per\new member orientation tacoma employees' retirement system retirement introduction

$: PER\NEW MEMBER ORIENTATION TACOMA EMPLOYEES' RETIREMENT SYSTEM Retirement Introduction$
PER\NEW MEMBER ORIENTATION

TACOMA EMPLOYEES' RETIREMENT SYSTEM

Retirement Introduction


What is the Tacoma Employees' What is the Tacoma Employees' Retirement System?Retirement System?

The Tacoma Employees' Retirement System is a defined benefit plan funded by employee contributions and employer contributions which are tax deferred, as well as investment return.

Defined Benefit: A defined benefit plan guarantees a certain payout at retirement, according to a fixed formula which usually depends on the member's salary and the number of years' membership in the plan..


Who Is Eligible to Participate in Who Is Eligible to Participate in the Tacoma Employees' the Tacoma Employees'

Retirement System?Retirement System?

All employees of the City of Tacoma and Member Public Agencies shall become members of the Retirement System, unless excluded by ordinance or are active members of another retirement system.


Plan FundingPlan Funding

• Employer Contributions – 9.72% of salary (effective 1/1/2010)

• Employee Contributions – 8.28% of salary (effective 1/1/2010)

• Investment Earnings


Who are the members of the Who are the members of the Board of Administration?Board of Administration?

Marilyn Strickland Mayor (Chairperson)

Robert Biles Director of Finance (Secretary)

Rey Arellano Designee of the City Manager

Bill Gaines Director of Public Utilities

Diane Wetzel Employee Representative

Sam Benscoter Employee Representative

Jim Curley Employee Representative

David Peterson Retired Representative

Chris Webster Citizen Representative

Wayne Reed Alternate Board Member


Service Retirement EligibilityService Retirement Eligibility

• AGE 60, ANY NUMBER OF YEARS OF SERVICE

• AGE 55 OR OLDER, 10 YEARS OF SERVICE (reduced)

• AGE 40 OR OLDER, 20 YEARS OF SERVICE (reduced)

• ANY AGE, 30 YEARS OF SERVICE

• RULE OF 80 (AGE & YEARS OF SERVICE = 80)


Determining Benefit AmountDetermining Benefit Amount

• AVERAGE SALARY

• YEARS OF SERVICE

• UNREDUCED BENEFIT- 30 YEARS OF SERVICE

- AGE 60 - RULE OF 80 (AGE & SERVICE = 80 or

MORE)

• REDUCED BENEFIT


RP-1

Age Creditable Service30 29 28 27 26 25 24 23 22 21 20 19-10 9-1

40 0.759 0.698 0.642 0.591 0.544 NA NA41 0.897 0.825 0.759 0.698 0.642 0.591 NA NA42 1.060 0.975 0.897 0.825 0.759 0.698 0.642 NA NA43 1.252 1.152 1.060 0.975 0.897 0.825 0.759 0.698 NA NA44 1.417 1.332 1.252 1.152 1.060 0.975 0.897 0.825 0.759 NA NA45 1.603 1.507 1.417 1.332 1.252 1.152 1.060 0.975 0.897 0.825 NA NA46 2.000 1.706 1.603 1.507 1.417 1.332 1.252 1.152 1.060 0.975 0.897 NA NA47 2.000 1.815 1.706 1.603 1.507 1.417 1.332 1.252 1.152 1.060 0.975 NA NA48 2.000 1.871 1.815 1.706 1.603 1.507 1.417 1.332 1.252 1.152 1.060 NA NA49 2.000 1.929 1.871 1.815 1.706 1.603 1.507 1.417 1.332 1.252 1.152 NA NA50 2.000 1.964 1.929 1.871 1.815 1.706 1.603 1.507 1.417 1.332 1.252 NA NA51 2.000 2.000 1.964 1.929 1.871 1.815 1.706 1.603 1.507 1.417 1.332 NA NA52 2.000 2.000 2.000 1.964 1.929 1.871 1.815 1.706 1.603 1.507 1.417 NA NA53 2.000 2.000 2.000 2.000 1.964 1.929 1.871 1.815 1.706 1.603 1.507 NA NA54 2.000 2.000 2.000 2.000 2.000 1.964 1.929 1.871 1.815 1.706 1.603 NA NA55 2.000 2.000 2.000 2.000 2.000 2.000 1.964 1.929 1.871 1.815 1.706 1.706 NA56 2.000 2.000 2.000 2.000 2.000 2.000 2.000 1.964 1.929 1.871 1.815 1.815 NA57 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 1.964 1.929 1.871 1.871 NA58 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 1.964 1.929 1.929 NA59 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 1.964 1.964 NA60 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000


Twice the ValueTwice the Value

Effective on and after January 1, 1997, a service pension shall not be less than the actuarial equivalent of twice the value of the individual’s contributions & interest.


Termination of EmploymentTermination of Employment

LUMP SUM EQUAL TO

REFUND OF CONTRIBUTIONS

PLUS INTEREST (less than 5 years)

or

LUMP SUM EQUAL TO

150% OF CONTRIBUTIONS

PLUS INTEREST (5 years or more)

Both are taxable unless rolled directly to an Both are taxable unless rolled directly to an Individual Retirement Account (IRA).Individual Retirement Account (IRA).


Purchase of TimePurchase of Time

Individuals may purchase up to 5 years of service effective January 1, 2002 and may also transfer money from a 457 or 403 (b).

Effective September 1, 2002, repayment may also be made by a direct rollover to the Retirement Fund from an IRA qualified under Internal Revenue Code Section 408.

Purchase of time must be made at the time of retirement or to become eligible for retirement.


PortabilityPortability

• SYSTEMS INCLUDED: – TRS, PERS, SERS SCERS, WSPRS, LEOFF II,

SEATTLE, SPOKANE & TACOMA

• SERVICE REQUIREMENT– Must be met for each system

• AVERAGE FINAL SALARY– Highest base salary will be used for all calculations

• ELIGIBLITY PURPOSES– Years of service under portability may be used for

purposes of eligibility and benefit formula


Pension CalculatorPension Calculator

The pension calculator will allow you to calculate retirement benefits or allow you to calculate the purchase of time.

The pension calculator is located at: www.cityoftacoma.org/ters under Member

Tools/Benefit Calculator on the Internet and Intranet.


Retiree BenefitsRetiree Benefits

Post retirement Cost of Living Adjustment (COLA) eligibility applies after a full year of being retired, which becomes effective July 1 of each year.


Contact Information

OFFICE LOCATION

Tacoma Public UtilitiesAdministration Building North3628 South 35th Street, Ground FloorTacoma, WA 98409Ph: (253) 502-8200 Fax: (253) 502-8660Toll Free (888) 404-3787Website: http://www.cityoftacoma.org/ters


Additional Contact and Website Information

Other Public Retirement Systems

WA State – Department of Retirement Systems

Toll Free 1-800-547-6657 or (360) 664-7000

Website http://www.drs.wa.gov

Seattle City Employees’ Retirement System

Ph: (206) 386-1293

Website http://www.seattle.gov/retirement

Spokane Employees’ Retirement System

Ph: (509) 625-6330

Website http://www.spokanecity.org/departments

per\new member orientation tacoma employees' retirement system retirement introduction

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