Retirement
The Green Company retirement program is made up of multiple parts: Social Security and either the Teacher's Retirement System (TRS) or the Public School Employees Retirement System (PSERS), and personal retirement plan options in a supplemental 403(b), 457(b), or Roth IRA plan.
The Green Company also offers an optional 529 plan college savings fund for all employees. This plan has federal and state tax advantages that help you maximize savings for children and grandchildren.
The Employee's Retirement System (ERS) is a defined benefit plan, meaning participants are guaranteed a set monthly retirement income from the plan. Retirement income supplements income from Social Security for all employees in a permanent position, employed half time or more.
The personal retirement plans can help employees supplement their company retirement plan by offering enrollment in a 403(b), 457(b), or Roth IRA. These plans are available to all employees and are managed by outside carriers.
Employee's Retirement System (TRS)
How Does It Work? All ERS employees contribute 6% of gross salary to ERS through monthly payroll deduction. In addition, the Green Company contributes 4% to each ERS employee’s retirement account monthly.
ERS members are vested with 20 years of creditable service and eligible to receive a monthly retirement benefit at the:
- Completion of 20 years of creditable service and attainment of age 60.
- Completion of 30 years of creditable service, regardless of age.
- Completion of 25 years of service and before age 60, but with a permanently reduced benefit.
The amount you will receive at retirement is based on 2%, multiplied by your years of creditable service, multiplied by the average of your highest consecutive 24 months of pay.
Example:
2% x 30 years = 60%
Average of highest 24 consecutive months of pay = $70,000
60% x $ 70,000 = $ 42,000 / year
403(b) and 457(b) Retirement Savings Plans
Retirement savings plans are available if you wish to supplement your retirement benefits.
457(b) Retirement Savings Plan
In determining if a 457(b) Roth account is right for you, we encourage you to carefully assess the advantages and disadvantages. A 457(b) Roth may appeal to those who:
- Cannot contribute to a Roth IRA due to income limits
- Are young and in lower income tax brackets than they expect to be in retirement
- Are financially stable, but expect tax rate increases
- Want tax diversity and flexibility in retirement
403(b) Retirement Savings Plan
A Roth account can be a way to boost your savings or reduce your taxable income in the future. The account will allow you to set aside after-tax money, and after five yers, make tax-free withdrawals of principal, interest, and earnings if certain conditions are met.
Voluntary Roth IRA Retirement
A Roth IRA is a voluntary retirement plan option available to all employees. Below are some features of this plan.
- Potential for tax-free withdrawals at retirement
- No required minimum distributions at age 70 ½
- Contributions are not subject to income taxes when they are withdrawn
- Potential for beneficiaries to receive income tax-free withdrawals after your death
Contribution Limits
- Under Age 50: $5,500
- Age 50+ :$6,500
College Saving Plan
It’s never too early to prepare your child or grandchild for a successful future. The 529 Plan is flexible, affordable and includes great tax advantages that help you save more of your hard earned money.
- Optional 529 Plan college savings fund available for all employees
- Federal and state tax advantages that help you maximize savings
- Available for children and grandchildren
- Compounded earnings potential works to help grow your balance over time
