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IN HB1463
Bill
Status
3/29/2017
Primary Sponsor
Martin Carbaugh
Click for details
AI Summary
HB 1463 - Teachers' Defined Contribution Plan
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Establishes a new teachers' defined contribution plan as an option within the Indiana state teachers' retirement fund, effective July 1, 2017.
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New teachers at school corporations can elect to join the defined contribution plan instead of the traditional fund; those who do not elect membership automatically join the fund.
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Members contribute 3% of compensation (paid by employer) with option to contribute up to 10% additional; employer contribution rate matches the fund rate with amounts credited up to normal cost of fund.
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Employer contributions vest at 20% per year with full vesting after 5 years; members are fully vested in their own contributions and earnings at all times.
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Members can withdraw vested amounts after terminating service with a 30-day waiting period, choosing lump sum, direct rollover, or monthly annuity (if age 62+ with 5 years participation).
Legislative Description
Teachers' defined contribution plan. 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 Internal Revenue Service
Last Action
Senator Ruckelshaus added as advisor
4/11/2017