Authors: Senator Ed Charbonneau
Provides that, after June 30, 2014, a political subdivision that is eligible to participate in the public employees' retirement fund (PERF) shall provide retirement, disability, and survivor benefits using PERF to its employees employed in positions covered by PERF. Permits a political subdivision that established a pension or retirement system before July 1, 2014, to continue that pension or retirement plan for employees who are participants in the pension or retirement plan on July 1, 2014. Requires an individual who becomes a state employee after June 30, 2014, in a position that would otherwise be eligible for membership in PERF to become a member of the defined contribution (ASA only) plan (plan). Permits a political subdivision to elect to participate in the plan. Requires the board of trustees (board) of the Indiana public retirement system (system) to provide retiring and retired PERF and teachers' retirement fund (TRF) members the option of converting the member's annuity savings account (ASA) into an annuity that is administered and managed by the system's employees. Requires the board to set in January and June each year, beginning in July 2014, the interest rate (annuity interest rate) used to determine the annuity amount purchasable by a PERF or TRF member who elects to purchase an annuity provided by the amount credited to the member in the member's ASA. Provides that the annuity interest rate is equal to the average of the rate of return earned by the retirement allowance accounts of PERF and TRF during the six immediately preceding calendar years, except that the annuity interest rate may not be less than: (1) 6.5% in 2014; (2) 5.5% in 2015; and (3) 4.5% in 2016. Makes conforming changes.