What you should know about vesting

You’ve probably heard the phrase “vested status” whispered around your department’s hallways, mentioned on your quarterly member statement, or discussed during an INPRS virtual workshop, but what exactly does it mean?

Not quite sure what vesting is, how to get there, or why this could be a key part of your retirement strategy? Well, INPRS’s team of Retirement Services Consultants is happy to help you understand why earning your vested status may be an essential piece in shaping your retirement plan and better yet your financial future.

[Put simply, vesting is the minimum amount of time you must work in one or more covered positions to qualify for a benefit from a retirement fund.]

PERF and TRF Hybrid

Public service workers and educators enrolled in the PERF or TRF-Hybrid Fund, respectively, may be fully vested for a pension benefit after 10 years of service. Some elected officials may be fully vested after eight years of service. Once vested, you are entitled to benefits once you meet the age and service requirements for either early or regular retirement. You are entitled to full retirement benefits when you are:

• Age 65 with 10 years of creditable and/or eligibility service.
• Age 60 with 15 years of creditable and/or eligibility service.
• At least age 55 and the sum of the member's age at retirement and their total years of creditable and eligibility service under PERF equal 85 or more (Rule of 85).

You do not have to work for the same employer, and the jobs do not have to be for 10 consecutive years to reach vested status. Members between ages 50–59½ with 15 years of service may be able to retire early but for a reduced benefit amount. To see if you are eligible, review the “Early Retirement with a Reduced Retirement Benefit” section in your Fund’s handbook.

PERF and TRF My Choice

For members of the PERF or TRF My Choice: Retirement Savings Plan, vesting in the value of variable rate contributions varies by length of participation. PERF My Choice and TRF My Choice members must be at least 62 years of age and have five years of creditable service to retire.

Below is the vesting schedule for variable rate contributions:

• 20% vested after one full year of participation,
• 40% vested after two full years of participation,
• 60% vested after three full years of participation,
• 80% vested after four full years of participation, and
• 100% vested after five full years of participation.

*Under the My Choice plan, you will not receive credit for partial years of service.

Active PERF-or-TRF My Choice plan members can access any of the funds they are 100% vested in once they leave service or meet SEA 10 guidelines for in-service distributions. Unvested employer contributions will remain in active members’ accounts.

If you are nearing retirement eligibility, are ready to retire, or want more information regarding your options and the retirement process, register for an INPRS virtual workshop, or meet with one of our Retirement Services Consultants.

Check your progress toward vesting on your Annual Member Statement, available on your secure online account at www.myINPRSretirement.org. Learn to calculate your retirement benefit and date using INPRS's interactive benefit estimate calculators by visiting www.myINPRSretirement.org/calculators.

View your member handbook here to learn more about vesting for your specific plan. To check your earned years of service credit or verify your vested status, please contact our Member Advocate Team at (844) GO-INPRS or (844-464-6777) or email us at questions@inprs.in.gov.