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Tacoma Employees’ Retirement System. New Employee Orientation. What is the Tacoma Employees' Retirement System?.

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Tacoma employees retirement system

Tacoma Employees’ Retirement System

New Employee Orientation


What is the tacoma employees retirement system
What is the Tacoma Employees' Retirement System?

The Tacoma Employees' Retirement System is a defined benefit plan funded by employee contributions and employer contributions which are tax deferred, as well as investment return.

Defined Benefit: A defined benefit plan guarantees a certain payout at retirement, according to a fixed formula which usually depends on the member's salary and the number of membership years in the plan.


Who is eligible to participate in the tacoma employees retirement system
Who Is Eligible to Participate in the Tacoma Employees' Retirement System?

All employees of the City of Tacoma and Member Public Agencies shall become members of the Retirement System, unless excluded by ordinance or are active members of another retirement system.


Tacoma employees retirement system

Plan Funding Retirement System?

Employer Contributions – 9.72% of salary (effective 1/1/2010)

Employee Contributions – 8.28% of salary (effective 1/1/2010)

Investment Earnings


Who are the members of the board of administration
Who are the members of the Board of Administration? Retirement System?

Marilyn Strickland Mayor (Chairperson)

Robert Biles Director of Finance (Secretary)

Rey Arellano Designee of the City Manager

Bill Gaines Director of Public Utilities

Alice Phillips Employee Representative

Sam Benscoter Employee Representative

Jim Curley Employee Representative

David Peterson Retired Representative

Chris Webster Citizen Representative

Wayne Reed Alternate Board Member

Elected by

Employees

Elected by Retirees


Service retirement eligibility
Service Retirement Eligibility Retirement System?

AGE 60, ANY NUMBER OF YEARS OF SERVICE

(full benefit – 2% factor)

AGE 55 OR OLDER, 10 YEARS OF SERVICE

(reduced benefit – see Table)

AGE 40 OR OLDER, 20 YEARS OF SERVICE

(reduced benefit – see Table)

ANY AGE, 30 YEARS OF SERVICE

(full benefit – 2% factor)

RULE OF 80 (AGE & YEARS OF SERVICE = 80)

(full benefit – 2% factor)


Factor table
Factor Table Retirement System?


Twice the value
Twice the Value Retirement System?

Effective on and after January 1, 1997, a service pension shall not be less than the actuarial equivalent of twice the value of the individual’s accumulated contributions & interest.

*Currently 40% of TERS retiree pensions are provide a higher benefit based on twice the value of each member’s total contributions.


Termination of employment
Termination of Employment Retirement System?

LUMP SUM EQUAL TO

REFUND OF CONTRIBUTIONS

PLUS INTEREST (less than 5 years)

or

LUMP SUM EQUAL TO

150% OF CONTRIBUTIONS

PLUS INTEREST (5 years or more)

Both are taxable unless rolled directly to an Individual Retirement Account (IRA) or qualified plan.

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Purchase of time
Purchase of Time Retirement System?

Individuals may purchase up to 5 years of service, provided the member is vested (five or more years) and that no purchase shall exceed a total of 30 credited years.

Payments shall be made in a lump sum per the following:

On an after-tax basis (personal check)

A direct trustee-to-trustee transfer from a qualified 457 or 403 (b) plan

A direct rollover from an Individual Retirement Account (IRA) qualified under Internal Revenue Code Section 408

Purchase of time must be made at the time of retirement or to become eligible for retirement.

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Portability
Portability Retirement System?

SYSTEMS INCLUDED:

TRS, PERS, SERS SCERS, WSPRS, LEOFF II, SEATTLE, SPOKANE & TACOMA

SERVICE REQUIREMENT

Must be met for each system

AVERAGE FINAL SALARY

Highest base salary will be used for all calculations

RETIREMENT ELIGIBLITY

Years of service under portability may be used for purposes of eligibility and benefit formula

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Pension calculator
Pension Calculator Retirement System?

The pension calculator will allow you to calculate estimated retirement benefits, calculate purchase of time, and the cost to repay previously withdrawn contributions.

The Pension Calculator is located under Member Tools/Pension Calculator on the our website at:

www.cityoftacoma.org/ters

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Contact information
Contact Information Retirement System?

OFFICE LOCATION

Tacoma Public Utilities

Administration Building North

3628 South 35th Street, Ground Floor

Tacoma, WA 98409

Ph: (253) 502-8200 Fax: (253) 502-8660

Toll Free (888) 404-3787

Website: http://www.cityoftacoma.org/ters

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Additional contact and website information
Additional Contact and Website Retirement System? Information

Other Public Retirement Systems

WA State – Department of Retirement Systems

Toll Free 1-800-547-6657 or (360) 664-7000

Website http://www.drs.wa.gov

Seattle City Employees’ Retirement System

Ph: (206) 386-1293

Website http://www.seattle.gov/retirement

Spokane Employees’ Retirement System

Ph: (509) 625-6330

Website http://www.spokanecity.org/departments

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