1. (a) The state, through the budget agency, shall adopt a defined contribution plan, under Section 401(a) of the Internal Revenue Code, for the purpose of matching all or a specified portion of state employees' contributions to the state employees' deferred compensation plan and for any additional purposes established by statute.
2. (b) The deferred compensation committee shall be the trustee of a plan established under subsection (a) as described in section 4 of this chapter. A plan established under subsection (a) shall be administered by the state comptroller as described in section 5 of this chapter.
3. (c) The deferred compensation committee may approve funding offerings for a plan established under subsection (a), which may be the same as offerings for the state employees' deferred compensation plan. All funds in each plan shall be separately accounted for but may be commingled for investment purposes.
4. (d) This subsection applies before January 1, 2027. Contributions to a plan established under subsection (a) are limited to the amount of biennial appropriations the budget agency determines are available for any such purposes.
5. (e) This subsection applies after December 31, 2026. Subject to subsections (f) and (g), after December 31, 2026, the state shall make contributions to the defined contribution plan established for each state employee under subsection (a) that match, dollar for dollar, each employee's contributions to the employee's deferred compensation plan.

6. (f) The following apply to state contributions under subsection (e):

   1. (1) State contributions may not exceed twenty-eight dollars ($28) for each payroll warrant or payroll authorization.
   2. (2) State contributions are limited to the amount of biennial appropriations the budget agency determines are available for any such purposes.
   3. (3) Before any increase in the state contribution amount, the amount must be reviewed by the budget committee established by IC 4-12-1-3 .

7. (g) The budget agency may do the following in consultation with the state comptroller:

   1. (1) Suspend, in extraordinary financial circumstances, the payment of state contributions under subsection (e).
   2. (2) If sufficient funds are available, resume the payment of state contributions following the suspension of payments under subdivision (1).
   3. (3) If sufficient funds are available, make contributions to the defined contribution plan established for each state employee under subsection (a) in an amount equal to the contributions that each state employee did not receive as a result of the suspension of payments under subdivision (1).
8. (h) The deferred compensation committee may use funds available under the plan to hire or contract with qualified attorneys, financial advisers, or other professional or administrative persons that the committee believes are necessary or useful in the administration of the plan.
9. (i) A plan established under subsection (a) must include appropriate provisions concerning the plan's day to day operation and any other provisions that are appropriate. Notwithstanding IC 22-2-6-2 , the plan may also include provisions for the use of automated voice response units and telephonic communications, online activities, and other technology for participant elections, directions, and services if the technology has sufficient capacity to record and store the elections and directions.
10. (j) The state board of finance shall extend the plan established under subsection (a) to any political subdivision that also elects to use the state employees' deferred compensation plan for its employees as authorized in section 7(b)(2) or 7(b)(3) of this chapter.

As added by P.L.195-1999, SEC.7 and P.L.273-1999, SEC.231. Amended by P.L.184-2001, SEC.2; P.L.220-2005, SEC.1; P.L.9-2024, SEC.122; P.L.104-2026, SEC.2.