Defined Benefits Plan

Your Retirement

The City of Peachtree City maintains a defined benefitretirementplan.ThePlanprovidesforthe payment of monthly benefits to you after retirement. The City administers the Plan. The Plan is designed to help you prepare now for financial security in later years. It supplements your Social Security benefits and your personal savings by providing additional income at retirement. The income you receive from Social Security, the Plan, and your personal savings will help provide you with income when you retire. You should read this document and become familiar with the benefits afforded in the Plan Understanding how these benefits enrich your retirement can give you greater personal security. Give your family an opportunity to read aboutthePlantoo.

PlanPurpose

The purpose of the Plan is to provide additional income for you in your later years and to make it easier for you and your family to be secure and independentwhenyouretire ThePlanisdesigned to supplement Social Security and your personal savingstohelpprovideretirementincometoyou

Whatdoes itcost?

Whoqualifies?

Full-timeemployeesoftheCity(asdefinedinthe City’s personnel policy) participate in the Plan beginningonthefirstworkingdayofthe month immediately following or coinciding with yourdateofhire.Part-timeemployees(lessthan 30 hours per week) and volunteers are excluded fromparticipationinthePlan.

Asaparticipant,youarerequired tocontribute3%ofyourEarnings tothePlan.Shouldyouleavethe CitypriortovestinginthePlan, youwillbereimbursedyour contributionswithinterest accordingtothePlandocument. TheCitycontributesannually basedonanactuarially determinedamount Whatarethe benefits?

Afteryouretire,thePlanpaysyouamonthly retirementbenefitforaslongasyoulive Your annualNormalRetirementbenefitis2%ofyour FinalAverageEarningsmultipliedbyyourCredited Service.EarlyRetirementisalsoavailablewith reducedbenefits.Inaddition,thePlanoffers Disability,Death,andVestedbenefitstoqualified participants.

ThepurposeofthePlanistoprovideadditional incomeforyouinyourlateryearsandtomakeit easierforyouandyourfamilytobesecureand independentwhenyouretire.ThePlanisdesigned tosupplementSocialSecurityandyourpersonal savingstohelpprovideretirementincometoyou.

Benefits

Explained...

The amount of your benefit is based on the following:

FinalAverage Earnings

NormalRetirement-NormalRetirementbenefitsare payabletoyouafteryouterminateemploymentand havereachedboththeageof65andhaveatleast5 yearsofCreditedService.

EarlyRetirementwithReducedBenefits-Youbecome eligibleforEarlyRetirementwhenyoureachboth55 yearsofageandhave10yearsofCreditedService. TheEarlyRetirementbenefitsarereducedto compensatefortheincreaseinthenumberofyears thebenefitispaid.

BenefitsFormula

UnreducedEarlyRetirement-IfyouareaPolice OfficerorFirefighter,youmayretirefromactive employmentandreceiveunreducedbenefitsatthe ageof55withatleast10yearsofVestingService,or uponyourretirementfromactiveemploymentwith25 yearsofVestingService.Ifyouareanon-PublicSafety employee,youmayretirefromactiveemployment andreceiveunreducedbenefitsattheageof62with atleast10yearsofCreditedService.

RetirementfromInactiveStatus-Ifyouwereformerly employedbytheCityandifyouleftwithavested benefitwithatleast10yearsofservice,youareeligible forareducedretirementbenefitbeginningatage55. Benefitreductionswillbeactuarialandaregreater thanwhenretiringfromactivestatus.Allvested inactiveemployeesareeligibletoretireunreducedat age65.

TheBenefitFormulaisapercentagethatismultiplied byyourFinalAverageEarningsandyourCredited Servicetoproduceanannualbenefit,whichisthen dividedby12togiveyouyourmonthlyNormal Retirementbenefit.Itiscalculatedasfollows:

Howare benefitspaid?

You must apply for retirement benefits within 90 days of your retirement date. Your retirement date will be on the first day of the month following the date of termination of employment (if you meet the criteria to receive a retirement benefit). You will receive your benefit payment on the last day of each month. Therearethreedifferentpaymentoptionsforyourpensionbenefits:

LifeAnnuity

This option allows you to receive the maximum possible benefit payment each month for the remainder of your life; however, no beneficiary, including your spouse,willreceiveanybenefitsafteryourdie.

Joint&Survivor Annuity

Choosing this option means you will receive a reduced monthly benefit. However, if you die before your chosen beneficiary, he or she will receive 50%, 75%,or100%(electedatthetimeofyourretirement)ofyourmonthlybenefitfor theremainderofhis/herlife.Thebenefitreductioncalculationisbasedonboth the age difference between you and your beneficiary and the percentage of incomecontinuationyouchooseatretirementtoleavetoyourbeneficiary.

PeriodCertain&Life

Annuity

Withthisoption,youreceiveadecreasedmonthlybenefitfortheremainderofyour life. However, the beneficiary of your choice will receive your benefit for the remainder of a 10- or 20-year period if you should die within that period. If your beneficiarypredeceasesyou,anyremainingpaymentswillbepaidtoyourestate. This option may be useful if your beneficiary is a dependent child who may need anincomeforanumberofyearsshouldyoudiebeforethechildgrowsup.

DeathBenefits

BeforeRetirement Commencement

Youmaynameanypersonasyourprimarybeneficiaryandasecondperson asyoursecondarybeneficiary.Afteryouvest,yourbeneficiarywillreceivean immediatemonthlylifetimebenefitifyoudiewhilestillemployedbytheCity. The amount depends on your age, credited service, earnings history, and yourbeneficiary’sage.Ifyoudiebeforeyouarevested,nobenefitsarepaid. Youmaychangeyourbeneficiarydesignationatanytimepriortoretirement bygivingwrittennoticetoyourAdministrator.

AfterRetirement Commencement

Death benefits after retirement are based on the form of payment you choose when you retire. If you choose a Joint and Survivor Annuity or a Period Certain and Life Annuity at retirement, your designated beneficiary mayreceivebenefitsafteryourdeathbasedontheoptionselected.There willbenopaymentstoabeneficiaryifyouchooseaLifeAnnuity.

DisabilityBenefits

IfyouareaParticipantofthePlanandqualifytoreceivedisabilitybenefits undertheFederalSocialSecurityActordisabilityinsuranceprovidedunder the City’s long-term disability policy and meet certain other requirements, your Credited Service continues until (a) you retire while remaining disabled or (b) you immediately return to work at the City when you recover. However, if you recover and do not directly return to work at the City, your Credited Service will stop at the date of your disability, and no additionalbenefitwillaccrue.

After you have completed five (5) years of Credited Service, you are fully vestedinthebenefityouhaveearned.Therefore,ifyoustopworkingforthe City after vesting, you will still receive the vested amount upon retirement. Thisamountwillbeactuariallyreducedifyouelecttoreceiveitbeforeage 65.

IfyoudecidetoworkpastyourNormalRetirementDate,yourbenefitswillbe deferreduntilyourRetirementDate.TheamountofyourRetirementbenefits will be actuarially increased to compensate you for the delay in the commencement of benefits. This applies to both active and terminated vestedemployees.

LifeAnnuitywith NoBeneficiary

The following steps are necessary to calculate an estimate of a monthly NormalRetirementbenefitundertheCity’splan.Oursampleparticipanthas Final Average Earnings of $70,000 and has 25 years and 0 months of CreditedService.

Annuities

Joint&Survivor Annuityat100%

If our sample participant decides to select Joint and Survivor Annuity so afterhis/herdeath100%ofhis/hermonthlybenefitwillcontinuetobepa abeneficiary,he/shewillreceiveareducedbenefit.

Thebenefitisreducedtocompensateforthefactthattheexpectedlifetimes of two persons exceed that of one person. The amount of the reduction is basedontheagesoftheretireeandthebeneficiary.Theparticipant’sbenefit reductionwillbegreatertheyoungerthebeneficiaryis

Ifboththeretireeandthebeneficiaryareage65,thereducedbenefitis83.3% ofhis/her$3,645.83NormalRetirementbenefit.Oursampleparticipantwould receive $3,036.98 each month as long as he/she lives, and at his/her death, his/her beneficiary would receive 100% or $3,036.98 each month for the remainderofhis/herlife.

Joint&Survivor Annuityat50%

Ifourparticipantselects50%ofhis/hermonthlybenefittocontinuetobepaid to a beneficiary, he/she will also receive a reduced benefit, but the reduction willnotbeasgreatasatthe100%level Theparticipant’sbenefitislargerthan inthepreviousexample,butthebeneficiary’sbenefitissmaller.

Ifboththeretireeandthebeneficiaryareage65,theparticipantgets90.9%of his/her $3,645.83 Normal Retirement benefit, or $3,314.06 monthly during his/her lifetime. His/her beneficiary would receive 50% of this reduced benefit whentheretireedies,or$1,65703monthlyfortheremainderofhis/herlife

We start at Example 1 (Life Annuity with No Beneficiary) with the same participantretiringatNormalRetirement.Ifhe/shechoosesthePeriodCertain and Life Annuity at 10 Years, his/her beneficiary would receive his/her payments for the remainder of the period should the retiree die before the completion of that period. If the retiree dies after the 10-year period from the dateofhis/herretirement,his/herbeneficiarywouldreceivenopayments.

Thereductionforthisoptionisbasedonlyonthelengthoftheperiodselected. ThismonthlybenefitisusuallyhigherthanJointandSurvivorAnnuitybenefits. However, although payments are guaranteed to the retiree for as long as he/shelives,thebenefitpaymentsarenotguaranteedtothebeneficiary.

Theretireeinthisexamplewouldreceive91.087%ofhis/herNormalRetirement benefit of $3,645.83, or $3,320.88 each month for as long as he/she lives. If he/sheshoulddiewithin10yearsafterhis/herNormalRetirementDate,his/her beneficiary would receive $3,32088 monthly until the end of the 10-year period Thenpaymentstothebeneficiarywouldstop

Early

Retirement

Early Retirement from Active Services with Reduced Benefits

AnactiveparticipantiseligibleforEarlyRetirementifhe/sheisbetween theagesof55and65withatleastten(10)yearsofCreditedService The participant’saccruedbenefitissmallerduetotheaccumulationofless CreditedServiceandfuturepayincreases Theearlyretirementreduction factorwilllowerhis/hermonthlybenefitpaymenttocompensateforthe longerperiodofbenefitpayments

Inthisexample,let’spresumeourparticipantbeginsearlyretirementat age55,andhe/sheelectstheLifeAnnuitypaymentplan Wewillusethe sameFinalAverageEarningsandYearsofServiceasweusedinthefirst exampleforsimplicity,butasstatedearlier,anemployee’sFinalAverage EarningsandCreditedServicewilltendtobelowerwhenhe/sheretires early

Wefollowallofthestepsinthefirstexample,andthenwemustapplyan earlyretirementreductionfactor.Theparticipant’saccruedNormal Retirementbenefitwouldbe$3,645.83permonth.However,todetermine theamounthe/shewoulddrawatage55,wemustmultiplyhis/her accruedbenefitbytheearlyretirementreductionfactorforage55.The EarlyRetirementReductionTableonthenextpageshowsthata participantretiringatage55wouldreceiveonly50%ofhis/heraccrued NormalRetirementbenefit.Fiftypercent(50%)of$3,645.83yieldsa monthlybenefitof$1,822.92.He/shewouldreceivethisamounteach monthfortheremainderofhis/herlifeasaresultofchoosingtoretire earlyatage55.

AnactivePublicSafetyparticipantiseligiblefor UnreducedEarlyRetirementifhe/sheisbetweenthe agesof55and65withatleastten(10)yearsofCredited Service.Theparticipant'saccruedbenefitissmallerdue totheaccumulationoflessCreditedServiceandfuture payincreases,BUTanearlyretirementreductionfactoris notapplied.

Inthisexample,let'spresumeourPublicSafety participantbeginsearlyretirementatage55,and he/sheelectstheLifeAnnuitypaymentplan.The participant'sFinalAverageEarningsare$70,000,andthe yearsofserviceare23.

Wefollowallofthestepsinthefirstexample,butwe wouldnotapplyanearlyretirementreductionfactor.The participant'saccruedUnreducedEarlyRetirement benefitwouldbe$3,354.17permonth.He/shewould receivethisamounteachmonthfortheremainderof his/herlifeasaresultofchoosingtoretireearlyatage 55.

Anactivenon-PublicSafetyparticipantiseligiblefor UnreducedEarlyRetirementifhe/sheisbetweenthe agesof62and65withatleastten(10)yearsof CreditedService.Theparticipant'saccruedbenefitis typicallysmallerduetotheaccumulationofless CreditedServiceandfuturepayincreases,BUTan earlyretirementreductionfactorisnotapplied.

Inthisexample,let'spresumeournon-PublicSafety participantbeginsearlyretirementatage62,and he/sheelectstheLifeAnnuitypaymentplan.The participant'sFinalAverageEarningsare$70,000,and theyearsofserviceare26.

Wefollowallofthestepsinthefirstexample,butwe wouldnotapplyanearlyretirementreductionfactor. Theparticipant'saccruedUnreducedEarlyRetirement benefitwouldbe$3,791.67permonth.He/shewould receivethisamounteachmonthfortheremainderof his/herlifeasaresultofchoosingtoretireearlyatage 62.

EarlyRetirement

Calculation Practice

ExamplesofRetirementBenefits

UsethespacebelowtocalculateeitheryourNormalRetirementBenefits oryourEarlyRetirementBenefits.

Frequently Asked Questions

How do I sign up for the Pension Plan?

Full-timeemployeeswillautomaticallybeenrolledinthePlan.Atthat timeyouwillneedtodesignateaprimaryandsecondarypreretirementbeneficiarybycompletingtheappropriateformprovided bytheHumanResourcesDepartment.

YourHumanResourcesDepartmentisavailabletoanswerany questionsthatyoumayhaveafteryouhavereadthisbooklet.

Yes,atterminationorretirement,youcanuseaccruedcatastrophic sickleaveinaccordancewithCitypoliciestobuyadditionalVesting ServiceandCreditedServiceforcalculatingyourmonthlyretirement benefit.However,onlyfullmonthsofserviceareusedinthe calculation.

Yes,catastrophicsickleaveserviceisappliedtobothVestingService andagetotheextentnecessaryforeligibilitypurposesforretirement (ifnotalreadymet).

AParticipantwhoisaPoliceOfficerorFirefightermayuse accumulatedsickleaveinaccordancewithCitypoliciesforadditional VestingServicetoqualifyforanUnreducedEarlyRetirementpriorto age55attwenty-five(25)yearsofVestingService Suchsickleave serviceisappliedtobothVestingServiceandagetotheextent necessaryforeligibilitypurposesforUnreducedEarlyRetirement(ifnot alreadymet)andappliedtoCreditedService

If I leave the City’s employment, can I be reinstated as a participant in the Plan if I return to City employment again?

IfyouwereaparticipantintheCity’sretirementplanandyour employmentterminated,andyouarerehiredasanemployeeeligible toparticipateinthePlan,youwillresumeparticipationinthePlan uponyourreturn.

Ifyouterminateemploymentpriortobecomingvestedinyour retirementbenefit,youarerequiredtorequesttoreceiveadistribution ofyouremployeecontributionsplusinterest.Ifyoureceivedarefund ofcontributionsandagainbecomerehired,youmustmakea repaymentofsuchcontributionsandinterestinaccordancewiththe termsofthePlan.Ifyoutimelymaketherepayment,yourperiodof employmentwiththeCitybeforetheterminationwillbetakinginto accountforpurposesofCreditedServiceandFinalAverageEarnings.

YourretirementincomefromthePlanwillremainunchangedifyou takeapart-timeorfull-timejobwithanotheremployerafterretiring fromtheCity.IfyoureturntoworkfortheCityasanemployee,your retirementbenefitswillbesuspendeduntilyousubsequentlyre-retire.

ThepurposeofthePlanistoensurethatparticipantswillreceivethe intendedbenefituponretirement.Therefore,stateandfederallaws containprovisionstopreventthesale,assignment,pledge,or attachmentofbenefits.Youcannotborroworpledgemoneyfromthe fund. Can I borrow or pledge money from the fund?

ThebenefitsyoureceivefromthePlanwillbesubjecttofederal incometaxintheyearinwhichyoureceivethepayments.Sincestate incometaxonretirementbenefitsvariesbystate,checkwithyourtax advisorregardingstatetaxation.Intheeventyoureceivealumpsum payment,youcandefertaxationbyrollingoveryourdistributionto anotherqualifiedplanorIRA.

TheCityhasreservedtherighttoamendorterminateyourPlan. However,noamendmentcantakeawayanybenefitsyouhave alreadyaccrued.TheCitycanatitsdiscretionchangeearlyornormal retirementfactorsorrequirementsforbothactiveandterminated vestedemployees.ShouldyourPlanbeterminated,youwillbevested inyourAccruedBenefitasofthedateoftermination.

Can my vested accrued retirement benefits be reduced?

Georgiastatelawprovidesforthereductionordenialofyourbenefits ifyouhavebeenconvictedofcertaincrimesthatrelatetoyour employmentasapublicemployee.

What if I disagree with the amount of my retirement benefits or my benefits have been denied?

IntheeventyoudisagreewiththeCitywithrespecttoanyrights, claimsorresponsibilitiesunderthePlan,youmayfileaclaimfor benefitsinwritingtothePensionCommittee

ThePensionCommitteewillrespondinwritingwithin90days(orwithin 180daysifadditionaltimeforreviewisnecessary)ofitsdetermination IfyoudonotagreewiththedeterminationofthePensionCommittee, youmayrequestthedecisionbereviewedbytheBoardofTrusteesby submittingwrittenrequestforreviewwithin60daysafterthedateof thePensionCommittee’sdetermination.TheBoardofTrusteeswill respondinwritingwithin60daysafterreceivingtherequestforreview (orwithin120daysifadditionaltimeforreviewisnecessary).

YouarenotpermittedtotakelegalactionagainstthePlanmorethan oneyearaftertheBoardofTrustees’decisiononreview.

How does Social Security affect my retirement benefits?

YourbenefitsfromtheCity'sretirementplanareinadditionto anythingyouoryourfamilymayreceiveinSocialSecuritybenefits. YourSocialSecuritybenefitsaredeterminedbytheU.S.SocialSecurity Administrationandaredependentupontheageyouretire.Youmay beginreceivingreducedSocialSecuritybenefitsasearlyasage62. Whenplanningforretirement,youshouldcarefullyreviewyourSocial Securitybenefitsinadditiontoyourpensionbenefitandyoursavings.

IfyouwouldlikeadditionalinformationregardingyourSocialSecurity benefits,pleasecontacttheU.S.SocialSecurityAdministration.

ouhavequestionsaboutyourPlan,youshouldcontactthePlan ministrator.

HumanResourcesDirector,Financialand AdministrativeServicesDirector,andany member(s)appointedbytheCityManager

CityManager,FinancialandAdministrativeServices Director,andanymember(s)appointedbytheCity Manager

LimitationYear January1sttoDecember31st PlanYear AnniversaryDate January1sttoDecember31st January1sttoDecember31st