Sec. 8.2. (a) The following definitions apply throughout this section:
(1) "Freeze" or "freeze participation in the fund" means to take an action described under subsection (b)(1), (b)(2), or (b)(3).
(2) "Freezing political subdivision" means a political subdivision that freezes its participation in the fund.
(b) Subject to the provisions of this section, a political subdivision that did not take an action described in this subsection before the effective date of this section may adopt an ordinance or resolution, which may not be effective before January 2, 2016, to do the following:
(1) Determine a date (which may not be before January 2, 2016):
(A) before which newly hired employees of a departmental, occupational, or other definable classification of employees are eligible to participate in the fund; and
(B) on or after which newly hired employees of the departmental, occupational, or other definable classification of employees are not eligible to participate in the fund.
(2) Determine a date (which may not be before January 2, 2016):
(A) before which newly hired employees of a departmental, occupational, or other definable classification of employees are required to participate in the fund; and
(B) on or after which newly hired employees of the departmental, occupational, or other definable classification of employees are allowed to choose whether to participate in a retirement benefit system other than the fund.
(3) Modify the political subdivision's employee classification scheme as of a specified date (which may not be before January 2, 2016) in such a way that there is at least one (1) position that:
(A) is covered by the fund before the specified date; and
(B) is not covered by the fund on or after the specified date.
(c) A political subdivision that freezes its participation in the fund after December 31, 2010, shall do the following:
(1) Provide written notice of the following to the board:
(A) The action that was taken under subsection (b) by the freezing political subdivision.
(B) The effective date of the action taken under subsection (b).
(C) The employee classifications that:
(i) are covered by the fund before the effective date of the freeze; and
(ii) will not be covered by the fund on or after the effective date of the freeze.
(D) The names of the freezing political subdivision's current employees and former employees as of the date on which the notice is provided.
(2) Comply with subsections (d) through (f).
(d) With respect to retired members who have creditable service with the freezing political subdivision, the freezing political subdivision shall contribute to the fund any additional amounts that the board determines are necessary to provide for reserves with sufficient assets to pay all future benefits from the fund to those retired members attributable to service with the freezing political subdivision. The board shall collaborate with the freezing political subdivision by sharing the actuarial method and report. The contribution by the freezing political subdivision must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years, as determined by the freezing political subdivision.
(e) With respect to members of the fund who have creditable service with the freezing political subdivision and who are not employees as of the effective date on which the political subdivision freezes its participation in the fund, the freezing political subdivision shall contribute the amount that the board determines is necessary to fund fully the service for those members that is attributable to service with the freezing political subdivision. The board shall collaborate with the freezing political subdivision by sharing the actuarial method and report. The contribution by the freezing political subdivision must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years, as determined by the freezing political subdivision.
(f) With respect to members of the fund who are employees of the freezing political subdivision as of the date of the notice under subsection (c), the freezing political subdivision shall continue to contribute the amounts required under IC 5-10.2-2-11 for those employees for the duration of their employment with the freezing political subdivision. In addition, the freezing political subdivision shall contribute to the fund the amount the board determines is necessary to fund fully the benefits attributable to service with the freezing political subdivision that are vested or will become vested and are not anticipated to be fully funded through the continuing contributions under IC 5-10.2-2-11 during the duration of the members' employment with the freezing political subdivision. The board shall collaborate with the freezing political subdivision by sharing the actuarial method and report. The contribution by the freezing participating entity must be made in a lump sum or in a series of payments over a term that does not exceed thirty (30) years, as determined by the freezing political subdivision.
(g) The Indiana public retirement system may do any of the following to determine a political subdivision's compliance with this section:
(1) Require reports from the political subdivision.
(2) Audit the political subdivision.
As added by P.L.241-2015, SEC.17.