§ 5-10.3-7-4.7 — Purchase of service credit earned in 1977 police officers' and firefighters' pension and disability fund

Indiana § 5-10.3-7-4.7

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

Text

7. (a) As used in this section, "1977 fund"
refers to the 1977 police officers' and firefighters' pension and
disability fund established by IC 36-8-8-4.
(b) A member may purchase and claim service credit for the
member's prior service in a position covered by the 1977 fund subject
to the following:
(1) The member must have at least one (1) year of credited
service in the fund.
(2) The member must not have attained vested status in and may
not be an active member of the 1977 fund.
(3) The member must have at least ten (10) years of credited
service in the fund before the member may claim the service
credit.
(4) Before the member retires, the member must make
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 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 1977 fund service 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.
(5) The member must receive verification from the fund that the
member's service in the 1977 fund is valid.
(c) If a member meets the requirements to purchase service credit
under this section and applies to purchase service credit under this
section, the board shall transfer from the 1977 fund to the retirement
allowance account of the fund:
(1) the member's contributions made under IC 36-8-8-8(a), if the
contributions were not returned to the member under IC 36-8-8-8(c); plus
(2) the present value of the unreduced benefit payable upon
retirement under IC 36-8-8-10 that is attributable to the member.
The amount a member must contribute to the fund under subsection
(b)(4) is reduced by the amount transferred to the fund under this
subsection.
(d) 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 federal Social Security Act;
may withdraw the personal contributions made under this section plus
accumulated interest after submitting to the fund a properly completed
application for a refund.
(e) 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.
(f) If the requirements of subsection (b) are satisfied, credit for the
member's service in a position covered by the 1977 fund that is
purchased under this section is waived.
(g) To the extent permitted by the Internal Revenue Code and
applicable regulations, the fund may accept, on behalf of a fund
member who is purchasing service credit under this section, a rollover
of a distribution from any of the following:
(1) A qualified plan described in Section 401(a) or 403(a) of the
Internal Revenue Code.
(2) An annuity contract or account described in Section 403(b) of
the Internal Revenue Code.
(3) An eligible plan that is maintained by a state, a political
subdivision of a state, or an agency or instrumentality of a state or
a political subdivision of a state under Section 457(b) of the
Internal Revenue Code.
(4) An individual retirement account or annuity described in
Section 408(a) or 408(b) of the Internal Revenue Code.
(h) To the extent permitted by the Internal Revenue Code and
applicable regulations, the fund may accept, on behalf of a member
who is purchasing service credit under this section, a trustee to trustee
transfer from any of the following:
(1) An annuity contract or account described in Section 403(b) of
the Internal Revenue Code.
(2) An eligible deferred compensation plan under Section 457(b)
of the Internal Revenue Code.
(i) The member's employer may pay all or a part of the member's
contributions required for the purchase of service credit under this
section. In that event, the actuary shall determine the amortization, and
subsections (d), (e)(1), (e)(3), and (g) do not apply.

Legislative History

As added by P.L.8-2015, SEC.4.