(a)The state police department, conservation
officers of the department of natural resources, and the state excise
police may establish common and unified plans of self-insurance for
their employees, including retired employees, as separate entities of
state government. These plans may be administered by a private
agency, business firm, limited liability company, or corporation. Any
modification to:
(1)eligibility requirements;
(3)change the benefits under the plan; or
(4)any other plan provisions;
may not be made unless the modification is approved by the budget
agency on or before September 1 of each year, with an annual review
of the modifications by the budget committee.
(b)Except as provided in this section and IC 5-10-14, the state
agencies listed in subse
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(a) The state police department, conservation
officers of the department of natural resources, and the state excise
police may establish common and unified plans of self-insurance for
their employees, including retired employees, as separate entities of
state government. These plans may be administered by a private
agency, business firm, limited liability company, or corporation. Any
modification to:
(1) eligibility requirements;
(2) required premiums;
(3) change the benefits under the plan; or
(4) any other plan provisions;
may not be made unless the modification is approved by the budget
agency on or before September 1 of each year, with an annual review
of the modifications by the budget committee.
(b) Except as provided in this section and IC 5-10-14, the state
agencies listed in subsection (a) may not pay as the employer part of
benefits for any employee or retiree an amount greater than that paid
for other state employees for group insurance.
(c) This subsection applies to a health benefit plan for an individual
described in subsection (a). At least one (1) time in each state fiscal
year, the INPRS shall determine the average amount of contributions
made under IC 5-10-8.5-15 and IC 5-10-8.5-16 to participants in a
health reimbursement arrangement or other separate fund under IC 5-10-8.5 in the immediately preceding state fiscal year. An amount
equal to the average amount determined under this subsection
multiplied by the number of participants (other than retired
participants) in the plans described in subsection (a) shall be
transferred to the plans described in subsection (a). The amount
transferred under this subsection shall be proportionally allocated to
each plan relative to the number of members in each plan. The amount
allocated to a plan under this subsection shall be allocated among the
participants in the plan in the same manner as other employer
contributions. Funds shall be used only to reduce unfunded other
post-employment benefit (OPEB) liability and not to increase benefits
or reduce premiums.
(d) Trust funds may be established to carry out the purposes of this
section. A trust fund established under this subsection is considered a
trust fund for purposes of IC 4-9.1-1-7. Money may not be transferred,
assigned, or otherwise removed from a trust fund established under this
subsection by the state board of finance, the budget agency, or any
other state agency. Money in a trust fund established under this
subsection does not revert to the state general fund at the end of any
state fiscal year. A trust fund established under this subsection consists
of appropriations, revenues, or transfers to the trust fund under IC 4-12-1. Contributions to a trust fund established under this subsection
are irrevocable. A trust fund established under this subsection must be
limited to providing prefunding of annual required contributions and
to cover OPEB liability for covered individuals. Funds may be used
only for these purposes and not to increase benefits or reduce
premiums. A trust fund established under this subsection shall be
established to comply with and be administered in a manner that
satisfies the Internal Revenue Code requirements concerning a trust
fund for prefunding annual required contributions and for covering
OPEB liability for covered individuals. All assets in a trust fund
established under this subsection:
(1) are dedicated exclusively to providing benefits to covered
individuals and their beneficiaries according to the terms of the
health plan; and
(2) are exempt from levy, sale, garnishment, attachment, or other
legal process.
A trust fund established under this subsection shall be administered by
the agency employing the covered individuals. The expenses of
administering a trust fund established under this subsection shall be
paid from money in the trust fund. Notwithstanding IC 5-13, the
treasurer of state shall invest the money in a trust fund established
under this subsection not currently needed to meet the obligations of
the trust fund in the same manner as money may be invested by the
Indiana state police pension trust under IC 10-12-2-2. The trustee shall
also comply with the prudent investor rule set forth in IC 30-4-3.5. The
trustee may contract with investment management professionals,
investment advisors, and legal counsel to assist in the investment of the
trust and may pay the state expenses incurred under those contracts
from the trust. Interest that accrues from these investments shall be
deposited in the trust fund.
(e) On or before July 15 of each year, each state agency listed in
subsection (a) shall submit to the budget agency and the INPRS the
current plan documents and any other related information for any
common and unified plan established under subsection (a) as well as
any proposed modification to the plan under subsection (a). The budget
agency and the INPRS may request additional information from a state
agency listed in subsection (a) to analyze the impact of any proposed
modification to the state's contribution and post-employment liability
under the plan. In addition, the budget agency and the INPRS may
enlist the assistance of the state personnel department and a third party,
independent actuary to analyze any information related to a proposed
modification under this subsection and subsection (a).
(f) If a state agency listed in subsection (a) fails to provide any
information under subsection (e) to the budget agency, the budget
agency may recommend to the budget committee that the state
personnel department manage the state agency's common and unified
plans established under subsection (a) during the next succeeding
calendar year.
[Pre-Local Government Recodification Citation: 4-15-5-5
part.]
As added by Acts 1980, P.L.8, SEC.41. Amended by Acts 1982,
P.L.36, SEC.1; P.L.24-1985, SEC.13; P.L.14-1986, SEC.11;
P.L.8-1993, SEC.53; P.L.24-2005, SEC.1; P.L.170-2005, SEC.15;
P.L.1-2006, SEC.95; P.L.227-2007, SEC.55; P.L.229-2011, SEC.68;
P.L.138-2012, SEC.2; P.L.217-2017, SEC.52; P.L.108-2019,
SEC.84.