Section 5-10.3-7-4.7 - Purchase of service credit earned in 1977 police officers' and firefighters' pension and disability fund(a) As used in this section, "1977 fund" refers to the 1977 police officers' and firefighters' pension and disability fund established by IC 36-8-8-4.(b) A member may purchase and claim service credit for the member's prior service in a position covered by the 1977 fund subject to the following:(1) The member must have at least one (1) year of credited service in the fund.(2) The member must not have attained vested status in and may not be an active member of the 1977 fund.(3) The member must have at least ten (10) years of credited service in the fund before the member may claim the service credit.(4) Before the member retires, the member must make contributions to the fund as follows: (A) Contributions that are equal to the product of the following:(i) The member's salary at the time the member makes a contribution for the service credit.(ii) A percentage rate, as determined by the actuary of the fund, based on the age of the member at the time the member makes a contribution for service credit and computed to result in a contribution amount that approximates the actuarial present value of the benefit attributable to the service credit purchased.(iii) The number of years of 1977 fund service the member intends to purchase.(B) Contributions for any accrued interest, at a rate determined by the actuary of the fund, for the period from the member's initial membership in the fund to the date payment is made by the member.(5) The member must receive verification from the fund that the member's service in the 1977 fund is valid.(c) If a member meets the requirements to purchase service credit under this section and applies to purchase service credit under this section, the board shall transfer from the 1977 fund to the retirement allowance account of the fund: (1) the member's contributions made under IC 36-8-8-8(a), if the contributions were not returned to the member under IC 36-8-8-8(c); plus(2) the present value of the unreduced benefit payable upon retirement under IC 36-8-8-10 that is attributable to the member. The amount a member must contribute to the fund under subsection (b)(4) is reduced by the amount transferred to the fund under this subsection.
(d) A member who: (1) terminates employment before satisfying the eligibility requirements necessary to receive a monthly allowance; or(2) receives a monthly allowance for the same service from another tax supported public employee retirement plan other than under the federal Social Security Act; may withdraw the personal contributions made under this section plus accumulated interest after submitting to the fund a properly completed application for a refund.
(e) The following apply to the purchase of service credit under this section: (1) The board may allow a member to make periodic payments of the contributions required for the purchase of the service credit. The board shall determine the length of the period during which the payments must be made.(2) The board may deny an application for the purchase of service credit if the purchase would exceed the limitations under Section 415 of the Internal Revenue Code.(3) A member may not claim the service credit for purposes of determining eligibility or computing benefits unless the member has made all payments required for the purchase of the service credit.(f) If the requirements of subsection (b) are satisfied, credit for the member's service in a position covered by the 1977 fund that is purchased under this section is waived.(g) To the extent permitted by the Internal Revenue Code and applicable regulations, the fund may accept, on behalf of a fund member who is purchasing service credit under this section, a rollover of a distribution from any of the following: (1) A qualified plan described in Section 401(a) or 403(a) of the Internal Revenue Code.(2) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.(3) An eligible plan that is maintained by a state, a political subdivision of a state, or an agency or instrumentality of a state or a political subdivision of a state under Section 457(b) of the Internal Revenue Code.(4) An individual retirement account or annuity described in Section 408(a) or 408(b) of the Internal Revenue Code.(h) To the extent permitted by the Internal Revenue Code and applicable regulations, the fund may accept, on behalf of a member who is purchasing service credit under this section, a trustee to trustee transfer from any of the following: (1) An annuity contract or account described in Section 403(b) of the Internal Revenue Code.(2) An eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.(i) The member's employer may pay all or a part of the member's contributions required for the purchase of service credit under this section. In that event, the actuary shall determine the amortization, and subsections (d), (e)(1), (e)(3), and (g) do not apply.Added by P.L. 8-2015, SEC. 4, eff. 7/1/2015.