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The Defined Benefit Plan guarantees a lifetime monthly benefit to employees who meet eligibility requirements. This plan applies only to legislators who were members of the General Assembly on April 30, 1989, and chose to participate. Employer contributions and their investment earnings fund the Defined Benefit Plan. The following section explains your rights and responsibilities as a member of this plan.
You are vested in the Defined Benefit Plan once you have earned ten (10) years of service credit as a member of the General Assembly. You are eligible to receive the retirement benefit when you separate from service and meet the conditions for eligibility.
In order to receive full retirement benefits, members may not receive salary from the state for work in any capacity, and may not receive or may not have previously received a reduced monthly benefit under this plan. Members who meet the eligibility requirements are entitled to a lifetime monthly retirement benefit if they have terminated service as a member of the General Assembly and:
The Plan also provides a reduced monthly benefit for life to qualified members. If you wish to retire early, your pension benefit will be reduced by a formula based on your age if you are at least age fifty-five (55) as long as you:
If you are receiving retirement benefits under the Plan and you return to the General Assembly, your retirement benefits will stop. Upon your subsequent retirement or death, the benefit will be recalculated on an actuarial basis taking into account:
By law, if you are eligible to receive pension benefits and wait to submit a retirement application, INPRS can only pay up to six (6) months of retroactive benefits.
If you meet the conditions for unreduced retirement benefits described above, your monthly retirement benefit is the lesser of:
When applying for benefits, make sure you complete the tax withholding forms.
Occasionally, errors occur in benefit calculation. If such an error is discovered, INPRS is required by federal and state law to correct errors at any time. If you receive an overpayment as a result of any error, INPRS is required by federal and state law to recover benefit overpayments. If you have an underpayment, you will receive an additional payment from INPRS.
If you become disabled while in active service as a member of the General Assembly, you may receive a disability benefit if you:
The disability benefit will continue as long as the disability exists. The disability benefit is computed as though you were eligible for a retirement benefit at age sixty-five (65).
Benefits may not be provided for a disability resulting from an intentionally self-inflicted injury or attempted suicide while sane or insane, or resulting from the commission or attempted commission of a felony.
If you die while receiving benefits under the Legislators’ Retirement System, your surviving spouse is entitled to receive a survivor’s benefit if you had completed ten (10) years of creditable service as a member of the General Assembly, regardless of your age or had a permanent disability and were receiving benefits.
Your surviving spouse is entitled to fifty percent (50%) of (1) the amount you were receiving at the time of death, or (2) the amount of retirement benefit you would have been entitled to receive at age fifty-five (55) or your date of death, whichever is later. If your spouse would have qualified for a benefit, but your spouse does not survive you, upon your death your dependent child is entitled to the same benefit your spouse would have received.
If your surviving spouse dies while receiving the survivor benefit and a dependent child of both the surviving spouse and the deceased participant survives, your dependent child will receive that same benefit. If there is more than one dependent child, the dependent children will share the monthly benefit equally. Each dependent child will receive this benefit until the age of eighteen (18) or during the entire period of the mental or physical disability using disability guidelines established by the Social Security Administration, whichever period is longer.
All of the monthly benefit payable from the Defined Benefit plan is taxable income. The Plan will report the taxable income associated with your benefits to you each year on a Form 1099-R.
The taxation rules are complex, so if you need additional information, you should obtain IRS Publication 575; or, if you need further assistance, you should contact your local IRS office or a tax consultant.
Appeals of the Legislators' Retirement System initial determination will be heard by an Administrative Law Judge in compliance with the Indiana Administrative Orders and Procedures Act IC 4-21.5.
You must have standing as a party or a right to intervention to request administrative review. The steps of administrative review are http://www.in.gov/inprs/adminreview.htm
The appeal process will allow for additional evidence to be presented by all parties. The Administrative Law Judge will submit findings to INPRS. INPRS will review the findings of the Administrative Law Judge and issue a final determination.
All parties will be advised of the final determination.
Every attempt has been made to verify that the information in this handbook is correct and up-to-date. Published content does not constitute legal advice. If a conflict arises between information contained in this publication and the law, the applicable law shall apply.