Where will you land in retirement?
The older you get, the more you may dislike cold weather and bad winters. As you consider retirement, relocating to a warmer climate may be on your wish list. Have you done your homework on the most affordable places to live in retirement?
If you move, will your sales tax increase? Will you rent or buy? If you downsize to a smaller home, how will your property taxes be affected?
Inflation could rise during your retirement. Simply put, basic necessities such as housing and health care can deplete a large portion of your income. Will your pension check and Social Security be enough to live on? Will you have extra money to travel and participate in recreational activities?
You may want to meet with your financial adviser to discuss your retirement options based on your goals.
How healthy is INPRS?
The Indiana Public Retirement System (INPRS) has adopted what may be the most conservative public pension investment return assumption in the nation.
In June, the system’s board reduced the rate to 6.75 percent from 7 percent. INPRS is now the lowest among the 126 public systems monitored by the annual
Public Fund Survey. It is the only one below 7 percent.
“This is a prudent move by our board to recognize potential long-term global market realities,” said INPRS Executive Director Steve Russo. “The risks and consequences of assuming a too high rate of return justify a conservative approach to this and other actuarial assumptions.”
Since 2008, 45 public pension plans have reduced their return assumptions. Most now use 8 percent, and more than 90 percent assume 7.5 percent or more, according to the
National Association of Retirement System Administrators.
The overall strength of the INPRS system today contributed to the board’s ability to adopt the 6.75 percent assumed return, Russo noted. “While many states have struggled to make necessary contributions to their pension funds, Indiana is in an enviable position due to the strong financial discipline of state officials and lawmakers,” he said.
Indiana pension facts:
- Indiana has the lowest burden per household to fully fund public pensions in the country.
- Indiana has the second lowest combined pension and long-term debt liability as a percentage of GDP in the country.
Are you social?
Since our launch into social media, members have been liking us on Facebook, following us on Twitter, and viewing us on YouTube by the hundreds. Have you connected with us socially?
Get bite-sized pieces of information to help you understand the plan, asset allocation, retirement planning and more!
Calling all pension secretaries
If you are a pension secretary, controller, clerk treasurer or trustee who interacts with the 1977 Police Officers’ and Firefighters’ Pension and Disability Fund, you should have received a letter notifying you of the upcoming pension secretaries seminar.
To recap, INPRS is offering a free seminar to this group on Nov. 16 from 10 a.m. to 11:30 a.m. in the Indiana Government Center South auditorium.
Attendees will receive information on the disability process, pension relief, transitioning to the new Employer Reporting and Maintenance (ERM) system and best practices for pension secretaries. This session will provide an opportunity to ask questions regarding the fund.
Reservations are not required. For more information, contact the Employer Pension Plan Administration (EPPA) team at (888) 876-2707 or via e-mail at
eppa@inprs.in.gov.
PARF members: mark your calendars
Members of the Prosecuting Attorneys’ Retirement Fund (PARF) are invited to attend a conference sponsored by the Indiana Prosecuting Attorneys’ Council (IPAC) on Dec. 4 at the J.W. Marriott in Indianapolis.
INPRS representatives will provide a general overview of the PARF and the Public Employees’ Retirement Fund (PERF). A question and answer session will follow.
PARF members may direct questions to the IPAC at (317) 232-1836 or via e-mail at
ipacinfo@ipac.in.gov.
The IPAC is a non-partisan, independent state judicial branch agency and was created by statute in 1973. It is made up of Indiana's 91 prosecuting attorneys and their chief deputies and governed by a 10 member board of directors chosen from among the state's prosecuting attorneys.
Did you miss the date?
Q. I’m a 1977 Fund member who is considering the partial lump sum distribution option at retirement. Do I need to apply by a specific date?
A. As stated in the Spring 2012 newsletter, the partial lump sum distribution option expired July 1, 2012. This election required you to retire no later than June 30, 2012.
The partial lump sum distribution option was offered in exchange for an actuarially reduced lifetime monthly benefit. The lump sum would equal your monthly benefit times your years of service.
More information is available in the
Fall 2010 newsletter or in the
1977 Fund online handbook. Contact INPRS with questions at (888) 526-1687 or e-mail at
questions@inprs.in.gov.
Three months, one quarter...it’s all the same
Here are some dates for submitting retirement applications to INPRS. For more information about retirement, visit our
Web site.
