Employees' Retirement System of Georgia, 1964

IMPLOYIIS'RIT/REMINT SYSTEM Of CEORC/A

T
EMPLOYEES' RETIREMENT SYSTEM
Z:i-4 WASHINGTON ST .. S. W.
ATLANTA 3. GEORGIA
TO ALL MEMBERS:
It is a pleasure to present the following information on the Employees' Retirement System, as amended April 1, 1964. Every effort has been made to provide a well-designed Retirement System to assist you in planning a secure retirement for yourself and your families. Basically, the System provides benefits upon death, disability and retirement, designed to dovetail with the benefits payable under the Federal Social Security Act. This booklet should not be considered as a substitute for the official document setting out the provisions of the Retirement System, but rather it is intended to be an explanation in laymen's language of the benefits to which you will be entitled under the System. Copies of the official document which will be final authority on all matters regarding the Retirement System are on file in the offices of the Employees' Retirement System for your inspection and review. Whether your retirement is close at hand or many years in the future, you are urged to read this booklet. It is to your advantage to know exactly how the provisions of the Retirement System pertain to you. If you have any questions please contact the offices of the Employees' Retirement System. This Department will be glad to answer any of your questions.
Board of Trustees, Employees' Retirement System of Georgia

+ B =

1 100 (P-1680) (.03n'

USn) (1-.0Sm)

1

EMPlOflBS' RlfIREMlN1' SYSTEM Of CEORCIA
fADII Of CONflNfS

Description

Benefit Accrual Table .. . . . . . . . . . . . . . . . . . . . . . . . . . .. 4

Highlights of the Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6

Questions & Answers

.

8

Examples and Tables. . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19

Estimate Your Retirement Allowance

31

In the event of conflict between the provisions stated in this Booklet and the State Acts, the State Acts shall prevail.

2

FOREWORD
At a regular meeting of the Board of Trustees of the Employees' Retirement System of Georgia on April 9, 1964, the Employees' Retirement System was amended effective April 1, 1964, for the express purpose of simplifying the structure of the System, thereby introducing a simplified method of calculating benefits.
The amended System also provides that Members of the System prior to April 1, 1964, will receive no less benefit in the future under the amended System than they would have received if the present System remained unchanged up to the time of their receipt of benefits.
The Benefit Accrual Table on the following p~ge sets forth the amount of benefit at retirement expressed as a percentage of the average compensation for various combinations of retirement age and years of creditable service. The method of applying these percentages is illustrated in the Examples beginning on page 20.
3

y If CrHitabII
51 . at
RetinIne 10 12 14 16
18 20 22 24
26 28 30 32
34 36 38 40

IMPlOYIISf Rlf/BIMINI

Benefit Ac Percentages to be applied to Month
to esti mate a

.....

first

Onr

$358

$350

6%

10%

8

13

9

16

11

19

...1
First

$350

$35G

6%

11%

8

14

10

17

12

20

....1.2.... ETiRE

first

Onr

$35G

$35G

7%

12%

9

15

11

18

13

22

13

22

14

24

15

25

15

26

16

28

17

29

17

29

19

31

20

33

20

33

21

35

22

38

22

37

25

41

27

46

30

50

24

40

26

44

29

49

32

54

25

42

28

47

31

52

34

57

33

55

35

59

37

62

35

59

38

63

40

67

37

62

40

66

42

71

39

66

42

70

44

74

*During 5 Highest Continuous Fiscal Years. (A fiscal year is determined to be the period from July 1 through June 30 following year.)
NOTE: For years of Creditable Service not shown, take one half of the sum of the two percentages surrounding the years of service required. EXAMPLE: The percentage applicable to the first $350
+ of compensation based upon 31 years and retirement age 65 would be V2 X (36 40), or 38%.

4

5

R/CIIl/CH1'S Of tHE PLAN
EFFECTIVE DATE The amended System shall be effective as of April 1, 1964. All members of the System prior to April 1, 1964 will be covered by the amended System but will receive no less benefit than they would have received had the System remained unchanged.
MEMBERSHIP IN THE PLAN All Members of the System on April 1, 1964 will automatically be eligible for the amended System. All future employees will become eligible for the amended System on their date of employment.
SERVICE RETIREMENT AGE You will be eligible for service retirement upon attainment of age 60 and completion of five years of membership in the System, or upon the completion of 30 years of service regardless of age.
SERVICE RETIREMENT ALLOWANCE The amount of your monthly service retirement allowance will be governed by:
(a) The length of creditable service with the State (in no event will service rendered after attainment of age 65 be credited for pension purposes), and
(b) Your rate of compensation during your five highest completed consecutive fiscal years of earnings as an employee of the State in any capacity while a Member of the System.
ADDITIONAL TO SOCIAL SECURITY The benefits provided under the System are independent of and additional to your Social Security benefits.
OPTIONAL FORMS OF RETIREMENT INCOME The System provides optional forms in which you can elect to take your retirement allowance, depending upon your financial needs after retirement.
DISABILITY RETIREMENT If a Member becomes permanently and totally disabled after having completed more than 13 years and 3 months of creditable service, he will qualify for a monthly disability retirement allowance.
BENEFITS ON DEATH PRIOR TO RETIREMENT (a) Upon a Member's death before retirement and prior to his
6

attainment of age 60, or completion of more than 13 years and 3 months of creditable service, his beneficiary will receive a refund of the Member's contributions adjusted for interest.
(b) If a Member dies prior to retirement but after attainment of age 60 and having completed more than five years of creditable service, or after having completed more than 13 years and 3 months of creditable service regardless of age, his designated beneficiary will receive a monthly allowance for the remainder of the beneficiary's lifetime.
BENEFITS ON DEATH AFTER RETIREMENT If you elect an optional form of retirement allowance, payments may be continued after your death to your surviving spouse or other beneficiary. (See page 11)
BENEFITS UPON TERMINATION OF EMPLOYMENT Upon termination of employment prior to retirement, a Member will be entitled to a refund of his own contributions with a portion of regular interest depending upon his length of service at the time of termination. However, if a Member has completed more than 18 years of creditable service he may elect to leave his contributions in the Fund, and receive a monthly retirement allowance commencing at or after age 60 but before age 62. (See page 14)
MEMBERS' CONTRIBUTIONS Each Member who is covered by the Federal Social Security Act shall contribute 3'70 of the first $350 of monthly earnings plus 5% of any earnings in excess of $350 during each month of membership in the System. Each Member who is not covered by the Federal Social Security Act shall contribute 5% of total earnings during each month of membership in the System.
STATE CONTRIBUTIONS Since the Member's contributions represent only a small portion of the total cost of the benefits, the State will contribute each year the additional amounts necessary to insure the continued adequacy of the Fund.
THE SYSTEM IS SOUNDLY FUNDED Your contributions and those of the State are paid into the Fund which is for the exclusive benefit of the Members of the System and their beneficiaries. The ability of the Fund to meet future benefit obligations is checked each year by an independant firm of consulting actuaries. All retirement allowances under the System shall be payable from this Fund.
7

QUBSflONS
AND ANSWBRS
What Is The Purpose Of This Retirement System? The purpose of the System is to provide you and your beneficiary with either life incomes or lump sum cash refunds in the event that you become disabled, die or retire while an employee of the State and a member of the Retirement System. The benefits under the System together with any benefits available to you from Social Security should provide you with the necessary security in your old age and in the event of untimely death or unforeseen disability. The System benefit structure has been simplified as set out in this booklet in order that you will have a better idea of what benefits will be available to you upon the fulfillment of the requirements for receipt of these benefits.
When Does The Amended System Go Into Effect? The Retirement System has been in effect for a considerable number of years. As of April 1, 1964, the System has been simplified so as to make it more readily understood but without reducing the benefits of any member of the Retirement System prior to the date of change, namely April 1, 1964.
When Do I Become A Member Of The System? If on April 1, 1964, you were a Member of the Retirement System, you will automatically become a Member of the Amended System without any action on your part. All future employees of the State will automatically become Members of the Amended System upon their date of employment.
Will The Amended System Change My Benefits? If you were a Member of the Retirement System prior to April 1, 1964, your benefits will be calculated under the terms of the Amended System and a comparison made of the benefits which you would have received if the System had not been amended but had continued unchanged up to the time you make application for benefit. If the Amended System provides a greater benefit you will receive that benefit. If, however, due to your service and salary progression it is found that your benefit would have been greater under the System prior to amendment, you will receive that larger benefit. In other words, any member of the System prior to April 1, 1964, can never receive any less benefit due to this change than he would have received if the change had not been made, but he can, and in many cases will, receive a larger benefit.
8

If you become an employee of the State on or after April 1, 1964, you will be entitled to benefits calculated in accordance with the terms of the Amended System only, without consideration to benefiits as calculated under the System prior to April 1, 1964. How Has The System Changed? The System has changed only in the method or the formula used to calculate the actual amount of benefit upon death, disability or retirement. The eligibility for membership, the requirements for benefits, the retirement age provisions and various other technical details of the Retirement System have remained the same. The formula or method of calculating the benefits has been simplified to produce a more understandable method of calculation so that you will now be able to estimate with a fair degree of accuracy the benefits available to you. When May I Retire? You may retire at age 60 if you have completed at least 5 years of membership in the System, or you may retire at any age if you have completed at least 30 years of membership in the System. How May I Estimate My Retirement Allowance? The amount of your retirement allowance is based upon your Average Earnable Compensation as an employee of the State and also upon the number of years you have been a Member of the Retirement System. On page 4 of this booklet is a Benefit Accrual Table showing, for various retirement ages and lengths of service at retirement, the percentages which are applied to your Average Earnable Compensation. You would first determine what your creditable service would be at your anticipated retirement age and then enter the Table using the creditable service and the retirement age just determined to find the percentages which you would apply to the first $350 of Average Earnable Monthly Compensation and Average Earnable Monthly Compensation in excess of $350. A Member who retires with 35 or more years of creditable service and who has attained at least age 60 but not
9

age 65, would determine his creditable service up to age 65. After multiplying these percentages by the two portions of monthly earnings and adding the results you will have your estimated monthly pension. Starting on page 20 there are several examples showing how these benefits are determined and in the back of the booklet is a page on which you can estimate your retirement allowance.
What Is My Average Earnable Compensation? For purposes of the System your Average Earnable Compensation is defined as the compensation received by you as an employee of the State in any capacity in the 5 highest completed consecutive fiscal earning periods. In other words, a record is kept of your compensation by fiscal years (July 1 through June 30) while a Member of the Retirement System. Upon your retirement these earnings are reviewed to determine which period of 5 consecutive years will produce the highest average earnings for you. For most Members this will probably be the 5 years immediately preceding retirement, but in some cases, the earnings during some other period of employment may produce a higher average and if so, you will be given the benefit of the highest average which can be determined by this method.
What Is Meant By Creditable Service? (See Exception Below)* Creditable service is determined as it was under the Retirement System prior to this change on April 1, 1964. Your creditable service consists of your years of continuous employment as a Member of the System plus the amount of any prior service for which you may be eligible. However, no membership service rendered after attainment of age 65 shall count as creditable service.
*EXCEPTION: In determining the amount of their pensions, employees of Departments who began making contributions at some date after July 1, 1953, will not receive credit for service rendered between July 1, 1953, and the date of first contribution of their Department as shown in the Table on page 30.
10

Does My Benefit Increase If I Work Beyond Age 60? While you may choose to retire at age 60 if you have completed 5 years of creditable service, you may continue working beyond age 60 and your retirement allowance will continue to increase reflecting your additional years of creditable service beyond age 60. If you work after 65 you will not accrue any creditable service for your years after 65. However, any contributions made by you after age 65 will constitute additional income upon your actual retirement. Will My Retirement Allowance Continue For Life? This depends upon the form of retirement income you elect. If you do not elect an optional form of income as described in the next question you will only receive your retirement allowance as long as you live after retirement, and upon your death no further payments will be made to your spouse or estate. May I Choose To Have My Retirement Allowance Payable In Some Other Manner? Yes, you may. People reaching retirement age have different economic and family needs and therefore might want to receive their retirement allowance in different forms. There are available under the System 3 optional forms which may be elected and these are:
(1) Option 1 - Modified Cash Refund. Under this form of income you would receive a slightly reduced retirement allowance such that upon your death your beneficiary will receive a lump sum cash settlement equal to the difference between your accumulated contributions at retirement and the sum of the annuity payments which you received prior to your death. The annuity payments are those payments derived from your accumulated contributions at retirement.
!
11

(2) Option 2 - Joint & 100% Survivor. Under this option you would receive a reduced retirement allowance payable for your lifetime with the guarantee that if your designated beneficiary is alive at the date of your death, she (or he) will receive that same income for the balance of her (or his) lifetime.
(3) Option /1 - Joint & 50'70 Survivor. Under this option you would receive a reduced retirement allowance as long as you live with the guarantee that if your beneficiary is alive at the time of your death, she (or he) will continue to receive one-half of the retirement allowance you were receiving at the time of your death. This 50% retirement allowance will continue to your beneficiary as long as she (or he) lives.
Other optional forms of income are available but the ones stated above are the usual options elected. The Retirement System will be pleased to discuss these options with you as you near retirement age so that you will have a greater appreciation of the benefits available to you if you elect one of these options. Details of how these options work are shown in the Section of this booklet devoted to examples. What If I Become Disabled Prior To Becoming Eligible for Retirement? If you become totally and permanently disabled while a Member of the Retirement System, you will receive some benefit depending upon which of the following five categories you fall into. These categories are set out below and are based upon your years of creditable service up to the time of such disability.
(1) If at the time of disability you have not completed 13 years and 3 months of creditable service, you will be entitled to a refund of your own contributions made to the System together with the appropriate interest credits.
(2) If you have completed more than 13 years and 3 months of creditable service but have not yet completed more than 18 years of creditable service you will receive an income
12

calculated as though you had continued to work up to attainment of age 60 but using 75% of the percentages as shown in the Benefit Accrual Table on page 4. (3) If you have completed more than 18 years of creditable service but have not yet completed more than 22 years and 9 months of creditable service you will be entitled to an
income calculated as though you continued to work up to
age 60 using the actual percentages as shown in the Benefit Accrual Table on page 4. (4) If you have completed more than 22 years and 9 months of creditable service but have not yet completed more than 27 years and 6 months of creditable service you will be entitled to receive an income as though you continued to work up to age 65 but using 75% of the percentages as shown in the Benefit Accrual Table on page 4. (5) If you have completed more than 27 years and 6 months of creditable service you will be entitled to an income calculated as though you continued to work up to age 65 using the actual percentages as shown in the Benefit Accrual Table on page 4.
Are There Any Death Benefits Under The System? Yes, there are. Let us first distinguish between the benefits upon death prior to retirement and the benefits upon death after retirement.
If you die prior to retirement and while a Member of the Retirement System:
(a) and you do not have more than 13 years and 3 months of creditable service or have not attained age 60, your beneficiary or estate will receive a refund of your own contributions plus an adjustment for interest; or
(b) If you have attained age 60 and have more than 5 years of creditable service, your beneficiary will be entitled to
13

a monthly income calculated in the same manner as though you retired on the day prior to your death. The benefit is calculated in the same manner as for Service Retirement but is reduced by the appropriate factor varying by your age and your beneficiary's age on the asumption that you retired and chose to receive instead of an income for life, a Joint and 1000/0 Survivor Option as described earlier. (c) If you have more than 13 years and 3 months of creditable service and have not attained age 60 or if you have attained age 60 with more than 22 years and 9 months of creditable service, your beneficiary will be entitled to a monthly income calculated in the same manner as though you had become disabled on the day prior to your death. The benefit is calculated in the same manner as in the previous questions relating to disability benefits but is reduced by an appropriate factor varying by your age and your beneficiary's age on the assumption that you retired for disability and chose to receive instead of an income for life, a Joint and 1000/0 Survivor Option. Upon death after retirement there will be no death benefit payable unless one of the optional forms of benefit has been elected. In this latter case the death benefit will be a refund of contributions in excess of annuity payments made if Option 1 is elected, or if Option 2 or 3 is elected, the death benefit will be a continuation of an income to your beneficiary for life. Do I Receive Any Benefits If I leave The Employ Of The State Before Becoming Eligible For Retirement? Yes, under certain conditions there may be substantial benefits. If the termination is voluntary or involuntary and without prejudice, you may fall into one of the following categories: (1) If you have less than 18 years of creditable service and have not attained age 60 at the time of termination, you will be entitled to a refund of your total contributions made under the System together with an appropriate in-
14

terest credit. However, if you terminate and leave your contribution in the Fund, and return to the employ of the State within four years of the date of termination, you will be eligible for continued membership in the System upon your re-employment and shall not lose credit for the service rendered prior to your date of termination. (2) If you have more than 18 years of creditable service (a) If your termination is voluntary and if you elect to
leave your contributions in the Fund, you will be entitled to receive a retirement allowance at age 60 and before age 62, based upon your creditable service up to the time of termination and the average earnable compensation determined in the years prior to such termination. If you do not file an application for retirement within this two year period you will be entitled to a refund of your total contributions with appropriate interest credits. (b) If your termination is involuntary and without prejudice, you will be entitled to a monthly income commencing immediately, calculated as though you had become disabled on the date of such involuntary separation. The method of determining the amount of the retirement allowance is exactly the same as in the case of disability.
Who Pays For The Benefits? The benefits under the System are paid for jointly by your contributions and contributions made by the State. Your contributions are determined as a percentage of your salary as follows:
(1) If you are a member of Division A and will therefore be entitled to Social Security benefits you will make regular employee contributions equal to 3% of the first $350 of
15

your monthly earnings plus 5% of your monthly earnings which are in excess of $350. (2) If you are a member of Division B and therefore are not entitled to Social Security benefits (this applies only to some members of the System prior to April 1, 1964), you will contribute 5% of your total monthly earnings. In addition to your contributions, the State makes regular contributions in such an amount from year to year as is necessary to keep the System on a sound financial basis and to insure that sufficient funds will always be on hand to payout the benefits to which all members will become entitled.
If I Work Beyond Age 65 May I Continue To Make Contributions? If you stay in the employ of the State beyond age 65 you will not be required to make any further contributions. However, you may continue your contributions if you so desire. In the event that you choose to continue your contributions beyond age 65, you will receive an additional income based upon these contributions made after age 65. In effect, the contributions will constitute a savings fund for you and will be credited with interest up to the time of retirement. Instead of receiving these contributions in the form of monthly payments, you may elect to take them as a Lump Sum payment. May I Name A Beneficiary Of My Own Choice? Yes. Since there are substantial benefits payable in the event of your death before or after retirement you should designate a
16

beneficiary so that the Retirement System will be able to make the necessary payments after your death according to the terms of the System. In the absence of a living beneficiary any proceeds to which you are entitled under the terms of the System will be paid to your estate. You may, at any time before retirement, change your beneficiary by written application on a form prescribed for this purpose. How Is The System Being Funded? Your contributions and the contributions made by the State are deposited into a Fund which has been established solely for this purpose. The money so accumulated in this Fund will not be used for any other purpose than to pay the benefit to you or your beneficiary under the terms of the System. This money is invested with extreme prudence in various securities after a great deal of analysis as to the ultimate safety of the investment chosen. This will assure you that sufficient funds will always be available to meet the benefits becoming due under the System. In addition to the security afforded by prudent investment, the assets and liabilities of the System are audited each year by an independent firm of consulting actuaries to insure that the level of contributions made by the State will be sufficient to meet future obligations. How Is The System Administered? The System is administered by a Board of Trustees. It is the function of this Board to authorize the payment of benefits to Members of the System as they become eligible for such benefits. The Retirement System office estimates the amount of benefit to be paid to each Member upon his death, disability, termination, or retirement. However, the final determination of benefits is made by the consulting actuaries at the time of your actual retirement.
17

18

BXAMPlBS AND fABlBS
Explanatory Comments
The Examples set forth on the following pages are not representative of any actual Member of the Retirement System, but are purely hypothetical cases.
The calculation of your Retirement Allowance prior to retirement should only be considered as an estimate. The final determination of benefits is made by the consulting actuaries at the time of your actual retirement.
The Social Security benefits as set forth in the following Examples are based on the Law in effect as of October 1,1964 and are only estimates of your futu1'e payments. (Social Security benefits are paid directly to the individual by the Social Security Administration.)
The following Examples illustrate. the benefits as dete1-mined under the System as amended. All Members of the System prior to April 1, 196J,., who are covered by the Amended System will in no event receive less benefit than they would have received had the System remained unchanged.
The percentages for age combinations not shown on Table 2 will be supplied upon request. These percentages a1'e based on actuarial tables which depend on estimates of interest and mortality rates. Some changes may be found necessary if these underlying estimates change through time.

BXAMPIB 1
Service Retirement Employee "A", who became a member of the Retirement System
at age 25, retires at age 65. His average earnable compensation
over the 5 highest completed consecutive fiscal earning periods is
$500 monthly. His monthly retirement allowance would be calculated as follows:

(1) Age at Membership In System

25 Years

(2) Years of Creditable Service from Membership into System to Age 65 . . . . . . .

40 Years

(3) Benefit Rate applicable to first $350

of Average Earnable Compensation

from Benefit Accrual Table on page 4 . . . . . .

52%

52% of $350 =

$182.00

Plus

(4) Benefit Rate applicable to Average Earnable

Compensation Over $350 from Benefit

Accrual Table on page 4

88%

88% of $150 =

$132.00

(5) Monthly Retirement Allowance....................

. .. $314.00

(6) Estimated Primary Social Security Benefit. . . . ... . .

$127.00

(7) Total Monthly Income at Retirement. . .

$441.00

Employee "A" elects to take his retirement allowance under Option 2 (Joint & 100% Survivor) in order to provide an equal Retirement Allowance to his wife after his death. Assume his wife is 5 years younger
than he:

Instead of receiving $314 for life, his monthly retirement al-

lowance under Option 2 will be 314.00 times 68% (see Table 2

on Page 28)

$213.52

If his wife is still living upon his death, she will receive the same amount for the rest of her life.

1
20

I
EXAMPLE 2
Service Retirement Employee "B", who became a member of the Retirement System at age 52 retires at age 62. His average earnable compensation over the 5 highest completed consecutive fiscal earning periods is $300 monthly. His monthly retirement allowance would be calculated as follows:

I.

(1) Age at Membership In System

" 52 Years

(2) Years of Creditable Service from Membership Into System to Age 62 ............. 10 Years

(3) Benefit Rate applicable to first $350 of Average Earnable Compensation from Benefit Accrual Table on page 4

7% of $300 ==

.

7% $21.00

(4) Monthly Retirement Allowance

21.00*

Employee "B" does not choose to elect an optional form of income; therefore, his retirement allowance will cease upon his death.

This income is independent of any Social Security benefit to which he will become entitled.

l
21

BXAMPIB 3
Service Retirement
Employee "C", who became a member of the Retirement System at age 25, retires at age 60. Her average earnable compensation over the 5 highest completed consecutive fiscal earning periods is
$400 monthly. Since Employee "c" is age 60 with more than 35
years of creditable service, her retirement allowance is calculated as though she were age 65, in the following manner:

(1) Age at Membership in System

25 Years

(2) Years of Creditable Service from Membership Into System to Age 65 . . . . . .. . .. . . 40 Years

(3) Benefit Rate applicable to first $350

of Average Earnable Compensation

from Benefit Accrual Table on page 4 . . . . . .

52%

52% of $350 =

$182.00

Plus

(4) Benefit Rate applicable to Average Earnable

Compensation Over $350 from Benefit

Accrual Table on page 4

. . . . . . . . . . . 88%

88% of $50 =. . . . . . . . . . .

$ 44.00

(5) Monthly Retirement Allowance ....

. . . . . . . . . . . .. $226.00

Employee "C" elects to take her Retirement Allowance under Option I, which is payable during her lifetime with the provision that if she dies before having received the amount of her own contributions credited to her at her date of retireml!nt, the balance of such amount will be paid to her beneficiary.

Her monthly Retirement Allowance under this Option is

therefore .

.

$219.10*

*This income is independent of any Social Security benefit to which she will become entitled.

22

IXAMPll1
Service Retirement
Employee "D", who became a member of the Retirement System
at age 40, retires at age 70. His average earnable compensation over the 5 highest completed consecutive fiscal earning periods is $600 monthly. His monthly retirement allowance would be calcu-
lated as follows:

(1) Age at Membership in System

40 Years

(2) Years of Creditable Service from Membership Into System to Age 65

25 Years

(3) Benefit Rate applicable to first $350 of Average Earnable Compensation from Benefit Accrual Table on page 4 . . . . . . . . . . .. . . . . .
28% of $350 =

28% $ 98.00

Plus

(4) Benefit Rate applicable to Average

Earnable Compensation Over $350

from Benefit Accrual Table on page 4

47%

47% of $250 = .. .

$117.50

(5) Monthly Retirement Allowance ..

.

$215.50

(6) Estimated Primary Social Security Benefit

$127.00

(7) Total Monthly Income at Retirement

$342.50

Employee "0" elects to take his retirement allowance under Option 3 (Joint & 50% Survivor) in order to provide one half Retirement Allowance to his wife after his death. Assume his wife is 5 years younger than he:

Instead of receiving $215.50 for life, his monthly retirement

allowance under Option 3 will be $215.50 times 78%

. $168.09

If his wife is still living upon his death, she will receive one

half of this for the rest of her life, that is

$ 84.05

Employee "0" has made contributions of $1,100, including interest, from age 65 to his date of retirement. He may elect to take this amount in a Lump Sum payment or in the form of monthly payments in addition to his
retirement allowance. The amount that this $1,100 will provide him each month will depend upon the form of payment which he chooses to elect.

23

IXAMPl15
Death Prior To Retirement
Employee "E" becomes a member of the Retirement System at age 25 and dies at age 55. His average earnable compensation over the 5 highest completed consecutive fiscal earning periods is $400 monthly. Since Employee "E" has 30 years of creditable service at his death, his retirement allowance is calculated as though he were age 65 with full credits, in the following manner:

(1) Age at Membership in System

25 Years

(2) Years of Creditable Service from Membership Into System to Age 65

40 Years

(3) Benefit Rate applicable to first $350 of

Average Earnable Compensation from

Benefit Accrual Table on page 4

52%

52% of $350 =

$182.00

Plus

(4) Benefit Rate applicable to Average Earn-

able Compensation Over $350 from Bene-

fit Accrual Table on page 4 . . . . . . . .. .. . . . .. . .

88%

88% of $ 50 =

. . . . . . ..

. " $ 44.00

(5) Monthly Retirement Allowance

$226.00

Since Employee "E" died prior to retirement, his wife will receive a retirement allowance as if he had elected Option 2 (Joint & 100% Survivor) to provide an equal amount to her after his death. Assume his wife is 5 years younger than he:

(6) Wife's monthly Retirement Allowance for life is therefore

$226.00 times 68% (see Table 2 on page 28)

$153.68*

NOTE: This member's age and his beneficiary's age are projected to
his retirement age of 65; therefore, his beneficiary is assumed to be age 60.

*This income will be in addition to any survivor's benefits to which the wife is entitled under the Social Security provisions.

24

BXAMPIB 6
Disability Retirement
Employee "F" who became a member of the Retirement System at age 30, becomes disabled at age 50. Her average earnable compensation over the 5 highest completed consecutive fiscal earning periods is $350 monthly. Since Employee "F" has 20 years of creditable service at the time of her disability her retirement allowance is calculated as though she were age 60 with full credits, in the following manner:

(1) Age at Membership in System

30 Years

(2) Years of Creditable Service from Membership into System to Age 60

30 Years

(3) Benefit Rate applicable to first $350 of Average Earnable Compensation from Benefit Accrual Table on page 4 ..
27% of $350 =

27% $ 94.50

(4) Monthly Retirement Allowance "

. $ 94.50*

Employee "F" does not choose to elect an optional form of income; therefore, her retirement allowance will cease upon her death.

*This income is independent of any Social Security benefit to which she will become entitled.

25

BXAMPLB 7
Death Prior To Retirement But After Age 65 Employee uG", who became a member of the Retirement System at age 45, dies at age 70. His average earnable compensation over the 5 highest completed consecutive fiscal earning periods is $500 monthly. His monthly retirement allowance would be calculated as follows:

(1) Age at Membership in System ..

45 Years

(2) Years of Creditable Service from Membership Into System to Age 65

20 Years

(3) Benefit Rate applicable to first $350

of Average Earnable Compensation

from Benefit Accrual Table on page 4

21%

21% of $350 =

$ 73.50

Plus

(4) Benefit Rate applicable to Average

Earnable Compensation Over $350

from Benefit Accrual Table on page 4 ..

35%

35% of $150 =

.

$ 52.50

(5) Monthly Retirement Allowance

$126.00

Since Employee "G" died prior to retirement, his wife will receive a retirement allowance as if he had elected Option 2 (Joint & 100% Survivor)
to provide an equal amount to her after his death. Assume his wife is 10 years younger than he:

(6) Her monthly Retirement Allowance for the rest of her life

is therefore $126.00 times 58% ..

...........

.. $ 73.08*

Contributions made by Employees "G" from age 65 to his date of death will be paid to his wife in the form of a Lump Sum payment.

*This income will be in addition to any survivors' benefits to which the wife is en. titled under the Social Security provisions.

26

27

TABLE
fADIB SHOW/N(} PBRCBNfA(}BS APPI/CADIB

The percentages shown in these Tables illustrate the proportion of the basic retirement allowance which will be payable to a Member who has elected a Joint & Survivor Option (Option 2 - Option 3).

Female Beneficiary's

Retiring Male
Member
65 64 63 62 61 60

35
Option
#2 #3 %%
47 64 48 65 50 66 51 68 53 69 55 70

40
Option
#2 #3 %%
49 66 51 67 53 69 54 70 56 72 57 73

45
Option
#2 #3 %%
53 69 54 70 56 72 58 73 59 74 61 76

50
Option
#2 #3 %%
57 72 59 74 60 75 62 77 64 78 66 79

55
Option
#2 #3 %%
62 76 64 78 65 79 67 80 69 82 71 83

Retiring Male
Member
65 64 63 62 61 60

35
Option
#2 #3 %%
49 66 51 67 53 69 54 70 56 72 57 73

40
Option
#2 #3 %%
53 69 54 70 56 72 58 73 59 74 61 76

45
Option
#2 #3 %%
57 72 59 74 60 75 62 77 64 78 65 79

Male Beneficiary's

50
Option
#2 #3 %%

55
Option
#2 #3 %%

62 76 64 78 65 79 67 80 69 81 70 83

67 80 69 81 71 83 72 84 74 85 76 86

Male Beneficiary's

Retiring Female Member
65 64 63 62 61 60

35
Option
#2 #3 %%
57 73 59 74 61 75 63 77 64 78 66 79

40
Option
#2 #3 %%
61 76 63 77 65 78 66 80 68 81 70 82

45
Option
#2 #3 %%
65 79 67 80 69 82 71 83 73 84 74 85

50
Option
#2 #3 %%
70 82 72 84 74 85 76 86 77 87 79 88

55
Option
#2 #3 %%
76 86 77 87
. 79 88
81 89 82 90 84 91

Female Beneficiary's

Retiring Female Member
65 64 63 62 61 60

35
Option
#2 #3 %%
54 70 56 72 58 73 59 74 61 76 63 77

40
Option
#2 #3 %%
57 73 59 74 61 75 63 77 64 78 66 79

45
Option
#2 #3 %%
61 76 63 77 65 78 66 80 68 81 70 82

50
Option
#2 #3 %%
65 79 67 80 69 82 71 83 73 84 74 85

55
Option %%
#2 #3
70 82 72 84 74 85 76 86 78 87 79 88

28

2
UNDIR JOINT & SURVIVOR OPTIONS

Age
60 Option #2 #3 %%
68 81 70 82 71 83 73 84 75 85 76 86
Age
60 Option #2 #3 %%
73 84 75 85 76 86 78 87 79 88 81 89
Age
60 Option #2 #3 %%
81 89 83 90 84 91 85 92 87 93 88 93
Age
60 Option #2 #3 %%
76 86 78 87 80 88 81 89 83 90 84 91

65 Option #2 #3 %%
74 85 76 86 77 87 79 88 81 89 82 90
65 Option #2 #3 %%
79 88 80 89 82 90 83 91 84 91 86 92
65 Option #2 #3 %%
86 92 87 93 88 94 89 94 90 95 91 95
65 Option #2 #3 %%
82 90 84 91 85 92 86 92 88 93 89 94

70 Option #2 #3 %%
81 89 82 90 84 91 85 92 86 92 87 93
70 Option #2 #3 %%
85 91 86 92 87 93 88 93 89 94 90 94
70 Option #2 #3 %%
90 95 91 95 92 96 93 96 94 96 94 97
70 Option #2 #3 %%
88 93 89 94 90 94 91 95 92 95 93 96

75 Option #2 #3 %%
87 93 88 93 89 94 90 95 91 95 92 95
75 Option #2 #3 %%
90 93 91 94 91 94 92 95 93 96 93 96
75 Option #2 #3 %%
94 97 94 97 95 97 96 97 96 98 96 98
75 Option #2 #3 %%
92 96 93 96 93 96 94 97 95 97 95 97

?q

fABLE 3

Ust of Departments Which Began Making Contributions After July 1, 1953

State Departments

Date of Firat Contributions

Agriculture. "

'"

, . . . .. . .. . . . . . . .. . . . . .. 1/1/54

Board of Probation and Parole

4/1/58

Budget Bureau.. . ..

4/1/62

City Courts. .. . .. . . . . . . . . . . .. . .. .. . . . . . . .. .. .. 7/1/54

Commission on Aging.....

4/1/63

Comptroller General.......................................... 2/1/54

Corrections - Prisons. . . . . ... .. . . ... . . . .. . ..

. . . .. 7/1/61

Employees' Health Insurance Service

5/1/62

Executive Department....

1/1/57

Forest Research Council

1/1/63

Forestry

1/1/54

Forestry (2nd Group)

1/1/58

Game and Fish Commission.................................. 4/1/56

Governor's Committee for Efficiency and Improvement in Government

11/1/63

Industry and Trade

10/1/57

Jekyll Island Commission.

.

4/1/58

Milk Control Board.......

1/1/55

Pardons and Paroles..... . .. ..

1/1/54

Parks Department

1/1/56

State Board of Pharmacy

. . . . . . .. . . . . . . . ..

4/1/55

State Office Building Authority..

7/1/56

Tax Officials - Revenue Department. . . . . . .. .

. . .. 4/1/59

Veterans Service

1/1/56

Warm Springs Memorial........

1/1/59

Workmen's Compensation

" . . . . . . . . . . . .. . . . .. . . . .. 9/1/53

*Exception on those eligible under law who paid back contributions.

30

BST/MATB fOUB BBT/BBMlNT AIIOWANCB
This worksheet will guide you in estimating the Retirement Allowance you will receive if you retire at age 65. This retirement allowance will be payable for life unless one of the Optional Forms is elected.
The illustration in the final column is that of Employee "A", il-
lustrated on page 20; his "Average Earnable Compensation" was $500 monthly, and he had 40 years of creditable service upon his retirement at age 65.

Your

Example:

Calculations Employee "A"

1. Calculate your "Average Earnable Compensation." Total your compensation for the five consecutive fiscal years which provide the highest average out of your years as an employee of the State in any capacity, then
divide by 60.

AVERAGE MONTHLY COMPENSATION ... $

$ 500.00

2. Count your "Years of Creditable Service" To Age 65 ................................

40 Years

Enter the Benefit Accrual Table on Page 4 for the appropriate percentages, according to your years of creditable service in Item 2 above and retirement age 65.

3. PERCENTAGE APPLICABLE TO

FIRST $350 OF EARNINGS ................ - - %

52%

4. PERCENTAGE APPLICABLE TO

EARNINGS IN EXCESS OF $350 ............ - _ %

88%

Calculate your Monthly Retirement Allowance

5. MULTIPLY YOUR FIRST $350 OF EARN INGS BY ITEM (3) .............. $

$ 182.00

6. MULTIPLY YOUR EARNINGS IN

EXCESS OF $350 BY ITEM (4) ......

$

$ 132.00

+ 7. MONTHLY RETIREMENT ALLOWANCE [Item (5) Item (6)]

$

$ 314.00

8. ESTIMATE THE SOCIAL SECURITY BENEFITS YOU WILL START RECEIVING AT AGE 65 .................... $

$ 127.00

+ 9. TOTAL MONTHLY RETIREMENT INCOME [Item (7) Item (8)] .........

$

$ 441.00

31

32