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Indiana Public Retirement System

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

You’ll learn about the opportunities and responsibilities of membership in the Public Employees’ Retirement Fund (PERF). This handbook explains the options available to you during your career in public service, and your benefits if and when you retire.

We urge you to read this handbook completely. You will need to understand the overall benefits of your PERF membership. Feel free to make photocopies of anything in this handbook. The best way to find the most current information is on this website.

Please register for your INPRS online account. When you register, you can update your address or select or change your beneficiary. You can also change your Annuity Savings Account (ASA) investment choices. You can access your account by going here. Once you register, a PASSCODE will be mailed to you. Or, you can also ask a customer service representative to email it to you. You can log in to your account with your User ID and passcode you created during registration.

PERF Administration [1]

Indiana PERF was founded in 1945. It is one of the largest pension funds in the U.S. – both public and private.

The fund works with more than 1,200 employers in Indiana serving approximately 210,000 active and inactive members, 80,000 benefit recipients, and their families. Fund benefits come from the contributions of public employers and members, and returns on the investment portfolio.

PERF is responsible for receiving contributions from employers and members, investing that money in a responsible manner, and paying benefits to qualifying members. Since 1996, state law allows PERF to invest the assets of the Consolidated Defined Benefit Assets (CDBA) in the stock market.

History

As of July 1, 2010, the Board of Trustees of the Indiana State Teachers’ Retirement Fund (TRF) and PERF was required to select and set the salary of a common director for TRF and PERF. Each fund must pay 50 percent of the director’s salary. Each fund must cooperate to the extent possible in managing and investing the assets of the funds. The funds also hire investment managers, investment advisors and other providers.

As of July 1, 2011, Indiana law established the Indiana Public Retirement System (INPRS). INPRS administers and manages the following funds:

  • TRF
  • PERF
  • Prosecuting Attorneys’ Retirement Fund
  • 1977 Police Officers’ and Firefighters’ Pension and Disability Fund
  • Legislators’ Retirement System
  • Judges’ Retirement System
  • State Excise Police, Gaming Agent, Gaming Control Officer and Conservation Enforcement Officers’ Retirement Plan.

INPRS also oversees three non-retirement funds including:

  • The Pension Relief Fund,
  • The Public Safety Officers’ Special Death Benefit Fund, and
  • The State Employees’ Death Benefit Fund.

Each of these funds will remain separate. The nine-member INPRS Board of Trustees will manage each fund.

Mission

Efficiently collect necessary contributions, manage assets and pay earned benefits.

Board of Trustees

Appointed by the governor, the board has the following:

  1. One trustee experienced in economics, finance or investments,
  2. One trustee experienced in executive management or benefits administration,
  3. The director of the Office of Management and Budget, or a designee,
  4. Two trustees nominated by the Speaker of the House of Representatives as follows:
    i. one trustee must be an active or retired member of the 1977 Fund,
    ii. one must be a TRF member with at least 10 years of creditable service,
  5. Two trustees must be nominated by the President Pro Tempore of the Senate as follows:
    i. one trustee must be a PERF member with at least 10 years of creditable service,
    ii. one must be a TRF member with at least 10 years of creditable service,
  6. The state’s auditor, or a designee,
  7. The state’s treasurer, or a designee.

An executive director carries out the policies set by the board and manages the fund on a daily basis. [2]

Important Terms

Annuity Savings Account (ASA) – this is your individual account. It is funded by 3 percent mandatory contributions. These contributions are paid either with payroll deductions or by your employer. Voluntary contributions, interest and earnings may also be added to this account.

Beneficiary – the person or institution chosen to receive all or part of your PERF benefits upon your death. Several types of beneficiaries are described in this handbook.

Contributions – funds paid to PERF by employers and/or you to fund future benefits.

Creditable Service – each period of continuous employment in a PERF-covered position. Creditable service is important in deciding your qualification for benefits.

Employer – a participating public organization that employs PERF members.

Mandatory Contributions – contributions to your ASA that must be made as required by state law.

Member – a public employee enrolled in PERF.

PERF-Covered Position – any qualified position for which an employer elects to cover and make contributions to PERF to fund pension benefits.

Pension Benefit – a lifetime monthly retirement benefit paid by PERF to a qualified member after retirement from PERF-covered employment. It may also be paid to your qualified survivor. This benefit is funded by PERF employers.

Public Employee – an employee of the state of Indiana, public schools, innovation schools and universities, and other state and government groups. Employees of private companies do not qualify for membership.

Survivor Beneficiary – the person receiving a percentage of your PERF benefits upon your death. Several types of survivor beneficiaries are described in this handbook.

Vesting/Vested – the minimum amount of time you must work in one or more covered positions to qualify for a retirement benefit.

Voluntary Contributions – you may choose to make additional contributions to your ASA through payroll deductions if your employer participates in the program.


[1] The laws and regulations ruling INPRS are found in Titles 5-10.2, 5-10.3, and 5-10.5 of the Indiana Code and Title 35 of the Indiana Administrative Code.

Section One: Two-Part Benefit Structure