2023 Indiana Code › Title 5. State and Local Administration › Article 10.3. The Public Employees' Retirement Fund › Chapter 7. Membership; Creditable Service; Contributions; Withdrawal › 5-10.3-7-9.5. Rollover Contributions; Trustee to Trustee Transfers; Liability for Income Tax Consequences of Transfers

Sec. 9.5. (a) The fund may accept cash rollover contributions from a member who is making payments for additional service credits under this chapter if the following conditions are met:
(1) The rollover contribution must represent:
(A) all or a portion of the member's interest in a retirement plan of a former employer which is qualified under Section 401(a) of the Internal Revenue Code and which permits the interest to be transferred to the fund as a qualifying rollover contribution under the Internal Revenue Code;
(B) all or a portion of the member's interest from an individual retirement account or annuity described in Section 408(a) or Section 408(b) of the Internal Revenue Code;
(C) all or a portion of the member's interest in:
(i) a qualified plan described in Section 403(a) of the Internal Revenue Code; or
(ii) an annuity contract or account described in Section 403(b) of the Internal Revenue Code; or
(D) all or a portion of the member's interest in an eligible plan that is maintained by a state, a 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.
(2) The amount of the rollover contributions may not exceed the amount of payment required to purchase the service credits under this chapter.
(3) The rollover contributions may contain only tax-deferred contributions and earnings on the contributions, and may not include any post-tax contributions.
(4) The member must be otherwise eligible to purchase the service credit under this chapter.
(b) To the extent permitted by the Internal Revenue Code and the applicable regulations, the fund may accept, on behalf of a member who is purchasing permissive service credit under this chapter, a trustee to trustee transfer from:
(1) an annuity contract or account described in Section 403(b) of the Internal Revenue Code; or
(2) an eligible deferred compensation plan under Section 457(b) of the Internal Revenue Code.
(c) The fund, the board, and their respective members, officers, and employees do not have any responsibility or liability with respect to the federal and state income tax consequences of any transfer made to the fund under this section. The board may require, as a condition to the fund's acceptance of a rollover contribution:
(1) satisfactory evidence that the proposed transfer is a qualifying rollover contribution under the Internal Revenue Code; and
(2) reasonable releases or indemnifications from the member against any and all liabilities that may be connected with the transfer.
(d) Cash transferred to the fund as a rollover contribution shall be deposited in the retirement allowance account.
(e) A member who terminates employment before satisfying the eligibility requirements necessary for a pension or disability benefit may withdraw the member's rollover contribution, plus accumulated interest, after submitting a properly completed application for a refund to the fund.
(f) Except as provided in this section, the fund shall not accept any other rollover contributions from a member.
(g) The board shall administer this section in accordance with the rollover provisions of the Internal Revenue Code and any applicable regulations.
As added by P.L.5-1997, SEC.7. Amended by P.L.61-2002, SEC.8; P.L.40-2017, SEC.13.