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  Introduction to the Handbook
  Message from the President
  About Your College
  Ivy Tech Foundation
  Regional Administrative Centers
  Personnel Policies and Procedures
  Time Off
  Health and Dental Care Programs
  Other Core Benefit Programs
  Retirement Programs
  PERF Retirement Plan
  Receiving Your Benefits
  Benefit Payment Options
  Taxation of Benefits
  Additional Information
  Ivy Tech Retirement Annuity (RA) Plan
  Tax-Deferred Voluntary Retirement Plans
  Social Security
  Other Retiree Programs

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Full-Time Employee Handbook
Retirement Programs

Ivy Tech is pleased to provide you with a retirement benefit to supplement your retirement income. No one source of income by itself is likely to be sufficient for your retirement needs at retirement. The income from your PERF Retirement Plan will add to the income you will receive from Social Security, retirement plan income from other employers, and any other investments you may hold.
The Public Employees' Retirement Fund of Indiana, known as PERF, is a retirement program for certain employees of the State of Indiana and its affiliated organizations such as Ivy Tech. Full-time, benefits-eligible support staff  members at Ivy Tech participate in PERF.  It provides retirement, disability and survivor benefits to employees covered by the program. The PERF Retirement Plan is made up of two parts:

  • The Defined Benefit (pension) and
  • The Annuity Savings Account (defined contribution)

The State of Indiana determines annually the level of Ivy Tech's contribution required to fund the PERF Defined Benefit pension fund. In addition to the pension fund contributions, an amount equivalent to three percent of your annual salary must be contributed to the PERF Annuity Savings Account.

The Defined Benefit portion of your PERF retirement plan is funded by Ivy Tech. Defined Benefit contributions go into Ivy Tech’s employer account with PERF. If you leave PERF-covered employment and do not become vested, you cannot withdraw Defined Benefit funds.

The Annuity Savings Account supplements your Defined Benefit pension upon retirement. State law requires that an amount equivalent to three percent of your gross wages be contributed to fund your Annuity Savings Account – Ivy Tech funds this contribution for you. Participating staff members who terminate employment with the College before becoming vested, may take a distribution of the Annuity Savings Account. 

Quarterly statements are distributed from PERF showing the Annuity Savings Account activity and balance. The Defined Benefit portion of your pension plan is not reflected on this statement. However, an annual statement is provided by PERF that reflects both the Annuity Savings and the Defined Benefit Pension accounts. 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 combined retirement income is available by clicking on this link: PERF Retirement Benefit Calculator.

Funds contributed to the Annuity Savings Account accumulate in the participant's name during the time or participation in PERF. You have the option of directing your annuity savings account 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 on the PERF website,



All full-time, benefits-eligible support staff members participate in PERF beginning with their first day of eligible employment at the College. Under the PERF program, if you attain 10 or more years of service, you will be entitled to benefits when you meet the age and service requirements for normal or early retirement.



The College makes contributions to PERF to fund your PERF pension benefit in an amount determined annually by the State of Indiana. Also, an additional sum equal to 3% of your salary is contributed by the College to PERF to fund your Annuity Savings Account. This 3% is sometimes referred to as the "employee's contribution."

Receiving Your Benefits

  Normal retirement is at age 65, with 10 years of service in the PERF program.
  PERF members are eligible for early retirement with full benefits at:
age 60 if they have 15 or more years of creditable service, or
age 55 if the employee's age plus the number of years of creditable service are equal to 85 or more (Rule of 85).
  Early retirement with a reduced pension benefit is available to members who are between the age of 50 and 60 with more than 15 years of creditable service but who do not qualify for a normal retirement benefit.
  If you leave the College with 10 years of service in PERF and you are not yet 65, you may leave your benefit with PERF and begin receiving regular monthly benefits when you do reach 65.
  College employees who become disabled while receiving pay in a PERF-covered position are eligible for PERF disability benefits if they meet all three of the following requirements:
officially terminate employment with the College,
have five or more years of creditable service under PERF, and
qualify for Social Security disability benefits.

If you qualify for PERF disability benefits, you will be entitled to receive a monthly payment as long as you are disabled.

You may leave the College and PERF before you are entitled to retirement or disability benefits. In that case, you may withdraw the funds in your Annuity Savings Account. You will also be allowed to withdraw any interest earned on this amount.

If you had ten years of service under PERF and were entitled to a retirement benefit, you will forfeit all rights as a PERF member when you withdraw funds from your Annuity Savings Account. Should you become eligible to participate in PERF with another employer, you may be able to reinstate your PERF rights.

Benefit Payment Options


When you wish to begin receiving your benefit, you must submit an Application for Benefits. On this application, you will choose the form of payment you wish to receive. All options will pay a monthly benefit for the rest of your life. There are, however, various options which allow you to tailor your benefit to your needs.

Taxation of Benefits

  Consult your tax advisor and PERF concerning the taxation of your benefits. The College does not presume to give you tax advice. Refer to the PERF handbook or the PERF website at for a detailed outline of the taxable portion of your benefit and the conditions under which you will be taxed.

Additional Information


Additional information about PERF benefits can be found in the PERF Member Handbook and online at The above information is intended only as a general overview. Please consult the handbook or contact PERF directly if you have specific questions about your PERF benefits.

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This is the most current version of the handbook.
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