tier 1 retirement benefits davis school district retirement benefits orientation
TRANSCRIPT
Tier 1 Retirement Benefits
Davis School DistrictRetirement Benefits Orientation
If you were hired into a retirement eligible position by a Utah Retirement Systems (URS) employer anytime before July 1, 2011 you are on Tier 1. Continue with this presentation. If you were newly hired into a retirement eligible position on or
after July 1, 2011 your are on Tier 2. Please exit and view that presentation.
Welcome Employees – Tier 1
We keep the Payroll webpage up-to-date with the latest news, deadlines and other important things you need to know.
Retirement Benefits: Tier 1
Pension The District fully funds your
retirement benefit (pension)
You are eligible for this benefit at NO COST TO YOU as long as you are working 30+ hours per week (20+ hours per week if you qualify for grandfathering protection)
You are fully vested after 4 years of eligible employment
401(k) The District will contribute 1.5%
of your salary to your 401(k) each month as long as you are eligible for retirement benefits
You can also contribute to your 401(k) but you are not required to
How Much Will My Pension Pay?
Pension Benefit Calculation
Number of Eligible Years of Service
X
2%
X
Average Salary
(average of 3 highest years salary)
=
Basic Annual Benefit
/12
=
Basic Monthly Benefit
Example
30 Years
X
2% (=60%)
X
$40,000
(average of 3 highest years salary)
=
$24,000/year
/12
=
$2,000/month
When Can I Retire? Your pension eligibility depends on
your age and years of service. Here are the minimum qualifications: 65 with at least 4 years of service
62 with at least 10 years of service*
60 with at least 20 years of service*
Any age with at least 25 years of service*
Any age with at least 30 years of service
*There is an early age reduction if you retire under age 65 with fewer than 30 years of service
Early Age Reduction
If you have fewer than 30 years of service and you retire before age 65, your benefit is reduced. You’ll get 3% less for every year between age 60 and 65 and 7% less per year for every year below age 60.
401(k) OptionsYou can choose where and how your 401(k) money is
invested
PLEASE NOTE:If you have already
received a paycheck,Educators Mutual willnot be an option until next year (JANUARY).If you would like to
make a change at that time, please notify the
Payroll Departmentno later thanJANUARY 15th.
All URS 401(k) contributions will be
invested in the Medium Horizon Fund unless otherwise specified.
401(k)
457
403(b) – Annuities
Traditional IRA
Roth IRA
You can contribute to none, one or more. The choice is yours.
Employee Contributions (Voluntary)
11
22
33
44
55
Consider your tax bracket before and after retirement:Pre-tax Deductions
Lower your taxable income NOW• 401(k)• 457• 403(b)• Traditional IRA
Post-tax Deductions Pay your taxes now
• Roth IRA (Tax free growth)
Which Investment PlanShould I Choose?
For a complete listing of the Annuity companies and representatives that are authorized to provide 403(b)’s and other
investment options to Davis School District employees, please contact the Payroll Department at 801-402-5282.
Authorized Annuity Companies
www.urs.org
Tier 1
Your URS Account Number starts with a “W”. It will be on your Welcome Letter,
which will be included with theUtah Retirement Systems Enrollment
PacketURS will mail to you.
Call Payroll: (801) 402-5282
Questions?
Scott Douglas: (801) 402-5325 Payroll Director
Marilyn Daley: (801) 402-5327 Payroll Supervisor Administrative Interns Extended Leave and Catastrophic Leave Military Leave
Cindy Chambers: (801) 402-5324 Worker’s Comp Extra Duty Pay Retirement and 401(k)
Elizabeth Ward: (801) 402-5236 Part-time Personnel Actions Flexible Spending District Daycare Workforce Services Employment Verifications
Holly Thurgood: (801) 402-5176 Retirement and 401(k)
Laki Leota: (801) 402-5282 Direct Deposit W-4s Child Support myDSD Payroll Management Miscellaneous Payroll Deductions
Nicki Nef: (801) 402-5348 Garnishments Tax Levies
Twyla Coleman: (801) 402-5326 Full-time Personnel Actions Vacation, Personal Leave and Sick Leave ROTC
Thank You!