§ 5-10.3-7-9.5 — Rollover contributions; trustee to trustee transfers; liability for income tax consequences of transfers

Indiana § 5-10.3-7-9.5

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

Text

5. (a) The fund may accept cash rollover
contributions from a member who is making payments for additional
service credits under this chapter if the following conditions are met:
(1) The rollover contribution must represent:
(A) all or a portion of the member's interest in a retirement plan
of a former employer which is qualified under Section 401(a)
of the Internal Revenue Code and which permits the interest to
be transferred to the fund as a qualifying rollover contribution
under the Internal Revenue Code;
(B) all or a portion of the member's interest from an individual
retirement account or annuity described in Section 408(a) or
Section 408(b) of the Internal Revenue Code;
(C) all or a portion of the member's interest in:
(i) a qualified plan described in Section 403(a) of the Internal
Revenue Code; or
(ii) an annuity contract or account described in Section
403(b) of the Internal Revenue Code; or
(D) all or a portion of the member's interest in an eligible plan
that is maintained by a state, a political subdivision of a state,
or an agency or instrumentality of a state or political
subdivision of a state under Section 457(b) of the Internal
Revenue Code.
(2) The amount of the rollover contributions may not exceed the
amount of payment required to purchase the service credits under
this chapter.
(3) The rollover contributions may contain only tax-deferred
contributions and earnings on the contributions, and may not
include any post-tax contributions.
(4) The member must be otherwise eligible to purchase the
service credit under this chapter.
(b) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the fund may accept, on behalf of a member
who is purchasing permissive service credit under this chapter, a
trustee to trustee transfer from:
(1) an annuity contract or account described in Section 403(b) of
the Internal Revenue Code; or
(2) an eligible deferred compensation plan under Section 457(b)
of the Internal Revenue Code.
(c) The fund, the board, and their respective members, officers, and
employees do not have any responsibility or liability with respect to the
federal and state income tax consequences of any transfer made to the
fund under this section. The board may require, as a condition to the
fund's acceptance of a rollover contribution:
(1) satisfactory evidence that the proposed transfer is a qualifying
rollover contribution under the Internal Revenue Code; and
(2) reasonable releases or indemnifications from the member
against any and all liabilities that may be connected with the
transfer.
(d) Cash transferred to the fund as a rollover contribution shall be
deposited in the retirement allowance account.
(e) A member who terminates employment before satisfying the
eligibility requirements necessary for a pension or disability benefit
may withdraw the member's rollover contribution, plus accumulated
interest, after submitting a properly completed application for a refund
to the fund.
(f) Except as provided in this section, the fund shall not accept any
other rollover contributions from a member.
(g) The board shall administer this section in accordance with the
rollover provisions of the Internal Revenue Code and any applicable
regulations.

Legislative History

As added by P.L.5-1997, SEC.7. Amended by P.L.61-2002, SEC.8; P.L.40-2017, SEC.13.