THE 100 SOLUTION Maximizing Your Pension How to

THE 100% SOLUTION Maximizing Your Pension: How to Retire with 100% of Final Compensation Presented by: Tax Deferred Services 457 Plan Administrator 408. 978. 1000

No. 1 Goal Help every employee retire with 100% of final compensation. “Your first retirement income check should look like your last paycheck!”

Statutory Retirement Plans STRS/PERS pension is designed to replace how much of your current income? 60% – 65%

Retirement Income Other Income Sources: 1. Part-time work 2. Inheritance 3. Savings Plans

Available Savings Plans l l l 457 Plan 403(b) - TSA Roth 403(b)

STRS/ PERS QUESTIONS Have you estimated your pension income at a desired retirement age? l Have you looked into buying “Air time”? l Have you considered buying out of state time? l Have you estimated your SS Income? l

STRS Basics l Age x Years x Compensation= income l Formula multiplier maximized at 61 ½ years of age with 30 years of service (or) l At age 63 with 5 years of service or more

PERS Basics l Age, Years of Service, Compensation = percentage of Income Payout l Formula Change in Jan 2001 no longer offsetting for SSI l 100% Income Payout at 40 years of service

Windfall Elimination Provision Reduces a Members Social Security Benefit by calculating their benefit under a formula l Reduction will be a Maximum of 55. 56% l No reduction in benefit will result for members with 30 or more years of “Substantial Earnings” under Social Security l

Government Pension Offset Affects members expecting to receive a Social Security benefit as a spouse, former spouse, widow or widower: l Social Security Benefit is reduced by 2/3 of the Cal. STRS retirement benefit l If 2/3 of the Cal. STRS benefit exceed the amount of Social Security spousal benefit, then no benefit will be paid from the SSB.

In Summary STRS/PERS (60 -65%) PLUS (+) 403 b/457 b Savings Plan (35 -40%) EQUALS (=) 100% SOLUTION

Your Plan Administrator Provides personal counseling at: Your Work Site - Your Home - Our Office www. tdsgroup. org