IN SB0551

Establishes a mandatory defined contribution retirement plan for individuals who become full-time state employees, political subdivision employees, or school corporation employees after June 30, 2011

Requires employees to contribute 3% of their compensation annually as a condition of employment, with employers required to contribute at least 3% of the employee's compensation

Existing members of the Public Employees' Retirement Fund (PERF) or Indiana State Teachers' Retirement Fund (TRF) as of July 1, 2011 are exempt and remain in their current defined benefit plans

Participants may withdraw funds at the earliest date permitted by IRS rules, with payment options including lump sum, direct rollover to another eligible retirement plan, or monthly annuity purchased by the board

Investment options must include a stable value fund, and the board of trustees will administer the plan using existing PERF and TRF annuity savings account infrastructure or as a separate Section 401(a) fund