|
Ivy Tech is pleased to provide you with a retirement benefit
to supplement your retirement income. No one source of income by itself is likely
to be sufficient for your income needs at retirement. The income from your Ivy
Tech retirement plan will add to the income from Social Security, retirement
plan income from other employers, and any other investments you may hold. The
Public Employees' Retirement Fund of Indiana, known as PERF, is a retirement
program for certain employees of the State of Indiana. It provides retirement,
disability and survivor benefits to employees covered by the program.
| • |
Eligibility
|
| |
All benefits-eligible, support employees participate in PERF beginning
with their first day at the College. Under the PERF program, if you attain
10 or more years of service, you will be entitled to benefits when you
meet the age and service requirements for normal or early retirement.
PERF benefits are made up of two parts; an employer financed pension
benefit and a PERF Annuity Savings Account. The pension benefit is calculated
based on your age at retirement, your years of service in a PERF covered
position, your average annual compensation at retirement, and the retirement
option you select. At retirement, your PERF Annuity Savings Account may
be withdrawn or converted into a monthly benefit. Until you retire or
withdraw your Annuity Savings Account, you may select how to invest it
from among the investment options offered by PERF.
|
| • |
Contributions
|
| |
The College makes contributions
to PERF to fund your PERF pension benefit in an amount determined by the
State of Indiana. Also, an additional sum equal to 3% of your salary is
contributed by the College to PERF for you. This 3% is referred to as the "employee's contribution." |
| • |
Receiving Your Benefits
|
| |
— |
Normal retirement is at age 65,
with 10 years of service in the PERF program. |
| |
|
|
| |
— |
PERF members are eligible for early
retirement with full benefits at: |
| |
|
|
| |
|
| • |
age 60 if they have 15 or more years of creditable
service, or |
| • |
age 55 if the employee's age plus the number of years
of creditable service are equal to 85 or more (Rule of 85). |
|
| |
|
|
| |
— |
Early retirement with a reduced
pension benefit is available to members who are between the age of 50 and
60 with more than 15 years of creditable service but who do not qualify
for a normal retirement benefit. |
| |
|
|
| |
— |
If you leave the College with 10
years of service in PERF and you are not yet 65, you may leave your benefit
with PERF and begin receiving regular monthly benefits when you do reach
65. |
| |
|
|
| |
College employees who become disabled
while receiving pay in a PERF-covered position are eligible for PERF disability
benefits if they meet all three of the following requirements: |
| |
|
|
| |
|
| • |
officially terminate employment with the College, |
| • |
have five or more years of creditable service under
PERF, and |
| • |
qualify for Social Security disability benefits. |
|
| |
|
|
| |
If you qualify for PERF disability benefits, you will be entitled to
receive a monthly payment as long as you are disabled.
You may leave the College and PERF before you are entitled to retirement
or disability benefits. In that case, you may withdraw your "employee
contribution." You will also be allowed to withdraw any interest earned
on this amount.
If you had ten years of service under PERF and were entitled to a retirement
benefit, you will forfeit all rights as a PERF member when you withdraw
your "employee contribution." Should you become eligible to participate
in PERF with another employer, you may be able to reinstate your PERF
rights.
|
| • |
Benefit Payment Options
|
| |
When you wish to begin receiving
your benefit, you must submit an Application for Benefits. On this application,
you will choose the form of payment you wish to receive. All options will
pay a monthly benefit for the rest of your life. There are, however, various
options which allow you to tailor your benefit to your needs. |
| • |
Taxation of Benefits
|
| |
Consult your tax advisor and PERF
concerning the taxation of your benefits. The College does not presume to
give you tax advice. Refer to the PERF handbook or the PERF website at www.in.gov/perf
for a detailed outline of the taxable portion of your benefit and the conditions
under which you will be taxed. |
| |
|
| • |
Additional Information
|
| |
Additional information about PERF
benefits can be found in the PERF Member Handbook and online at www.in.gov/perf.
The above information is intended only as a general overview. Please consult
the handbook or contact PERF directly if you have specific questions about
your PERF benefits. |
| |
|
| | next | |
|
