Employer Contribution Rate FAQs
TRF Hybrid Plan
On Friday, April 26th, the INPRS Board of Trustees approved an employer contribution rate of 6.5 percent for the TRF Hybrid and TRF My Choice plans effective Jan. 1 through Dec. 31, 2025. This new rate will be applied to all payroll dates that occur after Jan. 1, 2025. The rate for the TRF Hybrid plan in 2026 will be 7.1 percent from Jan. 1 through Dec. 31, 2026.
TRF My Choice Plan
On Friday, April 26th, the INPRS Board of Trustees approved an employer contribution rate of 6.5 percent for the TRF Hybrid and TRF My Choice plans effective Jan. 1, 2025, through Dec. 31, 2025. This new rate will be applied to all payroll dates that occur after Jan. 1, 2025. The normal cost will remain at 6.0 percent and the supplemental cost will be 0.5 percent.
From Jan. 1 through Dec. 31, 2026, the TRF My Choice contribution rate will be 7.1 percent with a breakdown of 6.3 percent normal cost and a supplemental cost of 0.8 percent.
PERF Hybrid Plan
The current composite rate is 11.2 percent and continues through June 30, 2026. As allowed by Senate Enrolled Act 549, this rate pertains to all PERF employers for fiscal years 2025 and 2026.
PERF My Choice Plan
The current PERF My Choice Plan contribution rate for both state of Indiana and local government employers is 11.2 percent and will remain at 11.2 percent through June 30, 2026.
The breakdown of the 2025 contribution rate for state of Indiana My Choice plan employers is 4.2 percent for normal cost and 7.0 percent for amortization of the unfunded liability effective July 1, 2024, through June 30, 2025. The breakdown of the My Choice state of Indiana rate for 2026 will be 4.4 percent for normal cost and 6.8 percent for amortization of the unfunded liability from July 1, 2025, to June 30, 2026.
For Local Government (political subdivisions), employers choose how much to contribute to employee accounts, from 0 percent up to the normal cost of the fund. Beginning Jan. 1, 2025, the normal cost is 4.2 percent through Dec. 31, 2025. The normal cost as of Jan. 1, 2026, will be 4.4 percent through Dec. 31.
In addition, political subdivisions must make a supplemental contribution toward the fund’s actuarial unfunded liability. The contribution rate is 7.0 percent through Dec. 31, 2025, and will be 6.8 percent through Dec. 31, 2026.
Please note that the breakdown of the rate can change each year.
'77 Fund
The INPRS Board of Trustees voted on Oct. 27, 2023, to set the 2025 rate at 20.30 percent from Jan 1 through Dec. 31, 2025. Per the board vote on Oct. 25, 2024, the rate from Jan. 1 through Dec. 31, 2026, will increase to 23.30 percent.
Excise, Gaming and Conservation Fund
The current employer contribution rate is 20.75 percent. In 2025, the rate will be 17.90 percent from Jan. 1 through Dec. 31 and remain the same in 2026 from Jan 1 to Dec. 31.
LE DC Plan
The current employer contribution rate is 14.2 percent and will remain the same from July 1, 2025, to June 30, 2026.
