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IN HB1004

Bill

Status

Engrossed

2/3/2016

Primary Sponsor

Robert Behning

Click for details

Origin

House of Representatives

2016 Regular Session

AI Summary

  • Establishes a new teachers' defined contribution plan as an optional alternative to the Indiana state teachers' retirement fund, effective July 1, 2016, allowing new school employees to elect membership in the defined contribution plan.

  • Members of the defined contribution plan contribute 3% of compensation with employers contributing an amount equal to their contribution rate for the traditional fund, though amounts credited to members' accounts cannot exceed the normal cost of the fund.

  • Employees vesting in employer contributions on a 20% per year schedule with full vesting after 5 years, with forfeited unvested amounts applied to the fund's unfunded accrued liability.

  • Allows school corporations to hire teachers with a bachelor's degree (3.0+ GPA), passing content area licensure assessments, and valid out-of-state teaching licenses, limited to 10% of the corporation's teachers.

  • Permits school corporations to provide supplemental pay for teachers in difficult-to-fill positions, with written explanation required to be filed in personnel file and shared with exclusive representative and governing body.

Legislative Description

School pension plans and other education matters. Establishes the teachers' defined contribution plan (plan) as an account within the Indiana state teachers' retirement fund (fund). Provides that an individual who begins employment with a school corporation in a covered position that would otherwise be eligible for membership in the fund may elect to become a member of the plan. Provides that an individual who does not elect to become a member of the plan becomes a member of the fund. Requires the board of trustees of the Indiana public retirement system (board) to establish, subject to any approval from the

Last Action

Amendment #3 (Tallian) failed; Roll Call 188: yeas 13, nays 37

2/22/2016

Committee Referrals

Pensions and Labor2/8/2016
Ways and Means1/25/2016
Education1/13/2016

Full Bill Text

No bill text available