Section 35IAC2-1-6. Calculation of prior service cost for transferred members

   (a) If a unit becomes a participant in the 1977 Fund under the conditions of IC 36-8-8-18, the INPRS actuary determines the cost of the prior service. The amount the police officers or firefighters pay is the accumulated amount of contributions each member would have paid into the 1977 Fund (contributions of six percent (6%) of the first class officer salary with three and one-half percent (3.5%) annual interest) during the most recent years prior to transferring to the 1977 Fund.

  (b) If the unit previously covered police officers, firefighters, or emergency medical technicians (as defined in IC 36-8-8-18.1) in PERF, the amount that the unit and the member must contribute to the 1977 Fund under IC 36-8-8-18 shall be reduced by the amounts transferred to the 1977 Fund under IC 36-8-8-18.1. The amount credited to the ASA to be transferred to the 1977 Fund shall be the full cost of the service if the member's ASA balance is enough to fund the full cost. If the member's ASA balance is less than the full cost of the service, the existing ASA balance should be transferred and used to reduce the member cost. The member shall owe the remaining balance and shall pay the balance pursuant to the service purchase rules in section 2 of this rule. If the member's ASA balance is more than the full cost of the service, the ASA balance remaining after the amount equal to the full cost of service is transferred to the 1977 Fund shall remain in the ASA account. (Board of Trustees of the Indiana Public Retirement System; 35 IAC 2-1-6; adopted Jun 20, 2014: 20140820-IR-035140335ONA; adopted Nov 4, 2016: 20161116-IR-035160500ONA)