§ 5-10.3-7-4.5 — Out-of-state service credit purchase

Indiana § 5-10.3-7-4.5

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

Text

5. (a) As used in this section, "out-of-state
service" means service in another state in a comparable position that
would be creditable service if performed in Indiana.
(b) Subject to subsections (c) through (f), a member may purchase
and claim out-of-state service credit if the member meets the following
requirements:
(1) The member has at least one (1) year of creditable service in
the fund.
(2) Before the member retires, the member makes contributions
to the fund as follows:
(A) Contributions that are equal to the product of the following:
(i) The member's salary at the time the member actually
makes a contribution for the service credit.
(ii) A rate, determined by the actuary of the fund, based on
the age of the member at the time the member actually 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 out-of-state service the member
intends to purchase.
(B) Contributions for any accrued interest, at a rate determined
by the actuary for the fund, for the period from the member's
initial membership in the fund to the date payment is made by
the member.
(3) The member has received verification from the fund that the
out-of-state service is, as of that date, valid.
(c) Out-of-state years that qualify a member for retirement in an
out-of-state system or in any federal retirement system may not be
granted under this section.
(d) At least ten (10) years of service in Indiana is required before a
member may receive a benefit based on out-of-state service credits.
(e) A member who:
(1) terminates employment before satisfying the eligibility
requirements necessary to receive a monthly allowance; or
(2) receives a monthly allowance for the same service from
another tax supported public employee retirement plan other than
under the Social Security Act;
may withdraw the purchase amount plus accumulated interest after
submitting a properly completed application for a refund to the fund.
(f) 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 the service credit.
The board shall determine the length of the period during which
the payments must be made.
(2) The board may deny an application for the purchase of service
credit if the purchase would exceed the limitations under Section
415 of the Internal Revenue Code.
(3) A member may not claim the service credit for purposes of
determining eligibility or computing benefits unless the member
has made all payments required for the purchase of the service
credit.

Legislative History

As added by P.L.5-1997, SEC.4. Amended by P.L.22-1998, SEC.8; P.L.8-2015, SEC.2.