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What are the rules for state employees who are privatized?
Indiana Code 5-10.3-6-8.9
For members who are state employees and whose positions are privatized by the state of Indiana (that is, determined by the governor to be terminated as a result of a lease or other transfer of state property to a nongovernmental entity or a contractual arrangement with a nongovernmental entity to perform certain state functions), provides:
Q: When did this law go into effect?
A: This law went into effect on Dec. 31, 2005.
Q: Does this law allow the state to purchase service credit for members whose positions are privatized?
A: Yes, this law allows the state to purchase up to two years of service credit for members if they are within two years of being eligible for a reduced or a full pension benefit as of the date of the governor's notice.
Q: Does this law prohibit a member from purchasing additional service credit?
A: No. A member may purchase service credit while still employed in his or her PERF-covered position according to the guidelines provided in Indiana Code 5-10.2-3-1.2.
Q: Members having more than two years of creditable years of service are vested in their PERF benefit after privatization. If, prior to being age eligible for a pension benefit, a member takes a distribution of his or her Annuity Savings Account, will he or she still be able to draw a pension benefit at a later date?
A: A member who is vested and has separated from employment in a covered position for at least 30 days may withdraw his or her Annuity Savings Account (ASA) and retain his or her pension benefit. See Indiana Code 5-10.2-3-6.5 for certain restrictions.