State Teacher Plans for Indiana

Many teachers do not have access to low-cost choices in their 403(b) plans. Of the 75 district 403(b) plans that we have graded so far in Indiana, 15 districts have an A rating, 1 district has a B rating, 20 districts have a C rating, 19 districts have a D rating, and 20 districts have an F rating.

If you are a teacher in Indiana, here are the state teacher plan options that are available to you.

Indiana INPRS

Most states still offer a traditional formula-based pension. Under this type of arrangement an educator would receive a percentage of their final year's salary until death that is based on some combination of years worked, age, and salary. Some states have made pension plans less generous to new hires, and some states have replaced traditional pensions with 401(k)-type plans.

More information about the Indiana INPRS plan is available directly from the pension website, and Karl Fisch's book on the Indiana pension is available here. Pension plan information for other states is also available for reference through this state pension search tool. This data is shared with us by Karl Fisch, and it is current as of January 1, 2025.

Applicable to All Teachers

Social Security

Indiana teachers also pay into Social Security

Administrative Fee for Supplemental Plans

$54 per year for 457

New Teachers Hired On or After 1/1/2024

Defined Contribution

Employee: 3% often paid by employer and goes into defined contribution; Employer: 6.5%

Multiplier

n/a

Average Salary

n/a

Normal Retirement

5 year vesting for employer portion

Cost-of-Living Adjustment (COLA)

n/a

Veteran Teachers Hired Prior to 1/1/2001

There are no additional benefit tiers between the new teacher and veteran teacher tiers compared here. The exact transition date between these tiers is not relevant to this comparison.

Hybrid

Employee: 3% often paid by employer and goes into defined contribution; Employer: 6.5%

Multiplier

1.1% for defined benefit

Average Salary

Highest 5 years

Normal Retirement

Age 55 with 30 years of service
Age 60 with 15 years of service
Age 65 with 10 years of service

Cost-of-Living Adjustment (COLA)

Determined yearly by legislature

Indiana 457(b)

Every state operates a 457(b) plan that serves governmental workers like police, fire, and state government officials. These plans are generally excellent, and in many cases they are superior to the 403(b) offerings available in school district plans. Most states allow educators to participate in these plans; unfortunately, about a dozen do not.

Find out more about how we rate state 457(b) plans and view plans in other states.

Green Hoosier S.T.A.R.T.

Indiana teachers are eligible to contribute to this plan.

Fees

0.00% admin fee, $51 account fee, and a low index fee

Record Keeper

Nationwide

Target Date Fund

State Street

NOTE: While plan doesn't have an International index fund, it does offer the ability to own the Vanguard TDF as a CIT which is a global equity portfolio under 0.20%. Getting information on investment options was VERY difficult.

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