§ 33-38-7-18 — Credit for prior service; rollover distributions; trustee to trustee transfers

(a) This section applies to a person who:
(1) is a judge participating under this chapter;
(2) was appointed by a court to serve as a full-time referee,
full-time commissioner, or full-time magistrate either:
(A) before becoming a judge; or
(B) after leaving an elected term on the bench;
(3) was a member of the public employees' retirement fund during
the employment described in subdivision (2); and
(4) received credited service under the public employees'
retirement fund for the employment described in subdivision (2).
(b) If a person becomes a participant in the judges' 1977 benefit
system under section 1 of this chapter, credit for prior or subsequent
service by the judge as a full-time referee, full-time commissioner, or
full-time magistrate shall be granted under this chapter by the board if:
(1) the service was credited under the public employees'
retirement fund;
(2) the state contributes to the judges' 1977 benefit system the
amount the board determines necessary to amortize the service
liability over a period determined by the board, but not more than
ten (10) years; and
(3) the judge pays in a lump sum or in a series of payments
determined by the board, not exceeding five (5) annual payments,
the amount the judge would have contributed if the judge had
been a member of the judges' 1977 benefit system during the
service.
(c) If the requirements of subsection (b)(2) and (b)(3) are not
satisfied, a participant is entitled to credit only for years of service
earned as a judge in the 1977 benefit system.
(d) An amortization schedule for contributions paid under
subsection (b)(2) or (b)(3) must include interest at a rate determined by
the board.
(e) The following provisions apply to a person described in
subsection (a):
(1) A minimum benefit applies to participants receiving credit in
the judges' 1977 benefit system from service covered by the
public employees' retirement fund. The minimum benefit is
payable at sixty-five (65) years of age and equals the actuarial
equivalent of the vested retirement benefit that is:
(A) payable to the member at normal retirement under IC 5-10.2-4-1 as of the day before the transfer; and
(B) based solely on:
(i) creditable service;
(ii) the average of the annual compensation; and
(iii) the amount credited under IC 5-10.2 and IC 5-10.3 to the
annuity savings account of the transferring member as of the
day before the transfer.
(2) If the requirements of subsection (b)(2) and (b)(3) are
satisfied, the board shall transfer from the public employees'
retirement fund to the judges' 1977 benefit system the amount
credited to the annuity savings account and the present value of
the retirement benefit payable at sixty-five (65) years of age that
is attributable to the transferring participant.
(3) The amount the state and the participant must contribute to the
judges' 1977 benefit system under subsection (b) shall be reduced
by the amount transferred to the judges' 1977 benefit system by
the board under subdivision (2).
(4) If the requirements of subsection (b)(2) and (b)(3) are
satisfied, credit for service in the public employees' retirement
fund as a full-time referee, full-time commissioner, or full-time
magistrate is waived. Any credit for the service under the judges'
1977 benefit system may be granted only under subsection (b).
(5) Credit in the public employees' retirement fund for service
other than as a full-time referee, full-time commissioner, or
full-time magistrate remains under the public employees'
retirement fund and may not be credited under the judges' 1977
benefit system.
(f) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the judges' 1977 benefit system may accept, on
behalf of a participant who is purchasing permissive service credit
under subsection (b), 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, 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.
(g) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the judges' 1977 benefit system may accept, on
behalf of a participant who is purchasing permissive service credit
under subsection (b), 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.
[Pre-2004 Recodification Citation: 33-13-9.1-10.]

Legislative History

As added by P.L.98-2004, SEC.17. Amended by P.L.68-2007, SEC.1; P.L.180-2007, SEC.8.