Indiana Code 5-10.3-12

IC 5-10.3-12
Chapter 12. Public Employees' Defined Contribution Plan

IC 5-10.3-12-1
Applicability of chapter
     Sec. 1. (a) This chapter applies to an individual who, on or after the effective date of the plan:
        (1) becomes for the first time a full-time employee of the state (as defined in IC 5-10.3-7-1(d)) in a position that would otherwise be eligible for membership in the fund under IC 5-10.3-7; and
        (2) makes the election described in section 20 of this chapter to become a member of the plan.
    (b) This chapter does not apply to an individual who:
        (1) before the effective date of the plan, is or was a member (as defined in IC 5-10.3-1-5) of the fund; or
        (2) on or after the effective date of the plan, does not elect to participate in the plan.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-2
"Account"
Sec. 2. As used in this chapter, "account" means the plan account established for a member under section 21(b) of this chapter.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-3
"Annuity savings account"
Sec. 3. As used in this chapter, "annuity savings account" means the annuity savings account maintained under IC 5-10.2-2-2(a)(1).
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-4
"Board"
Sec. 4. As used in this chapter, "board" has the meaning set forth in IC 5-10.3-1-1.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-5
"Compensation"
Sec. 5. As used in this chapter, "compensation" has the meaning set forth in IC 5-10.2-3-2(a).
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-6
"Dies in the line of duty"
Sec. 6. As used in this chapter, "dies in the line of duty" has the meaning set forth in IC 5-10-11-2.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-7
"Effective date"
Sec. 7. As used in this chapter, "effective date" means 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.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-8
"Employer"
Sec. 8. As used in this chapter, "employer" means the state.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-9
"Employer contribution subaccount"
Sec. 9. As used in this chapter, "employer contribution subaccount" means the subaccount in a member's plan account established under section 21(b)(2) of this chapter.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-10
"Fund"
Sec. 10. As used in this chapter, "fund" has the meaning set forth in IC 5-10.3-1-3.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-11
"Internal Revenue Code"
Sec. 11. As used in this chapter, "Internal Revenue Code" has the meaning set forth in IC 5-10.2-1-3.5.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-12
"Member"
Sec. 12. As used in this chapter, "member" means an individual who has elected to participate in the plan.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-13
"Member contribution account"
Sec. 13. As used in this chapter, "member contribution subaccount" means the subaccount in a member's plan account established under section 21(b)(1) of this chapter.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-14
"Normal retirement age"
Sec. 14. As used in this chapter, "normal retirement age" for a member means the member is at least sixty-two (62) years of age with at least ten (10) years of participation in the plan.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-15
"Plan"
Sec. 15. As used in this chapter, "plan" refers to the public employees' defined contribution plan established by section 18 of this chapter.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-16
"Years of participation"
Sec. 16. As used in this chapter, "years of participation" means all periods of participation in the plan in a covered position, plus any additional service for which this chapter provides years of participation credit.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-17
Applicability of other laws
Sec. 17. Except as otherwise provided in this chapter or by federal law, and subject to the board obtaining the approval of the Internal Revenue Service as described in section 18(b) of this chapter, the provisions of IC 5-10.3 that apply to the annuity savings account apply to an account established under this chapter.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-18
Establishment and administration of plan; Internal Revenue Service approval
     Sec. 18. (a) The public employees' defined contribution plan is established for the purpose of providing amounts funded by an employer and a member for the use of the member or the member's beneficiaries or survivors after the member's retirement.
    (b) The board shall adopt provisions to implement the plan established under subsection (a) as follows:
        (1) The board shall initially offer the plan using the annuity savings account, subject to obtaining the approval of the Internal Revenue Service in a manner satisfactory to the board to preserve the qualified status of the plan and the fund. The plan as provided under this subdivision is a component within the fund.
        (2) If the approval of the Internal Revenue Service to offer the plan using the annuity savings account cannot be obtained in a manner satisfactory to the board, the board shall offer the plan as a separate fund under Section 401(a) or another applicable section of the Internal Revenue Code.
    (c) The board shall administer the plan.
    (d) The board may adopt a plan document that it considers appropriate or necessary to administer the plan.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-19

Authorization to request Internal Revenue Service rulings or determination letters
Sec. 19. The board may request from the Internal Revenue Service any rulings or determination letters that the board considers necessary or appropriate in order to implement or administer the plan.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-20
Plan membership; election; fund membership
     Sec. 20. (a) An individual who, on or after the effective date of the plan, becomes for the first time a full-time employee of the state (as defined in IC 5-10.3-7-1(d)) in a position that would otherwise be eligible for membership in the fund under IC 5-10.3-7 may elect to become a member of the plan. An election under this section:
        (1) must be made in writing;
        (2) must be filed with the board, on a form prescribed by the board; and
        (3) is irrevocable.
    (b) An individual who does not elect to become a member of the plan becomes a member (as defined in IC 5-10.3-1-5) of the fund.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-21
Plan; member accounts; rollover accounts
     Sec. 21. (a) The plan consists of the following:
        (1) Each member's contributions to the plan under section 23 of this chapter.
        (2) Contributions made by an employer to the plan on behalf of each member under section 24 of this chapter.
        (3) Rollovers to the plan by a member under section 29 of this chapter.
        (4) All earnings on investments or deposits of the plan.
        (5) All contributions or payments to the plan made in the manner provided by the general assembly.
    (b) The plan shall establish an account for each member. A member's account consists of two (2) subaccounts credited individually as follows:
        (1) The member contribution subaccount consists of:
            (A) the member's contributions to the plan under section 23 of this chapter; and
            (B) the net earnings on the contributions described in clause (A) as determined under section 22 of this chapter.
        (2) The employer contribution subaccount consists of:
            (A) the employer's contributions made on behalf of the member to the plan under section 24 of this chapter; and
            (B) the earnings on the contributions described in clause (A) as determined under section 22 of this chapter.
The board may combine the two subaccounts established under this subsection into a single account, if the board determines that a single

account is administratively appropriate and permissible under applicable law.
(c) If a member makes rollover contributions under section 30 of this chapter, the plan shall establish a rollover account as a separate subaccount within the member's account.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-23
Member contributions; rate; crediting; employer pick-up and payment
     Sec. 23. (a) Each member's contribution to the plan is equal to three percent (3%) of the member's compensation. The state shall pay the member's contribution on behalf of each member of the plan each year.
    (b) Member contributions will be credited to the member's account as specified in IC 5-10.2-3.
    (c) Although designated as employee contributions, the contributions made under subsection (a) are picked up and paid by

the state as the employer in lieu of the contributions being paid by the employee in accordance with section 414(h)(2) of the Internal Revenue Code. A member may not receive any amounts paid by the state under this section directly instead of having the amounts paid to the plan.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-24
Employer contributions; rate determination; amounts credited; minimum rate; electronic submission of contributions
     Sec. 24. (a) The state shall make employer contributions to the plan based on the rate determined under this section.
    (b) The employer's contribution rate for the plan shall be equal to the employer's contribution rate for the fund as determined by the board under IC 5-10.2-2-11(b). The amount credited from the employer's contribution rate to the member's account shall not be greater than the normal cost of the fund. Any amount not credited to the member's account shall be applied to the unfunded accrued liability of the fund as determined under IC 5-10.2-2-11(a)(3) and IC 5-10.2-2-11(a)(4).
    (c) The state's minimum contribution under this section is equal to three percent (3%) of the compensation of all members of the plan.
    (d) The state shall submit the employer contributions determined under this section as provided in IC 5-10.2-2-12.5.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-25
Member contributions belong to member; vesting schedule for employer contributions; forfeiture of amounts not vested
     Sec. 25. (a) Member contributions and net earnings on the member contributions in the member contribution subaccount belong to the member at all times and do not belong to the state.
    (b) A member is vested in the employer contribution subaccount in accordance with the following schedule:
    Years of participation in the    Vested percentage of
                        plan    employer contributions
                                and earnings
                            1            20%
                            2            40%
                            3            60%
                            4            80%
                            5            100%
For purposes of vesting in the employer contribution subaccount, only a member's full years of participation in the plan may be counted.
    (c) The amount that a member may withdraw from the member's account is limited to the vested portion of the account.
    (d) A member who attains normal retirement age is fully vested in all amounts in the member's account.
    (e) If a member separates from service with the state before the

member is fully vested in the employer contribution subaccount, the amount in the employer contribution subaccount that is not vested is forfeited as of the date of the member separates from service.
(f) Amounts forfeited under subsection (e) must be used to reduce the state's unfunded accrued liability of the fund as determined under IC 5-10.2-2-11(a)(3) and IC 5-10.2-2-11(a)(4).
(g) A member may not earn creditable service (as defined in IC 5-10.2-3-1(a)) under the plan.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-26
Member accounts; withdrawals; forms of payment
     Sec. 26. (a) Subject to the provisions of the Internal Revenue Code applicable to qualified plan distributions, a member who terminates service in a covered position is entitled to withdraw amounts in the member's account to the extent the member is vested in the account. A member must make a required withdrawal from the member's account not later than the required beginning date under the Internal Revenue Code.
    (b) The member may elect to have withdrawals paid as:
        (1) a lump sum;
        (2) a direct rollover to another eligible retirement plan; or
        (3) if the member has attained normal retirement age, as a monthly annuity in accordance with the rules of the board.
    (c) The board may establish a minimum account balance or a minimum monthly payment amount in order for a member to select the monthly annuity option. The board shall establish the forms of annuity by rule, in consultation with the board's actuary. The board shall give members information about these forms of payment and any information required by federal law to accompany such distributions.
    (d) Unless otherwise required by federal or state law, the requirements and rules that apply to the distribution of the annuity savings account apply to distributions from a member's account.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-27
Member accounts; beneficiary or survivor withdrawals; forms of payment
     Sec. 27. (a) If a member dies:
        (1) while in service in a position covered by the plan but not in the line of duty; or
        (2) after terminating service in a position covered by the plan but before withdrawing the member's account;
to the extent that the member is vested, the member's account shall be paid to the beneficiary or beneficiaries designated by the member on a form prescribed by the board. The amount paid shall be valued as provided in IC 5-10.2-2-3 and IC 5-10.2-2-4. The board shall invest the total amount in the member's account in the stable value fund not later than thirty (30) days after receiving notification of a

member's death.
    (b) If there is no properly designated beneficiary, or if no beneficiary survives the member, the member's account shall be paid to:
        (1) the surviving spouse of the member;
        (2) if there is not a surviving spouse, the surviving dependent or dependents of the member in equal shares; or
        (3) if there is not a surviving spouse or dependent, the member's estate.
    (c) The beneficiary or beneficiaries designated under subsection (a) or a survivor determined under subsection (b) may elect to have the member's account paid as:
        (1) a lump sum;
        (2) a direct rollover to another eligible retirement plan; or
        (3) a monthly annuity in accordance with rules of the board.
A monthly annuity is an option only on or after the beneficiary or survivor attains sixty-two (62) years of age. The board shall establish the forms of annuity by rule, in consultation with the board's actuary. Further, the board may establish a minimum account balance or a minimum monthly payment amount that is required in order for a beneficiary or survivor to select the monthly annuity option.
    (d) If a member dies in the line of duty while in service in a covered position, the designated beneficiary or beneficiaries or the surviving spouse or dependents, as applicable, are entitled to payment of the member's account as provided in this section. In addition, if the member was not fully vested in the employer contribution subaccount, the account is deemed to be fully vested for purposes of withdrawal under this section.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-28
Plan exempt from legal process; assignment of payments
     Sec. 28. (a) All assets in the plan are exempt from levy, sale, garnishment, attachment, or other legal process.
    (b) A member, beneficiary, or survivor may not assign any payment under this chapter except for the following:
        (1) Premiums on a life, hospitalization, surgical, or medical group insurance plan maintained in part by a state agency.
        (2) Dues to an association that proves to the board's satisfaction that the association has as members at least twenty percent (20%) of the retired members in the plan.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-29
Rollover contributions; rollover accounts
Sec. 29. (a) To the extent permitted by the Internal Revenue Code and the applicable regulations and guidance, the plan may accept, on behalf of any member who is employed in a covered position, a rollover distribution from any of the following:
(1) A qualified plan described in Section 401(a) or Section

403(a) of the Internal Revenue Code.
        (2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.
        (3) An eligible plan maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state under Section 457(b) of the Internal Revenue Code.
        (4) An individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code.
    (b) Any amounts rolled over under subsection (a) must be accounted for in a "rollover account" that is separate from the member's account in the plan. The member shall be fully vested in the member's rollover account.
    (c) A member may direct the investment of the member's rollover account into any alternative investment option that the board may make available to the member's rollover account under section 22 of this chapter.
    (d) A member may withdraw the member's rollover account from the plan in a lump sum or direct a rollover to an eligible retirement plan at any time. Upon attainment of normal retirement age, in addition to these payment options, the member may withdraw the member's rollover account as a monthly annuity as established by the board in accordance with the annuity options that are available for the member's account in the plan. A member must make a required withdrawal from the member's account in the plan not later than the required beginning date under the Internal Revenue Code.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-30
Member accounts; disability withdrawals; forms of payment
     Sec. 30. (a) If a member becomes disabled while in a covered position, subject to any federal law limitations concerning qualified plan distributions and the member's furnishing proof of the member's qualification for Social Security disability benefits to the board, to the extent that the member is vested, the member may make a withdrawal from the member's account.
    (b) The member may elect to have the withdrawal paid as:
        (1) a lump sum;
        (2) a direct rollover to another eligible retirement plan; or
        (3) a monthly annuity in accordance with the rules of the board.
    (c) The board may establish a minimum account balance or a minimum monthly payment amount in order for a member to select the monthly annuity option.
As added by P.L.22-2011, SEC.2.

IC 5-10.3-12-31
Effect of reemployment on plan participation
Sec. 31. (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 25(e) of this chapter may not be restored to the member's account.
    (b) An individual who elected under section 20 of this chapter to become a member of the plan resumes membership in the plan upon the individual's return to state employment.
    (c) An individual who did not elect to become a member of the plan resumes membership in the fund.
    (d) An individual who returns to state employment having had an opportunity to make an election under section 20 of this chapter during an earlier period of state employment is not entitled to a second opportunity to make an election under section 20 of this chapter.
As added by P.L.22-2011, SEC.2.