Section 5-10.4-8-11 - Contributions and earnings belong to member; vesting in employer contribution subaccount; forfeiture of employer contributions(a) Member contributions and net earnings on the member contributions in the member contribution subaccount belong to the member at all times and do not belong to the employer.(b) A member is vested in the employer contribution subaccount in accordance with the following schedule: Years of participation in the plan | Vested percentage of employer contributions and earnings |
1 | 20% |
2 | 40% |
3 | 60% |
4 | 80% |
5 | 100% |
For purposes of vesting in the employer contribution subaccount, only a member's full years of participation in the plan may be counted.
(c) The amount that a member may withdraw from the member's account is limited to the vested portion of the account.(d) A member who attains normal retirement age is fully vested in all amounts in the member's account.(e) If a member separates from service with an employer before the member is fully vested in the employer contribution subaccount, the amount in the employer contribution subaccount that is not vested remains in the employer contribution subaccount as unvested employer contributions until, and only to the extent that, the unvested employer contributions:(1) become vested in accordance with subsection (b);(2) are forfeited in accordance with subsection (f); or(3) in some proportion, become vested under subdivision (1) and forfeited under subdivision (2).(f) A member forfeits unvested employer contributions in the member's employer contribution account on the earliest of the following dates: (1) The date of the member's death.(2) The date that the member withdraws the member's money from the plan.(3) The date that the plan is required to distribute the member's money from the plan.(g) Amounts forfeited under subsection (f) must be used as determined by the board.(h) A member may not earn creditable service (as defined in IC 5-10.2-3-1(a) ) under the plan.Added by P.L. 217-2017,SEC. 58, eff. 7/1/2017.