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HomeMy WebLinkAboutRetirement Committee - Minutes - 06/03/2004Citv of Fort Collins General Employees' Retirement Plan GENERAL EMPLOYEES' RETIREMENT COMMITTEE June 3, 2004, MEETING MINUTES COUNCIL LIAISON: Mayor Ray Martinez COMMITTEE Susan Lehman, Chair, 221-6813 MEMBERS Jim O'Neill, Vice Chair, 221-6779 PRESENT: Bill Switzer, 221-6713 MEMBERS Dottie Nazarenus, 204-4429 ABSENT: Michele Hays -Johnson, 416-2158 Approved August 5, 2004 Alan Krcmarik, 221-6788 OTHERS Pat Kahle (Actuary, Milliman USA) PRESENT: Greg Tempel (City Attorney's Office) Debbie Weedman (Human Resources) Julie Depperman & Ann Wardle (Finance) CALL TO ORDER: Susan Lehman called the meeting to order at 1:55 p.m. PLAN MEMBER COMMENTS: The Committee reserves this place on the agenda to receive comments from Members of the Plan or the public. There were no comments. APPROVAL OF MINUTES: Minutes of the May 6, 2004, meeting were distributed. Bill Switzer moved approval of the minutes with minor grammatical amendments, and Jim O'Neill seconded the motion. The Committee approved the minutes as amended unanimously (4-0). DISCUSSION TOPICS 1. Plan Philosophy: Pat proposed an Addendum to the current Agreement that would allow Milliman USA to utilize Joel Stewart at a higher rate of pay when it would be in the best interests of both Milliman and the City. Joel has passed several actuarial exams and offers a greater level of expertise, and there are times when it would be most cost-effective to pay a higher rate and utilize his services rather than those of a less experienced individual. Jim O'Neill noted that this would come into effect only on special projects, because there are caps on things such as actuarial valuations, benefit calculations, meetings, and so forth. Pat would seek approval from the Committee to utilize more experienced staff. Jim suggested that specific actuarial employees may be billed at different rates. Jim O'Neill moved to renew the contract and sign the addendum with the noted change, and Alan Krcmarik seconded the motion. The motion passed unanimously (4-0). The limit of liability is set at $1 215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6788 • FAX (970) 221-6782 General Employees' Retirement Committee June 3, 2004, Meeting Minutes Page 2 of 3 million. Jim O'Neill also moved to renew the contract with Milliman USA for another year effective July 1, 2004. Alan Krcmarik seconded this motion. The motion passed unanimously (4-0). 2. Update on Summary Plan Description: The Committee began the page by page review of the Summary. • An apostrophe will be added after "Employees"' in every instance that the General Employees' Retirement Committee/ Plan are mentioned. • Further, a sentence will be added to say that the General Employees' Retirement Plan or GERP will be referred to as the "Plan." • An inside cover page will be added and numbered page "i" and will have the legal wording given in paragraph 4 of the Introduction typed in bold print. The Table of Contents will be numbered pages ii and iii. • Also throughout the document, contractions will be deleted and spelled out. Page numbering will begin at 1 on the Introduction page. Any reference to the "booklet" will be changed to "Plan Summary." • In paragraph 2 of the Introduction, add wording to include other retirement plans. • The legal wording in paragraph 4 will be typed in bold. The last sentence in the final paragraph of the Introduction will read, "The Plan described in this Plan Summary was adopted January 1, 1971, and was most recently restated effective December 31, 2001, with subsequent amendments through (date of publication)." • Under Plan Highlights, add wording from PRPS. "Your Retirement Plan" in the second sentence will be changed to read, "This Plan is a'Defined Benefit' plan." • The beginning of the second sentence will be changed to read, "This Plan" and reference to "pay" will be changed to "compensation" in the third sentence and throughout the entire document. • "Your credited service will continue to accrue until retirement." • On choosing how you want to receive your benefit, the reader will be referred to the page number that shows the formula, and single sum benefit will be added as an option. • "Early retirement can begin as soon as you reach age 55 and have at least two years of credited service" will be deleted and it will read, "You are eligible to receive a single sum payment or you may be eligible for a benefit as early as age 55. • Greg Tempel also suggested putting the word "or" after options A and B. • Bullets will be used for the highlights instead of the numbering and "applicable details, formulas, and restrictions are further detailed in this Plan Summary" will be added. • References to page numbers that detail survivor benefit upon death and upon disability will be added. • The Summary will use "average compensation" instead of monthly pay. • Under Definitions, Credited Service will be updated for the part-time change to the Plan. • "The Plan funds are invested in a diversified portfolio appropriate to the Plan" will be added to the end of the Defined Benefit Plan paragraph. • "Pay" will be changed to "Compensation" under Final Average Monthly Pay and the abbreviation of this will be changed to "(FAMC)." Also under Final Average Monthly Filename: 2004 GMIN 06 03 Final General Employees' Retirement Committee June 3, 2004, Meeting Minutes Page 3 of 3 Compensation, in the second paragraph, "recorded as additional hours" will be added after compensatory time. • Under the definition of vesting, the second sentence will be changed to read as two sentences: "You have a vested interest in the Plan after completing two years of credited service. You will be fully vested after five years of credited service." The last sentence will be changed to read, "(See chart on page _ for the vesting schedule.)" • Under Plan Participation, the Summary will say that the Plan is closed. Everyone will continue reviewing the rest of the Plan Summary for the next meeting. 3. Monthly Investment Report: There was no Monthly Investment Report 4. Other Business: Due to a lack of agenda items, Alan moved to cancel the July meeting of the General Employees' Retirement Committee; Bill Switzer seconded the motion. The Committee passed the motion unanimously (4-0). The next meeting will be in August. Pat Kahle, Milliman USA, had distributed a handout at today's meeting; it will be reviewed at the August meeting. Adjournment: The Committee adjourned at 3:37 p.m. TOPICS FOR NEXT REGULAR MEETING The next regular meeting of the Committee will be on August 5, 2004, at 1:45 p.m. in the Council Information Center of City Hall. The tentative agenda includes: Plan Member Comments Approval of Minutes Plan Philosophy Editing the Summary Plan Description Quarterly Investment Report Other Business GENERAL EMPLOYEES' RETIREMENT PLAN WEB PAGE: The General Employees' web page can be found at www.fcgov.com/cityclerk/retirement.phl). The Committee's 2003 Annual Report, 2004 Work Plan, and monthly minutes are available at this site. 2004 Meeting Schedule: The regular meeting time for the Committee is at 1:45 p.m. on the first Thursday of each month. The regular location is the Council Information Center at City Hall. For 2004, the Committee has scheduled the meetings as shown below: July 1 (canceled) October 7 August 5 November 4 September 2 December 2 Filename: 2004 GMIN 06 03 Final GENERAL EMPLOYEES' RETIREMENT PLAN SUMMARY PLAN DESCRIPTION (CITY LOGO HERE) GENERAL EMPLOYEES' RETIREMENT PLAN SUMMARY PLAN DESCRIPTION References to the General Employee's Retirement Plan, or GERP, will be referred to as the Plan. i TABLE OF CONTENTS This is set to track your chances -. ----____. _------------------- ------------------------- __ Deleted:¶ INTRODUCTION PLAN HIGHLIGHTS The General Employees' Retirement Plan, along with your personal savings and Social Security, can offer you financial security during your retirement years. Your Retirement Plan is a "Defined Benefit Plan." Your final average monthly compensation and years of credited service------- Deleted: Pay are used to determine your benefit. DEFINITIONS The terms defined here will help you understand the Plan. The terms are italicized throughout this document. PARTICIPATION AND COSTS You begin participating in the Plan pn your first day of eligible employment._ The City sets aside_ _ ---- Deleted: General Employees money during your working years to fund your Plan benefits. Retirement Plan NORMAL AND DELAYED RETIREMENT Normal retirement age is 65, but you may continue working for the City and retire at a later date. A formula is used to calculate your benefit. You must notify Human Resources at least 30 days prior to the date you wish to retire. EARLY RETIREMENT BENEFITS With at least two years of credited service, you may retire as early as age 55 and receive a benefit payment from the Plan. If payments begin before age 65, your monthly benefits will be reduced. FORMS OF BENEFIT PAYMENT When you retire, you will be asked to choose a form of benefit payment. Once your first ------ Deleted: - payment is made, you cannot Chan a the form of benefit payment. The calculation of the retirement benefit amis base_ d on your life only. Optional forms of benefit ...... Formatted: ui9hr9m payments with survivor benefits are available. IF YOU LEAVE If your employment ends after two years of credited service, you are entitled to a benefit at age 65, or you may receive a reduced benefit payment as early as age 55. DISABILITY If you are disabled, you may continue earning credit toward your retirement benefits. jtetirement -- Deleted: ._-- Benefit payments will begin when you are eligible to retire under the Plan, or when long berm _ -_- Deleted: disability payments end, whichever is later. Workers Compensation disabilities are also addressed in this section. SURVIVOR BENEFITS If you left City employment or opted out of the Plan prior to January 1, 1994, death benefits (if ----- Deleted: General Employees any) shall be determined in accordance with the provisions of the Plan in effect as of the date Retirement Plan you left the Plan. The provisions in this section apply to Plan members who were employed on January 1, 1994, or after that date. SOCIAL SECURITY BENEFITS During your working years, you and the City contribute to provide Social Security benefits for you and your dependents when you retire. ADDING IT ALL UP Your Plan enefits, along with Social Security payments, will provide income when you retire. - Deleted: Gene al Employees The table on 51,4 shows some sample benefit payments at 20 25 and 30 years of credited Retirement Plan service. " - Formatted: Highlight ADMINISTRATIVE INFORMATION This Plan is sponsored by the City of Fort Collins and is administered by the General Deleted:¶ Employees Retirement Committee (GERC), _ -.. _. _ Deleted: _— ___...Page Break.....__......_ INTRODUCTION It is important for you to plan for your retirement during your working years. The City of Fort Collins General Employees' Retirement Plan, is designed to help you accumulate part of the --- - Deleted: (GERP) financial retsources , you will need for your retirement Through the Plan, the City sets aside Deleted: money during the time you are working in an eligible position to provide an income for you after Deleted: you'll you retire. You are notpermifted to m. __________..._ - _____-_.______-_.__- Deleted: requiredor The plan is one source of dependable retirement income for you. When it is combined with - -_-_ Deleted: cER Social Security, personal savings the 457 Deferred Comoensatlon Plan and/or the 401(a) _ Money Purchase Plan you have built up over the years, you should have the financial protection Deleced: and any that will help you enjoy your retirement. This Flan Summary will give you a good idea of what benefits you can expect to receive from - - Deleted: booklet the Plan when you retire how these benefits are calculated and other information about your _- Deleted: GER participation in the Plan. You can get an overview of the Plan by reading the information at the beginning of each section. More detailed information appears below the page headings. . Formatted: Font: Bold The Plan Sumis written in ever da language to avoid the technical mary . - - - - . ...... _-y- y an g ua_ ga a..d tr=._ "document. Deleted: booklet language of the Plan's legal If, in our efforts to make the Plan Summary easy l to understand, we have omitted or misstated any of the Plan's provisions, the Plan's Deleted: booklet official legal document will remain the final authority. Deleced: or If you wish, you may examine the legal document in the office of the City Clerk, jn Human _, -Deleced: booklet Resources, or on the City's intranet. The Plan described in this Plan Summaa was adopted ,.' ,.' Deleted: January 1, 1992, January 1, 1971, and was most recently restated effective 12/31/01, pith_subseguent ." - Formatted: Highlight amendments through 66660f ft"'),. -- - -,._-- Deleted: December, 1995 Deleted: General Employees Retirement "PLAN HIGHLIGHTS Deleted: and The Plan, along with your personal savings, ,Social Security, 457 Deferred Compensation, ,' Deleted: Your Retirement and/or 401(a) Money Purchase Plans can offer you financial security during your retirement Deleted: pay years. This Ian is a "Defined Benefit" plan. Your final average monthly compensation nd,r-' Deleted: You are eligible for benefits years of credited service are used to determine your benefit. afteryoo nave completed at least With the Plan, you can choose from a number of options to put together the retirement package years of credited service and reach at least age 55.1 that's best for you. J. First you decide when you want to retire: --- , Deleted: A. —,Normal Retirement begins at age 65,_with a benefit based on your"?'r��" ,N Formatted: Bullets and Numbering compensation.and years of service. __ -- Deleted: pay age 65_ If you wait until you reach age 65 to receive retirement benetlt .-.-. payments, the benefit payments will not be reduced. JDelayed retirement, working past your normal retirement age, is another option and credited service will continue to accrue. If. Second, you choose one of the following; vv i tit3 it `------- ----- - -- your formula eii lii,f'ip is used to calculate our monthly benefit at normal retirement age (which is age 65) payable for your life only. • OWf you wish, you can choose from _anumber of reducedmonthly payment options with survivor benefits Deleted: B. Deleted: can begin as soon as you reach age 55 and have at least two years of credited service. You can receive reduced retirement benefit payments immediately or receive them later. Deleted: C. . Deleted: how you want to receive vour benefits Deleted: A. - Formatted: Bullets and Formatted: Highlight OR Deleted: ¶ Y h t ' e a sin le sum Dament Deleted: B. e ou can a so c oose o recely g v III. Third, if you die or leave the City before retirement, the Plan has provisions to Deleted: protect your benefits: Formatted: Indent: Left: t", First line: 0.5" e Jf you leave employment with the City before becoming eligible for Formatted: Bullets and Numbering retirement, you are eligible to receive a single sum Davment 4 � , -' ; - Deleted: A. mfi it � i or you maybe eligible for a benefit as early as age 55 . -- - - -- "--- Formatted: Bullets and Numbering Jfyou die before_ retirement, the Plan will pay a urvivor benefit Mi Formatted: Highlight Formatted: Highlight e Jf you become disabled, you may continue to earn credited service `,, Deleted: but have completed at toward your retirement benefit p fir.,, digs j - years of credited service, you may ---"-' either be eligible for a lump sum 'ADplicable details formulas and restrictions are detailed in the Plan Summary. :`. payment (see page e)Deleted: B. . Deleted: benefit to your surviving DEFINITIONS in alphabetical order spouse or beneficiary. The terms defined here will help you understand the Plan. The terms are italicized throughout Fom atted: Highlight this document. Deleted: C. . Credited_ Service is the period of employment used to determine your eligibility for, and the amount of, your retirement benefit. You begin earning service toward your pension benefit from your first day of eligible employment with the City. You may continue to earn credited service during periods of disability that are covered under the Cl 's Long -Term Disability Plan, Social Security, or Workers Compensation insurance (g A Defined Benefit Plan, such as the General Employees_ Retirement Plan, is based on your level of salary and years of credited service and guarantees a monthly benefit beginning at your date of retirement and continuing for your lifetime. The investment of General Employees Retirement Plan funds is overseen by the General Employees_ Retirement Committee and administered by the City's Finance Department. The Plan funds are invested in a diversified portfolio appropriate to the Plan. pefined Contributionplans, such as the 457 Deferred Compensation and 401(a) Money Purchase Plans, provide, a single sum at retirement equal to the accumulation of employer and employee contributions and earnings over your career. The employer usually contributes a fixed Percentage of compensation or matches a portion of the employee's contributions. The amount _.. -. Deleted: A Break in service occurs ff you leave eligible employment with the City and do not return to eligible City employment within five years of your dale of termination. If you have a break in service, you will retain any vested benefits earned before the break occurred. If you return to eligible City employment after a break in service occurs, the vesting process toward earning an additional benefit begins again.¶ If you leave and do not receive any benefit payment, and then relu n o t Formatted: Highlight Deleted: A Deleted: Deleted: s Deleted: pay of the benefit payment is not guaranteed._ Allocation of funds, within gjan guidelines, is the --- Deleted:P responsibility of individual participants. Final Average Monthly Compensation (FAMW is used in calculating your retirement benefit, Deleted: Pay except in cases of disability. It is determined by taking 1/60th of your total base compensatio} Deleted: P during the 60 consecutive, highest -paid calendar months in your last 10 years of eligible Deleted: pay employment with the City. If you have less than five years of service your final average monthly compensation will be the average of your monthly coin ensatio over. your period of e_ Ilglble Deleted: service as a participant. In the event that you have been employed on a Darttime basis during Deleted: pay anv nortion of the neriod of time used to calculate the FAMC and have received part-time Deleted: pay Your total base compensation. is all income reported on your annual W-2 form from the City, _ -- Deleted: pay plus any base compensation that you elected to have deferred under a Deferred Compensation Program. Total base compensatio excludes bonuses, overtime, lump -sum payment for - --- -- Deleted: pay accrued vacation, compensatory time, workers compensation, or other extra pay recorded as additional hours after compensatory time. The Plan Year is January 1 through December 31. Vesting is the process of earning service credit to determine the portion of retirement benefit you will be eligible to receive as early, You have a vested interest in the Plan after completing two years of credited service_ You will be fully (100%) vested after_ completing five years of credited service. (See chart 0nppg!pkL. __= forthe vesting schedule 1 _ PARTICIPATION AND COSTS You begin participating in the General Employees Retirement Plan on your first day of eligible employment. The City sets aside money during your working years to fund your Plan benefits. Plan Participation You participate in the Retirement Plan on your first day of eligible employment. You are eligible to participate in this Plan if you are in one of the following categories of employees: 1. Any employee with the City in a classified position as defined by the City Personnel Policies and Procedures, except police officers, paid firefighters, and emergency services dispatchers (police and fire). 2. Non -firefighters in a classified position who perform clerical and technical duties for Poudre Fire Authority; and 3. Any employee who became a member of this Plan while in a classified position, whose classified position was later changed to an unclassified position, or who transferred from a classified position to an unclassified position, but who elected to remain a member of this Plan, and continues to earn credited service (no breaks in service). Cost of the Plan The City sets aside money during your working years to provide you with the benefits of this Plan. You are not required or permitted to make additional contributions to the Plan. Deleted: as agi Deleted: GERP - Deleted: in an e Deleted: y Deleted: eligible City employment Deleted: 0 Deleted: complete General Employees Retirement Plan vesting Formatted: Highlight An independent actuarial consultant advises the City regarding contributions to the General Employees Retirement Plan for future benefits. The trust fund money is invested for future growth and earnings. The money in this trust is used for the sole purpose of paying benefits and other expenses of the Plan. NORMAL AND DELAYED RETIREMENT Normal retirement age is 65, but you may continue working for the City and retire at a later date. A formula is used to calculate your benefit. You must notify Human Resources at least 30 days prior to the date you wish to retire. Normal Retirement and Pension Normal retirement age is 65. Your normal retirement date is the first day of the month on or following your 65th birthday. Delayed Retirement and Pension You may elect to continue working after you reach normal retirement age. In this case, your retirement date is the first day of the month on or following the date you actually retire. You must begin drawing a benefit by age 70 /2. When Payments Begin Your retirement date is always the first day of the month. Your first retirement benefit payment will be issued during the last week of that month. For example, if your last workday is February 15, your retirement date is March 1 and your check will be issued the last week in March. Calculating your Retirement Benefit Amount With a defined benefit plan, a formula is used to calculate your monthly benefit at normal retirement age, which is age 65, payable for your life only. The formula uses your years of credited service under the Plan and your final average monthly pay (FAMP) to determine your benefit. See pages 2 and 3 for definitions of these terms. For optional forms of benefit payment, see pages 7 and 8. The formula for calculating your monthly benefit at age 65 or older is: 1 Y2% x Final Average Credited Service x Years of Monthly Pay so"*" I0400 rirXwi� aN 69 "Oh 30 riawaf 0000d tw"" wiilh ow Niswkry *"�fp "or Ow 10 a"inWwtam&* yank* aw -sd 32i 9afh 321AW 532 f*s aad s2s' ' 1k r u wd t* Ki * io pw W* t*41 hKK' aif %119" Otnh wfto »; .01�5y4 0 X $1,9 X 30 z 3 0$ 6wo0 4"Ir, 19a S31sa11W6 *40* 0 *0 a nrw' EARLY RETIREMENT BENEFITS With at least two years of credited service, you may retire as early as age 55 and receive a benefit payment from the Plan. If payments begin before age 65, your monthly benefits will be reduced. If you have completed at least two years of credited service with the City, you may retire as early as age 55 and receive a benefit from the Plan. The formula for calculating your early retirement benefit is the same as the normal retirement benefit formula described on the previous page, using your actual credited service at your retirement date. However, your benefit will be reduced for early payment (see table on page 7). Also, if you have less than five years of service, your benefit will be further reduced according to the vesting schedule on page 9. You must notify Human Resources at least 30 days prior to the date you wish to begin taking early retirement. Your retirement will be effective the first day of the month following your retirement date. Reduction for Early Payment If you retire early and elect to receive payments before age 65, the amount of your monthly benefit will be reduced to reflect the longer time that payments are expected to be made. The reduction factor is 6 2/3% for each year you will receive payment between the ages of 60 and 65, and 3 /3% for each year between ages 55 and 60. The percentages of benefits payable if you retire before age 65 are shown below: FORMS OF BENEFIT PAYMENT When you retire, you will be asked to choose a form of benefit payment. Once your first payment is made, you cannot change the form of benefit payment. The calculation of the retirement benefit amount on page 5 is based on your life only. Optional forms of benefit payments with survivor benefits are available. Life -Only Benefit The life -only benefit provides monthly payments for your life only. Payments end when you die. With this option, there are no survivor benefits. Optional Forms of Payment If you prefer a form of payment which provides survivor benefits, you may elect an optional form of payment described below. 120 Months Certain & Life: Monthly payments are made to you for your lifetime However, if you die before receiving 120 payments, your beneficiary or estate will receive the remainder of the 120 payments. For example, if 55 payments have been made at the time you die, the remaining 65 payments (120 minus 55) will be made to your beneficiary or estate. 50% Joint & Survivor: This option pays benefits for your lifetime and continues to pay 50% of that amount to your beneficiary after your death. 100% Joint & Survivor: This option pays benefits for your lifetime and continues to pay the same amount to your beneficiary after your death. If you choose a form of payment that has survivor benefits, your benefit payment will be smaller than if you received payments for your life only, because payments are expected to be made over a longer period of time. The chart below uses acturarial tables to give you a comparison of these benefit reductions. Effect on Benefit Amount if Optional Payment Chosen St" Eiie tsar 222 u v37 .e0 nr tau 1s"tiv . e... .......... .................. •WWAdW WWASS 00V, of 126 OGVW� s Benefit Amounts Less than $100 If your monthly retirement benefit payment is calculated to be less than $100, the Retirement Committee will direct that payment of your entire retirement benefit be made in a single lump - sum payment one year after your employment ends. Naming a Beneficiary If you choose a benefit payment option other than the Life -Only Benefit, you must name a beneficiary, someone who will receive your benefit when you die. Your beneficiary may be your spouse or any other person you designate, with your spouse's consent. You may not change your beneficiary after payments have begun. Spousal Consent If you are married and choose either the Life -Only Benefit or the 120 Months Certain and Life, your spouse must give consent in writing. IF YOU LEAVE If your employment ends after two years of credited service, you are entitled to a benefit at age 65, or you may receive a reduced benefit payment as early as age 55. Benefit Amounts Less than $100 If your monthly retirement benefit payment is calculated to be less than $100, the Retirement Committee will direct that payment of your entire retirement benefit be made in a single lump - sum payment one year after your employment ends. Deferred Vested Retirement Benefit If your employment with the City ends after you have completed two or more years of service, you will be entitled to receive a deferred vested retirement benefit payable at age 65. The amount of your monthly benefit will be calculated in the same way as the normal retirement benefit described on page 5. It will be based on your credited service and final average monthly pay as of your date of termination, and will be subject to the following vesting schedule: �u X Yau�rYmn 42 2 a 4 5- 0 40 dG go 1010 You may elect to begin payments as early as age 55. Payments will be reduced for early retirement as described on page 7. If You Are Rehired The break in service definition on page 2 will determine whether or not you can restore the service credit you earned before your employment with the City ended. Rehiring Procedures If you retire from the City and are later rehired, your monthly benefit payments will stop while you are employed. When you retire again, you will receive a retirement benefit based on any additional credited service and pay. Your new retirement benefit payment will be reduced to reflect any previous benefit payments you received. DISABILITY If you are disabled, you may continue earning credit toward your retirement benefits. Retirement benefit payments will begin when you are eligible to retire under the Plan, or when long-term disability payments end, whichever is later. Workers Compensation disabilities are also addressed in this section. You may continue to earn service under the Plan if you qualify for benefits under the City's Long -Term Disability Insurance Plan, the City's Workers Compensation Insurance, or Social Security. If you are PERMANENTLY, TOTALLY DISABLED and receiving benefits from the City's Workers Compensation Plan, Social Security, or the City's Long -Term Disability Insurance Plan, you will continue to earn service credit under the GER Plan as if you were employed by the City up until the time you begin receiving GER Plan benefits. If you are PERMANENTLY, PARTIALLY DISABLED, and receiving benefits under Workers Compensafion, you may earn up to two years of service credit toward your retirement benefit. If you should receive a lump -sum payment through the Workers Compensation Insurance Plan, in lieu of monthly payments, the additional service credited to you for the period of disability under the GER Plan will be the same as the period which provided the basis for the lump- sum calculation. Retirement benefits will begin when you are eligible to retire under the Plan, or when long-term disability payments end, whichever is later. You are not eligible to receive retirement benefits during any period for which you are being credited with service for disability. The amount of your retirement benefit will be calculated using the Normal Retirement formula shown on page 5, including credit for eligible service while you are disabled, except the pay used to calculate your benefit is your monthly rate of pay at the time you became disabled. If You Recover You are considered to have recovered from disability if you return to work for the City in a position covered by the Plan, or if you are no longer receiving benefits from the City's Long-term Disability Plan, the City's Workers' Compensation Insurance, or Social Security. Recovery may affect your benefit as follows: • If you recover after age 65 and after retirement benefit payments have begun, and you do not return to work for the City in a position covered by this Plan, payments will continue without change. • If you recover after retirement payments have started and return to work for the City in a position covered by this Plan, your payments will end while you are re-employed, and you will earn additional service credit. • If you recover before retirement payments begin and return to work for the City in a position covered by this Plan, you will resume participation in the Plan and keep any service credits which were given to you for the period of disability. • If you recover before retirement payments begin and do not return to work for the City in a position covered by this Plan, no disability retirement benefits will be paid. However, if you had already earned enough credited service, you will still be eligible for early or deferred vested retirement benefits. SURVIVOR BENEFITS If you left City employment or opted out of the General Employees Retirement Plan prior to January 1, 1994, death benefits (if any) shall be determined in accordance with the provisions of the Plan in effect as of the date you left the Plan. The provisions in this section apply to Plan members who were employed on January 1, 1994, or after that date. While Employed By The City of Fort Collins If you die while actively employed by the City of Fort Collins, or while earning credited service for a disability, the Plan will pay a lump -sum benefit to your surviving spouse, beneficiary, or estate. (An employee who dies is considered to be fully vested, even if they have less than two years of credited service.) The lump -sum benefit will be based on the value Of your accrued benefit at the time of your death. Your spouse may choose to defer payment of this amount, either as a lump sum or as a monthly benefit payment, with payment(s) beginning after you would have reached age 55. If the survivor benefit monthly payment is calcu lated to be less than $100, the General Employees Retirement Commit tee will direct that your entire survivor benefit be paid within 90 days in a single lump -sum payment. After Terminating Eligible City Employment With A Deferred Vested Benefit If you die after terminating eligible city employment and after earning a deferred vested benefit, the Plan will pay a lump -sum benefit to your surviving spouse, beneficiary, or estate. The lump - sum benefit will be based on the value of your accrued benefit at the time you left eligible City employment. Your spouse may choose to defer payment of this amount, either as a lump sum or as a monthly benefit payment, with payment(s) beginning after you would have reached age 55. If the survivor benefit monthly payment is calculated to be less than $100, the General Employees Retirement Committee will direct that your entire survivor benefit be paid within 90 days in a single lump -sum payment. After Retirement Benefit Payments Begin If you die after retirement benefit payments begin, any survivor benefit payments will be determined by the retirement benefit payment option you chose prior to retirement. SOCIAL SECURITY BENEFITS During your working years, you and the City contribute to provide Social Security benefits for you and your dependents when you retire. Social Security benefits add to your retirement plan benefits to provide income for your retirement years. Throughout your working career, you and the City contribute annual amounts set by federal law to provide Social Security benefits when you retire. You may wish to check periodically with the Social Security Administration (1-800-772-1213) that your records and earnings history are correct and complete. Social Security law can change at any time. Updated and detailed information about monthly payments, spouse and survivor benefits, and Medicare coverage is available from your local Social Security office. ADDING IT ALL UP Your General Employees Retirement Plan benefits, along with Social Security payments, will provide in come when you retire. The table on page 14 shows some sample benefit payments at 20, 25, and 30 years of credited service. The figures in the table on page 14 illustrate how the GER Plan and Social Security work together for two sample employees retiring in 1996; one earning $1,500 per month at retirement (final average monthly pay is $1,400) and the other earning $3,500 per month at retirement (final average monthly pay is $3,300). The Social Security benefits assume the employees were continuously covered by Social Security during all years of employment. The "% of Pre -Retirement Pay' figures show how the total amount of the combined GER Plan benefits and Social Security benefits compares with the sample employees' pre -retirement pay. Most financial planners recommend replacing at least 80% of your pre -retirement income when you retire. You may wish to check with Human Resources about other savings options. $11A06 #WAN * Yamsd Gu a" leneda!' fade) fiat' Fyy �I► LA1t0' SW $1,00 71 sa 1 " 65 ww ►a tPt R.r%1 ._.. r«xaar �r yet lemalf tr TOW xai.mm� �" pay 2t1 30 sm 0 it'drK6i tAU S2,bt8 „st26 i 7f n Maur baneta peymeq_t aoAw eba 04-40 fy WWII wenq bad si*me of ADMINISTRATIVE INFORMATION This Plan is sponsored by the City of Fort Collins and is administered by the General Employees Retirement Committee (GERC). Control and Administration The City of Fort Collins sponsors the City of Fort Collins General Employees Retirement Plan, which first became effective January 1, 1971, and was restated effective January 1, 1992, with subsequent amendments through December, 1995. The Plan is administered by the five -member General Employees Retirement Committee (GERC), which includes the City's Director of Finance and four members appointed by City Council. Three of the members other than the Finance Director must be employees covered by the Plan; the fourth member may be either a Plan member or a tax -paying elector. The Committee oversees the normal operations of the Plan and has full authority to interpret the Plan on all issues such as benefit amounts and credited service. Plan Permanence The City intends to continue the Plan indefinitely, but reserves the right to change the Plan or discontinue it. Any changes to the Plan must be for the exclusive benefit of the employees, retired employees, or beneficiaries of Plan benefits, and must be made to protect all retirement benefits earned as of the date of the change. Effect on Employment The Plan in no way guarantees you continued employment with the City. If your employment ends, or if you are discharged, the Plan does not give you any right to any benefit or interest in the funds in the retirement trust, except as specifically provided in the Plan. Terminated or retired employees (receiving or continuing to receive retirement benefits, if eligible under the Plan), may obtain employment with another employer without affecting earned retirement benefits with the City of Fort Collins. Assignment of Benefits The Plan is intended to pay benefits to you or your beneficiaries only. Your benefits cannot be used as collateral for loans or be assigned in any other way, except as required under a court order or as required by law. Page 5:. [1] Deleted DWeedman 7/20/2004 11:20 AM. A Break in Service occurs if you leave eligible employment with the City and do not return to eligible City employment within five years of your date of termination. If you have a break in service, you will retain any vested benefits earned before the break occurred. If you return to eligible City employment after a break in service occurs, the vesting process toward earning an additional benefit begins again. If you leave and do not receive any benefit payment, and then return to eligible City employment before a break in service occurs, you will get credit for your prior years of service. If you leave and receive a lump -sum benefit payment, and then return to eligible City employment before a break in service occurs, you will get credit for your prior service if you repay the GER Fund any amounts you received, plus interest, within six months of rehire. (See page 9 regarding rehiring of retirees.)