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Public Employees Retirement Fund

  • Defined Benefit
  • Defined Contribution (DC)

Retirement Plan Eligibility and Contribution Rates for Employees Paid Biweekly (Hired Before September 9, 2013)

  • Benefits-eligible service and support staff members hired before September 9, 2013 are covered by the Indiana Public Employees' Retirement Fund (PERF). University-funded contributions begin immediately upon employment. Newly hired bi-weekly paid police and firefighters participate in PERF and are not impacted by the change for bi-weekly paid service and support staff hired on or after September 9, 2013.

PERF Plan Description

The PERF Retirement Plan is made up of two parts:

  • Defined Benefit (pension)
  • Defined Contribution (DC) (Formerly called ASA)

The state of Indiana determines annually the level of Purdue's contribution required to fund the PERF pension. Of this percentage, three percent is allocated to the DC and the remaining portion is directed to the PERF Defined Benefit fund.

The Defined Benefit portion of your PERF pension is funded by Purdue. Defined Benefit contributions go into Purdue's employer account with PERF. If you leave PERF-covered service and do not become eligible to receive a retirement benefit, you cannot withdraw Defined Benefit funds.

The DC supplements your Defined Benefit pension at retirement. State law requires that three percent of your gross wages be contributed to fund the DC-Purdue funds this contribution for you. Staff who separate service from Purdue before becoming eligible to receive a retirement benefit may take a distribution of the DC.

Statements are available online from PERF showing the DC activity and balance. Call PERF if you need assistance in establishing a PIN to access your information. For a projection showing what the two portions of the PERF pension together will provide for you in retirement, employees can obtain a retirement estimate. A tool allowing individuals to estimate their retirement pension is available at the PERF website.

Funds contributed to the DC accumulate in the participant's name during the time of participation in PERF. Members are given the option of directing their DC investments to a number of options.

The variety of investment choices is intended to offer security while allowing participation in economic trends. More information on the investment options, including past performance and investment philosophy, is available at the PERF website.

Voluntary Retirement Savings Plans

All faculty and staff who receive a regular paycheck are eligible to contribute voluntarily to the Purdue University 403(b) Voluntary Retirement Savings plan and/or the Purdue University 457(b) Deferred Compensation plan. Contributions can be made to these plans by designating a percent of gross pay from 1 percent to 85 percent. Contributions to the plans can be started, increased or decreased at any time at www.netbenefits.com.

Vesting

Employees who separate from service with 10 years or more of credited service have achieved vested status. This entitles participants to a retirement pension benefit no later than age 65. The DC funds are separate from the vesting rules and will earn yearly interest until settled into a retirement benefit or until taken as a refund of the contributions and the accumulated interest. Upon separating from service if not vested, you will not be eligible for a pension unless you continue to accrue PERF service credit elsewhere.  In addition, you may be subject to a six month work requirement to re-instate your previous service.  Contact INPRS for more information on your personal situation.

If you terminate your employment and have not reached a vested status, you are entitled to withdraw a lump sum payment of the money in your savings account. Nonvested members who leave their monies in PERF will earn interest on those funds for only 10 years.

Employees who transition to a non-covered position at the University from a PERF-covered position, with 5 or more years of service under PERF, will receive up to an additional 5 years of service credited toward their eligibility service. Please note this credited service will not apply to the calculation used to figure the pension benefit amount.

Separation

Separation from employment prior to reaching vested status entitles the participant to withdraw a lump sum payment of the money in the DC. However, upon separating from service if not vested, you will not be eligible for a pension unless you continue to accrue PERF service credit elsewhere.  In addition, you may be subject to a six month work requirement to re-instate your previous service.  Contact INPRS for more information on your personal situation.

Nonvested members who leave their monies in PERF will generally continue to earn interest on those funds for a maximum of 10 years.

Benefit While Continuing to Work

  • Millie Morgan Rule
    Beginning July 1, 2023, active employees age 65 or older with 20 or more years of total service may retire under the Millie Morgan retirement option and receive their monthly pension benefit while working. Previously, the age requirement for this retirement option was age 70 or older.

  • PERF-covered to non-covered positions
    Employees who no longer participate in a PERF-covered position, but received five or more years of service under PERF prior to moving to the 403(b) Base retirement plan, may receive eligibility service credit for participation in the 403(b) Base retirement plan to qualify for a pension benefit. Upon meeting the age and years of service eligibility criteria for a full unreduced pension, the employee may begin to receive their pension while continuing to work.

Benefit at Retirement

The PERF pension is a defined benefit plan. This means that the pension is calculated by using a formula set by law. Normally participants are eligible for full retirement benefits at age 65 with 10 or more years of service in a PERF plan.

Individuals who have worked in a PERF-eligible position for 15 or more years are eligible for early retirement benefits.

Individuals who fulfill the requirements for either normal or early retirement under PERF are entitled to receive a monthly benefit for life. The monthly benefit amount is based on:

  • the average of the participant's highest five years of salary,
  • years of service,
  • age at the time of retirement, and
  • the annuity payout option you select

To keep the pension income in line with economic changes, the state of Indiana has traditionally passed legislation authorizing a cost-of-living increase each year for PERF recipients.

The DC component is in addition to the PERF pension. The amount of income this fund yields is based on the dollars accumulated, age at retirement and payout option selected. Both annuity and lump sum payments are available at retirement.

PERF Retirement Plan Resources

Access your INPRS PERF account online:

  • Log into your PERF account to view account balance information, update investment elections and beneficiary records, run personal retirement estimates, and more.
    • If you are unable to locate your PIN, you can still register on the self-service secure website. Click “Register Now,” select Social Security Number and date of birth, and follow the instructions including answering security questions to confirm your identity.
    • To request a PIN number, call INPRS at 844-GO-INPRS. The pin number will be emailed or sent via regular mail.

Run a Personal Estimate of Pension Benefits

  • Log in to your PERF account
    1. From the “Overview” tab on the account homepage, select “Application and Calculators”.
    2. Click on “PERF Benefit Estimate Calculator” to bring up the PERF calculator.
    3. Enter your information into the calculator fields then select “Calculate” to see the results.
      • The calculator will show your current years of PERF service time which may be adjusted for a future retirement date)
    4. Select “VIEW PDF” to open and save a PDF copy of the estimate.

*Note: Employees may contact INPRS to request a service review if PERF service credit is unaccounted for within the calculator.

PERF One-on-One Counseling Sessions, Webinars, and Educational Workshops

  • Employees are encouraged to schedule a virtual or in-person one-on-one PERF retirement counseling appointment to learn more about their PERF retirement program and to receive assistance completing a retirement application, if applicable. Individual appointments allow employees to receive a personalized PERF benefit estimate, explanation of PERF retirement options, step-by-step instructions for completing a retirement application, information about working after retirement, and answers to general PERF retirement questions
    • To schedule, from the “Workshops and Counseling” webpage, choose “Virtual Retirement Counseling Session (Phone or video)” to meet by phone or virtually.
    • For in-person appointments, select “retirement Counseling Session (In-Person)”. Once the appointment type is chosen, select “West Region – Jennifer Lowery”, enter a zip code (for in-person appointments only), choose an available date and time, then complete the remaining registration questions.

  • Register for a retirement benefit webinar or educational workshop – to receive help to budget for retirement, a review of benefit estimates, an explanation of retirement options, step-by-step instructions for completing the online retirement application, information about working after retirement, and answers to your PERF retirement questions