Get your 2020 spending plan ready with help from INPRS. This adjusted way of thinking can help you focus on your goals – both financial and aspirational – to create a plan that will take care of both your wants and your needs. To get started:
- Review your 2019 expenses
- Project your 2020 income
- Write down your top five financial goals for the year.
Such as:
- Family vacation
- Home improvement
- Increased savings/investing
Once you’ve identified how much money you have to work with, your obligations, and your goals, it’s just a matter of plotting out the numbers, so they work for you. Create your spending plan using Excel, graph paper or download INPRS’s budgeting worksheet, at bit.ly/INPRSbudgetingworksheet. You can also check out the resources available at www.myINPRSretirement.org. When you log in, select “Financial Wellness” from the top navigation and select “Spending and Saving.”
If you’d like more information, attend our next budgeting workshop or lunch and learn.
View dates and register at bit.ly/RBWcalendar.
myOrangeMoney®
Calculate your potential retirement-income on your INPRS account! Use the myOrangeMoney® experience to project your INPRS benefit, Social Security and personal savings to see what your retirement paycheck could be when you plan to retire. To learn how to use myOrangeMoney®, watch this video: www.voya.com/my-orange-money-video.
3 Important Factors to Consider When Creating a Retirement Income Strategy
You’ve been saving diligently for years and now you’re ready to retire! While it’s an exciting time, you will be faced with the challenge of generating enough income to last throughout retirement. A clear strategy, specifically a retirement income strategy, will help meet your long-term needs and provide money for everyday and unexpected expenses. When creating a retirement income strategy, here are three important factors to consider:
- Longevity – Today, many people are living 20 years or more in retirement.1 It’s important to choose an income strategy that helps generate enough income for the length of your retirement. You want to make sure that you don’t deplete your savings too quickly.
- Market fluctuations – Investing retirement savings in the market might be appealing if you are looking to grow assets. However, keep in mind that these funds could be affected by the ups and downs of the market and it might be difficult to recoup your funds if the market takes a downturn.
- Fees – When investing in the market, financial advisors may charge high fees and commissions which could eat into your savings. Reviewing options provided by your employer might be more cost-effective.
Everyone has their own aspirations and financial goals in retirement. Keeping these three factors in mind will help you create the right income strategy. To find out more information, watch Which Retirement Income Strategy is Right for You?
1. Top 10 Ways to Prepare for Retirement, U.S. Department of Labor, 2017.
Group annuity contracts are issued through Metropolitan Life Insurance Company. Like most group annuity contracts, MetLife group annuities contain certain limitations, exclusions and terms for keeping them in force. Contact your MetLife representative or human resources department for more information. Metropolitan Life Insurance Company, 200 Park Avenue, New York, NY 10166. L0319512851[exp0520][All States][DC]
Admin fees
Effective Jan. 1, 2020, the monthly administrative fee for member defined contribution (DC) accounts will increase to $3.75 from $3.00. Since accounts are charged in arrears, members will see this fee deducted from their accounts in February 2020. INPRS’s Board of Trustees approved the new fee on October 25, 2019. For more information, visit bit.ly/AdminFees.
INPRS Board Approves New Rates for PERF My Choice, TRF ’96 Funds
On Oct. 25, the INPRS Board approved new rates for the PERF My Choice Retirement Savings Plans and the TRF ’96 Fund. The new rates will go into effect in fiscal year 2021 for the PERF My Choice Plan for State employees and the TRF ’96 Fund. The new rates for the PERF My Choice Plan for Local Government Employees will go into effect for calendar year 2021.
PERF My Choice: Retirement Savings Plan for State Employees (FY 2021) | PERF My Choice: Retirement Savings Plan for Local Government Employees (CY 2021) | My Choice: Retirement Savings Plan for Teachers (CY 2021) | ||||
Prior | New | Prior | New | Prior | New | |
Total Normal Cost | 3.0% | 3.2% | 0.0%-3.8% | 0.0%-4.0% | 5.3% | 5.3% |
Total Employer Contribution Rate | 11.2% | 11.2% | 11.2% | 11.2% | 5.5% | 5.5% |
UAAL Contribution Rate | 8.2% | 8.0% | 7.4% | 7.2% | 0.2% | 0.2% |
Normal cost represents the current year’s cost of defined benefit growth due to new service and pay being factored into the benefit calculation. An additional 3% member contribution is required. The state pays the member’s contribution on behalf of the member, while political subdivisions elect whether or not to pay the contribution on behalf of the member. Normal cost in the table above represent the portion of the employer contribution being credited to the member’s account. All contributions are based on a percentage of the employees’ salary. This information is important for you to understand because, if you're a My Choice plan member, the amount your employer contributes to your account may be changing.
Reminders!
We love staying in touch with you, and it’s much easier if we have your personal email address. Why? Your personal address stays with you, even if you leave a job. Also, some workplace security filters have blocked INPRS’s emails, and we want to ensure you get your retirement plan information, no matter what. Log on to your account and update your email address to your personal email.
The 2020 Census will begin April 1 and will offer the option of paper, phone, and online participation. All households should respond by May 2020. Remember, your participation is important!
If you are a member of more than one INPRS plan, you must designate your beneficiaries on each of your plans. The beneficiaries you’ve listed on one plan do not transfer to your other plans. Log in and review your accounts today!
Every attempt has been made to verify that the information in this publication is correct and up-to-date. Published content does not constitute legal advice. If a conflict arises between information contained in this publication and the law, the applicable law shall apply.
