Planning for retirement involves carefully considering your benefits, and Pittsfield Township offers a comprehensive suite of options to meet diverse individual needs. These retirement options are designed to work together, allowing you to create a personalized plan tailored to your specific circumstances. It’s important to note that specific retirement options, benefits, eligibility criteria, and coverage details may be subject to variations based on individual labor agreements and job classifications.
Navigating Your Retirement Plan with MERS of Michigan
Pittsfield Township provides its employees with retirement plans through the Municipal Employees’ Retirement System (MERS) of Michigan. Vesting in a MERS retirement plan hinges on meeting minimum age and service year requirements, typically a 6 or 10-year vesting period, which is also determined by your specific job classification. Employees transitioning from other MERS entities or those classified under Act 88 may be eligible for an accelerated vesting period.
As part of the MERS retirement plan, employees are required to contribute a pre-set percentage of their pre-tax earnings, as defined by their position classification. Pittsfield Township complements this by contributing the remaining amount necessary to meet the annual recommended contribution levels, ensuring a robust retirement fund for your future.
Retiree Health Insurance Coverage
For eligible retirees, Pittsfield Township extends health insurance benefits. The Township covers the cost of single subscriber coverage under its current retiree health insurance plan, up to a maximum of $600 per month. Eligibility for this benefit requires an employee to have dedicated 25 or more years of service to Pittsfield Township and be at least 60 years of age at the time of retirement. This valuable benefit helps ease the transition into retirement by providing continued health care coverage.
Maximize Your Healthcare Savings with the MERS Health Care Savings Program
To further support retirees in managing their healthcare expenses during retirement, Pittsfield Township has established the Mers Health Care Savings Program (HCSP). This program is specifically designed to help employees save for future medical costs on a tax-advantaged basis. For employees hired after January 1, 2007, the Township contributes 2% of the employee’s base wages directly into the HCSP account. Employees are also required to contribute 1% of their base wages to the HCSP through pre-tax payroll deductions.
The MERS Health Care Savings Program features a 10-year vesting period. Upon leaving employment with Pittsfield Township, and once vested, the accumulated balance in your HCSP account becomes available for you and your eligible dependents. These funds can be used for tax-free reimbursement of a wide range of IRS-approved medical expenses, offering significant financial relief and peace of mind during retirement when healthcare costs can be a major concern. This mers health care savings program is a valuable tool for long-term financial health and well-being in retirement.
Enhance Retirement Savings with a 457 Deferred Compensation Plan
As a public employee of Pittsfield Township, you have the advantageous option to further enhance your retirement savings through a Section 457 Deferred Compensation Savings Plan. This voluntary program empowers employees to save for retirement using pre-tax dollars deducted directly from their payroll, effectively reducing your taxable income each pay period. The 457 plan offers several compelling benefits:
- Reduce Current Income Taxes: Lower your taxable income now while simultaneously building your retirement nest egg.
- Employer Matching Contributions: Pittsfield Township provides a 1% employer match if the employee contributes at least 3%, further boosting your savings.
- Tax-Deferred Growth: Earnings within your 457 plan accumulate tax-deferred, allowing your savings to grow more rapidly.
- Portability: Your savings are portable, meaning you can transfer your 457 plan assets to another public sector employer’s 457 plan if you change jobs within the public sector.
The flexibility of the 457 plan is another key advantage. You have the freedom to adjust your contribution levels – increase, decrease, stop, or restart contributions – as frequently as needed, without incurring any fees or penalties. This adaptability makes the 457 plan a convenient and powerful tool for tailoring your retirement savings strategy to your evolving financial situation.
