§ 5-10.2-4-7 — Retirement benefit payment options; changes to beneficiary designation or form of benefit; annual payment of monthly benefit

Indiana § 5-10.2-4-7

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 10.2: PUBLIC RETIREMENT AND DISABILITY
• Ch. 4: Retirement and Disability Benefits

Text

(a) Benefits provided under this section are
subject to IC 5-10.2-2-1.5.
(b) A member who retires is entitled to receive monthly retirement
benefits, which are guaranteed for five (5) years or until the member's
death, whichever is later. A member may select in writing any of the
following nonconflicting options for the payment of the member's
retirement benefits instead of the five (5) year guaranteed retirement
benefit payments. The amount of the optional payments shall be
determined under rules of the board and shall be the actuarial
equivalent of the benefit payable under sections 4, 5, and 6 of this
chapter. A member who has elected to withdraw the entire amount in
the member's annuity savings account under IC 5-10.2-3-6.5 may not
select the cash refund annuity option.
(1) Joint and Survivor Option.
(A) The member receives a decreased retirement benefit during
the member's lifetime, and there is a benefit payable after the
member's death to a designated beneficiary during the lifetime
of the beneficiary, which benefit equals, at the option of the
member, either the full decreased retirement benefit or
two-thirds (2/3) or one-half (1/2) of that benefit.
(B) If the member dies before retirement, the designated
beneficiary may receive only the amount credited to the
member in the annuity savings account unless the designated
beneficiary is entitled to survivor benefits under IC 5-10.2-3.
(C) If the designated beneficiary dies before the member retires,
the selection is automatically canceled and the member may
make a new beneficiary election and may elect a different form
of benefit under this subsection.
(2) Benefit with No Guarantee. The member receives an increased
lifetime retirement benefit without the five (5) year guarantee
specified in this subsection.
(3) Integration with Social Security. If the member retires before
the age of eligibility for Social Security benefits, in order to
provide a level benefit during the member's retirement the
member receives an increased retirement benefit until the age of
Social Security eligibility and decreased retirement benefits after
that age.
(4) Cash Refund Annuity. The member receives a lifetime annuity
purchasable by all or part of the amount credited to the member
in the annuity savings account, and the member's designated
beneficiary receives a refund payment equal to:
(A) the total amount used in computing the annuity; minus
(B) the total annuity payments paid and due to the member
before the member's death.
(c) This subsection does not apply to a member of the Indiana state
teachers' retirement fund after June 30, 2007, or to a member of the
public employees' retirement fund after June 30, 2008. If:
(1) the designated beneficiary dies while the member is receiving
benefits; or
(2) the member is receiving benefits, the member marries, either
for the first time or following the death of the member's spouse,
after the member's first benefit payment is made, and the
member's designated beneficiary is not the member's current
spouse or the member has not designated a beneficiary;
the member may elect to change the member's designated beneficiary
or form of benefit under subsection (b) and to receive an actuarially
adjusted and recalculated benefit for the remainder of the member's life
or for the remainder of the member's life and the life of the newly
designated beneficiary. The member may not elect to change to a five
(5) year guaranteed form of benefit. If the member's new election is the
joint and survivor option, the member shall indicate whether the
designated beneficiary's benefit shall equal, at the option of the
member, either the member's full recalculated retirement benefit or
two-thirds (2/3) or one-half (1/2) of this benefit. The cost of
recalculating the benefit shall be borne by the member and shall be
included in the actuarial adjustment.
(d) Except as provided in subsection (c) or section 7.2 of this
chapter, a member who files for regular or disability retirement may not
change:
(1) the member's retirement option under subsection (b);
(2) the selection of a lump sum payment under section 2 of this
chapter; or
(3) the beneficiary designated on the member's application for
benefits if the member selects the joint and survivor option under
subsection (b)(1);
after the first day of the month in which benefit payments are scheduled
to begin. For purposes of this subsection, it is immaterial whether a
benefit check has been sent, received, or negotiated.
(e) A member may direct that the member's retirement benefits be
paid to a revocable trust that permits the member unrestricted access
to the amounts held in the revocable trust. The member's direction is
not an assignment or transfer of benefits under IC 5-10.3-8-10 or IC 5-10.4-5-14.5.
(f) The board may adopt a policy to permit annual payment of a
member's retirement benefit whenever the amount of the monthly
retirement benefit to be paid to the member is not more than five
dollars ($5).
(g) The board may provide an alternative option for the payment of
the member's retirement benefits that does not include the minimum
benefit option under IC 5-10.2-3-9.
As added by Acts 1977, P.L.53, SEC.2. Amended by Acts 1980,
P.L.28, SEC.7; P.L.35-1985, SEC.16; P.L.59-1989, SEC.2;
P.L.55-1989, SEC.19; P.L.59-1989, SEC.3; P.L.4-1990, SEC.9;
P.L.195-1999, SEC.17; P.L.246-2001, SEC.5; P.L.190-2003, SEC.2;
P.L.2-2006, SEC.25; P.L.149-2007, SEC.1; P.L.93-2008, SEC.1;
P.L.115-2008, SEC.13; P.L.115-2009, SEC.7; P.L.35-2012, SEC.44;
P.L.15-2013, SEC.1; P.L.40-2017, SEC.12; P.L.51-2020,
SEC.4.