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Indiana Public Retirement System

Indiana Public Retirement System (INPRS) > My Fund > Public Employees > PERF Hybrid Plan Member Handbook: After Retirement PERF Hybrid Plan Member Handbook: After Retirement

A Family Matter

While all of these questions aren’t directly related to PERF membership and benefits, answering “yes” to the questions below may give you peace of mind.

  1. Do you review your financial obligations and resources with your family?
  2. Does your family know what your PERF benefits are, and what will or won’t change in the event of your death?
  3. Is your family aware of how your money is managed, such as bank accounts, investments, and insurance policies?
  4. Are your records complete with contact numbers for your bank, PERF, and any insurance agents or companies? Are they organized so someone else can read and find them?
  5. Are children or others you count on involved in money matters that affect them? Is someone you trust in a position to help manage your family’s finances if needed?

Tax Forms and Withholding

By January 31 of each year, PERF mails 1099-R forms to all benefit recipients. The 1099-R form is like a W-2 form. It lists the total amount of benefits received during the year. It also shows the taxable and non-taxable amounts. PERF can withhold Indiana and Federal taxes. County taxes can be withheld if you withhold state taxes. If you didn’t complete tax withholding forms when you retired, you can do that at any time.

PERF can withhold Federal tax based upon your marital status and the number of exemptions claimed. Please note: you must enter a withholding choice (married with three exemptions, single, etc.) before choosing an additional flat, whole dollar amount. You can go online to download the forms, or call or write to request them.

Direct Deposit

Direct deposit is the required method to provide your benefit payments. Direct deposit eliminates the chance that your check will be late, lost, or stolen. If you change banks, contact PERF about starting again at a new bank and filling out a new PERF direct deposit form.

If you change account numbers with the same bank, or if you change banks, contact PERF. Do NOT close your old account until you know funds are being deposited into your new account. It may take up to 60 days for the change to take effect.

Lost Check Replacement

If you are one of the few who receives a check, it should arrive by the 25th of the month. Contact the PERF office about late checks. We can begin the replacement process 10 days after the monthly benefit checks were mailed.

Death of a Member

In the event of your death, a surviving family member should contact PERF. This allows us to stop your benefit payments and make payments to the named beneficiaries. PERF needs a copy of your death certificate with your name, Social Security number and date of death. The family may keep the check received in the month of your death. Any payments received after that time, must be returned. Please call and mail or fax a copy of the death certificate to PERF. Include your name, relationship to the deceased member and your telephone number, so we can contact you for further information.

Surviving Beneficiary

PERF will verify the retiree’s death. Then PERF will notify the surviving beneficiary of anything that he or she may need to do in order to start receiving their benefit.

For this reason it is very important that you let PERF know your beneficiary’s current address.

Declining or Passing Through a Benefit

Indiana law allows a beneficiary to decline a bequest. The law also decides how the bequest is handled if the beneficiary declines it. For more specific information on your situation, please contact PERF directly.

Changing Your Beneficiary after Retirement

When you name a beneficiary or beneficiaries on your Retirement Application and it has been processed, changes are only allowed in limited circumstances. Your ability to make changes depends on the option you chose. Be certain which benefit option you chose, then check the chart below to find out the changes you may make.

Your Retirement Option Beneficiary Changes Available
Five-Year Certain and Life, Social Security Integration or Modified Cash Refund Plus 5-Year Certain and Life (formerly options 10, 61 and 71) You can change your beneficiary up to five years from the effective date of your retirement.
Straight Life (formerly Option 20) at any time You can change your beneficiary under certain conditions.
100% Survivor Benefit, 66 2/3% Survivor Benefit or 50% Survivor Benefit (formerly Options 30, 40 or 50) at retirement You cannot make a change as long as your joint survivor beneficiary is alive (with the exceptions shown below):
  • If you divorce, you can change your joint survivor beneficiary or form of benefit unless the dissolution of marriage prohibits it. This applies to dissolution of marriage either within the state of Indiana or out of state.
  • If you were single when you retired and then marry, you can change your joint survivor beneficiary to name your spouse.
100% Survivor Benefit, 66 2/3% Survivor Benefit or 50% Survivor Benefit (formerly Options 30, 40 or 50) at retirement and your beneficiary dies first You may name a new joint survivor beneficiary, or change to retirement Option 20.

For 100% Survivor Benefit, 66 2/3% Survivor Benefit or 50% Survivor Benefit (formerly options 30, 40 and 50), you must file a copy of your spouse or joint survivor beneficiary’s death certificate. If you marry, you will need to file a copy of your marriage license. PERF will also need the birth certificate of your new joint survivor beneficiary. Please note that changing your joint survivor beneficiary may have a big impact on your monthly benefit.

If you are a retired member, you may change your joint survivor beneficiary or form of benefit after a divorce unless the divorce decree or property settlement agreement prohibits it. This event is one of a limited number of events when a joint survivor beneficiary may be changed after retirement.

Changes will become effective after INPRS receives completed forms and required documents. The changes ARE NOT retroactive.

Working after Retirement

You can go back to work after you retire and still receive PERF retirement benefits. You must have ended service for at least 30 days if you return to a PERF-covered position. For example, if you stop working on May 18, your retirement date is June 1. You would qualify to re-employ in a PERF-covered position on or after June 18. If you return to a PERF-covered position within 30-days after ending service, your retirement is void and you will not qualify for pension benefits.

Your PERF application for retirement benefits is void if you have an agreement, formal or informal, prior to your retirement, with a covered employer to return to work in a covered position. Your effective retirement date is the first day of the month in which you received retirement benefits. There is no limit on earnings for retired members who return to work in a PERF-covered position. Service credit is no longer earned and no money is put into your ASA.

If you retired from another Indiana public pension fund (such as the 1977 Police Officers’ and Firefighters’ Pension and Disability Fund), you do not have a minimum period of separation before taking a PERF-covered position with the same employer if you are age 55 or older. If you are younger than 55, you must separate from service for 30 days before returning to work.

Benefit Payment or Underpayment

Occasionally, errors occur in benefit calculation. If such an error is discovered, INPRS is required by federal and state law to correct errors at any time, including after you take a distribution of your account balance. If you receive an overpayment as a result of any error, INPRS is required by federal and state law to recover benefit overpayments. If you have an underpayment, you will receive an additional payment from INPRS.

Receiving Monthly Benefits While Continuing to Work

At Age 70 with 20 years of Service

You can receive retirement benefits while still working in a PERF-covered position if you are 70 with at least 20 years of creditable service. If you choose to receive monthly retirement benefits while working in a PERF-covered position, you can no longer earn service credit toward retirement. You can continue contributing to your ASA. If you choose this option, you can’t withdraw your continued contributions and earnings until you end service.

Special Provisions for Those in Elected Office

You may begin receiving retirement benefits while continuing to work in an elected position if you:

  • are in a qualified elected position covered by PERF (either by election or appointment),
  • have turned age 55, and
  • have 20 or more years of creditable service.

If you retire and receive benefits and you are later elected or appointed to a PERF-covered position, you may continue to receive benefits. If you continue your benefits, you will not earn any more service credit. You can choose to make ASA contributions but it is not required. If you stop retirement benefits, the mandatory 3 percent contribution must be made to your ASA. You will continue to earn service credit. You can’t withdraw your continued contributions and earnings until you end service.

Section Five: Confidentiality of Fund Records