The INPRS Board of Trustees approved new rates for several of INPRS’s plans during the Oct. 30, 2020 board meeting.
Total Employer DB Contribution Rates Effective January 1, 2022 (Calendar Year 2022)
| Effective January 1 | |
2021 | 2022 (new) | |
PERF DB Political Subdivisions | 11.20% | 11.20% |
’77 Fund | 17.50% | 17.50% |
EG&C | 20.75% | 20.75% |
LE DC | 14.20% | 14.20% |
There were no changes to these total contribution rates from the prior valuation.
Total Contribution Rates Effective July 1, 2021 (Fiscal Year 2022)
| Effective July 1 | |
2020 | 2021 (new) | |
PERF DB State | 11.20% | 11.20% |
TRF ’96 DB | 5.50% | 5.50% |
There were no changes to these total contribution rates from the prior valuation.
My Choice Funds
In addition, the INPRS Board approved the following rates for the My Choice funds:
| PERF State (FY 2022) | PERF Political Subdivisions (CY 2022) | TRF ’96 (FY 2022) |
Member Contribution | 3.0% | 3.0% | 3.0% |
Employer Contribution Credited to Member’s Account | 3.2% | 0.0% - 3.9% | 5.3% |
Employer Contribution Credited to Unfunded Actuarial Accrued Liability | 8.0% | 7.3% | 0.2% |
The employer contribution credited to the member’s account is equal to the normal cost of the relevant defined benefit plan liabilities, rounded down to the nearest 0.1%. For this purpose, political subdivisions can contribute any amount up to the normal cost, including 0%. The only changes in this chart from the prior year are that the PERF political subdivision normal cost rate was 4.0% and decreased to 3.9%, which also caused an increase in the UAAL rate from PERF political subdivisions to increase from 7.2% to 7.3%.
The INPRS Board of Trustees approved new rates for several of INPRS’s plans during the Oct. 30, 2020 board meeting.
Total Employer DB Contribution Rates Effective January 1, 2022 (Calendar Year 2022)
| Effective January 1 | |
2021 | 2022 (new) | |
PERF DB Political Subdivisions | 11.20% | 11.20% |
’77 Fund | 17.50% | 17.50% |
EG&C | 20.75% | 20.75% |
LE DC | 14.20% | 14.20% |
There were no changes to these total contribution rates from the prior valuation.
Total Contribution Rates Effective July 1, 2021 (Fiscal Year 2022)
| Effective July 1 | |
2020 | 2021 (new) | |
PERF DB State | 11.20% | 11.20% |
TRF ’96 DB | 5.50% | 5.50% |
There were no changes to these total contribution rates from the prior valuation.
My Choice Funds
In addition, the INPRS Board approved the following rates for the My Choice funds:
| PERF State (FY 2022) | PERF Political Subdivisions (CY 2022) | TRF ’96 (FY 2022) |
Member Contribution | 3.0% | 3.0% | 3.0% |
Employer Contribution Credited to Member’s Account | 3.2% | 0.0% - 3.9% | 5.3% |
Employer Contribution Credited to Unfunded Actuarial Accrued Liability | 8.0% | 7.3% | 0.2% |
The employer contribution credited to the member’s account is equal to the normal cost of the relevant defined benefit plan liabilities, rounded down to the nearest 0.1%. For this purpose, political subdivisions can contribute any amount up to the normal cost, including 0%. The only changes in this chart from the prior year are that the PERF political subdivision normal cost rate was 4.0% and decreased to 3.9%, which also caused an increase in the UAAL rate from PERF political subdivisions to increase from 7.2% to 7.3%.
Supplemental Reserve Accounts
The INPRS Board approved the following surcharge rates for the supplemental reserve accounts, starting January 1, 2021:
| Effective January 1 | |
2020 | 2021 (new) | |
PERF DB | 0.44% | 0.44% |
TRF ’96 DB | 0.14% | 0.14% |
EG&C | 0.61% | 0.85% |
The surcharges for PERF and TRF ’96 are unchanged from calendar year 2020, but the EG&C surcharge increased from 0.61% to 0.85% due to a decrease in EG&C payroll from the prior year.
The lottery revenue ($30,000,000 per year) is currently arriving in $2,500,000 portions per month and being allocated to the TRF Pre-’96 supplemental reserve account. This legislative session and the biennium that follows are the first time the supplemental reserve accounts may be utilized to pay a 13th check or COLA. The INPRS Board has the authority to allocate the lottery revenue to any of the five supplemental reserve accounts, and may need to allocate funding to different accounts in order to balance the funds and pay a legislated postretirement benefit increase. The board indicated they want to revisit this topic in February 2021.
The INPRS Board approved the following surcharge rates for the supplemental reserve accounts, starting January 1, 2021:
| Effective January 1 | |
2020 | 2021 (new) | |
PERF DB | 0.44% | 0.44% |
TRF ’96 DB | 0.14% | 0.14% |
EG&C | 0.61% | 0.85% |
The surcharges for PERF and TRF ’96 are unchanged from calendar year 2020, but the EG&C surcharge increased from 0.61% to 0.85% due to a decrease in EG&C payroll from the prior year.
The lottery revenue ($30,000,000 per year) is currently arriving in $2,500,000 portions per month and being allocated to the TRF Pre-’96 supplemental reserve account. This legislative session and the biennium that follows are the first time the supplemental reserve accounts may be utilized to pay a 13th check or COLA. The INPRS Board has the authority to allocate the lottery revenue to any of the five supplemental reserve accounts, and may need to allocate funding to different accounts in order to balance the funds and pay a legislated postretirement benefit increase. The board indicated they want to revisit this topic in February 2021.
Payroll dates due in ERM by the end of the year
One of your most important tasks at the end of this year is to ensure your payroll dates are correct in ERM. You must have correct payroll dates in ERM for you to transact with INPRS in 2021. Please make the time to accomplish this task before the end of 2020. If you need help updating your payroll dates, please contact the Employer Advocate Team.
Enroll your employees in Hero’s Honor by Nov. 30th!
The Hero’s Honor Special Death Benefit covers a line-of-duty death in the amount of $225,000 for eligible emergency medical service providers. Purchase coverage now for just $100 per year per employee.
Open enrollment is going on now through Nov. 30. You can download the Special Death Benefit Enrollment form here. To submit your forms, you can either mail your documentation to our office at One North Capitol or email the Employer Advocate team at eppa@inprs.in.gov.
As always, if you have questions, please call our friendly Employer Advocate team at (888) 876-2707 or email them at eppa@inprs.in.gov.
REMINDERS:
- Getting ready to head out for the upcoming holidays? Before you go, be sure to submit your payroll to INPRS. Staying on schedule will reduce your pre-vacation stress and eliminates a to-do item for your first day back in the office.
- It’s very important to keep us up-to-date whenever an employee leaves their position. You can easily report any separations from employment by updating the employee’s last day in pay and last check date in ERM.