CHAPTER 4. LEGISLATORS' DEFINED BENEFIT PLAN
IC 2-3.5-4
Chapter 4. Legislators' Defined Benefit Plan
IC 2-3.5-4-1
Application
Sec. 1. This chapter applies to each member of the generalassembly who:
(1) is serving on April 30, 1989; and
(2) files an election under IC 2-3.5-3-1(b).
As added by P.L.6-1989, SEC.1.
IC 2-3.5-4-2
Members 65 and older; monthly retirement benefit; conditions
Sec. 2. A participant who is at least sixty-five (65) years of age isentitled for the remainder of the participant's life to a monthlyretirement benefit computed under section 3 of this chapter,beginning on the date specified by the participant in a writtenapplication, if all of the following conditions are met on the date onwhich the benefit begins:
(1) The participant's service as a member of the generalassembly is terminated.
(2) The participant:
(A) has at least ten (10) years of service as a member of thegeneral assembly; or
(B) meets the requirements for disability benefits undersection 5 of this chapter.
(3) The participant is not receiving and is not entitled to receivea salary from the state.
(4) The participant is not receiving and has not previouslyreceived a reduced monthly retirement benefit under section 4of this chapter.
As added by P.L.6-1989, SEC.1. Amended by P.L.13-2001, SEC.1.
IC 2-3.5-4-3
Monthly retirement benefit; computation
Sec. 3. The monthly retirement benefit payable for life to aparticipant who is eligible under section 2 of this chapter is the lesserof:
(1) forty dollars ($40) multiplied by the total years of servicecompleted by the participant as a member of the generalassembly before November 8, 1989; or
(2) the highest consecutive three (3) year average annual salaryof the participant attributable to the participant's service as alegislator, as reported on the participant's W-2 federal incometax withholding statement and determined without regard to anysalary reduction agreement established under Section 125 of theInternal Revenue Code, at the date the participant's service as amember of the general assembly is terminated, divided bytwelve (12).
As added by P.L.6-1989, SEC.1. Amended by P.L.5-1992, SEC.2;
P.L.4-1992, SEC.3.
IC 2-3.5-4-4
Participants 55 and older; reduced monthly retirement benefit;computation
Sec. 4. (a) A participant who is at least fifty-five (55) years of ageis entitled, for the remainder of the participant's life, to a reducedmonthly retirement benefit computed under subsection (b), beginningon the date specified by the participant in a written application, if allof the following conditions are met on the date on which the benefitbegins:
(1) The participant's service as a member of the generalassembly is terminated.
(2) The participant has at least ten (10) years of service as amember of the general assembly.
(3) The participant is not receiving and is not entitled to receivea salary from the state.
(b) The reduced monthly benefit payable for life to a participanteligible under this section is the benefit calculated under section 3 ofthis chapter, multiplied by a percentage determined as follows:
STEP ONE: From seven hundred eighty (780) months, whichequals sixty-five (65) years, subtract the age of the participantat the participant's retirement date expressed in whole months(retirement age in months) and obtain a remainder (X).
STEP TWO:
(A) If the remainder (X) is less than or equal to sixty (60),multiply the remainder (X) times one-tenth percent (0.1%)and obtain a product (Y).
(B) If the remainder (X) is greater than sixty (60), multiplyfive-twelfths percent (5/12%) times the difference obtainedby subtracting sixty (60) from the remainder (X) and obtaina product. Add to this six percent (6%) and obtain a sum(Y).
STEP THREE: From one hundred percent (100%) subtract theappropriate (Y). This equals the percentage used to determinethe reduced monthly benefit.
As added by P.L.6-1989, SEC.1. Amended by P.L.13-2001, SEC.2.
IC 2-3.5-4-4.1
Monthly retirement benefit; conditions
Sec. 4.1. (a) This section applies to a participant who:
(1) is at least fifty-five (55) years of age and whose years ofservice as a member of the general assembly plus years of ageare equal to at least eighty-five (85); or
(2) is at least sixty (60) years of age and has at least fifteen (15)years of service as a member of the general assembly.
(b) A participant who is described in subsection (a) is entitled, forthe remainder of the participant's life, to a monthly retirement benefitcalculated under section 3 of this chapter, if all of the followingconditions are met on the date on which the benefit begins: (1) The participant's service as a member of the generalassembly is terminated.
(2) The participant has at least ten (10) years of service as amember of the general assembly.
(3) The participant is not receiving and is not entitled to receivea salary from the state.
(c) A participant who receives a benefit under this section is notentitled to a benefit under section 4 of this chapter.
As added by P.L.10-1995, SEC.1. Amended by P.L.13-2001, SEC.3.
IC 2-3.5-4-5
Disabled participant; benefits; transcripts, records, and othermaterials
Sec. 5. (a) Except as provided in subsection (b), a participant whobecomes disabled while in active service as a member of the generalassembly may retire for the duration of the disability, beginning onthe date specified by the participant in a written application, if:
(1) the participant has at least five (5) years of service;
(2) the participant has qualified for Social Security disabilitybenefits and has furnished proof of the Social Securityqualification to the board; and
(3) at least one (1) time each year until the participant becomessixty-five (65) years of age, a representative of the boardverifies the continued disability.
For the purposes of this section, a participant who has qualified fordisability benefits under the federal civil service system is consideredto have met the requirement of subdivision (2) if the participantfurnishes proof of the qualification to the board.
(b) Benefits may not be provided under this chapter for adisability:
(1) resulting from an intentionally self-inflicted injury ofattempted suicide while sane or insane; or
(2) resulting from the participant's commission or attemptedcommission of a felony.
(c) The disability benefit provided under this section is equal tothe benefit computed under section 3 of this chapter.
(d) To the extent required by the Americans with Disabilities Act,the transcripts, records, and other material generated to prove that anindividual is qualified for disability benefits under this section shallbe:
(1) kept in separate medical files for each member; and
(2) treated as confidential medical records.
As added by P.L.6-1989, SEC.1. Amended by P.L.4-1992, SEC.4.
IC 2-3.5-4-6
Surviving spouse; benefits
Sec. 6. (a) The surviving spouse of a participant who:
(1) dies; and
(2) on the date of death:
(A) was receiving benefits under this chapter; (B) had completed at least ten (10) years of service as amember of the general assembly; or
(C) had a permanent disability and was receiving benefitsunder section 5 of this chapter;
is entitled, regardless of the participant's age, to the benefitprescribed by subsection (b).
(b) The surviving spouse is entitled to a benefit for life equal tofifty percent (50%) of the amount of retirement benefit that:
(1) the participant was receiving at the time of death; or
(2) the participant would have been entitled to receive atfifty-five (55) years of age, or at the date of death, whichever islater.
As added by P.L.6-1989, SEC.1. Amended by P.L.99-2007, SEC.2.
IC 2-3.5-4-7
Dependent children; benefits
Sec. 7. (a) If a participant's spouse would have qualified for abenefit under section 6 of this chapter, but the spouse does notsurvive the participant, the dependent child of the participant is, uponthe death of the participant, entitled to the same benefit theparticipant's spouse would have received under section 6 of thischapter.
(b) If a surviving spouse of a decedent participant dies whilereceiving benefits under section 6 of this chapter, and a dependentchild of both the surviving spouse and the decedent participantsurvives them, that dependent child is entitled to receive the samebenefit the spouse was receiving under section 6 of this chapter.
(c) If there is more than one (1) dependent child qualified for thebenefit under subsection (a) or (b), the dependent children areentitled to share the monthly benefit equally.
(d) Each dependent child is entitled to receive the child's shareuntil the child becomes eighteen (18) years of age or during theentire period of the child's physical or mental disability (usingdisability guidelines established by the Social SecurityAdministration), whichever period is longer.
As added by P.L.6-1989, SEC.1.
IC 2-3.5-4-8
Manner of payment; application for benefits; termination
Sec. 8. (a) All benefits payable under this chapter shall be paid inequal monthly installments. The date on which payments begin mustbe the first day of a month and must be after the date on which theparticipant's service as a member of the general assembly isterminated.
(b) Retirement dates specified by a participant under sections 2,4, and 5 of this chapter may not be more than six (6) months beforethe date the retirement application is received by the board.
(c) All applications for benefits under this chapter must be madeon forms provided by the board.
(d) If a participant who is receiving retirement benefits under this
chapter again becomes a member of the general assembly, theparticipant's retirement benefit shall stop. Upon the participant'ssubsequent retirement or death, the participant's benefits shall berecalculated on an actuarial basis, taking into account:
(1) benefit payments previously received; and
(2) the date of subsequent termination of employment as amember of the general assembly.
As added by P.L.6-1989, SEC.1.
IC 2-3.5-4-9
Actuarial valuation; annual determinations
Sec. 9. Based on an actuarial valuation, the board shall annuallydetermine:
(1) the normal contribution;
(2) the unfunded accrued liability of the defined benefit fund,which is the amount by which the defined benefit plan's totalaccrued liability exceeds the fund's total assets; and
(3) the payments necessary to amortize the unfunded accruedliability over thirty (30) years.
As added by P.L.6-1989, SEC.1.
IC 2-3.5-4-10
Biennial appropriations
Sec. 10. (a) For purposes of this chapter, there is appropriated foreach biennium the following sums of money:
(1) From the state general fund, the amount required toactuarially fund participants' retirement benefits under thischapter, as determined by the board on the recommendation ofan actuary.
(2) From the defined benefit fund, the amount required foradministration of this chapter.
(b) The biennial appropriation provided in this section shall becredited to the defined benefit fund annually in equal installments inthe month of July of each year of the biennium.
As added by P.L.6-1989, SEC.1.
IC 2-3.5-4-11
Exemptions; criminal taking of state property
Sec. 11. All benefits and assets in the defined benefit fund areexempt from levy, sale, garnishment, attachment, or other legalprocess. However, a participant's benefits may be transferred toreimburse the state for loss resulting from the participant's criminaltaking of state property if the board receives adequate proof of theloss. The loss must be proven by conviction of a felony ormisdemeanor.
As added by P.L.6-1989, SEC.1.
IC 2-3.5-4-12
Assignment of benefits
Sec. 12. A participant or beneficiary may not assign any payment
under this chapter except for:
(1) premiums on a life, hospitalization, surgical, or medicalgroup insurance plan maintained in whole or in part by a stateagency; and
(2) dues to an association that proves to the board's satisfactionthat the association has as members at least twenty percent(20%) of the retired participants in the legislators' definedbenefit plan.
As added by P.L.6-1989, SEC.1.
IC 2-3.5-4-13
Benefit increases payable after June 30, 1992; calculation
Sec. 13. Subject to IC 2-3.5-3-3(7), the monthly benefit payableunder this chapter after June 30, 1992, to participants, survivors, andbeneficiaries shall be increased by the same percentages and underthe same conditions as monthly benefits are increased underIC 5-10.2-5 for members of the public employees' retirement fundand their survivors and beneficiaries.
As added by P.L.6-1992, SEC.1.