1. (a) The general assembly shall appropriate an amount from the state general fund that is sufficient to cover the state's actuarial liability for each member covered by the pre-1996 account and for each state employee covered by the 1996 account. The board may reduce this liability by the amount of interest earned on the deposits in the fund. This liability is determined by the actuarial investigation required by IC 5-10.2-2-9 .
2. (b) The actuarial investigation and the board shall include in the determination of the liability, contribution rate, and appropriation the amount necessary to fully fund any past and estimated future cost of living increases for members of the pre-1996 account and the 1996 account, amortized over a term determined by the board that does not exceed thirty (30) years.

3. (c) The board shall:

   1. (1) prepare its budget based on this investigation and for other specified expenditures; and
   2. (2) submit the budget to the governor or to another officer or committee authorized by law to recommend the necessary appropriation.
4. (d) Each school corporation shall contribute to the 1996 account as specified in IC 5-10.4-7 .

5. (e) If members receive compensation from federal funds, the board shall determine the employer's contribution, excluding administrative expenses, at the end of each fiscal year, to be paid from federal funds. The amount shall be determined by a method adopted by the board that results in an equitable sharing of the employer contribution by the federal government on account of members receiving compensation from federal funds.

   [Pre-2006 Education Finance Recodification Citation: 21-6.1-2-5.]

As added by P.L.2-2006, SEC.28. Amended by P.L.111-2015, SEC.3.