Indiana Code Title 5. State and Local Administration § 5-10.3-6-10

Sec. 10. (a) If a political subdivision with a retirement system becomes a participant, the moneys and securities in the retirement system shall be transferred to the fund.  If the securities to be transferred are not acceptable to the board, they shall be converted to cash, which shall be transferred to the fund.

(b) If there are insufficient funds transferred under subsection (a), then the political subdivision shall pay the fund, either in a single payment or in installment payments approved by the board, the amount needed.  If the political subdivision is unable to make any payment, the board may reduce proportionately each benefit payable to retired members.

(c) The liabilities of a retirement system which is transferred to the fund are not liabilities of the fund, except as provided by agreement between the fund and the political subdivision.