Vesting
Vested status is ten or more years of creditable (or combined creditable and eligibility) service under TRF/PERF Hybrid; the years need not be consecutive or with one employer. You are vested immediately in your DC account. Purchased service can't be used for vesting. Hybrid Handbook p. 14, §4.1 Vested Status; p. 19, §4.7
Your DC account
You may take or roll over the DC balance after you are completely separated for at least 30 days, or in service at age 59 1/2 or older if eligible for normal retirement. A vested member eligible for early retirement can withdraw the DC without forfeiting the pension (after more than 30 days' separation). An extra 10% federal tax may apply before 59 1/2; 20% federal withholding on taxable amounts paid to you. Hybrid Handbook p. 26, §6.1; p. 28, §6.4; p. 36, §7.14
Refunds and suspended membership
The pension has no member contributions to refund. If you leave before vesting you can take your DC account (3% contributions, voluntary contributions and gains/losses, plus service purchase payments unless vested) after 30 days' separation. Membership is suspended after 5 years with no service unless vested; the Board may suspend non-vested members with no service for 2 years and a DC balance of $1,000 or less. Since July 1, 2018 service credit resumes immediately if you return; members who took a distribution before then must work half a year to reinstate. Hybrid Handbook p. 9, §2.5; p. 23, §4.9; p. 26-27, §6.1-6.3
From the sources
- You become vested in the pension after 10 years of TRF and PERF service combined. With 10 years, you can leave and start your pension later, when you meet the age rules.Hybrid Handbook p. 14, §4.1; '96 Account actuarial valuation (June 30, 2025), p. 56
- There are no pension contributions to refund. When you leave, you can take your DC account (your 3%, any voluntary money and investment gains or losses) after 30 days apart from your employer. A 10% IRS penalty may apply before 59 1/2.Hybrid Handbook pp. 26-28, §6.1-6.4
- A vested member who is eligible for early retirement can take out the DC account and still keep the pension.Hybrid Handbook p. 36, §7.14
Questions
What do I get if I leave TRF before 10 years?
No pension, but your DC account is always yours: your 3% contributions, any voluntary money and investment gains or losses. You can take it 30 days after you separate.
If I'm vested and leave, do I lose my pension?
No. With 10 years you can start it later, once you meet the age rules. You can even take your DC account and keep the pension if you're eligible for early retirement.
Is there a penalty for taking my DC account?
The IRS may add a 10% tax before 59 1/2, and INPRS withholds 20% federal tax on taxable money paid to you. A rollover avoids both.
Source: Teachers' Retirement Fund Hybrid Plan Member Handbook, Effective 07/01/2025, pp. 9, 14, 19, 23, 26-27, 26, 26-28, 28, 36. Also: '96 Account actuarial valuation (June 30, 2025) p. 56. Last reviewed .