PERF at a Glance

7/1/2023 PERF AT A GLANCE Defined Benefit Defined Contribution (DC) Account Vesting 10 years of PERF and/or TRF-covered service Immediate 8 years for specified elected positions Contributions • The employer pays 100%. Mandatory 3% of gross wages paid by: • The INPRS Board of Trustees determines • Employer, or the employer contribution rate annually. • Employee, or • No member contributions. • Shared by both employee and employer. 1 Voluntary Contributions The employee can elect to make additional post-tax contributions. Investment Members do not direct the investment Member can choose from 8 funds: Options of the Defined Benefit.  Stable Value Fund  Money Market Fund  Fixed Income Fund  Inflation-Linked Fixed Income Fund  Large Cap Equity Index Fund  Small/Mid Cap Equity Fund  International Equity Fund  Target Date Funds Eligibility for • Age 65 with 10 years of service. Automatic eligibility to withdraw DC balance once Retirement • Age 60 with 15 years of service. member separates from service.3 Benefit • At age 55 if age and creditable service Members separated from service may retire with the total at least 85 (“Rule of 85”). PERF Hybrid Plan and continue to work in a non- • Early retirement with reduced benefits INPRS covered position if they meet age and service between ages 50-59 with 15 years of requirements. service. • Age 65 with 20 years of service.2 • Special provisions for certain elected officials. Eligibility for • Qualified for Social Security disability Automatic eligibility to withdraw DC balance if Disability benefits and provided proof of qualification. receiving a disability benefit. • Received a salary from a PERF-covered Benefit position within 30 days of the termination date. • Minimum of 5 years of service. Account Members receive PERF Annual Member Statements Quarterly member statements are provided online Statements (AMS) by mail. The AMS includes an estimated and/or mailed by INPRS. annual defined benefit amount, years of service, and DC account investment information. Members can choose to have the AMS sent via email every year. Copies are also available from the member’s online account at myINPRSretirement.org. 1Go to the PERF Hybrid Member Handbook for more on voluntary contributions. 2Actively employed members who have completed at least 20 years of service may apply for retirement benefits at age 65, remain actively employed, and receive monthly benefits. 3 Certain restrictions may apply if the member is vested in a pension benefit.

7/1/2023 PERF AT A GLANCE Defined Benefit Defined Contribution (DC) Account Withdrawals None – members are not eligible for the Members who are NOT separated from service Before Defined Benefit until they reach age and may take a DC withdrawal if: service requirements and separate from • the member is at least age 59½ AND age Retirement employment. & service eligible for full retirement benefits; or the member is working in non PERF Hybrid position, is at least age 59½, AND age & service eligible for full retirement benefits. Members who are disabled or separated from service: • may leave the DC account invested in INPRS or receive a distribution, or • may roll over the DC account to a qualified plan or other eligible retirement accounts. Income and The monthly lifetime benefit amount is Member chooses the form of payment. Options at determined by: • May choose monthly payment for the 1. Age lifetime benefit Retirement 2. Years of service • May defer payment until RMD (required 3. Average annual compensation (Final minimum distribution) age Average Salary) based on 20 quarters • May choose direct payment or rollover 4. Multiplier of 1.1 percent (.011) distribution  Benefit amount is taxable as ordinary income The amount of distribution is determined by  Survivor options are available account balance, taxes withheld, and distribution The monthly benefit amount is affected by the option chosen. payment option election made at retirement.  Any Cost of Living Adjustment (COLA) must first be approved by the Indiana General Assembly. Beneficiaries Monthly payment Balance payment • Following the death of a retired member • Receives the total accumulated amount under applicable payment options. after the death of an active member or • Following the death of an active member retired member who elected to defer based on eligibility. payment. • Receives remainder of the accumulated amount per retirement payment options chosen by the member. FOR YOUR BENEFIT This handout is an overview of the PERF Hybrid plan provisions. Complete details are available in the PERF Hybrid plan member handbook. You may read it or print your copy from the INPRS website. You may also request a copy in writing or by calling our toll-free number, (844) GO-INPRS. Keep your name, address, and beneficiary choices current. Visit your online account at myINPRSretirement.org to make changes. Without a current address, INPRS can’t reach you when you may be retirement eligible. INPRS can pay 6 months of retroactive pension benefits only. INPRS can pay death benefits to designated beneficiaries on file. Don’t let death benefits go to the wrong person. 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 the information contained in this publication and the law, the applicable law shall apply. One North Capitol, Suite 001 ■ Indianapolis, IN 46204 ■ toll-free: (844) GO-INPRS ■ www.inprs.in.gov