Retirement Enrollment

Everything you need to get enrolled in Retirement Services

Defined Benefit Pension Plan

  • Offer for non-uniformed and uniformed employees, as well as Act 600 plans.
  • Qualified plan eligible for Act 205 state aid funding after three years
  • Low Administrative Fees
  • Pension plan quotes customized to assist townships determine the cost and benefits of offering a pension plan.
  • Completion of actuarial valuation reports including individual accrued benefit calculations
  • Preparation of Minimum Municipal Obligation Forms
  • Preparation of Act 205 Forms
  • Completion of Requests for Audit Information
  • Monthly benefit payments
  • Quarterly investment reports
  • Assistance by the investment professionals at Summit Financial Corporation in the decision-making process of investing plan assets

Calculation examples of estimated monthly benefit

 
Pension Disclosure Statement

This is our disclosure form which is in compliance with Act 44 for the state of Pennsylvania.

1. Benefit is 1%

Age 65 with 5 years of service

Vesting is 5 years

Earnings averaged over final 36 months of employment

Benefit = 1% of Average Monthly Earnings times Years of Service

Employee has 15 years of service

Salaries for final 36 months of employment – ($28,000 + $27,000 + $26,000 = $81,000)

Benefit Formula –

$81,000/36 months = $2,250.00 (Average Monthly Salary)

x__ 1% (Plan Benefit)

$22.50

x __15 (Years of Service)

$337.50 Estimated Monthly Benefit at Retirement Age

2. Benefit is 1.25%

Age 65 with 5 years of service

Vesting is 5 years

Earnings averaged over final 36 months of employment

Benefit = 1 1/4% of Average Monthly Earnings times Years of Service

Employee has 15 years of service

Salaries for final 36 months of employment – ($28,000 + $27,000 +$26,000 = $81,000)

Benefit Formula –

$81,000/36 months = $2,250.00 (Average Monthly Salary)

x__1 1/4% (Plan Benefit)

$ 28.13

x___ 15 (Years of Service)

$421.95 Estimated Monthly Benefit at Retirement Age

How Do I Enroll My Township In The Defined Benefit Pension Plan?

If you would like to enroll or learn more information regarding our Defined Benefit plan, please call Bryan Jordan at 800-382-1268 or email him at bjordan@psats.org.

Defined Contribution Plan (401-A)

The Pennsylvania Municipalities Pension Trust is pleased to offer a new type of pension plan to meet the changing needs of our member townships. PSATS, in partnership with Summit Financial (a HUB International Company) and Nationwide Financial, is offering a Defined Contribution Plan to PSATS members.

 
Pension Disclosure Statement

This is our disclosure form which is in compliance with Act 44 for the state of Pennsylvania.

What Is A Defined Contribution Plan (401-A)?

 It is a qualified plan that allows contributions by the township. The township will determine who is eligible, the vesting schedule and who is responsible for making the investment decisions (township or employee). Contributions by the township can be a percentage of pay or a flat annual dollar amount. The value of the account is based on the contributions made by the employer and the investment earnings.
 
 

Who Can Participate?

The township will determine who is eligible to participate in the plan. To be eligible for state aid reimbursement, an employee must work a minimum of 35 hours per week. For new plans, the township must fund the plan for three full calendar years before the plan is eligible to receive state aid.
 
 

Can The Employee Also Contribute To The Plan?

Yes, an employee may make contributions to a 457(b) Deferred Compensation plan. The two plans will work together to build toward a more secure retirement.
 
 

What Are The Advantages?

  • Township contribution levels are more predictable and make the budgeting process easier
  • Township contribution can be subject to a vesting schedule based upon years of service
  • Township can choose to make investment decisions or transfer that responsibility to the plan participants
  • Participants can be allowed to have control of investments to meet individual goals
  • Employees can more easily determine their benefit/account balance at any given time via the Nationwide website 24/7
  • Learning tools are available 24/7 online with Nationwide
  • Participant assets can be transferred to another qualified plan without tax upon termination of employment
  • Participant financial reports will be mailed quarterly

How Do I Enroll My Township In The Defined Contribution Plan?

This type of plan is governed by Act 44 of 2009, which states that a pension administrator is a professional service provider. A municipality’s first step in the procurement of a pension administrator is the preparation of a Request for Proposal (RFP). Contact Bryan Jordan at the PSATS Trustees Insurance Fund for an RFP template. You may reach him by email at bjordan@psats.org or by calling (800) 382-1268.

Deferred Compensation Plan (457-b)

What is a deferred compensation plan (457-b)?

A 457 plan, named after IRS code 457, is a non-qualified deferred compensation plan for government agencies. This type of program allows employees to defer wages on a pre-tax basis through payroll deduction. The plan also offers the Roth option, which allows contributions to be made post-tax and a tax-free benefit at retirement.
 

Who Can Participate?

All employees, both full time and part-time, are eligible to participate in the plan. Supervisors, solicitors, and engineers may also participate.
 

How much can I contribute?

For 2020, the IRS will allow individuals under the age of 50 to contribute $19,500 per year, and age 50 and over, up to $26,000 per year. Employees may elect to make pre-tax deferrals up to 100% of their taxable income.
 

What are the Advantages?

  • Accumulate savings to replace earnings at retirement
  • Contributions can be made pre-tax (Traditional) or post-tax (Roth)
  • Reduces your current federal income tax
  • Immediate plan entry date
  • The participant has control of investments to meet individual goals
  • Changes in investment allocation can be made at any time
  • Account balance and learning tools available 24/7 on the Internet
  • Participant reports will be mailed quarterly
  • Contributions can be changed at any payroll period effective for the first of the next month
  • Contributions can be stopped at any time
  • Upon termination, funds can be rolled into a new employer plan

 How do I enroll my employees in the 457 Plan?

Contact PSATS Trustees Insurance Fund for the following forms:
  1. Complete an Installation Checklist.
  2. Adopt a resolution to comply with the Pennsylvania Intergovernmental Cooperation Act
  3. Adopt the “Supplemental Participation Agreement”
  4. Order Retirement Guides for your employees.
  5. Have each participating employee complete the enrollment form, the investment election form, and the beneficiary form.
  6. Mail all of the above to the “PSATS Trustees Insurance Fund”.