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Indiana Public Retirement System

Indiana Public Retirement System (INPRS) > My Fund > Prosecuting Attorneys > Prosecuting Attorneys' Retirement Fund Member Handbook Prosecuting Attorneys' Retirement Fund Member Handbook

Applicability

Members of the Prosecuting Attorneys’ Retirement Fund (PARF) include:

  • Prosecuting attorneys,
  • Chief deputy prosecuting attorneys,
  • Deputy prosecuting attorneys appointed under IC 33-39-6-2 and paid from the state general fund, or
  • The executive director or the assistant executive director of the prosecuting attorneys council of Indiana on or after Jan. 1, 1990.

The Indiana Public Retirement System (INPRS) is the administrator of your benefit system. The Board of Trustees determines if you qualify for benefits under Indiana law.

Summary of PARF Benefits

PARF benefits are detailed in this handbook. If you are entitled to a PERF pension, your PARF pension benefits will be reduced. Your PARF is not reduced by annuity payments made to you from PERF.

Your PERF pension benefit may completely offset your monthly PARF benefit. If this happens, you will receive a one-time payment of your PARF contributions plus interest. The board sets the rate which is credited annually. If your PERF benefit completely offsets your PARF, you will not receive a monthly benefit from PARF.

To request a distribution of your contributions and earned interest, you can:

  • log in to your online member account, or
  • call (888) 286-3544 to speak with a customer service representative.

Contributions

You must contribute 6 percent of the state paid portion of your salary. The 6 percent contribution is required for up to 22 years of service. The amount will be withheld by the Auditor of the State. The State may elect to pay the contribution for you as a pickup under Section 414 (h) of the Internal Revenue Code.

The amount credited to your account must equal the value of your contributions plus interest valued the day before you apply for a distribution or the date of your death plus contributions received after that date. You must meet the following criteria:

  • you ended service with your employer before vesting,
  • you died before vesting, or
  • you are the survivor of a deceased member with no survivor pension payable.

The amount credited to your contribution account must equal the value of your contribution account balance plus interest valued the day before you apply for a distribution.

If the member has passed away, the amount credited must equal the value of the member’s contribution account on the date of death plus contributions received after that date.

No interest will be credited if you have less than 20 years of service and no activity after 10 years.

You may receive pay from the county and the state paid portion of your pay. You are not required to make contributions on any salary from the county. The county paid portion of your pay is not used in the benefit calculation.

Reminder: As a prosecuting attorney or a chief deputy prosecuting attorney you are also a member of PERF. The state pays your 3 percent ASA contributions on your behalf.

Withdrawal

If you end service in a covered position before you qualify for retirement benefits, you may take a distribution of your total contributions plus interest. You may not receive service credit prior to the date of your withdrawal. If you become a member again, you will have the chance to restore your service. You must pay back the amount of the withdrawal plus interest, at a rate set by the board.

Important Notice: In general, PARF cannot make distributions from the fund before you end service.

As a rule, benefits cannot begin until you end service with the employer who sponsors the plan. This rule is found in both Indiana pension law and federal law. Exceptions to this rule can be found in Indiana pension law, and in some instances in federal regulations.

For example:

  1. You qualify for a permissible in-service distribution from PARF if you are a vested (age and service eligible to receive a PARF benefit) member of PARF, you transfer to a position covered by the Judges’ Retirement System (JRS) and you have reached your normal retirement age for PARF.
  2. If you are a vested PARF member who ends service in a PARF-covered position and you take a position with a county as a deputy prosecuting attorney in a PERF-covered position, you qualify to choose a distribution from PARF because you have ended service with the state.

Benefits

Retirement Benefits

Your PARF pension benefit is reduced by your PERF pension if you would have retired from PERF on the same date as PARF. Your PARF pension benefit is not reduced by your PERF annuity payments. Your PARF benefit is calculated based upon your pay and service as of your retirement date. Your calculated PARF benefit is then reduced by your pension, if any, that would be payable to you from PERF if you had retired from PERF on the date of your retirement from PARF.

If your last day of PARF-covered service was before July 1, 2006, you must have 10 years of service to be vested for a retirement benefit.

Your retirement date must be:

  • after you end service,
  • on the first day of the month, and
  • no more than six months before the date the retirement application is received by the INPRS board.

Amount

If you qualify and apply for a benefit at age 65 or with the Rule of 85, you will receive an annual retirement benefit that equals your highest 12 months of salary (state salary only) you received before ending service times a percentage.

Table A

Years of Service Percentage
Less than 8 0
8 24%
9 27%
10 30%
11 33%
12 50%
13 51%
14 52%
15 53%
16 54%
17 55%
18 56%
19 57%
20 58%
21 59%
22 or more 60%

If you have at least eight full years of service plus a partial year of service, an additional percentage is calculated based on the number of months in the partial year.

If you end service in a PARF-covered position and then return to a PARF-covered position, you must work at least one full quarter upon re-employment to have the re-employment factor into your benefit calculation.

Early Retirement

If you choose to take early retirement, your pension benefits will remain at a reduced level even after you reach age 65.

If you are between the ages of 62 and 65, you may receive a reduced annual retirement benefit. The benefit will equal the amount payable to you if you were age 65. The benefit is reduced by 0.25 percent for each month that your age at retirement precedes your 65th birthday.

Your PARF benefit is reduced by the amount you would receive from your PERF pension if you had retired from PERF on the date you retire from PARF.

NOTE: The benefit payments to your PERF Annuity Savings Account (ASA) are not part of your pension benefits and do not reduce your PARF benefits.

Benefit Overpayment or Underpayment

INPRS is required by federal and state law to correct any errors in benefit calculations. If you receive an overpayment as a result of an error, INPRS must recover the overpayment. If you are underpaid, you will receive an additional payment from INPRS.

Disability Benefits

Eligibility

You may receive monthly benefits for the duration of your disability. You will need to provide satisfactory proof of your condition to the INPRS board.

Your disability is subject to confirmation at least once a year until you reach age 65 or until you meet the Rule of 85 (your age and years of service equal at least 85).

Amount

If you qualify for disability under PARF, your annual benefit will equal the annual salary (state portion only) you were receiving at the time you ended service, multiplied by a percentage.

Disability Benefits

Table B

Your Years of Service Percentage
0-12 50%
13 51%
14 52%
15 53%
16 54%
17 55%
18 56%
19 57%
20 58%
21 59%
22 or more 60%

If you have at least eight years of service plus a partial year of service, an additional percentage is calculated based on the number of months in the partial year. Disability benefits paid from PARF are reduced by pension benefits paid from PERF.

NOTE: The benefit payments to your PERF Annuity Savings Account (ASA) are not a part of your pension benefits and do not reduce your PARF benefits.

Survivor Benefits

You may elect to have available benefits paid to a surviving spouse or a dependent child or children.

Survivors of members are entitled to benefits if you die while:

  • receiving benefits, or
  • in service with at least 8 years of service in a covered position, or
  • permanently disabled, or
  • not in service in a covered position with at least 8 years of service, but were entitled to a future benefit.

Your designated survivors are entitled to receive the following benefits:

Spouse (IC 33-39-7-19): The surviving spouse is entitled to receive a benefit for life which is equal to the greater of:

  • an annual benefit of $12,000 payable in monthly installments, or
  • 50 percent of the monthly retirement benefit you were drawing at the time of death, or
  • 50 percent of the amount you would have been entitled to if you had retired and were receiving benefits on the date of death.

NOTE: The benefits to your surviving spouse are reduced by the amounts, if any, that are payable to the surviving spouse from your PERF fund as a result of your death. When calculating this reduction, your ASA benefit payments are not included.

Dependent Child (IC 33-39-7-20): If your spouse precedes you in death or if your spouse survives you but then dies, your dependent child is entitled to the benefit your spouse would have received (or was receiving). If you have more than one dependent child, the dependent children will share the benefit equally. Each dependent child is entitled to receive the benefit until the child turns 18 years of age, or during the entire period of the child’s physical or mental disability, whichever period is longer. The benefits paid to a dependent child will be reduced by any benefits paid from your PERF fund.

If you are an ASA Only plan member, your PARF benefit payable to a surviving spouse will be reduced by the PERF benefits payable under the joint and survivor option. (IC 5-10.2-4.7) The benefit will be calculated at 50 percent of your decreased retirement benefit, if you had not made an election to become a member of the ASA Only plan. (IC 5-10.3-12-20)

Survivors of members who were NOT Entitled to Pension Benefits:

A survivor or your estate may file a withdrawal application with the INPRS board. If you do not have pension benefits payable to your survivors, the total of your ASA contributions plus interest minus payments made to you, will be paid to:

  • your surviving spouse,
  • any dependent(s) if your spouse precedes you in death, or
  • your estate, if a spouse or dependent precede you in death.

You can log in to your online member account to manage your personal and pension benefit information. You will need your Social Security number (SSN) and passcode to get started. If you do not have your SSN or passcode, call our customer service center at (888) 286-3544.

Income Tax Concerns

Distribution Before Retirement

You may withdraw your 6 percent contributions and earned interest from the fund if you end service before you qualify for monthly pension benefits. The interest portion of your distribution will be taxable (as ordinary income) in the year you receive the distribution. An additional 10 percent penalty may be imposed on the taxable amount if you are under age 59½ at the time you end service. The 6 percent contributions withheld from your pay are not subject to further taxes. There are three payment choices and tax consequences associated with each:

  • Choice A: You may have the total amount of your PARF (less the mandatory withholding for federal income tax) paid directly to you.
  • Choice B: You may have all of the taxable portion of your PARF paid in the form of a DIRECT ROLLOVER to an Individual Retirement Account (IRA).  The taxable portion can also be paid to a Qualified Retirement Plan with provisions to accept the rollover on your behalf. The remaining non-taxable portion of your account is paid directly to you.
  • Choice C: (may be selected only if you want a partial rollover amount of at least $500) You may have part of the taxable portion of your PARF paid in the form of a DIRECT ROLLOVER to an IRA or a Qualified Retirement Plan with provisions to accept the rollover on your behalf. The remaining balance of your account is paid directly to you.

NOTE: If you choose to have your contributions paid directly to you and not a direct rollover to an IRA or a Qualified Retirement Plan, PARF must withhold 20 percent of all taxable portions. The 20 percent withholding is for federal income taxes.

If you elect Choice B or C, PARF will deliver checks to you. You will receive a check made payable to the trustee of the IRA or Qualified Retirement Plan. You will receive a separate check made payable to you representing your non-taxable portion and any taxable portion not directly rolled over. You will be responsible for delivering the check to the trustee of the IRA or Qualified Retirement Plan that you specified on your PARF form.

NOTE: There will be no income tax withholding on any amount directly rolled over.

CAUTION: You should consult the trustee of your qualified plan or IRA or your professional tax advisor if you need more information about the taxes on your distribution.

Taxation of Retirement Benefits

The taxable portion of your benefit will be calculated under the Simplified Method for Reporting Annuities in the IRS regulations. Once your total 6 percent contribution to the fund has been left out from income, all of your future benefits will be taxable. These tax rules are complex. If you need more tax help, you should contact your local IRS office or tax consultant.

The Administrative Review Process

Appeals of the Prosecutors' Fund 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 here.

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.