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This Glossary of Terms provides definitions for the many retirement terms and definitions used in the administration of your benefits.
Content
| Term | Definition | See also |
|---|---|---|
| Bona Fide Retirement | The period during which an IPERS member files a completed application for benefits, ends IPERS-covered employment and demonstrates the member is entitled to benefits. | Returning to Work |
| Buy-back | A service purchase when a member who previously took a refund from IPERS purchases the refunded service credit. | Purchase Service |
| Buy-in | Any authorized service purchase that is not a buy-back or buy-up. | Purchase Service |
| Buy-up | A service purchase when a member converts Regular service credits to Special Service credits. | Purchase Service |
| Calendar Year (CY) | The 12-month period beginning January 1 and ending December 31. | |
| Contingent Annuitant | A person, named by the member, who is guaranteed lifetime monthly payments upon the death of the member. A member designates a contingent annuitant (in place of a beneficiary) only if the member chooses Option 4 or 6 at retirement. | Benefit Payment Options |
| Defined Benefit Plan | An employer pension plan that uses a formula to guarantee a specified benefit at retirement. As a defined benefit plan, IPERS provides guaranteed benefits using a formula based on a member’s age, years of service and covered wages. | |
| Disability Benefits | Benefits provided to eligible members of any age with a qualified disability. Disability benefits are not adjusted for early retirement. | Member Disability Benefits |
| Dividend | A lump-sum payment intended to help compensate for the effect of inflation over time, such as the November dividend. | Learn more |
| IPERS-Covered Employment | Any employment for which a person accrues benefits under IPERS. You receive service credit for any quarter during which you make contributions. | |
| IPERS-Covered Wages | An employer pension plan that uses a formula to guarantee a specified benefit at retirement. As a defined benefit plan, IPERS provides guaranteed benefits using a formula based on a member’s age, years of service and covered wages. | |
| Membership Group | A category of IPERS member determined by the type of IPERS-covered employment a member works in. There are three membership groups: Regular, Sheriffs/Deputy Sheriffs and Protection Occupation. Sheriffs/Deputy Sheriffs and Protection Occupation members are also known as Special Service members. | Membership Groups |
| Multiplier | Used in the formula to calculate your retirement benefit amount, the multiplier is expressed as a percentage. As you accrue more service, you qualify for a higher multiplier of your final average salary, which increases your benefit. | Multiplier |
| Normal Retirement Age | The time when a member begins receiving benefits not subject to an early-retirement reduction. | Retirement Eligibility |
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