My Choice: Retirement Savings Plan Member Handbook for State Employees: Your My Choice Benefits

This section explains how your plan benefits are calculated. It also covers some of the issues you may face when you apply for retirement which include:

  • the benefits available to you,
  • annuitization,
  • the selection of the payment options, and
  • working after retirement.

Other issues that are related to being a retired member are covered in the After Retirement section.

Go here for more on retirement.

Beneficiary or Survivor Benefits

Your account will be paid to the listed beneficiaries under the following conditions:

  • you die while in service, but not in the line of duty,
  • you die in the line of duty, while in service, or
  • you have ended employment but you have not withdrawn your account balance.

Go here for more on Beneficiary or Survivor Benefits.

Disability Benefits

If you become disabled, you can withdraw from your My Choice: Retirement Savings Plan account, amounts you are vested in.

If you become disabled, you're eligible to withdraw your vested portion of your account, if:

  • Social Security has determined you to be disabled, and you are receiving salary* or employer-provided income protection benefits. You are on leave under the FMLA, or off on workers’ compensation, as of the onset date established by the Social Security Administration (SSA).
  • Your disability onset date set by SSA MUST come before you end service with your employer. Please contact INPRS if you have any questions about establishing eligibility for disability benefits.

Go here for more on disability benefits.

Vested Status/Credit for Years of Participation

Full vesting is based on your years of participation. You are always 100 percent vested in the fixed 3 percent portion and any rollover contributions you make. However, vesting in the value of the employer share (variable) contributions varies by how long you have been in the plan.

Again, the vesting schedule is as follows:

  • One year of participation = 20 percent
  • Two years of participation = 40 percent
  • Three years of participation = 60 percent
  • Four years of participation = 80 percent
  • Five years of participation = 100 percent

Only full years of participation count toward vesting in the employer contributions. For example, if you work four years and 10 months you would receive 80 percent of the employer share (variable) portion. One hundred percent vesting happens when:

  • you have five full years of participation,
  • you end service for normal retirement (age 62 + five years of service), or
  • a member dies in the line of duty.

You may change employers and jobs and still reach vested status. You must work a total of five years in any combination of My Choice-covered employment. Your employer must make contributions to the account in order to qualify for vesting.

You become 100 percent vested in the employer share (variable) contributions and earnings of the My Choice: Retirement Savings Plan after five full years of participation.

You may be entitled to receive credit during military service and certain types of leave.

Section Three: Receiving Benefits Before Retiring