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The Indiana Public Employees Retirement Fund (PERF)

Is A Two-Part Hybrid Plan

Indiana’s Public Employees Retirement Fund (PERF) is a Hybrid Plan composed of two separate and distinct parts: a Defined Benefit (DB) Pension plus a Defined Contribution (DC) Annuity Savings Account that helps boost your retirement income.

Part 1: Defined Benefit (DB) Pension

The DB component is a lifetime retirement benefit funded 100% by your employer at no cost to you. Your employer’s contribution is calculated at a percentage rate determined annually by the Indiana Public Retirement System (INPRS).

You become eligible for the DB when you reach the established retirement age and service requirements and separate from PERF employment.

Generally, you are vested in the DB after 10 years of creditable service. However, you don’t have to work for the same PERF employer for 10 consecutive years to become vested. A total of 10 years in any combination of PERF-covered positions counts as creditable service for vesting.

Part 2: Defined Contribution (DC) Annuity Savings Account

After your state employer enrolls you in the fund, PERF opens a Defined Contribution (DC) Annuity Savings Account in your name. There are two types of DC contributions:

  • A Mandatory Pre-Tax Contribution which is 3% of your gross earnings.
  • A Voluntary Post-Tax Employee Contribution which is optional and available if your PERF employer participates in the voluntary contributions program.

You become vested in your DC Annuity Savings Account immediately and you can direct your investment in a selection of eight funds.

Upon retirement, your DC is available as a lump sum, a direct rollover to another qualified plan, or combined with your DB for a larger monthly benefit.

Option For Newly-Hired Employees -- My Choice: Retirement Savings Plan

Formerly known as the ASA Only Plan, the My Choice: Retirement Savings Plan is a Defined Contribution (DC) Account that does not have a guaranteed Defined Benefit (DB). If offered by your state employer, as a new employee, you have 60 days from the date you were hired to choose either the PERF Hybrid Plan or the My Choice: Retirement Savings Plan. If you do not choose, you automatically become a member of PERF Hybrid Plan.

Your My Choice account is funded by a 3 percent employee fixed mandatory pre-tax contribution and a variable employer contribution. You can also elect to make additional post-tax employee contributions and direct rollovers from other qualified retirement plans.

Your employee contributions are vested immediately. A percentage of your employer’s contributions are vested based on the number of full years you have participated in the plan. You can direct your investment in a selection of eight funds. Upon retirement, your account balance is available as a lump sum, direct rollover, or a lifetime monthly annuity.

Other Indiana Pension Plans

The Indiana Public Retirement System (INPRS) also administers and manages the following retirement funds:
  • 1.Teachers Retirement Fund (TRF)
  • 2.Prosecuting Attorneys’ Retirement Fund
  • 3.1977 Police Officers’ and Firefighters’ Retirement Fund
  • 4.Judges’ Retirement System
  • 5.Excise, Gaming and Conservation Enforcement Officers’ Retirement Fund
Indiana Pension Plans

PERS FAQ's

How long do I need to work before I am vested in the PERF Hybrid Plan?

In general, you are fully vested in the Defined Benefit (DB) component of the PERF Hybrid Plan with 10 or more years of PERF-covered service. You must be fully vested to collect your DB benefit upon retirement. You become vested in your DC Annuity Savings Account immediately.

What is the PERF Hybrid retirement Age?

You qualify for full (unreduced) retirement benefits under PERF at age 65 or older with at least 10 years of service credit or between age 60 and 64 with at least 15 years of service credit.

Do I have to pay Federal Income Taxes on PERF Hybrid retirement benefit?

Yes – once you retire and start receiving your PERF Hybrid retirement benefits as income, those payments become subject to Federal taxes.

Will my PERF Hybrid retirement benefits reduce the Social Security Benefits I receive?

No. Your PERF Hybrid Benefit does not affect the amount of your Social Security retirement benefit.
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