§ 33-39-7-22 — Satisfaction of Section 401 of the Internal Revenue Code requirements

Indiana § 33-39-7-22

• Jurisdiction: Indiana
• Art. 39: PROSECUTING ATTORNEYS
• Ch. 7: Retirement Fund

Text

The fund shall satisfy the qualification
requirements in Section 401 of the Internal Revenue Code as
applicable to the fund. In order to meet those requirements, the fund is
subject to the following provisions, notwithstanding any other
provision of this chapter:
(1) The board shall distribute the corpus and income of the fund
to participants and their beneficiaries in accordance with this
chapter.
(2) A part of the corpus or income of the fund may not be used for
or diverted to any purpose other than the exclusive benefit of the
participants and their beneficiaries.
(3) Forfeitures arising from severance of employment or death, or
for any other reason, may not be applied to increase the benefits
a participant would otherwise receive under the retirement fund
law.
(4) If the fund is terminated, or if all contributions to the fund 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 fund 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 fund 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 any
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 member
died.
(6) The board may not:
(A) determine eligibility for benefits;
(B) compute rates of contribution; or
(C) compute benefits of participant's 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
benefits specified by Section 415 of the Internal Revenue Code.
If a participant's benefits under this chapter would exceed that
maximum benefit, the benefit payable under this chapter shall be
reduced as necessary.
(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.
[Pre-2004 Recodification Citation: 33-14-9-20.]

Legislative History

As added by P.L.98-2004, SEC.18.