Each year, on June 30, which is the last day of the State of Indiana's fiscal year, interest will be compounded and added to each Annuity Savings Account. Under current Indiana law, there are three different funds for investment of Annuity Savings Account contributions. Distributions, withdrawals and transfers from the Guaranteed Fund are made at book value. New members are automatically enrolled in the Guaranteed Fund for one year. Distributions, withdrawals and transfers from the Bond Fund are made at market value.
Members assume the risk of changes in the market.
It is interest income oriented. Distributions, withdrawals and transfers from the Money Market Fund are made at market value. Investing members assume the investment risk. Each year, during the month of June, Fund members have the opportunity to move the money in their Annuity Savings Accounts between funds. A selection is effective at the beginning of the following fiscal year, July 1.