Is your retirement piggy getting hungry?
It's a new year and you're overdue to make some financial changes. Money is hard to come by, but you realize the importance of personally saving for your future.
You may know that generating earnings from previous earnings, known as compounding, can be beneficial over time. Perhaps you've even experimented with a compound interest calculator to get an idea of how your savings can grow. The longer you save, the more compound interest works for you.
You've thought about how much you'd like to invest, but you may want to speak with a financial adviser to discuss what savings options are best suited for you based on your retirement goals.
More information on compounding is available at
http://www.choosetosave.org/brochures/pdf/ncompnd.pdf. Or, go
here to use a compound interest calculator.
DB versus ASA. What's the difference?
Did you know there are two parts to your TRF plan, with most of the funding provided by your employer?
Defined Benefit
Known as the Defined Benefit (DB) or pension, you qualify for a monthly benefit for life when you meet the age and service requirements, separate from your employer and apply for retirement benefits.
You must be vested (have 10 years of creditable service*) to be eligible for a pension. Creditable service is each period of continuous employment in a covered position. This may include TRF-covered positions, Public Employees' Retirement Fund service and military service.
Annuity Savings Account
Your Annuity Savings Account (ASA) is in addition to your pension. A mandatory 3 percent contribution made by you, your employer or a combination of both fund this benefit.
There are no age or service requirements for the ASA.
These funds are meant to be used for retirement, but can be withdrawn after leaving TRF-covered employment. However, there could be IRS early withdrawal tax consequences for ASA withdrawals prior to age 59 ½. In order to remain vested, you must not perform service in a TRF-covered position for at least 30 days after terminating employment and before you withdraw your ASA.
More information about your two-part retirement benefit plan is available at www.inprs.in.gov. You can also call TRF toll-free at (888) 286-3544 or e-mail us at questions@inprs.in.gov.
Download a PDF copy of the
TRF at a Glance for an overview of TRF's plan provisions.
* Some exceptions may apply. See the TRF Member Handbook for more information.
Are you guilty of wasteful spending?
Losing weight may help you gain retirement savings. How?
You're a drive-thru regular at your favorite coffee shop, and you dine out for lunch four out of five days a week. Have you done the math?
The amount you're spending on satisfying your daily cravings can be set aside for something more lasting — your personal retirement savings. And if you consider spending less on dining out, you may be able to shed a few pounds in the process.
It's likely that you can buy your favorite coffee blend from your local grocery store, and bring leftovers from last night's dinner for lunch. Basically, do it yourself and save money.
Consider meeting with your financial adviser to discuss your retirement options based on your goals.
Go online for your electronic quarterly member statement
Quarterly member statements are now electronic. Members can view statements for the quarter ending Dec. 31, 2012 on TRF Interactive.
Log on 24/7 to review.
Interested in member advisory groups?
INPRS has launched new member advisory groups to learn how we can better serve you. To kick this off, we'd like your perspective on some of the meeting specifics. If you're interested, click
here for a brief survey.
Access the CAFR
Click
here to download the 2012 INPRS Comprehensive Annual Financial Report (CAFR).
Investment manager change
On March 1, 2013, the Indiana Public Retirement System (INPRS) will replace State Street Global Advisors ("SSgA") with Northern Trust as one of the three investment managers that comprise the Fixed Income Fund option. This applies only to the Teachers' Retirement Fund (TRF) Annuity Savings Account (ASA).
