Ind. Code ch. 5-10.4-8

in effect

Ind. Code § 5-10.4-8-1 Application to employees

Sec. 1. (a) Except as provided in subsection (b), this chapter applies after the effective date of the plan to an individual who: (1) begins employment with a school corporation in a covered position that would otherwise be eligible for membership in the fund under IC 5-10.4-4; and (2) makes an election described in section 6 of this chapter to become a member of the plan. (b) This chapter does not apply to the following: (1) An individual who, before the effective date of the plan, is or was a member (as defined in IC 5-10.4-1-9) of the fund. (2) An individual who, on or after the effective date of the plan: (A) begins employment with a school corporation that participates in the plan in a covered position that would otherwise be eligible for membership in the fund under IC 5-10.4-4; and (B) does not make the election described in section 6 of this chapter to become a member of the plan. As added by P.L.217-2017, SEC.58.

Ind. Code § 5-10.4-8-2 Definitions

Sec. 2. The following definitions apply throughout this chapter: (1) "Account" means the plan account established for a member under section 7(b) of this chapter. (2) "Annuity savings account" means the annuity savings account of the 1996 account maintained under IC 5-10.2-2-2(b)(2) and IC 5-10.2-2-2(c)(1). (3) "Compensation" has the meaning set forth in IC 5-10.2-3-2(a). (4) "Effective date" means the first day of the month that is six (6) months after the month in which the board adopts provisions to implement the plan under section 4(b) of this chapter. (5) "Employer" means a school corporation. (6) "Employer contribution subaccount" means the subaccount in a member's plan account established under section 7(b)(2) of this chapter. (7) "Fund" refers to the Indiana state teachers' retirement fund established by IC 5-10.4-2-1. (8) "Internal Revenue Code" has the meaning set forth in IC 5-10.2-1-3.5. (9) "Member" means an individual described in section 1(a) of this chapter who is not otherwise excluded from membership in the plan. (10) "Member contribution subaccount" means the subaccount in a member's plan account established under section 7(b)(1) of this chapter. (11) "Normal retirement age" for a member means the member is at least sixty-two (62) years of age with at least five (5) years of participation in the plan. (12) "Plan" refers to the teachers' defined contribution plan established by section 4 of this chapter. (13) "Years of participation" means all periods of participation in the plan in a covered position, plus any additional service for which this chapter provides years of participation credit. As added by P.L.217-2017, SEC.58. Amended by P.L.27-2019, SEC.12.

Ind. Code § 5-10.4-8-3 Application of annuity savings account provisions; IRS approval

Sec. 3. Except as otherwise provided in this chapter or by federal law, and subject to the board obtaining any approval from the Internal Revenue Service that the board considers necessary or desirable, the provisions of this article that apply to the annuity savings account apply to an account established under this chapter. As added by P.L.217-2017, SEC.58.

Ind. Code § 5-10.4-8-4 Teacher's defined contribution plan established

Sec. 4. (a) The teachers' defined contribution plan is established for the purpose of providing amounts funded by an employer and a member for the use of the member or the member's beneficiaries or survivors after the member's retirement. (b) The board shall adopt provisions to implement the plan established under subsection (a) as follows: (1) The board shall initially offer the plan using the annuity savings account, subject to obtaining any approval from the Internal Revenue Service that the board considers necessary or desirable to preserve the qualified status of the plan and the fund. If, and while, the plan is offered using the annuity savings account under this subdivision, the plan is a component within the fund. (2) If the approval of the Internal Revenue Service to offer the plan using the annuity savings account cannot be obtained in a manner satisfactory to the board, the board shall offer the plan as a separate fund under Section 401(a) or another applicable section of the Internal Revenue Code. (3) If the board initially offers the plan using the annuity savings account as provided under subdivision (1), the board may at any time afterwards convert the plan to a separate fund under Section 401(a) or another applicable section of the Internal Revenue Code. If the board converts the plan to a separate fund as provided under this subdivision, after the conversion the plan is not a component within the fund. (c) The board shall administer the plan. (d) The board may adopt a plan document that it considers appropriate or necessary to administer the plan. As added by P.L.217-2017, SEC.58. Amended by P.L.27-2019, SEC.13.

Ind. Code § 5-10.4-8-5 Request for IRS rulings

Sec. 5. The board may request from the Internal Revenue Service any rulings or determination letters that the board considers necessary or appropriate in order to implement or administer the plan. As added by P.L.217-2017, SEC.58.

Ind. Code § 5-10.4-8-6 Election to become a member of plan

Sec. 6. (a) An individual who, on or after the effective date of the plan, begins employment with a school corporation that participates in the plan in a covered position that would otherwise be eligible for membership in the fund under IC 5-10.4-4 may elect to become a member of the plan. (b) An election under this section: (1) must be made in writing; (2) must be filed with the board, on a form prescribed by the board; and (3) is irrevocable. (c) An individual who does not elect to become a member of the plan becomes a member (as defined in IC 5-10.4-1-9) of the fund. As added by P.L.217-2017, SEC.58.

Ind. Code § 5-10.4-8-7 Plan contributions; member accounts

Sec. 7. (a) The plan consists of the following: (1) Each member's contributions to the plan under section 9 of this chapter. (2) Contributions made by an employer to the plan on behalf of each member under section 10 of this chapter. (3) Rollovers to the plan by a member under section 15 of this chapter. (4) All earnings on investments or deposits of the plan. (5) All contributions or payments to the plan made in the manner provided by the general assembly. (b) The plan shall establish an account for each member. A member's account consists of two (2) subaccounts credited individually as follows: (1) The member contribution subaccount consists of: (A) the member's contributions to the plan under section 9 of this chapter; and (B) the net earnings on the contributions described in clause (A) as determined under section 8 of this chapter. (2) The employer contribution subaccount consists of: (A) the employer's contributions made on behalf of the member to the plan under section 10 of this chapter; and (B) the earnings on the contributions described in clause (A) as determined under section 8 of this chapter. The board may combine the two (2) subaccounts established under this subsection into a single account, if the board determines that a single account is administratively appropriate and permissible under applicable law. (c) If a member makes rollover contributions under section 15 of this chapter, the plan shall establish a rollover account as a separate subaccount within the member's account. As added by P.L.217-2017, SEC.58.

Ind. Code § 5-10.4-8-8 Stable value fund; alternative investment programs

Sec. 8. (a) Subject to the board obtaining any approval from the Internal Revenue Service that the board considers necessary or desirable, the board shall establish: (1) a stable value fund for the plan; and (2) alternative investment programs for the plan. (b) The board may adopt requirements and rules that apply to the alternative investment programs within the plan, including the following: (1) The board's investment guidelines and limits for the alternative investment programs. (2) A member's selection of and changes to the member's investment options. (3) The valuation of a member's account. (4) The allocation and payment of administrative expenses for the alternative investment programs. (c) The board shall determine the appropriate administrative fees to be charged to the member accounts. As added by P.L.217-2017, SEC.58. Amended by P.L.27-2019, SEC.14.

Ind. Code § 5-10.4-8-8.5 Self-directed brokerage account offering cryptocurrency investment option within the teachers' defined contribution plan

Sec. 8.5. (a) Not later than July 1, 2027, the board shall offer, as a regular investment program within the plan, a self directed brokerage account that offers at least one (1) cryptocurrency investment option. (b) The board may adopt requirements and rules that apply to a cryptocurrency investment option under a self directed brokerage account offered under subsection (a), including the following: (1) The board's investment guidelines and limits for the cryptocurrency investment option. (2) A member's selection of and changes to the member's investment options. (3) The valuation of a member's account. (4) The allocation and payment of administrative expenses for the cryptocurrency investment option. (c) The board shall determine the appropriate administrative fees to be charged to the member accounts. As added by P.L.49-2026, SEC.10.

Ind. Code § 5-10.4-8-9 Member contribution; employer obligation to make required member contribution; additional member contribution

Sec. 9. (a) Each member's contribution to the plan is equal to three percent (3%) of the member's compensation. (b) An employer shall pay a member's contribution on behalf of the member. (c) To the extent permitted by the Internal Revenue Code and applicable regulations, a member of the plan may make contributions to the plan in addition to the contribution required under subsection (a). IC 5-10.2-3-2(c) and IC 5-10.2-3-2(d) govern additional contributions made under this subsection. (d) Member contributions must be credited to the member's account as specified in IC 5-10.2-3. (e) Although designated as employee contributions, the contributions made under subsection (b) by an employer must be picked up and paid by the employer instead of the contributions being paid by the employee in accordance with Section 414(h)(2) of the Internal Revenue Code. (f) A member may not receive any amounts paid by an employer under this section directly instead of having the amounts paid to the plan. As added by P.L.217-2017, SEC.58.

Ind. Code § 5-10.4-8-10 Contribution rates

Sec. 10. (a) An employer shall make employer contributions to the plan based on the rate determined under this section. (b) The employer's contribution rate for the plan must be equal to the employer's contribution rate for the fund as determined by the board under IC 5-10.2-2-11(b). The amount credited from the employer's contribution rate to the member's account shall be the normal cost of the fund. Any amount not credited to the member's account must be applied to the unfunded accrued liability of the fund as determined under IC 5-10.2-2-11(c). (c) Notwithstanding subsection (b), an employer's minimum contribution under this section is equal to three percent (3%) of the compensation of all members of the plan. (d) An employer shall submit the employer contributions determined under this section as provided in IC 5-10.2-2-12.5. As added by P.L.217-2017, SEC.58.

Ind. Code § 5-10.4-8-11 Contributions and earnings belong to member; vesting in employer contribution subaccount; forfeiture of employer contributions

Sec. 11. (a) Member contributions and net earnings on the member contributions in the member contribution subaccount belong to the member at all times and do not belong to the employer. (b) A member is vested in the employer contribution subaccount in accordance with the following schedule: Years of participation in the Vested percentage of plan employer contributions and earnings 1 20% 2 40% 3 60% 4 80% 5 100% For purposes of vesting in the employer contribution subaccount, only a member's full years of participation in the plan may be counted. (c) The amount that a member may withdraw from the member's account is limited to the vested portion of the account. (d) A member who attains normal retirement age is fully vested in all amounts in the member's account. (e) If a member separates from service with an employer before the member is fully vested in the employer contribution subaccount, the amount in the employer contribution subaccount that is not vested remains in the employer contribution subaccount as unvested employer contributions until, and only to the extent that, the unvested employer contributions: (1) become vested in accordance with subsection (b); (2) are forfeited in accordance with subsection (f); or (3) in some proportion, become vested under subdivision (1) and forfeited under subdivision (2). (f) A member forfeits unvested employer contributions in the member's employer contribution account on the earliest of the following dates: (1) The date of the member's death. (2) The date that the member withdraws the member's money from the plan. (3) The date that the plan is required to distribute the member's money from the plan. (g) Amounts forfeited under subsection (f) must be used as determined by the board. (h) A member may not earn creditable service (as defined in IC 5-10.2-3-1(a)) under the plan. As added by P.L.217-2017, SEC.58.

Ind. Code § 5-10.4-8-12 Withdrawals from member account

Sec. 12. (a) After December 31, 2020, subject to the provisions of the Internal Revenue Code applicable to qualified plan distributions, a member who terminates service in a covered position is entitled to withdraw all or part of the amounts in the member's account to the extent the member is vested in the account. A member must make a required withdrawal from the member's account not later than the required beginning date under the Internal Revenue Code. (b) A member may elect to have withdrawals paid as: (1) a lump sum; (2) a direct rollover to another eligible retirement plan; or (3) if the member has attained normal retirement age, a monthly annuity in accordance with the rules of the board. (c) The board may establish a minimum account balance or a minimum monthly payment amount in order for a member to select the monthly annuity option. The board shall establish the forms of annuity by rule, in consultation with the board's actuary. The board shall give members information about these forms of payment and any information required by federal law to accompany such distributions. (d) Unless otherwise required by federal or state law, the requirements and rules that apply to the distribution of the annuity savings account apply to distributions from a member's account. (e) Subject to the Pension Protection Act of 2006 and notwithstanding any state law, after December 31, 2020, an active member who: (1) reaches normal retirement age; and (2) has attained vested status in the fund; may withdraw all or part of the amount in the member's account without separating from a covered position. As added by P.L.217-2017, SEC.58. Amended by P.L.27-2019, SEC.15; P.L.51-2020, SEC.6.

Ind. Code § 5-10.4-8-13 Member death; payment to beneficiaries

Sec. 13. (a) If a member dies: (1) while in service in a position covered by the plan; or (2) after terminating service in a position covered by the plan but before withdrawing the member's account; to the extent that the member is vested, the member's account shall be paid to the beneficiary or beneficiaries designated by the member on a form prescribed by the board. The amount paid must be valued as provided in IC 5-10.2-2-3. The board shall invest the total amount in the member's account in the stable value fund not later than thirty (30) days after receiving notification of a member's death. (b) If there is no properly designated beneficiary, or if no beneficiary survives the member, the member's account shall be paid to: (1) the surviving spouse of the member; (2) if there is not a surviving spouse, the surviving dependent or dependents of the member in equal shares; or (3) if there is not a surviving spouse or dependent, the member's estate. (c) The beneficiary or beneficiaries designated under subsection (a) or a survivor determined under subsection (b) may elect to have the member's account paid as: (1) a lump sum; (2) a direct rollover to another eligible retirement plan; or (3) a monthly annuity in accordance with rules of the board. A monthly annuity is an option only on or after the date the beneficiary or survivor becomes sixty-two (62) years of age. The board shall establish the forms of annuity by rule, in consultation with the board's actuary. Further, the board may establish a minimum account balance or a minimum monthly payment amount that is required in order for a beneficiary or survivor to select the monthly annuity option. As added by P.L.217-2017, SEC.58.

Ind. Code § 5-10.4-8-14 Assets of plan exempt from levy, sale, garnishment, attachment, or other legal process; limited assignment by member

Sec. 14. (a) All assets in the plan are exempt from levy, sale, garnishment, attachment, or other legal process. (b) A member, beneficiary, or survivor may not assign any payment under this chapter except for the following: (1) Premiums on a life, hospitalization, surgical, or medical group insurance plan maintained in part by a state agency. (2) Dues to an association that proves to the board's satisfaction that the association has as members at least twenty percent (20%) of the retired members in the plan. As added by P.L.217-2017, SEC.58.

Ind. Code § 5-10.4-8-15 Rollovers

Sec. 15. (a) To the extent permitted by the Internal Revenue Code and the applicable regulations and guidance, the plan may accept, on behalf of any member, a rollover distribution from any of the following: (1) A qualified plan described in Section 401(a) or Section 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 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. (4) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code. (b) Any amounts rolled over under subsection (a) must be accounted for in a rollover account that is separate from the member's account in the plan. The member is fully vested in the member's rollover account. (c) A member may direct the investment of the member's rollover account into any alternative investment option that the board may make available to the member's rollover account under section 8 of this chapter. (d) A member may withdraw all or part of the member's rollover account from the plan in a lump sum or direct a rollover to an eligible retirement plan at any time. Upon attainment of normal retirement age, in addition to these payment options, the member may withdraw the member's rollover account as a monthly annuity as established by the board in accordance with the annuity options that are available for the member's account in the plan. A member shall make a required withdrawal from the member's account in the plan not later than the required beginning date under the Internal Revenue Code. As added by P.L.217-2017, SEC.58. Amended by P.L.179-2018, SEC.11; P.L.27-2019, SEC.16.

Ind. Code § 5-10.4-8-16 Member disability

Sec. 16. (a) If a member becomes disabled while in a covered position, subject to any federal law limitations concerning qualified plan distributions and the member furnishing proof of the member's qualification for Social Security disability benefits to the board, to the extent that the member is vested, the member may make a full or partial withdrawal from the member's account. (b) The member may elect to have the withdrawal paid as: (1) a lump sum; (2) a direct rollover to another eligible retirement plan; or (3) a monthly annuity in accordance with the rules of the board. (c) The board may establish a minimum account balance or a minimum monthly payment amount in order for a member to select the monthly annuity option. As added by P.L.217-2017, SEC.58. Amended by P.L.27-2019, SEC.17.

Ind. Code § 5-10.4-8-17 Resuming membership; second election not allowed

Sec. 17. (a) If a member of the plan separates from employment with the member's employer and later returns to employment in a position covered by the plan: (1) the individual resumes membership in the plan; and (2) the member is entitled to receive credit for the member's years of participation in the plan before the member's separation. (b) An individual who elected under section 6 of this chapter to become a member of the plan resumes membership in the plan upon the individual's return to employment covered by the plan. (c) An individual who did not elect to become a member of the plan resumes membership in the fund. (d) An individual who returns to employment in a position covered by the plan having had an opportunity to make an election under section 6 of this chapter during an earlier period of employment is not entitled to a second opportunity to make an election under section 6 of this chapter. As added by P.L.217-2017, SEC.58.

Ind. Code § 5-10.4-8-18 Second chance election

Sec. 18. (a) This section applies notwithstanding sections 6 and 17 of this chapter. (b) A member who is fully vested in the employer contribution subaccount under section 11 of this chapter may make an election to participate in the fund. (c) The following apply to an election made under subsection (b): (1) The election must be made: (A) within a time; and (B) in a form and manner; approved by the board. (2) An employee who makes an election under subsection (b) becomes a member of the fund on the date described in IC 5-10.4-4-1(e). (3) The election is irrevocable. (d) A member who does not make an election under subsection (b) remains a member of the plan. The failure to make an election under subsection (b) is irrevocable. As added by P.L.104-2026, SEC.19.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026