How you take your Indiana TRF pension, and your account

Pension options

• Five-Year Certain with Lifetime Guarantee (A-1). Monthly pension for life. If you die before 60 monthly payments, your beneficiary(ies) get the payment for the rest of the 60 months, or a lump sum equal to the present value of the remaining payments. Nothing after 60 months. This is the normal form the formula produces. Hybrid Handbook p. 35, §7.12; p. 30, Table 1
• Straight Life (no guarantee) (A-2). Monthly pension for life; nothing to anyone after your death. Hybrid Handbook p. 35, §7.12
• Joint with 100% Survivor Benefit (B-1). After your death the same monthly benefit is paid to your named survivor for life. One survivor only; restrictions if not your spouse. Hybrid Handbook p. 35, §7.12
• Joint with 66 2/3% Survivor Benefit (B-2). After your death two-thirds of the monthly benefit is paid to your named survivor for life. Hybrid Handbook p. 36, §7.12
• Joint with 50% Survivor Benefit (B-3). After your death 50% of the monthly benefit is paid to your named survivor for life. Hybrid Handbook p. 36, §7.12
• Social Security Integration (A-4). If you retire between ages 50 and 62 you may integrate the pension with your estimated age-62 Social Security benefit: a larger payment before 62, then a payment reduced (possibly to nothing) at 62. It doesn't change what Social Security pays. When receiving an unreduced benefit, the age-62 amount can't go below $185. Not available with disability retirement. Hybrid Handbook p. 31, Option 2 (Social Security Integration); p. 36, §7.12; p. 34 (not with disability)

The payment option chosen at retirement changes the monthly amount and decides whether a survivor is paid. Optional forms are calculated on an actuarially equivalent basis. INPRS does not publish the option factors; its online calculator (myINPRSretirement.org) shows amounts by option.

Changing it later

You may change your survivor or pension option after retirement without a life event, any number of times (a fee may apply after the first change), by paper form. You can't change to the five-year guaranteed option. The benefit is recalculated actuarially when INPRS gets the completed form. Hybrid Handbook pp. 39-40, §7.21

Your DC account: paid on top

Separately from the pension, you decide what to do with your DC account (the old ASA): take a lump sum, roll it over, split it, take systematic withdrawals, leave it invested, or buy a MetLife annuity ($5,000 minimum). Since 2018, INPRS no longer turns it into monthly payments for you. Hybrid Handbook p. 6, §1.6; p. 11-12, §3.1-3.2; p. 29, §7 NOTE; pp. 36-38, §7.14; TRF Hybrid At A Glance PDF p. 1

From the sources

• The pension options are: Five-Year Certain and Life (payments for life, and if you die before 60 payments your beneficiary gets the rest of the 60 or their present value); Straight Life (nothing after your death); and Joint with 100%, 66 2/3% or 50% to one survivor for life.Hybrid Handbook pp. 35-36, §7.12
• If you retire between 50 and 62, the Social Security Integration option pays more before 62 and less, possibly nothing, from 62, based on your estimated age-62 Social Security benefit. It doesn't change what Social Security pays you.Hybrid Handbook p. 31, Option 2; p. 36, §7.12
• INPRS doesn't publish the factors for these options. Its online calculator at myINPRSretirement.org shows your amount under each option.Hybrid Handbook pp. 30-31, §7.4 Option 1
• After you retire, you can change your survivor or option by paper form, without a life event. A fee may apply after the first change, and you can't switch into the five-year guarantee.Hybrid Handbook pp. 39-40, §7.21
• Your DC account is paid separately from the pension. Since 2018, INPRS doesn't turn it into monthly payments. You can take a lump sum, roll it over, split it, take systematic withdrawals, leave it invested, or buy a MetLife annuity ($5,000 minimum).Hybrid Handbook p. 29, §7 NOTE; pp. 36-38, §7.14

Questions

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