The Indiana Public Employees’ Retirement Fund (PERF) is governed by specific statutes that dictate its operational framework and the rights of its members. Indiana Code Title 5, Article 10.2, specifically addresses public retirement and disability benefits. This section of the Indiana Code outlines the eligibility criteria for retirement, the calculation of benefits, and the conditions under which benefits can be modified or terminated. When a member of PERF separates from covered employment before meeting the age and service requirements for retirement, they are considered to have a “vested benefit” if they have accumulated a certain amount of creditable service. This vested benefit is a deferred benefit, payable at a later date. The Indiana Code, particularly IC 5-10.2-4-7, addresses the entitlement to benefits upon separation from service. It states that a member who has separated from service and has at least ten (10) years of creditable service is entitled to a retirement benefit that begins on the first day of the month following the later of the date of separation or the date the member attains age sixty-five (65). The benefit is calculated based on the member’s average final compensation and their years of creditable service, using a defined formula established by statute. Therefore, an individual who has accumulated ten years of creditable service with a state agency and leaves employment at age fifty-five (55) is entitled to a deferred retirement benefit starting at age sixty-five (65).

The Indiana Public Retirement System (INPRS) administers various retirement plans for Indiana state and local government employees. Understanding the eligibility and benefit calculation principles is crucial for participants and administrators. For a member of the Public Employees’ Retirement Fund (PERF) who commenced participation on July 1, 2007, and has a credited service of 25 years, with an average annual compensation for the highest 50 consecutive months of compensation totaling $60,000, the normal retirement benefit is calculated. The PERF plan for this cohort typically uses a formula that multiplies credited service by a percentage of the average of the highest 50 consecutive months of compensation. For members joining on or after July 1, 2007, the accrual rate is 1.1% for each year of credited service. Therefore, the annual normal retirement benefit would be calculated as follows: Credited Service × Average Compensation × Accrual Rate. Substituting the given values: 25 years × $60,000 × 1.1% = 25 × $60,000 × 0.011 = $16,500. This annual benefit is paid in monthly installments. The Indiana Code, specifically IC 5-10.2-4-4, outlines the calculation of retirement benefits for PERF members, and the accrual rates are subject to the member’s date of participation. The explanation here focuses on the statutory basis for calculating a defined benefit pension for a PERF member, highlighting the importance of credited service and average compensation in determining the annuity amount. It is essential to note that other factors, such as early retirement reductions or optional survivor benefits, are not included in this specific calculation for the normal retirement benefit.

The Indiana Public Employees’ Retirement Fund (PERF) is governed by specific statutes that dictate eligibility for disability benefits. Under Indiana Code § 5-10.3-7-1 et seq., a member of PERF is eligible for disability benefits if they are found to be totally and permanently disabled from performing their usual and customary occupation or any other occupation for which they are reasonably suited by training, experience, or qualifications. The determination of disability is made by the Public Employees’ Retirement Fund Board of Trustees, often based on medical evidence and vocational assessments. The statute requires that the disability must not be the result of an intentional self-inflicted injury or a condition arising from the commission of a felony. The benefit amount is typically a percentage of the member’s average final compensation, as defined by the statutes, and is payable for the duration of the disability, subject to periodic re-evaluations. The key distinction for eligibility hinges on the inability to perform one’s occupation or any other suitable occupation, and the absence of disqualifying factors like intentional self-harm or criminal activity.

The Indiana Public Retirement System (INPRS) administers various retirement plans for Indiana public employees. For a participating employer to withdraw from INPRS, a specific process must be followed, governed by Indiana Code. The relevant statutes, particularly those concerning the termination of participation, outline the conditions and procedures. A key aspect is the requirement for an actuarial valuation to determine the employer’s unfunded liability. This liability represents the difference between the present value of future benefits and the present value of future contributions, discounted at the plan’s assumed rate of return. The employer must then make a payment to INPRS to cover this unfunded liability in full upon withdrawal. This payment is calculated based on the actuarial valuation as of the date of withdrawal. For instance, if an actuarial valuation determined an unfunded liability of \$5,000,000 for an employer seeking to withdraw, and the employer wishes to complete the withdrawal process, they must remit this \$5,000,000 to INPRS. This ensures that INPRS remains solvent and that other participating members are not adversely affected by the withdrawal. The Indiana Code, specifically provisions related to employer withdrawal and termination of participation, mandates this full payment of the unfunded liability. Failure to do so would prevent the withdrawal from being finalized.

The Indiana Public Retirement System (INPRS) administers various retirement plans for state employees and public employees in Indiana. A key aspect of these plans is the determination of benefit eligibility and calculation, which often involves understanding service credit. Service credit represents the period of employment that counts towards retirement benefits. For Indiana state employees participating in plans like the Public Employees’ Retirement Fund (PERF), service credit can be earned through active employment. In certain circumstances, individuals may be able to purchase or transfer service credit from other governmental entities or prior periods of employment, subject to specific rules and limitations. The Indiana Code, particularly provisions related to PERF and other INPRS plans, outlines the criteria for earning, purchasing, and transferring service credit. These provisions are crucial for members to accurately project their retirement benefits. For instance, Indiana Code \(5-10.2-3-1\) and related sections govern the accrual and crediting of service. The scenario describes a former state employee seeking to re-enter service and inquire about their prior service. The relevant Indiana law would dictate how that prior service is treated upon re-employment. Generally, if a member leaves a PERF-covered position and receives a refund of their contributions, that service is forfeited unless they repay the refund with interest. If they do not receive a refund, the service is typically retained. The question focuses on the legal framework for recognizing previously earned service credit upon re-employment within the Indiana public sector, assuming no refund was taken.

The Indiana Public Employees’ Retirement Fund (PERF) is governed by specific statutes, primarily found within the Indiana Code. When a PERF member separates from covered employment before meeting the age and service requirements for retirement benefits, their contributions are generally handled in a specific manner. If a member leaves covered employment with PERF and is not vested, they are typically entitled to a refund of their accumulated contributions. This refund does not include any employer contributions or any earnings on those contributions, as those are contingent upon meeting vesting requirements. The Indiana Code outlines the procedures and entitlement for such refunds, distinguishing between vested and non-vested members. Specifically, Indiana Code § 5-10.2-4-8 governs the refund of contributions for members who are not vested. This section clarifies that a member who withdraws from service before becoming eligible for a retirement benefit is entitled to a refund of their accumulated contributions, without interest. The focus is on the member’s own contributions, not on any employer match or investment gains that would accrue to a vested member. Therefore, the correct handling is a refund of the member’s contributions.

The Indiana Public Retirement System (INPRS) administers various retirement plans for state employees, teachers, and other public servants in Indiana. Understanding the specific provisions and eligibility criteria for these plans is crucial. For a member of the Public Employees’ Retirement Fund (PERF) in Indiana to be eligible for a disability benefit, they must meet several statutory requirements. These typically include having a certain number of credited service years and being unable to engage in any gainful occupation due to a medically determinable physical or mental impairment that is permanent or expected to last for at least 12 consecutive months. The Indiana Code, specifically concerning PERF, outlines these conditions. While specific years of service are often a prerequisite for retirement benefits, disability benefits focus on the inability to work due to a qualifying condition. The law does not mandate a minimum age for disability benefits, nor does it require the impairment to have occurred during active employment, though it must render the individual unable to perform their duties. The key is the permanent or long-term nature of the impairment and its impact on the ability to earn a livelihood.

The Indiana Public Employees’ Retirement Fund (PERF) is governed by specific statutes that define eligibility for retirement benefits, including the concept of “credited service.” Credited service is the period of employment that counts towards an employee’s retirement benefit calculation. Under Indiana Code § 5-10.3-7-3, certain periods of service may be purchased or otherwise recognized to enhance credited service. Specifically, individuals who were previously employed by a political subdivision of Indiana and are subsequently rehired by another political subdivision may be eligible to purchase prior service if certain conditions are met. These conditions typically involve a break in service and a subsequent re-employment with a participating employer. The ability to purchase or transfer service credit is crucial for ensuring that public employees receive benefits commensurate with their total years of service to the state and its subdivisions, even across different governmental entities. The Indiana General Assembly periodically reviews and amends these provisions to ensure the solvency and fairness of the retirement system. Understanding the precise statutory requirements for purchasing or transferring service credit is vital for both plan administrators and participants to accurately determine benefit entitlements.

The scenario involves the Public Employees’ Retirement Fund (PERF) of Indiana and the implications of a participant’s service as a consultant. Indiana Code § 5-10.2-3-6 outlines the conditions under which service performed as an independent contractor or consultant can be credited towards retirement benefits within PERF. Generally, such service is not considered creditable employment unless specific criteria are met, such as being classified as an employee for tax purposes by the hiring entity and contributing to PERF during that period. The question hinges on whether Ms. Albright’s consulting role would qualify for service credit under PERF rules. Given that her role was explicitly as an independent consultant and there is no indication of PERF contributions being made during that time, nor a reclassification as an employee, the service would not be creditable. The Indiana Code emphasizes that “service” for PERF credit typically means employment where contributions are made. Therefore, the 3 years of consulting service would not be added to her creditable service for calculating her pension benefit. This aligns with the principle that retirement systems are funded by contributions made during periods of actual covered employment.

The Indiana Public Retirement System (INPRS) administers various retirement plans for Indiana state employees and public employees. One key aspect of these plans, particularly for defined benefit plans, is the calculation of a retiree’s pension benefit. The formula typically involves a retiree’s average final compensation, years of creditable service, and a multiplier or benefit factor. For instance, a common formula structure is \( \text{Annual Pension} = \text{Average Final Compensation} \times \text{Years of Creditable Service} \times \text{Benefit Factor} \). The Average Final Compensation is usually calculated based on a specific period of the employee’s highest earnings, often the highest consecutive 24 or 36 months of earnings before retirement. The benefit factor is a predetermined percentage established by statute or plan rules. Consider a hypothetical INPRS defined benefit plan member, Ms. Elara Vance, who is retiring after 28 years of creditable service. Her highest consecutive 24 months of earnings averaged \( \$72,000 \) annually. The plan’s benefit factor for her service category is \( 1.7\% \) per year of service. To calculate her annual pension benefit: 1. Identify the Average Final Compensation: \( \$72,000 \) 2. Identify the Years of Creditable Service: 28 years 3. Identify the Benefit Factor: \( 1.7\% \) or \( 0.017 \) Apply the formula: \( \text{Annual Pension} = \$72,000 \times 28 \times 0.017 \) \( \text{Annual Pension} = \$2,016,000 \times 0.017 \) \( \text{Annual Pension} = \$34,272 \) This calculation demonstrates the fundamental method for determining a defined benefit pension. The specific details of the average final compensation period and the benefit factor are crucial and can vary based on the specific INPRS plan and the statutory provisions governing it. Understanding these components is essential for both plan administrators and participants to accurately project and understand retirement income. Indiana law, through statutes like Indiana Code Title 5, Article 10.2, governs the structure and administration of these public retirement systems, ensuring consistency and fairness in benefit calculations.

The scenario involves a public employee in Indiana who participated in a defined benefit pension plan administered by the Indiana Public Retirement System (INPRS). The question pertains to the treatment of this pension benefit for purposes of calculating child support obligations under Indiana law. Indiana Code § 31-15-7-5 specifies that income for child support calculations includes “income from a trust, annuity, or other investment.” While a pension benefit is not directly listed as “income from a trust,” Indiana courts have consistently interpreted this broad language to encompass retirement benefits, including defined benefit pensions, as a form of income available for child support. This interpretation is rooted in the principle that all resources available to a parent should be considered to ensure the child’s financial well-being. Therefore, the present value of the future pension benefit, when it is vested and the employee has a right to receive it, is considered a divisible asset or income stream for child support purposes. The calculation of the present value of a defined benefit pension typically involves actuarial methods to determine the lump sum equivalent of the expected future stream of payments, discounted to the present value, and considering factors like life expectancy and interest rates. This present value is then treated as a divisible asset in the context of divorce or as an income source for child support. The specific Indiana Code section governing child support calculations, IC § 31-16-2-1, defines income broadly to include “all income from any source.” This broad definition supports the inclusion of pension benefits. The key is that the benefit is vested and the employee has a right to receive it, making it a resource that can be factored into support orders.

The Indiana Public Retirement System (INPRS) administers various retirement plans for state employees and public school employees in Indiana. One key aspect of these plans involves the calculation of retirement benefits, often incorporating a final average salary component. For a member to be eligible for a disability retirement benefit under the Public Employees’ Retirement Fund (PERF) of Indiana, specific criteria must be met, including having a minimum of five years of creditable service. The benefit calculation for disability typically involves a percentage of the member’s final average salary, adjusted by factors such as age and years of service. In this scenario, the member has 12 years of creditable service and a final average salary of \$65,000. The PERF disability benefit calculation generally uses a factor of 1.5% for each year of creditable service multiplied by the final average salary, but this is for service retirement. For disability retirement, the benefit is typically the greater of a) the benefit calculated as if the member had completed 20 years of service, or b) the benefit calculated based on actual service, or c) a minimum benefit. Assuming the benefit is calculated as if the member had completed 20 years of service, and applying a common disability benefit factor of 1.5% per year of service, the calculation would be: \(1.5\% \times 20 \text{ years} \times \$65,000\). This simplifies to \(0.015 \times 20 \times \$65,000 = 0.30 \times \$65,000 = \$19,500\). However, PERF disability benefits are often calculated as a percentage of the final average salary, with the percentage determined by the member’s attained age and years of service, or a minimum benefit. A common PERF disability benefit calculation is 50% of the final average salary, provided the member meets certain service requirements and the disability is certified. Given the member has 12 years of service, they meet the minimum service requirement for disability. Therefore, a straightforward calculation often applied is 50% of the final average salary. \(50\% \times \$65,000 = 0.50 \times \$65,000 = \$32,500\). This aligns with the statutory provisions for PERF disability benefits, which aim to provide a substantial portion of pre-disability income. The Indiana Code, specifically concerning PERF, outlines these benefit structures. The key is that the benefit is designed to replace a significant portion of the member’s income due to the inability to continue working. The scenario tests the understanding of how disability benefits are generally structured within Indiana’s public retirement systems, focusing on the percentage of final average salary rather than a complex service-based accrual for disability.

The scenario involves a political subdivision in Indiana, specifically a municipality, that has established a defined benefit pension plan for its firefighters. The question pertains to the proper funding method for such a plan under Indiana law, particularly concerning the actuarial valuation and the determination of the required contribution. Indiana Code § 5-10.3-7-3 outlines the actuarial valuation requirements for governmental retirement funds. It mandates that such valuations be performed at least biennially and that the valuation report include, among other things, the normal cost, the accrued liability, and the amount necessary to amortize any unfunded actuarial accrued liability. The normal cost represents the annual cost of benefits earned by active employees in the current year. The unfunded actuarial accrued liability (UAAL) is the difference between the plan’s liabilities and its assets. Indiana law generally requires that the UAAL be amortized over a period not exceeding thirty years. Therefore, the municipality must determine its required contribution by considering both the normal cost for the current year and the amount needed to amortize its existing unfunded actuarial accrued liability over the statutorily permitted period. This ensures the long-term solvency of the pension fund by systematically addressing any funding shortfalls. The calculation of the annual required contribution (ARC) is a complex actuarial process that begins with an actuarial valuation. This valuation establishes the present value of all benefits earned to date and the present value of all future benefits. The normal cost is the portion of the total projected benefits that is attributed to the current year of service. The unfunded actuarial accrued liability is the difference between the total actuarial accrued liability and the plan’s assets. The ARC is then calculated as the sum of the normal cost and the payment required to amortize the UAAL over the allowable period, which is typically 30 years in Indiana for governmental plans, along with any administrative expenses.

The Indiana Public Retirement System (INPRS) administers various retirement plans for state employees, including the Public Employees’ Retirement Fund (PERF) and the Teachers’ Retirement Fund (TRF). The Indiana Code, specifically IC 5-10.2-3-7, outlines the requirements for a member to be considered “vested” in their retirement benefits. Vesting is the right to receive a pension at a future date, even if employment terminates before retirement age. For PERF members, vesting typically occurs after a certain number of years of creditable service. While the exact number of years can vary based on when a member joined the system and their specific plan provisions, the general principle is that continuous service accrues towards vesting. Once vested, an employee is entitled to a retirement benefit based on their years of service and average final compensation, even if they leave state employment before reaching retirement age. This ensures that employees who dedicate a significant portion of their careers to public service in Indiana are recognized and rewarded for their contributions. The concept of vesting is crucial for understanding the rights and benefits accrued by public employees under Indiana law.

The scenario describes a situation involving a public employee pension plan in Indiana, specifically concerning the calculation of a disability retirement benefit. The relevant Indiana statute for this calculation is likely Indiana Code Title 5, Article 10.2, Article 10.3, or Article 10.5, depending on the specific type of public employee (e.g., state, local, teacher). Assuming the plan is a defined benefit plan, the disability benefit is typically calculated based on the employee’s credited service and their average final compensation, often with a specific multiplier for disability. The question implies a calculation of a monthly benefit. Without the specific plan document or Indiana Code provisions for the exact multiplier and average compensation period, a precise numerical calculation cannot be performed. However, the principle is to determine a monthly benefit amount. For illustrative purposes, let’s assume a hypothetical scenario where the employee has 15 years of credited service and an average annual compensation of \$60,000. If the plan’s disability benefit formula provides 60% of the average final compensation, the annual disability benefit would be \(0.60 \times \$60,000 = \$36,000\). The monthly disability benefit would then be \(\$36,000 / 12 = \$3,000\). This calculation is illustrative and the actual benefit would depend on the specific Indiana public retirement system’s rules. The key concept being tested is the application of Indiana pension law to determine a disability benefit, which involves understanding credited service, average final compensation, and applicable benefit formulas for public employees in Indiana, as governed by state statutes and potentially the specific retirement fund’s administrative rules. The question aims to assess the candidate’s knowledge of how such benefits are structured and calculated under Indiana law, rather than a specific numerical outcome without provided parameters.

The Indiana Public Employees’ Retirement Fund (PERF) is governed by specific statutes and administrative rules. Under Indiana Code § 5-10.3-7-1, PERF members generally have the option to purchase service credit for periods of employment that would otherwise not be recognized. This purchase of service credit is typically done by paying an amount determined by an actuarial calculation, which aims to represent the cost to the fund of providing benefits for that additional service. The statute outlines various circumstances for purchasing service, including prior governmental service in Indiana, military service, and periods of authorized leave of absence. The calculation of the purchase cost is not a simple multiplication of salary by a percentage; rather, it involves complex actuarial assumptions about mortality, retirement age, salary increases, and investment returns, as determined by the actuary for the fund. This ensures that the fund remains actuarially sound by having the member contribute the estimated present value of the additional benefit. For instance, if a member wishes to purchase service for a period of previous Indiana governmental employment, the cost would be calculated based on the member’s age, the salary earned during the period being purchased, and the actuarial factors in place at the time of purchase. The specific formula is not publicly provided in a simple form but is part of the actuarial valuation process. The core principle is that the purchase price should cover the increased liability to the fund.

The Indiana Public Employees’ Retirement Fund (PERF) is governed by IC 5-10.2-3. This section outlines the procedures for withdrawal of contributions. Specifically, IC 5-10.2-3-10 addresses the conditions under which a member may withdraw their accumulated contributions. Upon termination of employment with a participating employer, a member who is not eligible for a retirement benefit may elect to withdraw their accumulated contributions. This withdrawal is typically processed by the Indiana Public Retirement System (INPRS), which administers PERF. The process involves submitting a formal request and can take a specified period for processing, often requiring verification of employment status. The fund is required to pay the accumulated contributions, which include the member’s contributions and any accumulated earnings on those contributions. The law does not mandate any specific investment strategy for the withdrawn funds by the employee, nor does it require INPRS to provide financial advice regarding the withdrawn amounts. The primary obligation of INPRS is to disburse the accumulated contributions accurately and in accordance with the established procedures.

The Indiana Public Employees’ Retirement Fund (PERF) is governed by specific statutes, primarily Indiana Code Title 5, Article 10.2, which details the benefits and administration of the fund. When a PERF member terminates employment before becoming eligible for a pension, they are entitled to a refund of their accumulated contributions. The calculation of this refund involves the member’s contributions plus any accumulated interest. The interest rate applied is determined by the PERF board and is subject to statutory guidelines. For a member who has contributed for a period and then withdraws, the refund amount is precisely the sum of their contributions and the interest earned thereon, as per the fund’s rules and Indiana law. No complex actuarial calculations or employer contributions are refunded in this scenario; only the member’s direct contributions and accrued interest are returned. Therefore, the correct calculation is the total of contributions made by the employee plus the interest credited to their account by PERF.

The scenario involves a governmental retirement plan established by an Indiana political subdivision, which is governed by Indiana Code Title 5, Article 10.2, concerning Public Employees’ Retirement Fund. Specifically, the question pertains to the allocation of employer and employee contributions. Indiana Code § 5-10.2-3-2 outlines the contribution requirements for members and employers. For a defined benefit plan, the employer is responsible for making contributions to fund the benefits earned by employees. The employee’s contribution is typically a fixed percentage of their compensation, as defined by the specific plan document and state law. In this case, the employee contribution rate is stated as 3% of the member’s compensation. The employer contribution, however, is determined actuarially to ensure the plan remains adequately funded. This actuarial valuation considers factors such as employee demographics, salary projections, investment returns, and benefit levels. Therefore, the employer’s contribution rate is not a fixed percentage but is calculated to meet the plan’s funding obligations. The question asks for the employer’s contribution rate, which is determined by actuarial valuation. The provided options represent different potential contribution rates. Without the specific actuarial valuation report for the hypothetical town of Harmony Creek’s pension plan, we must infer the general principle of actuarially determined employer contributions for Indiana public employee retirement systems. The question implies that the employer’s contribution is a separate, calculated amount distinct from the employee’s fixed percentage.

The Indiana Public Retirement System (INPRS) administers various retirement plans for state and local government employees in Indiana. One of the key aspects of these plans is the determination of creditable service, which directly impacts retirement benefits. Creditable service generally includes periods of active employment for which contributions are made to the retirement fund. However, certain periods of absence or leave may also be considered creditable service under specific conditions. Indiana Code § 5-10.2-3-1 outlines the general definition of creditable service. For instance, a member on an authorized leave of absence, such as for military service or disability, may be allowed to purchase or receive credit for such periods. The purchase of service credit often requires the member to make a payment to the retirement fund, typically calculated based on the member’s salary during the period and the applicable contribution rates, plus interest. The Indiana General Assembly has established rules and statutes that govern these purchases and inclusions. Understanding the specific provisions within the Indiana Code and the administrative rules promulgated by INPRS is crucial for accurately calculating retirement benefits. The scenario presented involves an employee who was on an authorized leave for educational purposes. While not automatically creditable, Indiana law and INPRS rules may allow for the purchase of such service under specific conditions, often requiring the employee to pay both the employer and employee contributions for the period, plus actuarial interest. Without specific statutory provisions allowing for the purchase of service credit for educational leave, or INPRS rules permitting it under certain circumstances (e.g., if the education directly benefits the employer), this period would typically not be considered creditable service. The question tests the understanding of what constitutes creditable service and the conditions under which non-employment periods might be recognized, focusing on the statutory framework and administrative discretion within Indiana’s public retirement system.

The Indiana Public Employees’ Retirement Fund (PERF) is governed by specific statutes that dictate how service credit can be purchased or transferred. Under Indiana Code § 5-10.3-7-2, a member may purchase credit for prior service with another Indiana governmental entity if that service was not already credited under PERF and the member was a participant in a retirement plan sponsored by that entity. This purchase typically involves paying the actuarial cost of the service. However, the question presents a scenario where the prior service was with a private sector entity in Illinois, not an Indiana governmental entity, and the employee was not a member of a retirement plan sponsored by that private entity. Furthermore, PERF rules, generally aligned with Indiana Code, do not permit the purchase of service credit for employment with private sector employers, nor for periods where the employee was not covered by a governmental retirement plan. Therefore, the purchase of service credit for this specific Illinois private sector employment, under these conditions, is not permissible under Indiana PERF regulations.

The Indiana Public Retirement System (INPRS) administers various retirement plans for state employees, teachers, and other public servants in Indiana. When a participant in an INPRS plan, such as the Public Employees’ Retirement Fund (PERF) or the Teachers’ Retirement Fund (TRF), separates from service before meeting the age and service requirements for an unreduced pension, they may be entitled to a refund of their accumulated contributions. This refund is governed by specific provisions within Indiana Code, particularly concerning the treatment of employer contributions and any accumulated earnings. According to Indiana Code § 5-10.2-3-2, a member who is not entitled to a retirement benefit may elect to receive a refund of their accumulated contributions. This refund typically includes the member’s own contributions plus any accumulated earnings on those contributions. Employer contributions and any earnings thereon are generally forfeited upon such a refund, unless specific provisions allow for their retention or rollover under certain circumstances, which are not indicated in this scenario. Therefore, the refund amount is calculated based on the member’s contributions and the earnings specifically attributable to those contributions, as reflected in the member’s account balance at the time of separation. The question requires understanding that the refund is limited to the member’s own contributions and their associated earnings, not the total account balance which may include employer contributions.

The Indiana Public Employees’ Retirement Fund (PERF) governs the retirement benefits for state employees in Indiana. When a PERF member terminates employment before meeting the age and service requirements for retirement benefits, they have options regarding their accumulated contributions. Specifically, a member can choose to withdraw their accumulated contributions. Indiana Code § 5-10.3-7-1 outlines the procedures and consequences of such withdrawals. Upon withdrawal, the member forfeits all rights to any future pension benefits from PERF based on that service. The withdrawal amount typically includes the member’s contributions plus any accumulated interest as defined by PERF rules. This action is a forfeiture of future pension rights, not a simple deferral or a conversion to a different benefit type. The question tests the understanding of the direct consequence of withdrawing contributions from the PERF system before being vested for retirement.

The Indiana Public Retirement System (INPRS) administers various retirement plans for state and local government employees. A key aspect of these plans is the determination of service credit, which directly impacts retirement benefits. For a participant to receive full service credit for a period of employment, they generally must have worked at least half-time during that period. This is a common standard across many public pension systems, including those governed by Indiana law, to ensure that part-time or intermittent work does not artificially inflate retirement benefits. If an employee works less than half-time for a given period, they may not accrue full service credit for that time, or in some cases, no service credit at all, depending on the specific plan rules and Indiana statutes governing INPRS. The determination of “half-time” is typically defined by the employer, but it must be consistent with the overall framework of the retirement plan and applicable state law. Therefore, an employee working 20 hours per week in a position that is considered full-time at 40 hours per week would be considered half-time and would accrue full service credit for that period. Conversely, working 15 hours per week would likely not meet the half-time threshold for full service credit accrual.

The Indiana Public Retirement System (INPRS) is governed by specific statutes that dictate how its funds are managed and how benefits are disbursed. When a participating employee in a governmental unit covered by INPRS separates from service before meeting the age and service requirements for unreduced retirement benefits, they are generally entitled to a refund of their accumulated contributions, if they elect to receive it. This refund typically includes the employee’s own contributions plus any credited interest. However, the Indiana Code, specifically concerning INPRS, outlines that if a member withdraws their contributions, they forfeit any future claims to benefits from the system based on that service. This forfeiture is a critical aspect of pension law, ensuring that benefits are provided only upon meeting the statutory retirement conditions. The calculation of the refund amount itself is based on the member’s contributions and the credited interest rate, which is determined by INPRS. For instance, if a member contributed \( \$50,000 \) over their career and earned \( \$15,000 \) in credited interest, their total refund would be \( \$65,000 \). Upon receiving this refund, the member relinquishes their right to a pension based on the service for which the refund was taken. This principle is fundamental to defined benefit pension plans, including those administered by INPRS, as it prevents individuals from receiving both a lump-sum withdrawal and a future pension for the same period of service.

The Indiana Public Retirement System (INPRS) administers various retirement plans for state employees, teachers, and other public servants. For a participating employer in Indiana, the determination of a member’s creditable service for retirement purposes is a fundamental aspect governed by specific statutes. Creditable service is generally defined as periods of employment for which contributions have been made to the retirement fund, or periods otherwise recognized by law as qualifying service. Indiana Code § 5-10.2-3-3 outlines the general rules for creditable service, including provisions for prior service credit, service purchased from other governmental units, and service rendered before the establishment of a particular retirement system. When a public employee transitions between different governmental units within Indiana, or even between different retirement systems administered by INPRS (e.g., from the Public Employees’ Retirement Fund (PERF) to the Teachers’ Retirement Fund (TRF) under certain circumstances), the ability to “reciprocate” or transfer service credit is crucial. This reciprocity is typically governed by specific provisions within the Indiana Code, such as those found in IC § 5-10.2-3-7, which allows for the transfer of creditable service between PERF and TRF, provided certain conditions are met, including the member being an active member of one of the systems and making the required contributions. The question asks about the creditable service for an employee who was previously employed by a different Indiana political subdivision. This scenario directly implicates the rules for inter-system transfers and prior service credit. The key is whether the previous employment was with a governmental entity covered by an Indiana public retirement system and whether the statutory requirements for transferring or recognizing that service have been met. Without specific details on whether the prior service was with a governmental entity covered by an Indiana public retirement system and whether the member has met the statutory requirements for transfer or prior service credit, it is impossible to definitively state the amount of creditable service. However, the most accurate general statement regarding the potential for creditable service from previous employment with another Indiana political subdivision, assuming it was a governmental entity covered by a public retirement system and statutory transfer provisions are met, is that it can be considered creditable service.

The Indiana Public Retirement System (INPRS) administers various retirement plans for state and local government employees in Indiana. A key aspect of these plans involves understanding how different types of service impact a member’s retirement benefit calculation. Service credit, often referred to as “creditable service,” is crucial for determining eligibility for retirement and the final benefit amount. INPRS distinguishes between different categories of service, such as prior service with a participating employer, military service, and periods of leave. For instance, Indiana Code § 5-10.2-3-2 outlines the general provisions for creditable service. When a member has service with multiple Indiana political subdivisions that participate in INPRS, the system generally allows for the aggregation of this service, provided certain conditions are met, such as a break in service not exceeding a specified period. However, service rendered before a political subdivision became a participating employer in INPRS, or service from a non-participating entity, may not be creditable without specific provisions or buy-back options. Military service, under federal law like the Uniformed Services Employment and Reemployment Rights Act (USERRA) and state provisions, often grants creditable service, sometimes with a requirement for the member to make contributions. The calculation of a retirement benefit typically involves a formula that multiplies years of creditable service by a benefit multiplier and the member’s average final compensation. Therefore, accurately identifying and crediting all eligible service periods is paramount to ensuring a correct retirement benefit calculation under INPRS. The scenario presented involves a member with service in a non-participating Indiana municipality prior to its joining INPRS. Unless there is a specific statutory provision or plan rule allowing for the crediting of such pre-participation service, or if the member makes a required contribution to “buy back” this service, it would not typically be considered creditable service for INPRS benefit calculation purposes. The Indiana General Assembly has the authority to enact laws governing these public retirement systems, and amendments to Indiana Code can alter how service is credited.

The scenario involves a potential violation of the Employee Retirement Income Security Act of 1974 (ERISA) by a fiduciary of an employee benefit plan. Specifically, the question probes understanding of prohibited transactions under ERISA Section 406, which generally bars fiduciaries from engaging in certain dealings with plan assets for their own benefit or on behalf of parties in interest. In this case, the plan administrator, acting as a fiduciary, is contemplating a loan of plan assets to a company in which he holds a significant ownership interest. This constitutes a prohibited transaction because it involves a transfer of plan assets to, or for the benefit of, a party in interest (the administrator’s company) and is a loan of money or other extension of credit. ERISA Section 408 provides for certain exemptions to these prohibitions, but these typically require specific conditions to be met, such as obtaining an individual exemption from the Department of Labor or meeting the requirements of a statutory exemption. A simple, arm’s-length transaction, even if beneficial to the plan, does not automatically exempt a fiduciary from engaging in a transaction with a party in interest that is otherwise prohibited under Section 406. The critical element is the fiduciary relationship and the involvement of a party in interest in a transaction that benefits that party or the fiduciary directly or indirectly. Indiana law, while regulating pension and employee benefits, generally defers to federal law like ERISA for most aspects of private sector employee benefit plans. Therefore, the analysis hinges on ERISA’s prohibitions against self-dealing and transactions with parties in interest by plan fiduciaries.

The Indiana Public Employees’ Retirement Fund (PERF) is governed by Indiana Code Title 5, Article 10.2. Specifically, IC 5-10.2-4-6 addresses the calculation of retirement benefits for members who are eligible for early retirement. This statute outlines that an early retirement benefit is calculated by reducing the normal retirement benefit by a specific percentage for each month the member retires before reaching age 65. The reduction factor is 0.5% per month, which equates to a 6% annual reduction. Therefore, for a member retiring 30 months before age 65, the total reduction is \(30 \text{ months} \times 0.5\%/\text{month} = 15\%\). This means the member receives 85% of their calculated normal retirement benefit. The question asks for the percentage of the normal retirement benefit received, which is \(100\% – 15\% = 85\%\). The explanation focuses on the statutory basis for early retirement reductions in Indiana’s PERF system, emphasizing the calculation of the reduction percentage based on months prior to normal retirement age and the resulting benefit factor. This understanding is crucial for plan administrators and members to accurately project retirement income.

The scenario involves a potential violation of Indiana’s public employee retirement system rules regarding concurrent employment and benefit accrual. Indiana Code § 5-10.2-3-6 addresses limitations on receiving benefits from more than one public retirement fund within Indiana. Specifically, it prohibits a member from receiving benefits from a retirement plan established under IC 5-10.2 or IC 5-10.3 while simultaneously being employed in a position covered by any Indiana public retirement plan. The core principle is to prevent individuals from drawing a pension and earning further retirement credits from another public employer concurrently, which could lead to an undue accumulation of benefits. In this case, Mr. Abernathy is receiving a benefit from the Indiana State Teachers’ Retirement Fund (TRF) and is also employed as a part-time consultant for the Indiana Department of Transportation (INDOT), which is covered by the Public Employees’ Retirement Fund (PERF). This concurrent participation, where he is both receiving benefits from one Indiana public retirement system and employed in a position covered by another, directly contravenes the intent and letter of IC 5-10.2-3-6. The law is designed to maintain the integrity and financial soundness of the state’s retirement systems by ensuring benefits are paid upon retirement from public service, not during continued public employment covered by another plan. Therefore, the situation described presents a clear instance of a statutory violation.