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Tacoma Employees’ Retirement System

Tacoma Employees’ Retirement System. New Employee Orientation. What is the Tacoma Employees' Retirement System?.

merrill-jensen
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Tacoma Employees’ Retirement System

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  1. Tacoma Employees’ Retirement System New Employee Orientation

  2. What is the Tacoma Employees' 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 membership years in the plan.

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

  4. Plan Funding Employer Contributions – 9.72% of salary (effective 1/1/2010) Employee Contributions – 8.28% of salary (effective 1/1/2010) Investment Earnings

  5. Who are the members of the 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 Alice Phillips Employee Representative Sam Benscoter Employee Representative Jim Curley Employee Representative David Peterson Retired Representative Chris Webster Citizen Representative Wayne Reed Alternate Board Member Elected by Employees Elected by Retirees

  6. Service Retirement Eligibility AGE 60, ANY NUMBER OF YEARS OF SERVICE (full benefit – 2% factor) AGE 55 OR OLDER, 10 YEARS OF SERVICE (reduced benefit – see Table) AGE 40 OR OLDER, 20 YEARS OF SERVICE (reduced benefit – see Table) ANY AGE, 30 YEARS OF SERVICE (full benefit – 2% factor) RULE OF 80 (AGE & YEARS OF SERVICE = 80) (full benefit – 2% factor)

  7. Factor Table

  8. Twice 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 accumulated contributions & interest. *Currently 40% of TERS retiree pensions are provide a higher benefit based on twice the value of each member’s total contributions.

  9. Termination 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 Individual Retirement Account (IRA) or qualified plan. 9

  10. Purchase of Time Individuals may purchase up to 5 years of service, provided the member is vested (five or more years) and that no purchase shall exceed a total of 30 credited years. Payments shall be made in a lump sum per the following: On an after-tax basis (personal check) A direct trustee-to-trustee transfer from a qualified 457 or 403 (b) plan A direct rollover from an Individual Retirement Account (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. 10

  11. Portability 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 RETIREMENT ELIGIBLITY Years of service under portability may be used for purposes of eligibility and benefit formula 11

  12. Pension Calculator The pension calculator will allow you to calculate estimated retirement benefits, calculate purchase of time, and the cost to repay previously withdrawn contributions. The Pension Calculator is located under Member Tools/Pension Calculator on the our website at: www.cityoftacoma.org/ters 12

  13. Contact Information OFFICE LOCATION Tacoma Public Utilities Administration Building North 3628 South 35th Street, Ground Floor Tacoma, WA 98409 Ph: (253) 502-8200 Fax: (253) 502-8660 Toll Free (888) 404-3787 Website: http://www.cityoftacoma.org/ters 13

  14. 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 14

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