A question we’re commonly asked by teachers is how does the Indiana teacher pension system work? (Check out our detailed Indiana Teacher Pension 2018 Update)
It’s a very important question because your pension is one of the most important factors in your retirement plan. In Indiana, the system is administered by the Indiana Public Retirement System, or INPRS (pronounced as “inpers”) for short.
It‘s made up of two parts, a monthly payment that you receive during retirement, and a defined contribution account that’s similar to your 403(b) or IRA. When you retire, you’ll need to make several important choices that will affect how much you’ll receive from each part and how much control you’ll have over important aspects like taxes and survivor benefits.
We’ve found many teachers tend to overestimate the benefit they’ll receive from INPRS and aren’t sure what to do about the choices they’ll be asked to make. That’s why it’s important to seek out the advice of a Certified Financial Planner who understands the process and can help you figure out how your choices fit into your overall retirement plan.
If you’re evaluating your options for retirement or would just like to learn more, we’re here to help.