There are no 13th checks or cost of living adjustments (COLAs) planned for PERF or TRF Hybrid retirees for 2023.
COLAs and 13th checks are granted by the Indiana General Assembly on an ad hoc basis and are funded by the supplemental reserve account.
There will be COLAs for the following plan retirees in accordance with their plan rules.
1977 Fund
Retired 1977 Fund members will receive a 3% COLA effective July 1, 2023. This includes all retired, disabled, and surviving beneficiaries of members of the fund for benefits that began on or before Dec. 31, 2022.
The COLA for the 1977 Fund is linked to the Consumer Price Index (CPI). This methodology was approved by the INPRS board.
Judges’ Retirement System
Judges’ plan members will receive a 7.8% COLA effective July 1, 2023.
The COLA benefit increase of 7.8% is based upon the state-mandated increase to the salary for actively employed judges and magistrates in positions covered by the Judges’ Retirement System.
How much is your family's financial security worth to you?
Thinking about death and what that’ll mean for your loved ones can feel morbid, even scary. However unpleasant thinking about it can be, there are simple steps you can take to ensure their financial needs are met.
When you completed your retirement application from INPRS, you may have selected a payment option that allows a survivor benefit. If you made this choice, rest assured knowing that your survivor can count on receiving your benefit according to the survivor benefit option you selected.
Sometimes, INPRS retirees need to change their named survivor. Making this change is simple, but it does require a recalculation of your current benefits, which may be reduced, especially if your new survivor is much younger than your current named survivor. To change your post-retirement beneficiary, complete the form here.
Take time to review the beneficiaries listed on all your financial accounts. Your retirement accounts, like those with INPRS, investment accounts like your 457(b), 401(a), and those from prior employers provide an option for a named beneficiary. Many deposit accounts, like checking and savings accounts, also offer the option to name beneficiaries. Making these updates now can reduce complexities for your loved ones after you pass, so make time for this important change.
Choose whoever you like, or even name a trust or estate. With INPRS, you can assign whole percentages to both primary and contingent beneficiaries, giving you flexibility for your beneficiary needs.
Log on to your account at www.myINPRSretirement.org to update your beneficiaries today. When you do, you can feel confident that your accounts are up to date with your wishes.
Still have a defined contribution balance with INPRS?
The SECURE Act 2.0 established new rules for required minimum distributions or RMDs that every retiree should be familiar with. An RMD is pretty much what it sounds like—a required distribution from your investment account.
The amount of your RMD will be calculated based on IRS rules specific to your account balance as of Dec. 31 of the prior year and the IRS’s life expectancy factor, found in Publication 590-B. As of Jan. 2023, individuals may delay distributions from their applicable retirement plans until April 1 of the year after they reach age 73. This change advances the distribution age from age 72.
If you are already taking RMDs, you cannot discontinue them in favor of the current rules.
The RMD threshold is scheduled to increase to age 75 on Jan. 1, 2033, making planning your RMD strategy easier than ever. Learn more about RMDs on the IRS website at https://bit.ly/3J12QRM or speak with a trusted financial advisor.
Legislative Updates
Legislative updates effective July 1, 2023, are available here.