Sec. 9.5. (a) The fund may accept cash rollover contributions from a member who is making payments for additional service credits under this chapter if the following conditions are met:

(1) The rollover contribution must represent:

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Terms Used In Indiana Code 5-10.3-7-9.5

  • 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 5-10.3-1-1
  • Contract: A legal written agreement that becomes binding when signed.
  • 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
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Fund: as used in this article means the public employees' retirement fund. See Indiana Code 5-10.3-1-3
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Member: as used in this article means persons qualifying for membership under Indiana Code 5-10.3-1-5
  • 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
  • Trustee: A person or institution holding and administering property in trust.
(A) all or a portion of the member’s interest in a retirement plan of a former employer which is qualified under Section 401(a) of the Internal Revenue Code and which permits the interest to be transferred to the fund as a qualifying rollover contribution under the Internal Revenue Code;

(B) all or a portion of the member’s interest from an individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code;

(C) all or a portion of the member’s interest in:

(i) a qualified plan described in Section 403(a) of the Internal Revenue Code; or

(ii) an annuity contract or account described in Section 403(b) of the Internal Revenue Code; or

(D) all or a portion of the member’s interest in an eligible plan that is maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state under Section 457(b) of the Internal Revenue Code.

(2) The amount of the rollover contributions may not exceed the amount of payment required to purchase the service credits under this chapter.

(3) The rollover contributions may contain only tax-deferred contributions and earnings on the contributions, and may not include any post-tax contributions.

(4) The member must be otherwise eligible to purchase the service credit under this chapter.

     (b) To the extent permitted by the Internal Revenue Code and the applicable regulations, the fund may accept, on behalf of a member who is purchasing permissive service credit under this chapter, a trustee to trustee transfer from:

(1) an annuity contract or account described in Section 403(b) of the Internal Revenue Code; or

(2) an eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.

     (c) The fund, the board, and their respective members, officers, and employees do not have any responsibility or liability with respect to the federal and state income tax consequences of any transfer made to the fund under this section. The board may require, as a condition to the fund’s acceptance of a rollover contribution:

(1) satisfactory evidence that the proposed transfer is a qualifying rollover contribution under the Internal Revenue Code; and

(2) reasonable releases or indemnifications from the member against any and all liabilities that may be connected with the transfer.

     (d) Cash transferred to the fund as a rollover contribution shall be deposited in the retirement allowance account.

     (e) A member who terminates employment before satisfying the eligibility requirements necessary for a pension or disability benefit may withdraw the member’s rollover contribution, plus accumulated interest, after submitting a properly completed application for a refund to the fund.

     (f) Except as provided in this section, the fund shall not accept any other rollover contributions from a member.

     (g) The board shall administer this section in accordance with the rollover provisions of the Internal Revenue Code and any applicable regulations.

As added by P.L.5-1997, SEC.7. Amended by P.L.61-2002, SEC.8; P.L.40-2017, SEC.13.