§ 5-10.2-2-21 — Freeze in participation by miscellaneous participating entity

Indiana § 5-10.2-2-21

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

Text

(a) This section applies to a miscellaneous
participating entity that takes any of the following actions on or after
December 31, 2010:
(1) The miscellaneous participating entity determines a date:
(A) before which newly hired employees of a departmental,
occupational, or other definable classification of employees are
required or allowed to participate in the fund; and
(B) on or after which newly hired employees of the
departmental, occupational, or other definable classification of
employees are not allowed to participate in the fund.
(2) The miscellaneous participating entity determines a date:
(A) before which newly hired employees of a departmental,
occupational, or other definable classification of employees are
required to participate in the fund; and
(B) on or after which newly hired employees of the
departmental, occupational, or other definable classification of
employees are allowed to choose to participate in a retirement
plan other than the fund.
(3) The miscellaneous participating entity modifies its employee
classification scheme as of a specified date in such a way that
there is at least one (1) position that:
(A) is covered by the fund before the specified date; and
(B) is not covered by the fund after the specified date.
(b) The following definitions apply throughout this section:
(1) "Freeze" or "freeze participation in the fund" means to take an
action described in subsection (a).
(2) "Freezing participating entity" means a miscellaneous
participating entity that freezes its participation in the fund.
(3) "Fund" means the public employees' retirement fund.
(c) A miscellaneous participating entity that freezes its participation
in the fund after December 31, 2010, shall do the following:
(1) Provide written notice of the following to the board:
(A) The action that was taken under subsection (a) by the
freezing participating entity.
(B) The effective date of the action taken under subsection (a).
(C) The employee classifications that:
(i) are covered by the fund before the effective date of the
freeze; and
(ii) will not be covered by the fund on or after the effective
date of the freeze.
(D) The names of the freezing participating entity's current
employees and former employees as of the date on which the
notice is provided.
(2) Comply with subsections (d) through (f).
(d) With respect to retired members who have creditable service
with the freezing participating entity, the freezing participating entity
shall 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 freezing participating entity. The board
shall collaborate with the freezing participating entity by sharing the
actuarial method and report used in determining the amounts under this
subsection and under subsections (e) and (f). The contribution by the
freezing 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, as
determined by the freezing participating entity.
(e) With respect to members of the fund who have creditable service
with the freezing participating entity and who are not employees as of
the effective date on which the miscellaneous participating entity
freezes its participation in the fund, the freezing participating entity
shall contribute the amount that the board determines is necessary to
fund fully the service for those members that is attributable to service
with the freezing participating entity. The board shall collaborate with
the freezing participating entity by sharing the actuarial method and
report. The contribution by the freezing 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, as determined by the freezing participating
entity.
(f) With respect to members of the fund who are employees of the
freezing participating entity on the date of the notice under subsection
(c), the freezing participating entity shall continue to contribute the
amounts required under section 11 of this chapter for those employees
for the duration of their employment with the freezing participating
entity. In addition, the freezing participating entity shall contribute to
the fund the amount the board determines is necessary to fund fully the
benefits attributable to service with the freezing participating entity that
are vested or will become vested and are not expected to be fully
funded through the continuing contributions under section 11 of this
chapter during the duration of the members' employment with the
freezing participating entity. The board shall collaborate with the
freezing participating entity by sharing the actuarial method and report.
The contribution by the freezing 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, as determined by the freezing participating entity.
(g) The Indiana public retirement system may do any of the
following to determine a miscellaneous participating entity's
compliance with this section:
(1) Require reports from the miscellaneous participating entity.
(2) Audit the miscellaneous participating entity.
(h) A miscellaneous participating entity must begin payments
required under this section not later than July 1, 2016, or a date
determined by the board. The board may charge interest on any amount
that remains unpaid after the payment date determined by the board.

Legislative History

As added by P.L.241-2015, SEC.6. Amended by P.L.193-2016, SEC.7.