Sec. 19. (a) The executive director shall adopt a resolution providing that the employees of the authority who are eligible to participate in the public employees’ retirement fund under the eligibility requirements set forth in IC 5-10.2 and IC 5-10.3 shall participate in the fund.

     (b) In the resolution adopted under subsection (a), the executive director may determine the date from which prior service for an employee of the authority will be computed and purchase the prior service subject to the following and in accordance with this section:

(1) Before the member retires, the authority shall make contributions to the fund that are equal to the product of the following:

(A) The member’s salary at the time of the service credit purchase.

(B) A percentage rate, as determined by the actuary of the fund, based on the age of the member at the time the authority makes a contribution for service credit and computed to result in a contribution amount that approximates the actuarial present value of the benefit attributable to the service credit purchased.

(C) The number of years of service credit that the authority intends to purchase.

(2) Contributions for any accrued interest, at a rate determined by the actuary of the fund, for the period from the member’s initial membership in the fund to the date payment is made.

     (c) The authority shall verify that the member’s prior service is valid.

     (d) The board of trustees of the Indiana public retirement system established by IC 5-10.5-3-1 may deny the purchase of service credit if the purchase would exceed the limitations under Section 415 of the Internal Revenue Code.

     (e) The authority may fund prior member contribution amounts described in IC 5-10.3-7-9(b) at an amount that may not exceed three percent (3%) of the member’s salary at the time the contributions are made for each year of service purchased.

     (f) The authority may submit contributions to the retirement medical benefits account established by IC 5-10-8.5-11 based on the year or years of service purchased.

As added by P.L.127-2022, SEC.23.