Indiana Teacher Retirement: A Comprehensive Calculation Guide

The Indiana Teacher's Retirement Fund (TRF) provides lifetime retirement benefits to teachers employed at least 10 years by the public school system. To retire, teachers must either be at least 65 years old with 10 years of service or be at least 60 years old with 15 years of service. All teachers in Indiana must contribute three percent of each month's gross salary to their retirement fund.

Step 1

Add up your highest five years' salaries. Usually, your highest five years will be your last five years.

Step 2

Divide the total of the five highest year's salaried by five to get an average.

Step 3

Multiply your highest salary average by your years of service; then, multiply that amount by 1.1 percent (0.011).

Step 4

Multiply the normal benefit obtained in step 3 by the percentage associated with your age. If you retire before the age of 60, you will only receive a percentage of the normal benefit amount. Those who retire at 59 receive 89 percent, those who retire at 58 receive 84 percent and those who retire at 57 receive 79 percent. The percentage continues to drop lower with each year until the age of 50 when you will receive only 44 percent of the normal benefit.

Tip

To verify benefit amounts, contact a TRF representative.