City

of C

hatta

noog

aG

ener

al P

ensi

on P

lan

and

Ret

irem

ent H

ealth

Ben

efits

Gen

eral

Pen

sion

Pla

n

Purp

ose

of th

e Pl

an

“The

Pla

n is

des

igne

d to

pro

vide

a li

fetim

ein

com

e af

ter r

etire

men

t. It

als

o of

fers

opt

iona

lbe

nefit

pay

men

ts to

des

igna

ted

bene

ficia

ries.

The

Pla

n’s b

enefi

ts a

re se

para

te fr

om a

nyot

her r

etire

men

t pla

n.”

-- fr

om th

e G

ener

al P

ensi

on P

lan

book

let

Who

par

ticip

ates

?

•Pe

rman

ent e

mpl

oyee

s of t

he C

ity o

fC

hatta

noog

a•

Incl

udes

ele

cted

offi

cial

s•

Doe

s not

incl

ude

–Se

ason

al o

r tem

pora

ry e

mpl

oyee

s–

Swor

n fir

e an

d po

lice

empl

oyee

s●

they

hav

e a

sepa

rate

pen

sion

pla

n–

Part

time

empl

oyee

s wor

king

< 1

,000

hou

rs p

er y

ear

–Pe

rson

s pro

vidi

ng se

rvic

e un

der a

con

tract

Who

Adm

inist

ers t

he P

lan?

•Se

ven

mem

ber G

ener

al P

ensio

n Pl

an B

oard

appo

inte

d by

the

May

or•

Firs

t Ten

ness

ee B

ank

is cu

stodi

an o

f the

Pla

n–

Ove

rsee

s the

fund

s–

Pays

the

bene

fits

•Ci

ty o

f Cha

ttano

oga

Hum

an R

esou

rces

–Re

cord

-kee

per

–Co

ntac

t for

retir

emen

t ben

efits

anal

ysis,

pla

nin

form

atio

n, a

nd a

dmin

istra

tion

of c

hang

es

Feat

ures

of t

he P

lan

•D

efine

d B

enefi

t Pen

sion

Pla

n •

Form

ula

base

d on

age

, ave

rage

of t

hree

hig

hest

cale

ndar

yea

r ear

ning

s, an

d se

rvic

e cr

edits

●Pe

nsio

n se

rvic

e cr

edits

are

ear

ned

mon

thly

, up

to 1

2 pe

r yea

r, to

dete

rmin

e th

e ye

ars o

f ser

vice

in th

e pl

an

•R

equi

res c

ontri

butio

ns o

f 2%

of e

arni

ngs

•Ve

sted

afte

r 60

serv

ice

cred

its e

arne

d

Whe

n m

ay I

retir

e?

•N

orm

al re

tirem

ent a

ge is

62

with

full

bene

fits

•Ea

rly re

tirem

ent,

with

redu

ced

bene

fits,

may

com

men

ce b

egin

ning

at a

ge 55

Except, R

ule

of 8

0 al

low

s a p

artic

ipan

t to

retir

e w

ithfu

ll be

nefit

s be

fore

age

62

if th

e su

m o

f age

and

serv

ice

cred

its is

80

or m

ore.

Wha

t are

the

bene

fit o

ptio

ns?

•Ba

sic L

ife A

nnui

ty•

5 O

ptio

nal f

orm

s of p

aym

ent

–Li

fe A

nnui

ty w

ith 1

20 P

aym

ents

Certa

in–

Join

t and

100

% C

ontin

gent

Ann

uity

–Jo

int a

nd 5

0% C

ontin

gent

Ann

uity

–M

odifi

ed Jo

int a

nd 1

00%

Con

tinge

nt A

nnui

ty–

Mod

ified

Join

t and

50%

Con

tinge

nt A

nnui

ty•

DRO

P pa

ymen

t with

26

year

s of s

ervi

ce

Wha

t is t

he D

ROP?

•D

efer

red

Ret

irem

ent O

ptio

n Pl

an•

Mus

t hav

e at

leas

t 26

year

s of s

ervi

ce to

hav

e th

e op

tion

•A

llow

s par

ticip

ant t

o co

nver

t a p

ortio

n of

the

mon

thly

ben

efit

to a

lum

p su

m c

ash

paym

ent

•Re

duce

s the

orig

inal

mon

thly

ben

efit p

aym

ent

•Ca

sh p

aym

ent i

s tax

able

imm

edia

tely

unl

ess i

t is t

rans

ferre

d to

a re

tirem

ent a

ccou

nt, f

or e

xam

ple,

a C

ity 4

57b

acco

unt o

r aTr

aditi

onal

IRA

CA

SH +

Mon

thly

Ben

efit!

Wha

t if I

term

inat

e em

ploy

men

tbe

fore

I re

tire?

•N

ot v

este

d –

cont

ribut

ions

are

refu

nded

as a

lum

p su

m o

r tra

nsfe

rred

into

an

IRA

or n

ewem

ploy

er’s

pla

n as

requ

este

d•

Vest

ed–

Ben

efit i

s pay

able

at 6

2 ,o

r, if

desi

red,

as e

arly

retir

emen

t on

or a

fter a

ge 5

5–

Rul

e of

80

may

still

app

ly–

May

requ

est r

efun

d or

tran

sfer

of c

ontri

butio

ns;

this

term

inat

es th

e re

tirem

ent b

enefi

t with

the

City

Wha

t if I

die

bef

ore

retir

emen

t?

•N

ot v

este

d –

bene

ficia

ryre

ceiv

es re

fund

of c

ontri

butio

ns•

Vest

ed --

ben

efici

ary

choo

ses

-Ref

und

of c

ontri

butio

ns-T

en y

ear a

nnui

ty b

ased

on

your

earn

ings

and

serv

ice

●O

r, be

nefit

s are

pai

d ba

sed

on y

our

pre-

retir

emen

t ele

ctio

n

Wha

t if I

bec

ome

disa

bled

?

•Ci

ty a

nd P

lan

toge

ther

pay

pre

miu

ms t

opr

ovid

e a

com

mer

cial

LTD

pol

icy

•Co

vers

on-

job

and

non-

job

rela

ted

disa

bilit

ies

•D

isabi

lity

defin

ition

to q

ualif

y–

Ow

n oc

cupa

tion

for fi

rst t

wo

year

s–

Any

occ

upat

ion

ther

eafte

r•

Book

lets

are

prov

ided

at o

rient

atio

n, a

nd m

aybe

requ

este

d fro

m E

mpl

oyee

Ben

efits

Offi

ce

Wha

t ste

ps c

an I

take

to p

lan

for m

yre

tirem

ent?

•Pl

an a

head

for f

undi

ng y

our r

etire

men

t fro

m se

vera

lso

urce

s – p

erso

nal s

avin

gs, d

efer

red

com

pens

atio

n pl

ans

(457

b), o

ther

sour

ces o

f inc

ome

such

as S

S or

empl

oym

ent,

life

insu

ranc

e, e

tc.

•Pl

an fo

r fut

ure

expe

nses

– d

ebt p

aym

ent,

med

ical

expe

nses

, etc

.

•K

eep

desi

gnat

ed b

enefi

ciar

ies c

urre

nt!

-go

od id

ea to

revi

ew e

ach

year

(Jan

uary

1, o

n yo

ur b

irthd

ay)

•Se

lect

an

optio

nal b

enefi

t whe

n yo

ube

com

e ve

sted

-in

effe

ct u

ntil

retir

emen

t ele

ctio

nm

ade

Con

tact

and

Web

site

Info

rmat

ion

H

uman

Res

ourc

es O

ffice

: 4

23 6

43-7

200

Che

ryl P

owel

l :

423

643

-722

4 http://www.chattanooga.gov/general-pension-plan

QUESTION

S?

http://www.chattanooga.gov/general-pension-plan

Ret

irem

ent

Hea

lth B

enefi

ts

Do

I qua

lify

for r

etire

e he

alth

bene

fits?

•B

asic

crit

eria

to c

ontin

ue h

ealth

ben

efits

into

retir

emen

t–

mus

t hav

e ac

cum

ulat

ed 2

5 ye

ars o

f ser

vice

prio

r to

retir

emen

t, or

–be

at l

east

age

62

with

10

year

s (or

mor

e) o

f con

secu

tive

serv

ice

imm

edia

tely

prio

r to

retir

emen

t•

Mus

t che

ck y

our s

tatu

s at 7

/1/2

010

and

at a

ctua

lre

tirem

ent

–If

bas

ic c

riter

ia m

et a

t ret

irem

ent,

then

qua

lify

for

cont

inua

tion

until

Med

icar

e el

igib

le, and

–If

bas

ic c

riter

ia m

et o

n or

bef

ore

7/1/

2010

, the

n qu

alify

for

cont

inua

tion

for l

ifetim

e

I qua

lify.

Wha

t mus

t I d

o to

reta

inre

tiree

hea

lth b

enefi

ts?

•M

ust e

nrol

l in

cove

rage

whe

n fir

st e

ligib

le–

May

con

tinue

cov

erag

e of

dep

ende

nts a

nd sp

ouse

son

ly if

they

wer

e co

vere

d w

hile

an

activ

eem

ploy

ee in

the

fisca

l yea

r of r

etire

men

t–

If C

ity b

enefi

ts a

re te

rmin

ated

at a

ny ti

me

afte

rre

tirem

ent,

bene

fits c

anno

t be

re-e

nter

ed•

If re

tiree

bec

omes

em

ploy

ed a

t ano

ther

job

offe

ring

cove

rage

, mus

t als

o pu

rcha

se th

atco

vera

ge -

it b

ecom

es p

rim

ary

cove

rage

•M

ust e

nrol

l in

Med

icar

e w

hen

first

elig

ible

Whi

ch re

tiree

hea

lth b

enefi

ts ar

e cu

rrent

lyav

aila

ble?

Med

ical

Ben

efits

•Bl

ueCr

oss B

lueS

hiel

d PP

O P

lan

•Bl

ueA

dvan

tage

Pla

n (c

ompl

emen

tary

to M

edic

are)

Den

tal B

enefi

ts•

Ass

uran

t HM

O•

Blue

Cros

s Blu

eShi

eld

PPO

How

are

retir

ee h

ealth

ben

efits

impl

emen

ted?

•U

nder

age

65

at re

tirem

ent

–M

ay c

ontin

ue o

n th

e Bl

ueCr

oss B

lueS

hiel

d PP

O p

lan

–Pr

emiu

m ra

te is

hig

her t

han

activ

e em

ploy

ee ra

te●

1.5

times

the

activ

e em

ploy

ee ra

te if

25

or m

ore

yrs o

f ser

vice

●w

ith fe

wer

yea

rs o

f ser

vice

the

rate

is h

ighe

r–

At 6

5, m

ust e

nrol

l in

Med

icar

e Pa

rt A

and

B●

may

switc

h to

the

Blue

Adv

anta

ge p

lan

or m

ay c

ontin

ue o

n th

e Bl

ueCr

oss

Blue

Shie

ld P

PO p

lan

•A

ge 6

5 or

ove

r at

retir

emen

t–

Mus

t enr

oll o

r be

enro

lled

in M

edic

are

Part

A an

d B

–En

cour

age

enro

llmen

t in

the

Blue

Adv

anta

ge p

lan,

but

may

con

tinue

on

the

Blue

Cros

s Blu

eShi

eld

PPO

pla

n

Doe

s the

life

insu

ranc

e co

ntin

ue in

tore

tirem

ent?

•Th

e G

roup

Life

insu

ranc

e te

rmin

ates

in th

em

onth

whe

n em

ploy

men

t ter

min

ates

•Su

pple

men

tal l

ife in

sura

nce

may

be

cont

inue

d●

dire

ctly

bill

ed b

y ca

rrie

r •

Who

le li

fe, C

ritic

al Il

lnes

s, A

ccid

ent,

and

Long

Term

Car

e in

sura

nce

may

be

cont

inue

d●

dire

ctly

bill

ed b

y ca

rrie

r

Freq

uent

ly A

sked

Que

stio

ns

QI a

m re

tirin

g ne

xt m

onth

and

I qu

alify

toco

ntin

ue m

y he

alth

cov

erag

e. M

y sp

ouse

is m

yde

pend

ent b

ut sh

e/he

can

enr

oll i

n e

mpl

oyer

prov

ided

cov

erag

e an

d is

pla

nnin

g to

retir

e in

the

futu

re.

Can

I de

fer a

ddin

g m

y sp

ouse

tom

y co

vera

ge u

ntil

she/

he re

tires

?A

No,

you

hav

e a

one-

time

optio

n to

con

tinue

toco

ver y

our d

epen

dent

s (sp

ouse

and

/or

child

ren)

at t

he ti

me

of y

our r

etire

men

t.

Freq

uent

ly A

sked

Que

stio

ns

QAs

a re

tiree

, I q

ualifi

ed to

con

tinue

hea

lthco

vera

ge b

ut I

did

not q

ualif

y fo

r life

time

bene

fits.

I w

ill b

e M

edic

are

elig

ible

this

mon

th.

Will

my

cove

red

spou

se a

ndde

pend

ents

be

able

to c

ontin

ue c

over

age?

AYe

s. Yo

ur sp

ouse

may

con

tinue

cov

erag

e un

tilsh

e/he

als

o re

ache

s Med

icar

e el

igib

ility

. Yo

urde

pend

ent c

hild

ren

may

con

tinue

cov

erag

eun

til a

ge 2

6.

Freq

uent

ly A

sked

Que

stio

ns

QAs

an

activ

e em

ploy

ee, I

hav

e ‘e

mpl

oyee

onl

y’co

vera

ge.

I am

retir

ing

this

mon

th a

nd I

qual

ify to

con

tinue

my

heal

th c

over

age.

Can

Iad

d m

y de

pend

ents

to m

y co

vera

ge a

tre

tirem

ent?

A

No.

At t

he ti

me

of y

our r

etire

men

t, yo

u ca

non

ly c

over

the

depe

nden

ts th

at a

re c

over

ed o

nyo

ur p

lan

whi

le a

n ac

tive

empl

oyee

at t

he ti

me

of y

our r

etire

men

t.

•In

pla

nnin

g fo

r you

r ret

irem

ent,

be su

re to

Freq

uent

ly A

sked

Que

stio

ns

QAs

a re

tiree

who

qua

lified

to k

eep

heal

thbe

nefit

s, I c

hose

‘em

ploy

ee a

nd c

hild

’co

vera

ge a

t ret

irem

ent b

ecau

se m

yde

pend

ent s

pous

e al

so h

ad e

mpl

oyer

-pr

ovid

ed c

over

age.

My

spou

se ju

st lo

stm

edic

al c

over

age.

Can

I ad

d m

y sp

ouse

tom

y co

vera

ge n

ow?

A

No.

At t

he ti

me

of y

our r

etire

men

t, yo

u ca

non

ly c

over

the

depe

nden

ts th

at w

ere

on y

our

plan

whi

le a

n ac

tive

empl

oyee

at t

he ti

me

ofyo

ur re

tirem

ent.

If y

ou c

hoos

e no

t to

Freq

uent

ly A

sked

Que

stio

ns

QI a

m a

retir

ee w

ho q

ualifi

ed to

kee

p he

alth

bene

fits.

I ch

ose

PPO

cov

erag

e. C

an I

still

use

the

clin

ic a

nd p

harm

acy?

Can

I sti

ll us

eth

e fit

ness

equ

ipm

ent?

AYe

s. Y

ou a

nd y

our c

over

ed d

epen

dent

sco

ntin

ue to

hav

e fu

ll ac

cess

to th

e cl

inic

and

phar

mac

y as

long

as y

ou a

re c

over

ed b

y th

eC

ity’s

hea

lth p

lan.

And

you

con

tinue

to h

ave

acce

ss to

the

fitne

ss c

ente

r.

Freq

uent

ly A

sked

Que

stio

ns

QI a

m a

retir

ee w

ho q

ualifi

ed to

kee

p he

alth

bene

fits f

or li

fetim

e. I

am

now

cov

ered

by

Blue

Adva

ntag

e bu

t my

spou

se is

in th

e PP

O.

Can

I sti

ll us

e th

e cl

inic

and

pha

rmac

y? C

anI s

till u

se th

e fit

ness

equ

ipm

ent?

AW

ith B

lueA

dvan

tage

cov

erag

e, y

ou c

ontin

ueto

hav

e ac

cess

to th

e cl

inic

and

the

phar

mac

y. Y

our s

pous

e co

ntin

ues t

o ha

ve fu

ll ac

cess

toth

e cl

inic

and

pha

rmac

y as

long

as s

he/h

e is

cove

red

by th

e C

ity’s

hea

lth p

lan.

And

you

and

your

cov

ered

dep

ende

nts c

ontin

ue to

hav

e

Freq

uent

ly A

sked

Que

stio

ns

QI a

m a

retir

ee b

ut I

did

not q

ualif

y fo

r med

ical

bene

fits i

n re

tirem

ent.

Can

I st

ill u

se th

e cl

inic

and

phar

mac

y? C

an I

still

use

the

fitne

sseq

uipm

ent?

AW

ith n

o in

sura

nce

cove

rage

, you

are

no

long

erab

le to

use

the

clin

ic.

You

may

use

the

phar

mac

y fo

r ‘ov

er th

e co

unte

r’ pr

oduc

ts o

nly.

How

ever

, you

do

cont

inue

to h

ave

acce

ss to

the

fitne

ss c

ente

r.

Freq

uent

ly A

sked

Que

stio

ns

QI a

m p

lann

ing

to re

tire

this

mon

th.

I do

not

qual

ify fo

r life

time

heal

th c

over

age.

I k

now

that

I ca

n re

mai

n on

the

plan

unt

il I a

mM

edic

are

elig

ible

. M

y sp

ouse

, cur

rent

ly m

yde

pend

ent,

is a

lread

y en

rolle

d in

Med

icar

e. C

an I

cove

r my

spou

se in

retir

emen

t?A

No.

Sin

ce y

ou d

o no

t qua

lify

for l

ifetim

ehe

alth

ben

efits

, you

can

not c

over

you

r spo

use

unde

r you

r ret

iree

heal

th p

lan.

Rem

embe

r . .

.•May

is th

e m

onth

for o

pen

enro

llmen

t•

Hea

lth in

sura

nce

may

con

tinue

onl

y fo

rde

pend

ents

insu

red

whi

le a

n ac

tive

empl

oyee

in th

e fis

cal y

ear o

f ret

irem

ent

•Re

tiree

s may

use

the

fitne

ss c

ente

r equ

ipm

ent

whe

ther

or n

ot th

ey h

ave

insu

ranc

e•

Onl

y re

tiree

s and

dep

ende

nts w

ho h

ave

City

heal

th in

sura

nce

may

fully

use

the

City

’s cl

inic

and

phar

mac

y•

Retir

ees w

ithou

t ins

uran

ce m

ay u

se th

eph

arm

acy

for ‘

over

the

coun

ter’

item

s onl

y

Con

tact

and

Web

site

Info

rmat

ion

Em

ploy

ee B

enefi

ts O

ffice

423

643

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0

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w.m

ycha

ttano

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ts. c

om

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