Note: This message is displayed if (1) your browser is not standards-compliant or (2) you have you disabled CSS. Read our Policies for more information.
Employers are required to contribute to the 1977 Fund an annual amount, currently 19.7 percent (19.7%) of base salary. This amount is recommended by the actuarial firm which is appointed and approved by the INPRS board. Effective July 1, 2011, the Indiana Public Retirement System (INPRS) has the discretion to set a deadline for submission of contributions.
When crediting interest on employee contribution accounts, the interest rate will be set at least annually. For active members, the interest will be credited at least once annually on the prior fiscal year end balance. For a member separated from service, members who die before vesting, and for survivors, the amount credited to the member’s contribution account must be the value of the member’s contribution account plus interest valued the day before the member applies for a distribution or the date of death of the member plus contributions received after that date. For members with less than twenty (20) years of service and no activity after ten (10) years, no amount of interest will be credited.
You must also contribute during the period of employment or for thirty-two (32) years, whichever is shorter, an amount equal to six percent (6%) of the base salary. This six percent (6%) is deducted each pay period from your salary. However, the employer may elect to “pick up” all or part of the employee contribution.
If the employer “picks up” the contributions, the 6 percent contributions are not taxable to the employee as they are made. This means that the member will have to pay taxes on the “picked up” contributions when retirement benefits are paid to the member. See "Tax Consequences" for more information about taxation of benefits.
Section Three: Retirement Benefits