version. Indiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
