"TIER 2" - CATEGORY OVERVIEW

The information contained on these pages is for any City of Aurora employee who was hired in the year 2012 or After.

OVERVIEW

BENEFITS AT RETIREMENT

The term “retirement” refers to the time at which a participant's monthly pension benefits begin.

Since its inception in 1967, the Plan has used a defined benefit formula to determine pension benefits.  In 1997 GERP added an alternative method of computing benefits known as the money purchase pension. Participants receive the higher of the two benefit amounts. Both methods are described in detail below. 

In addition to the annual statements provided to all participants, the GERP administrative staff can prepare estimates of benefit amounts to assist participants who are nearing retirement.  A final review of pension computations is conducted by the Retirement Board, which must approve each pension prior to its start.

For more information on Benefits at Retirement click on links below.

DEATH BENEFITS

The benefits payable upon a participant’s death depend on his or her employment status at the time of death and the length of credited service completed.  The tables below outline the benefits available. 

GERP provides forms for the designation of beneficiaries and encourages participants to periodically review the information on file to ensure that it is current.

For more information on Death Benefits click on links below.

CONTRIBUTIONS, REFUNDS AND ROLLOVERS

Any participant who terminates employment has the option to receive a lump sum distribution of his or her contributions, interest and vested City contributions.  A participant who plans to take a lump sum distribution should carefully consider the Special Tax Notice Regarding Plan Payments.

GERP mails a "Request for Lump Sum Distribution" form to each participant whose employment has ended.  This form must be completed, signed and returned to GERP with the participant's instruction on how the distribution should be paid. GERP is able to process most distributions within 4 to 6 weeks after the written request is received.

* If you have earned less than 5 years of credited service you are required to take a lump sum distribution within 90 days from the date your employment ends. If a participant does not file a "Request for Lump Sum Distribution" form with GERP and

* the benefit payable is less than $1,000, a cash refund will be processed and a check mailed to the participant's last known address.

* the benefit payable is $1,000 or more, the Plan Administrator will open an IRA rollover account on behalf of the participant at Citywide Banks in Aurora, and the benefit will be transferred to that account.

In the event of a cash refund, there is a mandatory 20% withholding for federal income tax on the taxable portion of the distribution.

If you were employed for 5 or more years you can either take a lump sum distribution or leave your account balance with the Plan and collect a pension benefit at a later date.

Please note that your distribution amount is not equal in value to the future monthly benefits you could receive from GERP.  You should seek advice from a pension or financial planning expert before deciding to withdraw your account balance.

A married participant who elects to receive a lump sum distribution is required to provide his or her spouse's notarized, written consent.  Once GERP makes a distribution, the participant (and spouse) forfeits the right to receive a monthly pension or any other benefits from GERP.

For more information on Contributions, Refunds and Rollovers click on links below.

NEWSLETTER

GERPS latest yearly newsletter. Newsletter



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Contact GERP

ADMINISTRATIVE STAFF:
Thomas Connell, Pension Plan Administrator
Aaron D. Kahn, Benefit Administrator
Karen L. MacDonald, Administrative Assistant

12100 East Iliff Avenue, Suite 108
Aurora, Colorado 80014
Phone: (303) 368-9160
Fax: (303) 368-9181
Email: auroragerp@qwestoffice.net

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