Indiana Administrative Code › Title 35 - BOARD OF TRUSTEES OF THE INDIANA PUBLIC RETIREMENT SYSTEM › Article 16 - INDIANA STATE TEACHERS' RETIREMENT FUND CONTRIBUTIONS AND BENEFITS › Rule 1 - Adoption of Internal Revenue Code Section 415 › Section 1-1 - Compliance with Internal Revenue Code Section 415 for Limitations on Contributions and Benefits

Current through July 10, 2024
Authority: IC 5-10.5-4-2
Affected: IC 5-10.2-2-1.5; IC 5-10.4; IC 5-10.5
Sec. 1.
(a)
				Notwithstanding any other provisions to the contrary, pursuant to IC
				5-10.2-2-1.5(7), the member contributions paid to and retirement benefits paid
				from the plan shall be limited to such extent as may be necessary to conform to
				the requirements of Section 415 of the Internal Revenue Code for a qualified
				governmental pension plan. For purposes of these limitations, the limitation
				year shall be the fiscal year.
(b)
				The 415(b) limit with respect to any member who at any time has been a member
				in any other defined benefit plan as defined in Section 414(j) of the Internal
				Revenue Code maintained by the member's employer in this plan shall apply as if
				the total benefits payable under all such defined benefit plans in which the
				member has been a member were payable from one (1) plan.
(c) The 415(c) limit with respect to any
				member who at any time has been a member in any other defined contribution plan
				as defined in Section 414(i) of the Internal Revenue Code maintained by the
				member's employer in this plan shall apply as if the total annual additions
				under all such defined contribution plans in which the member has been a member
				were payable from one (1) plan.
(d)
				Before July 1, 1995, a member may not receive an annual benefit that exceeds
				the limits specified in Section 415(b) of the Internal Revenue Code, subject to
				the applicable adjustments in that section. On and after July 1, 1995, a member
				may not receive an annual benefit that exceeds the dollar amount specified in
				Section 415(b)(1)(A) of the Internal Revenue Code, subject to the applicable
				adjustments in Section 415(b) of the Internal Revenue Code and subject to any
				additional limits that may be specified in the retirement system. In no event
				shall a member's benefit payable under the plan in any limitation year be
				greater than the limit applicable at the annuity starting date, as increased in
				subsequent years pursuant to Section 415(d) of the Internal Revenue Code and
				the regulations thereunder.
(e) For
				purposes of Section 415(b) of the Internal Revenue Code, the "annual benefit"
				means a benefit payable annually in the form of a straight life annuity (with
				no ancillary benefits) without regard to the benefit attributable to after-tax
				employee contributions (except pursuant to Section 415(n) of the Internal
				Revenue Code) and to rollover contributions (as defined in Section 415(b)(2)(A)
				of the Internal Revenue Code). The "benefit attributable" shall be determined
				in accordance with Treasury Regulations.
(f) If the benefit under the plan is other
				than the form specified in subsection (e), then the benefit shall be adjusted
				so that it is the equivalent of the annual benefit, using factors prescribed in
				Treasury Regulations.
(1) If the form of
				benefit without regard to the automatic benefit increase feature is not a
				straight life annuity or a qualified joint and survivor annuity, then the
				preceding sentence is applied by either reducing the Section 415(b) of the
				Internal Revenue Code limit applicable at the annuity starting date or
				adjusting the form of benefit to an actuarially equivalent amount (determined
				using the assumptions specified in Treasury Regulation Section
				1.415(b)-1(c)(2)(ii)) that takes into account the additional benefits under the
				form of benefit as follows:
(2) For
				a benefit paid in a form to which Section 417(e)(3) of the Internal Revenue
				Code does not apply (a monthly benefit), the actuarially equivalent straight
				life annuity benefit that is the greater of (or the reduced limit applicable at
				the annuity starting date which is the lesser of when adjusted in accordance
				with the following assumptions):
(A) the
				annual amount of the straight life annuity (if any) payable to the member under
				the plan commencing at the same annuity starting date as the form of benefit to
				the member; or
(B) the annual
				amount of the straight life annuity commencing at the same annuity starting
				date that has the same actuarial present value as the form of benefit payable
				to the member, computed using a five percent (5%) interest assumption (or the
				applicable statutory interest assumption) and:
(i) for years prior to January 1, 2009, the
				applicable mortality tables described in Treasury Regulation Section
				1.417(e)-1(d)(2) (Revenue Ruling 2001-62 or any subsequent revenue ruling
				modifying the applicable provisions of Revenue Ruling 2001-62); and
(ii) for years after December 31, 2008, the
				applicable mortality tables described in Section 417(e)(3)(B) of the Internal
				Revenue Code (Notice 2008-85 or any subsequent Internal Revenue Service
				guidance implementing Section 417(e)(3)(B) of the Internal Revenue Code);
				or
(3) For a
				benefit paid in a form to which Section 417(e)(3) of the Internal Revenue Code
				applies (a lump-sum benefit), the actuarially equivalent straight life annuity
				benefit that is the greatest of (or the reduced Section 415(b) of the Internal
				Revenue Code limit applicable at the annuity starting date which is the least
				of when adjusted in accordance with the following assumptions):
(A) the annual amount of the straight life
				annuity commencing at the annuity starting date that has the same actuarial
				present value as the particular form of benefit payable, computed using the
				interest rate and mortality table, or tabular factor, specified in the plan for
				actuarial experience;
(B) the
				annual amount of the straight life annuity commencing at the annuity starting
				date that has the same actuarial present value as the particular form of
				benefit payable, computed using a five-point-five percent (5.5%) interest
				assumption (or the applicable statutory interest assumption) and:
(i) for years prior to January 1, 2009, the
				applicable mortality table for the distribution under Treasury Regulation
				Section 1.417(e)-1(d)(2) (the mortality table specified in Revenue Ruling
				2001-62 or any subsequent revenue ruling modifying the applicable provisions of
				Revenue Ruling 2001-62); and
(ii)
				for years after December 31, 2008, the applicable mortality tables described in
				Section 417(e)(3)(B) of the Internal Revenue Code (Notice 2008-85 or any
				subsequent Internal Revenue Service guidance implementing Section 417(e)(3)(B)
				of the Internal Revenue Code); or
(C) the annual amount of the straight life
				annuity commencing at the annuity starting date that has the same actuarial
				present value as the particular form of benefit payable (computed using the
				applicable interest rate for the distribution under Treasury Regulation Section
				1.417(e)-1(d)(3) (the thirty (30) year treasury rate (prior to July 1, 2007,
				using the rate in effect for the month prior to retirement, and on and after
				July 1, 2007, using the rate in effect for the first day of the plan year with
				a one (1) year stabilization period)) and:
(i)
				for years prior to January 1, 2009, the applicable mortality tables for the
				distribution under Treasury Regulation Section 1.417(e)-1(d)(2) (the mortality
				table specified in Revenue Ruling 2001-62 or any subsequent revenue ruling
				modifying the applicable provisions of Revenue Ruling 2001-62); and
(ii) for years after December 31, 2008, the
				applicable mortality tables described in Section 417(e)(3)(B) of the Internal
				Revenue Code (Notice 2008-85 or any subsequent Internal Revenue Service
				guidance implementing Section 417(e)(3)(B) of the Internal Revenue Code),
				divided by one and five-hundredths (1.05).