Section 35IAC1.2-5-5. "Basic salary" or "compensation" defined

   (a) Subject to subsections (b) and (c), "basic salary" or "compensation" means all compensation included as gross income and paid to the employee, as reported on the member's W-2, for covered service by a covered employer, plus the amounts stated in IC 5-10.2-4-3 that are not paid directly to the member. Subject to the limitations described in subsection (b), compensation includes, but is not limited to, vacation pay, sick pay, and employee bonuses. Certain fringe benefits, as defined in Internal Revenue Code Section 132(a), are not included in gross income.

  (b) Compensation of not more than two thousand dollars ($2,000) pursuant to and in accordance with IC 5-10.2-4-3(e) (in contemplation of retirement) may be used in the total annual compensation from which the average of the annual compensation is determined. This includes, but is not limited to, retirement bonuses, commutation of unused sick or personal leave, and payments made under the retiree leave donversion [sic, conversion] program (RLCP) as set forth in 31 IAC 5-10.

  (c) "Basic salary" does not include investment incentive bonus compensation paid under an investment incentive bonus plan or executive director incentive bonus plan established by the INPRS board, and no contributions are to be paid on such compensation.

  (d) A member's basic salary or annual compensation must be certified by an official of the employing unit who has knowledge of and access to the records as set forth in IC 5-10.3-7-11. A member may not certify his or her basic salary or annual compensation. (Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-5-5; filed Dec 20, 1988, 1:00 p.m.: 12 IR 1082; readopted filed Dec 2, 2001, 12:35 p.m.: 25 IR 1265; adopted Nov 9, 2007: 20071205-IR-035070818ONA; adopted Nov 19, 2010: 20101208-IR-035100722ONA; adopted Sep 14, 2012: 20120926-IR-035120542ONA; adopted Nov 4, 2016: 20161116-IR-035160500ONA)