(a)The local board shall meet annually and
prepare an itemized estimate, in the form prescribed by the state board
of accounts, of the amount of money that will be receipted into and
disbursed from the 1937 fund during the next fiscal year. The estimated
receipts consist of the items enumerated in section 8 of this chapter.
The estimated disbursements must be divided into two (2) parts,
designated as part 1 and part 2.
(b)Part 1 of the estimated disbursements consists of an estimate of
the amount of money that will be needed by the local board during the
next fiscal year to defray the expenses and obligations incurred and that
will be incurred by the local board in making the payments prescribed
by this chapter to retired members, to members who are eligible to and
expect to retire durin
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(a) The local board shall meet annually and
prepare an itemized estimate, in the form prescribed by the state board
of accounts, of the amount of money that will be receipted into and
disbursed from the 1937 fund during the next fiscal year. The estimated
receipts consist of the items enumerated in section 8 of this chapter.
The estimated disbursements must be divided into two (2) parts,
designated as part 1 and part 2.
(b) Part 1 of the estimated disbursements consists of an estimate of
the amount of money that will be needed by the local board during the
next fiscal year to defray the expenses and obligations incurred and that
will be incurred by the local board in making the payments prescribed
by this chapter to retired members, to members who are eligible to and
expect to retire during the next fiscal year, and to the dependents of
deceased members. Part 2 of the estimated disbursements consists of
an estimate of the amount of money that will be needed to pay death
benefits and other expenditures that are authorized or required by this
chapter.
(c) At the time when the estimates are prepared and submitted, the
local board shall also prepare and submit a certified statement showing
the following:
(1) The name, age, and date of retirement of each retired member
and the monthly and yearly amount of the payment to which the
retired member is entitled.
(2) The name and age of each member who is eligible to and
expects to retire during the next fiscal year, the date on which the
member expects to retire, and the monthly and yearly amount of
the payment that the member will be entitled to receive.
(3) The name and the age of each dependent, the date on which
the dependent became a dependent, the date on which the
dependent will cease to be a dependent by reason of attaining the
age at which dependents cease to be dependents, and the monthly
and yearly amount of the payment to which the dependent is
entitled.
(4) The amount that would be required for the next fiscal year to
maintain level cost funding during the active fund members'
employment on an actuarial basis.
(5) The amount that would be required for the next fiscal year to
amortize accrued liability for active members, retired members,
and dependents over a period determined by the local board, but
not to exceed forty (40) years.
(d) The total receipts shall be deducted from the total expenditures
as listed in the itemized estimate. The amount of the excess of the
estimated expenditures over the estimated receipts shall be paid by the
unit in the same manner as other expenses of the unit are paid, and an
appropriation shall be made annually for that purpose. The estimates
submitted shall be prepared and filed in the same manner and form and
at the same time that estimates of other offices and departments of the
unit are prepared and filed.
(e) The estimates shall be made a part of the annual budget of the
unit. When revising the estimates, the executive, the fiscal officer, and
other fiduciary officers may not reduce the items in part 1 of the
estimated disbursements.
(f) The unit's fiscal body shall make the appropriations necessary to
pay that proportion of the budget of the 1937 fund that the unit is
obligated to pay under subsection (d). In addition, the fiscal body may
make appropriations for purposes of subsection (c)(4), (c)(5), or both.
All appropriations shall be made to the local board for the exclusive
use of the 1937 fund, including the payments described in section 9.5
of this chapter. The amounts listed in part 1 of the estimated
disbursements, if found to be correct and in conformity with the data
submitted in the certified statement, are a binding obligation upon the
unit. Notwithstanding any other law, the department of local
government finance may not reduce the appropriations made to pay the
amount equal to estimated disbursements minus estimated receipts.
[Pre-Local Government Recodification Citation: 19-1-37-16
part.]
As added by Acts 1981, P.L.309, SEC.57. Amended by
P.L.345-1985, SEC.1; P.L.90-2002, SEC.488; P.L.224-2007, SEC.124;
P.L.146-2008, SEC.777; P.L.182-2009(ss), SEC.431; P.L.257-2019,
SEC.149.