Section 35 IAC 21-1-2 - Separate employer accounts procedureAuthority: IC 5-10.5-4-2
Affected: IC 5-10.2-2-6; IC 5-10.2-2-11; IC 5-10.3-6-4; IC 5-10.3-12-24
Sec. 2.
(a) There are two (2) components to the PERF hybrid plan: (1) The first component is the "defined benefit pension", which is funded entirely by employer contributions. The employer contribution rate is set by the INPRS board of trustees and based on the results of an annual actuarial valuation. (2) The second component is the annuity savings account (ASA) that is an accumulated savings balance funded by member contributions. Separate accounts are maintained for each member. (b) For PERF, INPRS maintains two (2) primary general ledger accounts, an employer reserve account and a benefits in force reserve account for the defined benefit pension. When a member commences receipt of the defined benefit pension, the present value of the benefit is computed by INPRS and that amount is deducted from the employer reserve account and transferred to the benefits in force reserve account. These assets are available to pay the benefits of any PERF hybrid plan member. Therefore, the employer reserve account balance represents the accumulated reserve for members who have not yet commenced their defined benefit pension (i.e., active and terminated vested members).Board of Trustees of the Indiana Public Retirement System; 35 IAC 21-1-2; adopted Dec 13, 2013: 20131225-IR-035130565ONA