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COH Pension Systems Retirement Benefit Levels

COH Pension Systems Retirement Benefit Levels. COH Pension Systems Retirement Benefit Levels. Replacement Ratio: - Standard measure of retirement benefit level - Retirement income as % of pre-retirement income. HMEPS Civilian Employees. HPOPS and HFRRF Public Safety Employees.

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COH Pension Systems Retirement Benefit Levels

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  1. COH Pension SystemsRetirement Benefit Levels

  2. COH Pension SystemsRetirement Benefit Levels Replacement Ratio: - Standard measure of retirement benefit level - Retirement income as % of pre-retirement income

  3. HMEPSCivilian Employees

  4. HPOPS and HFRRFPublic Safety Employees

  5. DROP Is A Game Changer • Specific to Individual – cannot generalize • Variables Include: • Provisions of DROP • Age and service at DROP entry and exit • Basic benefit accrual rates w/o DROP • Salary changes during DROP • EE Contributions during DROP • Interest credits on DROP account

  6. Sample of DROP Changing the Game • At DROP Entry: • Age 45 • 20 years of service • Annual Salary $75,000 • Eligible for lifetime annuity of $37,500 (50%) per year

  7. Sample of DROP Changing the Game (cont’d) • During DROP: • Active, but no further benefit accruals based on salary and service • Salary increases 3% per year • DROP account credited each year with: • Annuity amount based on salary and service at 20 yrs • EE contributions of 9% of salary • Interest at 5% per yr

  8. Sample of Drop Changing The Game (cont’d) At Retirement: • Age 55 • 30 years of service • Annual salary of $100,794 • Accumulated value of DROP account - $627,655 • COLA adjusted 20 year service annuity - $45,000/yr

  9. Sample of Drop Changing the Game (cont’d)

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