I’ve heard the Public Employees’ Retirement Fund (PERF) and the Teachers’ Retirement Fund (TRF) have merged the administration of funds. Is that true? Yes. Legislation passed in 2010 began this process.
What was the reason behind the merging of the administration of the funds? By bringing together the administration of the funds, we become more efficient. We eliminate the duplication of efforts and by pooling assets together for investment purposes, we save on investment management fees.
What will the new name be as a result of the merging of the administration of funds? The official name will be the Indiana Public Retirement System (INPRS).
When will the merging of the administration of funds become effective? It becomes effective July 1, 2011.
Will the assets of both funds be combined? No. Each retirement fund will continue as a separate fund under the oversight of INPRS’ nine-member board of trustees.
What funds will INPRS administer and manage? INPRS will administer and manage seven retirement plans including the Public Employees’ Retirement Fund, the Teachers’ Retirement Fund, the Judges’ Retirement System, the Prosecuting Attorneys’ Retirement Fund, the 1977 Police Officers’ and Firefighters’ Pension and Disability Fund, the Legislators’ Retirement System and the State Excise Police, Gaming Agent, Gaming Control Officer and Conservation Enforcement Officers’ Retirement Plan. INPRS will also oversee three non-retirement funds including the Pension Relief Fund, the Public Safety Officers’ Special Death Benefit Fund and the State Employees’ Death Benefit Fund.
Will the merging of the administration of funds affect the funded status of any of the plans? No. Individual funded status for each plan will continue to be calculated separately.
Will the funds maintain two separate board of trustees? No. A nine-member board of trustees will oversee the funds.
What is the projected cost savings for the funds? Collaboration between PERF and TRF funds will save $5.9 million this year, more than $100 million in years to come.
What is the combined membership total of both funds? Combined totals of both funds equal nearly 500,000 members.
Who will serve on the combined nine-member INPRS Board of Trustees? a. One trustee must have experience in economics, finance, or investments. b. One trustee must have experience in executive management or benefits administration. c. The director of the Budget Agency, or his designee, shall serve on the board. d. One trustee must be an active or retired member of the 1977 Fund. e. Two trustees must be TRF members with at least 10 years of creditable service. f. One trustee must be a member of PERF with at least 10 years of creditable service. g. The Auditor of State, or his designee, shall serve on the board. h. The Treasurer of State, or his designee, shall serve on the board.
Who can I contact for additional information regarding the merging of the administration of funds? You can contact our office at (888) 526-1687 (PERF) or (888) 286-3544 (TRF). We are available Monday through Friday from 8 a.m. to 8 p.m. EST.