CHAPTER 6. JUDGES' RETIREMENT SYSTEM
IC 33-38-6
Chapter 6. Judges' Retirement System
IC 33-38-6-1
"Americans with Disabilities Act" defined
Sec. 1. As used in this chapter, "Americans with Disabilities Act"
refers to the Americans with Disabilities Act (42 U.S.C. 12101 et
seq.) and any amendments and regulations related to the act.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-2
"Board" defined
Sec. 2. As used in this chapter, "board" refers to the board of
trustees of the public employees' retirement fund.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-3
"Employer" defined
Sec. 3. As used in this chapter, "employer" means the state of
Indiana.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-4
"Fiscal year" defined
Sec. 4. As used in this chapter, "fiscal year" means the period
beginning July 1, in any year, and ending June 30 of the succeeding
year.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-5
"Fund" defined
Sec. 5. As used in this chapter, "fund" refers to the Indiana judges'
retirement fund established by section 12 of this chapter.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-6
"Internal Revenue Code" defined
Sec. 6. As used in this chapter, "Internal Revenue Code":
(1) means the Internal Revenue Code of 1954, as in effect
September 1, 1974, if permitted with respect to governmental
plans; or
(2) to the extent not inconsistent with subdivision (1), has the
meaning set forth in IC 6-3-1-11.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-7
"Judge" defined
Sec. 7. As used in this chapter, "judge" means a person who
serves or has served as a regular judge or justice of one (1) or more
of the following courts:
(1) Supreme court.
(2) Court of appeals.
(3) Indiana tax court.
(4) Circuit court of a judicial circuit.
(5) Superior court of a county.
(6) Criminal court of a county having a separate criminal court.
(7) Probate court of a county having a separate probate court.
(8) Juvenile court of a county having a separate juvenile court.
(9) Municipal court of a county.
(10) County court of a county.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-8
"Judge pro tempore service" defined
Sec. 8. As used in this chapter, "judge pro tempore service" means
service in Indiana as a full-time judge pro tempore appointed under
Trial Rule 63(B) that:
(1) is not covered by IC 33-38-7 or IC 33-38-8; and
(2) is served by a person who has other service that is covered
by IC 33-38-7 or IC 33-38-8.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-9
"Participant" defined
Sec. 9. As used in this chapter, "participant" means a judge who
participates in the fund. After December 31, 2010, "participant"
means a judge or full-time magistrate who participates in the fund.
As added by P.L.98-2004, SEC.17. Amended by P.L.122-2008,
SEC.6.
IC 33-38-6-10
"Salary" defined
Sec. 10. As used in this chapter, "salary" means the total salary
paid to a participant by the state and by a county or counties,
determined without regard to any salary reduction agreement
established under Section 125 of the Internal Revenue Code.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-11
"Services" defined
Sec. 11. As used in this chapter, "services" means the period
beginning on the first day a person first becomes a judge or, after
December 31, 2010, a judge or full-time magistrate, and ending on
the date under consideration and includes all intervening
employment as a judge or, after December 31, 2010, a judge or
full-time magistrate.
As added by P.L.98-2004, SEC.17. Amended by P.L.122-2008,
SEC.7.
IC 33-38-6-12
Indiana judges' retirement fund
Sec. 12. The Indiana judges' retirement fund is established and
consists of:
(1) each participant's contribution to the fund;
(2) gifts, grants, devises, and bequests in money, property, or
other forms made to the fund;
(3) interest on investments or on deposits of the funds; and
(4) contributions or payments to the fund made in the manner
provided by the general assembly, including appropriations
from the state general fund as provided by this chapter.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-13
Qualification of fund under Internal Revenue Code
Sec. 13. The fund must satisfy the qualification requirements in
Section 401 of the Internal Revenue Code, as applicable to the fund.
In order to meet those requirements, the fund is subject to the
following provisions, notwithstanding any other provision of this
chapter IC 33-38-7, or IC 33-38-8:
(1) The board shall distribute the corpus and income of the fund
to participants and their beneficiaries in accordance with this
chapter, IC 33-38-7, and IC 33-38-8.
(2) A part of the corpus or income of the fund may not be used
or diverted to a purpose other than the exclusive benefit of the
participants and their beneficiaries.
(3) Forfeitures arising from severance of employment, death, or
for any other reason may not be applied to increase the benefits
a participant would otherwise receive under the fund.
(4) If the fund is terminated or if all contributions to the fund
are completely discontinued, the rights of each affected
participant to the benefits accrued at the date of the termination
or discontinuance, to the extent then funded, are nonforfeitable.
(5) All benefits paid from the fund shall be distributed in
accordance with the requirements of Section 401(a)(9) of the
Internal Revenue Code and the regulations under that section.
In order to meet those requirements, the fund is subject to the
following provisions:
(A) The life expectancy of a participant, the participant's
spouse, or the participant's beneficiary shall not be
recalculated after the initial determination, for purposes of
determining benefits.
(B) If a participant dies before the distribution of the
participant's benefits has begun, distributions to beneficiaries
must begin not later than December 31 of the calendar year
immediately following the calendar year in which the
participant died.
(6) The board may not:
(A) determine eligibility for benefits;
(B) compute rates of contribution; or
(C) compute benefits of participants or beneficiaries;
in a manner that discriminates in favor of participants who are
considered officers, supervisors, or highly compensated, as
prohibited under Section 401(a)(4) of the Internal Revenue
Code.
(7) The salary taken into account under this chapter, IC 33-38-7,
or IC 33-38-8 may not exceed the applicable amount under
Section 401(a)(17) of the Internal Revenue Code.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-14
Administration of fund
Sec. 14. The board shall administer the fund in a manner that is
consistent with the Americans with Disabilities Act, to the extent
required by the act.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-15
Law governing participation, contributions, withdrawals, and
benefits; Family and Medical Leave Act; Uniformed Services
Employment and Reemployment Act
Sec. 15. (a) Conditions for participation in the fund, contributions
to the fund, withdrawal from the fund, and eligibility for and
computation of benefits for participants and their survivors are
governed by IC 33-38-7 and IC 33-38-8.
(b) Notwithstanding any provision of this chapter, IC 33-38-7, or
IC 33-38-8, the fund must be administered in a manner consistent
with the Family and Medical Leave Act of 1993 (29 U.S.C. 2601 et
seq.). A participant on a leave of absence that qualifies for the
benefits and protections afforded by the Family and Medical Leave
Act is entitled to receive credit for vesting and eligibility purposes to
the extent required by the Family and Medical Leave Act but is not
entitled to receive credit for service for benefit purposes.
(c) Notwithstanding any provision of this chapter, IC 33-38-7, and
IC 33-38-8, a participant is entitled to service credit and benefits in
the amount and to the extent required by the Uniformed Services
Employment and Reemployment Rights Act (38 U.S.C. 4301 et seq.).
As added by P.L.98-2004, SEC.17.
IC 33-38-6-16
Referendum of judges concerning federal Social Security
agreement
Sec. 16. (a) The governor may conduct, or cause to be conducted,
a referendum for the judges who are covered by the provisions of the
judges' retirement fund to determine whether the judges covered by
the retirement fund shall be excluded from or included in the
agreement negotiated under the provisions of Section 218 of the
federal Social Security Act (as defined in IC 5-10.1-1-9). The
referendum must be conducted in full compliance with all the
requirements of Section 218(d) of the federal Social Security Act.
The governor shall designate the board as the agency to conduct and
supervise the referendum, and the expense of conducting the
referendum shall be paid from funds appropriated to the fund.
(b) If the majority of the judges who are eligible to vote in the
referendum described in subsection (a) vote in the negative, the
board may request that a subsequent referendum be conducted in the
same manner and with the same effect described in subsection (a).
However, a subsequent referendum may not be conducted within one
(1) year after the date of the prior referendum.
(c) If a majority of the judges who are eligible to vote in the
referendum described in subsection (a) vote in the affirmative, both
the:
(1) judges covered by the retirement fund; and
(2) judges who waived their right to be covered by the
provisions of the retirement fund;
shall be included in the agreement negotiated by the state with the
Secretary of the United States Department of Health and Human
Services in the same manner provided in IC 5-10.1-4 for the
inclusion of services covered by the retirement systems specified in
IC 5-10.1-4-1 in the agreement.
(d) Each judge whose services are covered by Social Security is
required to pay during the period of the judge's service the employee
contributions required by the agreement. The contributions shall
begin on the effective date of the judge's coverage and are subject to
the terms and conditions of IC 5-10.1.
(e) The auditor of state shall pay the employer contributions
required under the agreement wholly from funds appropriated to the
fund, and the contributions begin on the effective date of the
modification that adds the judges of the fund to the federal-state
agreement. The employer contributions shall be paid in the manner
provided in the agreement.
(f) The modification of the federal-state agreement to effectuate
the participation of the judges in the agreement must be effective for
services performed on a date fixed and determined by the board.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-17
Appropriation from state general fund
Sec. 17. (a) For purposes of this chapter, there is appropriated for
each biennium a sum of money, computed on an actuarially funded
basis, as follows:
(1) From the state general fund for participants' retirement
benefits, the amount determined by the board, on
recommendation of an actuary, which, when added to the part
of the fund held for benefits at the date of the appropriation, is
equal to the total liability of the fund for benefits to the end of
the biennium.
(2) From the earnings on the fund, for administration purposes,
the amount required during the biennium, as determined by the
board on the basis of experience. The amount required for
administration shall be paid out as the operating expenses of
other state departments are paid.
(b) The biennial appropriation provided in this section shall be
credited to the board annually in equal installments in July of each
year of the biennium.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-18
Use of appropriated funds
Sec. 18. The amount appropriated under section 17 of this chapter
for participants' retirement benefits shall be used for retirement
benefits under IC 33-38-7 and IC 33-38-8.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-19
Fund construed as a trust
Sec. 19. The fund shall be construed to be a trust, separate and
distinct from all other entities, maintained to secure payment of
benefits to the participants and their beneficiaries, as prescribed in
IC 33-38-7 and IC 33-38-8.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-20
Use of fund for administrative costs
Sec. 20. In addition to the purpose set forth in section 19 of this
chapter, the fund may be used for the payment of the costs of
administering this chapter.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-21
Warrants to participants
Sec. 21. (a) When drawing a salary warrant for a participant, the
auditor of state and the county auditor shall deduct from the amount
of the warrant the participant's contribution, if any, to the fund in the
amount certified in the vouchers or an order issued by the director.
(b) The auditor of state and the county auditor shall draw a
warrant to the fund for the total contributions withheld from the
participants each month. The warrant drawn to the fund together with
a list of participants and the amount withheld from each participant
shall be transmitted immediately to the director.
(c) The auditor of state shall draw warrants upon the treasurer of
state, payable from the fund, for purposes provided for in this
chapter, upon the presentation of vouchers or an order signed by the
director of the board in accordance with resolutions of the board.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-22
Salary warrants indicating deductions of contributions
Sec. 22. The auditor of state and the county auditor in the
preparation of salary warrants to participants shall indicate on the
payroll voucher the following information, in addition to other
things:
(1) The amount of the participant's contribution to the fund
deducted from the salary of the participant.
(2) The net amount payable to the participant, after the
deduction of the participant's contribution.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-23
Administration of fund; confidentiality of fund records
Sec. 23. (a) The board of trustees of the public employees'
retirement fund shall administer the fund, which may be commingled
with the public employees' retirement fund for investment purposes.
(b) The board shall do the following:
(1) Determine eligibility for and make payments of benefits
under IC 33-38-7 and IC 33-38-8.
(2) In accordance with the powers and duties granted it in
IC 5-10.3-3-7, IC 5-10.3-3-7.1, IC 5-10.3-3-8, and IC 5-10.3-5-3
through IC 5-10.3-5-6, administer the fund.
(3) Provide by rule for the implementation of this chapter and
IC 33-38-7 and IC 33-38-8.
(4) Authorize deposits.
(c) A determination by the board may be appealed under the
procedures in IC 4-21.5.
(d) The powers and duties of:
(1) the director and the actuary of the board;
(2) the attorney general; and
(3) the auditor of state;
with respect to the fund are those specified in IC 5-10.3-3 and
IC 5-10.3-4.
(e) The board may hire additional personnel, including hearing
officers, to assist it in the implementation of this chapter.
(f) Fund records of individual participants and participants'
information are confidential, except for the name and years of service
of a fund participant.
As added by P.L.98-2004, SEC.17. Amended by P.L.94-2004, SEC.6;
P.L.99-2010, SEC.9.
IC 33-38-6-24
Rollover to eligible retirement plan
Sec. 24. Notwithstanding any other provision of this chapter,
IC 33-38-7, or IC 33-38-8, to the extent required by Internal Revenue
Code Section 401(a)(31) of the Internal Revenue Code, as added by
the Unemployment Compensation Amendments of 1992 (P.L.
102-318), and any amendments and regulations related to Section
401(a)(31) of the Internal Revenue Code, the fund shall allow
participants and qualified beneficiaries to elect a direct rollover of
eligible distributions to another eligible retirement plan.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-25
Service credit; contributions for service as judge or full-time
magistrate
Sec. 25. (a) A judge or, after December 31, 2010, a judge or
full-time magistrate, is entitled to a month of service credit for
services performed in any fraction of a calendar month. However, a
judge or, after December 31, 2010, a judge or full-time magistrate,
is not entitled to more than one (1) month of credit for services
performed in a calendar month.
(b) Except as otherwise provided in this chapter, if a judge is
elected or appointed and serves one (1) or more terms or part of a
term, then retires from office but at a later period or periods is
appointed or elected and serves as judge, the judge shall pay into the
fund during all the periods served as judge, whether the periods are
served consecutively or not.
(c) Except as otherwise provided in this chapter, a judge is not
required to pay into the fund:
(1) at any time when the judge is not serving as judge; or
(2) during any period of service as a senior judge under
IC 33-23-3.
(d) Except as otherwise provided in this chapter, after December
31, 2010, a full-time magistrate:
(1) shall pay into the fund during all periods served as a
full-time magistrate, whether the periods are served
consecutively or not; and
(2) is not required to pay into the fund at any time when the
magistrate is not serving as a full-time magistrate.
As added by P.L.98-2004, SEC.17. Amended by P.L.122-2008,
SEC.8.
IC 33-38-6-26
Judge pro tempore service credit; conditions
Sec. 26. (a) A participant may purchase judge pro tempore service
credit if:
(1) the participant has at least one (1) year of service in the
fund;
(2) before the participant retires, the participant makes
contributions to the fund:
(A) that are equal to the product of:
(i) the participant's salary at the time the participant
actually makes a contribution for the service credit;
multiplied by
(ii) a percentage rate, as determined by the actuary of the
fund, that is based on the age of the participant at the time
the participant makes a contribution for service credit and
computed to result in a contribution amount that
approximates the actuarial present value of the benefit
attributable to the service credit purchased; multiplied by
(iii) the number of years of judge pro tempore service the
participant intends to purchase; and
(B) for any accrued interest, at a rate determined by the
actuary of the fund, for the period from the participant's
initial membership in the fund to the date payment is made
by the participant; and
(3) the fund receives verification from the applicable court that
the judge pro tempore service occurred.
(b) A participant may not receive service credit under this section
if the judge pro tempore service for which the participant requests
credit also qualifies the participant for a benefit in another retirement
system.
(c) A participant who:
(1) terminates service before satisfying the requirements for
eligibility to receive a retirement benefit from the fund; or
(2) receives a retirement benefit for the same service from
another retirement system, other than under the federal Social
Security Act;
may withdraw the participant's contributions made under this section
plus accumulated interest after submitting to the fund a properly
completed application for a refund.
(d) The following apply to the purchase of service credit under
this section:
(1) The board may allow a participant to make periodic
payments of the contributions required for the purchase of the
service credit. The board shall determine the length of the
period during which the payments are to be made.
(2) The board may deny an application for the purchase of
service credit if the purchase would exceed the limitations set
forth in Section 415 of the Internal Revenue Code.
(3) A participant may not claim the service credit for purposes
of determining eligibility or computing benefits unless the
participant has made all payments required for the purchase of
the service credit.
(e) To the extent permitted by the Internal Revenue Code and
applicable regulations, the fund may accept, on behalf of a
participant who is purchasing service credit under this section, a
rollover of a distribution from any of the following:
(1) A qualified plan described in Section 401(a) or Section
403(a) of the Internal Revenue Code.
(2) An annuity contract or account described in Section 403(b)
of the Internal Revenue Code.
(3) An eligible plan that is maintained by a state, a political
subdivision of a state, or an agency or instrumentality of a state
or political subdivision of a state under Section 457(b) of the
Internal Revenue Code.
(4) An individual retirement account or annuity described in
Section 408(a) or Section 408(b) of the Internal Revenue Code.
(f) To the extent permitted by the Internal Revenue Code and the
applicable regulations, the fund may accept, on behalf of a
participant who is purchasing service credit under this section, a
trustee to trustee transfer from any of the following:
(1) An annuity contract or account described in Section 403(b)
of the Internal Revenue Code.
(2) An eligible deferred compensation plan under Section
457(b) of the Internal Revenue Code.
As added by P.L.98-2004, SEC.17.
IC 33-38-6-27
Reference to judges' retirement system
Sec. 27. A reference to the judges' retirement system under this
chapter is considered a reference to the judges' retirement fund under
this article.
As added by P.L.98-2004, SEC.17.