§ 5-10.2-2-11 — Contribution rate determination; contribution rate groups; supplemental contributions; contributions and contribution rates report

Indiana § 5-10.2-2-11

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 10.2: PUBLIC RETIREMENT AND DISABILITY
• Ch. 2: The Retirement Funds

Text

(a) Based on the actuarial investigation and
valuation in section 9 of this chapter, the board shall determine:
(1) the normal contribution for each contribution rate group,
which is the amount necessary to fund the pension portion of the
retirement benefit;
(2) the rate of normal contribution;
(3) the unfunded accrued liability of the public employees'
retirement fund, the pre-1996 account, and the 1996 account,
which is the excess of total accrued liability over the fund's or
account's total assets, respectively; and
(4) the period, which must be thirty (30) years or a shorter period,
necessary to amortize the unfunded accrued liability determined
in subdivision (3).
(b) Based on the information in subsection (a), the board may
determine, in its sole discretion, contributions and contribution rates for
individual employers or for a group of employers. However, after June
30, 2018, the board shall segregate from its determination of
contributions and contribution rates any amounts attributable to
estimated future postretirement benefit increases, thirteenth checks, or
other benefit changes or adjustments granted by the general assembly
after June 30, 2018.
(c) The board shall require an employer to make a supplemental
contribution to the fund in addition to the amounts described in
subsection (a)(3) and (a)(4) in an amount necessary to pay the
employer's share of the fund's actuarial unfunded liability that other
employers would otherwise be required to pay because the employer's
employees are becoming members of the plan under IC 5-10.3-12 or IC 5-10.4-8 instead of the fund. The amount necessary to pay an
employer's contribution under this subsection in full must be made in
a lump sum or in a series of payments determined by the board.
(d) The board's determinations under subsection (a):
(1) are subject to sections 1.5 and 11.5 of this chapter; and
(2) may not include an amount for a retired member for whom the
employer may not make contributions during the member's period
of reemployment as provided under IC 5-10.2-4-8(e).
(e) If the board determines contributions and contribution rates for
one (1) or more employers under this section differ from the
contributions and contribution rates determined by the actuarial
investigation under section 9 of this chapter, the board shall notify the
interim study committee for pension management oversight of this fact
by reporting the board's action to the legislative services agency in an
electronic format under IC 5-14-6.
As added by Acts 1977, P.L.53, SEC.2. Amended by
P.L.55-1989, SEC.12; P.L.54-1993, SEC.10; P.L.246-2005, SEC.49;
P.L.72-2007, SEC.1; P.L.1-2009, SEC.16; P.L.182-2009(ss), SEC.70;
P.L.23-2011, SEC.10; P.L.35-2012, SEC.36; P.L.195-2013, SEC.2;
P.L.241-2015, SEC.4; P.L.217-2017, SEC.56; P.L.127-2018,
SEC.8.