INPRS Podcast: Pilot

Welcome to the Indiana public retirement system’s podcast.

I’m Steve Russo, the executive director for INPRS and I’ll be your host as we discuss the latest news, updates, and changes impacting the retirement landscape in Indiana.

INPRS is launching this podcast initiative as a way to better connect with current and future INPRS employers, leaders, and decision-makers. We’ll talk about the goings-on with the organization, what’s ahead, and how INPRS can support you in administering INPRS benefits. We’ll also share the latest on how we can support your employees through their retirement journeys.

This is our very first episode and we are honored to have you join us.

Because this is our first episode, I thought we’d start out with a brief overview of who INPRS is, what we do, and who we serve.

Once we’ve become familiar with one another, I’d like to provide you all with some updates from the most recent meeting with our board of trustees.

Let’s get into it.

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What we affectionally call INPRS originated in 2011 when the Indiana general assembly integrated the management of the two largest public retirement plans in the state. Those two plans are the public employees’ retirement fund, or perf, which began in 1945 and the Indiana state teachers’ retirement fund, or TRF, which started in 1921. Today, INPRS manages seven retirement plans, serving more than 213,000 active members and approximately 156,000 benefit recipients and manage a $36.9 billion portfolio.

We serve two distinct customers- our nearly 1,273 employers and the almost half a million working and retired folks, each with their own unique needs, challenges, and desires when it comes to how they interact with their retirement plan.

Depending on which plan a member is in, they may have a defined benefit or pension that they are working toward earning, a defined contribution plan that they, their employer, or a combination of the two contribute money which the member then chooses how to invest the funds, or both.

Our team supports members while they work and during their retirement years. Specifically, we develop engaging educational materials and offer group and one-on-one counseling. We also send dynamic account statements to ensure they understand what they’ve earned as well as give them an opportunity to make sure their account is up to date. And our team provides operations support through our member services center, all while making sure our benefits recipients get paid the right amount, on time, every time.

For employers, the relationship is much more customized based on what plan or plans the employer offers, their size, and their unique needs and challenges. The state of Indiana, of course, is our largest employer, with over 30,000 employees. But we also serve employers with just a dozen employees, and work with each of them to determine what plan offering is the best fit. We offer on-site visits, monthly communication, and our employer services group that works with employers daily to administer their retirement benefits.

One of the most important things we can do in our mission is ensure that hardworking Hoosiers get the retirement benefits they’ve earned and to work hand-in-hand with our employers to manage costs.

We know pensions are not as common as they once were, which makes them and the employers that offer them all the more desirable. Funding a guaranteed lifetime pension takes a keen actuarial eye as well as a partnership between the pension organization and each and every employer.

At our most recent board meeting that took place on may 7, 2021, the board approved a lower target rate of return assumption for our investment portfolio, taking the assumed rate of from 6.75% down to 6.25%. The new 6.25% return assumption is reflective of federal monetary policy that has kept interest rates low for an unpresented level of time.

The asset allocation was slightly changed, but remains  designed to meet the system’s obligations to plan members and mitigate volatility to employer contribution rates.

So, what does this mean for employers? The impact to employer contributions rates will be determined this fall.  Any changes to employer contribution rates will not go into effect any sooner than 2023.  Our team is and will always be committed to earning competitive returns in the market while managing risk.

In the meantime, consider if a site visit from INPRS is something you’d be interested in. Our team would be happy to discuss with you what considerations you may want to keep in mind as we venture toward this new rate of return.

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So, what’s next? We’re planning on signing on at least after every board meeting to provide you with an update on the organization, important notes from the board, and more.

To check out a transcript of this episode or to watch the video version, visit our website at inprs.in.gov or our YouTube channel. Until next time, take care and thank you for your service.