Section 5-10.3-6-8.5 - Certain state university employees involved in health care(a) This section only applies if: (1) certain employees of a state university in a departmental, occupational, or other definable classification involved in health care are terminated from employment with the state university as a result of:(A) a lease or other transfer of university property to a nongovernmental entity; or(B) a contractual arrangement with a nongovernmental entity to perform certain state university functions;(2) the state university requests coverage under this section from the board; and(3) the board approves the request.(b) The withdrawal of the employees described in subsection (a) from the fund is effective on a termination date established by the board. The board may not establish a termination date that occurs before all of the following have occurred: (1) The state university has requested coverage under this section and provided written notice of the following to the board:(A) The intent of the state university to terminate the employees from employment.(B) The names of the terminated employees as of the date that the termination is to occur.(2) The expiration of a thirty (30) day period following the filing of the notice with the board.(3) The state university fully complies with subsection (c).(c) A member who is an employee of the state university described in subsection (a) as of the date of the notice under subsection (b) and who is listed in the notice under subsection (b) is vested in the pension portion of the member's retirement benefit. The state university must contribute to the fund the amount the board determines is necessary to completely fund the vested benefit. The contribution by the state university must be made in a lump sum or in a series of payments determined by the board.(d) A member who is covered by subsection (c) and who is at least sixty-five (65) years of age may elect to retire under IC 5-10.2-4-1 even if the member has less than ten (10) years of service. The benefit for the member shall be computed under IC 5-10.2-4-4 using the member's actual years of creditable service.(e) The board shall evaluate each withdrawal under this section to determine if the withdrawal affects the fund's compliance with Section 401(a) of the Internal Revenue Code of 1954, as in effect on September 1, 1974. The board may deny an employee permission to withdraw if the denial is necessary to achieve compliance with Section 401(a) of the Internal Revenue Code of 1954, as in effect on September 1, 1974.As added by P.L. 38-1996, SEC.1.