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House Bill 1193


House Bill 1193

ARCHIVE (2001)

Latest Information

 

DIGEST OF HB 1193 (Updated April 29, 2001 6:39 PM - DI 44)


Public employee benefits. Provides that the deferred compensation committee shall adopt provisions in a defined contribution plan for the purpose of converting unused excess accrued leave to a monetary contribution for employees of a state agency. Requires the state personnel department to adopt rules concerning: (1) the type and amount of leave that may be converted to a monetary contribution; (2) the conversion formula for valuing any leave that is converted; (3) the manner of employee selection of leave conversion; and (4) the vesting schedule for any leave that is converted. Requires that the rules adopted by the state personnel department must provide for a conversion rate under which the amount contributed on behalf of a participating employee for a day of leave that is converted is equal to at least 60% of the employee's daily pay as of the date the leave is converted. Provides that the provisions may be implemented only if the deferred compensation committee has received from the Internal Revenue Service any rulings or determination letters that the committee considers necessary or appropriate. Provides that the existing provisions establishing a Section 125 cafeteria plan program for unused leave time for state employees do not apply after the defined contribution plan is implemented and the deferred compensation committee has received from the Internal Revenue Service any rulings or determination letters that the committee considers necessary or appropriate for the defined contribution plan. Makes certain changes in the operation of the deferred compensation committee. Authorizes a political subdivision that uses the state employees' deferred compensation plan for its employees to participate in the state defined contribution plan established under Section 401(a) of the Internal Revenue Code for the purpose of matching all or a specified portion of the political subdivision's employees' contributions to the deferred compensation plan. Provides a procedure for members of the public employees' retirement fund (PERF) or the Indiana state teachers' retirement fund (TRF) to purchase up to two years of military service credit to the extent service credit is not granted for that time under existing PERF or TRF provisions. Requires a member to have at least ten years of creditable service in PERF or TRF before the member may use the military service credit. Provides that the purchase of service credit provisions apply to members who retire after June 30, 2001. Requires the PERF board to adopt rules for making loans to a participant in the legislator's retirement system. Provides that certain elections by an employer concerning the payment of health insurance premiums and program eligibility may not be altered by the employer to the detriment of a former legislator.
Current Status:
 Law Enacted
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