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 the PSATS Trustees Insurance Fund at 800-382-1268 or email us at pension@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)?
Who Can Participate?
Can The Employee Also Contribute To The Plan?
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?
Deferred Compensation Plan (457-b)
What is a deferred compensation plan (457-b)?
who Can Participate?
How much can I contribute?
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?
- Complete an Installation Checklist.
- Adopt a resolution to comply with the Pennsylvania Intergovernmental Cooperation Act
- Adopt the “Supplemental Participation Agreement”
- Order Retirement Guides for your employees.
- Have each participating employee complete the enrollment form, the investment election form, and the beneficiary form.
- Mail all of the above to the “PSATS Trustees Insurance Fund”.