Header

  Close Menu

Main Content

Employer Update: December 2019



The INPRS Board of Trustees approved new rates for several of INPRS’s plans during the Oct. 25, 2019 board meeting.

Total Employer DB Contribution Rates

 

Plan Name

Rate

Fiscal Year 2021

PERF – State

11.20%

Fiscal Year 2021

TRF ’96 - DB

5.5%

Calendar Year 2021

PERF – PSD Composite Rate

11.20%

Calendar Year 2021

’77 Fund

17.5%

Calendar Year 2021

EG&C

20.75%

No changes from prior employer rates, pursuant to INPRS Funding Policy.

DB Surcharge Rates for PERF, TRF ’96, and EG&C

Fund

Calendar 2020 Surcharge Rates

Fiscal 2020 Lottery Revenue Allocation

PERF

0.44%

TRF Pre-‘96

N/A

$30,000,000

TRF ‘96

0.14%

EG&C

0.61%

LE DB

N/A

PERF Surcharge increased 0.01 percent from the prior rate. EG&C Surcharge decreased 0.12 percent. All other rates are unchanged from the prior rates.

The surcharge rate is the percent of payroll set aside now to fund the future COLAs and 13th checks for PERF, TRF (pre and post-96), LE DB, and EG&C.

Legislators’ Defined Contribution Fund Contribution Rates

Statute states the Board shall use the following rates in determining the LE DC crediting rate:

  • The rate at which the State makes contributions to fund the pension portion of a PERF member’s retirement benefit
  • The rate at which the State makes contributions to the Defined Contribution Accounts on behalf of State employees who are members of PERF

 

LE DC Plan Rate Effective 1/01/2021

LE DC Plan Rate Effective 1/01/2020

State Contribution Rate

11.2%

11.2%

Defined Contribution Rate

3.0%

3.0%

LE DB Plan Rate

14.2%

14.2%

Employer Rates for PERF My Choice, TRF ’96 Funds

On Oct. 25, the INPRS Board approved new rates for the PERF My Choice Retirement Savings Plans and the TRF ’96 Fund. The new rates will go into effect in fiscal year 2021 for the PERF My Choice Plan for State Employees and the TRF ’96 Fund. The new rates for the PERF My Choice Plan for Local Government Employees will go into effect for calendar year 2021.

 

PERF My Choice: Retirement Savings Plan for State Employees (FY 2021)

PERF My Choice: Retirement Savings Plan for Local Government Employees (CY 2021)

My Choice: Retirement Savings Plan for Teachers (CY 2021)

 

Prior

New

Prior

New

Prior

New

Total Normal Cost

3.0%

3.2%

0.0%-3.8%

0.0%-4.0%

5.3%

5.3%

Total ER Contribution Rate

11.2%

11.2%

11.2%

11.2%

<5.5%

5.5%

UAAL Contribution Rate

8.2%

8.0%

7.4%

7.2%

0.2%

0.2%

Normal cost represents the current year’s cost of defined benefit growth due to new service and pay being factored into the benefit calculation. An additional 3 percent member contribution is required. The state pays the member’s contribution on behalf of the member, while political subdivisions elect whether or not to pay the contribution on behalf of the member. Normal cost in the table above represent the portion of the employer contribution being credited to the member’s account. All contributions are based on a percentage of the employees’ salary.

Payroll dates due in ERM by the end of the year

One of your most important tasks at the end of this year is to ensure your payroll dates are correct in ERM. You must have correct payroll dates in ERM for you to transact with INPRS in 2020. Please make the time to accomplish this task before the end of 2019. If you need help updating your payroll dates, please contact EPPA.

Equip your employees with the tools they need to develop their 2020 spending plans

In January, we’ll be sending members an article focused on creating their 2020 spending plans. INPRS would like to encourage you to share this article through your employee communications channels and be sure to let them know that INPRS also offers a budgeting workshop, available in-person or online. Register for either at www.bit.ly/RBWcalendar.

Create your 2020 spending plan

Get your 2020 spending plan ready with help from INPRS. This adjusted way of thinking can help you focus on your goals – both financial and aspirational – to create a plan that will take care of both your wants and your needs.

To get started:

  • Review your 2019 expenses
  • Project your 2020 income
  • Write down your top five financial goals for the year. Such as:
    • Family vacation
    • Home improvement
    • Increased savings/investing

Once you’ve identified how much money you have to work with, your obligations, and your goals, it’s just a matter of plotting out the numbers, so they work for you. Create your spending plan using Excel, graph paper or download INPRS’s budgeting worksheet, available at bit.ly/INPRSbudgetingworksheet. You can also check out the resources available at www.myINPRSretirement.org. When you log in, select “Financial Wellness” from the top navigation and select “Spending and Saving.”

If you’d like more information, attend our next budgeting workshop or lunch and learn. View dates and register at bit.ly/RBWcalendar.

Is your missing member list gone yet?

Take advantage of the quiet office this December and make progress on your missing member list. Time is ticking, and every day your team isn’t working on their missing member backlog, the closer you are to losing access to reporting wages and contributions for all of your employees.

Since last month, we’ve seen nearly a 60 percent decrease in missing members from all employers!

This is great progress and we want to thank all of you for your hard work so far. One employer had 170 missing members at the beginning of November and now has zero.

Thank you for making cleaning up your missing member list a priority, especially during the end-of-the-year rush.

Coming in January:

  • Personal calls from INPRS – we’ll be reaching out to you in January if you still have missing members. We will expect that your team will be able to share with us your progress and any challenges INPRS can help you overcome.
  • 2019 Missing Member data – We’ll have a final count on the progress that you and other employers made in 2019 on their missing member lists.
  • A final date – In January, we’ll share the exact date we’ll be enforcing ERM limitations.

Get ready for the 2020 Census

The 2020 Census will begin April 1 and will offer the option of paper, phone, and online participation. All households should respond by May 2020. Remember, your participation is important!

Help a new state agency tell Indiana’s story with your feedback

Our colleagues at the Indiana Destination Development Corporation are conducting a survey to help determine a new approach to brand & promote Indiana, which ultimately will attract businesses, talent, students, & visitors to our state.

Share your insight and help shape the way Indiana tells its story! Visit https://instakeholder.questionpro.com/ to get started.

Reminders!

Heading out on your holiday vacation soon? Before you go, be sure to submit your payroll to INPRS. Staying on schedule will reduce your pre-vacation stress and eliminates a to-do item for your first day back in the office.

It’s very important to keep us up-to-date whenever an employee leaves their position. You can easily report any separations from employment by updating the employee’s last day in pay and last check date in ERM.

Do you have former colleagues still listed as “Active” in ERM? Because we want to make sure the right people hear from us, make sure to remove old contacts from ERM. Need help? Contact us!

News and FAQs

INPRS Events

Click here to view more events

Top FAQs