The PERF Retirement Plan has two distinct benefit components. Both components of the plan are funded by IU.
At retirement, PERF calculates lifetime income that is paid to the participant on a monthly basis. To qualify for this benefit a participant must have at least 10 years of PERF service. PERF uses the following formula to calculate the pension benefit:
The average of the 5 highest salary years X years of PERF Service X 1.1% = Annual pension payment
|Example of how the pension benefit is calculated|
|The five highest salary years for this example are:|
|The average is $31,000.|
|Years of PERF Service (number of years working in PERF covered position) = 30 years|
|$31,000 x 30 x 1.1% = $10,230 per year|
|In this example the PERF pension benefit would pay a lifetime income of $852.50 per month ($10,230/12=$852.50).|
Annuity Savings Account (ASA) Benefit
Three percent of wages are contributed to the ASA. At retirement the benefit is equal to: total contributions plus investment earnings.
|Wages x 3% = contribution|
|Contribution + investment earnings = total ASA benefit|
Contributions to the ASA are deposited into the investment choices made by the participant. There are eight investment options: Guaranteed Fund, Money Market Fund, Fixed Income Fund, Large Cap Equity Index Fund, Small/Mid Cap Equity Fund, International Equity Fund, Inflation-linked Fixed Income Fund, and Target Date Funds.
Annuity Savings Account Enhancement
In August 2010, enhancements were made to the ASA that allow participants to view updated values of accounts on a daily basis and requests for investment changes can be processed daily. (Prior to August 2010, updated values and changes to investments were done on a quarterly basis.)
For more information regarding the Pension and the ASA, contact PERF at 1-888-526-1687 or visit www.in.gov/perf. When calling PERF, a pension ID and passcode is required. If a participant does not know his/her pension ID and/or passcode, continue to hold on the line until a phone representative answers the call.
Whether retirement is 30 years away or only a few years away, an employee can increase retirement benefits by participating in IU-sponsored supplemental retirement plans. Contributing even small amounts can help increase retirement savings. IU sponsors two supplemental plans: the IU Tax Deferred Account and the IU Retirement Savings Plan. These plans offer the following tax advantages:
- Contributions are made on a pre-tax basis.
- Earnings grow tax deferred.
To learn more about the benefits of participating and to determine eligibility, visit hr.iu.edu/benefits/SRC-05. Contact one or both retirement vendors to learn more about investment options.
- Phone: 1-800-343-0860
- Website: www.mysavingsatwork.com/atwork/iu.htm (A customer ID and PIN is required to review investments on the website.)
- Phone: 1-800-842-2273
- Website: www.tiaa-cref.org/indiana
Employees currently making contributions to one or both of these plans can change the amount they contribute by visiting OneStart and following the instructions below. Employees who would like to set up an IU-sponsored supplemental account should visit the Benefits Change Connection at hr.iu.edu/bcc.
|Staff employees in positions with 50 percent FTE or greater receive the following nine paid holidays a year. Each holiday is considered to be eight hours for full-time Staff and is prorated by FTE for part-time Staff.|
|New Year's Day||Saturday, January 1 (observed Friday, December 31, 2010)|
|Martin Luther King Jr. Day||Monday, January 17|
|Campus Holiday||See below*|
|Memorial Day||Monday, May 30|
|Independence Day||Monday, July 4|
|Labor Day||Monday, September 5|
|Thanksgiving Day||Thursday, November 24|
|Friday after Thanksgiving||Friday, November 25|
|Christmas Day||Sunday, December 25 (observe Monday, December 26)|