1. THE 100% SOLUTION Maximizing Your Pension: How to Retire with 100% of Final Compensation Presented by: Tax Deferred Services 457 Plan Administrator 408.978.1000

2. No. 1 Goal Help every employee retire with 100% of final compensation. “Your first retirement income check should look like your last paycheck!”

3. Statutory Retirement Plans 60% – 65% STRS/PERS pension is designed to replace how much of your current income?

4. Retirement Income Other Income Sources: 1. Part-time work 2. Inheritance 3. Savings Plans

5. Available Savings Plans 457 Plan 457 Plan 403(b) - TSA 403(b) - TSA Roth 403(b) Roth 403(b)

6. STRS/ PERS QUESTIONS Have you estimated your pension income at a desired retirement age? Have you estimated your pension income at a desired retirement age? Have you looked into buying “Air time”? Have you looked into buying “Air time”? Have you considered buying out of state time? Have you considered buying out of state time? Have you estimated your SS Income? Have you estimated your SS Income?

7. STRS Basics Age x Years x Compensation= income Age x Years x Compensation= income Formula multiplier maximized at 61 ½ years of age with 30 years of service (or) Formula multiplier maximized at 61 ½ years of age with 30 years of service (or) At age 63 with 5 years of service or more At age 63 with 5 years of service or more

8. PERS Basics Age, Years of Service, Compensation = percentage of Income Payout Age, Years of Service, Compensation = percentage of Income Payout Formula Change in Jan 2001 no longer offsetting for SSI Formula Change in Jan 2001 no longer offsetting for SSI 100% Income Payout at 40 years of service 100% Income Payout at 40 years of service

9. Windfall Elimination Provision Reduces a Members Social Security Benefit by calculating their benefit under a formula Reduces a Members Social Security Benefit by calculating their benefit under a formula Reduction will be a Maximum of 55.56% Reduction will be a Maximum of 55.56% No reduction in benefit will result for members with 30 or more years of “Substantial Earnings” under Social Security No reduction in benefit will result for members with 30 or more years of “Substantial Earnings” under Social Security

10. Government Pension Offset Affects members expecting to receive a Social Security benefit as a spouse, former spouse, widow or widower: Social Security Benefit is reduced by 2/3 of the CalSTRS retirement benefit Social Security Benefit is reduced by 2/3 of the CalSTRS retirement benefit If 2/3 of the CalSTRS benefit exceed the amount of Social Security spousal benefit, then no benefit will be paid from the SSB. If 2/3 of the CalSTRS benefit exceed the amount of Social Security spousal benefit, then no benefit will be paid from the SSB.

11. STRS/PERS (60-65%) PLUS (+) 403b/457b Savings Plan (35-40%) EQUALS (=) 100% SOLUTION In Summary

12. Your Plan Administrator Your Work Site - Your Home - Our Office www.tdsgroup.org Provides personal counseling at: