Ind. Code ch. 5-10.3-6

Ind. Code ch. 5-10.3-6
in effect

Ind. Code § 5-10.3-6-0.5 "Plan"

Sec. 0.5. As used in this chapter, "plan" refers to the public employees' defined contribution plan under IC 5-10.3-12. As added by P.L.241-2015, SEC.11.

Ind. Code § 5-10.3-6-1 Admission to fund or plan

Sec. 1. (a) The governing body of a political subdivision may adopt an ordinance or resolution specifying a departmental, occupational, or other definable classification of employees: (1) who are required to become members of the fund; (2) who are required to become members of the plan; or (3) who may each elect whether to become members of the fund or members of the plan. An ordinance or resolution adopted by the governing body of a political subdivision under this subsection that specifies the departmental, occupational, or other definable classification of employees who are required under subdivision (2) to become members of the plan or who may under subdivision (3) elect whether to become members of the fund or plan may not take effect before January 2, 2016. A political subdivision may become a participant in the fund or the plan, or both, as applicable, if the ordinance or resolution is filed with and approved by the board. (b) An ordinance or resolution adopted under subsection (a) that includes a provision described under subsection (a)(3) may also include one (1) of the following provisions: (1) If an employee who may elect whether to become a member of the fund or a member of the plan does not make an election under IC 5-10.3-7-1.1, the employee becomes a member of the plan. (2) If an employee who may elect whether to become a member of the fund or a member of the plan does not make an election under IC 5-10.3-12-20.5, the employee becomes a member of the fund. If an ordinance or resolution adopted under subsection (a) that includes a provision described under subsection (a)(3) does not include either of the provisions described in subdivision (1) or (2), subdivision (2) applies to the departmental, occupational, or other definable classification of employees that may elect to become members of the fund or members of the plan. (c) If an ordinance or resolution adopted under subsection (a) includes a provision described under subsection (a)(2) or (a)(3), or both, the ordinance or resolution must include a specification of the political subdivision's contribution rate to the plan as a percentage of each member's compensation. Each year, the political subdivision's contribution rate specified under this subsection must be greater than or equal to zero percent (0%) and may not exceed the percentage that would produce the normal cost for participation in the fund under IC 5-10.2-2-11, if the political subdivision were a participant in the fund. If a provision specifying the political subdivision's contribution rate is not included in the ordinance or resolution, the political subdivision's contribution rate to the plan is zero percent (0%). (d) If an ordinance or resolution adopted under subsection (a) includes a provision described under subsection (a)(2) or (a)(3), or both, the ordinance or resolution must include a specification of the political subdivision's matching rate that is the percentage of each member's additional contributions to the plan that the political subdivision will match. A political subdivision may specify only: (1) zero percent (0%); or (2) fifty percent (50%). If a provision specifying the political subdivision's matching rate is not included in the ordinance or resolution, the political subdivision's matching rate for the plan is zero percent (0%). (e) A governing body may include in its ordinance or resolution adopted under subsection (a) a determination of the date from which prior service for its employees will be computed. Creditable service for these employees is determined under IC 5-10.3-7-7.5. (f) The effective date of participation is a date approved by the board, either a date suggested by the political subdivision or a date selected by the board, but the date may not be later than sixty (60) days after the date of approval. However, no retirement benefit may be paid until six (6) months after the effective date of participation. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.60-1987, SEC.1; P.L.241-2015, SEC.12; P.L.179-2018, SEC.9.

Ind. Code § 5-10.3-6-1.1 Volunteer fire departments; plan participation

Sec. 1.1. (a) This section applies to a political subdivision that is served by a volunteer fire department. (b) The following definitions apply throughout this section: (1) "Nominal compensation" has the meaning set forth in IC 36-8-12-2. (2) "Volunteer fire department" has the meaning set forth in IC 36-8-12-2. (c) The governing body of a political subdivision may adopt an ordinance or resolution specifying the departmental, occupational, or other definable classifications of members of the volunteer fire department that are required to become members of the plan. A political subdivision may become a participant in the plan if the ordinance or resolution is filed with and approved by the board. (d) The governing body of a political subdivision shall determine the amounts of the contributions that the political subdivision will make on behalf of the eligible members of the volunteer fire department. However, the contributions that are made on behalf of each eligible member of the volunteer fire department in any specified departmental, occupational, or other definable classification must be equal. The governing body of the political subdivision shall specify the amounts of the contributions that the political subdivision will make for each departmental, occupational, or other definable classification of the members of the volunteer fire department in an ordinance or resolution adopted under subsection (c) and in any subsequent ordinance or resolution that changes the contribution amounts. If the governing body of the political subdivision changes the contribution amounts, the governing body shall file the ordinance or resolution with the board. The new contribution amounts become effective on the later of the date on which the ordinance or resolution is approved by the board or the effective date specified in the resolution. (e) Contributions made under this section on behalf of the eligible members of a volunteer fire department may not be considered in the computation of nominal compensation for purposes of IC 36-8-12. (f) An individual who participates in the plan under subsection (c) does not earn creditable service (as defined in IC 5-10.2-3-1) in the fund for the individual's service with a volunteer fire department. As added by P.L.96-2020, SEC.1. Amended by P.L.92-2021, SEC.7.

Ind. Code § 5-10.3-6-1.5 Authorized agent in third class city or town

Sec. 1.5. (a) This section applies to a third class city or a town. (b) The clerk-treasurer of a city or town is that city's or town's authorized agent for all matters concerning the fund and the plan. As added by P.L.69-1995, SEC.1. Amended by P.L.241-2015, SEC.13.

Ind. Code § 5-10.3-6-2 Preliminary survey

Sec. 2. The governing body may request a preliminary survey, at its expense as determined by the board, to determine the estimated cost of participation. The board and its actuary shall give an estimate of the costs, the benefits, and other appropriate information. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.246-2001, SEC.10; P.L.23-2011, SEC.17.

Ind. Code § 5-10.3-6-3 Powers of governing body

Sec. 3. Powers of the Governing Body. After a political subdivision becomes a participant, its governing body may make appropriations, make payments, and do all things required by this article. As added by Acts 1977, P.L.53, SEC.3.

Ind. Code § 5-10.3-6-4 Accounts

Sec. 4. The board shall maintain separate accounts for each contribution rate group. Credits and charges to these accounts shall be made as prescribed in IC 5-10.2-2 and IC 5-10.3-12, as applicable. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.23-2011, SEC.18; P.L.241-2015, SEC.14.

Ind. Code § 5-10.3-6-5 Repealed

As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.47-1985, SEC.6; P.L.54-1993, SEC.12. Repealed by P.L.23-2011, SEC.31.

Ind. Code § 5-10.3-6-6 Appropriations and payments by school corporations

Sec. 6. A school corporation shall make the appropriations and payments required of participating political subdivisions from its education fund or operations fund in accordance with the categories of expenditures established under IC 20-42.5-3. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.238-2019, SEC.6.

Ind. Code § 5-10.3-6-7 Collection of payments

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 (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.

Ind. Code § 5-10.3-6-8 Withdrawal of political subdivision

Sec. 8. (a) As used in this section, "withdrawing political subdivision" means a political subdivision that takes an action described in subsection (b). (b) Subject to the provisions of this section, a political subdivision may do the following: (1) Stop its participation in the fund and withdraw all of the political subdivision's employees from participation in the fund. (2) Withdraw a departmental, an occupational, or other definable classification of employees from participation in the fund. (3) Stop the political subdivision's participation in the fund by: (A) selling all of the political subdivision's assets; or (B) ceasing to exist as a political subdivision. (c) The withdrawal of a political subdivision's participation in the fund is effective on a termination date established by the board. The termination date may not occur before all of the following have occurred: (1) The withdrawing political subdivision has provided written notice of the following to the board: (A) The withdrawing political subdivision's intent to cease participation. (B) The names of the withdrawing political subdivision's current employees and former employees as of the date on which the notice is provided. (2) The expiration of: (A) a ninety (90) day period following the filing of the notice with the board, for a withdrawing political subdivision that sells all of the withdrawing political subdivision's assets or that ceases to exist as a political subdivision; or (B) a two (2) year period following the filing of the notice with the board, for all other withdrawing political subdivisions. (3) The withdrawing political subdivision takes all actions required in subsections (d) through (g). (d) With respect to retired members who have creditable service with the withdrawing political subdivision, the withdrawing political subdivision must contribute to the fund any additional amounts that the board determines are necessary to provide for reserves with sufficient assets to pay all future benefits from the fund to those retired members attributable to service with the withdrawing political subdivision. The contribution by the withdrawing political subdivision must be made in a lump sum or in a series of payments over a term determined by the board that does not exceed thirty (30) years. (e) A member who is an employee of the political subdivision as of the date of the notice under subsection (c) is vested in the pension portion of the member's retirement benefit. The withdrawing political subdivision must contribute to the fund the amount the board determines is necessary to fund fully the vested benefit attributable to service with the withdrawing political subdivision. The contribution by the withdrawing political subdivision must be made in a lump sum or in a series of payments over a term determined by the board that does not exceed thirty (30) years. (f) A member who is covered by subsection (e) and who is at least sixty-five (65) years of age may elect to retire under IC 5-10.2-4-1 even if the member has fewer than ten (10) years of service. The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of service. (g) With respect to members of the fund who have creditable service with the withdrawing political subdivision and who are not employees as of the date of the notice under subsection (c), the withdrawing political subdivision must contribute the amount that the board determines is necessary to fund fully the service for those members that is attributable to service with the withdrawing political subdivision. The contribution by the withdrawing political subdivision must be made in a lump sum or in a series of payments over a term determined by the board that does not exceed thirty (30) years. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.28-1984, SEC.5; P.L.22-1993, SEC.4; P.L.241-2015, SEC.16.

Ind. Code § 5-10.3-6-8.2 Freeze in participation by political subdivision

Sec. 8.2. (a) The following definitions apply throughout this section: (1) "Freeze" or "freeze participation in the fund" means to take an action described under subsection (b)(1), (b)(2), or (b)(3). (2) "Freezing political subdivision" means a political subdivision that freezes its participation in the fund. (b) Subject to the provisions of this section, a political subdivision that did not take an action described in this subsection before the effective date of this section may adopt an ordinance or resolution, which may not be effective before January 2, 2016, to do the following: (1) Determine a date (which may not be before January 2, 2016): (A) before which newly hired employees of a departmental, occupational, or other definable classification of employees are eligible to participate in the fund; and (B) on or after which newly hired employees of the departmental, occupational, or other definable classification of employees are not eligible to participate in the fund. (2) Determine a date (which may not be before January 2, 2016): (A) before which newly hired employees of a departmental, occupational, or other definable classification of employees are required to participate in the fund; and (B) on or after which newly hired employees of the departmental, occupational, or other definable classification of employees are allowed to choose whether to participate in a retirement benefit system other than the fund. (3) Modify the political subdivision's employee classification scheme as of a specified date (which may not be before January 2, 2016) in such a way that there is at least one (1) position that: (A) is covered by the fund before the specified date; and (B) is not covered by the fund on or after the specified date. (c) A political subdivision that freezes its participation in the fund after December 31, 2010, shall do the following: (1) Provide written notice of the following to the board: (A) The action that was taken under subsection (b) by the freezing political subdivision. (B) The effective date of the action taken under subsection (b). (C) The employee classifications that: (i) are covered by the fund before the effective date of the freeze; and (ii) will not be covered by the fund on or after the effective date of the freeze. (D) The names of the freezing political subdivision's current employees and former employees as of the date on which the notice is provided. (2) Comply with subsections (d) through (f). (d) With respect to retired members who have creditable service with the freezing political subdivision, the freezing political subdivision shall contribute to the fund any additional amounts that the board determines are necessary to provide for reserves with sufficient assets to pay all future benefits from the fund to those retired members attributable to service with the freezing political subdivision. The board shall collaborate with the freezing political subdivision by sharing the actuarial method and report. The contribution by the freezing political subdivision must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years, as determined by the freezing political subdivision. (e) With respect to members of the fund who have creditable service with the freezing political subdivision and who are not employees as of the effective date on which the political subdivision freezes its participation in the fund, the freezing political subdivision shall contribute the amount that the board determines is necessary to fund fully the service for those members that is attributable to service with the freezing political subdivision. The board shall collaborate with the freezing political subdivision by sharing the actuarial method and report. The contribution by the freezing political subdivision must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years, as determined by the freezing political subdivision. (f) With respect to members of the fund who are employees of the freezing political subdivision as of the date of the notice under subsection (c), the freezing political subdivision shall continue to contribute the amounts required under IC 5-10.2-2-11 for those employees for the duration of their employment with the freezing political subdivision. In addition, the freezing political subdivision shall contribute to the fund the amount the board determines is necessary to fund fully the benefits attributable to service with the freezing political subdivision that are vested or will become vested and are not anticipated to be fully funded through the continuing contributions under IC 5-10.2-2-11 during the duration of the members' employment with the freezing political subdivision. The board shall collaborate with the freezing political subdivision by sharing the actuarial method and report. The contribution by the freezing participating entity must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years, as determined by the freezing political subdivision. (g) The Indiana public retirement system may do any of the following to determine a political subdivision's compliance with this section: (1) Require reports from the political subdivision. (2) Audit the political subdivision. As added by P.L.241-2015, SEC.17.

Ind. Code § 5-10.3-6-8.3 Retirement plans offered by political subdivision that withdraws from or freezes participation in fund

Sec. 8.3. (a) This section applies to a political subdivision that: (1) either: (A) withdraws from the fund under section 8 of this chapter; or (B) freezes its participation in the fund as described in section 8.2 of this chapter; and (2) chooses thereafter to offer a retirement plan to its employees. (b) Except as provided in subsection (c), a political subdivision to which this section applies may offer a retirement plan to its employees only by participating in the defined contribution plan under IC 5-10.3-12. (c) If, on July 1, 2015, a political subdivision to which this section applies has established or is otherwise participating in a defined contribution plan other than the defined contribution plan under IC 5-10.3-12, the political subdivision may continue to participate in the defined contribution plan in which the political subdivision participated on July 1, 2015. As added by P.L.241-2015, SEC.18.

Ind. Code § 5-10.3-6-8.5 Certain state university employees involved in health care

Sec. 8.5. (a) This section only applies if: (1) certain employees of a state university in a departmental, occupational, or other definable classification involved in health care are terminated from employment with the state university as a result of: (A) a lease or other transfer of university property to a nongovernmental entity; or (B) a contractual arrangement with a nongovernmental entity to perform certain state university functions; (2) the state university requests coverage under this section from the board; and (3) the board approves the request. (b) The withdrawal of the employees described in subsection (a) from the fund is effective on a termination date established by the board. The board may not establish a termination date that occurs before all of the following have occurred: (1) The state university has requested coverage under this section and provided written notice of the following to the board: (A) The intent of the state university to terminate the employees from employment. (B) The names of the terminated employees as of the date that the termination is to occur. (2) The expiration of a thirty (30) day period following the filing of the notice with the board. (3) The state university fully complies with subsection (c). (c) A member who is an employee of the state university described in subsection (a) as of the date of the notice under subsection (b) and who is listed in the notice under subsection (b) is vested in the pension portion of the member's retirement benefit. The state university must contribute to the fund the amount the board determines is necessary to completely fund the vested benefit. The contribution by the state university must be made in a lump sum or in a series of payments determined by the board. (d) A member who is covered by subsection (c) and who is at least sixty-five (65) years of age may elect to retire under IC 5-10.2-4-1 even if the member has less than ten (10) years of service. The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of creditable service. (e) The board shall evaluate each withdrawal under this section to determine if the withdrawal affects the fund's compliance with Section 401(a) of the Internal Revenue Code of 1954, as in effect on September 1, 1974. The board may deny an employee permission to withdraw if the denial is necessary to achieve compliance with Section 401(a) of the Internal Revenue Code of 1954, as in effect on September 1, 1974. As added by P.L.38-1996, SEC.1.

Ind. Code § 5-10.3-6-8.9 State employee terminations resulting from lease or contractual arrangement with nongovernmental entity

Sec. 8.9. (a) This section applies when certain employees of the state in particular departmental, occupational, or other definable classifications are terminated from employment with the state as a result of: (1) a lease or other transfer of state property to a nongovernmental entity; or (2) a contractual arrangement with a nongovernmental entity to perform certain state functions. (b) The governor shall request coverage under this section from the board whenever an employee of the state is terminated as described in subsection (a). (c) The board must approve a request from the governor under subsection (b) unless approval violates subsection (k), federal or state law, or the terms of the fund. (d) As used in this section, "early retirement" means a member is eligible to retire with a reduced pension under IC 5-10.2-4-1, because the member: (1) is at least fifty (50) years of age; and (2) has at least fifteen (15) years of creditable service. (e) As used in this section, "normal retirement" means a member is eligible to retire under IC 5-10.2-4-1, because: (1) the member is at least sixty-five (65) years of age and has at least ten (10) years of creditable service; (2) the member is at least sixty (60) years of age and has at least fifteen (15) years of creditable service; or (3) the member's age in years plus the member's years of service is at least eighty-five (85) and the member is at least fifty-five (55) years of age. (f) The withdrawal of the employees described in subsection (a) from the fund is effective on a termination date established by the board. The board may not establish a termination date that occurs before all of the following have occurred: (1) The governor has requested coverage under this section and provided written notice of the following to the board: (A) The intent of the state to terminate the employees from employment. (B) The names of the terminated employees as of the date that the termination is to occur. (2) The expiration of a thirty (30) day period following the filing of the notice with the board. (3) The state complies with subsections (g) and (i). (g) A member who: (1) is an employee of the state described in subsection (a) with at least twenty-four (24) months of creditable service as of the date of the notice under subsection (f); and (2) is listed in the notice under subsection (f); is vested in the pension portion of the member's retirement benefit. The state must contribute to the fund the amount the board determines is necessary to completely fund the vested benefit. The contribution by the state must be made in a lump sum or in a series of payments determined by the board. The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of creditable service. (h) A member who is covered by subsection (g) and who is at least sixty-five (65) years of age as of the date of the notice under subsection (f) may elect to retire under IC 5-10.2-4-1 even if the member has less than ten (10) years of service. The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of creditable service. (i) A member who is covered by subsection (f) and who, as of the date of the notice under subsection (f), is less than twenty-four (24) months from being eligible for normal or early retirement under IC 5-10.2-4-1 may elect to retire by purchasing the service credit needed for retirement under the following conditions: (1) The state shall contribute to the fund an amount determined under IC 5-10.2-3-1.2 and payable from the sources described in subsection (j) sufficient to pay the member's contributions required for the member's purchase of the service credit the member needs to retire. (2) The maximum amount of creditable service that the state may purchase for a member under this subsection is twenty-four (24) months. (3) The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of creditable service plus all other service for which the fund gives credit, including the creditable service purchased under this subsection. (j) The amounts that the state is required to contribute to the fund under subsection (i) must come from the following sources: (1) If the state receives monetary payments under the lease or contractual arrangement described in subsection (a), the proceeds of the monetary payments received by the state. The state may not require, as a condition of the transaction to transfer state property or have certain state functions performed by a nongovernmental entity, that the nongovernmental entity directly or indirectly pay the amounts that the state is required to contribute under subsection (i). (2) If the state does not receive any monetary payments under the lease or contractual arrangement described in subsection (a), any remaining appropriations made to the state department, agency, or other entity terminating the employees described in subsection (a). (3) If the sources described in subdivisions (1) and (2) do not fully fund the amounts that the state is required to contribute to the fund under subsection (i), the board shall request that the general assembly appropriate the amount necessary to fully fund the state's required contribution under subsection (i) in the next biennial state budget. (k) The board shall evaluate each withdrawal under this section to determine if the withdrawal affects the fund's compliance with Section 401(a) of the Internal Revenue Code of 1954, as in effect on September 1, 1974. The board may deny an employee permission to withdraw if the denial is necessary to achieve compliance with Section 401(a) of the Internal Revenue Code of 1954, as in effect on September 1, 1974. As added by P.L.47-2006, SEC.3 and P.L.158-2006, SEC.3.

Ind. Code § 5-10.3-6-9 Participation of political subdivision with retirement system

Sec. 9. Participation of Political Subdivision with Retirement Systems. If a political subdivision has a retirement system for its employees, it must conduct a referendum, at which seventy-five percent (75%) of all active and retired members vote for participation, before it may follow the procedures in this chapter for participation. As added by Acts 1977, P.L.53, SEC.3.

Ind. Code § 5-10.3-6-10 Transfer of assets

Sec. 10. (a) If a political subdivision with a retirement system becomes a participant, the moneys and securities in the retirement system shall be transferred to the fund. If the securities to be transferred are not acceptable to the board, they shall be converted to cash, which shall be transferred to the fund. (b) If there are insufficient funds transferred under subsection (a), then the political subdivision shall pay the fund, either in a single payment or in installment payments approved by the board, the amount needed. If the political subdivision is unable to make any payment, the board may reduce proportionately each benefit payable to retired members. (c) The liabilities of a retirement system which is transferred to the fund are not liabilities of the fund, except as provided by agreement between the fund and the political subdivision. As added by Acts 1977, P.L.53, SEC.3. Amended by P.L.23-2011, SEC.19.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/5Fetched: 10/17/2026

Starting a business in Indiana? Indiana LLC guide: costs and requirements