1. (a) After December 31, 2020, a member who meets all of the following requirements may elect to withdraw all or part of the amount in the member's annuity savings account:

   1. (1) The member has terminated employment with the applicable fund and is not currently employed in a covered position for the applicable fund.

   2. (2) The member makes the election described in this subsection:

      1. (A) after December 31, 2008, if the member is a member of the public employees' retirement fund; or
      2. (B) after June 30, 2009, if the member is a member of the Indiana state teachers' retirement fund.

   3. (3) Except as provided in subsection (b), the member is not eligible for:

      1. (A) before July 1, 2011, a reduced or unreduced retirement; or

      2. (B) after June 30, 2011, an unreduced retirement;

         under IC 5-10.2-4 on the date the fund receives notice of the election described in this subsection.

2. (b) The requirement described in subsection (a)(3) does not apply to a member of the public employees' retirement fund who:

   1. (1) was eligible for a reduced or unreduced retirement; and

   2. (2) received a distribution under this section;

      after December 31, 2008, and before June 30, 2010.

3. (c) A member who elects to withdraw all or part of the amount in the member's annuity savings account under subsection (a) shall provide notice of the election on a form provided by the board.
4. (d) The election to withdraw all or part of the amount in the member's annuity savings account is irrevocable.
5. (e) The board shall pay an amount withdrawn from the member's annuity savings account under this section as a lump sum.
6. (f) Except as provided in subsection (g), a member who makes a withdrawal under this section is entitled to receive, when the member becomes eligible to receive and applies for a retirement benefit under IC 5-10.2-4 , a retirement benefit equal to the pension provided by employer contributions computed under IC 5-10.2-4 .

7. (g) A member who:

   1. (1) transfers creditable service earned under the fund to another governmental retirement plan under section 1(i) of this chapter; and

   2. (2) withdraws the member's annuity savings account under this section to purchase the service;

      may not use the transferred service in the computation of a retirement benefit payable under subsection (f).

8. (h) After June 30, 2019, a member's withdrawal of all or part of the member's annuity savings account under:

   1. (1) this section; or

   2. (2) rules adopted by the board with respect to the Pension Protection Act of 2006;

      has no effect on the member's service credit or pension.

9. (i) Subject to the Pension Protection Act of 2006 and notwithstanding any state law, after December 31, 2020, an active member who:

   1. (1) becomes age and service eligible for normal retirement; and

   2. (2) is at least fifty-nine and one-half (59 1/2) years of age;

      may withdraw all or part of the amount in the member's annuity savings account without consequence to the member's pension benefit under the fund and without separating from a covered position.

As added by P.L.115-2008, SEC.8. Amended by P.L.115-2009, SEC.1; P.L.99-2010, SEC.2; P.L.13-2011, SEC.4; P.L.40-2017, SEC.6; P.L.179-2018, SEC.7; P.L.27-2019, SEC.2; P.L.51-2020, SEC.2.