1. (a) This section does not apply to a:

   1. (1) retired participant or the spouse and dependents of a retired participant; or
   2. (2) participant who is eligible to receive an additional contribution under section 16 of this chapter.

2. (b) Subject to applicable federal tax law, except as provided in subsection (c), the following apply after December 31, 2026:

   1. (1) Each participant's membership in the retirement medical benefits account is terminated.
   2. (2) The amounts in each participant's subaccount are forfeited.

   3. (3) The INPRS shall do the following for each participant:

      1. (A) Terminate the participant's membership in the retirement medical benefits account.
      2. (B) Transfer the amounts in the participant's subaccount to the state general fund to be used in the manner required under subdivision (4).
   4. (4) The state comptroller shall transfer from the state general fund to each participant's defined contribution plan under IC 5-10-1.1-1.5 (a) an amount equal to the balance in each participant's subaccount at the time the subaccount was forfeited under subdivision (2) in accordance with the amounts a member would have received under section 15 of this chapter based on each member's age and years of service.

3. (c) Subsection (b) does not apply to a participant who makes a one

   1. (1) time irrevocable election to become a participant in a successor retirement medical benefits account. An election under this subsection must be made to the INPRS:
   2. (1) during the open enrollment period for state employees; and
   3. (2) not later than December 1, 2026.

As added by P.L.104-2026, SEC.7.