Ind. Code § 5-10-8-6 – Establishment of common and unified plans by state law enforcement agencies; trust fund for prefunding state contributions and OPEB liability; submission of plan documents to budget agency and INPRS

(a) The state police department, conservation officers of the department of natural resources, and the state excise police may establish common and unified plans of self-insurance for their employees, including retired employees, as separate entities of state government. These plans may be administered by a private agency, business firm, limited liability company, or corporation. Any modification to:
1. (1) eligibility requirements;
2. (2) required premiums;
3. (3) change the benefits under the plan; or
4. (4) any other plan provisions;
  may not be made unless the modification is approved by the budget agency on or before September 1 of each year, with an annual review of the modifications by the budget committee.
(b) Except as provided in this section and IC 5-10-14 , the state agencies listed in subsection (a) may not pay as the employer part of benefits for any employee or retiree an amount greater than that paid for other state employees for group insurance.
(c) This subsection applies to a health benefit plan for an individual described in subsection (a). At least one (1) time in each state fiscal year, the INPRS shall determine the average amount of contributions made under IC 5-10-8.5-15 and IC 5-10-8.5-16 to participants in a health reimbursement arrangement or other separate fund under IC 5-10-8.5 in the immediately preceding state fiscal year. An amount equal to the average amount determined under this subsection multiplied by the number of participants (other than retired participants) in the plans described in subsection (a) shall be transferred to the plans described in subsection (a). The amount transferred under this subsection shall be proportionally allocated to each plan relative to the number of members in each plan. The amount allocated to a plan under this subsection shall be allocated among the participants in the plan in the same manner as other employer contributions. Funds shall be used only to reduce unfunded other post-employment benefit (OPEB) liability and not to increase benefits or reduce premiums.
(d) Trust funds may be established to carry out the purposes of this section. A trust fund established under this subsection is considered a trust fund for purposes of IC 4-9.1-1-7 . Money may not be transferred, assigned, or otherwise removed from a trust fund established under this subsection by the state board of finance, the budget agency, or any other state agency. Money in a trust fund established under this subsection does not revert to the state general fund at the end of any state fiscal year. A trust fund established under this subsection consists of appropriations, revenues, or transfers to the trust fund under IC 4-12-1 . Contributions to a trust fund established under this subsection are irrevocable. A trust fund established under this subsection must be limited to providing prefunding of annual required contributions and to cover OPEB liability for covered individuals. Funds may be used only for these purposes and not to increase benefits or reduce premiums. A trust fund established under this subsection shall be established to comply with and be administered in a manner that satisfies the Internal Revenue Code requirements concerning a trust fund for prefunding annual required contributions and for covering OPEB liability for covered individuals. All assets in a trust fund established under this subsection:
1. (1) are dedicated exclusively to providing benefits to covered individuals and their beneficiaries according to the terms of the health plan; and
2. (2) are exempt from levy, sale, garnishment, attachment, or other legal process.
  A trust fund established under this subsection shall be administered by the agency employing the covered individuals. The expenses of administering a trust fund established under this subsection shall be paid from money in the trust fund. Notwithstanding IC 5-13 , the treasurer of state shall invest the money in a trust fund established under this subsection not currently needed to meet the obligations of the trust fund in the same manner as money may be invested by the Indiana state police pension trust under IC 10-12-2-2 . The trustee shall also comply with the prudent investor rule set forth in IC 30-4-3.5 . The trustee may contract with investment management professionals, investment advisors, and legal counsel to assist in the investment of the trust and may pay the state expenses incurred under those contracts from the trust. Interest that accrues from these investments shall be deposited in the trust fund.
(e) On or before July 15 of each year, each state agency listed in subsection (a) shall submit to the budget agency and the INPRS the current plan documents and any other related information for any common and unified plan established under subsection (a) as well as any proposed modification to the plan under subsection (a). The budget agency and the INPRS may request additional information from a state agency listed in subsection (a) to analyze the impact of any proposed modification to the state's contribution and post-employment liability under the plan. In addition, the budget agency and the INPRS may enlist the assistance of the state personnel department and a third party, independent actuary to analyze any information related to a proposed modification under this subsection and subsection (a).
(f) If a state agency listed in subsection (a) fails to provide any information under subsection (e) to the budget agency, the budget agency may recommend to the budget committee that the state personnel department manage the state agency's common and unified plans established under subsection (a) during the next succeeding calendar year.
[Pre-Local Government Recodification Citation: 4-15-5-5 part.]
As added by Acts 1980, P.L.8, SEC.41. Amended by Acts 1982, P.L.36, SEC.1; P.L.24-1985, SEC.13; P.L.14-1986, SEC.11; P.L.8-1993, SEC.53; P.L.24-2005, SEC.1; P.L.170-2005, SEC.15; P.L.1-2006, SEC.95; P.L.227-2007, SEC.55; P.L.229-2011, SEC.68; P.L.138-2012, SEC.2; P.L.217-2017, SEC.52; P.L.108-2019, SEC.84.