Sec. 2. (a) The legislators' retirement system is established. The system consists of the legislators' defined benefit plan described in IC 2-3.5-4 and the legislators' defined contribution plan described in IC 2-3.5-5.

(b) The following funds are established:

(1) The fund for the legislators' defined benefit plan.

(2) The fund for the legislators' defined contribution plan.

Each of the funds shall be administered by the board. Each of the funds is a trust, separate and distinct from all other entities, maintained for the purpose of paying benefits to participants and their beneficiaries and paying the costs associated with administering the plan.

(c) Within the fund for the legislators' defined benefit plan established by subsection (b)(1), the board shall maintain a supplemental allowance reserve account for the purpose of paying postretirement benefit adjustments, including postretirement benefit increases, thirteenth checks, and other benefit changes or adjustments granted by the general assembly after June 30, 2018, to members of the legislators' defined benefit plan. The account consists of:

(1) amounts allotted to the account by the board from amounts transferred to the Indiana public retirement system under IC 4-30-16-3;

(2) amounts appropriated or transferred to the account by the general assembly; and

(3) donations, gifts, bequests, and devises made to the account.

(d) The board shall adopt rules under IC 4-22-2 necessary for the administration of the plans and funds described in subsections (a), (b), and (c).

As added by P.L.6-1989, SEC.1. Amended by P.L.35-2012, SEC.5; P.L.127-2018, SEC.1.