October 7, 2013
Changes to PERF benefits coming in 2014
The Indiana Public Retirement System (INPRS) Board of Trustees has approved two changes that will influence the amount of future PERF retirees' benefits. Clerical, service and operations/technical staff hired before Sept. 9, 2013, participate in the Public Employees’ Retirement Fund (PERF).
These changes will go into effect Oct. 1, 2014, for future retirees:
* Retirement pension benefits will be calculated using updated actuarial factors.
* PERF participants choosing to annuitize their annuity savings account (ASA) will convert the accumulation to a lifetime payment based on market rates at the time they retire. INPRS is selecting an outside provider to administer the ASA annuity program.
PERF is a defined benefit program and provides a monthly benefit for the life of the retiree based on a formula that includes years of service, high five years of salary and age at retirement. Many states sponsor pension programs and have faced funding issues as life spans of retirees have increased and years of recession have limited investment returns. Indiana's PERF program is ranked above most other states when it comes to having funds on hand to handle projected costs, but the goal is to secure the future of all retirees by making adjustments to bring the program into 100 percent funding status.
The Human Resources Benefits team is in contact with INPRS to learn about assistance that will be made available to Purdue participants. PERF's website provides a summary of the changes as well as an opportunity to sign up for updates. A calculator is in development that will help determine specific impact for individuals. To learn more about these changes, visit INPRS at www.in.gov/inprs/2817.htm.As additional information and comparison tools are made available, Purdue will partner with PERF to assist participants in evaluating the significance of these changes to their plan for retirement.