1. Pre-Retirement Seminar
Last updated 9/16/2018

2. Employees’ Retirement Fund
ERF is a Defined Benefit Plan
Retirement/Pension
Disability
Death
A defined benefit plan for permanent employees’ of the City of Dallas

3. Pension Contributions
Employee Contribution
13.32%
City Contribution
22.68%
On your pay stub you may have noticed ERF/PEN that is your 13.32% contribution it comes out of your paycheck every time you get paid (pre-taxed dollars)
The City contributes 22.68% to the Pension Fund every pay period for each employee

4. Earning a Pension Benefit
Vested After 5 Years Credited Pension Service
Ways to Retire
Normal Retirement
Age 60
Service Retirement
30 Years of Service
Rule of 78
Vesting - You’ve earned a benefit once you have contributed to the Fund for five years
- At age 65 you are eligible for retirement benefits
- If you leave city service you must leave your contributions in the Fund to get this benefit at retirement age.
Pension Formula is 2.50% x Credited Pension Service x Average Monthly Income
Credited Pension Service Credit – You earn service credit for any period that you are a permanent employee paid by the City and you made contributions to the Fund. There are some instances that may temporarily suspend you from earning service credit like:
Leave without pay
Out of work and being paid by Workers Compensation (Excluding Injury time)
For accrued pension estimates and actual retirements: the Fund will use your three highest paid years to determine your average income to calculate your monthly pension benefit

5. CALCULATING YOUR BENEFIT
Your retirement is based on three factors:
Credited Pension Service
Pension Multiplier (2.75%)
Monthly salary for 3 Highest Paid Years
Normal Retirement – Age 65 (Five Year Minimum Service Required)
Service retirement – You may receive retirement benefits when you have 40 years of service credit. If you are under age 65 when you retire, your monthly benefit will not be reduced.
Rule of 80 – you may retire at or after age 65 if your age and years of service credit added together total at least 80. You can retire before age 65, but your benefit will be reduced.
Give examples of the reduction
Say we calculate your benefit to be $2,750 a month, you have 16 years of service and you are 64 years old. Your pension would be reduced 10.3% which would bring it to $2,467
Reduction amounts:
Age 63 = 19.3%
Age 62 = 27.4%
Age 61 = 34.5%
See page 4 of the Member Guide to see examples of how we calculate your benefit.

6. Pre-Retirement Seminar
Last updated 9/16/2018
Rule of 78 Retirement
Steps to Calculate Benefit – Page 4
Step 1. Calculating Final Average Pay
Three Highest Paid Years vs. Last 36 Months
Three Highest Paid Last 36 Months
$32, $22,800
$33, $33,000
$35, $35,000
Total $100, $5,600
Vac LS $4,200
Total $100,600
Final Average Pay = $100,600/36 months = $2,794.44
The monthly pension does not include your monthly health benefit supplement of $125
This estimate reflects 63% of your annual pay
City employees have the rare opportunity of earning a pension up to 100% of their avg. income however you must work for the City for 36.4 years.

7. Calculating Your Benefit, rule of 78
Step 2. Benefit Percentage
Multiple Years of Service by 2.75%
2.75% x 26.4 years = 72.6%
Step 3. Monthly Retirement Benefit
Multiply Average Monthly Pay by Benefit
Percentage – 72.6%
$2, x 72.6% = $2,028.76
+ $ 125
$2,153.76

8. Health Benefit Supplement
Pre-Retirement Seminar
Last updated 9/16/2018
Health Benefit Supplement
Provided to help you manage cost of healthcare after retirement
$25 a month for each full year of service credit up to $125 each month
The Health Benefit Supplement is provided by the Fund to retiree’s to help manage the costs of health care after you retire
You receive $25 per month for each full year of service credit, up to $125 a month

9. Cost of Living Adjustment
Pre-Retirement Seminar
Last updated 9/16/2018
Cost of Living Adjustment
COLA
Adjustments made annually on January 1st
Adjustments are prorated for all new retirees
Added to your base pension
COLA’s for last three years
2018 – 2.053%
2017 – 1.446%
2016 – 0%
Each January 1, retirees benefit amount may be adjusted up to 5% to account for changes in the cost of living the previous year. (2007 COLA was 3.475% 2006 COLA was 4.665% 2005 COLA was 3.445% % in 2003 it was 3.08%)
For those retiring in any part of the year the COLA is prorated. It appears in the January check.
Keep in mind the COLA is added to your base benefit
(If necessary mention)
A cost-of-living adjustment to the base pension shall be made based on the greater of:
The percentage of change in the price index for October of the current year over October of the previous year up to 5%, or
The percentage of annual average change in the price index for the 12 month period ending with the effective date of the adjustment, up to 5%.

10. example: cola Calculation
Pre-Retirement Seminar
Last updated 9/16/2018
example: cola Calculation
COLA
Julia retired in 2005 with a monthly pension benefit of $2,968
Her current pension is $3,209…
Her base pension is $2,968
2018 COLA Calculation
Base Pension x COLA Percentage
$2,968 x 2.053% = $60.93
+ $3,209 (Current Pension) = $3,269.93
+ $125 (Health Benefit Supplement) = $3,394.93
2006 COLA Calculation – 4.665%
Base Pension $2,968 x COLA 4.665% = $138
2006 Pension - $2, $138 = $3,106
2007 COLA Calculation – 3.475%
Base Pension $2,968 x COLA % = $103
2007 Pension - $3, $103 = $3,209

11. Reduction In Force Eligible to retire if within 2 years of eligibility
Member can Buy Forward
Member will receive benefits at eligibility date

12. What If You Leave the City?
You will have three options:
Refund of your contributions
Rollover your contributions into another qualified retirement plan; e.g., IRA, 401K, etc.
Leave your contributions in the Fund, if Vested
Refund - When you terminate, you can request a refund of your contributions from the Fund. If you take a refund, and you are vested you will no longer be entitled to retirement benefits. If you are not vested you must take a refund or a rollover. If you do take a refund of your contributions keep in mind the Fund will deduct 20% up front for tax purposes and at the end of the year the Fund will send you a 1099 that you will be required to fill with your income taxes this could result in another 10% tax penalty.
Rollover – In lieu of a refund you also have the option to rollover into a qualified plan of your contributions
If You’re Vested - You can leave your contributions in the Fund until you reach age 60 you are then entitled to receive a monthly pension check for the rest of your life. If you do not have at least five years of service credit, you must request a refund. ERF refund are not generated with your final City payroll check. You must apply in the ERF office or complete a refund application online, print it off, get it notarized and return in person or by mail to the Fund office.* If you are not vested and leave the City, your pension contributions will be forfeited after three years if they are not either refunded or rolled over into another qualified plan

13. Pre-Retirement Seminar
Last updated 9/16/2018
WHAT If You Are Rehired?
You will have three options:
Treated as a break in service
Previous service is counted if you left your money in the fund
You may be able to buy back your service if you took a refund
The period you were gone is called a break in service
If you left your contributions in when you left that time is counted toward your service credit
If you took a refund of your contributions you are eligible to re-instate your service credit if your break in service is six years or less:
You must work for the City one year before you can pay the money back
You must put back your contributions plus any interest
You have three years to put the money back in the Fund
If you have previously forfeited your contributions you can request reinstatement of service time

14. Your Beneficiary & Designee
By Texas state law, your spouse is your beneficiary
Other qualified beneficiaries are:
Your parent over 65
Your disabled child
Your minor child(ren)
Designee
Anyone you choose; other family, adult children, friends, etc.
An Organization or Charity
Your spouse—Define qualified recipient
If you are married and you want your beneficiary to be someone other than your spouse, he or she must agree on a signed and notarized Spousal Waiver Form filed with the Fund’s Executive Director.
If you and your spouse divorce, that spouse is no longer your beneficiary. If you marry after you retire, that spouse is not your beneficiary—but you may make that spouse your designee by submitting a Death Benefit Form.
Your beneficiary receives a monthly payment after your death.
A designee receives your benefit if you die with no beneficiary and will be paid a lump sum benefit upon your death.

15. monthly Death Benefit Form, section I
Section I. Member Information
Fill in Your Personal Information
Your Spouse Will Only Appear in Section 1

16. monthly Death Benefit Form, section II
Section II. Beneficiary
Indicate if you have any Primary Beneficiaries or not and who that will be, you may only choose ONE

17. monthly Death Benefit Form, section III
Section III. Contingent Beneficiary
Indicate if you have any Contingent Beneficiaries or not and who that will be, you may only choose ONE
Complete Side 2 if you have chosen one or more Primary or Contingent Beneficiaries

18. monthly Death Benefit Form
Member Signature
Sign
& Date

19. monthly Death Benefit Form, section IV
Section IV. Beneficiary Information
List Your Primary and Contingent Beneficiaries Information

20. monthly Death Benefit Form
Member Signature
Sign
& Date

21. LUMP SUM DEATH Benefit Form, section I
Section I. Member Information
Fill in Your Personal Information
Your Spouse Will Only Appear in Section 1

22. LUMP SUM DEATH Benefit Form, section II
Section II. Primary Designees
List Your Primary Designee(s)
Complete Side 2 if you have chosen one or more Primary or Contingent Beneficiaries

23. LUMP SUM DEATH Benefit Form
Member Signature
Sign
& Date

24. LUMP SUM DEATH Benefit Form, section III
Section III. Contingent Designees
List Your Contingent Designee(s)
List your Contingent Designee(s)

25. LUMP SUM DEATH Benefit Form
Member Signature
Sign
& Date

26. What If You Become Disabled?
There are Two Types of Disability Retirement
Service Disability
No Minimum Service Required
Minimum Monthly Benefit $1000
Non-Service Disability
Active Members must have Five or more Years of Service
Inactive Members must have Ten or more Years of Service
Service Disability—If you become totally and permanently disabled while performing your job, you are eligible to apply for service disability benefits. There is no minimum service requirement.
Disability is calculated the same as a retirement calculation. The member will be given no less then a $1,000 a month, if it calculates to more the member will be given that number.
Non-service Disability—If your disability is not related to your work, you may apply for non-service disability benefits. The following Fund members are eligible for non-service disability retirement:
• Active members with five or more years of service credit
• Inactive members with 10 or more years of service credit.
Read about disability benefits in more detail on page 14 in your member guide

27. What If You Die Before Retiring?
There are Two Types of Death Benefits
Service Death Benefits
Death Benefits will be paid to the eligible Beneficiary(ies) or Designee(s)
Minimum Monthly Benefit $1000
Non-Service Death Benefits
Active Members with less than Two Years of Service a Refund of Contributions are paid – No Paid Death Benefit
Active Members with Two or more Years of Service – Death Benefits will be paid to eligible Beneficiary(ies) or Designee(s)
If you die before you are eligible to retire, your beneficiary or designee will receive a death benefit.
Service death benefits - If an active Fund member dies on the job as the result of a job-related injury or illness, the Fund pays service death benefits to the member’s beneficiary. The death benefit is calculated on the greater of 10 years of service credit or the member’s actual service credit. The minimum service death benefit is $1000 per month.
Non-service death benefits - If you are an active Fund member who dies because of an injury or illness that is not the result of City employment, non-service death benefits depend on your years of service credit. If you have completed:
Less than two years of service credit—your beneficiary will receive a refund of your contributions and no death benefits will be paid.
Two or more years of service credit—death benefits will be paid to your eligible beneficiary or designee.

28. WHAT If You Get Divorced?
Pre-Retirement Seminar
Last updated 9/16/2018
WHAT If You Get Divorced?
Provide ERF with a copy of any divorce decrees for divorce(s) occurring while you are working for the City Qualified Domestic Relations Order
in a divorce, the court may enter a qualified domestic relations order (QDRO) requiring
the Fund to divide benefits between you and your former spouse or your children.
Contact the Fund office for information about a QDRO.

29. COMMON LAW MARRIAGE The State of Texas recognizes common law marriage
Declaration of Marriage Certificate
Requires divorce to end marriage
For more information, visit the Texas State Law Library,
If you get a divorce while working for the City please provide ERF with the finalized decree as soon as possible. Divorce decrees prior to employment with the City are not required.
In a divorce, the court may enter a qualified domestic relations order (QDRO) requiring the Fund to divide benefits between you and your former spouse or your children.
Contact the Fund office for information about a QDRO.

30. Choosing a Benefit Option
Pre-Retirement Seminar
Last updated 9/16/2018
Choosing a Benefit Option
The Fund offers Three Benefit Payment Options when you Retire:
Life with 10 Years Certain
Joint & 1/2 Survivor with 10 Years Certain
Joint & Full Survivor with 10 Years Certain

31. Choosing a Benefit Option 10 YEAR CERTAIN
Pre-Retirement Seminar
Last updated 9/16/2018
Choosing a Benefit Option 10 YEAR CERTAIN
Life with 10 Years Certain
Full benefits for your lifetime
When you pass away, your beneficiary will receive the reminder of 120 payments
If you don’t have a beneficiary, your designee will receive lump sum payment
This option pays you full benefits for a lifetime. If you die before you receive 120 payments the remainder of those 120 payments will be made to your beneficiary.
If you have no eligible beneficiary a lump sum will be paid to your designee

32. Choosing a Benefit Option JOINT & HALF SURVIVOR
Pre-Retirement Seminar
Last updated 9/16/2018
Choosing a Benefit Option JOINT & HALF SURVIVOR
Joint & Half Survivor w/ 10 Years
Full benefits for your lifetime
When you pass away, your beneficiary will receive 1/2 of your monthly benefit for the rest of his or her life
If you both pass away before 120 payments, your estate or designee will receive a lump sum payment
This option pays you full benefits for your lifetime
After your death your beneficiary receives half of your monthly benefit
If you both die before you receive 120 payments your designee receives a final lump sum payment of the remaining 120 payments

33. Choosing a Benefit Option JOINT & FULL SURVIVOR
Pre-Retirement Seminar
Last updated 9/16/2018
Choosing a Benefit Option JOINT & FULL SURVIVOR
Joint & Full Survivor w/ 10 Yrs.
Available to you if you have 15 years of service or you are Age 60
Reduced benefits for your lifetime
When you pass away, your beneficiary will receive the same amount for the remainder of his or her life
This option pays you full benefits for your lifetime
After your death your beneficiary receives half of your monthly benefit
If you both die before you receive 120 payments your designee receives a final lump sum payment of the remaining 120 payments

34. Member Elected Trustees
John Jenkins
Chair
Carla Brewer
Vice-Chair
Tina Richardson
Trustee
These are our three member elected trustees …
John Jenkins - works for the Parks & Recreation Department
Carla Brewer - works for Equipment & Building Services Department
Tina Richardson – works for the Street Department
Every two years, we have the opportunity to vote for who we want to represent us on the board.
- Any member can run for trustee
- Currently the election process is:
- You receive your voting instructions in the mail
- You call in your selection for trustee or vote online

35. City Auditor Craig Kinton
The Dallas City Auditor is an ex officio member of the ERF Board of Trustees. City Auditor serves on the ERF Board of Trustees the current City Auditor is Craig Kinton.

36. ERF Appointed Trustees
Randy Bowman
Trustee
Lee Kleinman
Trustee
John W. Peavy III
Cimarron Asset
Management
Portfolio Manager
ERF’s three board members appointed by the City council are:
John Peavy - Portfolio Manager for Cimarron Asset Management
Lee Kleinman - Trustee appointed by City council
Randy Bowman - Trustee appointed by City council, Randy has been President & Co-Owner of MW Logistics, LLC, since its inception in 2001.

37. Retirement Checklist Original Documents Required: Birth Certificate(s)
Marriage Certificate(s)
Social Security Card(s)
Voided Check for Direct Deposit
Copy of Divorce Decree(s)

38. QUESTIONS