City Council Study Session Agenda and Packet 2017 05 09

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Statewide Defined Benefit Plan for members of affiliated Social Security Employers Option 4 100% Survivor Benefits with the "Pop -Up" Provision Under Option 4, a reduced normal, deferred, early or vested retirement pension will be paid from the effective date of the retirement or later in the case of a deferred retirement. The reduced pension will continue for the life of the retiree. Upon the death of the retiree, the same reduced pension will be paid to the retiree's designated beneficiary for life. However, if the designated beneficiary dies before the retiree, the reduced pension benefit "pops -up" or reverts to the Normal Option effective with the first day of the month following the date of the death of the beneficiary. If a member elects a non -spouse beneficiary who is significantly younger than the member, certain restrictions may prohibit the election of this payment option or may require an additional calculation to be made in order to comply with US Treasury Regulations. Please contact FPPA for more information. The table below* can be used to estimate the benefit amount anticipated if Option 4 is elected. Age of Retiree 55 56 57 58 59 60 61 62 63 64 65 45 0.837 0.826 0.814 0.802 0.789 0.777 0.763 0.750 0.736 0.722 0.707 46 0.841 0.830 0.818 0.806 0.794 0.781 0.768 0.754 0.740 0.726 0.711 47 0.845 0.834 0.822 0.810 0.798 0.785 0.772 0.758 0.745 0.730 0.716 48 0.849 0.838 0.826 0.815 0.802 0.789 0.776 0.763 0.749 0.735 0.720 49 0.853 0.842 0.831 0.819 0.807 0.794 0.781 0.768 0.754 0.740 0.725 50 0.857 0.846 0.835 0.823 0.811 0.799 0.786 0.772 0.759 0.745 0.730 51 0.861 0.851 0.839 0.828 0.816 0.803 0.791 0.777 0.764 0.750 0.735 52 0.865 0.855 0.844 0.832 0.821 0.808 0.796 0.782 0.769 0.755 0.740 R - '5 53 0.870 0.859 0.848 0.837 0.825 0.813 0.801 0.788 0.774 0.760 0.746 47. 54 0.874 0.864 0.853 0.842 0.830 0.818 0.806 0.793 0.779 0.766 0.751 m 55 0.878 0.868 0.858 0.847 0.835 1 0.823 1 0.811 0.798 0.785 0.771 0.757 8 56 0.882 0.873 0.862 0.851 0.8401 0.828 0.816 0.804 0.791 0.777 0.763 & 57 0.887 0.877 0.867 0.856 0.845 1 0.834 0.822 0.809 0.796 0.783 0.769 a 58 0.891 0.881 0.871 0.861 0.850 1 0.839 0.827 0.815 0.802 0.789 0.775 59 0.895 0.886 0.876 0.866 0.855 1 0.844 0.833 0.820 0.808 0.795 0.781 60 0.899 0.890 0.881 0.871 0.860 0.849 0.838 0.826 0.814 0.801 0.787 61 0.903 0.894 0.885 0.875 0.865 0.855 0.843 0.832 0.820 0.807 0.794 62 0.907 0.898 0.890 0.880 0.870 0.860 0.849 0.838 0.826 0.813 0.800 63 0.911 0.903 0.894 0.885 0.875 0.865 0.854 0.843 0.832 0.819 0.806 64 0.915 0.907 0.898 0.889 0.880 0.870 0.860 0.849 0.838 0.826 0.813 65 0.918 0.911 0.903 0.894 0.885 0.875 0.865 0.855 0.844 0.832 0.819 Example of Option 4 The following example is based on these assumptions: • A member is age 55. • The designated beneficiary is age 53. • The member has completed 25 years of service credit. • The average highest three years' base salary is $50,000.00 per year. • $50,000.00 X 28.75% _ $14,375.00 annually; • $14,375.00 X .870 = $12,506.25 or $1,042.19 monthly * The table above is an estimate and for illustrative purposes only and shows some of the factors used to calculate the option. The factors shown are rounded. When implementing the calculation, the retirement age is rounded up or down to the nearest whole age. Tables may be revised periodically. Your benefit will be determined by the exact tables in effect at the time you elect your payment option and begin to receive your benefit or in the case of participation in DROP when the pension is paid into the DROP account.