2007 Legislative Updates
Legislative Update
COLA
Survivor
Reemployed Retirees
Sudan Divestment
Military Service Credit
Retirement Medical Accounts
SurvivorA Cost of Living Adjustment (COLA) has been approved for Indiana retired teachers. This increase is effective January 1, 2008, (which members will receive February 1, 2008). The allowance is distributed as follows:
· If the member retired before July 2, 1999, the member will receive a two percent increase; or
· If the member retired after July 1, 1999, but before July 2, 2005, the member will receive a one percent increase.
As in all past COLAs, the percentage increase is only for the member’s Pension which includes past COLAs.
Note: COLA eligibility is based on a member’s latest retirement date. For reemployed retired members, the COLA eligibility date is the supplemental retirement benefit date.
Reemployed RetireesEffective July 1, 2007, a retired member who is a party in a divorce action and receives a final dissolution order may change their survivor beneficiary and form of benefit. The details on qualification and application for this survivor beneficiary and form of benefit change will be available on our website as of July 1, 2007. This information will not be available before July 1, 2007.
Sudan DivestmentReturning to work
Effective July 1, 2007, members will not have an earnings limitation or a supplemental benefit, which means no contributions will be made to TRF on the member’s behalf and no service credit will be earned if the member reemploys in a TRF covered position. If a member reemploys in a Public Employees’ Retirement Fund (PERF) covered position, the earnings limitation is $35,000. Members are responsible for notifying TRF of reemployment in a PERF covered position.
Returned to work
Members who were reemployed for at least 90 days prior to July 1, 2007, may apply for supplemental benefit for the reemployment period up to and including June 30, 2007.
Members who have been reemployed for less than 90 days as of July 1, 2007, may apply for a distribution from their ASA for contributions made on their behalf during the reemployment period.
Because the termination of accrual of supplemental benefits will occur by operation of law, there is no separation of service requirement for those already reemployed and eligible for a supplemental benefit. No supplemental benefit will accrue after June 30, 2007 .
Military Service CreditThis law requires the Public Employees' Retirement Fund (PERF) and TRF, in the capacity of shareholders, to: request that companies with certain business activities in Sudan cease those business activities, and for a company that is unresponsive to a request, sell or divest all publicly traded securities held by PERF or TRF in that company. PERF and TRF must report their Sudan-related activities to the General Assembly. This excludes private equity funds held by PERF and TRF from the divestment requirement.
Extends the period of time between active military service and when a member returns to an active teaching position, an approved four-year teacher training program or baccalaureate or post-baccalaureate education to 24 months. Extends the 24-month deadline for a period not to exceed 48 months after the member's discharge if the TRF board determines that an illness, injury, or disability related to the member's military service prevents the member from returning to active teaching service or to a teacher education program by the 24-month deadline.
Printer-friendly page » Go back to TRF Web siteThis bill establishes a retirement medical benefits account for elected officers, appointed officers, and employees of the executive, legislative, and judicial branches of state government as well as the surviving spouse or dependent of a retired participant. This law does not apply to public school teachers employed by local school corporations. The law does apply to TRF members who are employees of the State of Indiana. TRF does not administer this program. For more information contact the State Personnel Department.
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