§ 10-12-2-3 — Qualification of trust under Internal Revenue Code; benefit limitations

Indiana § 10-12-2-3

• Jurisdiction: Indiana
• Title 10: PUBLIC SAFETY
• Art. 12: STATE POLICE PENSIONS AND BENEFITS
• Ch. 2: Pension, Death, Disability, Survivor, and Other Benefits

Text

(a) The pension trust shall satisfy the
qualification requirements in Section 401 of the Internal Revenue
Code, as applicable to the pension trust. In order to meet those
requirements, the pension trust is subject to the following provisions,
notwithstanding any other provision of this chapter, IC 10-12-3, or IC 10-12-4:
(1) The pension advisory board shall distribute the corpus and
income of the pension trust to participants and their beneficiaries
in accordance with this chapter, IC 10-12-3, and IC 10-12-4.
(2) A part of the corpus or income of the pension trust may not 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
any other reason may not be applied to increase the benefits any
participant would otherwise receive under this chapter, IC 10-12-3, or IC 10-12-4.
(4) If the pension trust is terminated or if all contributions to the
pension trust 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 pension trust shall be distributed in
accordance with the requirements of Section 401(a)(9) of the
Internal Revenue Code and the regulations under that section. To
meet those requirements, the pension trust 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 pension advisory 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
provided under Section 401(a)(4) of the Internal Revenue Code.
(7) Benefits paid under this chapter, IC 10-12-3, or IC 10-12-4
may not exceed the maximum benefit specified by Section 415 of
the Internal Revenue Code.
(8) The salary taken into account under this chapter, IC 10-12-3,
or IC 10-12-4 may not exceed the applicable amount under
Section 401(a)(17) of the Internal Revenue Code.
(9) The trustee may not engage in a transaction prohibited by
Section 503(b) of the Internal Revenue Code.
(b) Notwithstanding any other provision of this chapter or IC 10-12-3, and solely for the purposes of the benefits provided under IC 10-12-3, the benefit limitations of Section 415 of the Internal Revenue
Code shall be determined by applying the provisions of Section
415(b)(10) of the Internal Revenue Code, as amended by the Technical
and Miscellaneous Revenue Act of 1988. This section constitutes an
election under Section 415(b)(10)(C) of the Internal Revenue Code to
have Section 415(b) of the Internal Revenue Code, other than Section
415(b)(2)(G) of the Internal Revenue Code, applied without regard to
Section 415(b)(2)(F) of the Internal Revenue Code (before its repeal on
June 7, 2001, by P.L.107-16) to anyone who did not first become a
participant before January 1, 1990.
[Pre-2003 Recodification Citation: 10-1-2-2.5 part.]

Legislative History

As added by P.L.2-2003, SEC.3. Amended by P.L.42-2011, SEC.28.