1. RETIREMENT

2.  Service Retirement 30 years of full time service at any age, or 5 years of full time service and 60 years old or older  Early Retirement 25 years of full time service Must be 55 years old or older

3.  Ordinary Disability This is a disability that is the result of a non-job related injury (You will have to provide medical documentation that shows you can no longer perform your job) Also, the City’s Doctor has to review these documents and approve/disapprove your request. 5 years of full time service is also required

4.  Extraordinary Disability This is a disability that is the result of a job related injury No service requirement  Vested Pension 5 years of service - after you have completed 5 full time years of service

5. CALCULATION OF MONTHLY RETIREMENT BENEFIT The formula used to calculate a service retirement benefit amount is… 2.5% x FAS x SVC FAS = Final Average Salary … (to calculate FAS, add the annual income for the last three years of work and divide it by 36) SVC = Service (years of full time service)

6. For illustration purposes, let’s use payroll data for a Grade 16. Annual income for the previous years…. 2005 – 40,568.00 2006 – 42,589.60 2007 – 44,898.40 128,056.00 128,056.00 divided by 36 months (or 3 years) = 3557.12 = FAS 2.50% x 3557.12x 30 years = $2,667.90 - monthly benefit Example

7. PENSION DEDUCTIONS  Health Insurance - Blue Cross and Blue Shield Family - $903.00/month Single - 280.00/month  Dental Insurance – Blue Cross and Blue Shield Family - $35.00/month Single - 13.00/month

8. Life Insurance HEALTH INS. Family: 903/mo. Single: 280/mo. Monthly Medical Premium Subsidy Life Insurance Benefits SingleFamily Option1 (less than 65 years old) $ 30 $250.00/mo. $ 30 $873.00/mo. $50,000 Premium You pay: $29.00/mo. At 65 years of age the premium reduces to… $ 38 242.00/mo. $ 90 813.00/mo. $25,000 Premium You pay: $14.50/mo. At 70 years of age the premium reduces to… $ 34 246.00/mo. $ 60 843.00 $12,500 Premium You pay: $7.25/mo. Option 2$ 42 238.00/mo. $121 782.00/mo. $10,000 You pay: $5.80/mo.

9. Monthly Income $2,667.90 -238.00 – Health Insurance - 13.00 – Dental Insurance - 5.80 – Life Insurance $2,411.10

10. DROP OPTION D = Deferred R = Retirement O = Option P = Plan

11. DROP EXAMPLE: Grade 16 employee with 32 years of service and wishes to DROP two years…. Employee will still receive the monthly income of $2,411.10 PLUS…..

12. DROP CONTINUED…. A lump sum amount of approximately $67,473.52!!!!! To calculate…. Take the 2667.90 x 25.2909 = $67,473.52