TRF Hybrid vs My Choice

7/1/2024 Which option is right for you? For TRF Members As a new employee entering into TRF-covered employment, you have 60 days from your start date to choose between two retirement options. You will receive a PIN number in the mail with instructions on how to access your online account in order to make an election. If you do not make a choice within the 60 day election window, you will default to the TRF Hybrid plan. Your plan selection is irrevocable, regardless of whether you choose between the two options or default. TRF Hybrid Plan De昀椀ned Bene昀椀t (DB) and De昀椀ned Contribution My Choice: Retirement Savings Plan Plan Type Account (DC) Default option if no election is made in 60 days 60 days to choose this plan Election DC (employee share): Fixed 3% of gross wages/May elect to make post-tax voluntary contributions not to exceed 10 percent of gross wages (100% vested from date of hire) 6.0% towards DB through Dec. 31, 2024. Effective Contributions 6.0% crediting rate through Dec. 31, 2024. Effective Jan.1, 2025 to Dec. 30, 2025, rate will be 6.5%* Jan. 1, 2025, to Dec. 30, 2025, rate will be 6.5%* (employer share – funds the pension benefit) (employer share toward DC account, requires vesting) For 昀椀xed DC contributions of 3% of gross wages: 100% vesting from date of hire Vesting Variable DC percent: 20 percent vesting increases for every DB: 10 years of service full year of participation up to 5 years For 昀椀xed contributions toward DC of 3% of gross wages (employee share): Available upon separation of employment subject to limitations. DB: Available upon separation of employment and age Variable percent: Employer share available upon separation Bene昀椀t Eligible and service requirements: of employment and based on full years of participation: < age 50 to 59 with 15 years of service (early 1 year = 20% retirement with reduced benefits) 2 years = 40% < age 55 with 30 years of service 3 years = 60% < age 60 with 15 years of service 4 years = 80% < age 65 with 10 years of service 5 years = 100% < age 65 with 20 years of service** DB is a lifetime retirement bene昀椀t that can be taken Vested portion of account balance available as a lump by itself. The DC is available as a lump sum, a direct sum, partial withdraw, or direct rollover or can be used Options rollover to another plan or used to purchase a lifetime to purchase a lifetime monthly annuity (minimum account Retirement monthly annuity. balance required). *Regardless of the set annual rate, the TRF Hybrid de昀椀ned bene昀椀t amount is an average of annual compensation based on 20 quarters, years of service and a multiplier of 1.1 percent. This rate is a variable percentage set annually by the INPRS board. Contribution amounts covering unfunded pension liability are not made to My Choice: Retirement Savings Plan accounts. For more information on employer contribution rates, visit www.in.gov/inprs/ercontributionrates.htm. **See the Teachers’ Retirement Fund Member Handbook.