PERF Hybrid Plan Member Handbook: After Retirement
A Family Matter
While all of these questions aren’t directly related to PERF membership and benefits, answering “yes” to the questions below may give you peace of mind.
- Do you review your financial obligations and resources with your family?
- Does your family know what your PERF benefits are, and what will or won’t change in the event of your death?
- Is your family aware of how your money is managed, such as bank accounts, investments, and insurance policies?
- Are your records complete with contact numbers for your bank, PERF, and any insurance agents or companies? Are they organized so someone else can read and find them?
- Are children or others you count on involved in money matters that affect them? Is someone you trust in a position to help manage your family’s finances if needed?
*After retirement, Social Security is the largest source of income for most elderly Americans. More information on Social Security benefits is available online here.
If you are one of the few who receives a check, it should arrive by the 25th of the month. Contact the PERF office about late checks. We can begin the replacement process 10 days after the monthly benefit checks were mailed.
Tax Forms and Withholding
By January 31 of each year, PERF mails 1099-R forms to all benefit recipients. The 1099-R form is like a W-2 form. It lists the total amount of benefits received during the year. It also shows the taxable and non-taxable amounts. PERF can withhold Indiana and Federal taxes. County taxes can be withheld if you withhold state taxes. If you didn’t complete tax withholding forms when you retired, you can do that at any time.
PERF can withhold Federal tax based upon your marital status and the number of exemptions claimed. Please note: you must enter a withholding choice (married with three exemptions, single, etc.) before choosing an additional flat, whole dollar amount. You can go online to download the forms, or call or write to request them.
Death of a Member
In the event of your death, a surviving family member should contact PERF. This allows us to stop your benefit payments and make payments to the named beneficiaries. PERF needs a copy of your death certificate with your name, Social Security number and date of death. The family may keep the check received in the month of your death. Any payments received after that time, must be returned. Please call and mail or fax a copy of the death certificate to PERF. Include your name, relationship to the deceased member and your telephone number, so we can contact you for further information.
PERF will verify the retiree’s death, then notify the surviving beneficiary of anything that he or she may need to do in order to start receiving their benefit.
For this reason it is very important that you let PERF know your beneficiary’s current address.
Declining or Passing Through a Benefit
Indiana law allows a beneficiary to decline a bequest or personal property. The law also decides how the bequest is handled if the beneficiary declines it. For more specific information on your situation, please contact PERF directly.
You may change your designated survivor and/or pension option at any time, for any reason.
- If your survivor is your spouse and he or she is living when you make the change, you must obtain his or her written consent.
- If you get divorced after you retire, your divorce decree must permit the change.
PERF will need the birth certificate of your new joint survivor beneficiary. Please note that changing your joint survivor beneficiary may have a big impact on your monthly benefit.
Working after Retirement
You can go back to work after you retire and still receive PERF retirement benefits. You must have ended service for at least 30 days if you return to a PERF-covered position. For example, if you stop working on May 18, your retirement date is June 1. You would qualify to re-employ in a PERF-covered position on or after June 18. If you return to a PERF-covered position within 30-days after ending service, your retirement is void and you will not qualify for pension benefits.
Your PERF application for retirement benefits is void if you have an agreement, formal or informal, prior to your retirement, with a covered employer to return to work in a covered position. Your effective retirement date is the first day of the month in which you received retirement benefits. There is no limit on earnings for retired members who return to work in a PERF-covered position. Service credit is no longer earned and no money is put into your ASA.
If you retired from another Indiana public pension fund (such as the 1977 Police Officers’ and Firefighters’ Pension and Disability Fund), you do not have a minimum period of separation before taking a PERF-covered position with the same employer if you are age 55 or older. If you are younger than 55, you must separate from service for 30 days before returning to work.
BENEFIT PAYMENT OR UNDERPAYMENT
Occasionally, errors occur in benefit calculation. If such an error is discovered, INPRS is required by federal and state law to correct errors at any time, including after you take a distribution of your account balance. If you receive an overpayment as a result of any error, INPRS is required by federal and state law to recover benefit overpayments. If you have an underpayment, you will receive an additional payment from INPRS.
RECEIVING MONTHLY BENEFITS WHILE CONTINUING TO WORK
At Age 70 with 20 years of Service
You can receive retirement benefits while still working in a PERF-covered position if you are 70 with at least 20 years of service. If you choose to receive monthly retirement benefits while working in a PERF-covered position, you can no longer earn service credit toward retirement. You can continue contributing to your ASA. If you choose this option, you can’t withdraw your continued contributions and earnings until you end service.
Special Provisions for Those in Elected Office
You may begin receiving retirement benefits while continuing to work in an eligible elected position if you:
- are in a qualified elected position covered by PERF (either by election or appointment),
- have turned age 55, and
- have 20 or more years of service.
You will receive a reduced benefit if your age and service do not equal 85 (Rule of 85) or meet regular retirement requirements. If you retire and receive benefits and you are later elected or appointed to a PERF-covered position, you may continue to receive benefits. If you continue your benefits, you will not earn any more service credit. You can choose to make ASA contributions but it is not required. If you stop retirement benefits, the mandatory 3 percent contribution must be made to your ASA. You will continue to earn service credit. You can’t withdraw your continued contributions and earnings until you end service.
Section Eight: Confidentiality of Fund Records