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IN HB1581
Bill
Status
1/20/2015
Primary Sponsor
David Niezgodski
Click for details
AI Summary
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Entities with discretionary PERF participation that restrict new employee membership must contribute to the fund to fully cover vested benefits and future liabilities for current and former employees.
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Discretionary entities (non-political subdivisions) seeking to withdraw from PERF must provide 90-day notice if dissolving or selling assets, or 2-year notice otherwise, and fund all future benefits before withdrawal is effective.
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Political subdivisions withdrawing from PERF must provide notice and allow 90 days (if selling assets/dissolving) or 2 years (for other withdrawals) before separation, with full liability for employee benefits.
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Freezing new employee participation in PERF requires entities to contribute amounts determined by the PERF board to fully fund service attributable to the freezing entity for both retired and former members.
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State universities (Ball State, Indiana University, Indiana State, Purdue, Southern Indiana, Vincennes) and Ivy Tech Community College are now subject to the same PERF withdrawal and freeze liability requirements.
Legislative Description
Unfunded pension liabilities. Provides that if an entity, including a political subdivision, participates in the public employees' retirement fund (PERF) at the discretion of the entity and then takes an action that would restrict employee membership in PERF, the entity becomes liable for the future benefits payable to the entity's current and former employees. Provides that if an entity (other than a political subdivision) that has discretion to participate in PERF seeks to withdraw from PERF, the entity becomes liable for the future benefits payable to the entity's current and former employees. Eliminates an obsolete provision that is no longer
Last Action
First Reading: referred to Committee on Employment, Labor and Pensions
1/20/2015