Sec. 7. (a) If the employer or political subdivision fails to make payments required by this chapter, the amount payable may be:

(1) withheld by the state comptroller from moneys payable to the employer or subdivision and transferred to the fund or the plan, as applicable; or

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Terms Used In Indiana Code 5-10.3-6-7

  • Attorney: includes a counselor or other person authorized to appear and represent a party in an action or special proceeding. See Indiana Code 1-1-4-5
  • Board: as used in this article means the board of trustees of the Indiana public retirement system established by Indiana Code 5-10.3-1-1
  • Employer: as used in this article means the state for employees of the state and a political subdivision for its employees. See Indiana Code 5-10.3-1-2
  • Fund: as used in this article means the public employees' retirement fund. See Indiana Code 5-10.3-1-3
  • Member: as used in this article means persons qualifying for membership under Indiana Code 5-10.3-1-5
  • plan: refers to the public employees' defined contribution plan under Indiana Code 5-10.3-6-0.5
  • 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
  • Verified: when applied to pleadings, means supported by oath or affirmation in writing. See Indiana Code 1-1-4-5
(2) recovered in a suit in the circuit or superior court of the county in which the political subdivision is located. The suit shall be an action by the state on the relation of the board, prosecuted by the attorney general.

     (b) If:

(1) service credit is verified for a member who has filed an application for retirement benefits; and

(2) the member’s employer at the time the service credit was earned has not made contributions for or on behalf of the member for the service credit;

liability for the unfunded service credit shall be charged against the employer’s account and collected by the fund as provided in subsection (a). Processing of a member’s application for retirement benefits may not be delayed by an employer’s failure to make contributions for the service credit earned by the member while the member was employed by the employer.

     (c) If the employer or political subdivision fails to file the reports or records required by this chapter or by IC 5-10.3-7-12.5, the state comptroller shall:

(1) withhold the penalty described in IC 5-10.3-7-12.5 from money payable to the employer or the political subdivision; and

(2) transfer the penalty to the fund or the plan, as applicable.

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.195-1999, SEC.20; P.L.115-2009, SEC.11; P.L.241-2015, SEC.15; P.L.9-2024, SEC.125.