The Employee Retirement System of
Shawnee, Oklahoma
The Employee Retirement System of Shawnee, Oklahoma provides you with monthly, lifetime retirement income starting at your normal retirement date based on your years of credited service and five year average pay. You receive service credit for your period of continuous employment with the City of Shawnee!
Retirement Options
At the City of Shawnee you are eligible to begin receiving retirement benefits as follows:
Normal retirement – earlier of age 65 and vesting or Rule of 80 (combination of age and completed years of service, age 55 minimum).
Early retirement – on or after age 55 with 7 years of service.
Disability retirement – upon total and permanent disability after 7 years of service. Your accrued benefit is paid without reduction.
Deferred retirement – if you leave after becoming fully vested, you may choose between reduced income at early retirement age, your accrued benefit at normal retirement, on your contributions with interest.
At retirement, your benefit will be paid in the following manner:
If single, as a life with 10 year certain annuity
If married, as a 50%, 2/3rds or 100% joint and survivor annuity ( with actuarial reduction) –or- unreduced, as a life with 10 year certain annuity.
Once your retirement payments start, they are subject to annual cost of living increases of up to 3% per year based on changes in the Consumer Price Index.
FAQ’s about retirement
Q: If I die as an active employee who gets my retirement?
A: There are three different answers depending on the situation.
If you are not vested, your named beneficiary will receive your employee contributions, if any, plus interest.
If you are vested and married, your spouse will receive a Spouse’s pension (regardless of who you have named as beneficiary) equal to 50% of your accrued benefit for lifetime or until remarriage.
If you are vested and not married, your named beneficiary will receive 50% of your accrued benefit at the time of your death for the number of years certain.
Q: Can the plan pay a minor child as a beneficiary?
A: No we cannot pay a minor child. You certainly can name a trust, if you have established one. But otherwise, please name primary and contingent beneficiaries that are at least 18 years old.
Q: If I am retired and receiving my pension check, does anyone get my retirement after I die?
A: That depends on what you have chosen at retirement.
If you choose an unreduced pension and do not provide for your spouse, you will receive a pension check for your lifetime. However, if you die before being paid the number of years certain, we will pay your beneficiary the remaining years.
If you chose to cover your spouses and receive a reduced check to cover both lifetimes, your spouse will continue to get a monthly check based on the selection you made. Your choices are: 50%, 66,2/3rds or 100% coverage. Remember, Benefit estimates are available on our website simply follow the steps outlined through OMRF ore request an estimate through your local Authorized Agent.
Q: Can I choose joint and survivor options at any time during employment?
A: In order to choose the joint and survivor option you must meet the definition of Normal Retirement, then you can choose this option by completing a form. If you complete the form, it would better protect your spouse in the event you die as an active employee. Your spouse would typically get a greater pension and it would be payable for their lifetime with no remarriage clause. If you do not complete the form, the Spouse’s pension will be payable. Prior to your actual retirement you can change or revoke this election.
Q: If I selected 66 2/3rds joint and survivor, will my pension be reduced if my spouse dies before me?
A: Yes, this is the only joint and survivor option that would reduce your monthly check if your spouse dies first. The other joint and survivor options (100% or 50%) are not tied to your spouse’s death and your check will continue unaffected.
