Whether you’re moving to a new opportunity, changing industries, or taking time to explore what’s next, leaving your current position marks an important milestone. Along with the excitement of new possibilities comes a crucial question: What happens to the retirement funds you’ve been building?

The money you’ve contributed and earned in your retirement account doesn’t just disappear when you leave. Your funds can continue working for you in several ways, depending on your plan and how long you’ve been in an INPRS-covered position.

Think of this transition as an opportunity to take control of your retirement strategy. You may discover you’re fully vested and can move your funds elsewhere. Perhaps keeping your funds with us while you settle into a new role makes the most sense. Or you may find that rolling your account into an IRA opens investment options you haven’t had before. Let’s walk through what your departure means for your retirement account so that you can move forward with confidence and clarity.

Regardless of your plan type, ensure your contact information is updated if you move or change your email address.

Log in to your account at myINPRSretirement.org, select “Personal Information” from the top right menu under your name to update your mailing address or “Communication Preferences” to update your email address. If you need to update your beneficiaries for your Defined Contribution (DC), you can do so in the “Personal Information” section.

How long you’ve been in your INPRS-covered position determines if you’re fully vested.

Check out your plan’s specific vesting schedule to know if your years of service make you eligible for full benefits when you retire.

Hybrid

If you’re thinking of leaving employment or retiring and have between nine and 11 years of service credit, you may wish to check with INPRS to verify your actual vested status.

Vested PERF/TRF Hybrid plan members have at least 10 years of covered service, and some elected officials have eight-year vesting.¹

My Choice

You’re always 100% vested in the fixed 3% mandatory member contributions and any optional contributions you may have rolled into your My Choice plan.

For your employer’s contributions, you’re 20% vested with one year of participation, 40% vested with two years, 60% vested with three years, 80% vested with four years, and 100% vested with five years.

LE DC

You’re immediately vested for both member and employer contributions.

Know when you can start using your retirement savings.

Another thing to explore is your plan’s timeline for retirement distribution.

Hybrid

You can apply for full PERF/TRF retirement benefits if you have at least 10 years of service and are at least age 65 or at least age 60 with 15 years of participation. You may also apply for full benefits if you meet the Rule of 85, which requires that a member be at least 55 years old and their age and years of service total 85. If you have 15 years of service and are age 50 through 59, you are eligible for a reduced benefit amount. The amount of the reduction is a percentage of the full amount based on your age and years of service at retirement. See the PERF/TRF Hybrid Plan Member Handbook for more details.

My Choice

The normal retirement age for the My Choice plan is at least 62. With the My Choice plan, you can separate from employment and take a distribution at any age, but you must be at least 62 years of age and fully vested to purchase an annuity. You can also take in-service distributions if you’re at least 62 years of age and fully vested. There is no additional vesting if the vested funds are left in the My Choice Plan at separation from employment. The funds will remain invested according to your investment elections, and you will be charged an account maintenance fee. Once you reach the Required Minimum Distribution (RMD) age set by the IRS, you must take a distribution if you have not separated from employment. See the PERF/TRF My Choice Plan Member Handbook (State of Indiana or Local Government) for more details.

LE DC

Your LE DC account balance may be withdrawn after separation from the General Assembly. As of January 1, 2021, active members of LE DC are permitted to take in-service distributions of their defined contribution accounts if they meet specific requirements. LE DC members must be at least age 59 ½ to qualify. If you are a member of the General Assembly with service credit before November 8, 1989, in the LE DB Plan, you do not forfeit the right to a retirement benefit from the LE DB Plan by taking a distribution from your DC. See the LE DC Plan Member Handbook for more details.

Know your options for the funds in your DC account.

• You can leave the funds in your DC account invested with INPRS until you retire. INPRS will send quarterly statements with your DC investment details, which is another important reason to keep your contact information updated at myINPRSretirement.org.
• You can roll over the funds in your DC to a qualified retirement account, if offered by a new employer, or an IRA. You can choose either a direct rollover of all or part of the taxable portion of your DC, or a direct rollover of all or part of the non-taxable portion of your DC. You should contact the IRA sponsor or the administrator of the plan you wish to roll the money into for information.
• PERF and TRF Hybrid members who are separated from their covered position for at least 30 days and are at least 59½ years of age and service eligible for normal retirement may request a lump sum distribution of their DC. PERF and TRF My Choice members can request a lump sum distribution if they have been separated from employment for 30 days or are age 62 with five years of service. Withdrawing your DC balance before age 59½ can subject you to a 10% federal tax penalty and income taxes. LE DC members can withdraw their balance at any time following separation of employment with the General Assembly.

Hybrid members, see these documents for more information:

Leaving PERF/TRF Hybrid Plan-Covered Employment

PERF/TRF Hybrid Plan Five-year Inactive Member Accounts

¹By law, county officials named in the Indiana Constitution and limited by law to two four-year terms in office will vest when the second term in office ends and will be eligible for retirement at age 65. This also applies to state officials including the State Auditor, State Treasurer, and Secretary of State.