CHAPTER 4. FUNDING OF RETIREMENT OR SEVERANCE PLAN
IC 20-42-4
Chapter 4. Funding of Retirement or Severance Plan
IC 20-42-4-1
Application
Sec. 1. This chapter applies to a school corporation that:
(1) after June 30, 2001, establishes a retirement or severance
plan that will require the school corporation to pay
postretirement or severance benefits to employees of the school
corporation; or
(2) includes in a collective bargaining agreement or other
contract entered into after June 30, 2001, a provision to
increase:
(A) the benefit; or
(B) the unfunded liability;
under a retirement or severance provision that will require the
school corporation to pay postretirement or severance benefits
to employees of the school corporation.
As added by P.L.2-2006, SEC.165.
IC 20-42-4-2
Actuarial funding requirement; separate accounting
Sec. 2. (a) A school corporation must fund on an actuarially sound
basis the postretirement or severance benefits that will be paid to
employees under a plan, an agreement, or a contract described in
section 1(1) of this chapter or an increase described in section 1(2)
of this chapter.
(b) A school corporation must place the assets used to fund on an
actuarially sound basis the postretirement or severance benefits in a
separate fund or account, and the school corporation may not
commingle the assets in the separate fund or account with any other
assets of the school corporation.
As added by P.L.2-2006, SEC.165.