House Bill 1004
House Bill (S)
DIGEST
School pension plans and other education matters. Establishes the teachers' defined contribution plan (plan) as an account within the Indiana state teachers' retirement fund (fund). Provides that an individual who begins employment with a school corporation in a covered position that would otherwise be eligible for membership in the fund may elect to become a member of the plan. Provides that an individual who does not elect to become a member of the plan becomes a member of the fund. Requires the board of trustees of the Indiana public retirement system (board) to establish, subject to any approval from the
School pension plans and other education matters. Establishes the teachers' defined contribution plan (plan) as an account within the Indiana state teachers' retirement fund (fund). Provides that an individual who begins employment with a school corporation in a covered position that would otherwise be eligible for membership in the fund may elect to become a member of the plan. Provides that an individual who does not elect to become a member of the plan becomes a member of the fund. Requires the board of trustees of the Indiana public retirement system (board) to establish, subject to any approval from the
Internal Revenue Service that the board considers necessary or desirable, alternative investment programs within the annuity savings account as the initial alternative investment programs for the plan, except that the board must maintain at least one investment option that is a stable value fund and may not offer the guaranteed program as an investment option. Provides that each member's contribution to the plan is 3% of the member's compensation, but authorizes the employer to pay all or part of the member's contribution on behalf of the member. Allows a member to make additional contributions to the plan up to 10% of the member's compensation. Provides that the employer's contribution rate for the plan is equal to the employer's contribution rate for the fund as determined by the board, although the amount credited from the employer's contribution rate to the member's account may not be greater than the normal cost of the fund. Provides that any amount not credited to the member's account shall be applied to the unfunded accrued liability of the fund. Provides that member contributions and net earnings on the member contributions belong to the member at all times and do not belong to the employer. Provides that a member vests in the employer contribution subaccount at 20% per year with full vesting after five years' participation in the plan. Provides that, if a member separates from service with an employer before the member is fully vested in the employer contribution subaccount, the amount in the subaccount that is not vested is forfeited. Provides that a member who: (1) terminates service in a covered position; and (2) does not perform any service in a covered position for at least 30 days after the date on which the member terminates service; is entitled to withdraw vested amounts in the member's account. Provides that a member may elect to have withdrawals paid as: (1) a lump sum; (2) a direct rollover to another eligible retirement plan; or (3) if the member has attained 62 years of age with at least five years' participation in the plan, a monthly annuity in accordance with the rules of the board. Establishes: (1) the Indiana teacher retention and recruitment program to improve teacher retention rates, recruitment, and quality; and (2) the Indiana new teacher mentoring program. Requires the department of education to grant a license to an individual who: (1) holds a valid teaching license issued by another state in the same content area or areas for which the individual is applying for a license in Indiana; and (2) was required to pass a content licensure test to obtain the license. Provides that if the individual has less than three years of full-time teaching experience, the individual is granted an initial practitioner's license. Provides that if the individual has at least three years of full-time teaching experience, the individual is granted a practitioner's license. Requires the individual to complete training: (1) in CPR and certain additional emergency skills; and (2) on the prevention of child suicide; not later than 12 months after the date the individual's license is issued. Establishes certain factors for which a teacher may receive a supplemental payment in excess of the salary specified in the school corporation's compensation plan. Provides that not more than 50% of a supplemental payment may be added to the teacher's base salary, based upon school corporation policy. Provides that, in the first two full school years that a teacher provides instruction to students in elementary school or high school, the teacher is exempt from the prohibition on receiving a raise or increment in a year following the year in which a teacher is rated ineffective or improvement necessary.
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