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Members with at least 10 years of service in a TRF- or PERF-covered position are considered vested in their monthly pension benefit.
A member’s retirement benefit consists of a monthly pension benefit and an Annuity Savings Account (ASA).
A member must be vested (has earned 10 years of service credit in a covered position) to become eligible for a monthly pension benefit. Once vested, the member may receive a monthly pension benefit once he or she meets certain age and service requirements.
To apply for a regular (unreduced) retirement benefit, a member must meet one of the following criteria:
If the member meets the age and service requirements above and chooses the A-1 payment option, the normal annual pension benefit is calculated by the following formula:
Average of Highest 5 Years of Annual Compensation x Total Years of Service x 1.1% (0.011)
Early retirement is available to members who are between ages 50 to 59 with 15 or more years of service credit. A member retiring early receives a percentage of the normal annual pension benefit, according to Table 2 (below). The percentage of the pension benefit you receive at retirement remains the same for your lifetime.
|Age||Percentage of Benefit|
You may begin receiving retirement benefits while continuing to work in a TRF-covered position if you are age 70 and have at least 20 years of creditable service. Please note that this election is irrevocable. A member who chooses to begin receiving monthly retirement benefits while working in a TRF-covered position cannot earn additional service credit toward retirement, but may continue to make contributions to their ASA. Members choosing this option may not withdraw their ASA balance until separated from service.
The amount of a member’s monthly pension benefit is based on the following factors:
A member may calculate his or her own benefit estimate by visiting the Online Calculators page.
Other methods for calculating an estimated monthly benefit include:
Log in to the TRF Interactive Web site to generate an estimate based on the information we have to date which includes projected final average salary and service information, as well as the latest information reported from the employer. Estimates of all payout options are provided.
From this Web site, calculate an estimate by entering the projected retirement date, final average salary, and years of service.
|Final average salary||$50,000.00||$|
|Benefit multiplier||x .011||x .011|
|Pension base amount||$ 550.00||$|
|Years of service||x 30||x|
|Annual retirement benefit||$16,500.00|
|Monthly benefit||/ 12||/ 12|
|Calculated as an A-1 option||$ 1,375.00||$|
From the INPRS Web site or TRF Interactive Web site, calculate an estimate by using information from the member’s latest Social Security Statement. To be eligible for this Social Security Integration payment option, the member must be less than 62 years of age at retirement and must enter the estimated Social Security* income.
At retirement, a member must select one of the six options included in this section for distribution of the member’s monthly pension benefit. Additionally, a member may choose the Social Security Integration option in conjunction with any of the six available options if the member is under the age of 62 at the time of retirement. Each option provides a lifetime monthly benefit paid to the member. Upon the death of the member, some options provide lump sum benefits to the beneficiary or estate. Others continue to receive a monthly survivor benefit payment. The amount of the monthly pension benefit received depends upon the member’s selected option.
*More information on Social Security benefits is available online at http://www.ssa.gov.
This pension option provides a lifetime benefit to the member. In the event the member dies before receiving five years of payments, the beneficiary(ies) receives the remainder of the five years of guaranteed pension payments in a lump sum.
This pension option provides a lifetime pension benefit to the member. Should you choose either the ASA 1 or ASA 7 option (see ASA section of this handbook), the A-2 comes with a minimum amount provision that ensures the member or beneficiary(ies) will receive a benefit at least equal to the ASA balance at the time of retirement. For details about the minimum amount provision, see the Minimum Amount Provision paragraph at the end of this section.
This pension option provides a lifetime benefit to the member. In the event the member dies before receiving five years of payments, the beneficiary(ies) will receive the remainder of the five years of guaranteed pension payments. The Annuity Savings Account (ASA) is reduced with each monthly benefit paid; if the member dies before reducing this balance to $0.00, the beneficiary will receive a single payment of the amount remaining. This pension option is only available with the ASA 1 or ASA 7 and RSA 1 (see Rollover Savings Account section of this handbook), if applicable. This option also includes a monthly annuitization of the member’s ASA. See the ASA section of this handbook for details.
Because survivor options (B-1, B-2, B-3) provide for a survivor benefit, the monthly pension benefit to the member is decreased.
This pension option provides a lifetime benefit to the member. This option guarantees that, upon the death of the member, the qualified survivor beneficiary will receive 100 percent of the member’s monthly benefit for the remainder of the survivor’s life. If your survivor beneficiary is not your spouse, is more than ten (10) years younger than you and you are considering this option, please contact INPRS. We will verify if your adjusted age difference is allowed under the Internal Revenue Code.
This pension option provides a lifetime benefit to the member. This option guarantees that, upon the death of the member, the designated survivor receives 66 2/3 percent of the member’s monthly benefit for the remainder of the survivor’s life.
This pension option provides a lifetime benefit to the member. This option guarantees that, upon the death of the member, the designated survivor receives 50 percent of the member’s monthly benefit for the remainder of the survivor’s life.
A member who retires between ages 50 and 62 may integrate the TRF monthly pension benefit with the member’s estimated Social Security benefits. This does not affect the amount of the benefit received from the Social Security Administration.
Before age 62, member benefits will be calculated:
The result is a larger monthly benefit payment before age 62.
After age 62, member benefits will equal:
The result may be a benefit payment that is greatly reduced or completely stopped. This is based on the amounts of the member’s estimated Social Security payment and TRF early retirement pension benefit.
The minimum amount provision is relevant to certain options for distribution of the monthly pension benefit. The minimum amount provision is in place to guarantee that a member or that member’s beneficiary will receive benefit payments that total at least the balance of the member’s Annuity Savings Account (ASA) at the time retirement. If a member does not receive this minimum amount in combined annuity and pension payments during his or her lifetime, the member’s beneficiary can claim the remaining amount due. For example, if a member has $100,000 in her ASA at the time of retirement, this member’s total benefits received (combined annuity and pension payments) must equal $100,000 or the member’s beneficiary(ies) may claim the difference.