Indiana Code 33-38-7-11. Retirement annuities; termination of employment; requirements; computation of amount
(b) A participant whose employment as judge is terminated, regardless of cause, is entitled to a retirement annuity beginning on the date specified by the participant in a written application, if the following conditions are met:
Terms Used In Indiana Code 33-38-7-11
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- board: refers to the board of trustees of the Indiana public retirement system established by Indiana Code 33-38-7-3
- Month: means a calendar month, unless otherwise expressed. See Indiana Code 1-1-4-5
- participant: means a judge who participates in the fund. See Indiana Code 33-38-7-7
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- salary: means the total salary paid to a participant by the state and by a county or counties, determined without regard to any salary reduction agreement established under Section 125 of the Internal Revenue Code. See Indiana Code 33-38-7-8
- services: means the period beginning on the first day a person first becomes a judge, whether the date is before, on, or after March 11, 1953, and ending on the date under consideration and includes all intervening employment as a judge. See Indiana Code 33-38-7-9
- Year: means a calendar year, unless otherwise expressed. See Indiana Code 1-1-4-5
(A) before the date of final termination of employment by the participant; or
(B) the date thirty (30) days before the receipt of the participant’s written application by the board.
(2) The participant:
(A) is at least sixty-two (62) years of age and has at least eight (8) years of service credit;
(B) is at least fifty-five (55) years of age and the participant’s age in years plus the participant’s years of service is at least eighty-five (85); or
(C) has become permanently disabled.
(3) The participant is not receiving a salary from the state for services currently performed as:
(A) a judge (as defined in IC 33-38-6-7); or
(B) a magistrate under IC 33-23-5.
(c) A participant:
(1) who:
(A) elects to accept retirement after June 30, 1977; and
(B) is at least sixty-five (65) years of age; or
(2) who:
(A) elects to accept retirement after June 30, 1999;
(B) is at least fifty-five (55) years of age; and
(C) meets the requirements under subsection (b)(2)(B);
is entitled to an annual retirement benefit as calculated in subsection (d).
(d) The annual retirement benefit for a participant who meets the requirements of subsection (c) equals the product of:
(1) the salary being paid for the office that the participant held at the time of the participant’s separation from service; multiplied by
(2) the percentage prescribed in the following table:
|
TABLE A |
||||
|
|
Participant’s Years of Service |
Percentage |
||
|
|
|
|||
|
|
|
8 |
|
24% |
|
|
|
9 |
|
27% |
|
|
|
10 |
|
30% |
|
|
|
11 |
|
33% |
|
|
|
12 |
|
50% |
|
|
|
13 |
|
51% |
|
|
|
14 |
|
52% |
|
|
|
15 |
|
53% |
|
|
|
16 |
|
54% |
|
|
|
17 |
|
55% |
|
|
|
18 |
|
56% |
|
|
|
19 |
|
57% |
|
|
|
20 |
|
58% |
|
|
|
21 |
|
59% |
|
|
|
22 or more |
60% |
|
If a participant has a partial year of service in addition to at least eight (8) full years of service, an additional percentage shall be calculated by prorating between the applicable percentages, based on the number of months in the partial year of service. A participant who elects to accept retirement before July 1, 1977, is entitled to an annual retirement benefit that equals the average of the benefit computed under this subsection and the benefit the participant would have received under IC 33-38-6 as in effect on June 30, 1977.
(e) If the annual retirement benefit of a participant who began service as a judge before July 1, 1977, as computed under subsection (d), is less than the amount the participant would have received under IC 33-38-6 as in effect on June 30, 1977, the participant is entitled to receive the greater amount as the participant’s annual retirement benefit instead of the benefit computed under subsection (d).
(f) Except as provided in subsections (b)(2)(B) and (d), if a participant who elects to accept retirement after June 30, 1977, has not attained sixty-five (65) years of age, the participant is entitled to receive a reduced annual retirement benefit that equals the benefit that would be payable if the participant were sixty-five (65) years of age reduced by one-tenth percent (0.1%) for each month that the participant’s age at retirement precedes the participant’s sixty-fifth birthday. This reduction does not apply to:
(1) participants who are separated from service because of permanent disability;
(2) survivors of participants who die while in service after August 1, 1992; or
(3) survivors of participants who die while not in service but while entitled to a future benefit.
(g) A participant who is permanently disabled is entitled to an annual benefit equal to the product of:
(1) the salary being paid for the office that the participant held at the time of separation from service; multiplied by
(2) the percentage prescribed in the following table:
|
TABLE B |
|||
|
|
Participant’s Years of Service |
Percentage |
|
|
|
|
||
|
|
|
0-12 |
50% |
|
|
|
13 |
51% |
|
|
|
14 |
52% |
|
|
|
15 |
53% |
|
|
|
16 |
54% |
|
|
|
17 |
55% |
|
|
|
18 |
56% |
|
|
|
19 |
57% |
|
|
|
20 |
58% |
|
|
|
21 |
59% |
|
|
|
22 or more |
60% |
If a participant has a partial year of service in addition to at least eight (8) full years of service, an additional percentage shall be calculated by prorating between the applicable percentages, based on the number of months in the partial year of service.
(h) The surviving spouse or surviving child or children, as designated by the participant, of a participant who has qualified before July 1, 1977, to receive the retirement annuity under the provisions of this chapter, either by length of service or by being permanently disabled, shall, upon the death of such participant, be entitled to an annuity in an amount equal to the greater of:
(1) the sum of:
(A) two thousand dollars ($2,000); plus
(B) fifty percent (50%) of the amount of retirement annuity the participant was drawing at the time of the participant’s death, or to that which the participant would have been entitled had the participant retired and begun receiving retirement annuity benefits prior to the participant’s death; or
(2) the amount determined under the following table:
|
TABLE C |
||
|
|
Year |
Amount |
|
|
July 1, 1995, to |
|
|
|
June 30, 1996 |
$10,000 |
|
|
July 1, 1996, to |
|
|
|
June 30, 1997 |
$11,000 |
|
|
July 1, 1997, and |
|
|
|
thereafter |
$12,000 |
(i) If a participant who qualifies after June 30, 1977, and before July 1, 1983, to receive a retirement annuity under the provisions of this chapter, either by length of service or by being permanently disabled, dies, the participant’s surviving spouse or surviving child or children, as designated by the participant, is or are entitled to an annuity in an amount equal to the greater of:
(1) fifty percent (50%) of the amount of retirement annuity the participant was drawing at the time of death, or to that which the participant would have been entitled had the participant retired and begun receiving retirement annuity benefits before death; or
(2) the amount determined under TABLE C in subsection (h)(2).
(j) If a participant:
(1) dies after June 30, 1983; and
(2) on the date of the participant’s death:
(A) was receiving benefits under this chapter;
(B) had completed at least eight (8) years of service and was in service as a judge;
(C) was permanently disabled; or
(D) had completed at least eight (8) years of service, was not still in service as a judge, and was entitled to a future benefit;
the participant’s surviving spouse or surviving child or children, as designated by the participant, is or are entitled, regardless of the participant’s age, to an annuity in an amount equal to the greater of the amount determined under TABLE C in subsection (h)(2) or fifty percent (50%) of the amount of retirement annuity the participant was drawing at the time of death, or to that which the participant would have been entitled had the participant retired and begun receiving retirement annuity benefits on the participant’s date of death, with reductions as necessary under subsection (f).
(k) Notwithstanding subsection (j), if a participant:
(1) died after June 30, 1983, and before July 1, 1985; and
(2) was serving as a judge at the time of death;
the surviving spouse is entitled to the same retirement annuity as the surviving spouse of a permanently disabled participant entitled to benefits under subsection (i).
(l) The annuity payable to a surviving child or children under subsection (h), (i), or (j), is subject to the following:
(1) The total monthly benefit payable to a surviving child or children is equal to the same monthly annuity that was to have been payable to the surviving spouse.
(2) If there is more than one (1) child designated by the participant, then the children are entitled to share the annuity in equal monthly amounts.
(3) Each child entitled to an annuity shall receive that child’s share until the child becomes eighteen (18) years of age or during the entire period of the child’s physical or mental disability, whichever period is longer.
(4) Upon the cessation of payments to one (1) designated child, if there is at least one (1) other child then surviving and still entitled to payments, the remaining child or children shall share equally the annuity. If the surviving spouse of the participant is surviving upon the cessation of payments to all designated children, the surviving spouse will then receive the annuity for the remainder of the surviving spouse’s life.
(5) The annuity shall be payable to the participant’s surviving spouse if any of the following occur:
(A) No child named as a beneficiary by a participant survives the participant.
(B) No children designated by the participant are entitled to an annuity due to their age at the time of death of the participant.
(C) A designation is not made.
(6) An annuity payable to a surviving child or children may be paid to a trust or a custodian account under IC 30-2-8.5, established for the surviving child or children as designated by the participant.
[Pre-2004 Recodification Citation: 33-13-9.1-4.]
As added by P.L.98-2004, SEC.17. Amended by P.L.28-2005, SEC.1.