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IN HB1445
Bill
Status
1/15/2019
Primary Sponsor
Timothy Brown
Click for details
AI Summary
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New state employees and school corporation employees hired after June 30, 2019, will be automatically enrolled in defined contribution plans instead of the traditional pension funds (PERF or TRF), though they may elect to join the pension funds instead
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Normal retirement eligibility requirements increase for PERF and TRF members who first begin creditable service after June 30, 2019: age 65 requires 20 years of service (up from 10), age 60 requires 25 years (up from 15), and the "Rule of 85" becomes "Rule of 95" for those at least age 55
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Current employees and those hired before July 1, 2019, retain existing retirement eligibility requirements and pension fund membership
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Election to join a pension fund instead of a defined contribution plan must be made in writing, filed with the board, and is irrevocable
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Employees who separate and later return to employment retain their original plan membership and are not entitled to make a new election
Legislative Description
Public employee pensions. Provides that a member of the public employees' retirement fund (PERF) or the Indiana state teachers' retirement fund (TRF) who first performs creditable service after June 30, 2019, is eligible for normal retirement if: (1) the member is at least 65 years of age and has at least 20 years of creditable service (current law requires at least 10 years of creditable service); (2) the member is at least 60 years of age and has at least 25 years of creditable service (current law requires at least 15 years of creditable service); or (3) the member is at least 55 years of age and the member's age plus years of creditable service is at least 95 (current law requires the member's age plus years of creditable service be at least 85). Provides that after June 30, 2019, an individual who becomes a full-time employee of the state for the first time becomes a member of the public employees' defined contribution plan (plan) unless the individual elects to become a member of PERF. (Under current law, an eligible employee becomes a member of PERF unless the employee elects to become a member of the plan.) Provides that after June 30, 2019, an individual who begins employment for the first time in a covered position with a school corporation and is not already a member of TRF becomes a member of the teachers' defined contribution plan unless the individual makes an election to become a member of TRF. (Under current law, an individual who begins employment in a covered position becomes a member of TRF unless the individual elects to become a member of the teachers' defined contribution plan.)
Last Action
First reading: referred to Committee on Employment, Labor and Pensions
1/15/2019