Does my choice of beneficiary impact my retirement allowance?

Yes. Selection of Option 1, Refund of Contributions, (or Option 0 in the case of Police or Fire) will yield the highest retirement allowance. Selection of Options 2 or 3, each of which provide for payments to continue after your death, yields a lower monthly retirement allowance during your lifetime. The exact discount is determined by your age and the age of your beneficiary at the time of your retirement.

Show All Answers

1. What is a “retirement allowance” and how is it calculated?
2. What is “includable” or “pensionable” compensation”?
3. When can I retire?
4. What is the maximum amount I can receive as a retirement allowance?
5. What is vesting and how long does it take to vest my pension benefit?
6. Do I receive service credit for active military service?
7. Does military service credit count toward my vesting?
8. Once I am vested, if I leave Town employment before I retire, am I still eligible to receive my retirement allowance when I reach retirement age or the Rule of 80?
9. Are contributions to the Plan mandatory?
10. Can I make up my contribution deficiency?
11. Are my contributions made on a before-tax or after-tax basis?
12. What rate of interest do my contributions earn?
13. What options are available to me at the time of retirement?
14. What happens to my contributions if I die or leave Town employment before I am vested?
15. What happens to my contributions if I die after I’m vested, but before I retire?
16. What happens to my contributions at the time of my death, after I retire?
17. Who can I name as my beneficiary?
18. Does my choice of beneficiary impact my retirement allowance?
19. Can I change my beneficiary at a later date?
20. Can I borrow against my pension contributions?
21. Can I roll over contributions that I made to another plan into the Defined Benefit Plan?
22. If I work as a full-time employee for the Town, leave, and return to full-time employment with the Town at a later date, do I receive credit for my first period of service?
23. How do I obtain an estimate of my retirement allowance?
24. I have a date set for when I want to retire. How do I initiate the retirement process?