PERF Hybrid Plan Member Handbook: After Retirement
A Family Matter
While all of these questions are not directly related to PERF membership and benefits, you will help assure peace of mind if you can answer “yes” to the following:
- Do you review your financial obligations and resources with your family?
- Does your family know what your PERF benefits are, and what will or will not 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, including contact numbers for your bank, PERF, and any insurance agents or companies? Are they organized so someone else can refer to 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 should the need arise?
Tax Forms and Withholding
Each year, PERF mails 1099-R forms to all benefit recipients by Jan. 31. The 1099-R form is much like a W2 form. It lists the total amount of benefits received during the year. It also shows the taxable and non-taxable amounts. PERF can also withhold Indiana and Federal taxes. County taxes may be withheld if you withhold state taxes. If you did not complete tax withholding forms at the time of your retirement, you may do so 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 election (married with 3 exemptions, single, etc.) before electing an additional flat, whole dollar amount. You may go online to download the forms, call, or write to request them.
Direct Deposit
Direct deposit is the preferred method to distribute benefit payments. That way your check will not be late, lost, or stolen. If you change banks, contact PERF for instructions. You may also start again at a new bank by completing a PERF direct deposit form.
If you change account numbers with the same bank, or if you change banks, contact PERF. Do NOT close your old account until you know funds are being deposited into your new account. It may take up to 60 days for the change to take effect.
Lost Check Replacement
If you are not using direct deposit and have not received your check by the 25th of the month, contact the PERF office. We can begin the replacement process no sooner than 10 days after the monthly benefit checks were mailed.
As soon as you contact PERF, you will be sent a lost check affidavit to sign, have notarized and return to the fund. PERF will then issue a replacement check. Using direct deposit eliminates the risk of lost checks.
Death of a Member
When a member dies, PERF must be notified to stop the member’s benefit payments and make payments to the appropriate beneficiaries. PERF needs a copy of the death certificate, including the retiree’s name, Social Security number and date of death. The family may keep the check received in the month the member dies, but must return any subsequent payments to the Fund. Please call, mail or fax a copy of the death certificate to PERF. Include your name, relationship to the member and telephone number, as we may need to contact you for further information.
Surviving Beneficiary
Once PERF has verified the retiree’s death, the surviving beneficiary will be notified of any necessary action that may be needed on their part in order to start receiving their benefit.
For this reason it is very important that you keep PERF informed of your beneficiary’s current address.
Declining or Passing Through a Benefit
Indiana law allows a beneficiary to decline a bequest if they feel it is in their interest to do so. The law also determines how the bequest will be handled if the beneficiary declines it. For more specific information on your situation, please contact PERF directly.
Changing Your Beneficiary after Retirement
Once you have named a beneficiary or beneficiaries on your Retirement Application and processing is completed, you can change that designation only in limited circumstances, depending on the option you chose. Be certain which option your benefit is being paid under, then check the chart below to find out the changes you are entitled to make.
| Your Retirement Option | Beneficiary Changes Available |
|---|---|
| Option 10, 61 or 71 at retirement | You may change your beneficiary up to five years from the effective date of your retirement. |
| Option 20 at any time | Beneficiary changes allowed under certain conditions. |
| Option 30, 40 or 50 at retirement | You cannot make a change as long as your beneficiary is alive (with the exceptions shown below):
|
| Option 30, 40 or 50 at retirement and your beneficiary dies first | You may name a new beneficiary, or change to retirement Option 20. |
For options 30, 40 and 50, you must furnish a copy of your spouse or beneficiary’s death certificate, and, in the case of marriage, a copy of your marriage license. PERF will also need the birth certificate of your new beneficiary. Please note that changing your beneficiary may have a significant impact on your monthly benefit.
Members may change their beneficiary or form of benefit after retirement due to divorce unless it is prohibited in the divorce decree or property settlement agreement. This event has been added to the limited number of circumstances under which a beneficiary may be changed after retirement.
Working after Retirement
You are entitled to go back to work after you retire and continue receiving PERF retirement benefits. If you are returning to a position covered by PERF, you must have a separation of employment for a period of at least 30 days. A PERF member’s application for retirement benefits is void if the member has an agreement, formal or informal, prior to his or her retirement, with a covered employer to become re-employed in a covered position. Your effective retirement date is the first day of the month for which you were paid retirement benefits. There is no earnings limitation for members who choose to return to work in a PERF-covered position after retirement.
Members who have retired from another Indiana public pension fund (such as the 1977 Police Officers’ and Firefighters’ Pension and Disability Fund) must also meet this 30-day separation from service requirement before taking a PERF-covered position with the same employer.
Receiving Monthly Benefits While Continuing to Work
If you are age 70 and have at least 20 years of creditable service, you can begin receiving retirement benefits while continuing to work in a PERF-covered position. A member who chooses to begin receiving monthly retirement benefits while working in a PERF-covered position cannot earn additional service credit toward retirement.
