Indiana § 5-10.2-3-2 Members' contributions; employers picking up

Indiana Statutes

§ 5-10.2-3-2 — Members' contributions; employers picking up

Indiana § 5-10.2-3-2

Title 5STATE AND LOCAL ADMINISTRATION

Art. 10.2PUBLIC RETIREMENT AND DISABILITY

Ch. 3Creditable Service; Contributions; Withdrawals; Death

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Bluebook

Ind. Code § 5-10.2-3-2 (2026).

Text

(a)Subject to IC 5-10.2-2-1.5, as used in this section, "compensation" means:

(1)the basic salary earned by and paid to the member; plus

(2)the amount that would have been a part of the basic salary earned and paid except for the member's salary reduction agreement established under Section 125, 403(b), or 457 of the Internal Revenue Code.

(b)Except in cases where:

(1)the contribution is made on behalf of the member; or

(2)a retired member may not make contributions during a period of reemployment as provided in IC 5-10.2-4-8(e); each member shall, as a condition of employment, contribute to the fund three percent (3%) of the member's compensation.

(c)Except as provided in IC 5-10.2-4-8(e), a member of a fund may make contributions to the member's annuity savings account in addition

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(a) Subject to IC 5-10.2-2-1.5, as used in this
section, "compensation" means:
(1) the basic salary earned by and paid to the member; plus
(2) the amount that would have been a part of the basic salary
earned and paid except for the member's salary reduction
agreement established under Section 125, 403(b), or 457 of the
Internal Revenue Code.
(b) Except in cases where:
(1) the contribution is made on behalf of the member; or
(2) a retired member may not make contributions during a period
of reemployment as provided in IC 5-10.2-4-8(e);
each member shall, as a condition of employment, contribute to the
fund three percent (3%) of the member's compensation.
(c) Except as provided in IC 5-10.2-4-8(e), a member of a fund may
make contributions to the member's annuity savings account in addition
to the contributions required under subsection (b). The total amount of
contributions that may be made to a member's annuity savings account
with respect to a payroll period under this subsection may not exceed
ten percent (10%) of the member's compensation for that payroll
period. The contributions made under this subsection may be picked-up
and paid by an employer as provided in subsection (d).
(d) In compliance with rules adopted by the board, an employer,
under Section 414(h)(2) of the Internal Revenue Code, may pick-up
and pay the contributions under subsection (c), subject to approval of
the board and to the board's receipt of a favorable private letter ruling
from the Internal Revenue Service. The employer shall reduce the
member's compensation by an amount equal to the amount of the
member's contributions under subsection (c) that are picked-up by the
employer. The board shall by rule establish the procedural
requirements for employers to carry out the pick-up in compliance with
Section 414(h)(2) of the Internal Revenue Code.
(e) A member's contributions and interest credits belong to the
member and do not belong to the state or political subdivision.
As added by Acts 1977, P.L.53, SEC.2. Amended by
P.L.35-1985, SEC.8; P.L.55-1989, SEC.13; P.L.53-2000, SEC.1;
P.L.246-2001, SEC.4; P.L.72-2007, SEC.3; P.L.1-2009, SEC.18;
P.L.35-2012, SEC.40; P.L.195-2013, SEC.4.