2016 Indiana Code TITLE 5. STATE AND LOCAL ADMINISTRATION ARTICLE 10. PUBLIC EMPLOYEE BENEFITS CHAPTER 5.5. EXCISE POLICE AND CONSERVATION ENFORCEMENT OFFICERS' RETIREMENT PLAN
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IC 5-10-5.5
Chapter 5.5. Excise Police and Conservation Enforcement
Officers' Retirement Plan
IC 5-10-5.5-0.1
Application of certain amendments to chapter
Sec. 0.1. (a) As used in this section, "plan" refers to the state
excise police, gaming agent, gaming control officer, and conservation
enforcement officers' retirement plan established by section 2 of this
chapter.
(b) The following amendments to this chapter apply as follows:
(1) The addition of section 7.5 of this chapter by P.L.180-2007
applies after June 30, 2007, to active participants of the plan.
(2) The amendments made to section 8 of this chapter by
P.L.180-2007 apply after June 30, 2007, to active participants
of the plan.
(3) The amendments made to sections 10, 11, and 12 of this
chapter by P.L.180-2007 apply to participants of the plan who
retire after June 30, 2007.
(4) The amendments made to sections 7 and 13.5 of this chapter
by P.L.180-2007 apply to participants of the plan who become
disabled after June 30, 2007.
(5) The addition of section 22 of this chapter by P.L.128-2008
applies only to a participant in the plan who is in active service
after June 30, 2008.
(6) The amendments made to sections 9 and 10 of this chapter
by P.L.128-2008 apply only to a participant in the plan who is
in active service after June 30, 2008.
As added by P.L.220-2011, SEC.64.
IC 5-10-5.5-1
Definitions
Sec. 1. As used in this chapter and unless the context clearly
denotes otherwise:
(1) "Board" refers to the board of trustees of the Indiana public
retirement system established by IC 5-10.5-3-1.
(2) "Department" means the Indiana department of natural
resources.
(3) "Commission" means the alcohol and tobacco commission.
(4) "Officer" means any Indiana state excise police officer, any
Indiana state conservation enforcement officer, any gaming
agent, or any gaming control officer.
(5) "Participant" means any officer who has elected to
participate in the retirement plan created by this chapter.
(6) "Salary" means the total compensation, exclusive of expense
allowances, paid to any officer by the department or the
commission, determined without regard to any salary reduction
agreement established under Section 125 of the Internal
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Revenue Code.
(7) "Average annual salary" means the average annual salary of
an officer during the five (5) years of highest annual salary in
the ten (10) years immediately preceding an officer's retirement
date, determined without regard to any salary reduction
agreement established under Section 125 of the Internal
Revenue Code.
(8) "Public employees' retirement act" means IC 5-10.3.
(9) "Public employees' retirement fund" means the public
employees' retirement fund created by IC 5-10.3-2.
(10) "Interest" means the rate of interest specified by rule by the
board of trustees of the Indiana public retirement system
established by IC 5-10.5-3-1.
(11) "Americans with Disabilities Act" refers to the Americans
with Disabilities Act (42 U.S.C. 12101 et seq.) and any
amendments and regulations related to the Act.
(12) Other words and phrases when used in this chapter shall,
for the purposes of this chapter, have the meanings respectively
ascribed to them as set forth in IC 5-10.3-1.
(Formerly: Acts 1972, P.L.1, SEC.1.) As amended by P.L.25-1986,
SEC.27; P.L.5-1992, SEC.3; P.L.4-1992, SEC.5; P.L.204-2001,
SEC.10; P.L.170-2005, SEC.11; P.L.227-2007, SEC.51;
P.L.16-2011, SEC.1; P.L.23-2011, SEC.3; P.L.6-2012, SEC.25;
P.L.35-2012, SEC.23.
IC 5-10-5.5-2
Creation; investment of plan assets
Sec. 2. (a) There is hereby created a state excise police, gaming
agent, gaming control officer, and conservation enforcement officers'
retirement plan to establish a means of providing special retirement,
disability and survivor benefits to employees of the department, the
Indiana gaming commission, and the commission who are engaged
exclusively in the performance of law enforcement duties.
(b) The assets of the retirement plan created by this section may
be commingled for investment purposes with the assets of other
funds administered by the board.
(Formerly: Acts 1972, P.L.1, SEC.1.) As amended by P.L.170-2005,
SEC.12; P.L.227-2007, SEC.52; P.L.193-2016, SEC.1.
IC 5-10-5.5-2.5
Qualification of plan under Internal Revenue Code
Sec. 2.5. (a) As used in this chapter, "Internal Revenue Code":
(1) means the Internal Revenue Code of 1954, as in effect on
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.
(b) The state excise police, gaming agent, gaming control officer,
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and conservation officers' retirement plan shall satisfy the
qualification requirements in Section 401 of the Internal Revenue
Code, as applicable to the retirement plan. In order to meet those
requirements, the retirement plan is subject to the following
provisions, notwithstanding any other provision of this chapter:
(1) The board shall distribute the corpus and income of the
retirement plan to participants and their beneficiaries in
accordance with this chapter.
(2) No part of the corpus or income of the retirement plan may
be used or diverted to any 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
any participant would otherwise receive under this chapter.
(4) If the retirement plan is terminated, or if all contributions to
the retirement plan are completely discontinued, the rights of
each affected participant to the benefits accrued at the date of
the termination or discontinuance, to the extent then funded, are
nonforfeitable.
(5) All benefits paid from the retirement plan 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
retirement plan is subject to the following provisions:
(A) The life expectancy of a participant, the participant's
spouse, or the participant's beneficiary shall 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
participant 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 participants or beneficiaries;
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 may not exceed the
maximum benefit specified by Section 415 of the Internal
Revenue Code.
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(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.1. Amended by P.L.170-2005,
SEC.13; P.L.227-2007, SEC.53.
IC 5-10-5.5-3
Management; confidentiality of retirement plan records
Sec. 3. (a) The management administration of the retirement plan
created by this chapter is hereby vested in the board.
(b) Records of individual participants in the retirement plan
created by this chapter and participants' information are confidential,
except for the name and years of service of a retirement plan
participant.
(Formerly: Acts 1972, P.L.1, SEC.1.) As amended by P.L.94-2004,
SEC.3; P.L.23-2011, SEC.4.
IC 5-10-5.5-3.5
Administration of retirement plan consistent with Americans with
Disabilities Act
Sec. 3.5. The state excise police, gaming agent, gaming control
officer, and conservation enforcement officers' retirement plan shall
be administered in a manner that is consistent with the Americans
with Disabilities Act, to the extent required by the Act.
As added by P.L.4-1992, SEC.6. Amended by P.L.170-2005, SEC.14;
P.L.227-2007, SEC.54.
IC 5-10-5.5-4
Participants' saving fund; creation
Sec. 4. (a) A participants' savings fund is hereby created. This
fund shall be maintained by the board as a trust fund, separate and
distinct from all other entities for the purpose of securing payment of
benefits to participants and their surivors, as hereinafter provided.
(b) The participants' savings fund shall consist of the following:
(1) each participant's contributions to the fund;
(2) all gifts, grants, devises and bequests in money, property, or
other form which may be made to the fund;
(3) all interest on investments or on deposits of the fund;
(4) all contributions or payments to the fund made in any
manner provided by the General Assembly, including
appropriations from the general fund of the state; and
(5) any funds transferred to the fund from the public employees'
retirement fund under the provisions of section 6 of this
chapter.
(Formerly: Acts 1972, P.L.1, SEC.1.)
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IC 5-10-5.5-5
Participants; eligibility
Sec. 5. (a) Every person who is an officer on September 2, 1971,
shall become a participant, unless the officer files a written notice of
his election not to participate with the board within twenty (20) days
prior to September 2, 1971.
(b) Every person who becomes an officer after September 2, 1971
shall become a participant as a condition of his employment.
(c) Any officer who elects not to become a participant shall
thereafter be forever ineligible to become a participant.
(Formerly: Acts 1972, P.L.1, SEC.1.)
IC 5-10-5.5-6
Transfer of funds to savings fund
Sec. 6. (a) Upon election to become a participant by any officer
who is a member of the public employees' retirement fund, the board
shall transfer all funds standing to the credit of the electing officer in
the public employees' retirement fund to the participants' savings
fund created by this chapter.
(b) Except as otherwise provided in this chapter, a transfer of
funds under the provisions of subsection (a) of this section
constitutes a full and complete discharge of all of the rights of the
electing officer under the public employees' retirement fund.
(Formerly: Acts 1972, P.L.1, SEC.1.)
IC 5-10-5.5-7
Transfer of creditable service; credit during disability
Sec. 7. (a) Upon election to become a participant by any officer
who is a member of the public employees' retirement fund, the board
shall transfer all creditable service standing to the credit of the
electing officer under the public employees' retirement fund to the
credit of the electing officer under the retirement plan created by this
chapter.
(b) Creditable service under this chapter, including credit for
military service, shall accrue and be computed and credited to
participants in the same manner and in the same amount as creditable
service accrues, is computed and credited under the public
employees' retirement law.
(c) In addition to creditable service computed under subsection
(b), a participant is entitled to receive creditable service under this
chapter for the time the participant receives disability benefits under
a disability plan established under IC 5-10-8-7.
(Formerly: Acts 1972, P.L.1, SEC.1.) As amended by P.L.180-2007,
SEC.1.
IC 5-10-5.5-7.5
Purchase of service credit earned in certain Indiana public
retirement funds
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Sec. 7.5. (a) As used in this section, "board" refers to the board of
trustees of the Indiana public retirement system established by
IC 5-10.5-3-1.
(b) As used in this section, "public retirement fund" refers
collectively to:
(1) the public employees' retirement fund (IC 5-10.3);
(2) the Indiana state teachers' retirement fund (IC 5-10.4);
(3) the state police pension trust (IC 10-12); and
(4) the 1977 police officers' and firefighters' pension and
disability fund (IC 36-8-8).
(c) Subject to this section, a participant may purchase and claim
service credit for the participant's prior service in a position covered
by a public retirement fund.
(d) To purchase the service credit described in subsection (c), a
participant must meet the following requirements:
(1) The participant has at least one (1) year of creditable service
in the retirement plan created by this chapter.
(2) The participant has not attained vested status in and is not
an active participant in the public retirement fund from which
the participant is purchasing the service credit.
(3) Before the participant retires, the participant makes
contributions to the retirement plan created by this chapter as
follows:
(A) Contributions that are equal to the product of the
following:
(i) The participant's salary at the time the participant
actually makes a contribution for the service credit.
(ii) A rate, determined by the actuary for the retirement
plan created by this chapter, based on the age of the
participant at the time the participant actually makes a
contribution for service credit and computed to result in a
contribution amount that approximates the actuarial
present value of the benefit attributable to the service
credit purchased.
(iii) The number of years of service credit the participant
intends to purchase.
(B) Contributions for any accrued interest, at a rate
determined by the actuary for the retirement plan created by
this chapter, for the period from the participant's initial
participation in the retirement plan created by this chapter to
the date payment is made by the participant.
(e) At the request of the participant purchasing service credit
under this section, the amount a participant is required to contribute
under subsection (d)(3) may be reduced by a trustee to trustee
transfer from a public retirement fund in which the participant has an
account that contains amounts attributable to member contributions
(plus any credited earnings) to the retirement plan created by this
chapter. The participant may direct the transfer of an amount only to
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the extent necessary to fund the service purchase under subsection
(d)(3). The participant shall complete any forms required by the
public retirement fund from which the participant is requesting a
transfer or the retirement plan created by this chapter before the
transfer is made.
(f) At least ten (10) years of service in the retirement plan created
by this chapter is required before a participant may receive a benefit
based on service credit purchased under this section.
(g) A participant who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive an annual retirement
allowance; or
(2) receives an annual retirement allowance for the same service
from another tax supported governmental retirement plan other
than under the federal Social Security Act;
may withdraw the purchase amount plus accumulated interest after
submitting a properly completed application for a refund to the
retirement plan created by this chapter.
(h) The following may apply to the purchase of service credit
under this section:
(1) The board may allow a participant to make periodic
payments of the contributions required for the purchase of the
service credit. The board shall determine the length of the
period during which the payments must be made.
(2) The board may deny an application for the purchase of
service credit if the purchase would exceed the limitations
under Section 415 of the Internal Revenue Code.
(3) A participant may not claim the service credit for purposes
of determining eligibility for a benefit or computing benefits
unless the participant has made all payments required for the
purchase of the service credit.
(i) To the extent permitted by the Internal Revenue Code and
applicable regulations, the retirement plan created by this chapter
may accept, on behalf of a participant who is purchasing permissive
service credit under this chapter, a rollover of a distribution from any
of the following:
(1) A qualified plan described in Section 401(a) or Section
403(a) of the Internal Revenue Code.
(2) An annuity contract or account described in Section 403(b)
of the Internal Revenue Code.
(3) An eligible plan that is maintained by a state, a political
subdivision of a state, or an agency or instrumentality of a state
or political subdivision of a state under Section 457(b) of the
Internal Revenue Code.
(4) An individual retirement account or annuity described in
Section 408(a) or Section 408(b) of the Internal Revenue Code.
(j) To the extent permitted by the Internal Revenue Code and
applicable regulations, the retirement plan created by this chapter
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may accept, on behalf of a participant who is purchasing permissive
service credit under this chapter, a trustee to trustee transfer from any
of the following:
(1) An annuity contract or account described in Section 403(b)
of the Internal Revenue Code.
(2) An eligible deferred compensation plan under Section
457(b) of the Internal Revenue Code.
As added by P.L.180-2007, SEC.2. Amended by P.L.23-2011, SEC.5;
P.L.8-2015, SEC.1.
IC 5-10-5.5-8
Contributions; rate; payroll deductions; employer pick-up of
contributions
Sec. 8. (a) Except as provided in subsection (c), every participant
shall contribute four percent (4%) of the participant's annual salary
to the participants' savings fund.
(b) Contributions shall be made in the form of payroll deductions
from each and every payment of salary received by the participant.
Every participant shall, as a condition precedent to becoming a
participant, consent to the payroll deductions.
(c) An employer may pay all or a part of the contributions for the
participant. All contributions made by an employer under this
subsection shall be treated as pick-up contributions under Section
414(h)(2) of the Internal Revenue Code.
(d) After December 31, 2011, an employer shall submit the
contributions paid by or on behalf of a participant under this section
by electronic funds transfer in accordance with section 8.5 of this
chapter.
(Formerly: Acts 1972, P.L.1, SEC.1.) As amended by P.L.180-2007,
SEC.3; P.L.13-2011, SEC.1.
IC 5-10-5.5-8.5
Submission of contributions, reports, and records electronically
Sec. 8.5. (a) This section applies to reports, records, and
contributions submitted after December 31, 2011.
(b) As used in this section, "electronic funds transfer" has the
meaning set forth in IC 4-8.1-2-7(f).
(c) An employer shall submit through the use of electronic funds
transfer:
(1) employer contributions, determined by the board, to fund
the retirement, disability, and survivor benefits described in this
chapter; and
(2) contributions paid by or on behalf of a participant under
section 8 of this chapter.
(d) 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 required by the board
under this chapter.
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(e) The board shall establish by rule the due dates for all reports,
records, and contributions required under this chapter.
As added by P.L.13-2011, SEC.2.
IC 5-10-5.5-9
Retirement provisions
Sec. 9. (a) Except as provided in subsection (b), every participant
is required to retire on the first day of the month following the
participant's sixty-fifth birthday.
(b) An officer who becomes a participant after becoming fifty (50)
years of age is required to retire on the earlier of:
(1) the first day of the month following the participant's
sixty-fifth birthday; or
(2) the first day of the month following the completion of
fifteen (15) years of service.
(Formerly: Acts 1972, P.L.1, SEC.1.) As amended by P.L.38-1986,
SEC.1; P.L.55-1987, SEC.1; P.L.55-1989, SEC.2; P.L.128-2008,
SEC.2.
IC 5-10-5.5-10
Retirement allowance
Sec. 10. (a) Benefits provided under this section are subject to
section 2.5 of this chapter.
(b) The annual retirement allowance of a participant, payable in
equal monthly installments beginning on the participant's normal
retirement date, shall be a percentage of the participant's average
annual salary, such percentage to be twenty-five percent (25%)
increased by one and two-thirds percent (1 2/3%) of the participant's
average annual salary for each completed year of creditable service
more than ten (10) years. However, the annual retirement allowance
computed under this subsection may not exceed seventy-five percent
(75%) of the participant's average annual salary.
(c) The annual retirement allowance shall cease with the last
monthly payment prior to the death of the participant.
(Formerly: Acts 1972, P.L.1, SEC.1.) As amended by P.L.55-1989,
SEC.3; P.L.180-2007, SEC.4; P.L.128-2008, SEC.3.
IC 5-10-5.5-11
Early retirement
Sec. 11. (a) Any participant who has attained the age of forty-five
(45) years and has accrued at least fifteen (15) years of creditable
service may retire and become eligible for benefits as provided in
section 12(a) of this chapter.
(b) If:
(1) a participant is at least fifty-five (55) years of age; and
(2) the sum of the participant's years of creditable service and
age in years equals at least eighty-five (85);
the participant may retire and become eligible for benefits as
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provided in section 12(b) of this chapter.
(c) A participant who:
(1) is at least fifty (50) years of age; and
(2) has accrued at least twenty-five (25) years of creditable
service;
may retire and become eligible for benefits under section 12(b) of
this chapter.
(Formerly: Acts 1972, P.L.1, SEC.1.) As amended by P.L.10-1995,
SEC.2; P.L.180-2007, SEC.5.
IC 5-10-5.5-12
Early retirement allowance; monthly installments
Sec. 12. (a) The amount of annual retirement allowance payable
in equal monthly installments to a participant who retires under
section 11(a) of this chapter (relating to early retirement) shall be
determined in accordance with section 10 of this chapter (relating to
normal retirement). However, the amount of annual retirement
allowance otherwise payable upon early retirement shall be reduced
by one-quarter percent (1/4%) for each full month that the date of
early retirement precedes the attainment of the participant's sixtieth
birthday.
(b) The amount of annual retirement allowance payable in equal
monthly installments to a participant who retires under section 11(b)
or 11(c) of this chapter (relating to early retirement) shall be
determined in accordance with section 10 of this chapter (relating to
normal retirement).
(Formerly: Acts 1972, P.L.1, SEC.1.) As amended by P.L.10-1995,
SEC.3; P.L.180-2007, SEC.6; P.L.3-2008, SEC.23.
IC 5-10-5.5-12.5
Repealed
(Repealed by P.L.25-1994, SEC.12.)
IC 5-10-5.5-12.7
Determinations by board of trustees; impairment standards;
transcripts, reports, records, and other materials
Sec. 12.7. (a) Upon a petition from a participant, the department,
or the commission, the board of trustees of the Indiana public
retirement system, or its designee, shall make the determinations
required by section 13 of this chapter and shall also determine:
(1) the degree of impairment of any officer determined to have
a disability; and
(2) whether the disability arose in the line of duty (as defined in
section 13.5 of this chapter).
(b) The impairment standards contained in the United States
Department of Veterans Affairs Schedule for Rating Disabilities in
effect at the time the application for disability benefits is filed with
the board of trustees shall be used to determine the degree of
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impairment.
(c) To the extent required by the Americans with Disabilities Act,
the transcripts, reports, records, and other material generated as a
result of a hearing, a review, or an appeal conducted under this
chapter to determine the existence of a disability, the cause of a
disability, or the degree of impairment shall be:
(1) kept in separate medical files for each member; and
(2) treated as confidential medical records.
As added by P.L.56-1987, SEC.2. Amended by P.L.1-1990, SEC.57;
P.L.4-1992, SEC.7; P.L.25-1994, SEC.1; P.L.99-2007, SEC.12;
P.L.35-2012, SEC.24.
IC 5-10-5.5-13
Permanent or temporary disability
Sec. 13. Any participant who becomes permanently or temporarily
disabled from performing all suitable and available work on the force
for which he is or may be capable of becoming qualified, considering
reasonable accommodation to the extent required by the Americans
with Disabilities Act, shall be entitled to disability benefits in the
amount provided by this chapter. Benefits may not be provided under
this section for any disability:
(1) resulting from an intentionally self-inflicted injury or
attempted suicide while sane or insane;
(2) resulting from the member's commission or attempted
commission of a felony; or
(3) which begins within two (2) years after a member's entry or
reentry into active service on the force and which was caused or
contributed to by a mental or physical condition which
manifested itself before the member entered or reentered active
service.
(Formerly: Acts 1972, P.L.1, SEC.1.) As amended by Acts 1981,
P.L.48, SEC.1; P.L.56-1987, SEC.3; P.L.4-1992, SEC.8.
IC 5-10-5.5-13.5
Disability occurring after June 30, 1987; presumption for line of
duty disability; monthly benefits
Sec. 13.5. (a) This section applies to participants whose disability
occurred after June 30, 1987.
(b) Benefits provided under this section are subject to section 2.5
of this chapter.
(c) As used in this section, a disability is to be considered to have
arisen in the line of duty if the disability is the direct result of:
(1) a personal injury that occurs while the participant is on duty;
or
(2) a personal injury that occurs while the participant is off duty
and responding to an offense or an emergency or a reported
offense or emergency;
or if the disability is presumed incurred in the line of duty under
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IC 5-10-13.
(d) A participant whose disability arose in the line of duty is
entitled to a monthly benefit equal to the participant's monthly salary
on the date of disability multiplied by the degree of impairment
(expressed as a percentage impairment of the person as a whole).
However, the monthly benefit under this subsection must be at least:
(1) twenty percent (20%) of the participant's monthly salary on
the date of the disability if the participant has more than five (5)
years of service; or
(2) ten percent (10%) of the participant's monthly salary on the
date of the disability if the participant has five (5) or fewer
years of service.
(e) A participant whose disability did not arise in the line of duty
is entitled to a monthly benefit equal to one-half (1/2) of the
participant's monthly salary on the date of disability multiplied by the
degree of impairment (expressed as a percentage of the person as a
whole). However, the monthly benefit under this subsection must be
at least:
(1) ten percent (10%) of the participant's monthly salary on the
date of the disability if the participant has more than five (5)
years of service; or
(2) five percent (5%) of the participant's monthly salary on the
date of the disability if the participant has five (5) or fewer
years of service.
(f) A participant who is receiving a disability benefit under
subsection (d) is entitled:
(1) to receive a disability benefit for the remainder of the
participant's life; and
(2) to have the participant's benefit recomputed under section 10
of this chapter (relating to normal retirement) when the
participant becomes sixty (60) years of age.
As added by P.L.56-1987, SEC.4. Amended by P.L.55-1989, SEC.4;
P.L.185-2002, SEC.1; P.L.180-2007, SEC.7.
IC 5-10-5.5-14
Disability occurring before July 1, 1987; allowance; monthly
installments; cessation
Sec. 14. (a) Benefits provided under this section are subject to
section 2.5 of this chapter.
(b) This subsection applies to participants who were disabled
before July 1, 1987. Any participant eligible to receive disability
benefits under section 13 of this chapter is entitled to an annual
disability allowance payable in equal monthly installments and equal
to a percentage of his average annual salary determined in
accordance with the provisions of section 10(a) of this chapter
(relating to normal retirement).
(c) Payment of disability benefits shall begin with the month next
succeeding the month in which the participant is determined to be
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disabled and shall cease:
(1) with the last payment prior to the participant's death; or
(2) with the last payment before the time the participant is no
longer disabled;
whichever occurs first. However, after becoming forty-five (45)
years of age, a participant receiving a disability benefit may request
that the disability benefit payments cease and that any retirement
benefit for which the participant is eligible begin.
(d) If a member receives disability or retirement benefits from
another state funded pension fund, he is not entitled to receive
disability benefits under this section.
(Formerly: Acts 1972, P.L.1, SEC.1.) As amended by Acts 1977,
P.L.2, SEC.4; Acts 1981, P.L.48, SEC.2; P.L.56-1987, SEC.5;
P.L.55-1989, SEC.5; P.L.41-1991, SEC.1.
IC 5-10-5.5-15
Surviving mothers, fathers, spouses, or unmarried children;
eligibility for benefits
Sec. 15. Surviving mothers, fathers, surviving spouses or
unmarried children under the age of eighteen (18) years, of
participants who have accrued at least fifteen (15) years of creditable
service and who die, shall be entitled to receive survivors' benefits in
the amount hereinafter provided. Survivor's benefits shall be paid to
such of the above enumerated persons as the participant shall
nominate by written direction duly acknowledged and filed with the
board.
(Formerly: Acts 1972, P.L.1, SEC.1; Acts 1975, P.L.21, SEC.2.)
IC 5-10-5.5-16
Survivors benefits; amount
Sec. 16. (a) Benefits provided under this section are subject to
section 2.5 of this chapter.
(b) A surviving mother or father nominated by the participant to
receive survivors' benefits under the provisions of this chapter shall
be entitled to an annual survivors' allowance for life equal to fifty
percent (50%) of the amount the participant would have been entitled
to if he had retired.
(c) A surviving spouse nominated by the participant to receive
survivors' benefits under the provisions of this chapter shall be
entitled to an annual survivors' allowance equal to fifty percent
(50%) of the amount the participant would have been entitled to if he
or she had retired. In the case of a surviving spouse who is more than
five (5) years younger than the deceased participant at the time of the
participant's death, the amount of the annual survivors' allowance
shall be reduced actuarially, without regard to the sex of the spouse
or the participant. In all cases the survivors' allowance to a surviving
spouse shall cease with the last payment prior to the surviving
spouse's death.
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(d) A surviving child eligible and nominated by the participant to
receive survivors' benefits under the provisions of this chapter shall
be entitled to an annual survivors' allowance equal to fifty percent
(50%) of the amount the participant would have been entitled to if he
had retired. If more than one (1) surviving child is eligible and
nominated to receive survivors' benefits, the annual allowance shall
be divided equally between or among such children. In all cases, the
survivors' allowance to a child shall cease when the child attains the
age of eighteen (18) years or marries, whichever occurs first. Where
a survivors' allowance is divided between or among more than one
(1) child, and payments to one (1) or more children cease, the total
annual allowance payable shall be divided evenly among or between
such of the remaining children who are eligible therefor.
(e) In the event that no nomination is made by an eligible
participant, or in the event that the nominated survivor predeceases
the participant and no contingent survivor is nominated and an
eligible participant dies, no survivors' allowance shall be payable. In
such case, the board shall make a lump sum payment to the estate of
the deceased participant equal to the total of all funds standing to the
credit of the participant in the participant's savings fund plus
accumulated interest thereon.
(f) A survivor's allowance under this section that was terminated
because of a surviving spouse's remarriage shall be reinstated on July
1, 1997, and continue during the life of the surviving spouse.
(Formerly: Acts 1972, P.L.1, SEC.1; Acts 1975, P.L.21, SEC.3.) As
amended by P.L.55-1989, SEC.6; P.L.40-1997, SEC.1.
IC 5-10-5.5-17
Lump sum refund of contributions or payments
Sec. 17. Any participant whose employment as an officer is
terminated before accumulating fifteen (15) years of creditable
service and before attaining the age of forty-five (45) years shall be
entitled to a lump-sum refund of all contributions standing to his
credit in the participants' savings fund plus accumulated interest
thereon.
(b) If a participant dies before accumulating fifteen (15) years of
creditable service, all contributions standing to his credit in the
participants' savings fund plus the accumulated interest thereon shall
be paid by the board to the person the participant shall nominate by
written direction duly acknowledged and filed with the board. The
payment may be in the form of a lump sum or a series of payments,
at the discretion of the board.
(c) If a participant dies before accumulating fifteen (15) years of
creditable service and has nominated no beneficiary, or in the event
that the participant's nominee predeceases him, all contributions
standing to his credit in the participants' savings fund, plus
accumulated interest thereon shall be paid by the board to the estate
of the deceased participant. The payment may be in the form of a
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lump sum or a series of payments, at the discretion of the board.
(d) If a participant terminates his employment after accumulating
fifteen (15) years of creditable service, but before becoming eligible
for any benefits under this chapter, no refund of contributions and
interest shall be allowed. In such case, the participant's contributions
shall be retained by the board until the participant becomes eligible
for benefits. At that time, benefits shall be paid to, or on behalf of the
participant in the same manner and in the same amount as all similar
benefits are paid.
(Formerly: Acts 1972, P.L.1, SEC.1.)
IC 5-10-5.5-18
Termination of service before accumulating 15 years of creditable
service
Sec. 18. Any participant who terminates his service as an officer
before accumulating fifteen (15) years of creditable service may, in
the manner and under the conditions provided in the public
employees' retirement law, again become a member of the public
employees' retirement fund. Upon payment of contributions and
interest required by the board, the withdrawing participant shall be
entitled to transfer creditable service standing to his credit under this
chapter to his credit under the public employees' retirement law.
(Formerly: Acts 1972, P.L.1, SEC.1.)
IC 5-10-5.5-19
Public employees retirement fund law; applicability
Sec. 19. The retirement plan created by this chapter shall, in all
respects to the extent applicable and except as otherwise specifically
enumerated in this chapter, be governed by the law creating the
public employees' retirement fund, and for that purpose, the
provisions of IC 5-10.3 are hereby incorporated into this chapter by
reference.
(Formerly: Acts 1972, P.L.1, SEC.1.) As amended by P.L.25-1986,
SEC.28.
IC 5-10-5.5-20
Old age and survivors benefits; supplemental retirement benefits;
rights and liabilities not affected
Sec. 20. Participation in the retirement plan created by this
chapter shall not affect the participant's rights and liabilities under
the provisions of IC 5-10.1, IC 5-10.2, and IC 5-10.3.
(Formerly: Acts 1972, P.L.1, SEC.1.) As amended by P.L.25-1986,
SEC.29.
IC 5-10-5.5-21
Increase in monthly benefits
Sec. 21. (a) Except as provided in subsection (d), the monthly
benefit payable after June 30, 1987, to a participant, or a survivor or
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beneficiary of a participant, who retired or was disabled before July
2, 1986, shall be increased by an amount determined by the board.
The board shall determine the amount for each participant, survivor,
and beneficiary so that the monthly benefit is increased by one-half
(1/2) the amount that the monthly benefit would have been increased
if the participant had been a member of the public employees'
retirement fund on the date of retirement or disability.
(b) Except as provided in subsection (d), the monthly benefit
payable after June 30, 1988, to a participant, or a survivor or
beneficiary of a participant, who retired or was disabled before July
2, 1987, shall be increased by an amount determined by the board.
The board shall determine the amount for each participant, survivor,
and beneficiary so that the monthly benefit is increased to the amount
that the monthly benefit would have equaled if the participant had
been a member of the public employees' retirement fund on the date
of retirement or disability.
(c) Except as provided in subsection (d), the monthly benefit
payable after June 30, 1989, to participants, survivors, and
beneficiaries shall be increased by the same percentages and under
the same conditions as monthly benefits are increased under
IC 5-10.2-5 for members of the public employees' retirement fund
and their survivors and beneficiaries.
(d) This section is applicable only if the general assembly
provides sufficient funding for the increased cost of the benefits
provided by this section.
As added by P.L.56-1987, SEC.6. Amended by P.L.4-1990, SEC.4.
IC 5-10-5.5-22
Deferred retirement option plan
Sec. 22. (a) As used in this section, "DROP" refers to a deferred
retirement option plan established under this section.
(b) As used in this section, "DROP entry date" means the date that
a participant's election to enter a DROP becomes effective.
(c) As used in this section, "DROP frozen benefit" refers to an
annual retirement allowance computed under section 10 of this
chapter based on a participant's:
(1) average annual salary; and
(2) years of creditable service;
on the date the participant enters the DROP.
(d) As used in this section, "DROP retirement date" means the
future retirement date selected by a participant at the time the
participant elects to enter the DROP.
(e) Only a participant who is eligible to receive an unreduced
annual retirement allowance immediately upon termination of
employment may elect to enter a DROP. A participant who elects to
enter the DROP must agree to the following:
(1) The participant shall execute an irrevocable election to retire
on the DROP retirement date and must remain in active service
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until that date.
(2) While in the DROP, the participant shall continue to make
contributions under section 8 of this chapter.
(3) The participant shall select a DROP retirement date not less
than twelve (12) months and not more than thirty-six (36)
months after the participant's DROP entry date.
(4) The participant may not remain in the DROP after the date
the participant reaches the mandatory retirement age under
section 9 of this chapter.
(5) The participant may make an election to enter the DROP
only once in the participant's lifetime.
(f) Contributions or payments provided by the general assembly
under section 4(b)(4) of this chapter continue for a participant while
the participant is in the DROP.
(g) A participant shall exit the DROP on the earliest of the
following:
(1) The participant's DROP retirement date.
(2) Thirty-six (36) months after the participant's DROP entry
date.
(3) The participant's mandatory retirement age.
(4) The date the participant retires because of a disability as
provided by subsection (k).
(h) A participant who retires on the participant's DROP retirement
date or on the date the participant retires because of a disability as
provided by subsection (k) may elect to receive an annual retirement
allowance:
(1) computed under section 10 of this chapter as if the
participant had never entered the DROP; or
(2) consisting of:
(A) the DROP frozen benefit; plus
(B) an additional amount, paid as the participant elects under
subsection (i), determined by multiplying:
(i) the DROP frozen benefit; by
(ii) the number of months the participant was in the
DROP.
(i) The participant shall elect, at the participant's retirement, to
receive the additional amount calculated under subsection (h)(2)(B)
in one (1) of the following ways:
(1) A lump sum paid on:
(A) the participant's DROP retirement date; or
(B) the date the participant retires because of a disability as
provided by subsection (k).
(2) Three (3) equal annual payments:
(A) commencing on:
(i) the participant's DROP retirement date; or
(ii) the date the participant retires because of a disability
as provided by subsection (k); and
(B) thereafter paid on:
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(i) the anniversary of the participant's DROP retirement
date; or
(ii) the date the participant retires because of a disability
as provided by subsection (k).
(j) A cost of living increase determined under section 21(c) of this
chapter does not apply to the additional amount calculated under
subsection (h)(2)(B) at the participant's DROP retirement date or the
date the participant retires because of a disability as provided by
subsection (k). No cost of living increase is applied to a DROP
frozen benefit while the participant is in the DROP. After the
participant's DROP retirement date or the date the participant retires
because of a disability as provided by subsection (k), cost of living
increases determined under section 21(c) of this chapter apply to the
participant's annual retirement allowance computed under this
section.
(k) If a participant becomes disabled, in the line of duty or other
than in the line of duty while in the DROP, the participant's annual
retirement allowance is computed as follows:
(1) If the participant retires because of a disability less than
twelve (12) months after the date the participant enters the
DROP, the participant's annual retirement allowance is
calculated as if the participant had never entered the DROP.
(2) If the participant retires because of a disability at least
twelve (12) months after the date the participant enters the
DROP, the participant's annual retirement allowance is
calculated under this section, and the participant's retirement
date is the date the member retires because of a disability rather
than the participant's DROP retirement date.
(l) If, before payment of the participant's annual retirement
allowance begins, the participant dies in the line of duty or other than
in the line of duty, death benefits are payable as follows:
(1) The benefit calculated under subsection (h)(2)(B) is paid in
a lump sum to the participant's surviving spouse. If there is no
surviving spouse, the lump sum must be divided equally among
the participant's surviving children. If there are no surviving
children, the lump sum is paid to the participant's parents. If
there are no surviving parents, the lump sum is paid to the
participant's estate.
(2) A benefit is paid on the DROP frozen benefit under the
terms of the retirement plan created by this chapter.
(m) Except as provided under subsections (k) and (l), the annual
retirement allowance for a participant who exits the DROP for any
reason other than retirement on the participant's DROP retirement
date is calculated as if the participant had never entered the DROP.
As added by P.L.128-2008, SEC.4.
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