Human Resources

Non-Exempt Staff (excluding PAO & PAU) and Part-Time (formerly Temporary) employees appointed prior to July 1, 2013, who normally work at least 50% full-time equivalent upon their appointment and are expected to work at least 1000 hours or more a year, are eligible to participate in PERF.

Non-exempt: overtime-eligible.

PERF has two separate and distinct benefits, a pension benefit and a defined contribution account benefit.

1. Pension Benefit
   The full (unreduced) pension benefit is an annual benefit payable for life that is based on the following formula:
   Years of PERF Creditable Service X Final Average Salary X 1.1% = Annual Benefit for Life
2. Defined Contribution Account Benefit (formerly called the Annuity Savings Account)
   The  Defined Contribution (DC) account benefit is an employer contribution equal to 3% of a participant’s compensation per pay period that is contributed to an individual participant account at the end of each pay period by Indiana University.

Participants must have at least 10 years of PERF creditable service (or at least 5 years PERF creditable service before becoming eligible for the IU Retirement Plan) to have a vested right to the pension benefit.

Participants may invest their Defined Contribution (DC) account in one or more investment funds. The default investment is an age appropriate Target Retirement Date Fund.

Take Action

• Change or review investment options by calling PERF customer service center at 1-888-526-1687, or by logging onto www.in.gov/inprs to access your account
• Learn about PERF Investing 101

In-Service Withdrawals: As of January 1, 2021, participants who are at least 59½ years of age, and are age and service eligible for normal retirement, may take a distribution from their Defined Contribution (DC) account without separating service.

Millie Morgan Provision: If a participant has attained age 70 and has been credited with 20 or more years of PERF creditable service, the participant may begin receiving PERF pension while continuing to work at Indiana University. Beginning July 1, 2023, participants only need to attain age 65 with 20 or more years of PERF service to take advantage of this provision. Learn more about the Millie Morgan Retirement provision.

Non-Covered Employees: Participants that had PERF and are no long in a PERF- covered position, may be eligible to begin pension benefits. The participant must meet eligibility rules (i.e. Age 65 with 10 years of service, age 60 with 15 years of service, or meet the rule of 85).

For additional information contact IU Human Resources at or 812-856-1234.

Generally, a participant must terminate employment with Indiana University and all other State employers who are participating employers in PERF in order to be eligible to receive distribution of plan benefits. A participant's distribution options will differ depending on the following participant circumstances:

• The participant terminates employment and does not qualify for a pension benefit ("cash-out provision");
• The participant terminates employment with 5 or more years of PERF creditable service and is disabled ("disability provision"); or
• The participant terminates employment and qualifies for a full or reduced pension benefit ("retirement provision").

To be eligible receive a full (unreduced) pension benefit, a participant must satisfy the following conditions:

• The participant terminates employment or is in a “non-covered” position with IU;  and
• The participant must satisfy one of the following age and service conditions:
1. Attainment of age 65 with 10 or more years of PERF creditable service (or at least 5 years creditable service before becoming eligible for the IU Retirement Plan;
2. Attainment of age 60 with 15 or more years of PERF creditable service; or at least 10 years PERF covered service before switching to IU Retirement Plan.
3. Attainment of age 55 with the participant's age and total number of years of PERF creditable service equaling 85 or more.

For more information, review the PERF section of the Frequently Asked Questions or the Benefits After Separation Guide.

Required Minimum Distributions (RMD) at Age 72
When you turn age 72 (or 73 if your 72nd birthday is after December 31, 2022), the IRS requires that you begin taking distributions from certain retirement accounts, called a “required minimum distribution” or RMD. You can take this first withdrawal either in the year you turn 72 or wait until April 1 of the next year. If you're still working, you can defer RMDs until after you separate/retire from IU without penalties. For example:

• If you turn 72 in 2022, your first withdrawal must be taken by April 1, 2023. But you’ll also have to take a second withdrawal by December 31, 2023.
• If you turn 72 in 2023, your first withdrawal is due by April 1, 2025, since you turn 73 in 2024.

For questions about RMDs, contact Fidelity or the account vendor directly.