§ 5-10.4-2-5 — Pension stabilization fund

Indiana § 5-10.4-2-5

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 10.4: STATE TEACHERS' RETIREMENT FUND
• Ch. 2: Fund

Text

(a) The pension stabilization fund is
established. The pension stabilization fund is a part of the pre-1996
account and shall be administered by the board in accordance with the
powers and duties granted to the board by IC 5-10.4-3-10 through IC 5-10.4-3-14, IC 5-10.5-4, and IC 5-10.5-6.
(b) The following shall be deposited in the pension stabilization
fund:
(1) Amounts allocated to the pension stabilization fund by the
board from amounts transferred to the Indiana public retirement
system under IC 4-30-16-3.
(2) A part of the employer reserve balance as determined by the
budget director so that the employer reserve is sufficient for the
cash flow needs.
(3) Other amounts appropriated to the pension stabilization fund
by the general assembly.
(c) Payments from the pension stabilization fund must equal the
pre-1996 account liabilities for the current fiscal year minus the prior
year's state general fund payments for the pre-1996 account multiplied
by the pension stabilization percentage set forth in subsection (d).
(d) The pension stabilization percentage is one hundred six percent
(106%). The budget agency, after review by the budget committee and
with the approval of the governor, may change the pension stabilization
percentage so that the present value of future payments from the fund
equal the fund's balance plus the present value of future receipts to the
fund, but the payments may not allow the fund balance to be negative.
(e) Money in the pension stabilization fund at the end of a state
fiscal year does not revert to the state general fund.
[Pre-2006 Education Finance Recodification Citation:
21-6.1-2-8.]

Legislative History

As added by P.L.2-2006, SEC.28. Amended by P.L.35-2012, SEC.88; P.L.127-2018, SEC.11.