August 29, 2013
Between ISTA's recent notification and local news coverage, we hope you have become aware of two changes the Indiana Public Employee Retirement System (INPRS) recently adopted and made effective July 1, 2014:
- A change in the long-term interest rate assumption (from 7.5% to 6.75%); and
- A change in how a member's Annuity Savings Account (ASA) funds will be annuitized (which will impact the overall monthly retirement benefit if a memer had planned to have INPRS annuitize ASA funds and then combine them with his or her pension).
ISTA is working to rescind or amend the change described in (2) concerning the annuitization of PERF and TRF member ASA funds. As you can imagine, explaining the issue and the possible fixes can become detailed. In an effort to simplify the issues, please review the attached document which takes the format of using INPRS’ FAQ responses with added ISTA commentary.
Please know that ISTA will continue to keep you informed about this important issue.