city of tacoma, washington ters new employee orientation tacoma employees’ retirement system
TRANSCRIPT
City of Tacoma, WashingtonTERS
New Employee Orientation
Tacoma Employees’ Retirement System
City of Tacoma, WashingtonTERS
What is the Tacoma Employees' What is the Tacoma Employees' Retirement System?Retirement System?
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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.
City of Tacoma, WashingtonTERS
Who Is Eligible to Participate in Who Is Eligible to Participate in the Tacoma Employees' Retirement the Tacoma Employees' Retirement
System?System?
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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.
City of Tacoma, WashingtonTERS
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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
City of Tacoma, WashingtonTERS
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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 ManagerBill Gaines Director of Public UtilitiesAlice Phillips Employee RepresentativeSam Benscoter Employee RepresentativeJim Curley Employee RepresentativeDavid Peterson Retired Representative Chris Webster Citizen RepresentativeWayne Reed Alternate Board Member
Elected byEmployees
Elected by Retirees
City of Tacoma, WashingtonTERS
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Service Retirement EligibilityService 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)
City of Tacoma, WashingtonTERS
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Factor Table
City of Tacoma, WashingtonTERS
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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 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.
City of Tacoma, WashingtonTERS
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) or qualified Individual Retirement Account (IRA) or qualified
plan.plan.9
City of Tacoma, WashingtonTERS
Purchase of TimePurchase of Time
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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.
City of Tacoma, WashingtonTERS
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
RETIREMENT ELIGIBLITY— Years of service under portability may be used
for purposes of eligibility and benefit formula11
City of Tacoma, WashingtonTERS
Pension CalculatorPension 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
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City of Tacoma, WashingtonTERS
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
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City of Tacoma, WashingtonTERS
Additional Contact and Website Information
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Other Public Retirement Systems
WA State – Department of Retirement SystemsToll Free 1-800-547-6657 or (360) 664-7000Website http://www.drs.wa.gov
Seattle City Employees’ Retirement SystemPh: (206) 386-1293Website http://www.seattle.gov/retirement
Spokane Employees’ Retirement SystemPh: (509) 625-6330Website http://www.spokanecity.org/departments