Disability & Survivor Benefits

Disability Retirement

Disability retirement requires the completion of at least 5 years of creditable service and qualification for disability benefits by Social Security Administration and approval from the INPRS Board. The disability retirement commencement date is either:

• The month following Social Security disability onset.
• The later of onset or last day of pay, dependent upon your age and service credit at time of disability.
• The onset date must be within 30 days from last check date.

Disability Retirement Eligibility

To become eligible for a PERF Hybrid disability retirement:

• Your disability must have occurred while employed in a TRF/PERF Hybrid position.
• You must have at least 5 years of service credit in a PERF/TRF Hybrid position.
• Your disability must occur while employed in a PERF/TRF Hybrid position.
• Your disability must be confirmed by the Social Security Administration, and you are receiving salary, worker’s compensation benefits, or employer-provided income protection benefits (for example, long-term disability), or are on leave under FMLA as of the onset date established by the Social Security Administration (SSA).
• You may be receiving disability insurance payments from your employer.
• Your disability benefit calculation will only use the service credit accrued prior to your onset date.

Disability Benefits

At least once a year prior to you reaching age 65 or becoming eligible for an unreduced normal PERF Hybrid retirement based on age and total service, INPRS is required to confirm that you continue to remain eligible for Social Security disability benefits.  Disability retirement benefit options and calculations for the monthly pension benefit (DB) and the DC (including rolled over funds) are the same as those for any other retiree with the exceptions that:

1. You cannot choose the Social Security Integration option,
2. Generally, you will only get service credit for your work up to the onset date of your disability,
3. Your monthly pension benefit will not be reduced for early retirement, and
4. You will not be paid any less than $180 each month with the 5-year certain and life benefit or the actuarial equivalent with any other benefit election.

No creditable service will be granted during the period for which PERF disability benefits are paid. As a member who is a state employee, you are entitled to service credit for the time you receive short or long-term disability benefits under a State-of-Indiana-sponsored disability plan.

Survivor Benefits: Death While Not Retired

If your death occurs while you are still working or after you have separated from a PERF Hybrid covered position, and you have funds in your DC account and/or RSA, INPRS will disburse the funds based on the beneficiary information on file with INPRS. If no beneficiary is named, the funds go to your estate. Your spouse or dependent children may be entitled to your pension benefit if you die after June 30, 2018, and meet the following requirements:

1. Have at least 10 years of creditable service; and
2. Did not apply for retirement.

To qualify, your spouse must be married to you for at least 2 years. Your dependent children may be entitled to a benefit if you do not have a qualifying spouse. If you have not been married for at least 2 years and do not have dependent children at the time of your death, no survivor benefit would be paid. See IC 510.2-3-7.5, IC 5-10.2-3-7.6, and IC 5-10.2-3-8 for more information. Note: Marriages are recognized regardless of gender.

Survivor Benefits: Death in Retirement

Upon your death, INPRS will begin paying your retirement pension benefit to your designated survivor based on the options you chose at retirement. It is important that your survivor or someone who represents you contacts us to report your death. Here are the steps:

1. Your representative contacts INPRS to report your death.
2. INPRS reviews your account and sends the appropriate paperwork to your representative.
3. Your representative returns the completed paperwork to INPRS, along with your death certificate.
4. INPRS calculates what money is due to your survivors or your estate.

Applicable to all options for retirees with whom INPRS services the monthly annuity (prior to January 1, 2018):

• If you and your beneficiary(ies) die, and
• if you did not withdraw your DC and/or RSA funds at retirement, and
• if the total amount of payments received up to the date of death (including retirement and DC and/or RSA fund payments) is less than the balance of the DC and/or RSA funds at the time of retirement,

then either the survivor(s) or your estate will be paid the remaining DC and/or RSA funds balance. If a total distribution of the DC and/or RSA funds was chosen as the payment option, this guarantee does not apply. Also, if a partial distribution of the DC and/or RSA funds was chosen, this guarantee only applies to the remaining DC and/or RSA funds balance.

For additional information about disability and survivor benefits, you can find information in the PERF Hybrid handbook.  Disability information can be found starting on page 32. Death & beneficiaries/survivors information can be found starting on page 42.