Indiana Code 5-10.5-4-2.6. Annuity interest rates
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Sec. 2.6. (a) This subsection applies after September 30, 2014, and before January 1, 2017.The following interest rates shall be used to determine the annuity amount purchasable by a member of the public employees’ retirement fund or the teachers’ retirement fund who elects to receive, as part of the member’s retirement or disability benefit, an annuity provided by the amount credited to the member in the member’s annuity savings account:
(2) After September 30, 2015, and before January 1, 2017, the greater of:
(1) After September 30, 2014, and before October 1, 2015, five and seventy-five hundredths percent (5.75%).
Terms Used In Indiana Code 5-10.5-4-2.6
- 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.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
(A) the interest rate for similar annuities being purchased in the private market as determined by the board; or
(B) four and one-half percent (4.5%).
(b) This subsection applies after December 31, 2016, whenever the board enters into an agreement with a third party provider to provide annuities for retiring members of the public employees’ retirement fund or the teachers’ retirement fund. The interest rate used to determine the annuity amount purchasable by a member is equal to the rate for similar annuities being purchased in the private market as recommended by the third party provider.
As added by P.L.177-2014, SEC.5.