Ind. Code ch. 33-39-7

Ind. Code ch. 33-39-7
in effect

Ind. Code § 33-39-7-0.1 Applicability of P.L.33-2006 amendments

Sec. 0.1. The amendments made to sections 15, 16, and 19 of this chapter by P.L.33-2006 apply to a participant in the fund who: (1) is serving on July 1, 2006; or (2) serves after July 1, 2006; in a position described in section 8 of this chapter. As added by P.L.13-2011, SEC.11; P.L.220-2011, SEC.543. Amended by P.L.160-2013, SEC.1.

Ind. Code § 33-39-7-1 Application of chapter

Sec. 1. This chapter applies only to: (1) an individual who serves as a prosecuting attorney or chief deputy prosecuting attorney on or after January 1, 1990; and (2) a participant employed in a position described in section 8(a)(2) or 8(a)(3) of this chapter who serves in the position after June 30, 1995. [Pre-2004 Recodification Citation: 33-14-9-1.] As added by P.L.98-2004, SEC.18.

Ind. Code § 33-39-7-2 Americans with Disabilities Act

Sec. 2. As used in this chapter, "Americans with Disabilities Act" refers to the Americans with Disabilities Act (42 U.S.C. 12101 et seq.) and any amendments and regulations related to the Act. [Pre-2004 Recodification Citation: 33-14-9-1.5.] As added by P.L.98-2004, SEC.18.

Ind. Code § 33-39-7-3 "Board"

Sec. 3. As used in this chapter, "board" refers to the board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1. [Pre-2004 Recodification Citation: 33-14-9-2.] As added by P.L.98-2004, SEC.18. Amended by P.L.23-2011, SEC.26.

Ind. Code § 33-39-7-4 "Fiscal year"

Sec. 4. As used in this chapter, "fiscal year" means the period beginning on July 1 in any year and ending on June 30 of the following year. [Pre-2004 Recodification Citation: 33-14-9-3.] As added by P.L.98-2004, SEC.18.

Ind. Code § 33-39-7-5 Fund

Sec. 5. As used in this chapter, "fund" refers to the prosecuting attorneys retirement fund established by this chapter. [Pre-2004 Recodification Citation: 33-14-9-4.] As added by P.L.98-2004, SEC.18.

Ind. Code § 33-39-7-6 "Participant"

Sec. 6. As used in this chapter, "participant" means a person serving in a position described in section 8 of this chapter who is participating in the fund. [Pre-2004 Recodification Citation: 33-14-9-5.] As added by P.L.98-2004, SEC.18.

Ind. Code § 33-39-7-7 "Salary"

Sec. 7. As used in this chapter, "salary" means the salary paid to a participant by the state, determined without regard to any salary reduction agreement established under Section 125 of the Internal Revenue Code. The term does not include an amount paid to a participant by a county or counties. [Pre-2004 Recodification Citation: 33-14-9-6.] As added by P.L.98-2004, SEC.18.

Ind. Code § 33-39-7-8 "Services"

Sec. 8. (a) As used in this chapter, "services" means the sum of all periods in which a person is employed as: (1) a prosecuting attorney or chief deputy prosecuting attorney; (2) any other deputy prosecuting attorney who is: (A) appointed under IC 33-39-6-2; and (B) paid by the state from the state general fund; or (3) the executive director or the assistant executive director of the prosecuting attorneys council of Indiana. If an individual is elected or appointed to a position described in subdivisions (1) through (3) and serves one (1) or more terms or part of a term, then retires from office or otherwise separates from service, but at a later period or periods is appointed or elected and serves in a position described in subdivisions (1) through (3), the individual shall pay into the fund during all the periods that the individual serves in that position, except as otherwise provided in this chapter, whether the periods are connected or disconnected. (b) A senior prosecuting attorney appointed under IC 33-39-10-1 is not required to pay into the fund during any period of service as a senior prosecuting attorney. [Pre-2004 Recodification Citation: 33-14-9-7.] As added by P.L.98-2004, SEC.18. Amended by P.L.160-2013, SEC.2; P.L.57-2014, SEC.7.

Ind. Code § 33-39-7-9 Establishment of fund; contents

Sec. 9. The prosecuting attorneys retirement fund is established. The fund consists of the following: (1) Each participant's contributions to the fund. (2) All gifts, grants, devises, and bequests in money, property, or other form made to the fund. (3) All interest on investments or on deposits of the funds. (4) A contribution or payment to the fund made in a manner provided by the general assembly. [Pre-2004 Recodification Citation: 33-14-9-8.] As added by P.L.98-2004, SEC.18.

Ind. Code § 33-39-7-10 Fund construed as trust; purpose

Sec. 10. The fund shall be construed to be a trust, separate and distinct from all other entities, maintained to: (1) secure payment of benefits to the participants and their beneficiaries; and (2) pay the costs of administering this chapter. [Pre-2004 Recodification Citation: 33-14-9-9.] As added by P.L.98-2004, SEC.18.

Ind. Code § 33-39-7-10.5 Benefits exempted from legal process; reimbursement of employers; withholding payments while charges of criminal taking from employer pending

Sec. 10.5. (a) All assets in the fund are exempt from levy, sale, garnishment, attachment, or other legal process. However, a participant's contributions or benefits, or both, may be transferred to reimburse the participant's employer for loss resulting from the participant's criminal taking of the employer's property by the board if the board receives adequate proof of the loss. The loss resulting from the participant's criminal taking of the participant's employer's property must be proven by an order for restitution in favor of the employer issued by the sentencing court following a felony or misdemeanor conviction. (b) The board may withhold payment of a participant's contributions and interest if the employer of the participant notifies the board that felony or misdemeanor charges accusing the participant of the criminal taking of the employer's property have been filed. (c) The board may withhold payment of a participant's contributions and interest under subsection (b) until the final resolution of the criminal charges. (d) Subsections (b) and (c) do not apply to the: (1) retirement benefit of a retired participant; or (2) disability benefit of a participant who is permanently disabled. As added by P.L.27-2019, SEC.23. Amended by P.L.203-2019, SEC.5.

Ind. Code § 33-39-7-11 Administration; commingling; duties of board; appeals; confidentiality of fund records

Sec. 11. (a) The board shall administer the fund, which may be commingled with any public pension and retirement fund administered by the Indiana public retirement system for investment purposes. (b) The board shall do the following: (1) Determine eligibility for and make payments of benefits under this chapter. (2) In accordance with the powers and duties granted the board in IC 5-10.3-3-7.1, IC 5-10.3-5-3 through IC 5-10.3-5-6, IC 5-10.5-4, and IC 5-10.5-6, administer the fund. (3) Provide by rule for the implementation of this chapter. (4) Authorize deposits. (c) A determination by the board may be appealed under IC 4-21.5. (d) The powers and duties of: (1) the director and the actuary of the board; and (2) the attorney general; with respect to the fund are those specified in IC 5-10.3-3, IC 5-10.3-4, IC 5-10.5-4, and IC 5-10.5-6. (e) The board may hire additional personnel, including hearing officers, to assist in the implementation of this chapter. (f) Fund records of individual participants and participants' information are confidential, except for the name and years of service of a fund participant. [Pre-2004 Recodification Citation: 33-14-9-10.] As added by P.L.98-2004, SEC.18. Amended by P.L.94-2004, SEC.7; P.L.99-2010, SEC.10; P.L.13-2011, SEC.12; P.L.35-2012, SEC.105.

Ind. Code § 33-39-7-12 Contributions

Sec. 12. (a) Except as otherwise provided in this section, each participant shall make contributions to the fund as follows: (1) A participant described in section 8(a)(1) of this chapter shall make contributions of six percent (6%) of each payment of salary received for services after December 31, 1989. (2) A participant described in section 8(a)(2) or 8(a)(3) of this chapter shall make contributions of six percent (6%) of each payment of salary received for services after June 30, 1994. A participant's contributions shall be deducted from the participant's monthly salary by the state comptroller and credited to the fund. (b) The state may pay the contributions for a participant. The state may elect to pay the contribution for the participant as a pickup under Section 414(h) of the Internal Revenue Code. (c) After a participant has contributed to the fund as provided in subsection (a) for twenty-two (22) years, the participant is not required to make additional contributions to the fund. (d) After December 31, 2011, the state comptroller shall submit the contributions paid by or on behalf of a participant under this section by electronic funds transfer in accordance with section 12.5 of this chapter. [Pre-2004 Recodification Citation: 33-14-9-11.] As added by P.L.98-2004, SEC.18. Amended by P.L.13-2011, SEC.13; P.L.160-2013, SEC.3; P.L.9-2024, SEC.521.

Ind. Code § 33-39-7-12.5 Submission of contributions, reports, and records electronically

Sec. 12.5. (a) This section applies to reports, records, and contributions submitted after December 31, 2011, under this chapter. (b) As used in this section, "electronic funds transfer" has the meaning set forth in IC 4-8.1-2-7(f). (c) The state shall submit through the use of electronic funds transfer contributions paid by or on behalf of a participant under section 12 of this chapter. (d) The state shall submit in a uniform format through a secure connection over the Internet or through other electronic means specified by the board the reports and records required by the board under this chapter. (e) The board shall establish by rule the due dates for all reports, records, and contributions required under this chapter. As added by P.L.13-2011, SEC.14.

Ind. Code § 33-39-7-13 Withdrawals; rejoining fund if participant returns to service

Sec. 13. (a) A participant who: (1) ceases service in a position described in section 8 of this chapter, other than by death or disability; and (2) is not eligible for a retirement benefit under this chapter; is entitled to withdraw from the fund, beginning on the date specified by the participant in a written application. The date upon which the withdrawal begins may not be before the date of final termination of employment or the date thirty (30) days before the receipt of the application by the board. Upon withdrawal the participant is entitled to receive the total sum contributed plus interest at a rate specified by rule by the board, payable not later than sixty (60) days from the date of the withdrawal application. (b) Notwithstanding section 8 of this chapter, a participant who withdraws from the fund under subsection (a) and becomes a participant again at a later date is not entitled to service credit for years of service before the withdrawal, unless the participant pays into the fund the full amount received by the participant when the participant withdrew from the fund, plus interest at a rate specified by rule by the board. The board shall grant a participant service credit for years of service by the participant before the participant's withdrawal from the fund if the participant makes the repayment required by this subsection in a lump sum or a series of payments determined by the board, not exceeding five (5) annual installments. [Pre-2004 Recodification Citation: 33-14-9-12.] As added by P.L.98-2004, SEC.18. Amended by P.L.16-2011, SEC.9; P.L.54-2013, SEC.3.

Ind. Code § 33-39-7-14 Interest credits

Sec. 14. (a) Interest shall be credited at least annually on or before June 30 at a rate specified by rule by the board on all amounts credited to the member as of June 30 of the preceding year. (b) Contributions begin to accumulate interest at the beginning of the fiscal year after the year in which the contributions are due. (c) When a member retires or withdraws, a proportional interest credit determined under this chapter shall be paid for the period elapsed since the last date on which interest was credited. [Pre-2004 Recodification Citation: 33-14-9-12.5.] As added by P.L.98-2004, SEC.18. Amended by P.L.16-2011, SEC.10; P.L.92-2021, SEC.14.

Ind. Code § 33-39-7-15 Eligibility for retirement benefits

Sec. 15. A participant whose employment in a position described in section 8 of this chapter is terminated is entitled to a retirement benefit computed under section 16 or 18 of this chapter, beginning on the date specified by the participant in a written application, if all of the following conditions are met: (1) The application for retirement benefits and the choice of the retirement date is filed on a form provided by the board, and the retirement date is: (A) after the cessation of the participant's service; (B) on the first day of a month; and (C) not more than six (6) months before the date the application is received by the board. However, if the board determines that a participant is incompetent to file for benefits and choose a retirement date, the retirement date may be any date that is the first of the month after the time the participant became incompetent. (2) The participant: (A) is at least sixty-two (62) years of age and has at least eight (8) years of service credit; (B) is at least fifty-five (55) years of age and the participant's age in years plus the participant's years of service is at least eighty-five (85); or (C) has become permanently disabled. (3) The participant is not receiving and is not entitled to receive any salary for services currently performed, except for services rendered as a senior prosecuting attorney under IC 33-39-10-1. [Pre-2004 Recodification Citation: 33-14-9-13.] As added by P.L.98-2004, SEC.18. Amended by P.L.33-2006, SEC.1; P.L.160-2013, SEC.4; P.L.57-2014, SEC.8.

Ind. Code § 33-39-7-16 Computation of retirement benefits

Sec. 16. (a) This section does not apply to a participant who becomes permanently disabled, as described in section 17 of this chapter. (b) A participant who: (1) applies for a retirement benefit; and (2) is at least: (A) sixty-five (65) years of age; or (B) fifty-five (55) years of age and the participant's age in years plus the participant's years of service is at least eighty-five (85); is entitled to an annual retirement benefit as calculated in subsection (c). (c) Except as provided in subsections (d), (e), and (f), the amount of the annual retirement benefit to which a participant described in subsection (b) is entitled equals the product of: (1) the highest annual salary that was paid to the participant before separation from service; multiplied by (2) the percentage prescribed in the following table: Participant's Years of Service Less than 8 Percentage 0 8 24% 9 27% 10 30% 11 33% 12 50% 13 51% 14 52% 15 53% 16 54% 17 55% 18 56% 19 57% 20 58% 21 59% 22 or more 60% If a participant has a partial year of service in addition to at least eight (8) full years of service, an additional percentage is calculated under this subsection by prorating between the applicable percentages, based on the number of months in the partial year of service. (d) Except as provided in subsections (e) and (f), and section 19(c)(2)(B) of this chapter, a participant who: (1) applies for a retirement benefit; and (2) is not described in subsection (b); is entitled to receive a reduced annual retirement benefit that equals the benefit that would be payable if the participant were sixty-five (65) years of age reduced by one-fourth percent (0.25%) for each month that the participant's age at retirement precedes the participant's sixty-fifth birthday. (e) Except as provided in subsection (f), benefits payable to a participant under this section are reduced by the pension, if any, that: (1) the participant is receiving from the public employees' retirement fund, if the participant is receiving a pension from the public employees' retirement fund on the date of the participant's retirement from the prosecuting attorneys retirement fund; or (2) would be payable to the participant from the public employees' retirement fund if the participant had retired from the public employees' retirement fund on the date of the participant's retirement from the prosecuting attorneys retirement fund, if the participant is not receiving a pension from the public employees' retirement fund on the date of the participant's retirement from the prosecuting attorneys retirement fund. Benefits payable to a participant under this section are not reduced by annuity payments made to the participant from the public employees' retirement fund or by postretirement increases to the pension, if any, that the participant is receiving from the public employees' retirement fund. A participant to whom subdivision (2) applies is entitled to a recalculation of the benefits payable to the participant under this section after the participant has begun receiving a pension from the public employees' retirement fund based on the actual amount of the pension that the participant is receiving from the public employees' retirement fund. (f) This subsection applies to a participant who is a member of the public employees' defined contribution plan established by IC 5-10.3-12-18. Benefits payable to a participant under this section are reduced by the pension portion of the retirement benefit, if any, that would be payable to the participant from the public employees' retirement fund if the participant: (1) had not made an election under IC 5-10.3-12-20 to become a member of the public employees' defined contribution plan; and (2) had retired from the public employees' retirement fund on the date of the participant's retirement from the prosecuting attorneys retirement fund. (g) If benefits payable from the public employees' retirement fund exceed the benefits payable from the prosecuting attorneys retirement fund, the participant is entitled at retirement to withdraw from the prosecuting attorneys retirement fund the total sum contributed plus interest at a rate specified by rule by the board. [Pre-2004 Recodification Citation: 33-14-9-14.] As added by P.L.98-2004, SEC.18. Amended by P.L.33-2006, SEC.2; P.L.16-2011, SEC.11; P.L.54-2013, SEC.4; P.L.160-2013, SEC.5; P.L.57-2017, SEC.1; P.L.27-2019, SEC.24.

Ind. Code § 33-39-7-17 Eligibility for disability benefits; certification by physician; segregation of records

Sec. 17. (a) A participant is considered to have a permanent disability if the board has received written certifications by at least two (2) licensed and practicing physicians, appointed by the board, that: (1) the participant is totally incapacitated, by reason of physical or mental infirmities, from earning a livelihood; and (2) the condition is likely to be permanent. (b) A participant found to have a permanent disability under subsection (a) must be reexamined by at least two (2) physicians appointed by the board, at the times the board designates but at intervals not to exceed one (1) year. If, in the opinion of these physicians, the participant has recovered from the participant's disability, benefits cease to be payable as of the date of the examination, unless on that date the participant is: (1) at least sixty-five (65) years of age; or (2) at least fifty-five (55) years of age and the participant's age in years plus the participant's years of service is at least eighty-five (85). (c) To the extent required by the Americans with Disabilities Act, the transcripts, reports, records, and other material generated to prove that an individual is qualified for disability benefits under this section must be: (1) kept in separate medical files for each member; and (2) treated as confidential medical records. [Pre-2004 Recodification Citation: 33-14-9-15.] As added by P.L.98-2004, SEC.18. Amended by P.L.160-2013, SEC.6.

Ind. Code § 33-39-7-18 Computation of disability benefits

Sec. 18. (a) Except as provided in subsections (b) and (c), a participant who becomes permanently disabled, as described in section 17 of this chapter, is entitled to an annual benefit equal to the product of: (1) the annual salary that was paid to the participant at the time of separation from service; multiplied by (2) the percentage prescribed in the following table: Participant's Years of Service Percentage 0-12 50% 13 51% 14 52% 15 53% 16 54% 17 55% 18 56% 19 57% 20 58% 21 59% 22 or more 60% If a participant has a partial year of service in addition to at least ten (10) years of service, an additional percentage is calculated under this subsection by prorating between the applicable percentages, based on the number of months in the partial year of service. (b) Except as provided in subsection (c), benefits payable to a participant under this section are reduced by the amounts, if any, that are payable to the participant from the public employees' retirement fund. (c) This subsection applies to a participant who is a member of the public employees' defined contribution plan established by IC 5-10.3-12-18. Benefits payable to a participant under this section are reduced by the pension portion of the retirement benefit, if any, that would be payable to the participant from the public employees' retirement fund if the participant had not made an election under IC 5-10.3-12-20 to become a member of the public employees' defined contribution plan. [Pre-2004 Recodification Citation: 33-14-9-16.] As added by P.L.98-2004, SEC.18. Amended by P.L.54-2013, SEC.5; P.L.160-2013, SEC.7; P.L.27-2019, SEC.25.

Ind. Code § 33-39-7-19 Benefits payable to surviving spouse; eligibility; computation

Sec. 19. (a) A participant may designate the participant's surviving spouse or one (1) or more of the participant's surviving dependent children to receive the benefit provided by this section upon the death of the participant. A participant may designate a trust or a custodian account under IC 30-2-8.5 that is established for one (1) or more of the participant's surviving dependent children to receive the benefit provided by this section instead of designating one (1) or more of the participant's surviving dependent children to receive the benefit directly. (b) If a participant: (1) dies; and (2) on the date of death: (A) was receiving benefits under this chapter; (B) was in service in a position described in section 8 of this chapter and had completed at least eight (8) years of service in a position described in section 8 of this chapter; (C) had a permanent disability as described in section 17 of this chapter; or (D) was not in service in a position described in section 8 of this chapter, had completed at least eight (8) years of service in a position described in section 8 of this chapter, and was entitled to a future benefit; the participant's beneficiary designated under subsection (a) is entitled, regardless of the participant's age, to the benefit prescribed by subsection (c), (e), or (f). (c) The amount of the annual benefit payable to a beneficiary to whom subsection (b) applies is equal to the greater of: (1) twelve thousand dollars ($12,000); or (2) fifty percent (50%) of the amount of retirement benefit: (A) the participant was drawing at the time of death; or (B) to which the participant would have been entitled had the participant retired and begun receiving retirement benefits on the date of death. However, the reduction described in section 16(d) of this chapter does not apply to the calculation of a survivor benefit under this clause. (d) A benefit payable under this section is subject to the following: (1) A surviving spouse designated as the beneficiary under subsection (a) is entitled to receive the benefit for life. (2) The total monthly benefit payable to a surviving child or children is equal to the same monthly benefit that was to have been payable to the surviving spouse. (3) If there is more than one (1) child designated by the participant, the children are entitled to share the benefit in equal monthly amounts. (4) A child entitled to a benefit shall receive that child's share until the child becomes eighteen (18) years of age or during the entire period of the child's physical or mental disability, whichever period is longer. (5) Upon the cessation of benefits to one (1) designated child, if there are one (1) or more other children then surviving and still entitled to benefits, the remaining children shall share the benefit equally. If the surviving spouse of the participant is surviving upon the cessation of benefits to all designated children, the surviving spouse shall then receive the benefit for the remainder of the spouse's life. (6) The benefit is payable to the participant's surviving spouse if any of the following occur: (A) No child or children named as a beneficiary by the participant survives or survive the participant. (B) No child or children designated by the participant is or are entitled to a benefit due to the age of the child or children at the time of death of the participant. (C) A designation is not made. (e) Except as provided in subsection (f), benefits payable to a designated beneficiary under this section are reduced by the amount, if any, that is payable to the surviving spouse or the surviving dependent children from the public employees' retirement fund as a result of the participant's death after subtracting the participant's contributions and earnings attributable to the participant's contributions in the participant's annuity savings account. (f) This subsection applies to a surviving spouse of a participant who is a member of the public employees' defined contribution plan established by IC 5-10.3-12-18. Benefits payable to a surviving spouse of a participant under this section are reduced by the pension portion of the retirement benefit, if any, that would be payable to the spouse from the public employees' retirement fund under the joint and survivor option under IC 5-10.2-4-7, computed at fifty percent (50%) of the participant's decreased retirement benefit, if the participant had not made an election under IC 5-10.3-12-20 to become a member of the public employees' defined contribution plan. [Pre-2004 Recodification Citation: 33-14-9-17.] As added by P.L.98-2004, SEC.18. Amended by P.L.33-2006, SEC.3; P.L.54-2013, SEC.6; P.L.160-2013, SEC.8; P.L.27-2019, SEC.26.

Ind. Code § 33-39-7-20 Benefits payable to dependent children; eligibility; computation; distribution

Sec. 20. (a) If: (1) a participant's spouse does not survive the participant; and (2) the participant did not designate one (1) or more of the participant's surviving dependent children to receive the benefit provided by section 19 of this chapter; the participant's surviving dependent children are, upon the death of the participant, entitled to a benefit equal to the benefit the participant's spouse would have received under section 19 of this chapter. (b) If a surviving spouse of a decedent participant dies and a dependent child of the surviving spouse and the decedent participant survives them, that dependent child is entitled to receive a benefit equal to the benefit the spouse was receiving or would have received under section 19 of this chapter. (c) If there is more than one (1) dependent child, the dependent children are entitled to share the benefit equally. (d) Each dependent child is entitled to receive that child's share until the child becomes eighteen (18) years of age or during the entire period of the child's physical or mental disability, whichever period is longer. (e) Except as provided in subsection (f), benefits payable to a dependent child are reduced by the amount, if any, that is payable to the dependent child from the public employees' retirement fund after subtracting the participant's contributions and earnings attributable to the participant's contributions in the participant's annuity savings account. (f) This subsection applies to a dependent child of a participant who is a member of the public employees' defined contribution plan established by IC 5-10.3-12-18. Benefits payable to a dependent child of a participant under this section are reduced by the actuarial equivalent of the pension portion of the retirement benefit, if any, that would be payable to the spouse (assuming the spouse would have had the same birth date as the participant) from the public employees' retirement fund under the joint and survivor option under IC 5-10.2-4-7, computed at fifty percent (50%) of the participant's decreased retirement benefit, if the participant had not made an election under IC 5-10.3-12-20 to become a member of the public employees' defined contribution plan. [Pre-2004 Recodification Citation: 33-14-9-18.] As added by P.L.98-2004, SEC.18. Amended by P.L.54-2013, SEC.7; P.L.160-2013, SEC.9; P.L.27-2019, SEC.27.

Ind. Code § 33-39-7-21 Withdrawal of funds after participant dies; surviving spouse; children; estate

Sec. 21. (a) If benefits are not payable to the survivors of a participant who dies, and if a withdrawal application is filed with the board by the survivors or the participant's estate, the total of the participant's contributions, plus interest at a rate specified by rule by the board and minus any payments made to the participant, shall be paid to: (1) the surviving spouse of the participant or the children of the participant, as designated by the participant; (2) any dependents of the participant, if a spouse or designated child does not survive; or (3) the participant's estate, if a spouse, designated child, or other dependent does not survive. (b) The amount owed a spouse, designated children, other dependents, or estate under subsection (a) is payable not later than sixty (60) days after the date of receipt of the withdrawal application, or in monthly installments, as the recipient elects. [Pre-2004 Recodification Citation: 33-14-9-19.] As added by P.L.98-2004, SEC.18. Amended by P.L.16-2011, SEC.12; P.L.160-2013, SEC.10.

Ind. Code § 33-39-7-22 Satisfaction of Section 401 of the Internal Revenue Code requirements

Sec. 22. The fund shall satisfy the qualification requirements in Section 401 of the Internal Revenue Code as applicable to the fund. In order to meet those requirements, the fund is subject to the following provisions, notwithstanding any other provision of this chapter: (1) The board shall distribute the corpus and income of the fund to participants and their beneficiaries in accordance with this chapter. (2) A part of the corpus or income of the fund may not be used for or diverted to any purpose other than the exclusive benefit of the participants and their beneficiaries. (3) Forfeitures arising from severance of employment or death, or for any other reason, may not be applied to increase the benefits a participant would otherwise receive under the retirement fund law. (4) If the fund is terminated, or if all contributions to the fund are completely discontinued, the rights of each affected participant to the benefits accrued at the date of the termination or discontinuance, to the extent then funded, are nonforfeitable. (5) All benefits paid from the fund shall be distributed in accordance with the requirements of Section 401(a)(9) of the Internal Revenue Code and the regulations under that section. In order to meet those requirements, the fund is subject to the following provisions: (A) The life expectancy of a participant, the participant's spouse, or the participant's beneficiary shall not be recalculated after the initial determination for purposes of determining any benefits. (B) If a participant dies before the distribution of the participant's benefits has begun, distributions to beneficiaries must begin no later than December 31 of the calendar year immediately following the calendar year in which the member died. (6) The board may not: (A) determine eligibility for benefits; (B) compute rates of contribution; or (C) compute benefits of participant's beneficiaries; in a manner that discriminates in favor of participants who are considered officers, supervisors, or highly compensated, as prohibited under Section 401(a)(4) of the Internal Revenue Code. (7) Benefits paid under this chapter may not exceed the maximum benefits specified by Section 415 of the Internal Revenue Code. If a participant's benefits under this chapter would exceed that maximum benefit, the benefit payable under this chapter shall be reduced as necessary. (8) The salary taken into account under this chapter may not exceed the applicable amount under Section 401(a)(17) of the Internal Revenue Code. (9) The board may not engage in a transaction prohibited by Section 503(b) of the Internal Revenue Code. [Pre-2004 Recodification Citation: 33-14-9-20.] As added by P.L.98-2004, SEC.18.

Ind. Code § 33-39-7-23 Appropriations

Sec. 23. (a) For purposes of this chapter, the following amounts are appropriated for each biennium: (1) From the state general fund, the amount required to actuarially fund participants' retirement benefits, as determined by the board on recommendation of an actuary. (2) From the fund, the amount required for administration purposes. (b) The biennial appropriations provided in this section shall be credited to the board annually in equal installments in the month of July of each year of the biennium. [Pre-2004 Recodification Citation: 33-14-9-21.] As added by P.L.98-2004, SEC.18.

Ind. Code § 33-39-7-24 Rollover to eligible retirement plan

Sec. 24. Notwithstanding any other provision of this chapter, to the extent required by Internal Revenue Code Section 401(a)(31), as added by the Unemployment Compensation Amendments of 1992 (P.L.102-318), and any amendments and regulations related to Section 401(a)(31), the fund shall allow participants and qualified beneficiaries to elect a direct rollover of eligible distributions to another eligible retirement plan. [Pre-2004 Recodification Citation: 33-14-9-22.] As added by P.L.98-2004, SEC.18.

Ind. Code § 33-39-7-25 Administration; service credit

Sec. 25. (a) Notwithstanding any other provision of this chapter, the fund must be administered in a manner consistent with the Family and Medical Leave Act of 1993 (29 U.S.C. 2601 et seq.). A member on a leave of absence that qualifies for the benefits and protections afforded by the Family and Medical Leave Act is entitled to receive credit for vesting and eligibility purposes to the extent required by the Family and Medical Leave Act, but is not entitled to receive credit for service for benefit purposes. (b) Notwithstanding any other provision of this chapter, a participant is entitled to service credit and benefits in the amount and to the extent required by the Uniformed Services Employment and Reemployment Rights Act (38 U.S.C. 4301 et seq.). [Pre-2004 Recodification Citation: 33-14-9-23.] As added by P.L.98-2004, SEC.18.

Ind. Code § 33-39-7-26 Assignment of benefits

Sec. 26. A participant, 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 participants in the plan. As added by P.L.27-2019, SEC.28.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/33Fetched: 10/17/2026

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