INPRS increasing fees for PERF and TRF members
The Indiana Public Retirement System (INPRS) board voted last week to increase the monthly administrative fee for PERF and TRF members’ Defined Contribution (DC) plans from $3 to $3.75. The increase is based on higher management costs for the DC plan than original INPRS estimates accounted for the previous year. Fees cover record keeping and required Internal Revenue Service administrative oversight.
Retirees will not be affected, only members with active accounts.
The new fee scale will begin January 1, 2020 and will be deducted directly from members’ accounts with the first deduction on Feb. 1. All PERF and TRF members will be assessed the new fee as part of the hybrid Defined Benefit/Defined Contribution, or ASA, plans, as well as the TRF “My Choice” DC-only plan.
The fee only applies to the DC portion of retirement benefits, not the pension component. For members enrolled in the “My Choice” plan (an option recently offered for new hires), the deduction will come directly from the DC plan since there is no Defined Benefit component.
INPRS will also distribute information to all members in these plans. INPRS can provide members further information and answer retirement-related questions.