2013 Indiana Code
TITLE 5. STATE AND LOCAL ADMINISTRATION
ARTICLE 10.3. THE PUBLIC EMPLOYEES' RETIREMENT FUND
CHAPTER 8. BENEFITS
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IC 5-10.3-8
Chapter 8. Benefits
IC 5-10.3-8-0.1
Application 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 5-10.3-8-1
Conditions 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 5-10.3-8-2
State 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 5-10.3-8-3
Retirement 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 5-10.3-8-4
Disability 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 5-10.3-8-5
Claims 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 5-10.3-8-6
Death 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 5-10.3-8-7
Re-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 5-10.3-8-8
Payment 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 5-10.3-8-9
Benefits 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.
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.
IC 5-10.3-8-10
Assignment 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 5-10.3-8-11
Federal 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 5-10.3-8-12
Stopping member's benefit payments; grounds
Sec. 12. The board may stop a member's benefit if either of the
following occurs:
(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.
(C) Refuses to repay an overpayment of benefits.
(2) The board has reasonable cause to believe:
(A) that the member 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.
As added by P.L.22-1993, SEC.6. Amended by P.L.99-2007, SEC.17.
IC 5-10.3-8-13
Public 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 5-10.3-8-14
Retirement medical benefits account
Sec. 14. (a) Except as provided in subsection (c), this section
applies to employees of the state (as defined in IC 5-10.3-7-1(d))
who are:
(1) members of the fund; and
(2) paid by the auditor of state by salary warrants.
(b) Except as provided in subsection (c), this section does not
apply to the employees of the state (as defined in IC 5-10.3-7-1(d))
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).
(c) 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 (as defined in IC 5-10.3-7-1(d)) 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.
(d) 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.
(e) The board is the trustee of the account described in subsection
(d). 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.
(f) 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 (d); 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;
(C) the manner of employee selection of leave conversion;
and
(D) the vesting schedule for any leave that is converted.
(g) 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.
(h) The account described in subsection (d) 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.
(i) 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.
(j) To the extent allowed by the Internal Revenue Code, the
account described in subsection (d) must include provisions that:
(1) require an employee of the state to convert to a monetary
contribution to the account at retirement the balance, but not
more than thirty (30) days, of unused vacation leave for which
the state would otherwise pay an employee in good standing at
separation from service (as determined by state personnel
department rule); and
(2) allow the state to contribute to the account on the
employee's behalf an amount not to exceed two (2) times the
amount of the employee's contribution under subdivision (1).
(k) The account described in subsection (d) must be implemented
on July 1, 2014.
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.
IC 5-10.3-8-15
Allocation 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.
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