As you transition from summer fun to the rhythm of the school year, remember that taking time now to understand your retirement options will pay off.

Just as you wouldn’t walk into your classroom without a daily schedule, you shouldn’t dive into your teaching career without understanding your retirement options.

When you’re a new teacher, lesson plans may seem more pressing than retirement plans. However, deciding between TRF Hybrid and TRF My Choice within the first 60 days of employment is mandatory and permanent, even if you temporarily leave a position covered by either plan. Prepare to make the right decision by checking these things off your list this summer:

Consider the difference between Defined Benefit (DB) and Defined Contribution (DC).

A DB is a monthly pension benefit payment guaranteed for vested, qualified retirees for the rest of their lives. A DC is a retirement savings plan with contributions from the employer, employee, or both.

Understand that the TRF Hybrid plan has a DB and DC, and the TRF My Choice plan is DC-only with an additional employer contribution.

Although the Hybrid and My Choice plans have a DC, the contribution details differ for each. Both plans have a voluntary contribution option, if your employer allows. You may contribute up to 10% of your compensation, all post-tax. Both plans offer a range of DC distribution options upon separation from employment, such as a lump sum, direct rollover to another account, systematic withdrawal, or a monthly annuity.

TRF Hybrid DC

State law requires 3% of your gross wages to be contributed to the plan. These contributions can be paid by you, your employer, or both.

Employers are given the option of paying your mandatory 3% contributions (pre-tax) as part of a wage adjustment, but not all employers choose to do so.

• If you work for the State, a quasi-governmental agency, or a university, the 3% is paid by your employer on your behalf before taxes are calculated on wages.
• For all others, the 3% is deducted through payroll deduction, or your employer may pay all or part of this mandatory 3% contribution. The governing body of the employer makes this decision and may change it at any time.

TRF My Choice DC

State law requires 3% of your gross wages to be contributed to the plan. If you work for a school corporation, your employer pays the 3% contribution.

In addition to the fixed 3% contribution, employer contributions are placed in an employer contribution subaccount, which receives an annual variable rate determined by the INPRS Board of Trustees. You can find this rate, which is currently 6.5% as of Jan. 1 through Dec. 31, 2025, here. This additional portion is available according to the TRF My Choice vesting schedule below.

Know when you can keep your employer’s contributions.

You are immediately 100% vested in your contributions, but you must work for a certain number of years to keep your employer’s contributions.

TRF Hybrid

At least 10 years of service is required to be fully vested and eligible for a pension in the DB component. Participants are immediately vested in the DC component.

TRF My Choice

At least five years of service is required to be fully vested in the employer contributions. Employees are 20% vested with one year, 40% vested with two years, 60% vested with three years, 80% vested with four years, and 100% vested with five years.

Reflect on how the plan you choose impacts your countdown to retirement.

TRF Hybrid

The TRF Hybrid plan follows the rule of 85. Your age (minimum age of 55) and number of years participating in your plan must equal at least 85, meaning you can retire at age 55 with 30 years of service. Aside from the rule of 85, you can retire at age 65 with 10 years of service or age 60 with 15 years of service. With 15 years of service, you can retire early with reduced benefits between the ages of 50 and 59. If you leave your INPRS-covered position and meet the age and service requirements, you may draw from your pension while working elsewhere.

TRF My Choice

You can retire at age 62 in the TRF My Choice plan if you have at least five years of participation and are separated from your INPRS-covered position. This is also the minimum age to receive Social Security (SS) benefits. However, claiming SS benefits before the full retirement age (67 for people born after 1960) reduces monthly benefits. Medicare coverage begins at age 65, so healthcare is something to consider in your budget if you plan to retire before 65.

Choosing your retirement plan will impact your future long after your first group of students graduates. You may want to consult your financial and/or tax advisor about the impact of selecting one plan over another. While INPRS consultants can explain the differences between the two plans, they cannot recommend which plan to choose.

For more resources, see our At-a-Glance sheets below, which offer one-page summaries of each plan.

TRF Hybrid Plan at a Glance

TRF My Choice Plan at a Glance