A distribution from your defined contribution (DC) account doesn’t have to end there. Your savings can fuel guaranteed income for life as an annuity.

The risk of running out of money in retirement can be a real concern, and it can be difficult to predict exactly how much you’ll need.

With an annuity, you’re purchasing a fixed stream of lifetime income. Using all or a portion of your DC account, you decide what type of annuity works for your situation and from what provider. Through INPRS, you can purchase an annuity from MetLife when you complete your retirement application. Your status as an INPRS member gives you access to discounted rates typically inaccessible in the retail market.

If you’re worried about running out of money in retirement, an annuity is an option for your DC account worth your consideration. Your annuity is guaranteed regardless of how long you live or what happens in the market. While MetLife is the only annuity provider offered by INPRS, you may annuitize with any provider of your choice. Remember, you must be at least at a normal retirement age and eligible to begin your retirement benefit as defined in your INPRS plan.

The minimum amount you can use to purchase a MetLife annuity is $5,000. If you rollover a portion of your DC, you must choose what to do with the remaining balance. You can:

• Move it to another qualified retirement plan
• Receive a lump sum payment
• Leave it invested until later (or until it’s time to take required minimum distributions)

Once you purchase an annuity with your DC account, INPRS cannot reverse your selection. Please see your plan’s handbook for more details.

Purchasing an annuity is a choice and is not required. Be aware of fees and compare all DC distribution options. Please contact your financial advisor to discuss whether an annuity would be right for you.

To generate a quote for how much your annuity payments could be based on the funds in your DC, visit the MetLife Annuity Calculator on our Online Calculators page.

For PERF and TRF Hybrid members, another way to increase your retirement income is to purchase service credit, increasing your defined benefit amount. Find more information about purchasing service credit beginning on p. 19 of the PERF Hybrid Plan Member Handbook or the TRF Hybrid Plan Member Handbook.

This is article two of our four-part DC distribution series. To learn more about the lump sum option, visit our article here. Check back later for more information about rollovers and what to expect if you leave your DC invested with INPRS.