We've stopped the presses to go green
Say goodbye to the days of rummaging through your file cabinet to locate the quarterly newsletter you filed away months ago. In January 2012, our newsletter officially became an online publication.
Conversion to an electronic newsletter has helped reduce costs associated with printing, and postage, which is beneficial to members.
You can access the newsletter at any time. The INPRS Web site is available 24/7.
Is saving for retirement on your radar?
Mortgages and car payments are usually the two biggest expenses that people have. If you're contemplating retirement, do you pay off your house, or sell it and move into a retirement community? Do you keep your current vehicle that's paid off, or buy a new one?
It's sad and true, but one or two unfortunate life events can cause your retirement plan to spiral. Choose to Save®* recommends keeping unexpected income changes in mind when considering retirement:
- Most retirees will live on a fixed income, mainly Social Security and a pension check
- Prepare for higher healthcare costs for prescriptions and doctor appointments
- Budget to pay for federal and state income taxes if you choose not to withhold on a monthly basis
You may want to meet with a financial advisor to discuss your retirement options based on your goals.
*A program of the Employee Benefit Research Institute's Education and Research Fund.
Did you say extra money?
Indiana public pensions could get some additional financial support thanks to legislation passed by the General Assembly, which was signed by Governor Daniels in March.
House Enrolled Act (HEA) 1376 sets aside money to help increase the funding status to 80 percent for funds of the Indiana Public Retirement System (INPRS). Those funds include the State Excise Police, Gaming Agent, Gaming Control Officer and Conservation Enforcement Officers' Retirement Plan, the Judges' Retirement System and the Prosecuting Attorneys' Retirement Fund. The State Police Fund, which INPRS does not administer, will also benefit from this funding.
Reducing economic risk by seeking better diversification
INPRS' Board of Trustees recently approved a new investment asset allocation aimed at maintaining the system's strong financial condition while better protecting it against unfavorable economic environments.
The new asset allocation is expected to:
- Achieve the actuarial expected rate of return over the long term
- Provide better diversification of risks, including less exposure to public equities (stocks)
The new asset allocation includes a strategy called risk parity, an approach to investment management that focuses on the allocation of risk instead of capital (money).
This is the first asset allocation specifically for INPRS, which was created with the July 2011 merger of the TRF and the PERF. "While the system's seven funds remain legally separate," said INPRS Executive Director Steve Russo, "we expect to find significant savings as we consolidate investment managers while implementing a new system-wide asset allocation."
Are you on target?
Members have had the option to direct their Annuity Savings Account (ASA) funds into a Target Date Fund (TDF) since Summer 2010.
TDFs operate as a pre-packaged mix of diversified investment options, geared toward the date you retire. TDFs automatically shift their riskier asset allocations to more conservative options as the retirement date approaches.
New members who do not specify an asset allocation for their ASAs are automatically defaulted into a TDF based on age.
While target date funds are ideal for some, they are not the right choice for everyone. Take a look at the TRF Interactive online demo which offers a quiz to help you learn more about your investor profile. Then, log in to TRF Interactive to ensure your investment elections are on target for the retirement you want.
Get the gist of INPRS and the law
The Indiana Public Retirement System (INPRS) must follow the laws initiated by the Indiana General Assembly which are signed by the governor.
The Indiana General Assembly is the state legislature, or legislative branch of the state of Indiana. The legislature consists of the Indiana House of Representatives and the Indiana Senate. The General Assembly has sole legislative power within the state government.
Each house can initiate legislation. Bills are debated and passed separately in each house, but must be passed by both houses before they can be submitted to the governor.
The last step in the enactment process is for the governor to sign the bill or to let it become law without signature. Bills become effective on July 1 of the year they are enacted unless a different effective date is specified in the bill.
INPRS is a qualified governmental pension plan governed under section 401(a) of the Internal Revenue Code. We are required under federal law to follow not only applicable federal laws, but also the laws put in place by the Indiana General Assembly pertaining to the administration of the seven funds we administer.
For more information on the Indiana General Assembly, please visit their Web site at http://www.in.gov/legislative/index.htm.
Don't put off naming your beneficiary
Your beneficiary is the person or institution you name to receive the money remaining in your Annuity Savings Account (ASA) and/or any remaining pension payments upon your death. This is based on your retirement option election.
Selecting a beneficiary before and after retirement ensures that INPRS will be able to pay any money due to those you designate, after you pass away.
Before retirement
If you pass away while in service and do not have the age and service to be eligible for a pension benefit, your designated beneficiary will receive your ASA money.
Before retirement and while still in active service, your survivor beneficiary is defined by law. This is the person who will receive all or a portion of your pension or a monthly survivor benefit upon your death. A survivor is eligible if you die in service and have at least 15 years of service at any age, or between 10 and 14 years of service and are at least 65 at the time of death.
After retirement
When you retire, you need to inform INPRS who should receive any unpaid ASA or pension monies due, based on your retirement election. This does not have to be the same person.
At retirement, you may designate a person to continue receiving 100 percent, two-thirds, or half of your pension benefit. This person is your designated survivor beneficiary.
More information is available online in the TRF Handbook: http://www.in.gov/inprs/files/TRFMemberHandbook.pdf
Logging in is a breeze
Q. How do I log in to TRF Interactive?
A. Go online to www.inprs.in.gov and click on Member Login.
- Click on TRF Member Login.
- Enter your most recently updated User ID and passcode.
- If you have never accessed your online account, use your Social Security number (SSN) for the User ID and the passcode
previously mailed to you.
If you have questions, contact our customer service center at (888) 286-3544, or e-mail us at
questions@inprs.in.gov.
What do I do here?
Q. What can I do on TRF Interactive?
A. You can manage various aspects of your account 24/7 such as:
- Allocate current Annuity Savings Account (ASA) balances and future contributions
- Check your account's daily valuation
- View account activity (transactions, gains/losses) for a specified period of time
- Obtain an estimate on your estimated monthly pension benefit at retirement
- View past quarterly statements
- Update address and beneficiary information
- Review/print prior year's 1099s
- Apply for retirement
- Apply for an ASA distribution (only if no longer employed in a PERF- or TRF-covered position)
Go to
www.inprs.in.gov and select Member Login to take control of your retirement!
How's that calculated?
Q. I'm a member of the Teachers' Retirement Fund (TRF) and will be retiring soon. How will my retirement pension benefit be calculated?
A. The amount of a member's monthly pension benefit is based on the following factors:
- Benefit multiplier: 1.1 percent (.011)
- Average annual compensation: The average of the five
highest years of annual compensation earned for service
in a covered position
- Years of service: Service credit earned or purchased by
a member
- Member's age at retirement: Early retirement results in
a reduction in the monthly pension benefit
- Retirement option selected
More information is available online in the TRF Handbook:
http://www.in.gov/inprs/files/TRFMemberHandbook.pdf
Make your money work for you
Knowing where your money is, how it's invested and growing - or not - and understanding your investor type and individual retirement goals, is the only way to secure the retirement you want.
Asset allocation is a major factor in reaching your investment goals. Some options are more conservative and produce lower returns on investment. Other funds are more aggressive, can produce higher returns on investment and are more risky.
Diversification is key. It uses a mix of investments to help reduce risk exposure and shield you from drastic market fluctuations, all while investing strategically to reach retirement goals. Putting all of your investment eggs into one basket may not be appropriate for all investors. For example, a person early in his career may want to invest a small portion of his money in stable funds and the remainder in more aggressive funds.
TRF offers members several funds to choose from and daily valuation of investments. To learn more about investing and what type of investor you are, view the online demonstration at http://www.in.gov/inprs/online_demo/trf/player.html.
Past investment performance is not a guarantee or a reliable indicator of future results. Each investment fund is subject to specific principal investment risks. You may want to meet with an investment advisor to discuss your personal needs.
If you have questions, contact our customer service center at (888) 286-3544. We can be reached Monday through Friday from 8 a.m. to 8 p.m. EST.
