2013 Indiana Code
TITLE 5. STATE AND LOCAL ADMINISTRATION
ARTICLE 10. PUBLIC EMPLOYEE BENEFITS
CHAPTER 8.5. RETIREMENT MEDICAL BENEFITS ACCOUNT
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IC 5-10-8.5
Chapter 8.5. Retirement Medical Benefits Account
IC 5-10-8.5-0.1
Application of certain amendments to chapter
Sec. 0.1. The amendments made to section 18 of this chapter by
P.L.124-2008 apply to premiums paid after July 31, 2007, for
individual or group health coverage for a retired participant and the
spouse and dependents of a retired participant.
As added by P.L.220-2011, SEC.69.
IC 5-10-8.5-1
Application of chapter
Sec. 1. (a) Except as provided in this section, this chapter applies
to an individual who is one (1) of the following:
(1) An employee of the executive, legislative, or judicial branch
of state government.
(2) A state elected or appointed officer.
(3) A member of the general assembly.
(4) An elected officer paid by the state.
(5) An officer paid by the state under IC 33-23-5-10,
IC 33-38-5-7, or IC 33-39-6-2.
(b) An individual described in subsection (a) other than the
following is a participant in the retirement medical benefits account:
(1) A conservation officer of the department of natural
resources.
(2) An employee of the state excise police.
(3) An employee of the state police department, other than the
following:
(A) An employee of the state police department who waived
coverage under a common and unified plan of self-insurance
under IC 5-10-8-6 before July 1, 2011.
(B) An employee of the state police department who makes
an election under IC 5-10-8.5-9.5.
(C) An employee of the state police department who makes
an election under IC 5-10-8.5-9.6.
As added by P.L.44-2007, SEC.1. Amended by P.L.229-2011,
SEC.70.
IC 5-10-8.5-2
"Account"
Sec. 2. As used in this chapter, "account" refers to the retirement
medical benefits account established by section 11 of this chapter.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-3
"Budget agency"
Sec. 3. As used in this chapter, "budget agency" refers to the
budget agency established under IC 4-12-1-3.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-4
"Department"
Sec. 4. As used in this chapter, "department" refers to the state
personnel department established under IC 4-15-2.2.
As added by P.L.44-2007, SEC.1. Amended by P.L.6-2012, SEC.27.
IC 5-10-8.5-5
"Employer"
Sec. 5. As used in this chapter, "employer" means the following:
(1) For an elected officer, appointed officer, or employee of the
executive branch of state government who is a participant in the
retirement medical benefits account, the state, including any
board, commission, department, division, authority, institution,
establishment, facility, or governmental unit under the
supervision of the state, having a payroll in relation to persons
it immediately employs.
(2) For a member of the general assembly or an employee of the
legislative branch of state government:
(A) the president pro tempore of the senate, for a member or
an employee of the senate;
(B) the speaker of the house, for a member or an employee
of the house of representatives; or
(C) the personnel subcommittee of the legislative council,
for an employee of the legislative services agency.
(3) For:
(A) a justice;
(B) a judge;
(C) a prosecuting attorney;
(D) an officer described under section 1(a)(5) of this
chapter; or
(E) an employee of the judicial branch of state government,
including an employee of any board, commission,
department, division, authority, institution, establishment,
facility, or governmental unit under the supervision of the
judicial branch, having a payroll in relation to persons it
immediately employs;
the Indiana supreme court.
As added by P.L.44-2007, SEC.1. Amended by P.L.229-2011,
SEC.71.
IC 5-10-8.5-6
"Fund"
Sec. 6. As used in this chapter, "fund" refers to the public
employees' retirement fund established under IC 5-10.3-2-1.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-7
"Internal Revenue Code"
Sec. 7. As used in this chapter, "Internal Revenue Code":
(1) means the Internal Revenue Code of 1954, as in effect
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.44-2007, SEC.1.
IC 5-10-8.5-8
"Participant"
Sec. 8. As used in this chapter, "participant" means an individual
for whom a subaccount is established under section 14 of this
chapter.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-9
"Retired participant"
Sec. 9. (a) As used in this chapter, "retired participant" means:
(1) A participant who is eligible for and has applied to receive
a normal, unreduced or disability retirement benefit (as
determined by the Indiana public employee retirement fund of
which the participant is a member) on the participant's last day
of service.
(2) A participant who has completed at least ten (10) years of
service as an elected or appointed officer on the participant's
last day of service as an elected or appointed officer. For
purposes of determining whether a participant has completed at
least ten (10) years of service on the participant's last day of
service for purposes of this subdivision, any partial year of
service completed by the participant in the year in which the
participant is appointed to fill a vacant elected office shall be
considered to be one (1) complete year of service.
(b) For a participant described in subsection (a)(2) who has
service with more than one (1) employer, the participant's years of
service is the sum of all of the participant's years of service.
As added by P.L.44-2007, SEC.1. Amended by P.L.205-2013,
SEC.75.
IC 5-10-8.5-9.5
Transfer of service credit; eligible employee
Sec. 9.5. (a) This section applies only to a person who:
(1) was an employee of the executive, legislative, or judicial
branch of state government (other than an employee described
in section 1(b)(1) through 1(b)(3) of this chapter);
(2) after June 30, 2007, and before July 1, 2011, left
employment in the position described in subdivision (1) and
was employed by the state police department in a position other
than as an eligible employee (as defined in IC 10-12-1-3); and
(3) on July 1, 2011, is employed by the state police department
in a position other than as an eligible employee (as defined in
IC 10-12-1-3).
(b) A person who satisfies the conditions of subsection (a) may
after June 30, 2011, and before September 1, 2011, make a one (1)
time irrevocable election to become a participant in the retirement
medical benefits account. A person who makes an election under this
subsection to become a participant in the retirement medical benefits
account may not also be a participant in the state police retiree
medical benefit plan.
As added by P.L.229-2011, SEC.72.
IC 5-10-8.5-9.6
Transfer of service credit; position other than eligible employee
Sec. 9.6. (a) This section applies only to a person who:
(1) is an employee of the executive, legislative, or judicial
branch of state government (other than an employee described
in section 1(b)(1) through 1(b)(3) of this chapter); and
(2) after June 30, 2011, leaves employment in the position
described in subdivision (1) and becomes employed by the state
police department in a position other than as an eligible
employee (as defined in IC 10-12-1-3).
(b) A person who satisfies the conditions of subsection (a) may,
not more than sixty (60) days after leaving employment as described
in subsection (a)(1) and becoming employed by the state police
department in a position other than as an eligible employee (as
defined in IC 10-12-1-3), make a one (1) time irrevocable election to
remain a participant in the retirement medical benefits account. A
person who makes an election under this subsection to remain a
participant in the retirement medical benefits account may not also
be a participant in the state police retiree medical benefit plan.
As added by P.L.229-2011, SEC.73.
IC 5-10-8.5-10
"Subaccount"
Sec. 10. As used in this chapter, "subaccount" means a
participant's allocable share of the account.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-11
Account established; administered by budget agency; specific
appropriation required
Sec. 11. (a) The budget agency shall adopt provisions to establish
a retirement medical benefits account as a health reimbursement
arrangement or as a separate fund under another applicable section
of the Internal Revenue Code for the purpose of funding by an
employer on a pretax basis benefits for sickness, accident,
hospitalization, and medical expenses for a participant and the
spouse and dependents of a participant after the participant's
retirement.
(b) The budget agency shall administer the account and may
request the assistance of the department, the fund, and other state
agencies. The account shall be maintained as a separate account to
pay benefits for sickness, accident, hospitalization, and medical
expenses for retired participants and their spouses and dependents.
(c) Notwithstanding any other provision of this chapter, the
budget agency may not establish the account or implement the health
reimbursement arrangement unless the general assembly makes a
specific appropriation to implement the health reimbursement
arrangement.
(d) The budget agency may adopt rules under IC 4-22-2 that it
considers appropriate or necessary to administer the account.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-12
Authorization to request Internal Revenue Service rulings
Sec. 12. The budget agency may request from the Internal
Revenue Service any rulings or determination letters that the budget
agency considers necessary or appropriate in order to implement or
administer the account.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-13
Management and pooling of account assets; confidentiality of
account records
Sec. 13. (a) The budget agency may designate the board of
trustees of the fund to manage the assets in the account in the same
manner and with the same limitations that apply to the management
of the assets in the fund.
(b) The assets in the account may be commingled or pooled with
other public funds for investment purposes.
(c) The account and subaccount records of individual participants
and participants' information are confidential, except for the name
and contributions made on behalf of the participant.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-14
Account; subaccounts; administrative costs
Sec. 14. (a) The account consists of the following:
(1) Contributions made by a participant's employer to the
account under section 15 or 16 of this chapter.
(2) All earnings on investments or deposits of the account.
(3) All contributions or payments to the account made in a
manner provided by the general assembly.
(b) The administrative costs of the account shall be paid from the
earnings of the account before the earnings are credited to
participants' subaccounts.
(c) The budget agency shall establish a subaccount for each
participant. Each participant's subaccount shall be credited with:
(1) the contributions made to the account on behalf of the
participant under this chapter; and
(2) after the costs described in subsection (b) are paid, the
earnings attributable to the balance of the subaccount.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-15
Annual employer contributions
Sec. 15. (a) Except as provided in subsections (c) and (d), a
participant's employer shall make contributions annually to the
account on behalf of the participant. The amount of the contribution
each fiscal year must equal the following, based on the participant's
age on the last day of the calendar year that is in the fiscal year in
which the contribution is made:
Participant's Age in Years
Annual Contribution
Amount
Less than 30
$ 500
At least 30, but less than 40
$ 800
At least 40, but less than 50
$1,100
At least 50
$1,400
(b) The budget agency shall determine by rule the date on which
the contributions are credited to participants' subaccounts.
(c) A contribution under this section shall not be made after June
30, 2011, to any of the following participants:
(1) A conservation officer of the department of natural resources.
(2) An employee of the state excise police.
(3) An employee of the state police department, other than the
following:
(A) An employee of the state police department who waived
coverage under a common and unified plan of self-insurance
under IC 5-10-8-6 before July 1, 2011.
(B) An employee of the state police department who makes an
election under IC 5-10-8.5-9.5.
(C) An employee of the state police department who makes an
election under IC 5-10-8.5-9.6.
(d) For individuals who are employed on June 30, 2011, the
accrued annual contributions made in accordance with subsection (a)
to an account described in section 14 of this chapter on behalf of the
individuals for any years the individuals were employed as described
in section 1(b)(1) through 1(b)(3) of this chapter shall be transferred
to the respective plans described in IC 5-10-8-6(a) for those
individuals and shall be used only to reduce the unfunded other
post-employment benefit (OPEB) liability of those plans and not to
increase benefits or reduce premiums.
As added by P.L.44-2007, SEC.1. Amended by P.L.229-2011,
SEC.74.
IC 5-10-8.5-16
Employer additional contribution; eligibility; computation;
expiration date
Sec. 16. (a) Except as provided in subsection (f), if a participant
meets all of the following conditions, the participant is entitled to
receive an additional contribution credited to the participant's
subaccount and computed as described in subsection (b):
(1) The participant is:
(A) on the participant's last day of service with the participant's
employer, eligible for and has applied to receive a normal,
unreduced retirement benefit from the public employee
retirement fund of which the participant is a member; or
(B) on the participant's last day of service, an elected or
appointed officer.
(2) After June 30, 2007, and before July 1, 2017, the participant
terminates service:
(A) from the employer; or
(B) as an elected or appointed officer.
(3) By the participant's last day of service, the participant has
completed:
(A) fifteen (15) years of service with the employer; or
(B) ten (10) years of service as an elected or appointed officer.
(b) The amount of the contribution to a participant's subaccount
under this section is the product of:
(1) the participant's years of service (rounded down to the nearest
whole year):
(A) with the participant's employer, determined on the
participant's last day of service with the participant's employer;
or
(B) as an elected or appointed officer, determined on the
participant's last day of service as an elected or appointed
officer; multiplied by
(2) one thousand dollars ($1,000).
(c) For a participant who has service with more than one (1)
employer, the participant's years of service used in the computation
under subsection (b)(1) is the sum of all of the participant's years of
service.
(d) The participant's employer must credit the additional
contribution made under this section to the participant's subaccount
not later than sixty (60) days after the participant's last day of
service.
(e) A participant who meets the requirements to receive an
additional contribution under this section may receive the additional
contribution only once, regardless of the participant's employment
after the payment of the additional contribution.
(f) An additional contribution under this section shall not be made
after June 30, 2011, to any of the following participants:
(1) A conservation officer of the department of natural resources.
(2) An employee of the state excise police.
(3) An employee of the state police department, other than the
following:
(A) An employee of the state police department who waived
coverage under a common and unified plan of self-insurance
under IC 5-10-8-6 before July 1, 2011.
(B) An employee of the state police department who makes an
election under IC 5-10-8.5-9.5.
(C) An employee of the state police department who makes an
election under IC 5-10-8.5-9.6.
(g) This section expires July 1, 2017.
As added by P.L.44-2007, SEC.1. Amended by P.L.3-2008, SEC.25;
P.L.229-2011, SEC.75.
IC 5-10-8.5-17
Eligibility for benefits
Sec. 17. (a) A retired participant is entitled to receive a benefit
from the account.
(b) A participant who is not a retired participant is not entitled to
receive a benefit from the account when the participant separates
from service.
(c) Years of service that accrued to an individual during the
individual's service as an employee described in section 1(b)(1)
through 1(b)(3) of this chapter may not be included in determining
the individual's eligibility for the retirement medical benefits account
under this chapter, regardless of whether the individual is a retired
participant described in section 9 of this chapter.
As added by P.L.44-2007, SEC.1. Amended by P.L.229-2011,
SEC.76.
IC 5-10-8.5-18
Account benefits; coverage
Sec. 18. The balance in a retired participant's subaccount may be
used by the retired participant and the spouse and dependents of the
retired participant to pay premiums for individual or group health
coverage.
As added by P.L.44-2007, SEC.1. Amended by P.L.124-2008, SEC.1.
IC 5-10-8.5-19
Surviving spouse or dependent use of account; forfeiture
Sec. 19. (a) The surviving spouse or dependent of a retired
participant may use amounts credited to the retired participant to pay
health insurance and other health care related expenses to the same
extent and in the same manner as the retired participant.
(b) If a retired participant dies without a surviving spouse or
dependents, unused amounts credited to the retired participant are
forfeited.
(c) Any forfeited amount may be used to reduce the contributions
required under this chapter.
As added by P.L.44-2007, SEC.1.
IC 5-10-8.5-20
Budget committee annual review
Sec. 20. The budget committee shall annually review the financial
status of the account.
As added by P.L.44-2007, SEC.1.
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