DB Basics

As a member of a hybrid retirement plan, it is important to understand both sides of your retirement.

Do I have a Defined Benefit?

If you have a PERF or TRF Hybrid Plan or the Legislators' Defined Benefit Plan, you are entitled to a defined benefit upon retirement if you meet eligibility requirements.

Defined Benefit or Pension: What's the difference?

The simple answer is they are the same. Your defined benefit or pension is a guaranteed benefit for your lifetime once you become vested. That means that when you retire you will receive this amount for your lifetime. You can use the calculator on the right to estimate how much this benefit payment will be.

Vesting?

Vesting is the time when you, as an employee own 100% of your benefit. Vesting schedules differ based on which plan you are in, but an example would be a member of the Teachers' Retirement Fund Hybrid Plan. Members in this plan are fully vested when they earn 10 years of creditable service.

How to Estimate your Benefit

To use the calculator you need to have some basic information including how many years of service you have and an estimate of the average of your 5 highest annual salaries at the time of retirement. This calculator is strictly for demonstration purposes, so you can play with the numbers to see the impact on your estimated benefit.

The calculation of the benefit takes the average of the 5 highest salaries and multiplies that by your years of service. That number is then multiplied by 1.1%. This is the state-law mandated multiplier established by the Indiana General Assembly. That total is then divided by 12 months to give you your estimated monthly benefit payment at retirement. To receive a more accurate estimate please use the calculators found here.