TRF Member Handbook: Retiring from TRF

Retirement Application

If you are ready to retire, you must complete the application process through the Retirement Application Center.

  • You can plan to get your first retirement benefit check one to two months after you retire, if:
    • you submit your application at least 90 days before the date you retire, and
    • your employer sends us information on your final day worked and your wages.
  • If you annuitize the money in your DC or RSA with MetLife, you can choose the date to receive your monthly annuity payment.

Your Retirement Date

Your retirement date will be the first day of the month. Once you decide your last day of work, then your retirement date will be the first day of the next month. If your birthday is the first day of the month, your birthday will be your retirement date.

The last day you work is normally your “benefit accrual date.” This is your “separation date,” or the last day you are physically at work. This date is used when we calculate your monthly retirement benefit.

Even though your retirement date is the first of the month, you will be paid for any days in the prior month you were not physically in the classroom.

Snow Days

You receive pay for snow days, but you must make them up later. If you work more days in a month to make up for snow days, your last day at work will still be the last day you are working in the classroom. If you have questions, please call us at (844) GO-INPRS.

Factors

The amount of your monthly retirement benefit is based on the following factors:

  • Benefit multiplier. This amount is 1.1 percent. It is used in the math formula to come up with your monthly retirement benefit.
  • Average annual compensation (yearly salary). This is the average dollar amount of your five highest yearly salaries. These are salaries you received working in a covered position.
  • Years of service. Service credit you earned while working. You may also purchase service credit.
  • Age at retirement. If you retire early, the amount of your monthly retirement benefit will be less.
  • Retirement option. You will have several options when you retire. The amount of your monthly retirement benefit will change for each option.
 

Example

You

Final average salary

$50,000.00

$

Benefit multiplier

x     .011

x    .011

Retirement benefit base amount

$550.00

$

Years of service

x       30

x           

Annual retirement benefit

$16,500.00

$

Monthly benefit

/        12

/        12

Calculated as an A-1 option

$1,375.00

$

Benefits Calculator

You may calculate your own benefit estimate online here.

Other methods for calculating an estimated monthly benefit include:

Method 1

  • Login to your online account.
  • Click on the TRF Pension tab.
  • Select the Calculator “Estimate Retirement Benefit.”
  • Fill in a retirement date. Click on “Apply Projected Retirement Date.”
  • Answer the questions on beneficiary and social security.
  • Click on “Calculate.”

You will receive an estimate of your monthly retirement benefit.

Method 2

From the TRF benefit estimate calculator, calculate an estimate by entering your projected retirement date, your final average salary and your years of service.

Method 3

From the TRF benefit estimate calculator on this site or in your online account, calculate an estimate by using information from your latest Social Security statement. To qualify for this Social Security Integration payment option, you must be less than age 62 at retirement and you must enter your estimated Social Security income.

Retirement Benefit Payment Options

When you retire, you will be able to select one of six options for your monthly retirement benefit. You may also be able to choose an option to add your social security to your benefit.* You can do this if you are less than age 62 when you retire. If you choose this option, your monthly payment may be less after age 62, or could even stop. Please contact us at (844) GO-INPRS with questions.

Every option will give you a lifetime monthly benefit. When you pass away, some options let you provide lump sum benefits to a beneficiary or your estate. Or, you can name a survivor to receive a monthly benefit after your death. The choice you make will determine the amount of your monthly retirement benefit.

The minimum retirement benefit for a regularly retired TRF member who receives an unreduced retirement benefit is $185 per month.

*More information on Social Security benefits is available online here.

You may change your designated survivor and/or retirement option at any time, for any reason.

  • If your survivor is your spouse and he or she is living when you make the change, you must obtain his or her written consent.
  • If you get divorced after you retire, your divorce decree must permit the change.

Your monthly retirement benefit is exempt from seizure, levy, attachment, and other processes.

The only exception to this rule is garnishment by the IRS, state or your employer for certain criminal actions, or failure to pay taxes.

NOTE: TRF is a governmental plan. It is exempt from the provisions of the Employee Retirement Income Security Act (ERISA). Therefore, INPRS does not recognize Qualified Domestic Relations Orders (QDROs) as described in ERISA.

Five-Year Certain and Life

With this retirement option, you receive a lifetime monthly benefit. If you pass away before receiving five years of payments, your beneficiary will get that monthly benefit for the remainder of those five years. The beneficiary can also choose a lump sum equal to the present value of those remaining payments. Payments to the beneficiary stop at the end of that five year period.

Straight Life

You receive a monthly benefit for life, but there are no monthly payments to anyone after your death. However, if you combine your DC with your retirement benefit check, there could be remaining ASA money. TRF will add up the monthly retirement benefit and DC payments paid before your death. If the total of monthly payments is less than your DC balance when you retired, your beneficiary will get the difference.

Because survivor options (100 Percent Survivor Benefit, 66-2/3 Percent Survivor Benefit and 50 Percent Survivor Benefit) provide for a survivor benefit, your monthly retirement benefit is decreased.

100 Percent Survivor Benefit

You receive a monthly benefit for life. After you pass away, the same monthly benefit will be paid to your joint survivor beneficiary for his/her lifetime. Contact TRF if your joint survivor beneficiary is not a spouse; there are restrictions (age, child, etc.)

66-2/3 Percent Survivor Benefit

You receive a monthly benefit for life. After you pass away, 66-2/3 percent of your benefit will be paid to your joint survivor beneficiary for his/her lifetime. Contact TRF if your joint survivor beneficiary is not a spouse: there are restrictions (age, child, etc.)

50 Percent Survivor Benefit

You receive a monthly benefit for life. After you pass away, one-half of your benefit will be paid to your joint survivor beneficiary for his/her lifetime.

Social Security Integration

If you retire between ages 50 and 62, you may combine the TRF monthly retirement benefit with your estimated Social Security benefits. INPRS pays a larger monthly benefit before age 62. The payment may be greatly reduced or terminated at age 62. Your estimated monthly Social Security payment determines if your INPRS payment will be reduced or terminated. INPRS does not work in conjunction with Social Security. This option will not impact the benefit received from Social Security.

Deductions

You can choose to have additional taxes taken out of your monthly retirement benefit. We can take out federal, state, and/or county taxes for you. If you choose the group health insurance we offer to retired TRF members, we can also take out your monthly premiums.

Cost of Living Adjustment (COLA)

Cost of living adjustments (COLAs) are increases made to your monthly retirement benefit payment to help if the cost of living is more than when you retired. We do not include your annuitized DC when calculating your COLA.

You will receive a COLA only if the General Assembly passes legislation. Your COLA will normally be a percentage of your current retirement benefit. Usually those who have been retired longer will see a larger increase.

13th Check

The 13th check is a lump sum, single payment we make to you. It is a single payment and does not increase your base monthly retirement benefit. The amount we pay you is based on your creditable service.

You will receive a 13th check only if the General Assembly passes legislation.

DC Options at Retirement

When you retire, you choose what you want to do with your Annuity Savings Account (ASA).

Monthly DC

Your Defined Contribution (DC) account will be paid out the same day if submitted prior to 4 p.m. on the Retirement Application Center. If your application is received after 4 p.m., your DC will be paid the next business day.

Beginning Jan. 1, 2018, INPRS will no longer be among your choices of annuity providers at retirement. However, we have partnered with MetLife to offer annuities at competitive rates. With the transition to MetLife not only will you still have the ability to purchase a lifetime income annuity with all your INPRS defined contribution (DC) account assets, but also just a portion of those assets.

Who is impacted?

If your retirement date is Jan. 1, 2018 or later, INPRS will no longer be among your choices of annuity providers. Please visit the MetLife Retirement Income Center to get an annuity estimate. You are not required to annuitize with MetLife. You may annuitize with any annuity provider of your choice. If you do not wish to annuitize your retirement funds, you are not impacted.

For more information go to the FAQs about INPRS annuities, here.

MetLife Annuity – You may elect to use the total amount of your Defined Contribution (DC) account to purchase a MetLife Annuity. Your options are:

  • Straight Life Annuity with Cash Refund
  • 100% Survivor Annuity with Cash Refund
  • 66 2/3% Survivor Annuity with Cash Refund
  • 50% Survivor Annuity with Cash Refund

Visit the MetLife Retirement Income Center to get an annuity estimate.

Withdraw Pre-1987 Portion of Defined Contribution Account/MetLife Annuity

You may elect to receive a distribution of an amount equal to your tax basis (after-tax contribution) in your Defined Contribution (DC) account balance as it existed on Dec. 31, 1986. The remainder of your DC will be used to purchase a MetLife Annuity. Your options are:

  • Straight Life Annuity with Cash Refund
  • 100% Survivor Annuity with Cash Refund
  • 66 2/3% Survivor Annuity with Cash Refund
  • 50% Survivor Annuity with Cash Refund

Visit the MetLife Retirement Income Center to get an annuity estimate.

Direct Rollover – You may elect to have the entire taxable portion of your Defined Contribution (DC) account paid in the form of a direct rollover to an IRA or Qualified Retirement Plan. You may elect to receive a distribution of an amount equal to your tax basis (after-tax contribution) in your DC balance as it existed on Dec. 31, 1986 paid directly to you or in the form of a direct rollover. You must complete your IRA or Qualified Retirement Plan information.

Split Defined Contribution (DC) Account Balance – You may elect to split your Defined Contribution (DC) account between the options listed below.

  • MetLife Annuity
  • Direct Rollover
  • Lump Sum
  • Defer

You may elect to receive a distribution paid directly to you of an amount equal to your tax basis (after-tax contribution) in your DC balance as it existed on Dec. 31, 1986. You must complete your IRA or Qualified Retirement Plan information if you choose to roll over a portion of your DC.

You may elect to use this percentage of your DC to purchase a MetLife Annuity:

  • Straight Life Annuity with Cash Refund
  • 100% Survivor Annuity with Cash Refund
  • 66 2/3% Survivor Annuity with Cash Refund
  • 50% Survivor Annuity with Cash Refund

Visit the MetLife Retirement Income Center to get an annuity estimate.

For 100%, 66 2/3% or 50% annuity survivor Benefit – designate only one survivor.

Full Withdrawal – You may elect to have the total amount of your Defined Contribution (DC) account (less mandatory federal income tax withholding) paid directly to you.

Full Deferment – You may elect to defer distribution of your Defined Contribution (DC) account until a later date. Your account will continue to be invested with INPRS according to your directions. Distribution must begin April 1 of the calendar year after the year in which you turn age 70 ½. If you do not want your assets in this account paid to your estate at your death, you must designate a beneficiary.

Partial Deferment/Withdraw Pre-1987 Portion of Defined Contribution Account/MetLife Annuity

You may elect to receive a distribution of an amount equal to your tax basis (after-tax contribution) in your Defined Contribution (DC) account balance as it existed on Dec. 31, 1986 and defer distribution of the remainder of my DC until a later date. Your account will continue to be invested with INPRS according to your directions. Distribution must begin April 1 of the calendar year after the year in which you turn age 70 ½. If you do not want your assets in this account paid to your estate at your death, you must designate a beneficiary. 


TRF Member Handbook: Rollover Savings Account