Thinking about retirement? Check out our new video.
Whether you're new to the workforce or a long-time employee, you should be thinking about retirement. Watch this video to help you get started.
How does INPRS determine my retirement date?
Your retirement date is the official date that we use to calculate your benefits and it is always on the first day of the month. It does not refer to your last day of work or the day you mail your application. For example: Your last day of work (last day in pay status) is Aug. 2, your effective date of retirement is Sept. 1.
We recommend that you submit your retirement application at least 90 days before your anticipated retirement date, but no more than nine months in advance. For example, if you want to retire on January 1, you should submit your application no later than Oct. 1 of the previous year.
In some instances, based on age and years of service, PERF or TRF may determine that your retirement date can be up to six months before your requested retirement date. By law, PERF or TRF may pay up to six months of retroactive benefits.
Your employer is most familiar with your employment history, so we strongly encourage you to confirm your employment and service history with your employer prior to choosing a retirement effective date.
Examples to Help You Choose an Appropriate Retirement Date
1. Retirement date in the past: John has 10 years of service. He turns 65 on April 12, which makes him eligible for a normal retirement by age and service. He stops working (separates from service) for his PERF-covered employer the next day. However, he waits until January 1 to mail his retirement application to PERF. He must choose August 1 or later as his retirement date because PERF cannot pay benefits for more than six months into the past.* Therefore, John cannot receive a benefit for May, June or July.
2. Retirement date in the future: Sarah has 10 years of service. She turns 65 on April 12, which makes her eligible for a normal retirement by age and service. She does not wish to be without income once she stops working. She mails her application in March, chooses July 1 as her retirement date and stops working (separates from service) for her PERF-covered employer on June 30.
*Six months of retroactive benefits do not apply if you are an elected official OR if you are at least 70 years old with 20 years of service and plan to continue working in your current position.
Annuity rate change
Our annuity rate has changed as of July 1, 2017. The new rate of 3.90 percent is in effect through Sept. 30, 2017.
The quarterly market rate equals 1.5 percent plus an average* of the 10-year U.S. Treasury yield, rounded to the nearest 100th percent. Here’s how the rate is determined:
Assuming the average 10-year U.S. Treasury yield is 1.87 percent: Market Rate: 1.5 percent + 1.87 percent = 3.37 percent.
*The average is determined using the last five business days of the second preceding quarter. For example, the rate was determined for July 1, 2017 through Sept. 30, 2017 by the last five business days in March 2017.
Go here for more information.
2017 Legislative Summary
Changes made during the 2017 legislative session may have impacted your retirement plan. Click here for a brief summary of changes.