1. Information for you

2.  Simply put it is a tax code that allows for deferred (save now spend later) monies that will be used by the employee for retirement  this money is pre-tax  You reduce your current income taxes while you boost your retirement investments.  You have the ability to rollover your savings to another public sector employer's 401 plan, a tax-sheltered 403(b) annuity plan, a 457 plan, or an IRA if you change employers.  Pre-tax contributions are not subject to federal and (in most cases) state income taxes until withdrawn.  Earnings accumulate tax-deferred.  You may also participate in a 457 Deferred Compensation Plan

3.  To talk about the benefit you need to know how our retirement works  There are many misconceptions on how the drop program operates  So lets give a brief over view of the PSPRS (Public Safety Personnel Retirement System)

4.  You are currently contributing 7.65% of your salary to your Pension (PSPRS)  This does not change!  The District is contributing a percentage based of how well the program is performing  Each District is contributing different amounts based on what a bean counter (actuary ) says  This year our District is contributing 14.1%

5.  When you enter the drop you essentially leave employment in the eyes of the PSPRS  For up to 60 months (drop period) they divert your pension to an account (drop account) that will hold that saving until you are eligible.  Once you enter the drop you and your employer are no longer contributing to the PSPRS

6.  In the past the employer has been able to encumber (keep) their contribution to the PSPRS during the drop  You also would see an increase in your pay check by 7.65%  By entering into this program the District has agreed to divert a portion of their contribution (7.65% ) into the 401(a) account during your drop period

7.  You also have to place 7.65 percent into the account during the drop period  You will not even know it happened, financially, because you never saw the contribution through out your career  You will have to plan ahead  The plan come into effect after 4 years of employment and is irrevocable (can’t opt out) ▪ The minimum contribution is 1% if you make 50,000 a year that is $500.00 (pre-tax)

8. Assuming you are making 60,000 (very conservative) when you enter the drop the district is going to contribute approx. 5000 dollars a year to the plan (free money). Number are hard to say they are very individual to the employee so I am giving a very bare bone estimate.

9.  This plan is a good thing it will be a benefit to all our members.  With the increase in retirement cost we need to constantly make sure we look towards our future for our selves and family  The Nation Wide reps will be coming around to all the stations and meeting with each member individually. Please make yourself available and ask lots of questions

10. Questions