When mapping out your retirement strategy, a defined benefit (DB) or pension can be a great advantage.

First, it’s essential to understand when you may be eligible for a pension and how much you might receive in retirement, so you can plan how to cover expenses and budget retirement income.

The DB, or pension, is a guaranteed monthly benefit for vested, qualified retirees.

1977 Police Officers and Firefighters

For a full, unreduced pension benefit, you must be:

• Age 52 with at least 20 years of service credit in the 1977 Fund.

Retirements after 06/30/2019: pension benefit is 52% of the first-class  salary for your department. You will receive another 1% of that salary for each 6 months of active service over 20 years. The most you can receive is 12 years after 20, making the maximum annual benefit 76% of the annual salary at the time of your separation from service.

For early retirement with a reduced benefit:

• Age 50 with at least 20 years of service credit in the 1977 Fund.

Your pension benefit is reduced for each month of benefit payments prior to age 52. The reduced percentage rate is actuarially calculated & approved by the INPRS Board of Trustees. Currently, the rate is 6% per year.

The 1977 Fund has a mandatory retirement age of 70.

You can visit our Online Calculators page to enter in your data to see an estimate of what you may receive in retirement here, or you can log into your secure account at myINPRSretirement.org.

Judges’ Retirement System

For a full pension benefit, you must be:

• At least age 65 with 8 years of service as a judge; or
• At least age 55 and your age plus years of service equals at least 85 (Rule of 85).

For early retirement with a reduced benefit:

• You must be between the ages of 62 and 65; and
• Have at least 8 years of service as a judge.

If you are currently receiving or are entitled to receive any pay from the State for services performed as a judge or a magistrate under IC 33-23-5 (as defined in IC 33-38-6-7), you do not qualify for retirement. Your benefit may not begin more than 30 days before INPRS receives the retirement application.

Excise, Gaming and Conservation Officers

For or a full pension benefit, you must be:

• At least age 50 with 25 years of service; or
• At least age 55 and your age plus years of service equals at least 85 (Rule of 85); or
• Age 60 to 65 with 15 years of service AND enrolled before age 50; or
• 60 to 65 with 10 years of service AND enrolled age 50 or older.

For early retirement with a reduced benefit:

• You must be at least age 45 and
• Have at least 15 years of service.

The EG&C Plan has a mandatory retirement age of 65 unless the member becomes an officer after age 50. In that case, the mandatory retirement date is the earlier of:

• First day of the month following the member’s 65th birthday; or
• First day of the month following the completion of 15 years of service, if service credit is purchased.

Prosecuting Attorneys

For a full, unreduced pension benefit, you must be:

• At least age 65 with 8 years of service if you served on or after July 1, 2006; or
• At least age 55 and your age plus years of service equals at least 85 (Rule of 85); or
• At least 65 years of age and have at least 10 years of creditable service if you terminated service before July 1, 2006, and did not serve on or after July 1, 2006; or
• Permanently disabled.

For early retirement with a reduced benefit:

• You must be between the ages of 62 and 65; and
• Have at least 8 years of service.
• Having met these requirements, you are entitled to receive a reduced annual retirement benefit that equals the benefit that would be payable if you were age 65, reduced by 0.25% for each month that your age at retirement precedes your 65th birthday.
• If you are receiving a monthly retirement pension benefit from PERF Hybrid, that benefit payment will be used to determine the amount payable to you from PARF.
• OFFSET: If you are eligible for a monthly retirement benefit from PERF Hybrid but are not yet receiving it, the amount payable to you from PERF Hybrid will be calculated to determine the amount payable to you from PARF. You will need to submit a separate retirement application to begin receiving your PERF Hybrid pension benefit.

Legislators Defined Benefit Plan

For a full pension benefit, you must be:

• At least age 65 with 10 years of service; or
• At least age 60 with 15 years of service; or
• At least age 55 and your age plus years of service equals at least 85 (Rule of 85).

Members who meet one of the conditions above must have:

1. Ended service in the General Assembly; and
2. Earned at least 10 years of service as a member of the General Assembly; and
3. You are not receiving, nor entitled to receive, pay from the State for work in any capacity.

Your pension benefit will be reduced using a formula based on your age.

For Legislators, your retirement date cannot be more than 6 months before the date your application is received by the INPRS Board of Trustees. By law, INPRS can only pay up to six months of retroactive benefits.

You can read more on retirement and disability benefits eligibility by visiting our Plan Fact Sheets here.

Now that you know what a pension benefit is, who qualifies, when you are eligible, and how to calculate your monthly benefit, it’s time to understand why it is important for your retirement strategy.

As a guaranteed monthly benefit, a pension can cover any expenses during retirement. From groceries to health care, leisure activities to household expenses, your pension benefit is yours to do with, with no limitations.

Another advantage of receiving benefits through INPRS is that they won’t be reduced once you begin receiving social security benefits. INPRS does not work in conjunction with the Social Security Administration.

Knowing more about your pension benefits, how to earn them, and what you can do with them will help you better manage your finances and set a goal to work toward before entering retirement.