Ind. Code ch. 5-10.3-12

Ind. Code ch. 5-10.3-12
in effect

Ind. Code § 5-10.3-12-1 Applicability of chapter

Sec. 1. (a) Except as otherwise provided in this section, this chapter applies to the following: (1) An individual who: (A) on or after the effective date of the plan, becomes for the first time a full-time employee of the state: (i) in a position that would otherwise be eligible for membership in the fund under IC 5-10.3-7; and (ii) who is paid by the state comptroller by salary warrants; and (B) makes the election described in section 20 of this chapter to become a member of the plan. (2) An individual: (A) who becomes a full-time employee of a participating political subdivision in a covered position after an ordinance or resolution described in clause (C) that is adopted by the political subdivision has been approved by the board; (B) who would otherwise be eligible for membership in the fund under IC 5-10.3-7; and (C) who is employed by a political subdivision that has elected in an ordinance or resolution adopted under IC 5-10.3-6-1 and approved by the board to require an employee in the covered position to become a member of the plan. (3) An individual: (A) who becomes a full-time employee of a political subdivision in a covered position after an ordinance or resolution described in clause (C) that is adopted by the political subdivision has been approved by the board; (B) who would otherwise be eligible for membership in the fund under IC 5-10.3-7; (C) who is employed by a political subdivision that has elected in an ordinance or resolution adopted under IC 5-10.3-6-1 and approved by the board: (i) to allow an employee in the covered position to become a member of the fund or a member of the plan at the discretion of the employee; and (ii) to require an employee in a covered position to make an election under section 20.5 of this chapter in order to become a member of the plan; and (D) who makes an election under section 20.5 of this chapter to become a member of the plan. (4) An individual: (A) who becomes a full-time employee of a political subdivision in a covered position after an ordinance or resolution described in clause (C) that is adopted by the political subdivision has been approved by the board; (B) who would otherwise be eligible for membership in the fund under IC 5-10.3-7; (C) who is employed by a political subdivision that has elected in an ordinance or resolution adopted under IC 5-10.3-6-1 and approved by the board: (i) to allow an employee in the covered position to become a member of the fund or a member of the plan at the discretion of the employee; and (ii) to require an employee to make an election under IC 5-10.3-7-1.1 in order to become a member of the fund; and (D) who does not make an election under IC 5-10.3-7-1.1 to become a member of the fund. (5) An individual who makes an election described in section 20.3 of this chapter. (6) An individual: (A) who is a retired member (as defined in IC 5-10.3-1-5) of the fund; (B) who is prohibited from making contributions to the fund under IC 5-10.2-4-8(e) during a period of reemployment that begins more than thirty (30) days after the member retired; and (C) who, on or after the date: (i) the state files a notice; or (ii) a participating political subdivision files an adopted ordinance or resolution; with the board in accordance with section 32 of this chapter, begins, or is engaged in, a period of reemployment with the state or a participating political subdivision as a full-time employee more than thirty (30) days after the individual's retirement in a position that would otherwise be covered by the fund. (7) An individual who becomes a member of a volunteer fire department in a covered position after a political subdivision served by the volunteer fire department has elected in an ordinance or resolution adopted under IC 5-10.3-6-1.1 and approved by the board to require an individual in the covered position to become a member of the plan. (b) Except as provided in subsection (c), this chapter does not apply to an individual who, on or after the effective date of the plan: (1) becomes for the first time a full-time employee of the state in a position that would otherwise be eligible for membership in the fund under IC 5-10.3-7; and (2) is employed by: (A) a body corporate and politic of the state created by state statute; or (B) a state educational institution (as defined in IC 21-7-13-32). (c) The chief executive officer of a body or institution described in subsection (b) may elect, by submitting a written notice of the election to the director, to have this chapter apply to individuals who, as employees of the body or institution, become for the first time full-time employees of the state in positions that would otherwise be eligible for membership in the fund under IC 5-10.3-7. An election under this subsection is effective on the later of: (1) the date the notice of the election is received by the director; or (2) March 1, 2013. As added by P.L.22-2011, SEC.2. Amended by P.L.54-2013, SEC.2; P.L.241-2015, SEC.24; P.L.193-2016, SEC.14; P.L.209-2016, SEC.3; P.L.96-2020, SEC.3; P.L.9-2024, SEC.128.

Ind. Code § 5-10.3-12-2 "Account"

Sec. 2. As used in this chapter, "account" means the plan account established for a member under section 21(b) of this chapter. As added by P.L.22-2011, SEC.2.

Ind. Code § 5-10.3-12-3 "Annuity savings account"

Sec. 3. As used in this chapter, "annuity savings account" means the annuity savings account maintained under IC 5-10.2-2-2(a)(1). As added by P.L.22-2011, SEC.2.

Ind. Code § 5-10.3-12-4 "Board"

Sec. 4. As used in this chapter, "board" has the meaning set forth in IC 5-10.3-1-1. As added by P.L.22-2011, SEC.2.

Ind. Code § 5-10.3-12-5 "Compensation"

Sec. 5. As used in this chapter, "compensation" has the meaning set forth in IC 5-10.2-3-2(a). As added by P.L.22-2011, SEC.2.

Ind. Code § 5-10.3-12-6 "Dies in the line of duty"

Sec. 6. As used in this chapter, "dies in the line of duty" has the meaning set forth in IC 5-10-11-2. As added by P.L.22-2011, SEC.2.

Ind. Code § 5-10.3-12-7 "Effective date"

Sec. 7. As used in this chapter, "effective date" means the first day of the month that is six (6) months after the month in which the Internal Revenue Service issues an approval of the plan. As added by P.L.22-2011, SEC.2.

Ind. Code § 5-10.3-12-7.5 "Employees of the state"

Sec. 7.5. As used in this chapter, "employees of the state" has the meaning set forth in IC 5-10.3-7-1. As added by P.L.241-2015, SEC.25.

Ind. Code § 5-10.3-12-8 "Employer"

Sec. 8. As used in this chapter, "employer" means the state or a participating political subdivision. As added by P.L.22-2011, SEC.2. Amended by P.L.241-2015, SEC.26.

Ind. Code § 5-10.3-12-9 "Employer contribution subaccount"

Sec. 9. As used in this chapter, "employer contribution subaccount" means the subaccount in a member's plan account established under section 21(b)(2) of this chapter. As added by P.L.22-2011, SEC.2.

Ind. Code § 5-10.3-12-10 "Fund"

Sec. 10. As used in this chapter, "fund" has the meaning set forth in IC 5-10.3-1-3. As added by P.L.22-2011, SEC.2.

Ind. Code § 5-10.3-12-11 "Internal Revenue Code"

Sec. 11. As used in this chapter, "Internal Revenue Code" has the meaning set forth in IC 5-10.2-1-3.5. As added by P.L.22-2011, SEC.2.

Ind. Code § 5-10.3-12-12 "Member"

Sec. 12. As used in this chapter, "member" means an individual who has elected or is required to participate in the plan. As added by P.L.22-2011, SEC.2. Amended by P.L.241-2015, SEC.27.

Ind. Code § 5-10.3-12-13 "Member contribution subaccount"

Sec. 13. As used in this chapter, "member contribution subaccount" means the subaccount in a member's plan account established under section 21(b)(1) of this chapter. As added by P.L.22-2011, SEC.2.

Ind. Code § 5-10.3-12-14 "Normal retirement age"

Sec. 14. As used in this chapter, "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. As added by P.L.22-2011, SEC.2. Amended by P.L.66-2013, SEC.1.

Ind. Code § 5-10.3-12-14.5 "Participating political subdivision"

Sec. 14.5. As used in this chapter, "participating political subdivision" means a political subdivision which is participating in the plan as specified in IC 5-10.3-6. As added by P.L.241-2015, SEC.28.

Ind. Code § 5-10.3-12-15 "Plan"

Sec. 15. As used in this chapter, "plan" refers to the public employees' defined contribution plan established by section 18 of this chapter. As added by P.L.22-2011, SEC.2.

Ind. Code § 5-10.3-12-15.5 "Volunteer fire department"

Sec. 15.5. As used in this chapter, "volunteer fire department" has the meaning set forth in IC 36-8-12-2. As added by P.L.96-2020, SEC.4.

Ind. Code § 5-10.3-12-16 "Years of participation"

Sec. 16. As used in this chapter, "years of participation" means periods of participation in the plan in a covered position, plus any additional service for which this chapter provides years of participation credit, except that the term excludes periods of participation in the plan in a covered position for service described in section 1(a)(7) of this chapter. As added by P.L.22-2011, SEC.2. Amended by P.L.92-2021, SEC.10.

Ind. Code § 5-10.3-12-17 Applicability of other laws

Sec. 17. Except as otherwise provided in this chapter or by federal law, and subject to the board obtaining the approval of the Internal Revenue Service as described in section 18(b) of this chapter, the provisions of IC 5-10.3 that apply to the annuity savings account apply to an account established under this chapter. As added by P.L.22-2011, SEC.2.

Ind. Code § 5-10.3-12-18 Establishment and administration of plan; Internal Revenue Service approval

Sec. 18. (a) The public employees' 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 the approval of the Internal Revenue Service in a manner satisfactory to the board to preserve the qualified status of the plan and the fund. If, and while, the plan uses the annuity savings account as provided in 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.22-2011, SEC.2. Amended by P.L.27-2019, SEC.6.

Ind. Code § 5-10.3-12-19 Authorization to request Internal Revenue Service rulings or determination letters

Sec. 19. 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.22-2011, SEC.2.

Ind. Code § 5-10.3-12-20 Plan membership; election; fund membership

Sec. 20. (a) This section applies only to an individual who, on or after the effective date of the plan, becomes for the first time a full-time employee of the state in a position that would otherwise be eligible for membership in the fund under IC 5-10.3-7. (b) An individual to whom this section applies may elect to become a member of the plan for all service credit that the member accrues in a covered position as an employee of the state. 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) Except as provided in section 32(a) of this chapter, an individual who does not elect to become a member of the plan becomes a member (as defined in IC 5-10.3-1-5) of the fund for all service credit that the member accrues in a covered position as an employee of the state. As added by P.L.22-2011, SEC.2. Amended by P.L.241-2015, SEC.29; P.L.209-2016, SEC.4.

Ind. Code § 5-10.3-12-20.3 Election during July 2016, by first time state employee who is fund member

Sec. 20.3. (a) This section applies to an individual who: (1) is an employee of the state on July 1, 2016; (2) became for the first time, after January 1, 2013, a full-time employee of the state in a position that is eligible for membership in the fund under IC 5-10.3-7; and (3) is a member (as defined in IC 5-10.3-1-5) of the fund. (b) An individual to whom this section applies may elect to become a member of the plan. 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, not later than July 30, 2016; and (3) is irrevocable. (c) If an individual makes the election described in subsection (b), the following apply: (1) The individual's service from the date, after January 1, 2013, that the individual first became a full-time employee of the state until the date immediately preceding the date of the individual's election under subsection (b) is considered participation in the plan for purposes of vesting in the employer contribution subaccount under section 25 of this chapter, and the individual waives service credit in the fund for the service. (2) The amount credited to the individual's annuity savings account in the fund on the date of the individual's election under subsection (b) is transferred to the individual's member contribution subaccount. (3) The amounts paid to the fund by the state as employer normal cost contributions for the individual from the date, after January 1, 2013, that the individual first became a full-time employee of the state until the date immediately preceding the date of the individual's election under subsection (b) are transferred to the individual's employer contribution subaccount. As added by P.L.193-2016, SEC.15.

Ind. Code § 5-10.3-12-20.5 Election by employee of political subdivision to become plan member; failure to make election

Sec. 20.5. (a) This section applies to an individual described in section 1(a)(3) of this chapter who is otherwise eligible to become a member of the plan. (b) An individual described in subsection (a) may elect to become a member of the plan on the date the individual begins the individual's employment in a covered position with a political subdivision that participates in the plan. The election applies to all service credit that the member accrues in a covered position as an employee of the political subdivision while the political subdivision participates in the plan. (c) 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. (d) Except as provided in section 32(b) of this chapter, an individual described in subsection (a) who does not elect to become a member of the plan becomes a member (as defined in IC 5-10.3-1-5) of the fund for all service credit that the member accrues in a covered position as an employee of the political subdivision while the political subdivision participates in the fund. As added by P.L.241-2015, SEC.30. Amended by P.L.209-2016, SEC.5.

Ind. Code § 5-10.3-12-21 Plan; member accounts; rollover accounts

Sec. 21. (a) The plan consists of the following: (1) Each member's contributions to the plan under section 23 of this chapter. (2) Contributions made by an employer to the plan on behalf of each member under section 24 or 24.5 of this chapter. (3) Rollovers to the plan by a member under section 29 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 23 of this chapter; and (B) the net earnings on the contributions described in clause (A) as determined under section 22 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 24 or 24.5 of this chapter; and (B) the earnings on the contributions described in clause (A) as determined under section 22 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 29 of this chapter, the plan shall establish a rollover account as a separate subaccount within the member's account. As added by P.L.22-2011, SEC.2. Amended by P.L.6-2012, SEC.30; P.L.35-2012, SEC.84; P.L.241-2015, SEC.31; P.L.209-2016, SEC.6; P.L.27-2019, SEC.7.

Ind. Code § 5-10.3-12-22 Alternative investment programs; stable value fund program; requirements and rules; administrative fees

Sec. 22. (a) Subject to the board obtaining the approval of the Internal Revenue Service as described in section 18(b) of this chapter, the board shall establish: (1) a stable value fund as the regular investment program 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.22-2011, SEC.2. Amended by P.L.6-2012, SEC.31; P.L.193-2016, SEC.16; P.L.86-2018, SEC.17; P.L.27-2019, SEC.8.

Ind. Code § 5-10.3-12-22.5 Self-directed brokerage account offering cryptocurrency investment option within the public employees' defined contribution plan

Sec. 22.5. (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.7.

Ind. Code § 5-10.3-12-23 Member required contributions; additional contributions; crediting; employer pick-up and payment

Sec. 23. (a) This section does not apply to a member of the plan described in section 1(a)(7) of this chapter with respect to the member's service with a volunteer fire department. (b) Each member's contribution to the plan is equal to three percent (3%) of the member's compensation. (c) For a member who is an employee of the state, the state shall pay the member's contribution on behalf of the member each year. (d) For a member who is an employee of a political subdivision, the political subdivision may pay all or part of the member's contribution on behalf of the member. (e) 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 (b). IC 5-10.2-3-2(c) and IC 5-10.2-3-2(d) govern additional contributions made under this subsection. (f) Member contributions will be credited to the member's account as specified in IC 5-10.2-3. (g) Although designated as employee contributions, the contributions made under subsection (c) are picked up and paid by the state as the employer in lieu of the contributions being paid by the employee in accordance with Section 414(h)(2) of the Internal Revenue Code. (h) Although designated as employee contributions, the contributions made under subsection (d) by a political subdivision may 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. (i) 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.22-2011, SEC.2. Amended by P.L.5-2014, SEC.1; P.L.241-2015, SEC.32; P.L.96-2020, SEC.5.

Ind. Code § 5-10.3-12-24 State employer contribution; contribution rate determination; minimum rate; amounts credited; electronic submission of contributions

Sec. 24. (a) The state shall make employer contributions to the plan based on the rate determined under this section. (b) The state's contribution rate for the plan is 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 not be greater than the normal cost of the fund. Any amount not credited to the member's account shall be applied to the unfunded accrued liability of the fund as determined under IC 5-10.2-2-11(a)(3) and IC 5-10.2-2-11(a)(4). (c) The state's minimum contribution under this section is equal to three percent (3%) of the compensation of all members of the plan who are employees of the state. (d) The state shall submit the employer contributions determined under this section as provided in IC 5-10.2-2-12.5. As added by P.L.22-2011, SEC.2. Amended by P.L.241-2015, SEC.33.

Ind. Code § 5-10.3-12-24.5 Political subdivision employer contribution; contribution rate determination; amounts credited; electronic submission of contributions

Sec. 24.5. (a) This section does not apply to a participating political subdivision's contributions for an individual described in section 1(a)(7) of this chapter with respect to the individual's service with a volunteer fire department. (b) A participating political subdivision shall make employer contributions to the plan based on the rate determined under this section. (c) A participating political subdivision's contribution rate for the plan is equal to the sum of: (1) the contribution rate determined by the participating political subdivision under IC 5-10.3-6-1(c); and (2) the sum, for each member employed by the participating political subdivision, of: (A) the member's additional contribution to the plan under section 23(e) of this chapter; multiplied by (B) the participating political subdivision's matching rate determined under IC 5-10.3-6-1(d). (d) For each employee of a participating political subdivision, the amount credited to the member's account is the part of the employer's contribution determined under subsection (c) that is attributable to the member's compensation and the member's additional contributions. (e) A participating political subdivision shall submit the employer contributions determined under this section as provided in IC 5-10.2-2-12.5. As added by P.L.241-2015, SEC.34. Amended by P.L.96-2020, SEC.6.

Ind. Code § 5-10.3-12-24.7 Political subdivision contributions; members of a volunteer fire department

Sec. 24.7. (a) This section applies to a participating political subdivision's contributions for an individual described in section 1(a)(7) of this chapter with respect to the individual's service with a volunteer fire department. (b) The governing body of a participating political subdivision shall determine the participating political subdivision's contribution to the plan for individuals described in section 1(a)(7) of this chapter with respect to the individual's service with the volunteer fire department in accordance with IC 5-10.3-6-1.1. (c) For each individual described in section 1(a)(7) of this chapter for whom the participating political subdivision makes a contribution under this section, the amount credited to the member's account is the entire amount of the contribution that is made on behalf of the individual. No part of a contribution made on behalf of the individual under this section may be paid into the fund. (d) A participating political subdivision shall submit the employer contributions determined under this section as provided in IC 5-10.2-2-12.5. As added by P.L.96-2020, SEC.7.

Ind. Code § 5-10.3-12-25 Member contributions belong to member; vesting schedule for employer contributions; forfeiture of amounts not vested

Sec. 25. (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 any 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 the member's employer before the member is fully vested in the employer contribution subaccount, the amount in the employer contribution subaccount that is not vested is forfeited as of the date the member separates from service. (f) Amounts forfeited under subsection (e) must be used as determined by the board. (g) 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.22-2011, SEC.2. Amended by P.L.6-2012, SEC.32; P.L.241-2015, SEC.35; P.L.104-2026, SEC.15.

Ind. Code § 5-10.3-12-26 Member accounts; withdrawals; forms of payment

Sec. 26. (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) The 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.22-2011, SEC.2. Amended by P.L.6-2012, SEC.33; P.L.66-2013, SEC.2; P.L.27-2019, SEC.9; P.L.51-2020, SEC.5.

Ind. Code § 5-10.3-12-27 Member accounts; beneficiary or survivor withdrawals; forms of payment

Sec. 27. (a) If a member dies: (1) while in service in a position covered by the plan but not in the line of duty; 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 shall be valued as provided in IC 5-10.2-2-3 and IC 5-10.2-2-4 (expired). 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 beneficiary or survivor attains 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. (d) If a member dies in the line of duty while in service in a covered position, the designated beneficiary or beneficiaries or the surviving spouse or dependents, as applicable, are entitled to payment of the member's account as provided in this section. In addition, if the member was not fully vested in the employer contribution subaccount, the account is deemed to be fully vested for purposes of withdrawal under this section. As added by P.L.22-2011, SEC.2. Amended by P.L.86-2018, SEC.18.

Ind. Code § 5-10.3-12-28 Plan exempt from legal process; assignment of payments

Sec. 28. (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.22-2011, SEC.2.

Ind. Code § 5-10.3-12-29 Rollover contributions; rollover accounts

Sec. 29. (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 shall be 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 22 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 must 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.22-2011, SEC.2. Amended by P.L.179-2018, SEC.10; P.L.27-2019, SEC.10.

Ind. Code § 5-10.3-12-30 Member accounts; disability withdrawals; forms of payment

Sec. 30. (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.22-2011, SEC.2. Amended by P.L.6-2012, SEC.34; P.L.27-2019, SEC.11.

Ind. Code § 5-10.3-12-31 Effect of reemployment on plan participation

Sec. 31. (a) If a member of the plan separates from employment with the member's employer and later begins employment with the same or a different employer in a position covered by the plan: (1) the member resumes the member's participation 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. Any amounts forfeited by the member under section 25(e) of this chapter may not be restored to the member's account. (b) An individual who returns to state employment having had an opportunity to make an election under section 20 of this chapter during an earlier period of state employment is not entitled to a second opportunity to make an election under section 20 of this chapter. (c) An individual described in section 1(a)(3) of this chapter who returns to employment with a participating political subdivision having had an opportunity to make an election under section 20.5 of this chapter during an earlier period of employment with the participating political subdivision is not entitled to a second opportunity to make an election under section 20.5 of this chapter with respect to that employer. As added by P.L.22-2011, SEC.2. Amended by P.L.241-2015, SEC.36; P.L.209-2016, SEC.7; P.L.85-2017, SEC.9.

Ind. Code § 5-10.3-12-32 Election by state or participating political subdivision to allow plan participation by retired reemployed fund members

Sec. 32. (a) Notwithstanding section 20 and section 31(b) of this chapter, the state may elect to allow an individual who meets the following conditions to begin or resume membership in the plan for a period of reemployment with the state on the later of the date the board receives notice that the state has made an election under this subsection or the date on which the individual's period of reemployment begins: (1) The individual is a retired member (as defined in IC 5-10.3-1-5) of the fund. (2) The individual is prohibited from making contributions to the fund under IC 5-10.2-4-8(e) during a period of reemployment that begins more than thirty (30) days after the member retired. (3) On or after the date the board receives notice that the state has made an election under this subsection, the individual begins, or is engaged in, a period of reemployment with the state in a position that would otherwise be covered by the fund. An election by the state under this subsection must be made as provided under IC 5-10.2-2-23 and is effective on the date that notice of the election is filed with the board. (b) Notwithstanding section 20.5 and section 31(c) of this chapter, a participating political subdivision may adopt an ordinance or resolution allowing an individual who meets the following conditions to begin or resume membership in the plan for a period of reemployment with the participating political subdivision on the later of the date the ordinance or resolution adopted by the participating political subdivision is filed with the board or the date on which the individual's period of reemployment begins: (1) The individual is a retired member (as defined in IC 5-10.3-1-5) of the fund. (2) The individual is prohibited from making contributions to the fund under IC 5-10.2-4-8(e) during a period of reemployment that begins more than thirty (30) days after the member retired. (3) On or after the date a participating political subdivision files an ordinance or resolution adopted under this subsection, the individual begins, or is engaged in, a period of reemployment with a participating political subdivision as a full-time employee in a position that would otherwise be covered by the fund. An election by a participating political subdivision under this subsection is effective on the date the ordinance or resolution adopted by a participating political subdivision is filed with the board. As added by P.L.209-2016, SEC.8.

Ind. Code § 5-10.3-12-33 Second chance election

Sec. 33. (a) This section applies notwithstanding sections 20, 20.3, 20.5, and 31 of this chapter. (b) An employer that participates in the fund may allow a member who is fully vested in the employer contribution subaccount under section 25(b) of this chapter to 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 becomes a member of the fund on the date described in IC 5-10.3-7-1(h). (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.16.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026

Starting a business in Indiana? Indiana LLC guide: costs and requirements