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 5 50% Survivor Benefits with the "Pop -Up" Provision Under Option 5, 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, one-half of the same reduced pension benefit will be paid to the retiree's beneficiary for life. However, if the 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. The table below* can be used to estimate the benefit amount anticipated if Option 5 is elected at retirement. Age of Retiree 55 56 57 58 59 60 61 62 63 64 65 45 0.911 0.905 0.898 0.890 0.882 0.874 0.866 0.857 0.848 0.838 0.828 46 0.914 0.907 0.900 0.893 0.885 0.877 0.869 0.860 0.851 0.841 0.831 47 0.916 0.909 0.902 0.895 0.888 0.880 0.871 0.863 0.854 0.844 0.834 48 0.918 0.912 0.905 0.898 0.890 0.882 0.874 0.866 0.857 0.847 0.837 49 0.921 0.914 0.908 0.900 0.893 0.885 0.877 0.869 0.860 0.850 0.841 50 0.923 0.917 0.910 0.903 0.896 0.888 0.880 0.872 0.863 0.854 0.844 51 0.925 0.919 0.913 0.906 0.899 0.891 0.883 0.875 0.866 0.857 0.847 52 0.928 0.922 0.915 0.909 0.901 0.894 0.886 0.878 0.869 0.860 0.851 53 0.930 0.924 0.918 0.911 0.904 0.897 0.889 0.881 0.873 0.864 0.854 54 0.933 0.927 0.921 0.914 0.907 0.900 0.892 0.884 0.876 0.867 0.858 55 0.935 0.929 0.923 0.917 0.910 0.903 0.896 0.888 0.880 0.871 0.862 56 0.937 0.932 0.926 0.920 0.913 0.906 0.899 0.891 0.883 0.874 0.865 57 0.940 0.934 0.929 0.923 0.916 0.909 0.902 0.895 0.887 0.878 0.869 58 0.942 0.937 0.931 0.925 0.919 0.912 0.905 0.898 0.890 0.882 0.873 59 0.944 0.939 0.934 0.928 0.922 0.915 0.909 0.901 0.894 0.886 0.877 60 0.947 0.942 0.937 0.931 0.925 0.919 0.912 0.905 0.897 0.889 0.881 61 0.949 0.944 0.939 0.934 0.928 0.922 0.915 0.908 0.901 0.893 0.885 62 0.951 0.947 0.942 0.936 0.931 0.925 0.918 0.912 0.904 0.897 0.889 63 0.953 0.949 0.944 0.939 0.933 0.928 0.922 0.915 0.908 0.901 0.893 64 0.955 0.951 0.946 0.941 0.936 0.931 0.925 0.918 0.912 0.904 0.897 65 0.957 0.953 0.949 0.944 0.939 0.934 0.928 0.922 0.915 0.908 0.901 Example of Option 5 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 .930 = $13,368.75 or $1,114.06 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. 8