Defined Contribution investment portfolio updates as of July 1, 2023
During the 2023 legislative session, several investment-related matters came to the floor in both the House and Senate of the Indiana General Assembly. When this year’s session came to an end, legislators agreed that Indiana’s public pension funds should divest from Chinese investments, resulting in what’s now law, known as Senate Enrolled Act 268 (SEA 268), outlined in Indiana Code 5-10.2-13-1 et seq.
While the legislative process took place, INPRS communicated regularly with state elected officials, providing data, insight, and information on what it would take to comply with such a requirement. Our investments team coordinated with our fund managers, discussing the intricacies of such a policy shift and how to do so in a manner that protected the fund and our members’ assets.
INPRS introduced a revised investment policy statement (IPS) to the INPRS Board of Trustees at its June 23, 2023, meeting. This policy was accepted by the Board and the revisions allow INPRS to memorialize what’s outlined in SEA 268. As a result, INPRS is making the necessary changes in accordance with SEA 268 to its defined benefit (DB) portfolio and the investment lineup available to INPRS members with defined contribution (DC) accounts.
Effective July 1, 2023, the International Equity Fund’s benchmark and Target Date Funds' glide path have been adjusted in compliance with SEA 268. These changes will be shown on the funds’ respective fact sheets this fall when INPRS makes its regular quarterly updates, reflecting the most recently closed quarter.
These changes are not expected to have a material impact on the investment objectives or risk profiles of the International Equity Fund or the Target Date Funds, which can be viewed on the investment fund performance fact sheets.
Members won’t experience any interruption in the ability to make changes to their investment allocations due to this change. These changes will also have no impact on INPRS’s 6.25% target rate of return for the DB portfolio, or the pension benefits members have earned.
Managing INPRS’s investment portfolio and offering our members a diverse menu of investment options is a responsibility our entire organization takes seriously. Your retirement dreams are on our minds, in every meeting, and at every turn as we manage the fund with diligence, ethics, and in a manner that protects hardworking Hoosiers’ futures. To review your investments and recent performance, log on to your INPRS account at myINPRSretirement.org.
2023 legislative updates
The 2023 Indiana General Assembly approved the below INPRS-related legislative changes that impact INPRS and its members. These laws went into effect on July 1, 2023, unless otherwise noted:
House Enrolled ACT 1001 (HEA 1001) – Change to In-Service Retirement Eligibility Requirements (PERF and TRF)
Requirements for PERF and TRF members to begin receiving pension benefits while continuing to work in a covered position (in-service retirement) have changed. PERF and TRF plan members with at least 20 years of service are now eligible for in-service retirement, also known as Millie Morgan retirement, at age 65. Prior to July 1, 2023, the eligibility age for in-service retirement was 70. This change excludes elected officials who are still able to begin in-service retirement at age 55 with 20 years of service.
View the latest legislative changes impacting INPRS members at bit.ly/2023legislativesummary.
New retirement eligibility rules mean you may be able to collect your pension while you continue working
Hybrid plan employees age 65+ with 20+ years of service have new opportunities
As of July 1, 2023, Indiana Public Retirement System (INPRS) members working in the Public Employees' Retirement Fund (PERF) Hybrid plan or the Teachers' Retirement Fund (TRF) Hybrid plan with 20 or more years of total service credit and age 65 or older will be eligible to collect their pension benefit while continuing to work in their PERF or TRF-covered job under the new eligibility rules for what's known as the Millie Morgan retirement option.
Collecting your pension benefit while you continue to work may sound too good to be true, but it's a benefit that's been available for active, long-term employees in INPRS's PERF or TRF Hybrid plans for years.
Known as the Millie Morgan retirement option, active employees who meet age and service requirements may choose to receive their pension benefits while remaining employed in their INPRS-covered position.
Legislation passed by the Indiana General Assembly in 2023 expanded the age eligibility to age 65 (down from age 70) and retained the 20 years of total service credit requirement. This means that more long-term employees can begin collecting their pension benefits, which may help more retirement dreams become possible.
Members considering this option will need to review their situation carefully, as their retirement selection is permanent and will not adjust while they continue to work or after they leave PERF or TRF Hybrid-covered employment.
Age 65+ AND have 20+ years of service?
Register for a personalized counseling session with an INPRS retirement expert at bit.ly/BookWithINPRS.
Review Millie Morgan retirement scenarios, understand your retirement options, and learn more by visiting bit.ly/MillieMorganInfo.
Financial wellness planning tips
Ideas to help you secure a healthier financial future
Many consider financial freedom a cornerstone to enjoying a good life. No matter your household income, personal debt, or day-to-day expenses, the bottom line is most Americans in general need help with their finances regardless of individual challenges. The key to improvement is to have a plan and pay yourself first to save more while finding a way to reduce debt.
How? Our recordkeeping partner, Voya, has a list of the top things you can start with to become financially well.
- Plan for the life you want and set goals.
- Protect your earnings.
- Focus on your spending and saving.
- Build an emergency savings.
- Save for retirement.
- Get out of debt.
- Protect your family and future.
- Save for other goals.
If you want to know more about how these helpful tips can help you balance the freedom of living for today, saving for tomorrow, while living within your means along the way, read this full guide, and others at Voya’s Financial Wellness library.
Source: Voya Financial
Protecting consumers' right to challenge discrimination
The Consumer Financial Protection Bureau (CFPB) is committed to ensuring fair, equitable, and nondiscriminatory access to credit for individuals and communities. The CFPB administers and enforces federal laws such as the Equal Credit Opportunity Act, a landmark civil rights law that protects people against discrimination in all aspects of credit transactions.
Under the law, consumers targeted by race, religion, age, or any other prohibited basis with predatory lending products or practices also have the right to challenge that discrimination by bringing a lawsuit. Yet lenders engaged in discriminatory acts or practices sometimes unfairly try to make consumers sign away that right. Fortunately, many courts have rejected attempts to make people sign away crucial legal rights. Congress’s strong commitment to prohibiting discrimination in the credit markets would be undermined if courts did not allow consumers to challenge harmful and predatory conduct.
If you believe you or someone you know has been affected by discrimination when applying for or modifying your mortgage loan, you can submit a complaint with the CFPB.
Read more on how the CFPB is protecting consumers from unfair and discriminatory practices at bit.ly/ProtectingConsumersRights.
Source: Consumer Financial Protection Bureau