§ 5-10.3-7-4.6 — In-state service credit purchase

Indiana § 5-10.3-7-4.6

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

Text

6. (a) Subject to the provisions of this
section, a member may purchase and claim service credit for the
member's prior service in a position covered by the 1925 police pension
fund under IC 36-8-6, the 1937 firefighters' pension fund under IC 36-8-7, or the 1953 police pension fund under IC 36-8-7.5 if the
member meets the following requirements:
(1) The member has at least one (1) year of credited service in the
fund.
(2) The member has not attained vested status in and is not an
active member of the 1925 police pension fund, the 1937
firefighters' pension fund, or the 1953 police pension fund.
(3) 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 service credit 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.
(4) The member has received verification from the fund that the
service in the 1925 police pension fund, the 1937 firefighters'
pension fund, or the 1953 police pension fund is, as of that date,
valid.
(b) At least ten (10) years of service in Indiana is required before a
member may receive a benefit based on service credits purchased
under this section.
(c) 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.
(d) 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.195-1999, SEC.22. Amended by P.L.8-2015, SEC.3.