When you start a new job, losing sight of the future can be easy. Your days are full of meeting new coworkers, learning acronyms and terminology, diving into unfamiliar processes and trying not to get lost on your way to the breakroom.

If you aced finding your way around your new workplace but feel lost when choosing between the Public Employees’ Retirement Fund (PERF) Hybrid plan, the Teachers’ Retirement Fund (TRF) Hybrid plan and the My Choice plan by the 60-day deadline, help is on the way. The three things below can make this important, permanent choice easier. ¹

1. How long you plan to stay in your new job matters

Do you see yourself working for the same employer for at least five years? How about 10? Although you cannot know exactly what life will surprise you with, thinking about the next steps is important when planning your future. To qualify for a retirement benefit, there is a minimum amount of time you must work in a covered position, which is the vesting period. The vesting timeline is critical because you may lose some of your employer’s contributions if you leave your job before being 100% vested.

The My Choice plan’s vesting percentage for the variable rate contribution increases with years of participation. 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. Like the Hybrid plan, participants in the My Choice plan are immediately vested in their share of the contribution at a fixed rate of 3% of their gross salary.

At least 10 years of service in a PERF and TRF-covered position is required to be fully vested and eligible for a pension in the defined benefit (DB) component of the PERF and TRF Hybrid plan. Participants are immediately vested in the DC component of the Hybrid plan.

2. Set goals now for when you would like to retire

If you want to retire at age 55, the 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 50-59. If you leave your INPRS-covered position and meet the age and service requirements for the PERF Hybrid plan or TRF Hybrid plan, you may draw from your pension while working elsewhere.

You can retire at age 62 in the 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 factoring into your budget if you plan to retire before 65.

3. Expect the unexpected

Retiring at ages 55 or 62 might sound good now, but what if you want to keep working? Some people delay retirement because they are satisfied with their jobs. Some want or need to keep earning and saving. Unexpected life circumstances can be seen as stops along our journey to retirement. Think of insufficient savings as a longer layover or sudden debt as a flat tire.

A feature of the Hybrid plan is the Millie Morgan option. This allows active employees aged 65 or older with 20 or more years of service to collect their pension while working in their INPRS-covered position. No, it is not too good to be true. Yes, it can help if you decide to work longer than planned.

When choosing an INPRS plan, consider future goals and commitments. Discussing your unique needs with family and/or a financial advisor can help you make the best decision. There are plenty of INPRS resources to review during this time. Check out the At a Glance sheets, a quiz and a website for new public employees. INPRS also offers workshops and counseling.

¹If your employer offers the Hybrid and My Choice plans, your choice is permanent and cannot be changed, even if you temporarily leave a position covered by either plan. The only exception is if you are switching jobs and did not have the My Choice option at your initial time of hire when you were employed in a PERF-covered position with the State of Indiana (not applicable to TRF).

If you do not select a plan within 60 days of your hire date, you will be placed in the employer’s elected default plan. Therefore, it is essential not to assume that your PERF Hybrid plan will remain if you switch employers (not applicable to TRF).