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

PER\NEW MEMBER ORIENTATION 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 years' membership in the plan..

PER\NEW MEMBER ORIENTATION 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.

PER\NEW MEMBER ORIENTATION Plan Funding Employer Contributions – 9.72% of salary (effective 1/1/2010) Employee Contributions – 8.28% of salary (effective 1/1/2010) Investment Earnings

PER\NEW MEMBER ORIENTATION 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 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

PER\NEW MEMBER ORIENTATION Service 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)

PER\NEW MEMBER ORIENTATION Determining 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

PER\NEW MEMBER ORIENTATION

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 contributions & interest.

PER\NEW MEMBER ORIENTATION 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).

PER\NEW MEMBER ORIENTATION Purchase 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.

PER\NEW MEMBER ORIENTATIONPortability 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

PER\NEW MEMBER ORIENTATION Pension 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:  under Member Tools/Benefit Calculator on the Internet and Intranet.

PER\NEW MEMBER ORIENTATION Retiree 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.

PER\NEW MEMBER ORIENTATION Contact Information OFFICE LOCATION Tacoma Public Utilities Administration Building North 3628 South 35 th Street, Ground Floor Tacoma, WA Ph: (253) Fax: (253) Toll Free (888) Website:

PER\NEW MEMBER ORIENTATION Additional Contact and Website Information Other Public Retirement Systems WA State – Department of Retirement Systems Toll Free or (360) Website Seattle City Employees’ Retirement System Ph: (206) Website Spokane Employees’ Retirement System Ph: (509) Website