Sec. 23. (a) This section does not apply to a member of the plan described in section 1(a)(7) of this chapter with respect to the member’s service with a volunteer fire department.

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Terms Used In Indiana Code 5-10.3-12-23

  • account: means the plan account established for a member under section 21(b) of this chapter. See Indiana Code 5-10.3-12-2
  • compensation: has the meaning set forth in Indiana Code 5-10.3-12-5
  • employer: means the state or a participating political subdivision. See Indiana Code 5-10.3-12-8
  • Internal Revenue Code: has the meaning set forth in Indiana Code 5-10.3-12-11
  • member: means an individual who has elected or is required to participate in the plan. See Indiana Code 5-10.3-12-12
  • plan: refers to the public employees' defined contribution plan established by section 18 of this chapter. See Indiana Code 5-10.3-12-15
  • Political subdivision: as used in this article means a county, city, town, township, political body corporate, public school corporation, public library, public utility of a county, city, town, township, and any department of, or associated with, a county, city, town, or township, which department receives revenue independently of, or in addition to, funds obtained from taxation. See Indiana Code 5-10.3-1-6
  • volunteer fire department: has the meaning set forth in IC 36-8-12-2. See Indiana Code 5-10.3-12-15.5
  • Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
     (b) Each member’s contribution to the plan is equal to three percent (3%) of the member’s compensation.

     (c) For a member who is an employee of the state, the state shall pay the member’s contribution on behalf of the member each year.

     (d) For a member who is an employee of a political subdivision, the political subdivision may pay all or part of the member’s contribution on behalf of the member.

     (e) To the extent permitted by the Internal Revenue Code and applicable regulations, a member of the plan may make contributions to the plan in addition to the contribution required under subsection (b). IC 5-10.2-3-2(c) and IC 5-10.2-3-2(d) govern additional contributions made under this subsection.

     (f) Member contributions will be credited to the member’s account as specified in IC 5-10.2-3.

     (g) Although designated as employee contributions, the contributions made under subsection (c) 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.

     (h) Although designated as employee contributions, the contributions made under subsection (d) by a political subdivision may be picked up and paid by the employer instead of the contributions being paid by the employee in accordance with Section 414(h)(2) of the Internal Revenue Code.

     (i) A member may not receive any amounts paid by an employer under this section directly instead of having the amounts paid to the plan.

As added by P.L.22-2011, SEC.2. Amended by P.L.5-2014, SEC.1; P.L.241-2015, SEC.32; P.L.96-2020, SEC.5.

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