§ 5-10-5.5-2.5 — Qualification of plan under Internal Revenue Code

Indiana § 5-10-5.5-2.5

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 10: PUBLIC EMPLOYEE BENEFITS
• Ch. 5.5: State Excise Police, Gaming Agent, Gaming Control

Text

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,
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.
(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.

Legislative History

As added by P.L.55-1989, SEC.1. Amended by P.L.170-2005, SEC.13; P.L.227-2007, SEC.53.