On Dec. 16, 2011, the Indiana Public Retirement System (INPRS) Board of Trustees, which oversees the Indiana State Teachers’ Retirement Fund (TRF), approved the employer contribution rate for fiscal year 2013. The current rate of 7.5 percent will remain the same for the fiscal year beginning July 1, 2012 through June 30, 2013.
The TRF employer contribution rate is determined by investment performance over a rolling four-year period as well as the demographics of fund members, such as age, salary, and years of service.
The fund’s Pre-1996 Account is a pay-as-you-go system and is funded from the State of Indiana General Fund. The actuarially-funded TRF 1996 Account is in solid condition as it continues to recover from the market collapse of 2008. The 1996 Account’s unfunded actuarial accrued liability was $332 million at the end of the fiscal year while funded status was 91.7 percent. To add some stability to employer contribution rates, market gains and losses are phased-in over a four-year period meaning investment losses experienced in fiscal years 2008 and 2009 are reflected in the employer contribution rates noted above.
More details regarding employer contribution rates may be found online at http://www.in.gov/inprs/ercontributionrates.htm in a list of Frequently Asked Questions (FAQs).
Please remember that starting with your payroll dates that occur on or after April 1, 2012, employers will be required to submit their reports and payments on a payroll basis through our new Employer Reporting and Maintenance (ERM) system. For your convenience, a Web site specific to this initiative has been created. Please take the time to visit the Web site at er.inprs.in.gov for updates on ERM progress.
If you have questions, please contact our customer service center toll-free at (888) 286-3544. Our office hours are Monday through Friday from 8 a.m. to 5 p.m. (EST).
Indiana Public Retirement System
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