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Current as of January 02, 2024 | Updated by Findlaw Staff
Sec. 3.5. (a) This section applies to an individual who becomes an employee of the state after June 30, 2007.
(b) Unless an employee notifies the state that the employee does not want to enroll in the deferred compensation plan or makes an affirmative election under subsection (h), on day thirty-one (31) of the employee's employment:
(1) the employee is automatically enrolled in the deferred compensation plan; and
(2) the state is authorized to begin deductions as otherwise allowed under this chapter.
(c) The state comptroller shall provide notice to an employee of the provisions of this chapter. The notice provided under this subsection must:
(1) contain a statement concerning:
(A) the purposes of;
(B) procedures for notifying the state that the employee does not want to enroll in;
(C) the tax consequences of; and
(D) the details of the state match for employee contribution to;
the deferred compensation plan; and
(2) list the telephone number, electronic mail address, and other contact information for the plan administrator.
(d) This subsection applies to contributions made before July 1, 2011. Notwithstanding IC 22-2-6, except as provided by subsection (h), the state shall deduct from an employee's compensation as a contribution to the deferred compensation plan established by the state under this chapter an amount equal to the maximum amount of any match provided by the state on behalf of the employee to a defined contribution plan established under section 1.5(a) of this chapter.
(e) This subsection applies to contributions made after June 30, 2011, and before July 1, 2013. Notwithstanding IC 22-2-6 and except as provided by subsection (h), during the first year an employee is enrolled under subsection (b) in the deferred compensation plan, the state shall deduct each pay period from the employee's compensation as a contribution to the deferred compensation plan an amount equal to the greater of the following:
(1) The maximum amount of any match provided by the state on behalf of the employee to a defined contribution plan established under section 1.5(a) of this chapter.
(2) One-half percent (0.5%) of the employee's base salary.
(f) This subsection applies to contributions made after June 30, 2013. Notwithstanding IC 22-2-6 and except as provided by subsection (h), during the first year an employee is enrolled under subsection (b) in the deferred compensation plan, the state shall deduct each pay period from the employee's compensation as a contribution to the deferred compensation plan an amount equal to the greater of the following:
(1) The maximum amount of any match provided by the state on behalf of the employee to a defined contribution plan established under section 1.5(a) of this chapter.
(2) Two percent (2%) of the employee's base salary.
(g) This subsection applies to a year:
(1) after the first year in which an employee is enrolled in the deferred compensation plan; and
(2) in which the employee does not affirmatively choose a contribution amount under subsection (h).
The percentage of the employee's base salary used for the year in subsection (e)(2) or (f)(2) to determine the employee's contribution increases by one-half percent (0.5%) from the percentage determined in the immediately preceding year. The maximum percentage of an employee's base salary that may be deducted under this subsection is five percent (5%). The contribution increase occurs on the anniversary date of the employee's enrollment in the deferred compensation plan.
(h) An employee may affirmatively elect to enroll in the deferred compensation plan in the amount described in subsections (d) through (g). An employee may contribute to the deferred compensation plan established by the state under this chapter an amount other than the amount described in subsections (d) through (g) by affirmatively choosing to contribute:
(1) a higher amount;
(2) a lower amount; or
(3) zero (0).
Cite this article: FindLaw.com - Indiana Code Title 5. State and Local Administration § 5-10-1.1-3.5 - last updated January 02, 2024 | https://codes.findlaw.com/in/title-5-state-and-local-administration/in-code-sect-5-10-1-1-3-5/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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