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Employers must make yearly contributions to the Fund. Currently, the employer contribution is 19.7 percent of the base salary. The actuarial firm appointed and approved by the INPRS Board recommends this amount. As of July 1, 2011, INPRS may set a deadline for submitting contributions.
The employee interest rate is set at least yearly when crediting interest on employee contribution accounts. Active members are credited at least yearly based on the prior fiscal year end balance.
If you end service, die before vesting or if you are the survivor of a member, your account equals the value of your contributions plus interest valued the day before you apply for a distribution. In the event of your death, your account equals the value of your contributions on the date of your death plus contributions received after that date.
You will not receive interest credit if you have less than 20 years of service and your account has been inactive for more than 10 years.
You must contribute 6 percent of the base salary during your employment or for 32 years, whichever comes first. The 6 percent comes out of your paycheck each pay period. Your employer may choose to “pick up” all or part of your contribution.
If your employer “picks up” your portion, you will not be taxed on the 6 percent at that time. You will pay taxes on the “picked up” amount only when you withdraw your retirement benefits. See "Tax Consequences" for more information about taxation of benefits.
Section Three: Retirement Benefits