Indiana Code Title 5. State and Local Administration § 5-10-8.5-11

Sec. 11. (a) The INPRS shall adopt provisions to establish a retirement medical benefits account as a health reimbursement arrangement or as a separate fund under another applicable section of the Internal Revenue Code for the purpose of funding by an employer on a pretax basis benefits for sickness, accident, hospitalization, and medical expenses for a participant and the spouse and dependents of a participant after the participant's retirement.

(b) The INPRS shall administer the account and may request the assistance of the department, the fund, and other state agencies.  The account shall be maintained as a separate account to pay benefits for sickness, accident, hospitalization, and medical expenses for retired participants and their spouses and dependents.

(c) Notwithstanding any other provision of this chapter, the INPRS may not establish the account or implement the health reimbursement arrangement unless the general assembly makes a specific appropriation to implement the health reimbursement arrangement.

(d) The INPRS may adopt rules and regulations under IC 5-10.5-4-2 that it considers appropriate or necessary to administer the account.