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HomeMy WebLinkAbout2011 02 22 Other - Example of Early Retirement Income Calculation Board of Trustees Special Meeting February 22, 2011 The attached documents were distributed as an example of the City of Winter Springs Early Retirement Income Calculation. GRS Gabriel Roeder Smith & Company One East Broward Blvd. 954.527.1616 phone Consultants & Actuaries Suite SOS 954.525.0083 fax rt. Lauderdale, Ft, 33301-1804 www.gabrielroeder.com September 7, 2010 Ms. Mary Wilson Human Resources Coordinator City of Winter Springs 1126 East State Road 434 Winter Springs, Florida 32708 Re: AMR Dear Mary: As requested, please find enclosed three (3) copies of our Calculation of Early Retirement Income dueling. under the City of Winter Springs Retirement Plan based upon a date of retirement of September 30, 2010 and a benefit commencement date of October 1, 2010. monthly benefit options commencing October 1, 2010 may be summarized as follows: Form of Payment Monthly Retirement Income • Life annuit $ 2,899.29 • Ten (10 ears certain and life $ 2,836.67 • Joint and contingent - 75% $ 2,487.59 - 50% $ 2,611.10 If you should have any question with regards to the above, please do not hesitate to contact us. Sincerest regards, o' , Lawrence F. Wilson, A.S.A. Senior Consultant and Actuary Enclosures cc: Mr. Shawn Boyle CITY OF WINTER SPRINGS RETIREMENT PLAN Calculation of Early Retirement Income 1. Name 2. Social Security number XXX -XX11111, 3. Date of birth - Participant July 16, 1955 - Beneficiary, ) July 26, 1982 - Beneficiary, July 26, 1982 4. Date of employment April 20, 1995 5. Date of participation October 1, 1996 6. Last date worked September 30, 2010 7. Unreduced early retirement date October 1, 2010 8. Normal retirement date August 1, 2020 9. Age as of early retirement date, October 1, 2010 - Participant 55.250 years - Beneficiary, 28.167 years - Beneficiary, 111111111111111111111 28.167 years 10. Credited service as of September 30, 2010 15 years 11. Final average monthly compensation as of September 30, 2010 $ 6,442.87 Period Earnings 10/01/2009 - 09/30/2010 $ 83,382.45 10/01/2008 - 09/30/2009 75,788.88 10/01/2007 - 09/30/2008 72,772.16 $ 231,943.49 12. Monthly accrued benefit as of September 30, 2010 ($6,442.87 x 3.00% x 15.000 years) $ 2,899.29 13. Monthly retirement income payable to the participant for life, commencing as of early retirement date, October 1, 2010 $ 2,899.29 Gabriel Roeder Smith &; Company September 30, 2010 Alan Hill 14. Monthly retirement income payable to the participant for ten (10) years certain and life thereafter, commencing October 1, 2010 ($2,899.29 x 0.9784) $ 2,836.67 15. Monthly retirement income payable to the participant during the participant's lifetime under the joint and contingent form of payment with 50% of a percentage continuing to each beneficiary immediately following the participant's death and continuing thereafter during the remaining lifetime of each beneficiary, commencing October 1, 2010 (a) Joint and 75% contingent ($2,899.29 x 0.8580) $ 2,487.59 (b) Joint and 50% contingent ($2,899.29 x 0.9006) $ 2,611.10 This calculation is based upon information provided by the City of Winter Springs and the provisions of the City of Winter Springs Retirement Plan. Calculated by: Gabriel, Roeder, Smith & Company Actuaries for the Plan This calculation is subject to correction. If you are or become aware of errors in the data that was used, the calculations that were made, or the Plan provisions that were applied, it is your responsibility to contact the Plan Administrator. The Plan has the right to recover from you amounts that were paid to you in error. Gabriel Roeder Smith Ar. Company CITY OF WINTER SPRINGS RETIREMENT PLAN Notification of Early Retirement Income Participant's Name: 4111MIRA Social Security' No: XXX -XXi You are eligible for a Retirement Benefit from the Plan. Your benefit is payable at the beginning of each month commencing October 1, 2010. The amount of your monthly benefit depends on the optional form of annuity which you choose. Please initial the one optional annuity form listed below which you elect to receive: 1. STRAIGHT LIFE ANNUITY: This option provides monthly payments of $2,899.29 to you as long as you live. 2. TEN YEAR CERTAIN AND LIFE THEREAFTER ANNUITY: This option provides monthly payments of $2,836.67 to you as long as you live. If you should die before 120 monthly payments have been made, $1,418.34 will continue to be paid to each beneficiary until a total of 120 monthly payments have been made. 3. 100% JOINT AND CONTINGENT ANNUITY: This option provides monthly payments of N/A to you as long as you live. Your designated beneficiaries, if living at the time of your death, will receive a monthly benefit in the amount of N/A each for the remainder of his/her lifetime. 4. 75% JOINT AND CONTINGENT ANNUITY: This option provides monthly payments of $2,487.59 to you as long as you live. Your designated beneficiaries, if living at the time of your death, will receive a monthly benefit in the amount of $932.85 each for the remainder of his/her lifetime. 5. 50% JOINT AND CONTINGENT ANNUITY: This option provides monthly payments of $2,611.10 to you as long as you live. Your designated beneficiaries, if living at the time of your death, will receive a monthly benefit in the amount of $652.78 each for the remainder of his/her lifetime. The amounts above are based on the following information: Your Date of Birth: July 16, 1955 Date of Employment: April 20, 1995 Date of Retirement: October 1, 2010 Years of Credited Service: 15 Final Average Monthly Salary: $ 6,442.87 , Beneficiary Name: Beneficiary Date of Birth: July 26, 1982 Beneficiary Name: • Beneficiary Date of Birth: July 26, 1982 The Contingent Annuity benefit amounts shown above, if any, are based on the beneficiaries named above and are payable only to these beneficiaries. BOARD OF TRUSTEES: By: DATE: I accept the terms above, including my choice of annuity form, and confirm the information shown above to be correct. PARTICIPANT'S SIGNATURE: DATE: Calculation Date: September 7, 2010 This calculation is subject to correction. If you are or become aware of errors in the data that was used, the calculations that were made, or the Plan provisions that were applied, it is your responsibility to contact the Plan Administrator. The Plan has the right to recover from you amounts that were paid to you in error.