§ 5-10.4-4-4 — Out-of-state service

Indiana § 5-10.4-4-4

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 10.4: STATE TEACHERS' RETIREMENT FUND
• Ch. 4: Fund Membership; Employee Contributions; Creditable

Text

(a) As used in this section, "out-of-state
service" means service in any state in a comparable position that would
be creditable service if performed in Indiana. The term includes
comparable service performed:
(1) on a United States military installation;
(2) in a federal prison; or
(3) at an educational facility operated or supervised by the Bureau
of Indian Affairs.
(b) In computing the service credit for a member who began
teaching in Indiana before July 1, 1981, and who has served as a public
school teacher out of state, the board may include the greater of:
(1) eight (8) years of out-of-state service rendered before July 1,
1981; or
(2) one (1) year of out-of-state service rendered before July 1,
1981, for every four (4) years of in-state service.
(c) In addition, a member may purchase and claim out-of-state
service credit that has not been claimed under subsection (b) subject to
the limitations of subsections (d) and (e) if the member satisfies 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 that meet the following requirements:
(A) The contributions are equal to the product of the following:
(i) For service credit purchased before January 1, 1994, the
member's salary when the member first became a member of
the fund. For service credit purchased after December 31,
1993, the member's salary at the time the member actually
makes a contribution for the service credit.
(ii) For service credit purchased before January 1, 1994,
normal cost, as determined by the actuary of the fund. For
purposes of this section, "normal cost" means the value of the
annual amount required to fund the prospective benefits
promised an employee for the work the employee has
performed. For service credit purchased after December 31,
1993, a percentage rate, as 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) The contributions are 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.
(d) Out-of-state years that qualify a member for retirement in an
out-of-state system or in a federal retirement system may not be granted
under this section.
(e) After April 1, 1965, at least ten (10) years of in-state service is
required before a member may claim any out-of-state service credits.
(f) 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 the contributory
plan plus accumulated interest after submitting a properly completed
application for a refund to the fund.
(g) The following apply to the purchase of service credit under this
section after July 1, 1998:
(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.
(h) Contributions received after July 1, 1993, for the purchase of
service credit under this section must be applied against the unfunded
accrued liability of the fund.
[Pre-2006 Education Finance Recodification Citation:
21-6.1-4-4.5.]

Legislative History

As added by P.L.2-2006, SEC.28. Amended by P.L.8-2015, SEC.7.