| HB1109 | VARIOUS PENSION MATTERS. (CARBAUGH M) Provides that the default investment option for the legislators' defined contribution plan is a target date fund rather than the Indiana public retirement system's (INPRS) consolidated retirement investment fund. Removes a requirement that only active members of the public employees' retirement fund (PERF) and the Indiana teachers' retirement fund (TRF) may make rollover distributions into annuity savings accounts (ASA) from other qualified retirement accounts. Allows any PERF or TRF member who terminates employment and is not currently employed in a covered position or for the same employer to suspend fund membership, retain the member's creditable service, and withdraw all or part of the amount in the member's ASA before retirement. Requires employers eligible to purchase death benefit fund coverage for certain employees to pay for the coverage annually rather than quarterly. Removes charitable contributions as a voluntary benefit deduction for the 1977 police officers' and firefighters' pension and disability fund and the state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement plan. Revises the effective date of participation by a political subdivision joining PERF from the earlier of January 1 or July 1 to a date approved by the INPRS board of trustees, but not later than 60 days after the date the political subdivision's PERF participation is approved. Makes technical corrections. (The introduced version of this bill was prepared by the interim study committee on pension management oversight.) |
| SB373 | PENSION SUPPLEMENTAL ALLOWANCE RESERVE ACCOUNTS. (WALKER G) Establishes supplemental allowance reserve accounts (reserve accounts) within the legislators' defined benefit plan, the state excise police, gaming agent, gaming control officer, and conservation enforcement officers' retirement plan (EGC), the public employees' retirement fund (PERF), and the pre-1996 and 1996 accounts of the Indiana state teachers' retirement fund (TRF) for the purpose of paying postretirement benefit increases, thirteenth checks, and other benefit changes or adjustments granted by the general assembly after June 30, 2018. Requires that, after June 30, 2018, the state lottery commission (commission) transfer each quarter $7,500,000 of the surplus revenue from the commission's administrative trust fund to the Indiana public retirement system (INPRS) for credit first to the pension stabilization fund and second to one or more of the reserve accounts as allocated by the INPRS board of trustees (board). (Current law transfers this amount to the pension stabilization fund.) Requires the contribution rate established by the INPRS board for 2019 and each year thereafter to include a surcharge that is paid to the applicable reserve account in an amount not to exceed 1% of the employer's payroll that is attributable to those employees who are members of PERF, the 1996 TRF account, or EGC. Provides that all amounts in the reserve account are available to pay postretirement benefit increases, thirteenth checks, or other benefit changes or adjustments, but a postretirement benefit increase, thirteenth check, or other benefit change or adjustment may be granted by the general assembly: (1) only in an odd-numbered calendar year; and (2) only if the postretirement benefit increase, thirteenth check, or other benefit change or adjustment: (A) may be funded from the uncommitted balance in the reserve account of the particular fund or plan; and (B) may be paid in the same amount or percentage, or by using the same formula or computation method, to members of each of the funds and plans. Makes changes to the actuarial evaluation and the actuarially determined contribution for each fund or plan to track postretirement benefit increases, thirteenth checks, and other benefit changes or adjustments granted by the general assembly after June 30, 2018, separately. Provides that, in each even-numbered calendar year, the INPRS board shall present to the interim study committee on pension management oversight an actuarial report concerning the status of each reserve account. Provides that the board may not pay a postretirement benefit change or adjustment, including a postretirement benefit increase, thirteenth check, or other benefit change or adjustment granted by the general assembly after June 30, 2018, unless the change or adjustment is actuarially prefunded. (The introduced version of this bill was prepared by the interim study committee on pension management oversight.) |