TRF Member Handbook: Retiring from TRF

Retirement Application

If you are ready to retire, you must fill out an Application for Retirement Benefits.

  • You can plan to get your first pension 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 ASA or RSA, you can expect your monthly annuity payment to begin two to three months after your retirement date.

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 pension 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 (888) 286-3544.

Factors

The amount of your monthly pension 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 pension 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 pension benefit will be less.
  • Retirement option. You will have several options when you retire. The amount of your monthly pension benefit will change for each option.
 

Example

You

Final average salary

$50,000.00

$

Benefit multiplier

x     .011

x    .011

Pension 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 pension 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.

Pension Benefit Payment Options

When you retire, you will be able to select one of six options for your monthly pension 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 (888) 286-3544 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 pension benefit.

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

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

You may change your designated survivor and/or pension 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 pension 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 pension 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 ASA with your pension check, there could be remaining ASA money. TRF will add up the monthly pension and ASA payments paid before your death. If the total of monthly payments is less than your ASA 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 pension 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 pension 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 pension 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 pension benefit payment to help if the cost of living is more than when you retired. We do not include your annuitized ASA 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 pension 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 pension 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).. Please note: We value the amount you have in your ASA one day after your retirement application is received. You have the following options:

Monthly DC

Your Annuity Savings Account (ASA) will be valued the day after receipt of your application. If your application is received after 4 p.m., your ASA will be valued the next business day. It will be transferred to a Fixed Value Fund in order to minimize loss while your request is processed. However, you may transfer your monies between investment options at any time before we receive your application. You may transfer monies by phone or online.

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 Annuity Information page, here.

Withdraw Non-Taxable Portion/Monthly ASA

With this ASA option you withdraw the non-taxable portion of your ASA as it existed on Dec. 31, 1986. The remainder of your ASA will be paid as a monthly benefit through a MetLife annuity.

Direct Rollover

You may choose to have the entire taxable portion of your ASA rolled over to a Qualified Retirement Plan. The after-tax (tax basis) will be paid directly to you. The amount will equal the after-tax (tax basis) balance of your ASA as it existed on Dec. 31, 1986.

If you choose to take the non-taxable portion of your ASA, those funds could include voluntary post-tax contributions.

Partial Rollover/Partial Withdrawal

You may receive a portion of the taxable portion of your ASA as a direct rollover to a Qualified Retirement Plan. The portion that is not rolled over will be paid directly to you. The amount will equal the after-tax (tax basis) balance of your ASA as it existed on Dec. 31, 1986.

If you choose to take the non-taxable portion of your ASA, those funds could include voluntary post-tax contributions.

Full Withdrawal

When you withdraw your entire ASA, you may have your ASA paid directly to you.

Full Deferment

You may leave your ASA invested with TRF. If you do this, you delay distribution of your ASA balance. IRS regulations require distributions by April 1 of the calendar year after you turn age 70 1/2. Your funds remain invested according to your directions until you choose to receive them. At a later date, you may choose one of the other options listed.

Partial Deferment/Withdraw Non-Taxable

You may choose to receive an amount equal to your after-tax (tax basis) of your ASA as it existed on Dec. 31, 1986. You may delay distribution of the remainder of your ASA until a later date. IRS regulations require distributions by April 1 of the calendar year after you turn age 701/2.

With this option, we would pay you the money in your account from before Dec. 31, 1986, as you have already paid the tax on that money.


TRF Member Handbook: Rollover Savings Account