7 Pension Benefits Your PERF Hybrid retirement benefit has two parts: a monthly pension benefit, (DB), and a defined contribution (DC) account (formerly ASA). The lifetime monthly pension benefit is calculated using your final high-five average salary (earnings), service credit, and a statutory defined rate of 1.1 percent (0.011). This does not consider any age reduction factors for early retirement and/or any retirement options you elect at time of your retirement (e.g. 5-Year Certain and Life, 100% Survivorship, etc.). If you have service credit in PERF Hybrid and TRF Hybrid, you must choose which fund will pay your pension benefits when you apply for retirement. The retirement calculation is based on the wage and contribution submissions from your employer. If your employer has not submitted all wage and contribution information at the time of your retirement, INPRS will review and recalculate your benefit to include any trailing wage and contributions which could potentially increase your monthly benefit. 7.1 Regular Retirement Requirements for A Full Pension Eligibility requirements for a full, unreduced pension benefit are as follows: • Age 65 and have 10 or more years of creditable and/or eligibility service under PERF Hybrid (or a combination of PERF/TRF Hybrid). • Age 60 and have 15 or more years of creditable and/or eligibility service under PERF Hybrid (or a combination of PERF/TRF Hybrid). • At least age 55 and your total years of creditable and/or eligibility service under PERF Hybrid (or a combination of PERF/TRF Hybrid) equals 85 or more. This is the Rule of 85. NOTE: By law, if you are eligible to receive retirement benefits, but wait to submit a retirement application, PERF can only pay up to 6 months of retroactive benefits. 7.2 Retirement Effective Date Your retirement effective date will be the first day of the month following your last day of work (also known as last day in pay [LDIP] from your employer). The effective date of your retirement can be the first day of the month following your last day in pay. Example If the last day in pay is August 2, the effective date of retirement is September 1. Last day in pay is not needed for Millie Morgan, Elected Official, or Disability retirements; however, you cannot receive distribution of additional contributions until a last day in pay is received. 7.3 Retirement Benefit Payment Dates Your pension benefit payment date is the 15th of the month. If the 15th falls on a weekend or holiday, your payment will be dated the business day before. The direct deposit is made on the same day as the payable date. The list of PERF Retirement Payment Dates is available on the INPRS website. 7.4 Calculating A Retirement Pension Benefit Estimate The amount of your monthly pension benefit is based on the following factors and your entries and selections as you create your estimate: Public Employees’ Retirement Fund Hybrid Plan Page 29 of 48 Member Handbook Effective: 07/01/2024