A defined benefit plan, your IPERS benefits are guaranteed for life, meaning once you retire, you will receive the same monthly benefit for the remainder of your life. This should not be confused with a defined contribution plan, such as a 401(k), 457 or 403(b) plan. Benefits from these plans may fluctuate, based on the amount of money invested and the performance of the stock market.
How IPERS Works
Both you and your employer contribute to IPERS. Your contributions are pooled and invested to pay for future benefits. At retirement, your benefit is calculated based on your age at retirement, average salary and years of service. The longer you work in public service, the larger your benefit.