35 IAC 18 — ARTICLE 18. ROLLOVERS, SERVICE PURCHASES, AND ENHANCED RETIREMENT SAVINGS OPPORTUNITIES

TITLE 35 BOARD OF TRUSTEES OF THE INDIANA PUBLIC RETIREMENT SYSTEM

ARTICLE 18. ROLLOVERS, SERVICE PURCHASES, AND ENHANCED RETIREMENT SAVINGS OPPORTUNITIES

Rule 1

35 IAC 18-1-1 35 IAC 18-1-1 Definitions

Rule 1. General Provisions

35 IAC 18-1-1 Definitions

Authority: IC 2-3.5-3-4; IC 5-10-5.5-3; IC 5-10.5-4-2; IC 33-38-6-23; IC 33-39-7-11; IC 36-8-8-5

Affected: IC 2-3.5-5; IC 5-10-5.5; IC 5-10.2-3-10; IC 5-10.3; IC 5-10.4; IC 5-10.5; IC 33-38-6; IC 33-38-7; IC 33-38-8; IC 36-8-8

Sec. 1. (a) The definitions in this section apply throughout this article.

(b) "Board of trustees" means the board of trustees of the Indiana public retirement system (INPRS).

(c) "Code" means the Internal Revenue Code of 1986, 26 U.S.C. 1 et seq., and all amendments related thereto.

(d) "Direct rollover" means a payment from an eligible retirement plan specified by the member to a fund.

(e) "Eligible retirement plan" means:

(1) an individual retirement account described in Section 408(a) of the Code;

(2) an individual retirement annuity described in Section 408(b) of the Code;

(3) an annuity plan described in Section 403(a) of the Code;

(4) a qualified trust described in Section 401(a) of the Code;

(5) an eligible deferred compensation plan under Section 457(b) of the Code that is maintained by a state, a political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state (so long as the plan agrees to separately account for amounts rolled into the plan); or

(6) an annuity contract under Section 403(b) of the Code;

that accepts the distributee's eligible rollover distribution.

(f) "Eligible rollover distribution" means any distribution of all or any taxable portion of the benefit to the credit of a member or a member's spouse, except that an eligible rollover distribution does not include the following:

(1) Any distribution that is one (1) of a series of substantially equal periodic payments, paid not less frequently than annually, made for the life or life expectancy of the member and the member's designated beneficiary.

(2) Any distribution that is one (1) of a series of substantially equal periodic payments for a specified period of ten (10) years or more.

(3) Any distribution to the extent such distribution is required under Section 401(a)(9) of the Code.

(4) The portion of any distribution that is not includible in gross income, provided that any portion of any distribution that is not includible in gross income may be an eligible rollover distribution for purposes of a rollover to either:

(A) a traditional individual retirement account or individual retirement annuity; or

(B) a qualified trust which is part of a plan which is a defined contribution plan that will separately account for the taxable and nontaxable portions of the distribution, in a direct trustee-to-trustee transfer.

(5) Any distribution that is made upon hardship by the member.

(g) "Fund" or "funds" means the legislators' retirement system, public employees' retirement fund, state excise police, gaming agent, gaming control officer and conservation enforcement officers' retirement plan, judges' retirement fund, 1977 police officers' and firefighters' pension and disability fund, the prosecuting attorneys' retirement fund, the teachers' retirement fund, and funds funded through the pension relief fund.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 18-1-1; filed Jul 15, 2003, 4:30 p.m.: 26 IR 3880; readopted Jul 8, 2009: 20090715-IR-550090499ONA; adopted Apr 26, 2013: 20130508-IR-035130167ONA) NOTE: Transferred from the Board of Trustees of the Indiana State Teachers' Retirement Fund (550 IAC 6-1-1) to the Board of Trustees of the Indiana Public Retirement System (35 IAC 18-1-1) by P.L.23-2011, SECTION 22, effective July 1, 2011.

35 IAC 18-1-2 35 IAC 18-1-2 Rollover for purchase of service

35 IAC 18-1-2 Rollover for purchase of service

Authority: IC 5-10.5-4-2

Affected: IC 2-3.5-5-12; IC 5-10-5.5-7.5; IC 5-10.2-3-10; IC 5-10.3; IC 5-10.4; IC 5-10.5; IC 33-38-6; IC 33-38-7; IC 33-38-8; IC 36-8-8

Sec. 2. A fund may accept any portion of an eligible rollover distribution in payment of all or a portion of a member's purchase of service credit authorized under the fund's statutes. A fund may accept an eligible rollover distribution paid directly to the system in a direct rollover and which is authorized under the fund's statutes.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 18-1-2; filed Jul 15, 2003, 4:30 p.m.: 26 IR 3881; readopted Jul 8, 2009: 20090715-IR-550090499ONA; adopted Apr 26, 2013: 20130508-IR-035130167ONA) NOTE: Transferred from the Board of Trustees of the Indiana State Teachers' Retirement Fund (550 IAC 6-1-2) to the Board of Trustees of the Indiana Public Retirement System (35 IAC 18-1-2) by P.L.23-2011, SECTION 22, effective July 1, 2011.

35 IAC 18-1-3 35 IAC 18-1-3 Trustee-to-trustee transfer

35 IAC 18-1-3 Trustee-to-trustee transfer

Authority: IC 5-10.5-4-2

Affected: IC 10-5.5-7.5; IC 5-10.2-3-10; IC 5-10.3; IC 5-10.4; IC 5-10.5; IC 33-38-7; IC 33-38-8; IC 36-8-8

Sec. 3. A fund may accept a direct trustee-to-trustee transfer from a deferred compensation plan under Code Section 457(b) or a tax-sheltered annuity under Code Section 403(b) for the purchase of permissive service credit, as defined in Code Section 415(n)(3)(A) and which is authorized under the fund's statutes, or a repayment to which Code Section 415 does not apply by reason of Code Section 415(k)(3) and which is authorized under the fund's statutes.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 18-1-3; filed Jul 15, 2003, 4:30 p.m.: 26 IR 3881; readopted Jul 8, 2009: 20090715-IR-550090499ONA; adopted Apr 26, 2013: 20130508-IR-035130167ONA) NOTE: Transferred from the Board of Trustees of the Indiana State Teachers' Retirement Fund (550 IAC 6-1-3) to the Board of Trustees of the Indiana Public Retirement System (35 IAC 18-1-3) by P.L.23-2011, SECTION 22, effective July 1, 2011.

35 IAC 18-1-4 35 IAC 18-1-4 Trustee-to-trustee transfer

35 IAC 18-1-4 Trustee-to-trustee transfer

Authority: IC 5-10.5-4-2

Affected: IC 5-10-5.5-7.5; IC 5-10.2-3-1.2; IC 5-10.2-3-10; IC 5-10.3; IC 5-10.4; IC 5-10.5

Sec. 4. For purposes of accepting a rollover for the reason of purchasing service under IC 5-10.2-3-1.2(c)(4) or to be deposited into a rollover account described in IC 5-10.2-3-10, a member who is otherwise qualified to purchase service credit or rollover money into a rollover account may do so at any time.

(Board of Trustees of the Indiana Public Retirement System; 35 IAC 18-1-4; adopted Jun 20, 2014: 20140820-IR-035140335ONA; adopted Jun 26, 2020: 20200708-IR-035200360ONA)