TRF Hybrid: two parts
- The pension (defined benefit). A monthly check for life, from the 1.1% formula. Employers and the State pay for it; you contribute nothing to it. This is what our calculator estimates. Hybrid Handbook p. 11, §3.2; p. 29, §7
- Your DC account (defined contribution). It used to be called the annuity savings account (ASA). It's paid on top of the pension.
What's in the DC account
The DC account (formerly ASA) holds the 3% mandatory contributions (paid by you, your employer, or shared; State, quasi-governmental and university employers pay it for you), any voluntary contributions (up to 10% more of pay, post-tax; pre-tax closed to new enrollment Jan. 1, 2018) and investment gains or losses. Employer contributions do not go into your DC account. You choose among 8 investment funds. Since Jan. 1, 2018 INPRS no longer annuitizes the DC; at retirement you can take a lump sum, roll it over, split it, take systematic withdrawals, defer it, or buy a MetLife annuity (minimum $5,000). 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
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
We don't project your DC balance. It depends on what goes in and how the investments do. Your quarterly statement shows it.
Pre-'96 or '96 Account
- Pre-1996 (Pre-'96) Account: Enrolled before July 1, 1995 and never changed employers, or enrolled before July 1, 1995 and changed employment after June 30, 2005. Excludes members employed by the State of Indiana and covered public universities. Employers do not contribute for Pre-'96 members. Annual State appropriations are placed in the Pension Stabilization Fund and, with General Fund money, pay benefits on a pay-as-you-go basis. Hybrid Handbook p. 8, §2.1 Pre-1996 (Pre '96) Fund; p. 11, §3.1
- 1996 ('96) Account: Joined TRF for the first time after June 30, 1995, or changed employers between June 30, 1995 and July 1, 2005. Every new member from July 1, 2005 is enrolled in the '96 Fund. Members employed by the State of Indiana and covered public universities are treated as '96 members. Employers contribute an actuarially determined flat rate, evaluated annually and approved by the INPRS Board, as a percentage of '96 Fund payroll. Hybrid Handbook p. 8, §2.1 1996 ('96) Fund; p. 11, §3.1
Both accounts use 1.1% x years of service x average of the highest 5 years, the same eligibility rules and the same payment options. TRF actuarial valuations (June 30, 2025), Appendix B Summary of Plan Provisions (Pre-'96 printed pp. 53-56; '96 printed pp. 56-59); INPRS ACFR FY2025 pp. 30-31
TRF Hybrid or TRF My Choice
A new employee has 60 days from the date of hire to choose the TRF Hybrid Plan or the TRF My Choice Plan. With no choice within 60 days (or if you leave within the 60 days), you are defaulted to TRF Hybrid. If your employer doesn't participate in My Choice, you are enrolled in TRF Hybrid. The election or default is irrevocable. Anyone in TRF Hybrid before July 1, 2019 stays in TRF Hybrid. Returning to a My Choice-covered position where you originally enrolled keeps you in your original plan. Hybrid Handbook p. 9, §2.3; My Choice Handbook p. 8, §2.1
| TRF Hybrid | TRF My Choice | |
|---|---|---|
| Monthly pension for life | Yes: 1.1% × years × highest-5-year average | No |
| Your 3% contribution | Goes into your DC account | Goes into your account (your school pays it) |
| Employer money | Pays for the pension; none goes into your account | A variable share into your account (6% through 2025, 6.3% from 2026) |
| Vesting | Pension after 10 years; your DC account right away | Your own money right away; employer share 20% a year, 100% at 5 years |
| Investment risk | INPRS invests for the pension; you choose for your DC account | You choose for the whole account |
Member contributions and rollovers are always 100% vested. The employer share vests by full years of participation (120 days in a year or 60 days in each of two years; partial years don't count). 100% vesting also at termination for normal retirement (age 62 with five years of participation) or line-of-duty death. Unvested employer money is forfeited when you separate with under 5 years. My Choice Handbook p. 6, §1.5 Normal Retirement Age; pp. 12-13, §3.5-3.7
These are the facts from INPRS's handbooks. Which plan suits you depends on your own situation; we don't recommend one.
A 2026 law lets some vested My Choice members switch to TRF Hybrid, if their employer allows it. So far only INPRS's summary of the law describes it, not a handbook.
We describe it as INPRS's summary does. We don't model the switch.
INPRS 2026 Legislative Updates (July 9, 2026), SEA 14Other INPRS funds
- Public Employees' Retirement Fund (PERF) Hybrid: Non-teaching public employees (and State employees not in TRF as of July 1, 2011) are in PERF Hybrid, also run by INPRS. Members with service in both TRF and PERF choose at retirement which fund pays the pension; vesting uses combined service and concurrent service counts once. Hybrid Handbook p. 8, §2.1; p. 15, PERF Hybrid Service Credit
- University alternate plans: Faculty and professional employees at Ball State University and Vincennes University may choose TRF '96 or an alternate university plan not administered by INPRS. INPRS ACFR FY2025 p. 31, TRF '96 DB
What the sources say
- A TRF Hybrid benefit has two parts: a monthly pension (the defined benefit, paid for by employers and the State) and your own defined contribution (DC) account, which used to be called the annuity savings account (ASA).Hybrid Handbook p. 5, §1.1
- Your DC account gets the 3% of pay the law requires. You, your employer, or both may pay it; State, quasi-governmental and university employers always pay it for you. You can add up to 10% more of your pay after tax. The balance goes up or down with the investments you choose from 8 funds.Hybrid Handbook pp. 11-12, §3.2; TRF Hybrid At A Glance PDF p. 1
- Employer contributions pay for the pension. They don't go into your DC account. You pay nothing toward the pension itself.Hybrid Handbook p. 11, §3.1; p. 29, §7
- Your pension is paid from either the Pre-'96 Account or the '96 Account. You're in Pre-'96 if you enrolled before July 1, 1995 and never changed employers, or changed employers only after June 30, 2005. You're in '96 if you first joined after June 30, 1995, if you changed employers between June 30, 1995 and July 1, 2005, or if you work for the State or a covered public university.Hybrid Handbook p. 8, §2.1
- The two accounts are funded differently. Pre-'96 is pay-as-you-go from State appropriations, and employers don't contribute. For '96, employers pay a yearly rate set by the INPRS Board. The benefit formula, the eligibility rules and the payment options are the same for both.Hybrid Handbook p. 11, §3.1; TRF actuarial valuations (June 30, 2025), Appendix B (Pre-'96 pp. 53-56; '96 pp. 56-59)
- If you're hired on or after July 1, 2019, you have 60 days to choose the TRF Hybrid Plan or the TRF My Choice: Retirement Savings Plan. If you don't choose, or you leave within the 60 days, you're placed in TRF Hybrid. The choice is permanent. If your employer doesn't offer My Choice, you're in TRF Hybrid.Hybrid Handbook p. 9, §2.3; My Choice Handbook p. 8, §2.1
- TRF My Choice is a defined contribution plan with no monthly pension. Your school pays your 3% contribution, and the employer adds a variable share: 6% through Dec. 31, 2025 and 6.3% for calendar 2026. You own the employer share 20% at a time for each full year of participation, reaching 100% at 5 years.My Choice Handbook pp. 11-13, §3.1-3.6; TRF My Choice At A Glance PDF p. 1
- In the handbook's example, someone who works 4 years and 10 months keeps 80% of the employer share. You also get 100% at termination for normal retirement (age 62 with 5 years of participation) or after a line-of-duty death. Your own contributions and rollovers are always 100% yours.My Choice Handbook pp. 12-13, §3.5-3.6.1
- Check with INPRSFrom July 1, 2026, active vested My Choice members whose employers allow it may switch to TRF Hybrid one time, and the switch is permanent. Hybrid members can also buy their My Choice years as Hybrid service.Passed after the 07/01/2025 handbooks; check the next handbook edition.INPRS 2026 Legislative Updates (July 9, 2026), SEA 14
Questions
Am I in the Pre-'96 or the '96 Account?
If you first joined TRF before July 1, 1995 and never changed employers (or changed only after June 30, 2005), Pre-'96. If you joined later, changed employers between June 30, 1995 and July 1, 2005, or work for the State or a covered university, '96. The pension formula is the same.
Can I switch from TRF Hybrid to My Choice?
No. The choice is made within 60 days of hire and is permanent. A 2026 law lets some vested My Choice members move to Hybrid, if their employer allows it.
What happens if I don't choose?
You're placed in TRF Hybrid.
Source: Teachers' Retirement Fund Hybrid Plan Member Handbook, Effective 07/01/2025, pp. 5, 6, 8, 9, 11, 11-12, 26, 28, 29, 36-38, 36. Also: My Choice Handbook pp. 5, 6, 8, 11, 11-13, 12-13, 13; TRF actuarial valuations (June 30, 2025) pp. 53-56; INPRS ACFR FY2025 pp. 30-31, 40; TRF Hybrid At A Glance p. PDF 1; TRF My Choice At A Glance p. PDF 1; INPRS 2026 Legislative Updates (July 9, 2026), SEA 14, My Choice Second Chance; INPRS 2026 Legislative Updates (July 9, 2026), SEA 14. Last reviewed .