Pension Benefits 7.5 Final Average Earnings Calculation Final average earnings (FAE) refer to the highest 5 years of compensation in a PERF Hybrid covered position. INPRS will combine 20 quarters in groups of 4 consecutive quarters (as mandated by law) over your entire PERF/TRF Hybrid covered career. The resulting average in all cases will be the highest possible benefit. The items included in this calculation are:  All compensation reported as gross income on a W-2 for covered service by an employee in a PERF/TRF Hybrid covered position.  Pre-tax contributions paid to the Fund by the employer.  Amounts deferred under sections 125, 403(b), or 457 of the IRC.  Amounts that would have been paid when you were on an unpaid leave of absence while serving in an elected position.  Compensation paid in contemplation of your retirement (severance pay), up to $2,000, including any employer-paid mandatory contributions paid before you cease employment.  Compensation paid as part of a legal settlement or for back-pay that will be allocated to the year in which the compensation was earned or would have been earned.  Differential wage payments for you on active military duty on or after January 1, 2009. Compensation from multiple employers is totaled if you receive annual compensation from two or more participating employers and you and each employer made all required contributions to the Fund. 7.6 Regular Retirement without Employer Separation (Active, In Service) If you are a PERF Hybrid member no longer working in a PERF/TRF Hybrid covered position but still actively working with the same employer in a non PERF/TRF Hybrid covered position, you may be eligible to retire from PERF Hybrid or TRF Hybrid and begin receiving pension benefits if you are otherwise eligible for retirement and have reached normal retirement age. The in-service retirement age is the same as the regular retirement ages for all plans employing the Rule of 85 (35 IAC 1.2-1-4). See section 7.1 for more details. 7.7 Millie Morgan Retirement If you are at least 65 years of age as of June 30, 2023, with at least 20 years of creditable service, you may start receiving your pension benefit effective July 1, 2023, while still working in your PERF Hybrid- covered position. Millie Morgan Retirements cannot be back dated (retro retirement). Once you elect a Millie Morgan Retirement, your election is irrevocable. If you choose to start receiving your pension benefit while still working, you will not earn any more service credit toward retirement. As a Millie Morgan retiree you are not eligible for a second retirement if you terminate and later reemploy. However, you can elect to continue to make contributions to your DC account. School Year Service Credit (PERF) can be applied to a Millie Morgan retirement if the date of hire and Millie Morgan Retirement date are reflective of a full regular school term or contract period for your position. Required Minimum Distribution (RMD) does not apply to Millie Morgan Retirements because you are continuing to work and receive a salary. Public Employees’ Retirement Fund Hybrid Plan Page 31 of 48 Member Handbook Effective: 07/01/2024