35 IAC 1.2 — ARTICLE 1.2. PUBLIC EMPLOYEES' RETIREMENT FUND

TITLE 35 BOARD OF TRUSTEES OF THE INDIANA PUBLIC RETIREMENT SYSTEM

ARTICLE 1.2. PUBLIC EMPLOYEES' RETIREMENT FUND

Rule 1

35 IAC 1.2-1-1 35 IAC 1.2-1-1 Administration

Rule 1. General Provisions

35 IAC 1.2-1-1 Administration

Authority: IC 5-10.5-4-2

Affected: IC 5-10.1; IC 5-10.2; IC 5-10.3-2-1; IC 5-10.5-3-1

Sec. 1. The public employees' retirement fund of Indiana, created under IC 5-10.3-2-1 (hereinafter referred to as the fund or PERF) shall be administered by its board of trustees (hereinafter referred to as the board), which includes the implementation of IC 5-10.1, IC 5-10.2, and IC 5-10.3.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-1-1; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1078; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-1-2 35 IAC 1.2-1-2 Delegation of authority; powers and duties of executive director

35 IAC 1.2-1-2 Delegation of authority; powers and duties of executive director

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3-2-1; IC 5-10.5-6

Sec. 2. (a) The executive director is the executive officer of the fund's affairs and operations, makes eligibility and other determinations on applications made to the board, makes periodic reports to the board, and performs all other duties assigned by the board. The executive director shall cause all applicants and other necessary persons to be notified promptly of any determinations made concerning such applications.

(b) The executive director shall have the authority to enter into agreements and sign contracts on behalf of the fund pursuant to and in accordance with procurement policies established by the board.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-1-2; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1078; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Jun 11, 2010: 20100728-IR-035100467ONA)

35 IAC 1.2-1-3 35 IAC 1.2-1-3 General powers

35 IAC 1.2-1-3 General powers

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3; IC 5-10.5-4

Sec. 3. The board may employ investment managers, custodians, and investment consultants to carry out the powers and duties of the fund. The executive director may employ all necessary employees, auditors, technical experts, legal counsel, and other service providers to carry out the powers and duties of the fund.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-1-3; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1078; readopted filed Dec 2, 2001, 12:35 p.m.: 25 IR 1265; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-1-4 35 IAC 1.2-1-4 Normal retirement age

35 IAC 1.2-1-4 Normal retirement age

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-4-1; IC 5-10.3-8-1

Sec. 4. For purposes of permissible in service distributions as provided in 35 IAC 1.2-5, a member's normal retirement age is the age and service requirements necessary to be eligible for a normal, unreduced benefit for the member's particular fund. This section applies to all of the funds administered by INPRS.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-1-4; adopted Sep 16, 2011: 20110928-IR-035110563ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA)

35 IAC 1.2-1-5 35 IAC 1.2-1-5 Confidentiality of fund records administered by the Indiana public retirement system

35 IAC 1.2-1-5 Confidentiality of fund records administered by the Indiana public retirement system

Authority: IC 5-10.5-4-2

Affected: IC 2-3.5; IC 4-1-6; IC 5-10.2; IC 5-10.3; IC 5-10.4; IC 5-10.5-6-4; IC 29-1-8-1; IC 29-1-8-1.5; IC 29-3; IC 33-38; IC 36-8

Sec. 5. (a) This rule applies to all pension trust funds administered by INPRS.

(b) INPRS fund records of individual members and membership information are confidential, except as provided in IC 5-10.5-6-4. INPRS may in its sole discretion provide member records or membership information to members of the Indiana general assembly or their agents when such information is necessary to accomplish legal functions of such members of the general assembly, or to:

(1) state agencies pursuant to and in accordance with the Fair Information Practices Act when such information is necessary to accomplish the statutory functions of such agencies;

(2) independent bodies corporate and politic to accomplish statutory functions of such independent bodies so long as such independent bodies are contractually bound by a confidentiality agreement approved by INPRS and where in INPRS' sole discretion determines there is a necessity to provide such records;

(3) service providers who contract with INPRS so long as such service providers are contractually bound by a confidentiality agreement approved by INPRS and where in INPRS' sole discretion determines there is a necessity to provide such records;

(4) any person with express permission of the member, the member's attorney in fact, or guardian of the member established under the Indiana Probate Code;

(5) an active member's covered employer where in INPRS' sole discretion determines there is a necessity to provide such records so long as such employers are contractually bound by a confidentiality agreement approved by INPRS;

(6) the designated beneficiary or beneficiaries of a deceased member, personal representative of a deceased member with letters testamentary, or to a person pursuant to an affidavit described in IC 29-1-8-1 or IC 29-1-8-1.5; however, such release of information is limited to the information required to be released by statute or is necessary to accomplish the legal functions of the personal representative or the affiant; or

(7) comply with state or federal law, subpoena, discovery pursuant to the Indiana rules of trial procedure or the Indiana Orders and Procedures Act, or other court order.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-1-5; adopted Feb 17, 2012: 20120222-IR-035120095ONA; errata filed Jan 16, 2018, 3:12 p.m.: 20180124-IR-035180061ACA)

35 IAC 1.2-1-6 35 IAC 1.2-1-6 Interest on employees' contribution accounts administered by the Indiana public retirement system

35 IAC 1.2-1-6 Interest on employees' contribution accounts administered by the Indiana public retirement system

Authority: IC 5-10.5-4-2

Affected: IC 5-10-5.5; IC 5-10.2; IC 5-10.3; IC 33-38; IC 33-39; IC 36-8

Sec. 6. (a) This rule applies to all INPRS funds that have contribution accounts.

(b) Unless otherwise provided by law or rule of the board, when crediting interest on employee contribution accounts, INPRS shall do the following:

(1) With approval of the board, set the interest rate at least annually for the contribution accounts.

(2) For active members, credit interest at least once a year on the prior fiscal year-end balance.

(3) For members separated from service, members who die before vesting, and for survivors, the amount credited to the member's contribution account shall be the value of the member's contribution account plus interest valued the day after INPRS receives the member's application for a distribution or the date of death of the member plus contributions received after that date. No contribution account shall be valued under this provision prior to the effective date of the record keeper requirements to effectuate the implementation of this provision.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-1-6; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Mar 6, 2015: 20150318-IR-035150060ONA; adopted Jun 23, 2017: 20170705-IR-035170307ONA)

35 IAC 1.2-1-7 35 IAC 1.2-1-7 Overpayments and underpayments to employer, PERF ASA, and contribution accounts administered by the Indiana public retirement system

35 IAC 1.2-1-7 Overpayments and underpayments to employer, PERF ASA, and contribution accounts administered by the Indiana public retirement system

Authority: IC 5-10.5-4-2

Affected: IC 5-10-5.5; IC 5-10.2; IC 5-10.3; IC 33-38; IC 33-39; IC 36-8

Sec. 7. (a) This rule applies to all INPRS funds that have contribution accounts.

(b) When there has been an overpayment of picked up member contributions or after-tax member contributions by an employer, the principal amount of the overpayment will be credited to the employer to the extent funds are in the account. The principal amount of the overpayment may be adjusted for earnings/interest at the interest rate defined in subsection (e).

(c) When there has been an underpayment of picked up member contributions or after-tax member contributions by an employer, the principal amount of the underpayment will be billed to the employer. The principal amount of the underpayment may be adjusted for earnings/interest at the interest rate defined in subsection (e) to begin accruing seven (7) days after the pay period end date of the original wage and contribution report.

(d) When there has been an overpayment of employer contributions, the principal amount of the overpayment will be credited to the employer. The principal amount of the overpayment may be adjusted for earnings/interest at the interest rate defined in subsection (e).

(e) When there has been an underpayment of the employer contribution, the principal amount of the underpayment will be billed to the employer. The principal amount may be adjusted for earnings/interest at the interest rate defined in subsection (f) to begin accruing seven (7) days after the pay period end date of the original wage and contribution report.

(f) For purposes of this section, the interest rate shall be determined by the executive director and shall not exceed the assumed rate of return set by the board.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-1-7; adopted Mar 6, 2015: 20150318-IR-035150060ONA; adopted Feb 22, 2019: 20190227-IR-035190137ONA; adopted Sep 10, 2021: 20210915-IR-035210420ONA)

35 IAC 1.2-1-8 35 IAC 1.2-1-8 Vested status

35 IAC 1.2-1-8 Vested status

Authority: IC 5-10.5-4-2

Affected: IC 4-30-3-14.5; IC 5-10.2-2-20; IC 5-10.3-6

Sec. 8. (a) A member entitled to vested status due to:

(1) the lottery commission conversion to PERF under IC 4-30-3-14.5;

(2) the withdrawal of a political subdivision or miscellaneous participating entity under IC 5-10.3-6-8, IC 5-10.3-6-8.5, or IC 5-10.2-2-20;

(3) termination from state employment as a result of transfer of state property to a nongovernmental entity or a contractual arrangement with a nongovernmental entity to perform certain state functions under IC 5-10.3-6-8.9; or

(4) any other position where the member is entitled to vested status by law, despite having less than ten (10) years of service;

is not entitled to additional creditable or eligibility service to reach vested status.

(b) Vested, under this rule, is a status and no eligibility service or other service may be used to attain vested status. For example: Jodi was an employee of the lottery commission with three (3) years of lottery commission service when she became a PERF member on July 1, 2013, while still being employed by the lottery commission. Jodi is vested with three (3) years of service. No eligibility service is added to these three (3) years to arrive at ten (10) years of service. If Jodi were to work five (5) more years in a PERF covered position, she would have eight (8) years of service and would be eligible for a PERF pension benefit when she is sixty-five (65) years of age. Jodi would not be service eligible to begin receiving a benefit prior to attaining age sixty-five (65).

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-1-8; adopted Sep 11, 2015: 20150923-IR-035150302ONA)

35 IAC 1.2-1-9 35 IAC 1.2-1-9 Administrative fees

35 IAC 1.2-1-9 Administrative fees

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-3-6; IC 5-10.3-12-22

Sec. 9. (a) Administrative expenses incurred by accounts in a particular defined contribution plan shall be paid from within that respective plan.

(b) Administrative fees shall be a fixed annual amount per account. The annual amount shall be prorated over one (1) fiscal year and charged to be the member's account monthly.

(d) Administrative fees include, but are not limited to, record keeper fees and INPRS' internal administrative expenses.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-1-9; adopted Jun 23, 2017: 20170705-IR-035170307ONA)

35 IAC 1.2-1-10 35 IAC 1.2-1-10 Application for retirement

35 IAC 1.2-1-10 Application for retirement

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-4-1; IC 5-10.2-4-1.3

Sec. 10. (a) An application for retirement will not be processed unless properly completed by the member.

(b) INPRS may investigate any and all applications.

(c) Upon investigation, INPRS may determine that a member was eligible for retirement prior to the date selected by the member on the retirement application. INPRS may utilize the earlier retirement date after obtaining authorization or providing written notice, including opportunity to dispute application of the earlier retirement date, to the member.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-1-10; adopted Dec 13, 2019: 20191225-IR-035190683ONA)

Rule 2

35 IAC 1.2-2-1 35 IAC 1.2-2-1 Definitions

Rule 2. Definitions

35 IAC 1.2-2-1 Definitions

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3-2-1; IC 5-10.3-7; IC 5-10.5

Sec. 1. The following definitions apply throughout this title, unless the context otherwise clearly requires:

(1) "After the member's retirement", for purposes of IC 5-10.2-4-8(b), means when a member separates from employment.

(2) "Annuity savings account" or "ASA" consists of the member's contributions whether paid by the member or picked up by the employer, additional annuity contributions, and interest credits on these contributions.

(3) "Board" means the board of trustees of the public employees' retirement fund of Indiana.

(4) "Ceases service", for purposes of IC 5-10.2-4-3(e) only, means when a member stops earning creditable service.

(5) "Contribution accounts" means accounts holding employee contributions other than those to the annuity savings account.

(6) "Defined contribution account" means the account consisting of the member's contributions whether paid by the member or picked up by the employer, additional voluntary contributions, and earnings, minus fees.

(7) "Employer" means the state for employees of the state and a participating political subdivision for its employees.

(8) "Employer contributions" means contributions made by the state and political subdivisions to the retirement allowance account.

(9) "ERM" means the employer reporting and maintenance system, a web-enabled software application that manages employer and member data and collects members' wages and contributions.

(10) "Full-time employee" means an employee occupying a position covered by the fund as set out in IC 5-10.3-7.

(11) "Fund" means the public employees' retirement fund of Indiana.

(12) "Gender and number" means the masculine gender shall include the feminine, and the singular the plural as the context may require.

(13) "Governing body" means the county council, city council, trustees of a town, the township board, board of school commissioners, library board, or any board which by law is authorized to fix a rate of taxation on property of a political subdivision, or any other board which is empowered to administer the affairs of any department of a political subdivision, which department receives revenue independently of, or in addition to, funds obtained from taxation.

(14) "Indiana pension administration system" or "INPAS" means the defined benefit system, a software application that manages employer and member data and calculates member retirement, disability, and survivor benefits.

(15) "INPRS" means the Indiana public retirement system established under IC 5-10.5-2-1.

(16) "Member" means persons qualifying for membership under IC 5-10.3-7-1.

(17) "Member's contribution" means contribution which each member shall, as a condition of employment, contribute to the fund, which is three percent (3%) of the member's compensation (basic salary as defined in 35 IAC 1.2-5-5), and which includes contributions paid by the employer for the member pursuant to IC 5-10.2-3-2 and IC 5-10.3-7-9, and additional annuity contributions.

(18) "PERF" means the public employees' retirement fund.

(19) "Political subdivision" means a county, city, town, township, political body corporate, public school corporation, public library, public utility of a county, city, town, township, and any department of, or associated with, a county, city, town or township, which department receives revenue independently of, or in addition to, funds obtained from taxation.

(20) "Record keeper" means a third party service provider that provides bookkeeping services for INPRS members' individual ASA and RSA investment trading transactions and individual accounts, including daily valuations of accounts.

(21) "Retirement allowance account" consists of employer contributions for pensions and separate accounts shall be maintained for contributions by the state and by each political subdivision.

(22) "Rollover savings account" or "RSA" consists of a member's funds transferred to INPRS from another qualified plan plus any interest or earnings.

(23) "Vested status" means the member's status of being guaranteed a pension benefit.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-2-1; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1078; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Feb 19, 2010: 20100310-IR-035100124ONA; adopted Jun 11, 2010: 20100728-IR-035100467ONA; adopted Nov 19, 2010: 20101208-IR- 035100722ONA; adopted Dec 17, 2010: 20101229-IR-035100777ONA; adopted Feb 17, 2012: 20120222-IR-035120095ONA; adopted Jun 29, 2012: 20120718-IR-035120397ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Apr 26, 2013: 20130508-IR-035130167ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted Jun 23, 2017: 20170705-IR-035170307ONA)

Rule 3

35 IAC 1.2-3-1 35 IAC 1.2-3-1 Creditable service

Rule 3. Creditable Service

35 IAC 1.2-3-1 Creditable service

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-3; IC 5-10.3

Sec. 1. All creditable service is determined by IC 5-10.2-3 and these rules [this article] .

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-1; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1079; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-3-2 35 IAC 1.2-3-2 Reemployment after termination of employment; suspension of membership; withdrawal of contributions

35 IAC 1.2-3-2 Reemployment after termination of employment; suspension of membership; withdrawal of contributions

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-3-5; IC 5-10.2-3-6; IC 5-10.2-3-6.5; IC 5-10.3-7-6

Sec. 2. (a) Except as provided in IC 5-10.2-3-6.5, a member's suspension, after termination of employment and withdrawal of contributions or by operation of IC 5-10.2-3-5, shall be canceled and the individual's prior service shall qualify as creditable service if the individual is reemployed in a PERF or TRF covered position. Time spent on an employer approved leave of absence granted under the Family Medical Leave Act (FMLA) or pursuant to IC 5-10.3-7-6 taken during the reemployment period shall be used in determining whether the employee met the requirements of this section provided that the member returned to covered employment immediately after termination of such leave.

(b) After a member is suspended under IC 5-10.2-3-6, the member's defined contribution account remains invested as previously directed by the member.

(c) Distributions of less than one thousand dollars ($1,000) made pursuant to IC 5-10.2-3-6(d) shall be mailed to the address on file with INPRS. INPRS shall make reasonable efforts to obtain valid addresses. If no valid address is available, the money remains invested as the member directed until it is claimed or the plan is otherwise required to make a distribution.

(d) Prior to a distribution, INPRS shall provide the member with all required notices and the reason for the distribution.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-2; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1079; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Nov 21, 2008: 20090107-IR-035080955ONA; adopted Feb 19, 2010: 20100310-IR-035100124ONA; adopted Apr 26, 2013: 20130508-IR-035130167ONA; adopted Jun 20, 2014: 20140820-IR-035140335ONA; adopted Jun 23, 2017: 20170705-IR-035170307ONA; adopted Sep 14, 2018: 20180919-IR-035180399ONA)

35 IAC 1.2-3-2.1 35 IAC 1.2-3-2.1 Suspension of membership and withdrawal of contributions

35 IAC 1.2-3-2.1 Suspension of membership and withdrawal of contributions

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-3-5; IC 5-10.2-3-6; IC 5-10.2-3-6.5; IC 5-10.3-7-6

Sec. 2.1. (a) This section applies to:

(1) vested members who suspend their membership and withdraw their ASA after December 31, 2008;

(2) vested and nonvested members who suspend their membership and withdraw their ASA after June 30, 2018; and

(3) vested members actively serving in a covered position who withdraw amounts from their ASA after June 30, 2020, under IC 5-10.2-3-6.5.

(b) Service credit for a member described in subsection (a) will not be canceled due to withdrawal of the member's ASA.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-2.1; adopted Sep 14, 2018: 20180919-IR-035180399ONA; adopted Jun 26, 2020: 20200708-IR-035200360ONA)

35 IAC 1.2-3-3 35 IAC 1.2-3-3 School employees

35 IAC 1.2-3-3 School employees

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3-6-1; IC 20-25.7-4; IC 20-31-9-4

Sec. 3. (a) A member who is employed in a PERF covered position by a school corporation, state school, university, school city or town, or school corporation shall receive one (1) year of service credit if employed during the full regular school term or contract period for that member's position. Nothing less than full compliance with this rule will give such year of creditable service.

(b) Pursuant to IC 20-31-9.5-7 [IC 20-31-9.5-7 was repealed by P.L. 211-2021, SECTION 30, effective July 1, 2021.] , special management teams established under IC 20-31-9-4 may enroll employees of the special management teams who are not licensed as teachers by the Indiana state board of education or the Indiana professional licensing agency in PERF by adopting a resolution described in IC 5-10.3-6-1. Required contributions must be made to the fund.

(c) Pursuant to IC 20-25.7-4, an innovation network school established under IC 20-25.7-4 may enroll employees of the innovation network school who are not licensed as teachers by the Indiana state board of education or the Indiana professional licensing agency in PERF by adopting a resolution described in IC 5-10.3-6-1. Required contributions must be made to the fund.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-3; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1079; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Jun 29, 2012: 20120718-IR-035120397ONA; adopted Jun 20, 2014: 20140820-IR-035140335ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA)

35 IAC 1.2-3-4 35 IAC 1.2-3-4 Full service credit

35 IAC 1.2-3-4 Full service credit

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 4. (a) Except as otherwise specifically required by law, for all service credit calculations performed on or after January 1, 2007, service credit shall be granted in quarterly increments, with a member entitled to one (1) quarter of creditable service for each calendar quarter in which the member is employed at least one (1) full day in a full-time, PERF-covered position, and for which employer contributions have been made. Notwithstanding any provision to the contrary, service credit shall not be granted for any period of employment if such grant of service credit would result in a member receiving more than one (1) month of service credit for the same calendar month.

(b) A member's first and last quarter of PERF-covered employment, notwithstanding subsection (a), for those quarters in which a member commenced or completed employment in a PERF-covered position, service shall be granted in monthly increments, with a member entitled to one (1) month of creditable service for each month in which the member was employed at least one (1) full day in a full-time, PERF-covered position, and for which employer contributions have been made.

(c) Notwithstanding subsections (a) and (b), once PERF implements ERM, all service credit calculations shall be granted in monthly increments, with a member entitled to one (1) month of creditable service for each calendar month in which the member is employed at least one (1) full day in a full-time, PERF-covered position, and for which employer contributions are made. Notwithstanding any provision to the contrary, service credit shall not be granted for any period of employment if such grant of service credit would result in a member receiving more than one (1) month of service credit for the same calendar month.

(d) This rule applies only to members earning service credit through their employment in PERF-covered positions, and does not apply to members of the other retirement funds administered by PERF. Such funds shall continue to perform service credit calculations in the manner such calculations were performed as of December 1, 2006, unless subsequently amended by law.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-4; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1079; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Oct 20, 2006: 20061101-IR-035060500ONA; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Apr 29, 2011: 20110511-IR-035110273ONA)

35 IAC 1.2-3-5 35 IAC 1.2-3-5 Leave of absence

35 IAC 1.2-3-5 Leave of absence

Authority: IC 5-10.3-7-8; IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3-7-6

Sec. 5. (a) As used in this section, "FMLA" refers to the Family and Medical Leave Act (29 U.S.C. 2601 et seq.) and all applicable regulations and amendments.

(b) A member shall receive service credit for the period of time during which the member is granted a leave of absence under IC 5-10.3-7-6 and for which applicable employer contributions have been made as follows:

(1) Except as otherwise required by the FMLA, the credit shall be allowed if a copy of the grant of the leave of absence is filed in a form and manner approved by INPRS within forty-five (45) days from the date the leave was authorized by the employer. Grants filed with INPRS electronically, through INPRS' Employer Reporting and Maintenance system are deemed to have met this requirement. Furthermore, except as otherwise required by the FMLA or other federal or state laws that specifically require the granting of service credit for authorized unpaid leaves of absence, service credit shall not be granted for any unpaid leaves of absence taken on or after January 1, 2007, if employer contributions are not made for such periods of leave.

(2) A leave of absence will be treated as creditable service only if the member returns to employment for a period of not less than six (6) consecutive months; however, if the member shows to the satisfaction of the fund that there was a bona fide intent to return to employment and comply with this rule and the member was capable of performing such employment, but was prevented from working the full six (6) month period due to illness, injury, or death which occurred subsequent to the date of return to employment, then this six (6) month requirement shall be waived.

(d) If the member is compensated while on an FMLA-covered leave, the statutory contributions must be maintained. A member may make contributions as provided in IC 5-10.3-7-6(b) during an unpaid FMLA leave, although such contributions shall not result in service credit for benefit purposes unless employer contributions are made for such period of leave. The member's employer is not required to make contributions with respect to an unpaid FMLA leave; however, if employer contributions are not made, the member shall be entitled only to the eligibility service required by the FMLA.

(e) In calculating credit for vesting and eligibility purposes, time spent on an FMLA protected leave shall be counted, including any time spent receiving disability benefits while on such leave.

(f) A member seeking credit for an FMLA leave must provide documentary evidence demonstrating that the statutory requirements have been satisfied.

(g) Unless otherwise provided by law, a leave of absence is not a separation from service.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-5; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1079; filed May 7, 1998, 4:15 p.m.: 21 IR 3326; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Oct 20, 2006: 20061101-IR-035060500ONA; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA)

35 IAC 1.2-3-6 35 IAC 1.2-3-6 Reinstatement

35 IAC 1.2-3-6 Reinstatement

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 6. A member whose service is involuntarily terminated and who is later reinstated as a result of a court determination and order or administrative final determination and order may be eligible for PERF credit if proper supporting documents are filed with PERF and approved by the board or the executive director and employer contributions are made.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-6; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1080; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-3-7 35 IAC 1.2-3-7 Service credit for injured employees

35 IAC 1.2-3-7 Service credit for injured employees

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 7. Creditable service shall be earned by a member injured during the scope of the member's employment and paid benefits under the Worker's Compensation Act or the State Personnel Act; however, no service credit will be used that is earned during the period of time during which PERF disability benefits were paid in the calculation of the PERF disability benefit. However, unless otherwise prohibited by law, such service shall be used to determine retirement benefits if the member becomes eligible for normal retirement.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-7; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1080; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Apr 26, 2013: 20130508-IR-035130167ONA; adopted May 7, 2021: 20210519-IR-035210173ONA)

35 IAC 1.2-3-8 35 IAC 1.2-3-8 Unused sick leave

35 IAC 1.2-3-8 Unused sick leave

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 8. No creditable service shall be given after a member's last physical day at work for unused sick leave time that may or may not be paid to the member, the member's beneficiary, or estate.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-8; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1080; filed Mar 1, 2000, 7:48 a.m.: 23 IR 1606; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-3-9 35 IAC 1.2-3-9 Optional service

35 IAC 1.2-3-9 Optional service

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 9. Employees of participating school corporations who occupy PERF covered positions normally requiring performance of service of less than one thousand (1,000), but more than six hundred (600) hours a year and who opt to become members of the fund, shall be credited only for service from the date such option was made.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-9; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1080; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-3-10 35 IAC 1.2-3-10 Military service

35 IAC 1.2-3-10 Military service

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3-7-5

Sec. 10. In addition to the creditable service allowed by IC 5-10.3-7-5 for military service, a member is also entitled to creditable service as set forth at 38 U.S.C. 4301, et seq., the Uniformed Services Employment and Reemployment Rights Act of 1994.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-10; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1080; readopted filed Dec 2, 2001, 12:35 p.m.: 25 IR 1265; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-3-11 35 IAC 1.2-3-11 Comprehensive Employment Training Act (CETA)

35 IAC 1.2-3-11 Comprehensive Employment Training Act (CETA)

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 11. Employees involved in the administration of Comprehensive Employment Training Act (CETA) programs may be covered by PERF. Regular CETA employment is not such employment that may be covered by PERF. CETA employees who leave CETA employment and subsequently enter employment in a PERF-covered position shall not receive service credit for prior CETA employment, even if the position is essentially the same. The participating employer is solely responsible for classifying the member's service, and such classification is binding on the affected employee and the fund.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-11; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1080; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-3-12 35 IAC 1.2-3-12 Purchase of prior bureau of motor vehicles commission service

35 IAC 1.2-3-12 Purchase of prior bureau of motor vehicles commission service

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-3-1; IC 5-10.3-7

Sec. 12. (a) Under IC 5-10.2-3-1 and IC 5-10.3-7-2, employees of the bureau of motor vehicles commission (BMVC) are not entitled to automatic coverage or service credit prior to July 1, 1999, for service with the BMVC, because of their coverage in a retirement plan established by the BMVC. However, under IC 5-10.3-7-8, the board believes it would be reasonable to allow employees to purchase any BMVC service from the later of:

(1) January 1, 1987, the date the BMVC established its retirement plan; or

(2) the date the individual became an employee of the BMVC;

through June 30, 1999, the date the BMVC terminated its retirement plan. For purposes of this section, BMVC service does not include service in any license branch prior to becoming a BMVC employee, or service at a license branch prior to the conversion of that license branch to the BMVC. Service in a license branch that is not BMVC service shall not be eligible for service purchase under this rule nor shall it be credited to any employee without purchase.

(b) The cost to purchase such service shall be the total actuarial cost of the service. The fund shall provide the employees with information with respect to the cost of such service.

(1) Any such purchase may be made via a direct cash payment, a direct rollover under IC 5-10.3-7-9.5, or a combination of both.

(2) Any direct rollover may not exceed the actual cost of such service as established by the fund.

(3) Any direct cash payment may be made in a lump sum or in installments for a period not to exceed five (5) years. Any installment shall bear interest at the actuarial interest rate effective on the date of the first installment. Any payments are subject to applicable Internal Revenue Service limits, and the fund may limit any payments in a manner necessary to comply with these limits.

(d) This section also applies to former employees of the BMVC with BMVC service who are employed in a PERF-covered position at the time they purchase such service.

(e) In no event shall any BMVC service prior to July 1, 1999, be credited under IC 5-10.3-7-7.5 because of the exclusion under IC 5-10.3-7-2(4) unless purchased in accordance with this section.

(f) The restriction contained in IC 5-10.3-7-4.5(d) does not apply to a purchase made under this section.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-12; filed Dec 11, 2000, 2:12 p.m.: 24 IR 946; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-3-13 35 IAC 1.2-3-13 Purchase of service

35 IAC 1.2-3-13 Purchase of service

Authority: IC 5-10.5-4-2

Affected: IC 5-10.3-7

Sec. 13. (a) Eligible PERF members may purchase service under IC 5-10.3-7-4.5, IC 5-10.3-7-4.6, IC 5-10.3-7-4.8, and IC 5-10.3-7-5.

(b) The cost to purchase such service shall be the total actuarial cost of the service. The fund shall provide the eligible fund member with information with respect to the cost of such service.

(1) Service may be purchased in one (1) month increments. The minimum service purchase is one (1) year for a member who elects to purchase service through a finance agreement.

(2) Installment payments are subject to the terms of the finance agreement.

(3) Any such purchase may be made via a direct cash payment, a direct rollover as allowed by statute, or a combination of both.

(4) Any direct rollover may not exceed the actual cost of such service as established by the fund.

(5) Payment may be made in a lump sum or in annual installments for a period not to exceed five (5) years. Any installment may bear interest at the interest rate (defined within this section) effective on the date of the first installment. Any payments are subject to applicable Internal Revenue Service limits, and the fund may limit any payments in a manner necessary to comply with these limits.

(d) In the event of a payment default under the terms of the finance agreement, a partial service credit amount will be determined by INPRS. The partial service credit amount will be based on the payments made as of the date of payment default and the actuarial cost of the service. The minimum amount of partial service credit will be one (1) month. Partial service will be credited in monthly increments. The fund member is not eligible to make service purchase payments after the date of the payment default.

(e) A partial service credit will be determined by INPRS if the service purchase is not completed. The minimum amount of partial service credit will be one (1) month. Service will be credited in monthly increments based on the total payments and the actuarial cost of the service. Payments for a service purchase may not be made after the date of a payment default or the date of separation of employment.

(f) Any interest rate used will be set as determined by INPRS.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-13; adopted Feb 19, 2010: 20100310-IR-035100124ONA; adopted Nov 19, 2010: 20101208-IR-035100722ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA)

35 IAC 1.2-3-14 35 IAC 1.2-3-14 Omitted or missing employer contribution rate record

35 IAC 1.2-3-14 Omitted or missing employer contribution rate record

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-2-11; IC 5-10.3

Sec. 14. In the event that PERF is unable to verify the employer contribution rate for a specific employer for a reporting period from historical records or other means, PERF may substitute and apply the employer contribution rate of the state of Indiana for the omitted or missing rate during the period for administration of PERF business.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-14; adopted Sep 16, 2011: 20110928-IR-035110563ONA)

35 IAC 1.2-3-15 35 IAC 1.2-3-15 Purchase of service for the judges' retirement system

35 IAC 1.2-3-15 Purchase of service for the judges' retirement system

Authority: IC 5-10.5-4-2; IC 33-38-8

Affected: IC 33-38-7

Sec. 15. (a) Eligible members and nonretired members of the judges' retirement system may purchase service pursuant to IC 33-38-7-18, IC 33-38-7-19, IC 33-38-8-22, IC 33-38-8-22.5, and IC 33-38-8-23.

(b) The cost to purchase such service is determined at the time the member makes the contributions for such service. The cost to purchase service for nonretired members is actuarially calculated based on the annual statutory compensation of active members. The fund shall provide the eligible fund member with information with respect to the cost of such service.

(1) Service may be purchased in one (1) month increments. The minimum service purchase is one (1) year for a member who elects to purchase service through installment payments.

(2) Payments are subject to the terms and conditions of a finance agreement.

(3) Any such purchase may be made via a direct cash payment, a direct rollover as allowed by statute, or a combination of both.

(4) Any direct rollover may not exceed the actual cost of such service as established by the fund.

(5) Payment may be made in a lump sum or in annual installments for a period not to exceed five (5) years. Any installment may bear interest at the actuarial assumed interest rate effective on the date of the first installment.

(6) Any payments are subject to applicable Internal Revenue Service limits, and INPRS may deny an application or may limit any payments if the purchase would exceed those limitations.

(7) In the event of a payment default under the terms of the finance agreement or the purchase is not completed, a partial service credit amount will be determined by INPRS. The partial service credit amount will be based on the payments made as of the date of payment default and the cost of the service. Partial service will be credited in monthly increments. The minimum amount of partial service credit will be one (1) month. The fund member is not eligible to make service purchase payments after the date of the payment default or the date of separation of employment.

(8) In the event any annual payment is not timely made, allowing for a thirty (30) day grace period, the payment will be deemed in default under the terms of the finance agreement. The fund member is not eligible to make service purchase payments after the date of the payment default.

(9) If the member does not choose periodic payments, a lump sum payment must be received within ninety (90) days of the member receiving the cost letter. In the event the lump sum payment is not timely made, allowing for a thirty (30) day grace period, the payment will be deemed in default under the terms of the finance agreement. The fund member is not eligible to make service purchase payments after the date of the payment default.

(10) If a lump sum payment is chosen, full payment must be received within ninety (90) days of the member receiving the cost letter or the purchase defaults and no further payments may be made.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-15; adopted Dec 13, 2013: 20131225-IR-035130565ONA; adopted Feb 23, 2018: 20180307-IR-035180117ONA)

35 IAC 1.2-3-16 35 IAC 1.2-3-16 Prosecuting attorneys retirement fund reemployment after withdrawal of contributions

35 IAC 1.2-3-16 Prosecuting attorneys retirement fund reemployment after withdrawal of contributions

Authority: IC 5-10.5-4-2; IC 33-39-7

Affected: IC 33-39-7-13

Sec. 16. (a) A participant of the prosecuting attorneys retirement fund who withdraws from the fund and becomes a participant again at a later date is entitled to service credit for years of service before the withdrawal if the participant pays into the fund the full amount received by the participant when the participant withdrew from the fund, plus interest. The interest is at a rate determined by the board and is calculated from the date of the withdrawal.

(b) The cost to purchase such service is determined at the time the member makes the contributions for such service. The fund shall provide the eligible fund member with information with respect to the cost of such service.

(1) Service may be purchased in one (1) month increments. The minimum service purchase is one (1) year for a member who elects to purchase service through installment payments.

(2) Payments are subject to the terms and conditions of a finance agreement.

(3) Any such purchase may be made via a direct cash payment, a direct rollover as allowed by statute, or a combination of both.

(4) Any direct rollover may not exceed the actual cost of such service as established by the fund.

(6) Any payments are subject to applicable Internal Revenue Service limits, and INPRS may deny an application or may limit any payments if the purchase would exceed those limitations.

(10) If a lump sum payment is chosen, full payment must be received within ninety (90) days of the member receiving the cost letter or the purchase defaults and no further payments may be made.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-16; adopted Dec 13, 2013: 20131225-IR-035130565ONA)

35 IAC 1.2-3-17 35 IAC 1.2-3-17 Eligibility for additional service purchase refund

35 IAC 1.2-3-17 Eligibility for additional service purchase refund

Authority: IC 5-10.5-4-2

Affected: IC 5-10-5.5-7.5; IC 5-10.3-7; IC 33-38-8; IC 36-8-8-8.3; IC 36-8-8-8.8

Sec. 17. (a) This rule applies to all pension trust funds administered by INPRS and all circumstances under which a member may purchase service.

(b) A member who wishes to withdraw the service purchase amount plus accumulated interest after submitting a properly completed application for a refund to the fund, when permitted by Indiana law, satisfies the eligibility requirements necessary to receive a monthly allowance when the member is both age and service eligible for a retirement benefit.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-17; adopted Jun 20, 2014: 20140820-IR-035140335ONA)

35 IAC 1.2-3-18 35 IAC 1.2-3-18 Service credit determinations

35 IAC 1.2-3-18 Service credit determinations

Authority: IC 5-10.5-4-2

Affected: IC 5-10.3-7-8

Sec. 18. A member who:

(1) receives a service credit determination from INPRS that incorrectly states the member's vested status; and

(2) subsequently relies on that determination during the member's decision to resign his or her position;

may be eligible for vested status, if that member's retirement application is denied. Such cases shall be evaluated on a case by case basis and whether vested status is granted depends on the unique facts for each member's situation. Any service credit granted shall be used for pension eligibility purposes only and shall not be used in the calculation of a benefit.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-18; adopted Nov 4, 2016: 20161116-IR-035160500ONA)

35 IAC 1.2-3-19 35 IAC 1.2-3-19 Judges' retirement fund reemployment after withdrawal of contributions

35 IAC 1.2-3-19 Judges' retirement fund reemployment after withdrawal of contributions

Authority: IC 5-10.5-4-2

Affected: IC 33-38-8

Sec. 19. (a) A participant of the judges' retirement fund who withdraws from the fund and becomes a participant again at a later date is entitled to service credit for years of service before the withdrawal if the participant pays into the fund the full amount received by the participant when the participant withdrew from the fund, plus interest. The interest is at a rate determined by the board and is calculated from the date of the withdrawal.

(b) The cost to purchase such service is determined at the time the participant makes the contributions for such service. The fund shall provide the eligible fund participant with information with respect to the cost of such service.

(1) Service may be purchased in one (1) month increments. The minimum service purchase is one (1) year for a participant who elects to purchase service through installment payments.

(2) Payments are subject to the terms and conditions of a finance agreement.

(3) Any such purchase may be made via a direct cash payment, a direct rollover as allowed by statute, or a combination of both.

(4) Any direct rollover may not exceed the actual cost of such service as established by the fund.

(6) Any payments are subject to applicable Internal Revenue Service limits, and INPRS may deny an application or may limit any payments if the purchase would exceed those limitations.

(7) In the event of a payment default under the terms of the finance agreement or the purchase is not completed, a partial service credit amount will be determined by INPRS. The partial service credit amount will be based on the payments made as of the date of payment default and the cost of the service. Partial service will be credited in monthly increments. The minimum amount of partial service credit will be one (1) month. The fund participant is not eligible to make service purchase payments after the date of the payment default or the date of separation of employment.

(8) In the event any annual payment is not timely made, allowing for a thirty (30) day grace period, the payment will be deemed in default under the terms of the finance agreement. The fund participant is not eligible to make service purchase payments after the date of the payment default.

(9) If the participant does not choose periodic payments, a lump sum payment must be received within ninety (90) days of the participant receiving the cost letter. In the event the lump sum payment is not timely made, allowing for a thirty (30) day grace period, the payment will be deemed in default under the terms of the finance agreement. The fund participant is not eligible to make service purchase payments after the date of the payment default.

(10) If a lump sum payment is chosen, full payment must be received within ninety (90) days of the participant receiving the cost letter or the purchase defaults and no further payments may be made.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-3-19; adopted Sep 10, 2021: 20210915-IR-035210420ONA)

Rule 4

35 IAC 1.2-4-1 35 IAC 1.2-4-1 Members of the fund

Rule 4. Members of the Fund

35 IAC 1.2-4-1 Members of the fund

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3-7

Sec. 1. Members of the fund are determined by IC 5-10.3-7-1 through IC 5-10.3-7-3, inclusive, and these rules [this article] .

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-4-1; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1080; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-4-2 35 IAC 1.2-4-2 Comprehensive Employment Training Act (CETA) administrators (Repealed)

35 IAC 1.2-4-2 Comprehensive Employment Training Act (CETA) administrators (Repealed)

(Repealed by Board of Trustees of the Indiana Public Retirement System; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-4-3 35 IAC 1.2-4-3 School bus drivers

35 IAC 1.2-4-3 School bus drivers

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 3. An employee who is a school bus driver is eligible at his option to participate in PERF if:

(1) the school bus is wholly owned by the school corporation;

(2) the school board by its resolution covers the position of school bus driver; and

(3) the position normally requires the performance of service of more than six hundred (600) hours during the school term; however, if subdivisions (1) through (2) are met and the position normally requires performance of services of one thousand (1,000) hours or more, such employee shall be in PERF. For the member who makes such option, creditable service shall be granted only from the date such option was made and contributions received from the employer.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-4-3; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1080; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-4-4 35 IAC 1.2-4-4 Students excluded

35 IAC 1.2-4-4 Students excluded

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 4. Full-time students in a post secondary or higher educational institution are not eligible for PERF if employed under a:

(1) work study program;

(2) co-op program;

(3) tuition assistance program; or

(4) general student assistance program.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-4-4; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1081; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-4-5 35 IAC 1.2-4-5 Prosecuting attorneys and deputy prosecuting attorneys

35 IAC 1.2-4-5 Prosecuting attorneys and deputy prosecuting attorneys

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 5. (a) All prosecuting attorneys and deputy prosecuting attorneys whose compensation was paid from state or county funds prior to July 1, 1987, are entitled to service credit and deemed to be members of the fund as set forth in these rules (35 IAC 1.2) [this article] unless and until the auditor of Indiana and the designated county officials certify to PERF that such position normally required:

(1) less than one thousand (1,000) hours of service annually on or after July 1, 1982;

(2) between six hundred (600) hours and one thousand (1,000) hours prior to July 1, 1982, and the employee did not exercise the option to become a member of the fund; or

(3) less than six hundred (600) hours and the employee was hired before July 1, 1982.

(b) Effective July 1, 1987, prosecuting attorneys and deputies who are paid wholly or in part by state funds shall be members of PERF. All deputy prosecuting attorneys paid solely by other than state funds are eligible to be members of PERF if their positions are covered by the resolution of the governing body of the political subdivision and the other requirements for eligibility are met as set forth in these rules (35 IAC 1.2) [this article] and the statutes.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-4-5; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1081; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-4-6 35 IAC 1.2-4-6 Members of the general assembly (Expired)

35 IAC 1.2-4-6 Members of the general assembly (Expired)

Sec. 6.

(Expired under IC 4-22-2.5, effective January 1, 2002.)

35 IAC 1.2-4-7 35 IAC 1.2-4-7 Prosecuting attorneys' retirement fund highest annual salary defined

35 IAC 1.2-4-7 Prosecuting attorneys' retirement fund highest annual salary defined

Authority: IC 33-39-7-11; IC 5-10.5-7-5

Affected: IC 33-39-7-16

Sec. 7. The highest annual salary for purposes of IC 33-39-7-16(c)(1) is the sum of the highest completed consecutive twelve (12) months of salary that was paid to the participant before retirement.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-4-7; adopted Apr 29, 2011: 20110511-IR-035110273ONA; adopted Sep 16, 2011: 20110928-IR-035110563ONA; adopted Feb 17, 2012: 20120222-IR-035120095ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA)

35 IAC 1.2-4-8 35 IAC 1.2-4-8 Prosecuting attorneys' retirement fund death benefit calculation

35 IAC 1.2-4-8 Prosecuting attorneys' retirement fund death benefit calculation

Authority: IC 5-10.5-4-2; IC 33-39-7-11

Affected: IC 33-39-7-19

Sec. 8. The death benefit payable to the surviving spouse of a member of the prosecuting attorneys' retirement fund under IC 33-39-7-19 is an annual benefit, payable in monthly installments.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-4-8; adopted Apr 29, 2011: 20110511-IR-035110273ONA)

Rule 5

35 IAC 1.2-5-1 35 IAC 1.2-5-1 Retirement options

Rule 5. Retirement and Disability Benefits

35 IAC 1.2-5-1 Retirement options

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-4; IC 5-10.3-8-3; IC 33-38-8-14

Sec. 1. (a) A member who retires or becomes eligible for a disability retirement cannot change the retirement option, nor may a member who chooses a lump sum payment under IC 5-10.2-4-2(a) change this choice, nor may the beneficiary designation on the application for benefits be changed under joint and survivorship options after the first day of the month that benefit payments are scheduled to begin. It is immaterial whether or not a check has been sent, received, or negotiated. (See also section 13 of this rule.) A member of the fund after June 30, 2008, may change a beneficiary designation pursuant to IC 5-10.2-4-7 or IC 5-10.2-4-7.2.

(b) Under IC 5-10.2-4-7, in the event that the increased retirement benefit under the integration with Social Security option prior to Social Security eligibility is calculated to be greater than an amount that is the actuarial equivalent of the retirement benefit under the normal guaranteed retirement benefit payable as a life annuity that ceases on the date of the member's death or, if later, the member's Social Security age of eligibility, then the increased retirement benefit shall be limited to such actuarial equivalent and there will be no retirement benefit payable after the age of Social Security eligibility. (In no event shall fewer than sixty (60) payments be made.) For purposes of this section, the retirement benefit does not include any payments from an ASA or RSA.

(1) Multiply the member's Social Security estimate for benefits to be received at sixty-two (62) years of age and actuarial factors established by INPRS' actuary, and obtain a product.

(2) Add the amount of the member's pension as calculated in IC 5-10.2-4-4 and IC 5-10.2-4-5 to the product obtained in subdivision (1). For purposes of this section, the retirement benefit does not include any payments from an ASA or RSA.

(d) A member's monthly pension benefit with Social Security integration at sixty-two (62) years of age shall be computed as follows:

(1) Multiply the member's Social Security estimate for benefits to be received at sixty-two (62) years of age and actuarial factors established by INPRS' actuary, and obtain a product.

(2) Subtract the product obtained in subdivision (1) from the member's pre-sixty-two (62) monthly pension benefit with Social Security integration as calculated in subsection (c).

(e) Members may select any nonconflicting retirement option in addition to Social Security integration.

(f) If a retired member receiving benefits under this option dies before sixty-two (62) years of age, and a benefit is due to a survivor beneficiary under a joint and survivor option, the survivor benefit will be recalculated and adjusted as described in subsection (d) and in accord with the survivor option when the member would have reached sixty-two (62) years of age.

(g) Under IC 33-38-8-14, a judge's retirement benefit is calculated upon the date the member applies to receive a retirement benefit. As used in IC 33-38-8-14, "applies to receive a retirement benefit" is defined as the date upon which INPRS receives and accepts a member retirement application.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-1; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1081; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Nov 21, 2008: 20090107-IR-035080955ONA; adopted Feb 19, 2010: 20100310-IR-035100124ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted Nov 4, 2016: 20161116-IR-035160500ONA; adopted Feb 22, 2019: 20190227-IR-035190137ONA)

35 IAC 1.2-5-1.2 35 IAC 1.2-5-1.2 Retirement benefit commencement without employer separation

35 IAC 1.2-5-1.2 Retirement benefit commencement without employer separation

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-4-1; IC 5-10.3-8-1; IC 5-10.4-5-6

Sec. 1.2. For retirements after the effective date of this rule, in accordance with Section 905 of the Pension Protection Act of 2006, and unless otherwise prohibited by law, a PERF or TRF participant who:

(1) is no longer working in PERF or TRF covered service with an employer;

(2) is actively working with the same employer; and

(3) is working in a non-PERF or non-TRF covered position;

is entitled to retire from PERF or TRF and begin receiving retirement benefits if the participant is otherwise eligible for retirement and the participant has reached normal retirement age, as defined in 35 IAC 1.2-1-4. For example, Steve is sixty-two (62) years of age and has fifteen (15) years of PERF service as a state of Indiana employee. Steve is elected as a judge eligible for service in the judges' retirement system (JRS). Steve terminates his previous state of Indiana PERF covered employment and immediately begins serving as a judge participating in the JRS. Since Steve is age and service eligible for a PERF benefit, has attained normal retirement age, and has terminated his PERF covered position, he is eligible to begin receiving PERF retirement benefits even though Steve did not separate from state employment.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-1.2; adopted Mar 6, 2015: 20150318-IR-035150060ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA)

35 IAC 1.2-5-1.3 35 IAC 1.2-5-1.3 Suspension and withdrawal of DC without employer separation

35 IAC 1.2-5-1.3 Suspension and withdrawal of DC without employer separation

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-3-5; IC 5-10.2-3-6.5

Sec. 1.3. (a) "Terminated employment with the applicable fund" for purposes of this section only means that a person is no longer serving in a covered position for the applicable fund with any employer and has reached fifty-nine and one-half (59 1/2) years of age.

(b) In accordance with Section 905 of the Pension Protection Act of 2006, IC 5-10.2-3-5, and IC 5-10.2-3-6.5, and unless otherwise prohibited by law, a PERF or TRF member who is no longer working in covered service with an employer but remains employed with the same employer may suspend and withdraw in a lump sum or a partial distribution the amounts in the member's defined contribution (DC) account, formerly referred to as an annuity savings account (ASA), if the member is at least fifty-nine and one-half (59 1/2) years of age at the time the member applies for the withdrawal.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-1.3; adopted Mar 6, 2015: 20150318-IR-035150060ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted Sep 14, 2018: 20180919-IR-035180399ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA; adopted May 7, 2021: 20210519-IR-035210173ONA)

35 IAC 1.2-5-1.4 35 IAC 1.2-5-1.4 Election, appointment to elected position, or service in other position not covered by PERF or TRF

35 IAC 1.2-5-1.4 Election, appointment to elected position, or service in other position not covered by PERF or TRF

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-4-8.2; IC 5-10.3; IC 5-10.4

Sec. 1.4. A PERF or TRF member who is a state elected official or who is a person appointed to a state elected position in a position not covered by PERF or TRF, and otherwise meets the criteria set forth in IC 5-10.2-4-8.2 may make an election to begin receiving PERF or TRF benefits while holding the position in accordance with and pursuant to IC 5-10.2-4-8.2. For example, Judge Smith worked as a deputy attorney general in a PERF covered position for twenty (20) years. He was elected as a superior court judge and immediately left his PERF covered position to serve as a judge and is participating in the judges' retirement system. While serving as a judge, he may make the election to begin receiving his PERF retirement benefit if he meets the requirements of IC 5-10.2-4-8.2.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-1.4; adopted Mar 6, 2015: 20150318-IR-035150060ONA)

35 IAC 1.2-5-1.5 35 IAC 1.2-5-1.5 Distribution options

35 IAC 1.2-5-1.5 Distribution options

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-3-6.5

Sec. 1.5. (a) A partial distribution means any distribution from a member's defined contribution account that is less than one hundred percent (100%) of the member's balance.

(b) A member may elect a partial or full distribution of the member's defined contribution account (ASA) consistent with IC 5-10.2-3-6.5 and 35 IAC 1.2-6-6.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-1.5; adopted Sep 14, 2018: 20180919-IR-035180399ONA; adopted Jun 26, 2020: 20200708-IR-035200360ONA)

35 IAC 1.2-5-1.6 35 IAC 1.2-5-1.6 Social Security integration; benefit calculation

35 IAC 1.2-5-1.6 Social Security integration; benefit calculation

Authority: IC 5-10.2-3-6; IC 5-10.5-4-2

Affected: IC 5-10.2-4-4; IC 5-10.2-4-5; IC 5-10.2-4-7

Sec. 1.6. (a) Pursuant to IC 5-10.2-4-7(b)(3), a member who retires between fifty (50) years of age and sixty-two (62) years of age may integrate the member's monthly pension benefit with the member's estimated Social Security benefits. This option increases the monthly pension benefit amount for which the member would ordinarily be eligible from the date of retirement until sixty-two (62) years of age. When the member reaches sixty-two (62) years of age, the member's monthly pension benefit will be reduced. Such reduction will occur whether or not the member applies for Social Security Administration benefits.

(b) To receive an estimate of the member's monthly pension benefit with Social Security integration, the member shall obtain an estimate of Social Security benefits to be received at sixty-two (62) years of age from the Social Security Administration and provide the estimate to INPRS.

(1) Multiply the member's Social Security estimate for benefits to be received at sixty-two (62) years of age and actuarial factors established by INPRS' actuary, and obtain a product.

(d) A member's monthly pension benefit with Social Security integration at sixty-two (62) years of age shall be computed as follows:

(1) Multiply the member's Social Security estimate for benefits to be received at sixty-two (62) years of age and actuarial factors established by INPRS' actuary, and obtain a product.

(2) Subtract the product obtained in subdivision (1) from the member's pre-sixty-two (62) monthly pension benefit with Social Security integration as calculated in subsection (c).

(e) For members who retire with at least ten (10) years creditable service, notwithstanding subsections (c) and (d) of this rule, the payments made before a member reaches sixty-two (62) years of age and after a member reaches sixty-two (62) years of age may not be less than one hundred eighty dollars ($180).

(f) If a retired member dies before reaching sixty-two (62) years of age with a designated survivor beneficiary, the beneficiary's benefit will be recalculated and adjusted as described in subsection (d) and in accord with the survivor option chosen at the time of the member's retirement.

(g) The amount of the member's Social Security benefits is not affected by the member's election of Social Security integration.

(h) For postretirement increases granted after July 1, 2021, as a percentage of a person's retirement benefit, the amount attributable to postretirement increases will be granted in accordance with the amount of benefit the member is receiving at the time the postretirement increase is granted. The postretirement increase shall be also be adjusted according to the amount of benefit the member receives at sixty-two (62) years of age. For example, if Rachel retires and receives one thousand dollars ($1,000) per month in 2020 before she has reached sixty-two (62) years of age under the Social Security implementation option and a postretirement increase is granted in amount equal to two percent (2%) of the pension benefit in 2021, she will receive a one thousand dollar ($1,000) pension amount and a twenty dollar ($20) postretirement increase. In 2022, Rachel reaches sixty-two (62) years of age and her pension benefit reduces to two hundred dollars ($200) based on her Social Security integration selection. At that time, the 2021 postretirement increase of 2% will be calculated based Rachel's two hundred dollar ($200) post age sixty-two (62) pension amount. Thus, after Rachel reaches age sixty-two (62), she will receive a two hundred dollar ($200) pension benefit and a four dollar ($4) postretirement increase.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-1.6; adopted Feb 23, 2018: 20180307-IR-035180117ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA)

35 IAC 1.2-5-2 35 IAC 1.2-5-2 Disability benefits; eligibility

35 IAC 1.2-5-2 Disability benefits; eligibility

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-4-6; IC 5-10.3

Sec. 2. (a) To be eligible to receive disability benefits, the member must have at least five (5) years of creditable service while receiving a salary or employer provided income protection benefits, or Family and Medical Leave Act leave, or prior to exhaustion of all worker's compensation benefits.

(b) Except as otherwise provided in law or this article, the disability benefit is computed using only the years of creditable service worked to the date of disability and without reduction for early retirement. For example, Ann has five (5) years of service credit. Ann's Social Security Administration (SSA) disability onset date relates back to the end of her fourth year of service. Ann is eligible to receive disability benefits because she has at least five (5) years of creditable service, but only four (4) years of service credit is used to calculate the benefit.

(c) To be eligible to receive disability benefits, the member must be receiving salary, worker's compensation benefits, employer-provided income protection benefits, or on leave under the Family and Medical Leave Act on the date the Social Security Administration determines the member becomes disabled.

(d) For the purpose of IC 5-10.2-4-6(a) and this rule, "while receiving a salary" includes:

(1) the last check date for a member, but does not include any checks or compensation received later than thirty (30) days from the last day the member was paid for physical work, for used sick time, for used compensatory time, or while on other leave or vacation; or

(2) when there is a nexus between the member's secession of covered service and the illness or injury resulting in the disability, but not more than thirty (30) days has elapsed between the employment termination date and the SSA disability onset date. INPRS in its sole discretion will determine whether a nexus exists between the disability and the termination of covered service. Example one: Donna becomes ill while in service in a covered position and exhausts all leaves and terminates employment due to the illness on July 1. Because of this illness, Donna received a SSA disability onset of July 28 of the same year. Donna meets the "while receiving a salary" definition because there was nexus between the illness and her employment and the onset date is within thirty (30) days of termination. Example two: Mary terminated covered service on July 1 and was paid her final compensation on July 15; on July 28 Mary is involved in an automobile accident while on vacation causing a disability. Mary does not meet the requirement for disability benefits because there is no nexus between the cause of the disability and work and she was not otherwise receiving salary or on leave.

(e) A member may continue to receive PERF disability benefits so long as the member is entitled to receive Social Security benefits, including periods of trial employment or rehabilitation under Social Security guidelines. However, during any such period, no service credit under PERF shall be granted.

(f) A member, including a state employee receiving state sponsored long-term disability benefits, may not receive a distribution of his or her ASA until the member separates from covered service or the Social Security Administration determines that the member has become disabled and the member has applied for disability benefits.

(g) A member who is receiving a disability retirement shall be automatically converted to regular retirement benefits upon reaching age and service eligibility. Unless otherwise prohibited by law, service credit earned or awarded during the period of time the member was receiving PERF disability benefits will be used in the calculation of the retirement benefit.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-2; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1082; filed May 7, 1998, 4:15 p.m.: 21 IR 3326; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Apr 29, 2011: 20110511-IR-035110273ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Apr 26, 2013: 20130508-IR-035130167ONA; adopted Jun 20, 2014: 20140820-IR-035140335ONA; adopted Feb 23, 2018: 20180307-IR-035180117ONA)

35 IAC 1.2-5-3 35 IAC 1.2-5-3 Disability without Social Security eligibility (Repealed)

35 IAC 1.2-5-3 Disability without Social Security eligibility (Repealed)

(Repealed by Board of Trustees of the Indiana Public Retirement System; filed May 7, 1998, 4:15 p.m.: 21 IR 3333)

35 IAC 1.2-5-4 35 IAC 1.2-5-4 Disability alternatives

35 IAC 1.2-5-4 Disability alternatives

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 4. A member who is eligible for early retirement and who has on file with the fund a copy of application to Social Security for Social Security disability benefits may file for early retirement and retain his or her right to disability benefits. Under such circumstances, when the member notifies the fund that he or she qualifies for Social Security disability benefits, early retirement benefits shall cease and disability benefits shall begin.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-4; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1082; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Jun 20, 2014: 20140820-IR-035140335ONA; adopted Feb 22, 2019: 20190227-IR-035190137ONA)

35 IAC 1.2-5-4.1 35 IAC 1.2-5-4.1 "State long-term disability benefits" defined

35 IAC 1.2-5-4.1 "State long-term disability benefits" defined

Authority: IC 5-10.5-4-2

Affected: IC 5-10-8-7; IC 5-10.2-4-6

Sec. 4.1. "State long-term disability benefits" means any benefit paid to a member who is a state employee under a disability plan established under IC 5-10-8-7.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-4.1; adopted Dec 14, 2012: 20121226-IR-035120663ONA)

35 IAC 1.2-5-5 35 IAC 1.2-5-5 "Basic salary" or "compensation" defined

35 IAC 1.2-5-5 "Basic salary" or "compensation" defined

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-4-3; IC 5-10.3-7-11

Sec. 5. (a) Subject to subsections (b) and (c), "basic salary" or "compensation" means all compensation included as gross income and paid to the employee, as reported on the member's W-2, for covered service by a covered employer, plus the amounts stated in IC 5-10.2-4-3 that are not paid directly to the member. Subject to the limitations described in subsection (b), compensation includes, but is not limited to, vacation pay, sick pay, and employee bonuses. Certain fringe benefits, as defined in Internal Revenue Code Section 132(a), are not included in gross income.

(b) Compensation of not more than two thousand dollars ($2,000) pursuant to and in accordance with IC 5-10.2-4-3(e) (in contemplation of retirement) may be used in the total annual compensation from which the average of the annual compensation is determined. This includes, but is not limited to, retirement bonuses, commutation of unused sick or personal leave, and payments made under the retiree leave conversion program (RLCP) as set forth in 31 IAC 5-10.

(c) "Basic salary" does not include investment incentive bonus compensation paid under an investment incentive bonus plan or executive director incentive bonus plan established by the INPRS board, and no contributions are to be paid on such compensation.

(d) A member's basic salary or annual compensation must be certified by an official of the employing unit who has knowledge of and access to the records as set forth in IC 5-10.3-7-11. A member may not certify his or her basic salary or annual compensation.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-5; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1082; readopted filed Dec 2, 2001, 12:35 p.m.: 25 IR 1265; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Nov 19, 2010: 20101208-IR-035100722ONA; adopted Sep 14, 2012: 20120926-IR-035120542ONA; adopted Nov 4, 2016: 20161116-IR-035160500ONA; errata filed Jan 16, 2018, 3:12 p.m.: 20180124-IR-035180061ACA)

35 IAC 1.2-5-6 35 IAC 1.2-5-6 Reemployment (Repealed)

35 IAC 1.2-5-6 Reemployment (Repealed)

(Repealed by Board of Trustees of the Indiana Public Retirement System; adopted Nov 21, 2008: 20090107-IR-035080955ONA)

35 IAC 1.2-5-7 35 IAC 1.2-5-7 Service for disability and survivor benefits

35 IAC 1.2-5-7 Service for disability and survivor benefits

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 7. "In service" means that the member was in an employer-employee relationship as determined by the employer within established rules of the employer. Benefits for disability shall be paid the first of a month following the onset of disability as determined by the Social Security Administration upon receipt and processing of the application for disability by INPRS. For example, Mary has been determined to be disabled by the Social Security Administration. Mary is receiving employer provided disability insurance payments. Mary's disability benefits will not commence until she files for a PERF disability benefit with INPRS and the application is processed. However, Mary's disability for retirement benefits will be paid back to the month following the onset of disability as determined by the Social Security Administration. In determining whether a member has achieved eligibility for disability benefits, periods of leave under the Family and Medical Leave Act (as defined in 35 IAC 1.2-3-5) and periods whereby the member was receiving salary, worker's compensation benefits, or employer-provided income protection benefits shall be included.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-7; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1082; filed May 7, 1998, 4:15 p.m.: 21 IR 3327; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Apr 26, 2013: 20130508-IR-035130167ONA; adopted Jun 20, 2014: 20140820-IR-035140335ONA)

35 IAC 1.2-5-8 35 IAC 1.2-5-8 Combined service in teachers' and public employees' retirement funds

35 IAC 1.2-5-8 Combined service in teachers' and public employees' retirement funds

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 8. Creditable service in the Indiana state teachers retirement fund and PERF may be combined to meet the five (5) year eligibility requirements for disability benefits.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-8; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1082; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-5-9 35 IAC 1.2-5-9 Survivor benefits and defined contribution account beneficiaries

35 IAC 1.2-5-9 Survivor benefits and defined contribution account beneficiaries

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-3-7.5; IC 5-10.2-4-5; IC 5-10.3

Sec. 9. (a) If the total amount of payments from a defined contribution account paid to a designated beneficiary does not exceed the member's total defined contribution account balance, the difference shall be paid to the designated beneficiary's estate.

(b) If an active member with more than fourteen (14), but less than fifteen (15), years of creditable service dies after December 31, 2006, and before July 1, 2018, the surviving spouse or dependent is entitled to a benefit if:

(1) the member was at least sixty-five (65) years of age at the time of death;

(2) the member died in service in a PERF-covered position; and

(3) the surviving spouse or dependent qualifies for a benefit.

(c) As provided in IC 5-10.2-3-7.5, if an active member dies after June 30, 2018, regardless of whether the member dies in service in a covered position or the member dies out of service, the surviving spouse or dependent is entitled to a benefit, if the member had at least ten (10) years creditable service. The benefits shall be payable to the surviving qualifying surviving spouse or dependent(s) immediately after the member's death. The benefit shall be calculated according to the provisions of IC 5-10.2-4-5 and shall use the latter of:

(1) fifty (50) years of age; or

(2) the member's actual date of death.

All beneficiaries and benefits paid under this subsection must meet the requirements set forth in IC 5-10.2-3-7.5.

(d) For the purposes of IC 5-10.2-3-7.5, "survivor benefit" means the pension benefit and does not include the member's defined contribution account.

(e) If a member did not designate a beneficiary of the defined contribution account or the designated beneficiary does not survive the member, a spouse or dependent entitled to a survivor benefit may elect to receive the balance of the account.

(f) The following apply if no valid claim for the account balance is made within three (3) years of INPRS learning of the member's death:

(1) Accounts with balances of at least one thousand dollars ($1,000) will continue to be invested according to the deceased member's direction.

(2) Accounts with balances of less than one thousand dollars ($1,000) are subject to an automatic lump sum distribution.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-9; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1083; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Feb 19, 2010: 20100310-IR-035100124ONA; adopted Nov 4, 2016: 20161116-IR-035160500ONA; adopted Jun 23, 2017: 20170705-IR-035170307ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA)

35 IAC 1.2-5-9.1 35 IAC 1.2-5-9.1 Death in service; compliance with the Heroes Earning Assistance and Relief Tax Act of 2008 (HEART)

35 IAC 1.2-5-9.1 Death in service; compliance with the Heroes Earning Assistance and Relief Tax Act of 2008 (HEART)

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 9.1. (a) Effective with respect to deaths occurring on or after January 1, 2007, while a member is performing qualified military service (as defined in Chapter 43 of Title 38, United States Code), to the extent required by Section 401(a)(37) of the Internal Revenue Code, survivors of a member in the retirement system are entitled to any additional benefits that the system would provide if the member had resumed employment and then died, such as accelerated vesting or survivor benefits that are contingent on the member's death while employed.

(b) Effective with respect to deaths or disabilities occurring on or after January 1, 2007, while a member is performing qualified military service (as defined in Chapter 43 of Title 38, United States Code), to the extent permitted by Section 414(u)(9) of the Internal Revenue Code, for benefit accrual purposes, the member will be treated as having returned to employment on the day before the death or disability and then terminated on the date of death or disability. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.

(c) Beginning January 1, 2009, to the extent required by Sections 3401(h) and 414(u)(12) of the Internal Revenue Code, an individual receiving differential wage payments (while the individual is performing qualified military service (as defined in Chapter 43 of Title 38, United States Code)) from an employer shall be treated as employed by that employer and the differential wage payment shall be treated as earned compensation. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-9.1; adopted Nov 20, 2009: 20091209-IR-035090927ONA; adopted Apr 29, 2011: 20110511-IR-035110273ONA; adopted Apr 26, 2013: 20130508-IR-035130167ONA)

35 IAC 1.2-5-10 35 IAC 1.2-5-10 Designated dependent beneficiary

35 IAC 1.2-5-10 Designated dependent beneficiary

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-3-7.5; IC 5-10.2-3-7.6; IC 5-10.3

Sec. 10. If member was married for less than two (2) years at the time of his death, the surviving spouse may qualify for monthly benefits as a "designated dependent beneficiary" if the spouse can prove dependency under Social Security guidelines and was so designated for at least six (6) months.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-10; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1083; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Sep 16, 2011: 20110928-IR-035110563ONA)

35 IAC 1.2-5-11 35 IAC 1.2-5-11 Benefits payable upon death

35 IAC 1.2-5-11 Benefits payable upon death

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 11. In any instance where retirement or disability benefits cease upon the death of the payee, if the payee was alive on the first day of the month a benefit will be paid for such month.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-11; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1083; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-5-12 35 IAC 1.2-5-12 Minimum disability retirement benefit

35 IAC 1.2-5-12 Minimum disability retirement benefit

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-4

Sec. 12. (a) After June 30, 2008, if the member chooses a pension benefit under IC 5-10.2-4-7(b), the minimum disability benefit payable may not be less than one hundred eighty dollars ($180). If the benefit is payable before July 1, 2008, the minimum monthly disability benefit will be no less than the actuarial equivalent of one hundred dollars ($100).

(b) After December 31, 2008, under IC 5-10.2-4-6, the minimum benefit provided by employer contributions to a retired member with at least ten (10) years creditable service not earned only as an elected official may not be less than one hundred eighty dollars ($180).

(c) Notwithstanding subsection (a), after October 1, 2015, for purposes of this section, the minimum disability benefit amount does not include any payments from the ASA or RSA.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-12; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1083; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Nov 21, 2008: 20090107-IR-035080955ONA; adopted Jun 20, 2014: 20140820-IR-035140335ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA)

35 IAC 1.2-5-12.1 35 IAC 1.2-5-12.1 De minimis accounts (Repealed)

35 IAC 1.2-5-12.1 De minimis accounts (Repealed)

(Repealed by Board of Trustees of the Indiana Public Retirement System; adopted Jun 23, 2017: 20170705-IR-035170307ONA)

35 IAC 1.2-5-12.2 35 IAC 1.2-5-12.2 De minimis overpayments

35 IAC 1.2-5-12.2 De minimis overpayments

Authority: IC 5-10.2-2-1; IC 5-10.5-4-2

Affected: IC 5-10.2-3-6

Sec. 12.2. If an active, inactive, retired, retired for disability, suspended, or deceased member's ASA account is below the de minimis amount as determined within section 12.5 of this rule, PERF may elect to not collect the overpayment from the member.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-12.2; adopted Dec 17, 2010: 20101229-IR-035100777ONA; adopted Feb 22, 2019: 20190227-IR-035190137ONA)

35 IAC 1.2-5-12.3 35 IAC 1.2-5-12.3 Unclaimed ASA assets within dormant accounts

35 IAC 1.2-5-12.3 Unclaimed ASA assets within dormant accounts

Authority: IC 5-10.2-2-1; IC 5-10.5-4-2

Affected: IC 5-10.2-3-6; IC 5-10.3-12-26

Sec. 12.3. If a former member of the fund is active only in the plan, the member's fund account is considered an active, nondormant account.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-12.3; adopted Sep 11, 2015: 20150923-IR-035150302ONA)

35 IAC 1.2-5-12.4 35 IAC 1.2-5-12.4 Minimum defined benefit payable after December 31, 2008

35 IAC 1.2-5-12.4 Minimum defined benefit payable after December 31, 2008

Authority: IC 5-10.2-2-1; IC 5-10.5-4-2

Affected: IC 5-10.2-5-43

Sec. 12.4. For the purposes of the minimum benefit described in IC 5-10.2-5-43, payments from an ASA or RSA shall not be included in the calculation of minimum benefit eligibility.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-12.4; adopted Sep 11, 2015: 20150923-IR-035150302ONA)

35 IAC 1.2-5-12.5 35 IAC 1.2-5-12.5 "De minimis account" and "de minimis overpayment" defined

35 IAC 1.2-5-12.5 "De minimis account" and "de minimis overpayment" defined

Authority: IC 5-10.2-2-1; IC 5-10.5-4-2

Affected: IC 5-10.2-3; IC 5-10.4-4

Sec. 12.5. (a) "De minimis account" or "de minimis amount" means an inactive, retired, retired for disability, suspended, or deceased member's ASA account whereby no regular and continuing contributions are being received, and the account has a balance of which the value is less than the actual cost of making a distribution of the balance to the member or the member's beneficiary. The account will be closed once there are insufficient assets to pay the administration costs of the account.

(b) "De minimis overpayment" means an active, inactive, retired, retired for disability, suspended, or deceased member's ASA account that received an overpayment totaling not more than two hundred fifty dollars ($250).

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-12.5; adopted Feb 22, 2019: 20190227-IR-035190137ONA; adopted Oct 28, 2022: 20221116-IR-035220338ONA)

35 IAC 1.2-5-12.6 35 IAC 1.2-5-12.6 De minimis accounts

35 IAC 1.2-5-12.6 De minimis accounts

Authority: IC 5-10.2-2-1; IC 5-10.5-4-2

Affected: IC 5-10.2-3-6; IC 5-10.4-4

Sec. 12.6. (a) If after suspension, retirement, retirement for disability, death withdrawal, or other withdrawal, an inactive member's ASA account balance is below the de minimis amount as such amount is determined by PERF, PERF may close the member's account and credit the residual amount to the fund without further notice.

(b) A member or the member's beneficiary may claim the amount credited to the fund and the account may be adjusted for gains, losses, or interest earnings unless otherwise limited by statute by petitioning PERF in writing.

(c) If the credited amount is from a suspended member's account, no gains or earnings shall be credited to the member's account in accordance with IC 5-10.2-3-6.

(d) After January 1, 2018, de minimis accounts will be closed when there are insufficient assets to pay for the administrative costs of the account.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-12.6; adopted Feb 22, 2019: 20190227-IR-035190137ONA)

35 IAC 1.2-5-13 35 IAC 1.2-5-13 Beneficiary designation

35 IAC 1.2-5-13 Beneficiary designation

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 13. (a) "Designated beneficiary" means the person or entity designated by the member on a form approved by INPRS and part of the member's record as of the member's date of death. Beneficiary designations made electronically, via INPRS' website, are deemed to have met the requirements of this subsection.

(b) Members may designate more than one (1) primary beneficiary to receive the balance of their defined contribution account (ASA or RSA). Members may also designate more than one (1) contingent beneficiary.

(1) one (1) or more persons;

(2) the member's estate; or

(3) a trust.

(d) If multiple persons are designated the following shall apply:

(1) The member shall indicate the percentage in whole numbers (no decimals or fractions) of total benefits each person is to receive.

(2) If percentages are not indicated or not indicated in whole numbers, payments will be disbursed as nearly equally to the named beneficiaries with the first designated beneficiary listed receiving an additional percentage amount in order to distribute in whole percentages. For example: Mona has fifty thousand dollars ($50,000) in her ASA (defined contribution account) when she dies. Mona designated three (3) primary beneficiaries without assigning a whole percentage number of the total benefit for each to receive. The first listed beneficiary would receive thirty-four percent (34%) and the remaining two (2) beneficiaries would receive thirty-three percent (33%) each.

(3) If percentages indicated do not total one hundred percent (100%), each beneficiary shall receive an increased or decreased percentage, which is proportional to the percentages allotted him or her by the member.

(4) Subject to subdivision (2), if any of the multiple beneficiaries die prior to the member's death, the remaining beneficiaries shall be entitled to the deceased beneficiary's percentage of the total benefits, and each shall receive a percentage of the deceased's share which is nearly equal to the percentage allotted them by the member.

(5) So long as a primary beneficiary survives the member, a designated contingent beneficiary is not entitled to a share of the benefit unless the primary beneficiary disclaims the benefit.

(6) INPRS shall not accept per stirpes beneficiary designations.

(e) The primary and contingent beneficiary designation established by the member shall remain in full force and effect until changed by the member. Beneficiary designations made on a member's retirement application supersede the designation of all previous beneficiaries, unless the notification of retirement is withdrawn, invalid, or voided.

(f) Upon receipt of evidence the primary beneficiary did not survive the member, the contingent beneficiary is eligible to receive the member's defined contribution account.

(g) A member's RSA shall be combined and distributed according to the member's beneficiary designation for the defined contribution account (ASA). A defined contribution account and RSA may not have separate beneficiaries.

(h) The designated beneficiary's right to a benefit vests upon the death of the member in the designated beneficiary on file with the fund. A change of beneficiary designation must be made in a manner and form approved by the board and must be filed with the fund before the time of death of the member. A change of beneficiary designation received after the time of death of the member is not valid. A written beneficiary designation for the ASA or RSA must be signed by the member. Timely electronic beneficiary designations submitted through the fund's website in a form and manner approved by the board shall be deemed to have met the requirements of this rule.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-13; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1083; readopted filed Dec 2, 2001, 12:35 p.m.: 25 IR 1266; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Jun 11, 2010: 20100728-IR-035100467ONA; adopted Apr 29, 2011: 20110511-IR-035110273ONA; adopted Feb 17, 2012: 20120222-IR-035120095ONA; adopted Apr 26, 2013: 20130508-IR-035130167ONA; adopted Jun 23, 2017: 20170705-IR-035170307ONA; adopted Sep 14, 2018: 20180919-IR-035180399ONA)

35 IAC 1.2-5-13.1 35 IAC 1.2-5-13.1 Changes to survivor beneficiary designation or form of benefit

35 IAC 1.2-5-13.1 Changes to survivor beneficiary designation or form of benefit

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-4-7; IC 5-10.2-4-7.2; IC 5-10.3

Sec. 13.1. (a) Eligible retired members may change their designated survivor beneficiary or form of benefit pursuant to IC 5-10.2-4-7.2 and this rule.

(b) A designated change to a survivor beneficiary or form of benefit is effective when the change application is received and verified by the fund, and any resulting adjustment to the form or amount of benefit shall be paid prospectively from the first of a month following the date the change application is received and verified by the fund. For example, Gill's designated survivor predeceases him on July 1. Gill applies to remove his designated beneficiary and change his form of benefit to straight life with no survivor beneficiary on December 1. Gill's recalculated benefit will be paid beginning on the first of a month following receipt and verification of the change application. There are no retroactive payments to or reductions to Gill's benefit relating back to the date of death of his original survivor.

(c) If a retiree makes an election to change the designated survivor or form of benefit, the retiree's benefit will be actuarially recalculated using all factors including annuity interest in effect at the time INPRS receives the member's election form.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-13.1; adopted Mar 6, 2015: 20150318-IR-035150060ONA)

35 IAC 1.2-5-14 35 IAC 1.2-5-14 Five year guaranteed benefits

35 IAC 1.2-5-14 Five year guaranteed benefits

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 14. If member elects five (5) year guaranteed benefits and does not live to exhaust them and his beneficiary does not live out the remainder of the five (5) years, then such remaining benefits accrue to the estate of the beneficiary and not to the estate of the member.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-14; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1084; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-5-15 35 IAC 1.2-5-15 No guarantee option

35 IAC 1.2-5-15 No guarantee option

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 15. Under the no guarantee option, if the member dies prior to the first day of the month that benefits are scheduled to begin, the account reverts to an active status and the beneficiary receives the account as though the member had died in active service.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-15; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1084; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-5-16 35 IAC 1.2-5-16 Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF)

35 IAC 1.2-5-16 Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF)

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 16. Former PERF members who have transferred to the teachers insurance and annuity association-college retirement equities fund are not eligible for PERF disability benefits which are limited to PERF members in active service.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-16; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1084; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-5-17 35 IAC 1.2-5-17 Birth date and date of death; proof required

35 IAC 1.2-5-17 Birth date and date of death; proof required

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3; IC 34-28-1

Sec. 17. (a) No retirement benefits shall be paid to a member until the member provides proof of date of birth in any one (1) of the following forms:

(1) A birth certificate or registration from the public health department or other governmental entity.

(2) A court decree obtained under IC 34-28-1 and certified by the clerk of the court.

(3) Other evidence relating to the member's date of birth may be submitted, and upon approval the board shall fix a date based thereon.

(b) A member selecting a joint and survivor retirement option shall also provide evidence of the date of birth of the cosurvivor.

(c) INPRS may obtain date of birth and date of death information from the Indiana state department of health or other reasonable sources, as approved by INPRS.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-17; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1084; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Sep 16, 2011: 20110928-IR-035110563ONA; adopted Nov 4, 2016: 20161116-IR-035160500ONA)

35 IAC 1.2-5-18 35 IAC 1.2-5-18 Minors and other incompetent persons

35 IAC 1.2-5-18 Minors and other incompetent persons

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3; IC 29-3

Sec. 18. Minors and other incompetent beneficiaries are governed by Indiana guardianship law set forth in IC 29-3, Indiana Probate Code. However, payments may be made to minor beneficiaries pursuant to the Uniform Transfers to Minors Act.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-18; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1084; readopted filed Dec 2, 2001, 12:35 p.m.: 25 IR 1266; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-5-19 35 IAC 1.2-5-19 Proration of retirement costs

35 IAC 1.2-5-19 Proration of retirement costs

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 19. (a) A member with service credit from more than one (1) employer shall have his retirement reserve cost prorated based on months of service among all his or her employers.

(b) Any employer may object to this basis of proration by written objection made within fifteen (15) days from receipt by the employer of notification of each such proration.

(c) The fund may, if evidence of substantial inequity is presented by such objecting employer, use the following basis for reaching a result.

(d) The annual compensation for each calendar year or part thereof shall be divided by the annual average consumer price index figure (1967 = $100) of the U.S. Bureau of Labor Statistics for each such year to determine a weighted salary for each year or part thereof.

(e) The fund shall prorate retirement reserve costs to participating employers on the basis of the weighted salary each has paid, or such other method that, in the judgment of the fund, equitably allocates the retirement reserve cost between the member's employers.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-19; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1084; readopted filed Dec 2, 2001, 12:35 p.m.: 25 IR 1266; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-5-20 35 IAC 1.2-5-20 Early retirement reduction of benefits

35 IAC 1.2-5-20 Early retirement reduction of benefits

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 20. When computing the age for determining the reduction percentage for early retirement, any fractions of a month shall not count.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-20; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1085; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-5-21 35 IAC 1.2-5-21 ASA valuation

35 IAC 1.2-5-21 ASA valuation

Authority: IC 5-10.2-2-1; IC 5-10.2-2-3; IC 5-10.5-4-2

Affected: IC 5-10.2-3; IC 5-10.2-4

Sec. 21. (a) A member may direct an allocation in the amount credited to the member among the stable value fund and any of the available alternative investment programs subject to the following conditions:

(1) INPRS shall allow a member to make a change or selection at least once a day.

(2) INPRS shall implement the member's selection the same day the selection is received by INPRS unless such selection is received after 4:00 p.m. EST on a business day, or anytime on a weekend or holiday, or any other date the New York Stock Exchange is closed, then INPRS shall implement the member's selection beginning the next business day after the selection is received. This date is the effective date of the member's selection.

(3) A member may select any combination of the stable value fund or any of the available alternative investment programs in one percent (1%) increments.

(4) A member's selection remains in effect until a new selection is made.

(5) On the effective date of a member's selection, INPRS shall reallocate the member's existing balance or balances in accordance with the member's direction, based on the sum of the market value on the effective date, minus any applicable fees.

(b) When a member who participates in the alternative or stable value investment programs transfers the amount credited to the member from one (1) investment program to another investment program, the amount credited to the member shall be the sum of the market value of the member's investment, as of the effective date of the member's selection, minus any applicable fees.

(c) Subject to and in accordance with the distribution provisions of IC 5-10.2-3 and IC 5-10.2-4, in the event that the member has designated beneficiaries, beneficiary accounts will be established for each beneficiary and the pro rata share of all monies in the member's ASA will be moved to the respective beneficiary account and invested in the stable value fund under IC 5-10.2-3.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-21; adopted Feb 19, 2010: 20100310-IR-035100124ONA; adopted Sep 16, 2011: 20110928-IR-035110563ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Mar 6, 2015: 20150318-IR-035150060ONA; adopted Nov 4, 2016: 20161116-IR-035160500ONA; adopted Jun 23, 2017: 20170705-IR-035170307ONA)

35 IAC 1.2-5-22 35 IAC 1.2-5-22 Unclaimed ASA assets within dormant accounts (Repealed)

35 IAC 1.2-5-22 Unclaimed ASA assets within dormant accounts (Repealed)

(Repealed by Board of Trustees of the Indiana Public Retirement System; adopted Jun 23, 2017: 20170705-IR-035170307ONA)

35 IAC 1.2-5-23 35 IAC 1.2-5-23 Stale checks

35 IAC 1.2-5-23 Stale checks

Authority: IC 5-10.2-2-1; IC 5-10.5-4-2

Affected: IC 5-10.2-2-3; IC 5-10.2-3-6; IC 5-10.2-4-2

Sec. 23. A distribution from an annuity savings account is deemed to have occurred as of the date on the distribution check. If the member fails to negotiate the check within one hundred eighty (180) days from issuance, the amount of the check will be transferred to an administrative account within the member's respective defined contribution plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-23; adopted Dec 17, 2010: 20101229-IR-035100777ONA; adopted Jun 23, 2017: 20170705-IR-035170307ONA)

35 IAC 1.2-5-24 35 IAC 1.2-5-24 Physicians appointed for the Judges' Retirement System

35 IAC 1.2-5-24 Physicians appointed for the Judges' Retirement System

Authority: IC 5-10.5-4-2; IC 33-38-8

Affected: IC 33-38-8-15

Sec. 24. For the administration of disability claims under IC 33-38-8-15, a licensed treating physician of the member may be designated by INPRS as a physician appointed by the board of trustees. However such designation shall not entitle the treating physician to remuneration or other compensation paid from INPRS unless there is an express written agreement signed by the parties in advance of any compensable services provided by the treating physician.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-24; adopted Dec 14, 2012: 20121226-IR-035120663ONA)

35 IAC 1.2-5-25 35 IAC 1.2-5-25 Purchase of canceled service credit in the judges' retirement system (Repealed)

35 IAC 1.2-5-25 Purchase of canceled service credit in the judges' retirement system (Repealed)

(Repealed by Board of Trustees of the Indiana Public Retirement System; adopted Sep 10, 2021: 20210915-IR-035210420ONA)

35 IAC 1.2-5-26 35 IAC 1.2-5-26 ASA and RSA annuity interest

35 IAC 1.2-5-26 ASA and RSA annuity interest

Authority: IC 5-10.2-2-1; IC 5-10.2-2-3; IC 5-10.5-4-2

Affected: IC 5-10.2-3; IC 5-10.2-4; IC 5-10.5-4-2.6

Sec. 26. (a) When a member elects to annuitize their ASA or their RSA, the annuitized interest rate will be applied beginning with the date of the distribution of the annuity and the annuity will be calculated prospectively from that date regardless whether the distribution was deferred under IC 5-10.2-4-2(c), there is a retroactive disability payment under IC 5-10.2-4-6, or there is a retroactive benefit payment under IC 5-10.2-4-8.2.

(b) The annuity interest rate is determined by IC 5-10.5-4-2.6 and this rule. Except for as set forth in subsection (c), the annuity interest rate that will be applied is the rate in effect as of the retirement date as determined under IC 5-10.2-4-1.3, the disability retirement date, or the member's retirement date due to an election made under IC 5-10.2-4-8.2.

(c) When a member elects to change their survivor beneficiary or pension option, or both, under IC 5-10.2-4-7.2, the annuity interest rate that will be applied is the rate in effect as of the date INPRS receives the member's election form.

(d) When a member elects to defer receiving, in any form, the member's annuity savings account under IC 5-10.2-4-2(c), the annuity interest rate that will be applied is the rate in effect as of the date INPRS receives the member's postretirement payment of ASA election form. For example, Julia is a seventy-five (75) year old active member with twenty-five (25) years of creditable service. She makes an election under IC 5-10.2-4-8.2 to begin receiving benefits relating back to the date she was first eligible to make the election (five (5) years ago). Julia elects to annuitize her ASA. The annuity is calculated and interest rate is the rate in effect on the date Julia elects as her retirement date. Julia will receive five (5) years of retroactive pension benefits using only twenty (20) years of service credit in the pension calculation. Because Julia's ASA account was actively earning interest, gains, or losses during the five (5) year period before Julia made the election, and the ASA had not been annuitized during this period, the annuitized interest rate will be applied beginning with the actual date of distribution of the annuity.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-26; adopted Apr 26, 2013: 20130508-IR-035130167ONA; adopted Jun 20, 2014: 20140820-IR-035140335ONA; adopted Mar 6, 2015: 20150318-IR-035150060ONA; errata filed Jan 16, 2018, 3:12 p.m.: 20180124-IR-035180061ACA)

35 IAC 1.2-5-27 35 IAC 1.2-5-27 When retirement application deemed received

35 IAC 1.2-5-27 When retirement application deemed received

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-4-1; IC 5-10.3-8-5

Sec. 27. (a) A member who:

(1) receives a service credit or other determination from INPRS that inaccurately states the member's vested status or eligibility to begin receiving retirement or disability benefits; and

(2) relies on that inaccurate information to delay the member's retirement date and the filing of a retirement application;

may be eligible for a retirement date that relates back to the date the member received the inaccurate determination or the date first eligible to begin receiving benefits following the date of the inaccurate determination. INPRS may deem the retirement application received on the date of the inaccurate determination or the date first eligible to begin receiving benefits following the date of the inaccurate determination.

(b) Subsection (a) applies only to members who:

(1) were vested or eligible to begin retirement benefits, as determined by INPRS, at the time of the inaccurate determination; and

(2) request that INPRS grant a retirement date that relates back to the date the member was first eligible for retirement benefits and follows the date of the inaccurate determination.

(c) The member may choose a retirement date that is the first day of the month following the date the application is deemed received.

(d) The inaccurate determination does not have to be in writing if the member can show, to the satisfaction of INPRS, the determination was inaccurate, the member relied on the determination in choosing a retirement date and filing an application, and any other elements necessary to comply with this section.

(e) This rule is administered in accordance with IC 5-10.3-8-5, which addresses claims of errors.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-27; adopted Nov 4, 2016: 20161116-IR-035160500ONA)

35 IAC 1.2-5-28 35 IAC 1.2-5-28 Filing retirement application

35 IAC 1.2-5-28 Filing retirement application

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-4-1.3

Sec. 28. INPRS will not accept a retirement application more than six (6) months in advance of the retirement date.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-28; adopted Nov 4, 2016: 20161116-IR-035160500ONA)

Rule 6

35 IAC 1.2-6-1 35 IAC 1.2-6-1 Employer payments

Rule 6. Miscellaneous

35 IAC 1.2-6-1 Employer payments

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-3-2; IC 5-10.3-7-12.5

Sec. 1. (a) In accordance with and pursuant to IC 5-10.3-7-12.5, the Indiana public retirement system board of trustees herein sets the due date for contributions as seven (7) days after a covered employer's payroll unless otherwise approved by the board. For adjustments to incorrect reports and contributions by the employer, the due date is seven (7) days after the pay period end date of the original wage and contribution report.

(b) Notwithstanding subsection (a), the due date for adjustments to wages and contributions for members returning to covered employment from military service is thirty (30) days after the member is reemployed.

(c) Upon written request of INPRS, covered employers shall submit their payroll date to PERF in a manner or form established by INPRS within seven (7) days of receipt of such request.

(d) Any payments not made on the due date may at INPRS' discretion accrue interest at a rate determined by INPRS.

(e) Any employer who fails to submit required contributions and reports within thirty (30) days of the due date will be subject to a penalty as set forth in IC 5-10.3-7-12.5. If the thirtieth day following the due date falls on a Saturday, Sunday, or legal holiday, the due date becomes the next working day.

(f) An employer who has elected to pick up the mandatory employee contributions of its employees must do so by resolution in accordance with IC 5-10.2-3-2(d). An employer who wants to rescind its election to pick up the mandatory employee contributions must do so in writing with approval of its governing body. The change will be effective the first payroll date following the date INPRS receives and approves the change. For purposes of IC 5-10.3-7-12.5(c), habitually late is defined as failing to submit required contributions, records, or reports for over sixty (60) days after the due date.

(g) An employer deemed habitually late will remain in the habitually late status until it submits reports and contributions for twelve (12) months within seven (7) days of the respective due date and after fulfilling all delinquent reporting and contribution requirements.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-1; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1085; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Feb 19, 2010: 20100310-IR-035100124ONA; adopted Jun 11, 2010: 20100728-IR-035100467ONA; adopted Nov 19, 2010: 20101208-IR-035100722ONA; adopted Apr 29, 2011: 20110511-IR-035110273ONA; adopted Sep 16, 2011: 20110928-IR-035110563ONA; adopted Dec 13, 2013: 20131225-IR-035130565ONA; adopted Mar 6, 2015: 20150318-IR-035150060ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA)

35 IAC 1.2-6-2 35 IAC 1.2-6-2 Admission to the fund

35 IAC 1.2-6-2 Admission to the fund

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3-2-1; IC 5-10.3-6-1

Sec. 2. (a) Admission to the fund by a political subdivision shall be governed by IC 5-10.3-6-1.

(b) In addition, any political subdivision whose existence is subject to termination or whose funding is dependent upon sources external to it must demonstrate to the board's satisfaction that any problems which might arise are fully addressed and resolved or it will not be admitted. The board's consideration and determination will be guided in part by the political subdivision's demonstrated ability to meet all obligations to the fund, both current and ongoing.

(c) A township trustee will not be considered as the governing body of a township for purposes of the fund and the board will not approve any ordinance or resolution coming solely from such township trustees.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-2; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1085; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-6-3 35 IAC 1.2-6-3 Enlargement of PERF coverage (Repealed)

35 IAC 1.2-6-3 Enlargement of PERF coverage (Repealed)

(Repealed by Board of Trustees of the Indiana Public Retirement System; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-6-4 35 IAC 1.2-6-4 Deductions for health insurance and taxes; minimum amount (Repealed)

35 IAC 1.2-6-4 Deductions for health insurance and taxes; minimum amount (Repealed)

(Repealed by Board of Trustees of the Indiana Public Retirement System; adopted Jun 23, 2017: 20170705-IR-035170307ONA)

35 IAC 1.2-6-5 35 IAC 1.2-6-5 Interest on employer's accounts

35 IAC 1.2-6-5 Interest on employer's accounts

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 5. All political subdivisions having a negative year-end account balance may be charged an appropriate interest rate as determined by the fund.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-5; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1085; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-6-5.5 35 IAC 1.2-6-5.5 Adjustments (Repealed)

35 IAC 1.2-6-5.5 Adjustments (Repealed)

(Repealed by Board of Trustees of the Indiana Public Retirement System; adopted Jun 23, 2017: 20170705-IR-035170307ONA)

35 IAC 1.2-6-6 35 IAC 1.2-6-6 Withdrawal of ASA

35 IAC 1.2-6-6 Withdrawal of ASA

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 6. (a) A member who is on an approved leave of absence is not eligible for a withdrawal of his or her annuity savings account unless the reason for the leave is a layoff. In order for a member to receive a distribution of the member's PERF annuity savings account, the member must have terminated the member's employment and be certified by the member's employer as being off the payroll and the date of termination and must meet the terms described in subsection (b) or (c). Employer verification is not required whenever more than one (1) year lapses from the date of the member's separation from employment and contributions to the fund cease. An application for distribution of the member's annuity savings account submitted by the member is an affirmation by the member that the member has separated from employment. Refunds will be made on or after the fifteenth day of the month next following the month of termination, if such termination is on or prior to the fifteenth day of the month and the application for distribution is received prior to the end of the month of termination.

(b) Prior to December 31, 2020, a member may withdraw money from the member's annuity savings account no sooner than thirty (30) days after separation from covered employment and service with the employer. A member who becomes reemployed in a PERF-covered position within thirty (30) days from the date of such termination is not entitled to a distribution from the member's annuity savings account. The effective date of the suspension of membership shall be automatically deferred and the member shall not be eligible for withdrawal of the member's annuity savings account. The member shall notify PERF immediately if the member becomes reemployed within such thirty (30) day period.

(c) After December 31, 2020, a member who has not reached age and service eligibility for normal retirement may withdraw money from the member's annuity savings account no sooner than thirty (30) days after separation from PERF-covered service with the employer.

(d) This applies after December 31, 2020. A member who has reached age and service eligibility for normal retirement may withdraw money from the member's annuity savings account after separation from PERF-covered service from the PERF employer without waiting thirty (30) days after such separation. A member who has reached age and service eligibility for normal retirement may withdraw money from the member's annuity savings account under IC 5-10.2-3-6.5 without separating from service.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-6; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1086; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Dec 17, 2010: 20101229-IR-035100777ONA; adopted Jun 26, 2020: 20200708-IR-035200360ONA)

35 IAC 1.2-6-7 35 IAC 1.2-6-7 Legislators' defined contribution plan loans

35 IAC 1.2-6-7 Legislators' defined contribution plan loans

Authority: IC 2-3.5-5-11; IC 5-10.5-4-2

Affected: IC 2-3.5-5-11

Sec. 7. (a) Any participant in the legislators' defined contribution plan (LEDC) may apply on the applicable form to the fund for a loan from the legislators' defined contribution plan pursuant to this rule and such other procedures as may be established by the fund. Such loans will be available to all such participants on a uniform and nondiscriminatory basis. All loans are subject to the approval of the fund or its designee.

(b) The maximum amount of such loan, when added to the outstanding balance of all other loans from the fund, shall not exceed the lesser of:

(1) fifty thousand dollars ($50,000), reduced by the excess, if any, of the highest outstanding balance of loans from the fund during the one (1) year period ending on the day before the date on which the loan is made, over the outstanding balance of loans from the fund on the date on which such loan is made; or

(2) one-half (1/2) of the employee's accounts within the defined contribution plan of the participant under the fund.

(d) The loan program described in this rule shall be administered by the fund or its designee. All loans shall comply with the following terms and conditions:

(1) All loans shall be subject to applicable Internal Revenue Service regulations and restrictions.

(2) A participant may apply for a loan by completing the applicable forms.

(3) Each loan shall be amortized on a substantially level basis with monthly payments. Payments shall be made no later than the last day of a month for that month. The period of repayment shall be a minimum of twelve (12) months and shall not exceed five (5) years from the loan origination date. Notwithstanding the preceding sentence, the term of the loan shall not extend beyond the earlier of:

(A) in the case of a distribution that begins after the date of the loan to the extent that such distribution completely offsets the balance of the loan, the date such distribution of the employee's accounts within the defined contribution plan of the participant under the fund begins; or

(B) the date of a default on the loan.

(e) The participant receiving the loan shall make the required repayments in accordance with the loan agreement. Payments will be made in a form and manner as prescribed by INPRS. If the participant fails to make a timely loan repayment, the participant may make up any missed repayments before the end of cure period described in subsection (g)(1). INPRS or its designee must receive the payment on or before the last day of the cure period.

(f) The rate of interest shall be the prime rate per annum, as published in The Wall Street Journal on the first day of the quarter (or the earliest publication day of the quarter in the event of a publication holiday) in which a completed loan application is submitted, plus one percent (1%). A loan will carry the same interest rate throughout its term.

(g) The fund shall declare a default on a loan as of:

(1) the last day of the calendar quarter following the calendar quarter in which the participant fails to make a payment, unless the participant pays the amount due plus accrued interest and makes the loan account current with no other outstanding late payments owed prior to such date; or

(2) the date thirty (30) days after the fund in good faith deems the plan insecure with respect to the repayment of the loan and notifies the participant of this deemed insecurity.

(h) On default, the entire amount outstanding on the participant's loan will be due and payable.

(i) On default, the fund shall report to the Internal Revenue Service the outstanding loan balance (principal and interest) as a taxable distribution to the participant, which may also be subject to an additional ten percent (10%) excise tax under the Internal Revenue Code.

(j) A defaulted loan will continue to accrue interest until the loan amount has been repaid even in the event of a deemed distribution. A loan that is deemed distributed continues to accrue interest until it is repaid. The outstanding loan balance is considered only when determining the maximum loan amount available under Internal Revenue Code Section 72(p)(2)(A). Interest accruing on the loan after it is deemed distributed is not required to be repaid.

(k) Each loan shall be adequately secured. The plan shall have a security interest in the employee's accounts within the defined contribution plan of the participant under the fund.

(l) Any loan to a participant shall be considered to be a separate asset of the legislators' defined contribution plan segregated for the benefit of such participant. The interest paid on the loan shall be credited to the employee's accounts within the defined contribution plan of the participant. Such portion of the employee's accounts within the defined contribution plan on loan to the participant shall not share in the allocation of gains or losses. The principal and interest paid on the loan shall be credited to such employee's accounts within the defined contribution plan as determined by the fund.

(m) A participant may not take out any additional loans while the participant has a loan in default.

(n) A participant may not take more than two (2) loans in any calendar year.

(o) A participant may have any number of loans outstanding as long as all of the requirements of this rule are met.

(p) Any loan processing fee charged by a third party will be paid by the participant from the employee's accounts within the defined contribution plan of the participant.

(q) The loan proceeds will come from the employee's accounts within the defined contribution plan of the participant on a pro rata basis, and from the directed investment options of the participant on a pro rata basis.

(r) A member who terminates service covered by the LEDC with an outstanding loan shall repay the loan according to the terms and conditions of the loan agreement, except that any distribution occurring by such termination will first be used to offset the remaining balance of the loan.

(s) The participant may prepay, without penalty, the entire (or any part of the) outstanding principal balance of the loan and accrued interest to date of repayment. Prepayments will be made in a form and manner as prescribed by INPRS. No reamortization will apply.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-7; filed Dec 18, 2001, 9:09 a.m.: 25 IR 1488; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Sep 16, 2011: 20110928-IR-035110563ONA; adopted Nov 4, 2016: 20161116-IR-035160500ONA; adopted Feb 23, 2018: 20180307-IR-035180117ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA)

35 IAC 1.2-6-8 35 IAC 1.2-6-8 Annuity savings account contributions received by PERF subsequent to processing of retirement benefit

35 IAC 1.2-6-8 Annuity savings account contributions received by PERF subsequent to processing of retirement benefit

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-4-2

Sec. 8. (a) Notwithstanding a member's election to receive an annuity provided by the amounts credited to the member's annuity savings account at retirement, annuity savings account contributions totaling not more than one thousand dollars ($1,000) posted to a member's account after the final date on which the member's benefit is processed shall be distributed to the member in a lump-sum payment.

(b) A member may elect to receive annuity savings account contributions exceeding one thousand dollars ($1,000) posted to a member's account after the final date on which the member's benefit is processed in either a lump-sum payment or as a direct rollover.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-8; adopted Dec 21, 2007: 20080109-IR-035080003ONA; adopted Feb 19, 2010: 20100310-IR-035100124ONA; adopted Nov 19, 2010: 20101208-IR-035100722ONA; adopted Jun 20, 2014: 20140820-IR-035140335ONA; adopted Jun 23, 2017: 20170705-IR-035170307ONA)

35 IAC 1.2-6-9 35 IAC 1.2-6-9 Direct deposit of benefits

35 IAC 1.2-6-9 Direct deposit of benefits

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-4

Sec. 9. (a) Direct deposit is the preferred way for members and beneficiaries to receive monthly benefits. A member or beneficiary who does not wish to have payments to the person deposited by direct deposit or another method approved by the board may request a waiver of the requirement of direct deposit or another method approved by the board. The member or beneficiary must:

(1) state the reason for requesting the waiver; and

(2) sign a waiver form.

(b) PERF shall grant the member's or beneficiary's request for a waiver, approval of which shall not be unreasonably denied, if any of the following apply:

(1) The member or beneficiary currently does not have a savings or checking account.

(2) The member or beneficiary is unable to establish a savings or checking account within the geographic area of the home of the member or beneficiary without payment of a service fee. In support of this reason, the member or beneficiary must submit a written statement of the inability to establish the account without the payment of a fee with the waiver request.

(3) The home of the member or beneficiary is too remote to have access to a financial institution where direct deposit or another method approved by the board may be made.

(4) The financial institution of the member or beneficiary is unable to:

(A) accept direct deposit or another method approved by the board; or

(B) process electronic withdrawal.

The member or beneficiary must submit with the waiver a written statement from the financial institution of the member or beneficiary that the financial institution is unable to accept direct deposit or another method approved by the board or process electronic withdrawal.

(5) PERF determines that the facts of the particular case warrant a waiver of the requirement of direct deposit or another method approved by the board. A member or beneficiary who is in pay status as of July 1, 2009, and is receiving monthly benefits in a manner other than direct deposit or another method approved by the board shall not have the monthly benefits stopped for receiving monthly benefits in a manner other than direct deposit or another method approved by the board.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-9; adopted Feb 19, 2010: 20100310-IR-035100124ONA)

35 IAC 1.2-6-10 35 IAC 1.2-6-10 Withholding of payments

35 IAC 1.2-6-10 Withholding of payments

Authority: IC 5-10.5-4-2

Affected: IC 4-21.5; IC 5-10.2; IC 5-10.3

Sec. 10. (a) This rule applies to all trust funds administered by INPRS. Monthly benefit payments to a member, survivor, and beneficiary may be withheld under any of the following circumstances:

(1) To offset the overpayment of benefits to a member, survivor, or beneficiary until the overpayment is repaid to the fund consistent with subsection (c).

(2) Pending investigation after any of the following occur:

(A) Three (3) consecutive monthly benefit checks have not been cashed.

(B) Three (3) consecutive monthly benefit payments have been deposited on a stored value card that has not been activated.

(C) One (1) direct deposit monthly benefit payment has been rejected by the member's, survivor's, or beneficiary's financial institution.

(3) After receiving notification of the death of a member, survivor, or beneficiary.

(b) If INPRS determines that an overpayment of a member's, survivor's, or beneficiary's benefit is to be collected from ongoing monthly benefit payments:

(1) INPRS shall provide not less than sixty (60) days' notice of the existence of an overpayment and INPRS' intent to collect said overpayment from the member, survivor, or beneficiary;

(2) INPRS shall not require an amount greater than:

(A) twenty-five percent (25%) of the total monthly benefit to be withheld; or

(B) ten percent (10%) of the total monthly benefit to be withheld, if the overpayment began prior to July 1, 2015, and the overpayment occurred through no fault of the member, survivor, or beneficiary;

(3) if no agreement on the amount to be withheld can be reached, or sixty (60) days has passed from the issuance of the notice of overpayment, pursuant to the process described in subdivision (1), INPRS shall withhold the amount described in subdivision (2); and

(4) a member, survivor, or beneficiary may request INPRS reduce the amount being withheld from an ongoing monthly benefit due to a financial hardship on a form approved by INPRS. If INPRS determines a hardship exists, INPRS shall grant such requests.

(c) If a member, survivor, or beneficiary receives an overpayment of benefits, the member, survivor, and beneficiary have an obligation to repay the erroneous payments to the fund.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-10; adopted Nov 19, 2010: 20101208-IR-035100722ONA; adopted Sep 10, 2021: 20210915-IR-035210420ONA)

35 IAC 1.2-6-11 35 IAC 1.2-6-11 Disclaimer of interest in benefits

35 IAC 1.2-6-11 Disclaimer of interest in benefits

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3; IC 32-17.5

Sec. 11. (a) A member or beneficiary may disclaim in whole or part an interest in the benefits or assets held by PERF of which the member or beneficiary is otherwise entitled pursuant to the Uniform Disclaimer of Property Act (Act) and in accordance with this rule.

(b) A disclaimer made under the Act is not a transfer, an assignment, or a release.

(c) The disclaimer shall be in writing, titled "Disclaimer", identifying the interest to be disclaimed, and signed by the disclaimant.

(d) Any interest disclaimed in accordance with this rule shall pass as if the disclaimant had died immediately before the time of the distribution and such disclaimer is irrevocable once delivered to PERF.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-11; adopted Sep 16, 2011: 20110928-IR-035110563ONA)

35 IAC 1.2-6-12 35 IAC 1.2-6-12 Withdrawal of political subdivisions and miscellaneous participating entities

35 IAC 1.2-6-12 Withdrawal of political subdivisions and miscellaneous participating entities

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-1-4.3; IC 5-10.3-1-6; IC 5-10.3-6-8; IC 20-24-6-7

Sec. 12. (a) The withdrawal of a political subdivision, as defined in IC 5-10.3-1-6, or miscellaneous participating entity, as defined in IC 5-10.2-1-4.3, is governed by IC 5-10.3-6-8 and this rule.

(b) Whenever a political subdivision or miscellaneous participating entity intends to stop participation in PERF, not as a result of the termination of the political subdivision or miscellaneous participating entity as an entity or as a result of the political subdivision or miscellaneous participating entity selling all their assets, the following process will apply:

(1) The withdrawing political subdivision or miscellaneous participating entity shall notify PERF in writing of its intent to withdraw and stop participating.

(2) The date of the notice shall be the first day of a political subdivision or miscellaneous participating entity's payroll period.

(3) The withdrawing political subdivision or miscellaneous participating entity shall provide the names of current and former employees as of the date the notice was provided.

(4) No further employee or employer contributions shall be made and no further service credit shall accrue from the date of the notice.

(5) INPRS will determine the political subdivision or miscellaneous participating entity liabilities as described in IC 5-10.3-6-8 as of the date of the notice.

(6) The political subdivision or miscellaneous participating entity shall contribute to PERF the amount necessary to pay the liability in a lump sum or amortized over a two (2) year period beginning with the notice date.

(7) Two (2) years after the notice date, if all the requirements of IC 5-10.3-6-8 and this rule have been met, a termination date shall be set by INPRS.

(1) revoke its notice of intent to withdraw after receiving notification of its liabilities;

(2) file another notice of intent to withdraw within one hundred eighty (180) days of receipt of its notification of liabilities; or

(3) request another calculation of its liabilities for any reason within three (3) years of the previous calculation of its liabilities;

the political subdivision or miscellaneous participating entity shall pay the cost of the additional calculation.

(d) Should a political subdivision or miscellaneous participating entity revoke its notice of intent to withdraw, the past contributions plus interest, if any, will be immediately due and payable to INPRS at the current actuarial interest assumption.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-12; adopted Sep 16, 2011: 20110928-IR-035110563ONA; adopted Apr 26, 2013: 20130508-IR-035130167ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted Feb 23, 2018: 20180307-IR-035180117ONA)

35 IAC 1.2-6-12.1 35 IAC 1.2-6-12.1 Refund of contributions following election to begin receiving benefits

35 IAC 1.2-6-12.1 Refund of contributions following election to begin receiving benefits

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-3-2; IC 5-10.2-4-8.2; IC 5-10.3

Sec. 12.1. A member who makes an election to continue making contributions under IC 5-10.2-3-2 after making an election to begin or continue receiving retirement benefits under IC 5-10.2-4-8.2 may not withdraw such contributions and earnings until the member has separated from covered service.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-12.1; adopted Apr 26, 2013: 20130508-IR-035130167ONA)

35 IAC 1.2-6-13 35 IAC 1.2-6-13 Member name changes

35 IAC 1.2-6-13 Member name changes

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3-7-1

Sec. 13. PERF may accept member name changes from the member's employer on behalf of the member for administration of PERF business.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-13; adopted Sep 16, 2011: 20110928-IR-035110563ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA)

35 IAC 1.2-6-14 35 IAC 1.2-6-14 Benefits payable to surviving spouse of the Prosecuting Attorneys' Retirement Fund (PARF)

35 IAC 1.2-6-14 Benefits payable to surviving spouse of the Prosecuting Attorneys' Retirement Fund (PARF)

Authority: IC 5-10.5-4-2; IC 33-39-7-11

Affected: IC 33-39-7-19

Sec. 14. Benefits payable to a surviving spouse under IC 33-39-7-19 are reduced by the amounts, if any, that are payable to the surviving spouse from the public employees' retirement fund as a result of the participant's death. When calculating this reduction, the amounts attributable from the annuity savings account, if any, are not to be included.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-14; adopted Dec 14, 2012: 20121226-IR-035120663ONA)

35 IAC 1.2-6-15 35 IAC 1.2-6-15 Death in service; compliance with the Heroes Earning Assistance and Relief Tax Act of 2008 (HEART)

35 IAC 1.2-6-15 Death in service; compliance with the Heroes Earning Assistance and Relief Tax Act of 2008 (HEART)

Authority: IC 2-3.5-3-4; IC 5-10.5-4-2; IC 33-38-6-23; IC 33-39-7-11

Affected: IC 2-3.5; IC 33-38; IC 33-39-7

Sec. 15. (a) This section applies to members of the Judges' Retirement System 1977 Benefit Plan, the Judges' Retirement System 1985 Benefit Plan, the Indiana Prosecuting Attorneys' Retirement Fund, the Legislators' Defined Benefit Plan, and the Legislators' Defined Contribution Plan. Effective with respect to deaths occurring on or after January 1, 2007, while a member is performing qualified military service (as defined in Chapter 43 of Title 38, United States Code), to the extent required by Section 401(a)(37) of the Internal Revenue Code, survivors of a member in the retirement system are entitled to any additional benefits that the system would provide if the member had resumed employment and then died, such as accelerated vesting or survivor benefits that are contingent on the member's death while employed.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-15; adopted Apr 26, 2013: 20130508-IR-035130167ONA)

35 IAC 1.2-6-16 35 IAC 1.2-6-16 Required minimum distributions; compliance with the Worker, Retiree, and Employee Recovery Act of 2008 (WRERA)

35 IAC 1.2-6-16 Required minimum distributions; compliance with the Worker, Retiree, and Employee Recovery Act of 2008 (WRERA)

Authority: IC 2-3.5-3-4; IC 5-10.5-4-2

Affected: IC 2-3.5-5

Sec. 16. A participant or beneficiary who would have been required to receive required minimum distributions for 2009 but for the enactment of IRC Section 401(a)(9)(H) (2009 RMDs), and who would have satisfied that requirement by receiving distributions that are (1) equal to the 2009 RMDs or (2) one (1) or more payments in a series of substantially equal distributions (that include the 2009 RMDs) made at least annually and expected to last for the life (or life expectancy) of the participant, the joint lives (or joint life expectancy) of the participant and the participant's designated beneficiary, or for a period of at least ten (10) years (Extended 2009 RMDs), will receive those distributions for 2009 unless the participant or beneficiary chooses not to receive such distributions. Further, the 2009 RMDs and Extended 2009 RMDs will not be treated as eligible rollover distributions.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-16; adopted Apr 26, 2013: 20130508-IR-035130167ONA)

35 IAC 1.2-6-17 35 IAC 1.2-6-17 Prosecuting Attorneys' Retirement Fund (PARF) retirement benefit PERF offset calculation

35 IAC 1.2-6-17 Prosecuting Attorneys' Retirement Fund (PARF) retirement benefit PERF offset calculation

Authority: IC 5-10.5-4-2; IC 33-39-7-11

Affected: IC 5-10.2-4-7; IC 33-39-7-16

Sec. 17. When calculating the reduction in PARF benefits described in IC 33-39-7-16(e) and IC 33-39-7-16(f), the pension, if any, that would be payable to the participant from the public employees' retirement fund will be based on the pension amount under IC 5-10.2-4-7(b) (commonly referred to as normal retirement option 10).

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-17; adopted Jun 20, 2014: 20140820-IR-035140335ONA)

35 IAC 1.2-6-17.1 35 IAC 1.2-6-17.1 Prosecuting attorneys' retirement fund retirement benefit computation

35 IAC 1.2-6-17.1 Prosecuting attorneys' retirement fund retirement benefit computation

Authority: IC 5-10.5-4-2; IC 33-39-7-11

Affected: IC 5-10.2-4; IC 33-39-7-16

Sec. 17.1. (a) For prosecuting attorneys' retirement fund (PARF) benefits computed for a participant who retires on or after July 1, 2017, the benefit is computed as follows:

(1) Calculate the PARF benefit pursuant to IC 33-39-7-16(c) without regard to any offset. This is the benefit amount to be paid to the participant unless the PERF benefit exceeds the PARF benefit amount.

(2) If the participant is receiving a PERF benefit on the date the participant retires from PARF, the actual PERF benefit amount will offset the amount needed to fund the remainder, if any, of the PARF benefit amount. For example: Tony's PARF benefit is computed to be sixty thousand dollars ($60,000) per year. Tony's PERF benefit is thirty thousand dollars ($30,000) per year. Tony's total benefit is sixty thousand dollars ($60,000) per year, but thirty thousand dollars ($30,000) is paid from the PERF pension fund and the remainder from the PARF pension fund.

(3) If the participant is not receiving a PERF pension on the date the participant retires from PARF but vested in PERF, the cost of the total benefit being paid from the PARF pension fund is reduced by the amount that would have been paid to the participant if the participant had retired from PERF at the same time the participant retired from PARF. For example: Lindsay retires from PARF, but not from PERF. Lindsay's total PARF pension benefit is computed to be sixty thousand dollars ($60,000) per year. If Lindsay had retired from PERF her PERF pension benefit would have been computed to be twenty thousand dollars ($20,000) per year. Lindsay will receive from the PARF pension fund forty thousand dollars ($40,000) per year.

(4) If the participant is not vested in PERF on the date that the participant retires from PARF, then there is no reduction in the amount of benefits paid from the PARF pension fund. For example: Mary has eight (8) years as a prosecutor and eight (8) years of PERF service when she retires from PARF. Mary's total PARF benefit will be paid from the PARF pension fund without any reduction from PERF.

(5) The actual PERF pension benefit being paid to the participant is used to offset the amount to be paid from the PARF pension fund for a participant who is receiving an in-service PERF benefit under IC 5-10.2-4-8.2 (elected officials and Millie Morgan) while continuing to work in a PARF covered position when the participant begins receiving a PERF in-service benefit. For example: Jodi is eligible to and makes an election to begin receiving her PERF pension benefit while still serving in a PARF position. Since no other PERF pension benefits may accrue, the actual PERF pension benefit being paid to Jodi at the time she retires from PARF is used to offset the total cost the PARF pension amount being paid from the PARF pension fund.

(b) In the event that the PERF pension benefit exceeds the PARF benefit, the participant is entitled to withdraw from PARF the total sum contributed by the participant plus interest at a rate determined by board under 35 IAC 1.2-1-6.

(c) In the event a member currently receiving a PARF and PERF benefit becomes eligible for a postretirement increase related to the member's PERF pension, such postretirement increase shall not result in a recalculation or reduction of PARF pension benefit.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-17.1; adopted Jun 23, 2017: 20170705-IR-035170307ONA; adopted Feb 23, 2018: 20180307-IR-035180117ONA; adopted Feb 22, 2019: 20190227-IR-035190137ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA)

35 IAC 1.2-6-17.2 35 IAC 1.2-6-17.2 PERF retirement for participants of the prosecuting attorneys' retirement fund

35 IAC 1.2-6-17.2 PERF retirement for participants of the prosecuting attorneys' retirement fund

Authority: IC 5-10.5-4-2; IC 33-39-7-11

Affected: IC 33-39-7

Sec. 17.2. (a) In accordance with the Pension Protection Act of 2006, a prosecuting attorneys' retirement fund (PARF) participant may make an election to begin receiving his or her PERF benefits without a separating from PARF-covered service if:

(1) the member is at least fifty-five (55) years of age and has accrued at least twenty (20) years of creditable PERF service;

(2) the member meets the Rule of 85 and has at least thirty (30) years of creditable PERF service; or

(3) the member has reached PERF normal retirement age, as defined in 35 IAC 1.2-1-4.

(b) A participant making such election shall not accrue additional PERF service credit and the participant's PERF benefit will remain unchanged despite further employment in any PERF-covered service.

(d) A participant who files a retirement application under this section after July 1, 2019, is entitled to a retirement effective date on or after the date on which the retirement application was filed.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-17.2; adopted Jun 23, 2017: 20170705-IR-035170307ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA)

35 IAC 1.2-6-18 35 IAC 1.2-6-18 Prosecuting attorneys' retirement fund (PARF) disability benefits

35 IAC 1.2-6-18 Prosecuting attorneys' retirement fund (PARF) disability benefits

Authority: IC 5-10.5-4-2; IC 33-39-7-11

Affected: IC 5-10.2-4-7; IC 33-39-7-15; IC 33-39-7-17

Sec. 18. (a) A participant receiving disability benefits under IC 33-39-7-17 who has attained normal retirement age, as defined in 35 IAC 1.2-1-4, is not required to be reexamined for a disability determination.

(b) A participant receiving disability benefits under IC 33-39-7-17 whose disability is a degenerative disease unlikely to improve over time, as reviewed by INPRS, is not required to be reexamined for a disability determination.

(c) A benefit payable under IC 33-39-7-15 is considered a retirement benefit when the participant reaches normal retirement age, as defined in 35 IAC 1.2-1-4.

(d) For the administration of disability claims under IC 33-39-7-17, a licensed treating physician of the member may be designated by INPRS as a physician appointed by the board of trustees. However, such designation shall not entitle the treating physician to remuneration or other compensation paid from INPRS unless there is an express written agreement signed by the parties in advance of any compensable services provided by the treating physician.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-18; adopted Sep 11, 2015: 20150923-IR-035150302ONA)

35 IAC 1.2-6-19 35 IAC 1.2-6-19 Judges' retirement system (JRS) disability reexamination

35 IAC 1.2-6-19 Judges' retirement system (JRS) disability reexamination

Authority: IC 5-10.5-4-2; IC 33-38-6-23

Affected: IC 33-38-8-15

Sec. 19. (a) A participant receiving disability benefits under IC 33-38-8-15, who has attained normal retirement age, as defined in 35 IAC 1.2-1-4, is not required to be reexamined for a disability determination.

(b) A participant receiving disability benefits under IC 33-38-8-15 whose disability is a degenerative disease unlikely to improve over time, as reviewed by INPRS, is not required to be reexamined for a disability determination.

(c) A benefit payable under IC 33-38-8-15 is considered a retirement benefit when the participant reaches normal retirement age, as defined in 35 IAC 1.2-1-4.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-19; adopted Sep 11, 2015: 20150923-IR-035150302ONA)

35 IAC 1.2-6-20 35 IAC 1.2-6-20 Conversion of ASA monies to a third party annuity provider any time after January 2017

35 IAC 1.2-6-20 Conversion of ASA monies to a third party annuity provider any time after January 2017

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-3; IC 5-10.2-4; IC 5-10.5-4-2.6

Sec. 20. (a) A member who, upon filing for regular, early, or disability retirement benefits, elects to convert the balance of the ASA to an annuity shall be entitled to convert the ASA funds with INPRS and INPRS shall be the annuity provider so long as:

(1) the member's retirement date (as determined under IC 5-10.2-4-1.3), disability retirement date, or retirement date due to an election made under IC 5-10.2-4-8.2 is prior to January 1, 2018; and

(2) INPRS receives the member's retirement application prior to December 1, 2017.

(b) A member who deferred their ASA under IC 5-10.2-4-2(c) and elects to convert the balance of the deferred ASA to an annuity shall be entitled to convert the ASA funds with INPRS and INPRS shall be the annuity provider so long as INPRS receives the member's postretirement payment of ASA election form prior to December 1, 2017.

(c) INPRS shall continue to provide the annuity for all members described in subsections [subsection] (a) or (b), regardless of a member's election to change their pension option or beneficiary designation.

(d) Beneficiaries receiving a benefit pursuant to IC 5-10.2-3 who elect to annuitize the ASA are entitled to an annuity provided by INPRS so long as:

(1) the deceased member's retirement date is prior to January 1, 2018; and

(2) INPRS receives the member's survivor benefit application prior to December 1, 2017.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-20; adopted Jun 23, 2017: 20170705-IR-035170307ONA)

Rule 7

35 IAC 1.2-7-1 35 IAC 1.2-7-1 Administrative orders; proceedings; reviews

Rule 7. Administrative Proceedings

35 IAC 1.2-7-1 Administrative orders; proceedings; reviews

Authority: IC 5-10.5-4-2

Affected: IC 4-21.5; IC 5-10.2; IC 5-10.3

Sec. 1. All administrative orders, proceedings, and reviews shall be made pursuant to IC 4-21.5.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-7-1; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1086; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-7-2 35 IAC 1.2-7-2 Pre-trial procedures

35 IAC 1.2-7-2 Pre-trial procedures

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 2. After any matter has been assigned to an administrative law judge, a prehearing conference may be set by the administrative law judge. The conference shall follow Indiana Trial Rule 16 to the extent applicable. At this time the administrative law judge may encourage any informal proceedings to settle the matter to the extent allowed by law. No person shall be required to make settlement under these informal proceedings.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-7-2; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1086; readopted filed Oct 31, 2001, 2:18 p.m.: 25 IR 897; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Nov 19, 2010: 20101208-IR-035100722ONA)

35 IAC 1.2-7-3 35 IAC 1.2-7-3 Administrative orders; proceedings; reviews

35 IAC 1.2-7-3 Administrative orders; proceedings; reviews

Authority: IC 5-10.5-4-2

Affected: IC 2-3.5-3-4; IC 4-21.5-3-5; IC 4-21.5-3-28; IC 5-10.2; IC 5-10.3-8-5; IC 33-38-6-23; IC 33-39-7-11

Sec. 3. (a) The purpose of this rule is to establish procedures to process petitioner appeals of PERF staff action, determinations, or decisions referred to as "staff action" in accordance with and pursuant to the Indiana Administrative Orders and Procedures Act (Act), IC 4-21.5-3.

(b) Pursuant to IC 4-21.5-3-28, the executive director (ED) as the board's delegate is the ultimate authority and has set forth the following review process to be followed before a final order is issued:

(1) PERF will issue an initial determination of its response to a questioned action.

(2) The initial determination will be sent by certified mail to the stakeholder with a summary of the member's right to administrative review.

(3) Pursuant to IC 4-21.5-3-5, the petitioner will have fifteen (15) days from receipt of PERF's initial determination to appeal in writing.

(4) Upon receipt by PERF a copy of the appeal will be sent to the administrative law judge (ALJ) assigned to the matter.

(5) The assigned ALJ may set a prehearing conference to discuss issues of discovery and motions for summary judgment and to determine a briefing schedule.

(6) If an evidentiary hearing is required, PERF shall provide space which is equipped with a recording device to conduct the hearing or engage a court reporter to make a record of the hearing if necessary.

(7) Once the ALJ has entered a decision and recommended order, the petitioner will have fifteen (15) days to object to the ALJ's decision.

(8) The ED will make a final determination to affirm, modify, or dissolve the ALJ's order. The executed final order will be mailed by certified mail to the ALJ and petitioner

(9) The petitioner has thirty (30) days from receipt of the final order to petition a court of jurisdiction for judicial review.

(10) If no petition for judicial review is filed within the thirty (30) day time period, the file is closed.

(11) This rule shall be interpreted to conform to the Act and shall be implemented pursuant to and in accordance with the Act.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-7-3; adopted Nov 19, 2010: 20101208-IR-035100722ONA)

35 IAC 1.2-7-4 35 IAC 1.2-7-4 PERF benefit payments pending appeal

35 IAC 1.2-7-4 PERF benefit payments pending appeal

Authority: IC 5-10.5-4-2

Affected: IC 4-21.5; IC 5-10.2; IC 5-10.3; IC 34-13-1-6

Sec. 4. (a) A member who elects to exercise the right to appeal an initial determination issued by PERF, the prosecuting attorneys' retirement fund, the judges' retirement system, or the legislators' retirement system may receive benefit payments less the disputed amount while the matter is pending. Should the matter be resolved in the member's favor, future benefits will be adjusted accordingly and a lump-sum payment for past benefits due shall be issued within sixty (60) days. If, however, the necessary information has not been provided or was delayed, the sixty (60) day period will be extended accordingly.

(b) Whenever, by final decree or judgment, a sum of money is adjudged to be due to a person, the judgment shall draw an annual rate of interest as described in IC 34-13-1-6. The fund shall not pay prejudgment interest.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-7-4; adopted Nov 19, 2010: 20101208-IR-035100722ONA)

Rule 8

35 IAC 1.2-8-1 35 IAC 1.2-8-1 Calculation

Rule 8. Cost-of-Living Adjustment

35 IAC 1.2-8-1 Calculation

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-5-29; IC 5-10.2-5-30

Sec. 1. A cost-of-living adjustment based on purchasing power replacement shall be calculated using the following elements for determinations made as of July 1:

(1) The Consumer Price Index-W from the prior March 31 shall be used.

(2) For comparative purposes, the appropriate prior years' March 31 Consumer Price Index-W numbers shall be used.

(3) Retirees will be grouped (based on their latest retirement or disability date) by twelve (12) month periods running from July 2 through the following July 1. A single net adjustment percentage shall be calculated for each such group.

(4) Minimum and maximum amounts in prior postretirement adjustments shall not be taken into account.

(5) So-called "13^th checks" shall not be taken into account.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-8-1; filed May 18, 2001, 10:38 a.m.: 24 IR 3014; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-8-2 35 IAC 1.2-8-2 Formula

35 IAC 1.2-8-2 Formula

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-5-29; IC 5-10.2-5-30

Sec. 2. (a) The elements established in section 1 of this rule shall be used in the formula in subsection (b).

(b) Compare the cumulative Consumer Price Index increase for an affected group to the cumulative postretirement cost-of-living adjustments for that group, as determined under section 1 of this rule, and increase that group's pension portion by the percentage (if any) determined by the fund actuary, as necessary to reach the minimum purchasing power established by the Indiana general assembly, for example:

(1) fifty percent (50%) for 1999; and

(2) fifty-seven and four-tenths percent (57.4%) for 2000.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-8-2; filed May 18, 2001, 10:38 a.m.: 24 IR 3014; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-8-3 35 IAC 1.2-8-3 Increases

35 IAC 1.2-8-3 Increases

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-5-29; IC 5-10.2-5-30

Sec. 3. The increase shall be applied as of July of any year established by the general assembly, the first such year beginning July 1, 1999.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-8-3; filed May 18, 2001, 10:38 a.m.: 24 IR 3014; adopted Nov 9, 2007: 20071205-IR-035070818ONA)

35 IAC 1.2-8-4 35 IAC 1.2-8-4 Thirteenth check

35 IAC 1.2-8-4 Thirteenth check

Authority: IC 5-10.5-4-2

Affected: IC 5-10-5.5; IC 5-10.2; IC 5-10.3; IC 5-10.4; IC 5-10.5

Sec. 4. Unless otherwise provided by law, eligible multiple survivor beneficiaries authorized to receive a one (1) time ad hoc payment commonly known as the thirteenth check shall receive a pro rata share of the underlying amount that a single survivor beneficiary would receive had there been only one (1) eligible survivor beneficiary designated on a member's account administered by the system.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-8-4; adopted Feb 17, 2012: 20120222-IR-035120095ONA)

35 IAC 1.2-8-5 35 IAC 1.2-8-5 Actuarial rules

35 IAC 1.2-8-5 Actuarial rules

Authority: IC 5-10.3

Affected: IC 5-10.3

Sec. 5. Two (2) forms of benefit payments are considered to be actuarially equivalent if the expected present value of future payments are the same. For PERF, the expected present value is calculated based on a six and twenty-five hundredths percent (6.25%) interest rate and the Pub-2010 Mortality Tables, projected to 2035 using Scale MP-2019, blended using a customized weighting. The expected present value of the annuity portion of the benefit is calculated using the Pub-2010 Mortality Tables, projected to 2035 using Scale MP-2019, blended using a customized weighting and prior to January 1, 2017, and after October 1, 2015, an interest rate equal to the greater of similar annuities in the private market or four and one-half percent (4.5%). After January 1, 2017, the interest rate used will be equal to similar annuities in the private market.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-8-5; adopted Sep 14, 2012: 20120926-IR-035120542ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA; adopted Oct 28, 2022: 20221116-IR-035220338ONA)