Destination: Retirement – Fall 2020 ('77 Fund JRS PARF and EG&C)

If you are new to budgeting or have been doing it most of your adult life, you likely understand a few things. First, successful budgeting means ensuring your expenses do not outweigh your income. Second, if you get the first right, you'll avoid unnecessary debt.

 

Every day you're faced with budgeting choices.  Whether deciding how much you can spend on lunch to juggling payments for rent, phone, Internet, or other bills. Having a budget is important in managing your finances, building your savings, and planning for retirement. A sound financial plan and budget can even prepare you for the unexpected.

 

And the unexpected is what we've all seen in 2020. If we've learned anything this year, it's that our lives don't always fit our best plans.

 

Making sure you plan for a rainy day – or in the case of this year, a monsoon – is essential so that you don't find yourself flailing for a financial life raft or drowning in waves of debt.

 

If you're experiencing that financial monsoon this year, do you know how to recover your financial health?

 

Our experts will help you answer your important questions and more:

 

The webinars are available on multiple dates in October and November. To pick one and register go to https://inprsfinancialeducation.timetap.com.

 

 

Part of planning for retirement is deciding how you will receive your benefit payment from INPRS. Your choices when completing the retirement application will be direct deposit to a bank account, or payment via an INPRS debit card.

 

INPRS is in the process of converting the few INPRS retirees who receive benefit payments via mailed check to one of the two options noted above.

 

A list of commonly asked questions regarding the INPRS debit card is available online by visiting: https://bit.ly/INPRSDebitCards.

 

Planning for retirement starts with a goal! Learn how close you are to your retirement goals or what you may need to do to reach them by tapping into the resources INPRS has made available to you. Log on to your INPRS account for resources on:

 

If you’re hoping to better understand your future retirement income outlook, check out the myOrangeMoney® retirement calculator. Located on the first page after you log in, the myOrangeMoney® retirement calculator will show you the future monthly income you may need and your progress towards that goal. If you’re falling short, you can try out different savings and investment return scenarios to help you reach your ultimate retirement income.

 

The 2020 General Assembly approved a number of INPRS-related legislative changes which affect the administration of member funds. These laws went into effect on July 1, 2020 (unless otherwise stated):

• Senate Bill 25 (SB 25): Creates a Mental Health Review Panel – A panel composed of a licensed psychologist, a licensed psychiatrist, and an active retired police officer or firefighter (dependent upon who is being evaluated.

If you received a mental illness-related disability after December 31, 2012, you are required to be evaluated at two and four-year intervals by the panel. SB 25 clarifies that mental illnesses are either class 1 or 3 impairments.

• Senate Bill 181 (SB 181): Modifies benefits for survivors of EG&C members – If you are a member of the EG&C plan and die in the line of duty, the nominated survivor is entitled to an annual survivors’ allowance for life equal to 100 percent of the amount to which you would have been entitled had you retired with 25 years of service at 50 years of age.

• Senate Bill 406 (SB 406): Harmonizes DROP benefits for members of EG&C and 1977 Fund – If you enter the DROP at any time and die after June 30, 2020, and you die within less than 12 months after entering the DROP, the death benefits are calculated as if you never entered the DROP.

If you die with at least 12 months after entering the DROP, the death benefits consist of the DROP frozen benefit multiplied by the number of months in DROP. The additional amount may be paid either in one lump sum or three equal annual payments.

• House Bill 1063 (HB 1063): Raises special death benefit from $150,000 to $225,000 for public safety officers – For public safety officers who die in the line of duty on July 1, 2020 or later, the amount of the special death benefit is $225,000.

The legislation, also, allows INPRS to set and require contributions from employers of the 1977 fund, post-secondary education institutions that pay for special death benefit coverage, political subdivisions that pay for special death benefit coverage, and health care systems affiliated with state educational institutions that pay for special death benefit coverage in order to maintain the special death benefit.

• House Bill 1043 (1043): Increases the maximum age of entry for police officers to the 1977 fund – The maximum age of entry for police officers must be less than 40 years of age to become a member of the 1977 fund, while the maximum age of entry for firefighters remains unchanged at 36.

• Senate Bill 10 (SB 10): Updates how INPRS is allowed to provide additional annuity options for members. Effective January 1, 2021, active members of PERF TRF and the LEDC plans who meet age and service requirements for a normal retirement are permitted to take in-service distributions of their defined contribution (annuity savings) account without consequence to the member’s pension benefit, no separation of service required. If you meet minimum age requirements and are age and service eligible for normal retirement, you do not have to wait 30 days after separation to withdraw from your defined contribution account.

The legislative update allows INPRS to provide defined contribution annuity options for members to select that do not include the minimum death benefit. Also, it addresses how benefit payments will be distributed upon the death of a member or a member and all survivors while receiving or eligible to receive benefits.

Contact our Member Advocate Teams at (844) GO-INPRS (844-464-6777) or view your member handbook online for more information on member funds.

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