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THE 100% SOLUTION Maximizing Your Pension: How to Retire with 100% of Final Compensation

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.

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THE 100% SOLUTION Maximizing Your Pension: How to Retire with 100% of Final Compensation

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  1. THE 100% SOLUTIONMaximizing Your Pension:How to Retire with 100% of Final Compensation Presented by: Tax Deferred Services 457 Plan Administrator 408.978.1000

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

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

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

  5. Available Savings Plans • 457 Plan • 403(b) - TSA • Roth 403(b)

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

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

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

  9. Windfall Elimination Provision • Reduces a Members Social Security Benefit by calculating their benefit under a formula • Reduction will be a Maximum of 55.56% • No reduction in benefit will result for members with 30 or more years of “Substantial Earnings” under Social Security

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

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

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

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