§ 5-10.3-7-4.3 — Public employees' defined contribution plan service credit purchase

Indiana § 5-10.3-7-4.3

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 10.3: THE PUBLIC EMPLOYEES' RETIREMENT
• Ch. 7: Membership; Creditable Service; Contributions

Text

3. (a) A member of the fund who is also a
member of the public employees' defined contribution plan may
purchase and claim years of service credit in the fund subject to the
following requirements:
(1) The member has at least one (1) year of credited service in the
fund.
(2) The member has at least ten (10) years of credited service in
a covered position in the fund before the member may claim the
years of service credit.
(3) After acquiring one (1) year of credited service in the fund and
before the member retires, the member must make the following
contributions to the fund:
(A) Contributions that are equal to the product of the following:
(i) The member's salary at the time the member makes a
contribution for the service credit.
(ii) A percentage rate, as determined by the actuary of the
fund, based on the age of the member at the time the member
makes a contribution for service credit and computed to result
in a contribution amount that approximates the actuarial
present value of the benefit attributable to the service credit
purchased.
(iii) The number of years of service credit that the member
intends to purchase.
(B) Contributions for any accrued interest, at a rate determined
by the actuary of the fund, for the period from the member's
initial membership in the fund to the date payment is made by
the member.
(b) A member:
(1) who terminates employment before becoming eligible to
receive a monthly allowance; or
(2) who receives a monthly allowance for the same service from
another tax supported public employee retirement plan other than
under the federal Social Security Act;
may withdraw the personal contributions made under this section plus
accumulated interest after submitting an application for a refund to the
fund in the manner prescribed by the board.
(c) The following apply to the purchase of service credit under this
section:
(1) The board may allow a member to make periodic payments of
the contributions required for the purchase of service credit in the
fund.
(2) A member may elect to make a transfer of the vested portion
of the member's annuity savings account balance attributable to
participation in the public employees' defined contribution plan
to purchase service credit in the fund.
(3) The board may deny an application for the purchase of service
credit in the fund if the purchase would exceed the limitations
under Section 415 of the Internal Revenue Code.
(4) A member may not claim the service credit for the purpose of
determining eligibility or computing benefits unless the member
has made all the payments required for the purchase of the service
credit.

Legislative History

As added by P.L.209-2016, SEC.2.