Pension Comparison

Pension comparison presented at General Meeting

The three comparisons show the improvement for a 25 year General Fund employee between the current pension plan and the plan under consideration. It also compares the benefit under the new plan with the current Police plan. Notice the benefit is almost equal. This is because the Police have an age penalty the the General Fund employee avoids due to the Rule of 75. Of course different ages and years of service would result in different benefits, but overall, the plans have been greatly leveled.

 

Pension Comparison:


Employee Name:General Employee-Age 50

Approximate Years of Service:25

Approximate Avg 3 year Salary:$40,000






Old DB PlanNew DB PlanCity of Atlanta Police


General Employee
Vesting Period in Years:151015


$40,000 $40,000
% Multiplier:2% times # of years served2.5% times # of years served3% times # of years served








Retirement Penalty:45% PenaltyNO Penalty15% Penalty
6% Penalty for each year (5)30% Penalty (55-60)

3% Penalty for each year (3.2))15% Penalty (50-55)





Date of Retirement W/0 Penalty:2015NOW2010
Earlier Retirement in Years:0105








Annual Retirement Salary Benefit:$11,000 $25,000$25,500
(Retiring 09/22/2004)No Cap80% Cap80% Cap
Replacement % of Original Salary: 27.5%62.5%63.8%




Difference in Annual Retirement Benefit:$0$14,000$14,500




20 Year Differential (Life Expectancy):$0$280,000$290,000








20 Year Total Payout (S/L):$220,000 $500,000 $510,000












Average Employee Increased Benefit over 20 years$280,000





Approximage Cost to City for Pension Improvements:$ 18,900,000

10 Year Vesting$ 300,000

Rule 75$ 5,400,000

2.5% Multiplier$ 13,200,000

 

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