7 Pension Benefits Your TRF Hybrid retirement benefit has two parts: a monthly pension benefit (DB) and a defined contribution account. Your DC includes any voluntary payments and interest from investments. If you are not retired, you can roll over funds from an IRA or other qualified retirement plan into TRF Hybrid. Only transfers of taxable (pre-tax) funds can be accepted by INPRS. If you have service credit in TRF Hybrid and PERF Hybrid, you must choose which fund will pay your pension benefit 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. No employee contributions are required for the defined pension benefit. The cost of the plan is paid for by the participating employers as well as the State, and the benefit is calculated using a three-factor formula set by law: (1) your final high-5 average salary, (2) service credit, and (3) a multiplier 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., Option A1 – 5-Year Certain and Life, Option B1 – 100% Survivorship, etc.). NOTE: As of January 1, 2018, DC and RSA funds are no longer able to be annuitized by INPRS and included in your monthly benefit. They are handled according to your choices made during completion of the retirement application. 7.1 Retirement Requirements for a Full Pension NOTE: By law, if you are eligible to receive a retirement benefit but wait to submit a retirement application, TRF can only pay up to 6 months of retroactive benefits. 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 TRF Hybrid (or a combination of PERF Hybrid and TRF Hybrid). • Age 60 and have 15 or more years of creditable and/or eligibility service under TRF Hybrid (or a combination of PERF Hybrid and TRF Hybrid). • At least age 55 and your total years of creditable and/or eligibility service under TRF Hybrid (or a combination of PERF Hybrid and TRF Hybrid) equals 85 or more. This is the Rule of 85. NOTE: If your age or years of service credit are a combination of years and months, the Rule of 85 still applies. For example, if you are 55 years and 3 months old and have 29 years and 9 months of service credit, your combined total of age and years of service equals 85. However, you must be at least age 55 to qualify for full 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. The LDIP date is not needed for Millie Morgan, Elected Teachers' Retirement Fund Hybrid Plan Member Page 29 of 47 Handbook Effective: 07/01/2024