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IN SB0265
Bill
AI Summary
Senate Enrolled Act No. 265 - Service Credit Purchase Summary
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Allows members of multiple Indiana public retirement funds to purchase and claim prior service credit from other covered retirement systems, effective July 1, 2015.
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Enables members to purchase out-of-state service credit, prior service in police/firefighter pension funds, quasi-governmental entity service, military service, private teaching service, and substitute teaching service by making actuarially-determined contributions.
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Requires participants to have at least 1 year of creditable service in their current fund and 10 years of service before receiving benefits based on purchased credits, with contributions calculated based on member's current salary and age.
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Permits members to reduce required contributions through trustee-to-trustee transfers from other public retirement funds, and allows employers to pay contributions on behalf of members with actuary-determined amortization.
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Permits refunds of purchased service contributions plus accumulated interest for members who terminate employment early or receive benefits for the same service from another tax-supported retirement plan (excluding Social Security).
Legislative Description
Purchase of service credit. Permits a member of the public employees' retirement fund (PERF) to purchase at full actuarial cost the member's prior service in the 1977 police officers' and firefighters' pension and disability fund (1977 fund). Requires the board of trustees of the Indiana public retirement system to transfer from the 1977 fund to PERF the member's contributions and the present value of the unreduced benefit payable upon retirement that is attributable to the member. Requires the transferred amounts to be credited against the contributions required to purchase the member's prior 1977 fund service. Permits the member's employer to
Last Action
Public Law 8
4/15/2015