Section 35IAC1.2-6-12. Withdrawal of political subdivisions and miscellaneous participating entities

   (a) The withdrawal of a political subdivision, as defined in IC 5-10.3-1-6, or miscellaneous participating entity, as defined in IC 5-10.2-1-4.3, is governed by IC 5-10.3-6-8 and this rule.

  (b) Whenever a political subdivision or miscellaneous participating entity intends to stop participation in PERF, not as a result of the termination of the political subdivision or miscellaneous participating entity as an entity or as a result of the political subdivision or miscellaneous participating entity selling all their assets, the following process will apply:

(1) The withdrawing political subdivision or miscellaneous participating entity shall notify PERF in writing of its intent to withdraw and stop participating.

(2) The date of the notice shall be the first day of a political subdivision or miscellaneous participating entity's payroll period.

(3) The withdrawing political subdivision or miscellaneous participating entity shall provide the names of current and former employees as of the date the notice was provided.

(4) No further employee or employer contributions shall be made and no further service credit shall accrue from the date of the notice.

(5) INPRS will determine the political subdivision or miscellaneous participating entity liabilities as described in IC 5-10.3-6-8 as of the date of the notice.

(6) The political subdivision or miscellaneous participating entity shall contribute to PERF the amount necessary to pay the liability in a lump sum or amortized over a two (2) year period beginning with the notice date.

(7) Two (2) years after the notice date, if all the requirements of IC 5-10.3-6-8 and this rule have been met, a termination date shall be set by INPRS.

  (c) Should a political subdivision or miscellaneous participating entity:

(1) revoke its notice of intent to withdraw after receiving notification of its liabilities;

(2) file another notice of intent to withdraw within one hundred eighty (180) days of receipt of its notification of liabilities; or

(3) request another calculation of its liabilities for any reason within one hundred eighty (180) days of the previous calculation of its liabilities;

the political subdivision or miscellaneous participating entity shall pay the cost of the additional calculation.

  (d) Should a political subdivision or miscellaneous participating entity revoke its notice of intent to withdraw, the past contributions plus interest, if any, will be immediately due and payable to INPRS at the current actuarial interest assumption. (Board of Trustees of the Indiana Public Retirement System; 35 IAC 1.2-6-12; adopted Sep 16, 2011: 20110928-IR-035110563ONA; adopted Apr 26, 2013: 20130508-IR-035130167ONA; adopted Sep 11, 2015: 20150923-IR-035150302ONA)