You have worked diligently to save up for retirement for most, or perhaps all, of your working years. Now that the time has come, you have one last big decision to make: what to do with your defined contribution account.

Once you are eligible and ready for retirement, you’ll need to decide how to receive your defined contribution (DC) balance. You can choose to receive your DC as a lump sum payment, direct rollover, systematic withdrawal, or you may purchase an annuity.  If you have a rollover savings account (RSA), you can also choose to split your DC and RSA funds between a direct rollover or lump sum payment. If you’re not ready to decide, you can keep your DC balance with INPRS, but you will be subject to Required Minimum Distributions (RMDs) based on your age.

If you decide to collect the money in your DC account through a lump sum distribution, be aware of your plan’s payment timeline. While any delay in funds owed to you is never fun, knowing more about the lump sum distribution option can save you the frustration of feeling disappointed. If you’re considering this option, here is more information regarding the timeline for when you can expect your payment.

PERF & TRF Hybrid

When you retire, you have the option to take the funds in your DC account as a lump sum payment. You will receive your DC lump sum payment approximately 30 days after your retirement effective date. Your retirement effective date is the first day of the month following your last day at work.

For example, Freddy Frugal, whose last day at work was July 26, will have a retirement effective date of Aug. 1. Freddy will receive the DC lump sum payment on or near Aug. 30.

If you are at least 59 ½ years of age and eligible for retirement, you can request a DC lump sum distribution even if you are an active member who has not separated from employment. The request for distribution will be processed on the same day if submitted before 4 p.m.

If you are not retiring but leaving employment while eligible for a DC lump-sum distribution, you must wait 30 days after your termination date before making a distribution request.

For example, Thrifty Thelma’s last day at work was on July 1. Thelma will be eligible to request a DC lump sum distribution on or near July 30.

PERF & TRF My Choice

• If you are age 62 or older and eligible for retirement, you may withdraw funds without waiting 30 days after separating from employment.
• If you are not age 62, but fully vested, you must be completely separated from employment for 30 days before requesting a distribution.

Legislators Defined Contribution (DC)

You can withdraw your balance at any time following separation of employment with the General Assembly. If you are at least 59 ½ and meet specific requirements, you can take in-service distributions of your DC account.