35 IAC 1.3 — ARTICLE 1.3. PUBLIC EMPLOYEES' RETIREMENT FUND–DEFINED CONTRIBUTION PROGRAM

ARTICLE 1.3. PUBLIC EMPLOYEES' RETIREMENT FUND–DEFINED CONTRIBUTION PROGRAM

Rule 1

35 IAC 1.3-1-1 35 IAC 1.3-1-1 Administration

Rule 1. General Provisions

35 IAC 1.3-1-1 Administration

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12

Sec. 1. (a) The public employees' defined contribution plan, created under IC 5-10.3-12 (hereinafter referred to as the plan) shall be administered by the INPRS board of trustees of the Indiana public retirement system (hereinafter referred to as the INPRS board). The plan is a separate defined contribution account of the public employees' retirement fund under the administration of the INPRS board.

(b) The executive director of the fund shall have the same duties and authority over the plan as apply to the fund under 35 IAC 1.2-1-2.

(c) The INPRS board shall have the same duties and authority over the plan as apply to the fund under 35 IAC 1.2-1-3.

(d) Pursuant to IC 5-10.3-12-7, the INPRS board shall implement this article the first day of the month that is six (6) months after the month in which the Internal Revenue Service issues an approval of the plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-1-1; adopted Sep 16, 2011: 20110928-IR-035110564ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA)

Rule 2

35 IAC 1.3-2-1 35 IAC 1.3-2-1 Definitions

Rule 2. Definitions

35 IAC 1.3-2-1 Definitions

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.2-2-2; IC 5-10.2-4-3; IC 5-10.3-12

Sec. 1. The definitions in 35 IAC 1.2-2-1 apply throughout this article, unless the term is defined in this section or unless the context otherwise clearly requires:

(1) "Annuity savings account" or "ASA" means the annuity savings account maintained under IC 5-10.2-2-2(a)(1), as described in IC 5-10.3-12-3.

(2) "Compensation", for the purposes of IC 5-10.3-12-23 and this plan, means all compensation that is included as gross income 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.

(3) "Employer contributions" means contributions made by the state, political subdivisions, and miscellaneous participating entities credited to the member's employer contribution subaccount, as described in IC 5-10.3-12-9 and IC 5-10.3-12-24. The term does not include contributions from a political subdivision related to volunteer firefighters covered under the plan.

(4) "Member's contributions" means the member's contributions credited to the member's contribution subaccount, as described in IC 5-10.3-12-13 and IC 5-10.3-12-23, which includes the member's compensation under IC 5-10.3-12-5.

(5) "Normal cost of the fund", for purposes of IC 5-10.3-12-24 and this plan, means the present value of the portion of the actuarial cost of projected benefits allocated to the current plan year. The normal cost is calculated by determining the projected future benefits to members, discounting the projected future benefits to the valuation date to establish the present value of benefits, and allocating the cost of the present value of benefits to past service, current service, and future service. The amount allocated to the current service is the normal cost. The normal cost of the fund is calculated annually by the actuary as part of the valuation process.

(6) "Plan" means the public employees' defined contribution plan established under IC 5-10.3-12.

(7) "Vested" or "vested portion" means the portion of the employer contribution subaccount that is vested as described in IC 5-10.3-12-25.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-2-1; adopted Sep 16, 2011: 20110928-IR-035110564ONA; adopted Jun 20, 2014: 20140820-IR-035140335ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA; adopted Jun 26, 2020: 20200708-IR-035200360ONA)

Rule 3

35 IAC 1.3-3-1 35 IAC 1.3-3-1 Years of participation

Rule 3. Years of Participation

35 IAC 1.3-3-1 Years of participation

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.2-3-1; IC 5-10.3-7-1; IC 5-10.3-7-4; IC 5-10.3-12-25

Sec. 1. (a) All years of participation for purposes of determining vesting under the plan are determined by IC 5-10.3-12 and this article.

(b) A member's years of participation shall be credited in yearly increments, and shall not be prorated for partial years of participation credit.

(c) If a plan participant:

(1) is employed in two (2) different plan-covered positions at the same time; and

(2) then terminates employment from either one (1) of those positions;

the participant forfeits only those contributions, as described in IC 5-10.3-12-25(e), from the participating entity from which the participant terminates. The participant does not forfeit any member contributions.

(d) Participants who separate employment from one (1) participating entity in the plan retain their accumulated years of participation if the participant is hired by another participating entity.

(e) A participant's years of participation in the plan may only be used towards calculating the participant's vesting percentage in the plan. Years of participation in the plan may not be treated as creditable service in the fund.

(f) If a participant is employed in one (1) fund-covered position and at the same time is employed in a separate plan-covered position, the member is entitled to both creditable service in the fund and years of participation in the plan. If a plan participant is employed in two (2) plan-covered positions, the member may earn years of participation from only one (1) position at a time.

(g) For purposes of forfeiture under IC 5-10.3-12-25(e), "state employee" has the meaning set forth in IC 5-10.3-7-1.

(h) Members who separate from state employment forfeit any employer contributions, unless they return to state employment within thirty (30) days.

(i) Members who separate from employment with a participating political subdivision forfeit any employer contributions, unless they return to employment with the same political subdivision within thirty (30) days.

(j) A participant in the plan does not earn years of participation for the individual's service with a volunteer fire department.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-3-1; adopted Sep 16, 2011: 20110928-IR-035110564ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted Jun 23, 2017: 20170705-IR-035170307ONA; errata filed Jan 16, 2018, 3:12 p.m.: 20180124-IR-035180061ACA; adopted Sep 10, 2021: 20210915-IR-035210420ONA)

35 IAC 1.3-3-2 35 IAC 1.3-3-2 Leave of absence

35 IAC 1.3-3-2 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; IC 5-10.3-12

Sec. 2. (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) This section shall be administered in a manner consistent with the FMLA.

(c) Except as otherwise required by the FMLA, a member shall be entitled to years of participation credit for vesting purposes under the plan if a copy of the grant of the leave of absence is filed with PERF within ninety (90) days from the date the leave was authorized by the employer.

(d) If the member is compensated while on an FMLA-covered leave, the statutory contributions must be maintained.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-3-2; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

35 IAC 1.3-3-3 35 IAC 1.3-3-3 Reinstatement

35 IAC 1.3-3-3 Reinstatement

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3-12

Sec. 3. 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 employer and employee contributions or political subdivision contributions as a volunteer firefighter as provided in the court determination and order or administrative final determination and order.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-3-3; adopted Sep 16, 2011: 20110928-IR-035110564ONA; adopted Jun 26, 2020: 20200708-IR-035200360ONA)

35 IAC 1.3-3-4 35 IAC 1.3-3-4 Service credit for injured employees

35 IAC 1.3-3-4 Service credit for injured employees

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2-3-1; IC 5-10.3-7-4; IC 5-10.3-12-16

Sec. 4. Years of participation shall be earned by a member injured during the scope of the member's employment and paid benefits under the Workers' Compensation Act or the state personnel.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-3-4; adopted Sep 16, 2011: 20110928-IR-035110564ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA)

35 IAC 1.3-3-5 35 IAC 1.3-3-5 Unused sick leave

35 IAC 1.3-3-5 Unused sick leave

Authority: IC 5-10.3-12-18; IC 5-10.5-4

Affected: IC 5-10.3-12

Sec. 5. No years of participation credit shall be given after a member's last physical day at work for unused sick, vacation, or personal 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 1.3-3-5; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

Rule 4

35 IAC 1.3-4-1 35 IAC 1.3-4-1 Participants of the plan

Rule 4. Members of the Plan

35 IAC 1.3-4-1 Participants of the plan

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-2-4; IC 5-10.3-6-1; IC 5-10.3-7-1; IC 5-10.3-12-1

Sec. 1. (a) Participants of the plan are determined by IC 5-10.3-12 and this article.

(b) Eligible participants must elect to participate in the plan defined in IC 5-10.3-12 within the first sixty (60) days of their employment, or the member will be defaulted to membership in either the plan or the fund, determined by the default membership elected by the employer in the resolution on file with INPRS.

(c) The default described in subsection (b) is irrevocable.

(d) If a participant terminates employment prior to making a participation election the participant will be defaulted to membership in either the plan or the fund, determined by the default membership elected by the employer in the resolution on file with INPRS.

(e) An election made due to a material mistake by the participant may be corrected under INPRS' sole discretion within sixty (60) days following the end of the election period upon petition by the participant if the participant can prove to INPRS' satisfaction that the election was made due to a material mistake by the participant.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-4-1; adopted Sep 16, 2011: 20110928-IR-035110564ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Jun 20, 2014: 20140820-IR-035140335ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted May 3, 2019: 20190515-IR-035190262ONA)

35 IAC 1.3-4-2 35 IAC 1.3-4-2 Membership options

35 IAC 1.3-4-2 Membership options

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-6-1; IC 5-10.3-7-1; IC 5-10.3-12-1

Sec. 2. (a) An employee's participation in the fund or the plan is determined by the employer classification of a participant's position, in the employer resolution on file with INPRS.

(b) Except as provided in subsection (d), a participant with only prior fund service shall become a member of the fund, only if the employer offers fund membership to that participant's position. If an employer requires all new employees to become members of the fund, the employee becomes a member of the fund regardless of the member's service or participation history.

(c) Except as provided in subsection (d), a participant with only prior plan service shall become a member of the plan, only if the employer offers plan membership to that participant's position. If an employer requires all new employees to become members of the plan, the employee becomes a member of the plan regardless of the member's service or participation history.

(d) A participant with both prior fund service and prior plan service shall become a member of the plan, only if the employer offers plan membership to that participant's position. If an employer offers new employees a choice between fund or plan membership, the new employee may choose membership in either the fund or the plan, regardless of the employee's PERF service or participation history. The employee's choice is irrevocable. Once an employee makes a decision between the fund or the plan with a specific employer, that employee will not receive another choice if later reemployed with that specific employer.

(e) An employer may require all new employees without prior PERF service or participation to enter into only either the fund or plan. The same employer may allow new employees with prior PERF service or years of participation a choice between plan and fund membership.

(f) A previous PERF covered state employee rehired by the state who did not have a previous opportunity to elect plan participation with the state may make the irrevocable election to participate in the plan under same terms and conditions as a newly hired first-time PERF covered state employee.

(g) Political subdivisions may designate whether employees or volunteer firefighters who are retired from the fund may be enrolled in the plan within an ordinance or resolution. If the political subdivision does not explicitly allow employees or volunteer firefighters who are retired from the fund to be enrolled in the plan within the resolution or ordinance, then employees and volunteer firefighters who have retired from the fund are prohibited from participation in the plan.

(h) A volunteer firefighter with a participating political subdivision shall become a member of the plan unless otherwise excluded by retirement fund law.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-4-2; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted Nov 4, 2016: 20161116-IR-035160500ONA; adopted Jun 26, 2020: 20200708-IR-035200360ONA)

35 IAC 1.3-4-3 35 IAC 1.3-4-3 Participation credit options

35 IAC 1.3-4-3 Participation credit options

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-6-1; IC 5-10.3-7-1; IC 5-10.3-12

Sec. 3. (a) A new employing unit joining the plan may give participation credit for previous service earned by a participant with the employer prior to joining the plan at the employer's discretion as expressed in the employer's plan participation ordinance or resolution. For example: Jeff has three (3) years of service with an employer prior to the employer electing to participate in the plan; Mary is a new employee of the employer. The employer may elect to give up to three (3) years of participation service in the plan for Jeff, but zero (0) years of previous participation service for Mary. Each employee participant will earn additional participation service with the employer going forward.

(b) An employer may not immediately vest a participant in the plan except as provided by this article and IC 5-10.3-12.

(c) No employer or employee contributions are required for vesting purposes for previous employee service.

(d) An employee cannot become a member of the plan except as provided in IC 5-10.3-12.

(Board of Trustees of the Indiana Public Retirement System 35 IAC 1.3-4-3; adopted Sep 14, 2018: 20180919-IR-035180399ONA)

Rule 5

35 IAC 1.3-5-1 35 IAC 1.3-5-1 Member accounts

Rule 5. Member Accounts and Investment

35 IAC 1.3-5-1 Member accounts

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.2-3-10; IC 5-10.3-12

Sec. 1. (a) Except as provided in subsection (d), each member in the plan will have an account that includes the following subaccounts:

(1) A member contribution subaccount as defined in IC 5-10.3-12-13.

(2) An employer contribution subaccount as defined in IC 5-10.3-12-9.

(b) To the extent a member has made rollover contributions to the plan, a rollover account as defined in IC 5-10.3-12-2 and IC 5-10.3-12-29 will be maintained on behalf of the member as a separate subaccount within the member's account.

(c) The accounts will be held and invested in the annuity savings account, subject to the provisions of IC 5-10.3-12 and this title, and the plan shall be a component of the fund.

(d) A volunteer firefighter member who joined the plan as result of IC 5-10.3-12-1(a)(7) shall have only a member contribution subaccount with respect to volunteer firefighter service.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-5-1; adopted Sep 16, 2011: 20110928-IR-035110564ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted May 3, 2019: 20190515-IR-035190262ONA; adopted Jun 26, 2020: 20200708-IR-035200360ONA)

Rule 6

35 IAC 1.3-6-1 35 IAC 1.3-6-1 Member distribution options

Rule 6. Retirement and Disability Benefits

35 IAC 1.3-6-1 Member distribution options

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.2-3-10; IC 5-10.2-4-7; IC 5-10.3-12

Sec. 1. (a) As provided under IC 5-10.3-12-26, IC 5-10.3-12-29, and this article, a member who terminates service in covered employment is entitled to withdraw the vested portion of the member's account as:

(1) a lump sum or partial distribution;

(2) a direct rollover to an eligible retirement plan; or

(3) if the member has attained normal retirement age, as defined in IC 5-10.3-12-14, a monthly annuity, subject to this article.

(b) For a member electing a distribution under subsection (a)(3), the forms of monthly annuity payments that are available under the annuity savings account of the fund shall be available for the member's selection.

(c) Members who have not reached normal retirement age are entitled to withdraw the vested portion of their account under subsection (a) thirty (30) days after termination of covered employment in a covered position and separation from service with the employer.

(d) After December 31, 2020, a member who has reached normal retirement age may withdraw money from the member's account without separating service. A member who has reached normal retirement age and separates from the covered position and service with the employer may withdraw money from the member's annuity savings account without waiting thirty (30) days after such separation.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-6-1; adopted Sep 16, 2011: 20110928-IR-035110564ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted Feb 22, 2019: 20190227-IR-035190137ONA; adopted Dec 13, 2019: 20191225-IR-035190683ONA; adopted Jun 26, 2020: 20200708-IR-035200360ONA)

35 IAC 1.3-6-2 35 IAC 1.3-6-2 Preretirement survivor benefits

35 IAC 1.3-6-2 Preretirement survivor benefits

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12-27

Sec. 2. The distribution options available to the beneficiary or beneficiaries shall be as described in IC 5-10.3-12-27(c), and subject to the provisions of section 1 of this rule with regard to member distribution options.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-6-2; adopted Sep 16, 2011: 20110928-IR-035110564ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA)

35 IAC 1.3-6-3 35 IAC 1.3-6-3 Disability benefits

35 IAC 1.3-6-3 Disability benefits

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12-25; IC 5-10.3-12-30

Sec. 3. (a) A member who becomes disabled while in service in a covered position and who presents proof of the member's qualification for Social Security benefits to the INPRS board is entitled to withdraw the vested portion of the member's account as described in IC 5-10.3-12-30 and section 1 of this rule, provided that a monthly annuity shall be available as a distribution option regardless of whether the member has attained normal retirement age, if the minimum monthly annuity amount rule under section 1(b) of this rule is satisfied.

(b) Nonvested amounts at the time of the initial disability distribution are not forfeited under IC 5-10.3-12-25(e) at the time of the disability distribution. Except as provided in section 3.1(c) of this rule, the disability retirement benefit shall be recalculated once the member is no longer receiving state disability payments so long as the member remains otherwise eligible for such disability retirement benefits. For example, Ann has three (3) years of service and goes on state long-term disability leave. Ann received a disability onset date by the Social Security Administration that coincides with the date she began receiving state long-term disability benefits. Ann may receive forty percent (40%) of the amounts in her ASA. Ann continues to receive state long-term disability benefits for two and one-half (2 1/2) more years and terminates state employment. Ann may now receive one hundred percent (100%) of vested amounts in her ASA including the residual amounts not paid to her when she first applied for disability and any contributions and earnings since that time.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-6-3; adopted Sep 16, 2011: 20110928-IR-035110564ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA)

35 IAC 1.3-6-3.1 35 IAC 1.3-6-3.1 Disability benefits effect of return to work or reemployment

35 IAC 1.3-6-3.1 Disability benefits effect of return to work or reemployment

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12-25; IC 5-10.3-12-30

Sec. 3.1. (a) If a member of the plan separates from employment with the state and later returns to state employment in a position covered by the plan, the member is entitled to receive credit for the member's years of participation in the plan before the member's separation. However, any amounts forfeited by the member under section IC 5-10.3-12-25(e) or these rules may not be restored to the member's account.

(b) When a disabled member of the plan receiving a disability annuity under IC 5-10.3-12-30 and these rules returns to active duty state employment in a position covered by the plan, the member is entitled to continue receiving the disability annuity and the member is entitled to receive credit for the member's years of participation in the plan before the member's separation. However, any amounts forfeited by the member under section IC 5-10.3-12-25(e) or these rules may not be restored to the member's account.

(c) If a member receiving state long-term disability benefits returns to active duty state employment in a position covered by the plan prior to exhausting state long-term disability benefits, the member's benefit will not be recalculated upon termination of the state long-term disability benefits. No additional distribution shall be made except as otherwise provided by law and these rules.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-6-3.1; adopted Dec 14, 2012: 20121226-IR-035120663ONA)

35 IAC 1.3-6-4 35 IAC 1.3-6-4 In service for disability and survivor benefits

35 IAC 1.3-6-4 In service for disability and survivor benefits

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12-30

Sec. 4. (a) "In service", for purposes of availability of account distribution under the plan, means that the member was in an employer-employee relationship as determined by the employer within established rules of the employer. If the member is a volunteer firefighter, then "in service" for purposes of availability of account distribution under the plan means that the person was a current member of the volunteer firefighter plan as determined by the political subdivision within established rules of the political subdivision.

(b) To be eligible to receive disability benefits, the member must be receiving salary, worker's compensation benefits, employer-provided income protection benefits, in service as a volunteer firefighter as certified by the political subdivision, or on leave under the Family and Medical Leave Act on the date the Social Security Administration determines the member becomes disabled.

(c) For the purpose of IC 5-10.3-12-30 only, "while in a covered position" includes the last check date for a member, but does not include any checks 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.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-6-4; adopted Sep 16, 2011: 20110928-IR-035110564ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted Jun 26, 2020: 20200708-IR-035200360ONA)

35 IAC 1.3-6-4.1 35 IAC 1.3-6-4.1 State long-term disability benefits

35 IAC 1.3-6-4.1 State long-term disability benefits

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10-8-7; IC 5-10.3-12

Sec. 4.1. "State long-term disability benefits" means any benefits 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 1.3-6-4.1; adopted Dec 14, 2012: 20121226-IR-035120663ONA)

35 IAC 1.3-6-5 35 IAC 1.3-6-5 Military service and death in service; compliance with the Uniformed Services Employment and Reemployment Rights Act and the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART)

35 IAC 1.3-6-5 Military service and death in service; compliance with the Uniformed Services Employment and Reemployment Rights Act and the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART)

Authority: IC 5-10.5-4-2; IC 5-10.3-12-18

Affected: IC 5-10.3-12

Sec. 5. The provisions of 35 IAC 1.2-3-10 and 35 IAC 1.2-5-9.1, as applicable to the annuity savings account, shall apply to this plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-6-5; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

35 IAC 1.3-6-6 35 IAC 1.3-6-6 De minimis accounts

35 IAC 1.3-6-6 De minimis accounts

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-1

Sec. 6. The provisions of 35 IAC 1.2-5-12.2 shall apply to the plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-6-6; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

35 IAC 1.3-6-7 35 IAC 1.3-6-7 Beneficiary designation

35 IAC 1.3-6-7 Beneficiary designation

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12

Sec. 7. The provisions of 35 IAC 1.2-5-13, 35 IAC 1.2-5-14, and 35 IAC 1.2-5-15 shall apply to the plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-6-7; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

35 IAC 1.3-6-8 35 IAC 1.3-6-8 Birth date; proof required

35 IAC 1.3-6-8 Birth date; proof required

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12

Sec. 8. The provisions of 35 IAC 1.2-5-17 shall apply to the plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-6-8; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

35 IAC 1.3-6-9 35 IAC 1.3-6-9 Minors and other incompetent persons

35 IAC 1.3-6-9 Minors and other incompetent persons

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12

Sec. 9. The provisions of 35 IAC 1.2-5-18 shall apply to the plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-6-9; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

35 IAC 1.3-6-10 35 IAC 1.3-6-10 Unclaimed ASA assets within dormant accounts

35 IAC 1.3-6-10 Unclaimed ASA assets within dormant accounts

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12

Sec. 10. (a) Whenever a vested member's account has received no contributions for a period of twenty (20) years and it has been determined by INPRS that the member is otherwise age and service eligible to receive a benefit, the fund may conduct an investigation to locate the member.

(b) Reasonable costs of locating the member or the member's beneficiary may be charged against the member's ASA.

(c) If the member or the member's beneficiary is not located after an investigation to locate the member, the monies in the member's ASA shall remain in the member's account until the member or the member's beneficiary claims the monies or there are insufficient assets in the account to pay the administrative costs of the account, at such time the account will be closed.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-6-10; adopted Sep 16, 2011: 20110928-IR-035110564ONA; adopted Sep 14, 2018: 20180919-IR-035180399ONA)

35 IAC 1.3-6-11 35 IAC 1.3-6-11 Stale checks

35 IAC 1.3-6-11 Stale checks

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12

Sec. 11. The provisions of 35 IAC 1.2-5-23 shall apply to the plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-6-11; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

35 IAC 1.3-6-12 35 IAC 1.3-6-12 Required minimum distributions

35 IAC 1.3-6-12 Required minimum distributions

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12

Sec. 12. The provisions of 35 IAC 13, as applied to the annuity savings account, shall apply to this plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-6-12; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

Rule 7

35 IAC 1.3-7-1 35 IAC 1.3-7-1 Deductions for health insurance and taxes; minimum amount

Rule 7. Miscellaneous

35 IAC 1.3-7-1 Deductions for health insurance and taxes; minimum amount

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12

Sec. 1. The provisions of 35 IAC 1.2-6-4 shall apply to the plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-7-1; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

35 IAC 1.3-7-2 35 IAC 1.3-7-2 Adjustments

35 IAC 1.3-7-2 Adjustments

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12

Sec. 2. The provisions of 35 IAC 1.2-6-5.5 shall apply to the plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-7-2; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

35 IAC 1.3-7-3 35 IAC 1.3-7-3 Refund of contributions

35 IAC 1.3-7-3 Refund of contributions

Authority: IC 5-10.5-4-2

Affected: IC 5-10.2; IC 5-10.3

Sec. 3. The provisions of 35 IAC 1.2-6-6 shall apply to the plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-7-3; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

35 IAC 1.3-7-4 35 IAC 1.3-7-4 Annuity savings account contributions received by PERF subsequent to processing of retirement benefit

35 IAC 1.3-7-4 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. 4. (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) No later than October 1, 2014, 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 to a non-PERF tax deferred account.

(c) Pursuant to IC 5-10.2-4-2(b)(2), a member electing to fully or partially annuitize the member's annuity savings account in contemplation of separation from service and retirement, excluding state long-term disabilitants, will have the entire amount in the member's annuity savings account moved into a fixed value account. Once the annuity savings account is moved into a fixed value account in contemplation of retirement, the election cannot be changed. In addition, any annuity savings account contributions posted to a member's account subsequent to payment of the first annuity check shall be held in an account valued at the PERF Money Market rate, until such time as that amount is distributed to the member. If the member cancels the retirement process, the member's account will be moved into the Money Market Fund until a new election is made by the member.

(d) Pursuant to the provisions of the Internal Revenue Code applicable to qualified plan distributions, a member who:

(1) terminates service in a covered position; and

(2) does not perform any service in a position covered by the plan or with the employer for at least thirty (30) days after the date on which the member terminates service;

is entitled to withdraw amounts in the member's account to the extent the member is vested in the account.

(e) After December 31, 2020, a member who has reached normal retirement age may withdraw money from the member's account without separating service. A member who has reached normal retirement age and separates from the covered position and service with the employer may withdraw money from the member's annuity savings account without waiting thirty (30) days after such separation.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-7-4; adopted Sep 16, 2011: 20110928-IR-035110564ONA; adopted Dec 14, 2012: 20121226-IR-035120663ONA; adopted Jun 20, 2014: 20140820-IR-035140335ONA; adopted Jun 26, 2020: 20200708-IR-035200360ONA)

35 IAC 1.3-7-5 35 IAC 1.3-7-5 Direct deposit of benefits

35 IAC 1.3-7-5 Direct deposit of benefits

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12

Sec. 5. The provisions of 35 IAC 1.2-6-9 shall apply to this plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-7-5; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

35 IAC 1.3-7-6 35 IAC 1.3-7-6 Withholding of payments

35 IAC 1.3-7-6 Withholding of payments

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12

Sec. 6. The provisions of 35 IAC 1.2-6-10 shall apply to this plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-7-6; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

35 IAC 1.3-7-7 35 IAC 1.3-7-7 Resolutions filed by political subdivisions; contributions

35 IAC 1.3-7-7 Resolutions filed by political subdivisions; contributions

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.2-2-11; IC 5-10.3-6-1; IC 5-10.3-12-23; IC 5-10.3-12-32

Sec. 7. (a) Resolutions to join, expand coverage in, modify, or withdraw from the plan or fund may be submitted any time prior to the effective date.

(b) Resolutions to join shall be effective on the date of approval by the board. All other resolutions described in subsection (a) and modifications described in subsection (c) shall be effective when the necessary actuarial costs are calculated and the respective statutory requirements to expand coverage in or otherwise modify participation have been met and approved by INPRS.

(c) Resolutions and modifications to resolutions should include the following:

(1) Whether the employer will pay mandatory contributions or voluntary contributions, or both.

(2) The employer contribution rate, as a percentage of each member's compensation, between zero percent (0%) and the normal cost of participation in the fund, as described in IC 5-10.2-2-11.

(3) Whether the employer will match fifty percent (50%) of each participant's additional contributions to the plan.

(4) A default plan election.

(5) Whether the employer will allow a member retired from the fund to enroll in the plan, in accordance with IC 5-10.3-12-32.

(6) A designation whether a political subdivision decides to cover volunteer firefighters including the frequency and amount of political subdivision-paid member contributions.

(d) Modifications may be made during an "open enrollment" period, communicated to participating entities in advance.

(e) If an employer elects to pay all or part of the member contributions, the employer must pay the same amounts for all eligible employees participating in the plan or fund.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-7-7; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted Nov 4, 2016: 20161116-IR-035160500ONA; adopted Jun 26, 2020: 20200708-IR-035200360ONA)

35 IAC 1.3-7-8 35 IAC 1.3-7-8 Supplemental contribution and forfeited funds

35 IAC 1.3-7-8 Supplemental contribution and forfeited funds

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.2-2-11; IC 5-10.2-2-21; IC 5-10.3-6-7

Sec. 8. (a) The following participating entities with an unfunded liability are required to pay the supplemental contribution as set forth in IC 5-10.2-2-11(c):

(1) A participating entity with fund participation prior to July 1, 2015.

(2) A participating entity with participants active in a fund-covered position on July 1, 2015.

(b) The supplemental contribution is paid in addition to any plan contributions owed by a participating entity.

(c) A participating entity is not required to pay the supplemental contribution for members enrolled in the plan, if the participating entity never participated in the fund.

(d) Participating entities that have completed and paid for a freeze, as described in IC 5-10.2-2-21, and are no longer offering any positions covered by the fund, are not required to pay the supplemental contribution as set forth in IC 5-10.2-2-11(c).

(e) Participating entities described in subsection (c) or (d) may, at a later date, allow new employees to elect fund membership. Those participating entities are not required to pay the supplemental contribution for members who participate in the plan, but are required to contribute the entire rate determined by IC 5-10.2-2-11(b) for members of the fund.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-7-8; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted Nov 4, 2016: 20161116-IR-035160500ONA; adopted Feb 16, 2024: 20240306-IR-035240087ONA)

35 IAC 1.3-7-9 35 IAC 1.3-7-9 Withdrawal by political subdivisions; employer contributions

35 IAC 1.3-7-9 Withdrawal by political subdivisions; employer contributions

Authority: IC 5-10.2-4-2; IC 5-10.3-12-18

Affected: IC 5-10.2-3-1; IC 5-10.3-7-4; IC 5-10.3-12

Sec. 9. If a participating political subdivision withdraws from participation in the plan as described in section 7 of this rule, the employees of the participating political subdivision are immediately one hundred percent (100%) vested in employer contributions.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-7-9; adopted Feb 22, 2019: 20190227-IR-035190137ONA)

35 IAC 1.3-7-10 35 IAC 1.3-7-10 Application of forfeited funds

35 IAC 1.3-7-10 Application of forfeited funds

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12-25

Sec. 10. Under Section 401 of the Internal Revenue Code, amounts forfeited as described in IC 5-10.3-12-25 or 35 IAC 1.3-3-1 during a plan year shall be used for plan administrative expenses, and any remaining forfeitures shall be used to reduce future employer contributions to the plan not later than twelve (12) months after the end of the fiscal year in which the forfeitures are incurred or, if longer, the maximum time allowed under treasury regulations.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-7-10; adopted Dec 13, 2024: 20250108-IR-035240621ONA)

Rule 8

35 IAC 1.3-8-1 35 IAC 1.3-8-1 Administrative orders; proceedings; reviews

Rule 8. Administrative Proceedings

35 IAC 1.3-8-1 Administrative orders; proceedings; reviews

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 4-21.5; IC 5-10.3-12

Sec. 1. All administrative orders, proceedings, and reviews shall be made pursuant to IC 4-21.5 and 35 IAC 1.2-7.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-8-1; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

Rule 9

35 IAC 1.3-9-1 35 IAC 1.3-9-1 Annual compensation limit

Rule 9. Annual Compensation Limit

35 IAC 1.3-9-1 Annual compensation limit

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-12

Sec. 1. The provisions of 35 IAC 12, as applied to the annuity savings account, shall apply to this plan.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.3-9-1; adopted Sep 16, 2011: 20110928-IR-035110564ONA)

Rule 10

35 IAC 1.3-10-1 35 IAC 1.3-10-1 Actuarial rules

Rule 10. Assumptions

35 IAC 1.3-10-1 Actuarial rules

Authority: IC 5-10.3-12-18; IC 5-10.5-4-2

Affected: IC 5-10.3-5-7

Sec. 1. 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 of the pension portion of the benefit 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 1.3-10-1; adopted Sep 14, 2012: 20120926-IR-035120542ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA; adopted Oct 28, 2022: 20221116-IR-035220338ONA)