§ 5-10.2-2-20 — Withdrawal of miscellaneous participating entity

Indiana § 5-10.2-2-20

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

Text

(a) As used in this section:
(1) "fund" means the public employees' retirement fund; and
(2) "withdrawing participating entity" means a miscellaneous
participating entity that takes an action described in subsection
(b).
(b) Subject to the provisions of this section, a miscellaneous
participating entity may do the following:
(1) Stop its participation in the fund and withdraw all of the
miscellaneous participating entity's employees from participation
in the fund.
(2) Withdraw a departmental, an occupational, or other definable
classification of employees from participation in the fund.
(3) Stop the miscellaneous participating entity's participation in
the fund by:
(A) selling all of the miscellaneous participating entity's assets;
or
(B) ceasing to exist.
(c) The withdrawal of a miscellaneous participating entity's
participation in the fund is effective on a termination date established
by the board. The termination date may not occur before all the
following have occurred:
(1) The withdrawing participating entity has provided written
notice of the following to the board:
(A) The withdrawing participating entity's intent to cease
participation.
(B) The names of the withdrawing participating entity's current
employees and former employees as of the date on which the
notice is provided.
(2) The expiration of:
(A) a ninety (90) day period following the filing of the notice
with the board, for a withdrawing participating entity that sells
all of the withdrawing participating entity's assets or that ceases
to exist; or
(B) a two (2) year period following the filing of the notice with
the board, for all other withdrawing participating entities.
(3) The withdrawing participating entity takes all actions required
in subsections (d) through (g).
(d) With respect to retired members who have creditable service
with the withdrawing participating entity, the withdrawing participating
entity must contribute to the fund any additional amounts that the board
determines are necessary to provide for reserves with sufficient assets
to pay all future benefits from the fund to those retired members
attributable to service with the withdrawing participating entity. The
contribution by the withdrawing participating entity must be made in
a lump sum or in a series of payments over a term that does not exceed
thirty (30) years.
(e) A member who is an employee of the miscellaneous
participating entity as of the date of the notice under subsection (c) is
vested in the pension portion of the member's retirement benefit. The
withdrawing participating entity must contribute to the fund the amount
the board determines is necessary to fund fully the vested benefit
attributable to service with the withdrawing participating entity. The
contribution by the withdrawing participating entity must be made in
a lump sum or in a series of payments over a term that does not exceed
thirty (30) years.
(f) A member who is covered by subsection (e) and who is at least
sixty-five (65) years of age may elect to retire under IC 5-10.2-4-1 even
if the member has fewer than ten (10) years of service. The benefit for
the member shall be computed under IC 5-10.2-4-4 using the member's
actual years of service.
(g) With respect to members of the fund who have creditable service
with the withdrawing participating entity and who are not employees
as of the date of the notice under subsection (c), the withdrawing
participating entity must contribute the amount that the board
determines is necessary to fund fully the service for those members that
is attributable to service with the withdrawing participating entity. The
contribution by the withdrawing participating entity must be made in
a lump sum or in a series of payments over a term that does not exceed
thirty (30) years.

Legislative History

As added by P.L.241-2015, SEC.5.