- Defined Benefit
) Savings Account Retirement Plan
for Bi-Weekly Paid Employees (Hired Before September 9, 2013) Administrative and service staff eligible for benefits and operational/technical positions
hired before September 9
- 2013 are covered by the Indiana Public Employees Retirement Fund (PERF). University-funded contributions begin immediately after employment. Newly hired non-exempt police and firefighters participate in PERF and are not affected by the September 2013 change to other non-exempt personnel.
PERF Plan Description
retirement plan is made up of two parts:
- Defined Benefit (Pension) and
- ASA The
State of Indiana annually determines the level of Purdue’s contribution required to fund the PERF Pension. Of this percentage, three percent is allocated to the ASA and the remaining portion goes to the PERF defined benefit fund.
The Defined Benefit portion of your PERF pension is funded by Purdue. Defined benefit contributions go to Purdue’s employer account with PERF. If you leave PERF-covered service and are not eligible to receive a retirement benefit, you cannot withdraw defined benefit funds.
The ASA supplements your Defined Benefit pension upon retirement. State law requires that three percent of your gross salary be contributed to fund ASA-Purdue funds from this contribution for you. Staff who separate from Purdue’s service before being eligible to receive a retirement benefit can take an ASA distribution.
Statements are available online at PERF showing ASA activity and balance. Call PERF if you need help setting up a PIN to access your information. For a projection showing what the two portions of the PERF pension together will provide you in retirement, employees can get a retirement estimate. A tool that allows people to estimate their retirement pension is available on the PERF website.
Funds contributed to the ASA are accumulated in the name of the participant during the time of participation in PERF. Members have the option to direct their ASA investments to a number of options.
The variety of investment options is intended to offer security while allowing participation in economic trends. More information on investment options, including past performance and investment philosophy, is available on the PERF website.
faculty and staff who receive a regular paycheck are eligible to voluntarily contribute to Purdue University’s 403(b) voluntary retirement savings plan and/or Purdue University’s 457(b) deferred compensation plan. Contributions can be made to these plans by designating a percentage of gross salary from 1 percent to 85 percent. Contributions to plans can be started, increased or decreased at any time www.netbenefits.com.
who separate from service with 10 or more years of accredited service have attained grandfathered status. This entitles participants to a retirement pension benefit at the latest at the age of 65. ASA funds are separate from the acquisition rules and will accrue annual interest until they are settled into a retirement benefit or until they are taken as repayment of accrued contributions and interest. Applying for reimbursement before you are eligible for a retirement benefit may result in the loss of your rights to a pension through the PERF program. Contact PERF for any restrictions that apply to your situation.
If you end your employment and have not reached grandfathered status, you have the right to withdraw a lump sum of money into your savings account. Non-acquired members who leave their money in PERF will earn interest on those funds for only 10 years.
from employment before attaining acquisition status entitles the participant to withdraw a lump sum of money in the ASA. However, applying for a refund before you are eligible for a retirement benefit may result in the loss of your rights to a pension through the PERF program. Contact PERF for any restrictions that apply to your situation.
Non-acquired members who leave their money in PERF will generally continue to earn interest on those funds for up to 10 years.
The PERF pension is a defined benefit plan. This means that the pension is calculated using a formula established by law. Typically, 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 years or more are eligible for early retirement benefits.
Individuals who qualify for 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 five years of highest salary, years
- retirement, and
- annuity payment option you select
of service, age at
To keep 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 ASA component is in addition to the PERF pension. The amount of income this fund produces is based on accumulated dollars, retirement age, and the payment option selected. Both annuity and lump sum payments are available at the time of retirement.