Member Glossary

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This Glossary of Terms provides definitions for the many retirement terms and definitions used in the administration of your benefits.

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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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