Page 67 - Employee Handbook 1-2015 rev9

 SERVICE RETIREMENT AT AGE 65 - At age 65 or older, with at least 5 years of
service, an employee is eligible for retirement at an unreduced rate.
 SERVICE RETIREMENT AT AGE 60 - At age 60, with at least 25 years of
service, an employee is eligible for unreduced monthly retirement benefits.
 EARLY RETIREMENT - After age 50, with 20 or more years of creditable service,
an employee qualifies for reduced retirement benefits.
 DISABILITY RETIREMENT – Should an employee become permanently disables
after five years of creditable service, the employee may make application to the
retirement system for disability retirement. If the application for disability retirement
is approved by the medical board of the retirement system, the employee may retire
on a disability retirement allowance. The amount of retirement allowance is
calculated as service retirement.

The City’s retirement program offers several options. These options are discussed more
fully in your retirement handbook. The Human Resources Department staff is available to
discuss the complete pension program including pension calculation and options.

FF. Supplemental Retirement Income Plans

The City has two plans that enable employees to save a portion of their income for
retirement through payroll deduction. These two plans are available to City employees:

 457 deferred compensation
 401(K) Traditional and Roth options

These plans, while differing in detail, both provide that the amount saved along with the
accrued interest is exempt from income taxes until such time as it is received by the employee at
retirement or separation. The Roth 401K is a POST TAX investment which provides tax-free
earnings.

Any employee interested in participation in either of these plans should contact the
Human Resources Department for further information.

GG. 529 College Savings Plan

The City offers all employees the opportunity through payroll deduction to establish a
college savings program (529 Plan) to set aside funds for qualified higher education expenses,
free of taxes. To inquire or to enroll, contact the Human Resources Department.

HH. Retiree Health and Life Insurance Benefits

Retiree Health Insurance

City of Winston-Salem Employee Handbook November 2014 Revision 58