Sec. 25. (a) Member contributions and net earnings on the member contributions in the member contribution subaccount belong to the member at all times and do not belong to any employer.

     (b) A member is vested in the employer contribution subaccount in accordance with the following schedule:

Terms Used In Indiana Code 5-10.3-12-25

  • account: means the plan account established for a member under section 21(b) of this chapter. See Indiana Code 5-10.3-12-2
  • employer: means the state or a participating political subdivision. See Indiana Code 5-10.3-12-8
  • employer contribution subaccount: means the subaccount in a member's plan account established under section 21(b)(2) of this chapter. See Indiana Code 5-10.3-12-9
  • fund: has the meaning set forth in Indiana Code 5-10.3-12-10
  • member: means an individual who has elected or is required to participate in the plan. See Indiana Code 5-10.3-12-12
  • member contribution subaccount: means the subaccount in a member's plan account established under section 21(b)(1) of this chapter. See Indiana Code 5-10.3-12-13
  • plan: refers to the public employees' defined contribution plan established by section 18 of this chapter. See Indiana Code 5-10.3-12-15
  • years of participation: means periods of participation in the plan in a covered position, plus any additional service for which this chapter provides years of participation credit, except that the term excludes periods of participation in the plan in a covered position for service described in section 1(a)(7) of this chapter. See Indiana Code 5-10.3-12-16
 

Years of participation in the

Vested percentage of

 

plan

employer contributions

 

 

and earnings

 

1

20%

 

2

40%

 

3

60%

 

4

80%

 

5

100%

For purposes of vesting in the employer contribution subaccount, only a member’s full years of participation in the plan may be counted.

     (c) The amount that a member may withdraw from the member’s account is limited to the vested portion of the account.

     (d) A member who attains normal retirement age is fully vested in all amounts in the member’s account.

     (e) If a member separates from service with the member’s employer before the member is fully vested in the employer contribution subaccount, the amount in the employer contribution subaccount that is not vested is forfeited as of the date the member separates from service.

     (f) Amounts forfeited under subsection (e) must be used to reduce the unfunded accrued liability of the fund as determined under IC 5-10.2-2-11(a)(3) and IC 5-10.2-2-11(a)(4).

     (g) A member may not earn creditable service (as defined in IC 5-10.2-3-1(a)) under the plan.

As added by P.L.22-2011, SEC.2. Amended by P.L.6-2012, SEC.32; P.L.241-2015, SEC.35.

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