§ 5-10.3-6-8 — Withdrawal of political subdivision

Indiana § 5-10.3-6-8

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 10.3: THE PUBLIC EMPLOYEES' RETIREMENT
• Ch. 6: Participation by Political Subdivisions

Text

(a) As used in this section, "withdrawing
political subdivision" means a political subdivision that takes an action
described in subsection (b).
(b) Subject to the provisions of this section, a political subdivision
may do the following:
(1) Stop its participation in the fund and withdraw all of the
political subdivision'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 political subdivision's participation in the fund by:
(A) selling all of the political subdivision's assets; or
(B) ceasing to exist as a political subdivision.
(c) The withdrawal of a political subdivision's participation in the
fund is effective on a termination date established by the board. The
termination date may not occur before all of the following have
occurred:
(1) The withdrawing political subdivision has provided written
notice of the following to the board:
(A) The withdrawing political subdivision's intent to cease
participation.
(B) The names of the withdrawing political subdivision'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 political subdivision that sells
all of the withdrawing political subdivision's assets or that
ceases to exist as a political subdivision; or
(B) a two (2) year period following the filing of the notice with
the board, for all other withdrawing political subdivisions.
(3) The withdrawing political subdivision takes all actions
required in subsections (d) through (g).
(d) With respect to retired members who have creditable service
with the withdrawing political subdivision, the withdrawing political
subdivision 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 political subdivision. The
contribution by the withdrawing political subdivision must be made in
a lump sum or in a series of payments over a term determined by the
board that does not exceed thirty (30) years.
(e) A member who is an employee of the political subdivision as of
the date of the notice under subsection (c) is vested in the pension
portion of the member's retirement benefit. The withdrawing political
subdivision must contribute to the fund the amount the board
determines is necessary to fund fully the vested benefit attributable to
service with the withdrawing political subdivision. The contribution by
the withdrawing political subdivision must be made in a lump sum or
in a series of payments over a term determined by the board 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 political subdivision and who are not employees
as of the date of the notice under subsection (c), the withdrawing
political subdivision 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 political subdivision.
The contribution by the withdrawing political subdivision must be
made in a lump sum or in a series of payments over a term determined
by the board that does not exceed thirty (30) years.
As added by Acts 1977, P.L.53, SEC.3. Amended by
P.L.28-1984, SEC.5; P.L.22-1993, SEC.4; P.L.241-2015,
SEC.16.