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The Defined Benefit Plan (DBP) guarantees a lifetime monthly benefit to employees who qualify. This plan only applies to legislators who were members of the General Assembly on April 30, 1989, and chose to join. Employer contributions and their investment earnings fund the DBP. The following section explains your rights and responsibilities as a member of this plan.
You are vested in the DBP once you have earned 10 years of service credit as a member of the General Assembly. You qualify to receive the retirement benefit when you end service and meet the conditions for eligibility.
To receive full retirement benefits, you must not receive pay from the state for work in any capacity. You may not receive, nor have previously received, a reduced monthly benefit under this plan. If you qualify you are entitled to a lifetime monthly retirement benefit once you have ended service as a member of the General Assembly and:
The Plan provides a reduced monthly benefit for life to qualified members. If you wish to retire early, your pension benefit will be reduced using a formula based on your age. You may receive early retirement as long as you:
If you are receiving retirement benefits under the plan and you return to the General Assembly, your retirement benefits will stop. When you retire again or upon your death, the benefit will be recalculated on an actuarial basis taking into account:
If you wait to submit your retirement application, by law INPRS can only pay up to six months of retroactive benefits if you qualify to receive pension benefits.
If you meet the conditions for unreduced retirement benefits described above, your monthly retirement benefit is the lesser of:
When applying for benefits, make sure you complete the tax withholding forms.
INPRS is required by federal and state law to correct any errors in benefit calculations. If you receive an overpayment as a result of an error, INPRS must recover the overpayment. If you are underpaid, you will receive an additional payment from INPRS.
If you become disabled while in active service as a member of the General Assembly, you may receive a disability benefit if you have:
The disability benefit will continue as long as the disability exists. The benefit is calculated as though you qualify for a retirement benefit at age 65.
Benefits may not be provided for a disability resulting from a:
If you have completed 10 years of creditable service as a member of the General Assembly and then die while receiving benefits under the LRS, your surviving spouse is entitled to receive a survivor’s benefit. Your spouse is entitled to the benefit regardless of your age or if you had a permanent disability and were receiving benefits.
Your surviving spouse is entitled to 50 percent of:
If your spouse would have qualified for a benefit, but your spouse precedes you in death, upon your death your dependent child is entitled to the same benefit your spouse would have received.
If your surviving spouse dies while receiving the survivor benefit and a dependent child of both the surviving spouse and the deceased member survives, your dependent child will receive that same benefit. If there is more than one dependent child, the dependent children will share the monthly benefit equally. Each dependent child will receive this benefit until the age of 18 or during the entire period of the mental or physical disability using disability guidelines established by the Social Security Administration, whichever period is longer.
All of the monthly benefit payable from the DBP is taxable income. The plan will report the taxable income associated with your benefits to you each year on a Form 1099-R.
The tax rules are complex. If you need more information, you should obtain IRS Publication 575. If you need more help, you should contact your local IRS office or a tax consultant.
Appeals of the plan initial determination will be heard by an Administrative Law Judge in compliance with the Indiana Administrative Orders and Procedures Act IC 4-21.5.
To request administrative review, you must have rights as a party or a right to intervene. The steps of administrative review are here.
All parties will have the chance to present additional evidence during the appeal process. The Administrative Law Judge will submit findings to INPRS. INPRS will review the findings of the Administrative Law Judge and issue a final determination.
All parties will be informed of the final determination.
Every attempt has been made to verify that the information in this handbook is correct and up-to-date. Published content does not constitute legal advice. If a conflict arises between information contained in this publication and the law, the applicable law shall apply.