Guaranteed Fund rate is now 0.28 percent
Members who invest Annuity Savings Account (ASA) funds in the Guaranteed Fund now earn an annual return of 0.28 percent. The rate is set annually by the INPRS Board of Trustees.
The Guaranteed Fund is one of eight options in a lineup of investment funds that provide members greater control in saving for their retirement futures. Are all of your investments in the Guaranteed Fund or are they diversified among several funds? To make an informed decision, you may want to review TRF's investment fund fact sheets.
You can also review the
TRF Interactive demo to learn more about how to prepare for retirement.
Log in to your
TRF Interactive account to review your investment elections now. Make changes as needed on a daily basis.
ASA investing: you've got choices
Q. How often can I change my investment elections and how is it done?
A. Changing the investment elections for your Annuity Savings Account (ASA) can be done in one of two ways.
- Call our Customer Service Center at (888) 286-3544, Monday through Friday, 8 a.m. to 8 p.m. EST, and make the change over the phone. To protect your personal information, we will verify your identity.
- Log in to your secure, online TRF Interactive account. Here, you can manually update your investment elections. To log in, visit www.inprs.in.gov.
More info is available here.
Investments: how risky are 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.
How risky are you? Find out with our
risk quiz.
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.
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.
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.
Where can you afford to live 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.
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!
Farewell to paper
Quarterly member statements are now electronic. Members can view statements for the quarter ending Sept. 30, 2012 on TRF Interactive. Any member still wishing to receive a mailed statement each quarter is able to do so.
By mailing statements only to those who want paper, INPRS can save approximately 4,800 reams of paper each year. This is the rough equivalent of 288 trees. In addition, this could reduce expenses by up to $1 million.
Statements have been available to members in electronic format and on a rolling quarterly basis since 2005.
Log on 24/7 to review.
Members who prefer a paper statement should
log in to their account, select the
Personal Information tab, Communications, E-mail Address, then Communication Preferences.
Avoid penalties and claim your Required Minimum Distribution
A Required Minimum Distribution (RMD) is the minimum amount that a retirement plan account owner must withdraw annually. This must be done when you reach 70 ½ years of age if you are no longer working in a covered position, or, by April 1 following the year in which you retire, whichever is later.
The Internal Revenue Service (IRS) imposes a 50 percent penalty on late distributions.
Complete the
TRF Retirement Application if:
- You have at least 10 years of creditable service and are no longer working in a covered position, you have not begun your retirement benefit and you will be age 70 ½ by Dec. 31.
Request a distribution if:
- You have less than 10 years of creditable service and are no longer working in a covered position, or with a PERF or TRF-sponsored employer, and otherwise not eligible to receive a pension, or if
- You deferred receipt of your Annuity Savings Account (ASA) at retirement and will be age 70 ½ by Dec. 31, or if
- Your deceased spouse would have been age 70 ½ by Dec. 31, and did not take a distribution from his or her ASA and you are the beneficiary.
To initiate a request for distribution:
- Go to www.inprs.in.gov, click on "Member Login" and log in to your TRF Interactive account,
- Click on "Actions" and "Request a Final Distribution" to have a package mailed to you.
You may also call (888) 286-3544 to request a distribution via phone with a customer service representative.
The RMD process for TRF is identical to PERF. Additional details are available online at
http://www.in.gov/inprs/rmdinformation.htm.
If you have questions, contact our Customer Service Center at the number above, or e-mail us at
questions@inprs.in.gov.
