10 Additional Plan Information 10.1 Cost of Living Adjustments (COLAs) Cost of living adjustments are increases made to your monthly pension benefit to help if the cost of living is more than when you retired. COLAs must be actuarially funded and are not automatic in Indiana. The General Assembly must pass legislation granting a COLA. You will receive a COLA only if the General Assembly passes legislation. Your COLA will normally be a percentage of your current pension benefit. Your annuitized DC and RSA funds are not included when calculating your COLA. 10.2 13th Check Supplemental Payment The 13th check is a lump sum, single payment INPRS makes to you. It does not increase your base monthly pension benefit. The amount INPRS pays you is based on your creditable service at retirement. You will receive a 13th check only if the General Assembly passes legislation. These checks are actuarially funded. A survivor or beneficiary of the member may be eligible for the 13th check. The amount of the 13th check will be distributed in equal shares if the member has two or more survivors or beneficiaries. For calendar year 2024, a member who retired on or before December 1, 2023, and was entitled to a th check. The 13th check shall be payable no later than October 1, benefit on July 1, 2024, will receive a 13 2024. Survivors or beneficiaries of these members are included. 10.3 Required Minimum Distribution (RMD) Information The Internal Revenue Service (IRS) requires you to take required minimum distribution (RMD) if you have an interest in a pension benefit. Section 401(a)(9) of the Internal Revenue code (IRC) requires INPRS to begin paying distributions of your benefit starting April 1 of the calendar year following the latter of when you obtain the RMD age specified by the IRS or separate from employment: RMD Age Condition(s) Source 70 1/2 Reach age 70 ½ before 01/01/2020 Pre Secure Acts 72 Turn 70 ½ on and after 01/01/2020 Secure 1.0 73 Turn 72 on and after 01/01/2023 & reaches 73 before 01/01/2033 Secure Act 2.0 75 Turn 74 on or after 01/01/2033 Secure Act 2.0 • Anyone who turned 72 in 2022 or earlier follows the old rules. Those who turned 72 in 2022 had to take their first RMD no later than April 1, 2023. • Those who turn 72 in 2023 and any time through 12/31/2032 (born from 1951 to 1959) must take the first RMD by April 1 of the year after they turn age 73. • Anyone born in 1960 or later must take their first RMD by April 1 of the year after they turn age 75. If the benefit does not begin in a timely fashion, the IRS will impose a 25% penalty on the member due to a late distribution. The IRS could reduce that penalty to 10% if the member receives a distribution within a correction window. You must complete the online retirement application through the Retirement Application Center (RAC) from . If the application is not completed on time, RMD payments your online account at myINPRSretirement.org will automatically begin if you have separated from employment and have not begun the distribution process. Teachers' Retirement Fund Hybrid Plan Member Page 43 of 47 Handbook Effective: 07/01/2024