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Committee advances bill to transition retirement medical accounts, add state match
Summary
The committee unanimously passed SB 10 to implement a transition from the retirement medical benefits account (RIMBA) to a defined-contribution approach, add a dollar-for-dollar state match up to statutory caps, and permit certain elections during an open enrollment; the measure passed 12-0.
Senator Rogers presented Senate Bill 10, explaining the bill implements a plan required by prior legislation to transition the retirement medical benefits account (RIMBA) into a defined-contribution model intended to better serve employees who leave state service before full retirement eligibility.
The sponsor said the bill responds to workforce changes and the observation that roughly half of state employees never receive RIMBA benefits because they leave state employment before becoming fully retirement-eligible. The proposal would terminate RIMBA subaccounts after 12/31/2026 for affected participants and transfer balances to successor defined-contribution accounts or allow a one-time irrevocable election during prescribed open enrollment.
State Comptroller Elise Neshala testified in support and described the package as revenue-neutral for a non-budget year. "The increase for state employees in this match would be $13 a paycheck," Neshala said, explaining the match was set decades ago at $15 per paycheck and that present-day value considerations motivate the change. She and the sponsor said the change is designed to provide more flexible retirement savings for employees who do not remain in state service until full retirement eligibility.
Tony Green, deputy director of the Indiana Public Retirement System (INPRS), and INPRS staff were available to answer technical questions; committee members expressed appreciation for the work done with the Comptroller and INPRS. After brief discussion, the committee moved to pass SB 10, and the roll call produced a 12-0 tally; the bill moved out of committee.
The bill is expected to proceed according to chamber rules for scheduling further consideration.
