2. Retirement What is retirement – however you define it
Purpose of retirement planning – ensuring you have the income, health coverage, etc. to live during the period of your life when you may not be generating income
Retirement income may include Social Security, PERA and your own savings – “three-legged stool” concept
How much do I need to have in savings – depends upon the income you need to live your life during retirement – in general, 8-10 times your final salary
How much to save – numerous answers as it depends upon your situation and where you are in the various stages of your life – in general, 10-15% in your 20s
Hennepin County

3. Hennepin County Retirement Resources
PERA
State-mandated defined benefit plan – provides pension for lifetime
Coordinated Plan – 6.5% EE; 7.5% ER
Correctional Plan – 5.83% EE; 8.75% ER
Police & Fire Plan – 10.8% EE; 16.2% ER
MN State Board of Investments manages investments
PERA pension monthly benefits are taxable when paid out to retirees
Hennepin County

4. Hennepin County Retirement Resources
457(b) Deferred Compensation Plan
Defined contribution plan – you decide distribution of money
3 vendors to choose from – Fidelity, MNDCP & VOYA
2 contribution options – after-tax (Roth) and before-tax
You choose how much to contribute each pay period and how to invest them
Only hardship withdrawals allowed when an active employee
After-tax contributions are tax free and before-tax contributions are taxable when distributed
Hennepin County

5. Hennepin County Retirement Resources
Health Care Savings Plan (HCSP)
Employer-sponsored program with allows employees to invest in tax-free medical savings account while employed by the county.
Contributions are tax-free and reimbursements are tax-free. It’s “free” money!
Money used post-employment for health care costs, including premiums
Fidelity study of 2015 health care costs – a couple retiring at Age 65 will spend approximately $260,000 on health care costs until the end of their life
Hennepin County

6. Questions Lisa A. Underhill, Sr. Benefits Analyst
Human Resources – Benefits Division Government Center, A Tower, 4th Floor
Hennepin County