SB 397 Summary

• Establishes the Indiana public retirement system effective May 1, 2010, to consolidate administration of ten separate public pension and retirement funds including PERF, TRF, judges', prosecutors', police/firefighters', and legislators' retirement funds.

• Creates an 11-member board of trustees consisting of 10 governors-appointed members and the director of budget agency (ex officio), with trustees required to complete 12 hours of annual trustee education in fiduciary duties, ethics, governance, plan design, investments, and actuarial principles.

• Appoints a director of the system selected by and serving at the pleasure of the board, who employs managers for PERF and TRF and may employ managers for other public retirement funds.

• Maintains each retirement fund as a separate fund managed by the unified board under applicable retirement law, preserving existing benefit structures and fund independence while consolidating administrative operations.

• Repeals provisions establishing separate boards for PERF and TRF, transferring all powers, duties, property, records, and employees to the new Indiana public retirement system effective May 1, 2010.