CHAPTER 8.5. RETIREMENT MEDICAL BENEFITS ACCOUNT - Indiana Statutes

IC 5-10-8.5
     Chapter 8.5. Retirement Medical Benefits Account

IC 5-10-8.5-1
Application of chapter
     Sec. 1. (a) This chapter applies to an individual who is one (1) of the following:
        (1) An employee of the executive, legislative, or judicial branch of state government.
        (2) A state elected or appointed officer.
        (3) A member of the general assembly.
        (4) An elected officer paid by the state.
        (5) An officer paid by the state under IC 33-23-5-10, IC 33-38-5-7, or IC 33-39-6-2.
    (b) An individual described in subsection (a) is a participant in the retirement medical benefits account.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-2
"Account"
     Sec. 2. As used in this chapter, "account" refers to the retirement medical benefits account established by section 11 of this chapter.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-3
"Budget agency"
     Sec. 3. As used in this chapter, "budget agency" refers to the budget agency established under IC 4-12-1-3.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-4
"Department"
     Sec. 4. As used in this chapter, "department" refers to the state personnel department established under IC 4-15-1.8-2.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-5
"Employer"
     Sec. 5. As used in this chapter, "employer" means the following:
        (1) For an elected officer, appointed officer, or employee of the executive branch of state government, the state, including any board, commission, department, division, authority, institution, establishment, facility, or governmental unit under the supervision of the state, having a payroll in relation to persons it immediately employs.
        (2) For a member of the general assembly or an employee of the legislative branch of state government:
            (A) the president pro tempore of the senate, for a member or an employee of the senate;
            (B) the speaker of the house, for a member or an employee

of the house of representatives; or
            (C) the personnel subcommittee of the legislative council, for an employee of the legislative services agency.
        (3) For:
            (A) a justice;
            (B) a judge;
            (C) a prosecuting attorney;
            (D) an officer described under section 1(a)(5) of this chapter; or
            (E) an employee of the judicial branch of state government, including an employee of any board, commission, department, division, authority, institution, establishment, facility, or governmental unit under the supervision of the judicial branch, having a payroll in relation to persons it immediately employs;
        the Indiana supreme court.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-6
"Fund"
     Sec. 6. As used in this chapter, "fund" refers to the public employees' retirement fund established under IC 5-10.3-2-1.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-7
"Internal Revenue Code"
     Sec. 7. As used in this chapter, "Internal Revenue Code":
        (1) means the Internal Revenue Code of 1954, as in effect September 1, 1974, if permitted with respect to governmental plans; or
        (2) to the extent not inconsistent with subdivision (1), has the meaning set forth in IC 6-3-1-11.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-8
"Participant"
     Sec. 8. As used in this chapter, "participant" means an individual for whom a subaccount is established under section 14 of this chapter.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-9
"Retired participant"
     Sec. 9. (a) As used in this chapter, "retired participant" means:
        (1) A participant who is eligible for and has applied to receive a normal, unreduced or disability retirement benefit (as determined by the Indiana public employee retirement fund of which the participant is a member) on the participant's last day of service.
        (2) A participant who has completed at least ten (10) years of

service as an elected or appointed officer on the participant's last day of service as an elected or appointed officer.
    (b) For a participant described in subsection (a)(2) who has service with more than one (1) employer, the participant's years of service is the sum of all of the participant's years of service.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-10
"Subaccount"
     Sec. 10. As used in this chapter, "subaccount" means a participant's allocable share of the account.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-11
Account established; administered by budget agency; specific appropriation required
     Sec. 11. (a) The budget agency shall adopt provisions to establish a retirement medical benefits account as a health reimbursement arrangement or as a separate fund under another applicable section of the Internal Revenue Code for the purpose of funding by an employer on a pretax basis benefits for sickness, accident, hospitalization, and medical expenses for a participant and the spouse and dependents of a participant after the participant's retirement.
    (b) The budget agency shall administer the account and may request the assistance of the department, the fund, and other state agencies. The account shall be maintained as a separate account to pay benefits for sickness, accident, hospitalization, and medical expenses for retired participants and their spouses and dependents.
    (c) Notwithstanding any other provision of this chapter, the budget agency may not establish the account or implement the health reimbursement arrangement unless the general assembly makes a specific appropriation to implement the health reimbursement arrangement.
    (d) The budget agency may adopt rules under IC 4-22-2 that it considers appropriate or necessary to administer the account.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-12
Authorization to request Internal Revenue Service rulings
     Sec. 12. The budget agency may request from the Internal Revenue Service any rulings or determination letters that the budget agency considers necessary or appropriate in order to implement or administer the account.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-13
Management and pooling of account assets; confidentiality of account records
     Sec. 13. (a) The budget agency may designate the board of

trustees of the fund to manage the assets in the account in the same manner and with the same limitations that apply to the management of the assets in the fund.
    (b) The assets in the account may be commingled or pooled with other public funds for investment purposes.
    (c) The account and subaccount records of individual participants and participants' information are confidential, except for the name and contributions made on behalf of the participant.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-14
Account; subaccounts; administrative costs
     Sec. 14. (a) The account consists of the following:
        (1) Contributions made by a participant's employer to the account under section 15 or 16 of this chapter.
        (2) All earnings on investments or deposits of the account.
        (3) All contributions or payments to the account made in a manner provided by the general assembly.
    (b) The administrative costs of the account shall be paid from the earnings of the account before the earnings are credited to participants' subaccounts.
    (c) The budget agency shall establish a subaccount for each participant. Each participant's subaccount shall be credited with:
        (1) the contributions made to the account on behalf of the participant under this chapter; and
        (2) after the costs described in subsection (b) are paid, the earnings attributable to the balance of the subaccount.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-15
Annual employer contributions
     Revisor's Note: P.L.182-2009(ss), SEC.517 directed that the amendments to this section made by P.L.182-2009(ss), SEC.69 not be given effect and required this section to be published as follows.
    Sec. 15. (a) A participant's employer shall make contributions annually to the account on behalf of the participant. The amount of the contribution each fiscal year must equal the following, based on the participant's age on the last day of the calendar year that is in the fiscal year in which the contribution is made:
    Participant's Age in Years    Annual Contribution Amount
        Less than 30            $500
        At least 30, but less than 40             $800
        At least 40, but less than 50             $1,100
        At least 50             $1,400
    (b) The budget agency shall determine by rule the date on which the contributions are credited to participants' subaccounts.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-16
Employer additional contribution; eligibility; computation;

expiration date
     Sec. 16. (a) If a participant meets all of the following conditions, the participant is entitled to receive an additional contribution credited to the participant's subaccount and computed as described in subsection (b):
        (1) The participant is:
            (A) on the participant's last day of service with the participant's employer, eligible for and has applied to receive a normal, unreduced retirement benefit from the public employee retirement fund of which the participant is a member; or
            (B) on the participant's last day of service, an elected or appointed officer.
        (2) After June 30, 2007, and before July 1, 2017, the participant terminates service:
            (A) from the employer; or
            (B) as an elected or appointed officer.
        (3) By the participant's last day of service, the participant has completed:
            (A) fifteen (15) years of service with the employer; or
            (B) ten (10) years of service as an elected or appointed officer.
    (b) The amount of the contribution to a participant's subaccount under this section is the product of:
        (1) the participant's years of service (rounded down to the nearest whole year):
            (A) with the participant's employer, determined on the participant's last day of service with the participant's employer; or
            (B) as an elected or appointed officer, determined on the participant's last day of service as an elected or appointed officer; multiplied by
        (2) one thousand dollars ($1,000).
    (c) For a participant who has service with more than one (1) employer, the participant's years of service used in the computation under subsection (b)(1) is the sum of all of the participant's years of service.
    (d) The participant's employer must credit the additional contribution made under this section to the participant's subaccount not later than sixty (60) days after the participant's last day of service.
    (e) A participant who meets the requirements to receive an additional contribution under this section may receive the additional contribution only once, regardless of the participant's employment after the payment of the additional contribution.
    (f) This section expires July 1, 2017.
As added by P.L.44-2007, SEC.1. Amended by P.L.3-2008, SEC.25.

IC 5-10-8.5-17
Eligibility for benefits      Sec. 17. (a) A retired participant is entitled to receive a benefit from the account.
    (b) A participant who is not a retired participant is not entitled to receive a benefit from the account when the participant separates from service.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-18
Account benefits; coverage
     Sec. 18. The balance in a retired participant's subaccount may be used by the retired participant and the spouse and dependents of the retired participant to pay premiums for individual or group health coverage.
As added by P.L.44-2007, SEC.1. Amended by P.L.124-2008, SEC.1.

IC 5-10-8.5-19
Surviving spouse or dependent use of account; forfeiture
     Sec. 19. (a) The surviving spouse or dependent of a retired participant may use amounts credited to the retired participant to pay health insurance and other health care related expenses to the same extent and in the same manner as the retired participant.
    (b) If a retired participant dies without a surviving spouse or dependents, unused amounts credited to the retired participant are forfeited.
    (c) Any forfeited amount may be used to reduce the contributions required under this chapter.
As added by P.L.44-2007, SEC.1.

IC 5-10-8.5-20
Budget committee annual review
     Sec. 20. The budget committee shall annually review the financial status of the account.
As added by P.L.44-2007, SEC.1.