§ 5-10.4-4-5 — Private teaching service

Indiana § 5-10.4-4-5

• 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, "private teaching
service" means service in Indiana as a teacher in a private school,
kindergarten through postsecondary, that would be creditable service
if performed in an accredited public school in Indiana.
(b) A member may purchase and claim private teaching service
credit subject to the following:
(1) The member must have at least one (1) year of credited
service in the fund.
(2) The member must have at least ten (10) years of in-state
credited service before the member may claim the service credit.
(3) Before the member retires, the member must make
contributions to the fund:
(A) that are equal to the product of:
(i) the member's salary at the time the member actually 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; and
(iii) the number of years of private teaching service the
member intends to purchase; and
(B) 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.
(4) The fund must receive verification from the private school that
the private teaching service occurred.
(c) Service for years of private teaching that qualify a member for
retirement in an out-of-state system, a private retirement system, or a
federal retirement system may not be granted under this section.
(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 the contributory
plan 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.
[Pre-2006 Education Finance Recodification Citation:
21-6.1-4-4.6.]

Legislative History

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