Indiana Code 5-10.2-3-2. Members’ contributions; employers picking up
(1) the basic salary earned by and paid to the member; plus
Terms Used In Indiana Code 5-10.2-3-2
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Board: as used in this article , means the board of trustees of the Indiana public retirement system established by Indiana Code 5-10.2-1-1
- Employer: as used in this article means the state for employees of the state and a political subdivision or school corporation for its employees. See Indiana Code 5-10.2-1-3
- Fund: as used in this article means the Indiana state teachers' retirement fund and the public employees' retirement fund. See Indiana Code 5-10.2-1-2
- Member: as used in this article means a member of the Indiana state teachers' retirement fund or of the public employees' retirement fund. See Indiana Code 5-10.2-1-4
(b) Except in cases where:
(1) the contribution is made on behalf of the member; or
(2) a retired member may not make contributions during a period of reemployment as provided in IC 5-10.2-4-8(e);
each member shall, as a condition of employment, contribute to the fund three percent (3%) of the member’s compensation.
(c) Except as provided in IC 5-10.2-4-8(e), a member of a fund may make contributions to the member’s annuity savings account in addition to the contributions required under subsection (b). The total amount of contributions that may be made to a member’s annuity savings account with respect to a payroll period under this subsection may not exceed ten percent (10%) of the member’s compensation for that payroll period. The contributions made under this subsection may be picked-up and paid by an employer as provided in subsection (d).
(d) In compliance with rules adopted by the board, an employer, under Section 414(h)(2) of the Internal Revenue Code, may pick-up and pay the contributions under subsection (c), subject to approval of the board and to the board’s receipt of a favorable private letter ruling from the Internal Revenue Service. The employer shall reduce the member’s compensation by an amount equal to the amount of the member’s contributions under subsection (c) that are picked-up by the employer. The board shall by rule establish the procedural requirements for employers to carry out the pick-up in compliance with Section 414(h)(2) of the Internal Revenue Code.
(e) A member’s contributions and interest credits belong to the member and do not belong to the state or political subdivision.
As added by Acts 1977, P.L.53, SEC.2. Amended by P.L.35-1985, SEC.8; P.L.55-1989, SEC.13; P.L.53-2000, SEC.1; P.L.246-2001, SEC.4; P.L.72-2007, SEC.3; P.L.1-2009, SEC.18; P.L.35-2012, SEC.40; P.L.195-2013, SEC.4.