(1) is a judge participating under this chapter;

(A) before becoming a judge; or

(B) after leaving an elected term on the bench;

(3) was a member of the public employees’ retirement fund during the employment described in subdivision (2); and

(4) received credited service under the public employees’ retirement fund for the employment described in subdivision (2).

     (b) If a person becomes a participant in the judges’ 1977 benefit system under section 1 of this chapter, credit for prior or subsequent service by the judge as a full-time referee, full-time commissioner, or full-time magistrate shall be granted under this chapter by the board if:

(1) the service was credited under the public employees’ retirement fund;

(2) the state contributes to the judges’ 1977 benefit system the amount the board determines necessary to amortize the service liability over a period determined by the board, but not more than ten (10) years; and

(3) the judge pays in a lump sum or in a series of payments determined by the board, not exceeding five (5) annual payments, the amount the judge would have contributed if the judge had been a member of the judges’ 1977 benefit system during the service.

     (c) If the requirements of subsection (b)(2) and (b)(3) are not satisfied, a participant is entitled to credit only for years of service earned as a judge in the 1977 benefit system.

     (d) An amortization schedule for contributions paid under subsection (b)(2) or (b)(3) must include interest at a rate determined by the board.

     (e) The following provisions apply to a person described in subsection (a):

(1) A minimum benefit applies to participants receiving credit in the judges’ 1977 benefit system from service covered by the public employees’ retirement fund. The minimum benefit is payable at sixty-five (65) years of age and equals the actuarial equivalent of the vested retirement benefit that is:

(A) payable to the member at normal retirement under IC 5-10.2-4-1 as of the day before the transfer; and

(B) based solely on:

(i) creditable service;

(ii) the average of the annual compensation; and

(iii) the amount credited under IC 5-10.2 and IC 5-10.3 to the annuity savings account of the transferring member as of the day before the transfer.

(2) If the requirements of subsection (b)(2) and (b)(3) are satisfied, the board shall transfer from the public employees’ retirement fund to the judges’ 1977 benefit system the amount credited to the annuity savings account and the present value of the retirement benefit payable at sixty-five (65) years of age that is attributable to the transferring participant.

(3) The amount the state and the participant must contribute to the judges’ 1977 benefit system under subsection (b) shall be reduced by the amount transferred to the judges’ 1977 benefit system by the board under subdivision (2).

(4) If the requirements of subsection (b)(2) and (b)(3) are satisfied, credit for service in the public employees’ retirement fund as a full-time referee, full-time commissioner, or full-time magistrate is waived. Any credit for the service under the judges’ 1977 benefit system may be granted only under subsection (b).

(5) Credit in the public employees’ retirement fund for service other than as a full-time referee, full-time commissioner, or full-time magistrate remains under the public employees’ retirement fund and may not be credited under the judges’ 1977 benefit system.

     (f) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges’ 1977 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), a rollover of a distribution from any of the following:

(1) A qualified plan described in Section 401(a) or Section 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, political subdivision of a state, or an agency or instrumentality of a state or 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 Section 408(b) of the Internal Revenue Code.

     (g) To the extent permitted by the Internal Revenue Code and the applicable regulations, the judges’ 1977 benefit system may accept, on behalf of a participant who is purchasing permissive service credit under subsection (b), 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.

[Pre-2004 Recodification Citation: 33-13-9.1-10.]

As added by P.L.98-2004, SEC.17. Amended by P.L.68-2007, SEC.1; P.L.180-2007, SEC.8.