Section 35IAC2-1-8. Transfer of employee contribution from certain Indiana public retirement funds assets for service purchases

   (a) If an employee beneficiary makes a transfer pursuant to and in accordance with IC 36-8-10-12.5(d), the employee waives all previous service credit to the extent of the contributions from the eligible public retirement fund from which the transfer was made.

  (b) Residual service credit in the previous fund remains with the previous fund until canceled by the member by taking a permissible refund, retirement, or by operation of law.

  (c) Residual service credit will be calculated using the rate of employee contributions for the previous position at the time of termination from the previous position as follows:

(1) Determine the annual employee contribution amount for one (1) year of service in the previous plan.

(2) Subtract the transferred amount from the employee's ASA or contribution account used to purchase the service at the actuarial cost in the sheriff's plan.

(3) Divide the residual balance by the annual contribution amount made by the employee or picked up by the employer during the last period of covered employment in the previous position. The quotient represents the residual service credit amount, if any, in the previous plan.

  (d) The amount of service credit associated with the transfer to the sheriff's plan cannot be used in the previous plan. (Board of Trustees of the Indiana Public Retirement System; 35 IAC 2-1-8; adopted Nov 4, 2016: 20161116-IR-035160500ONA)