Duluth Teachers’ Retirement Fund Association

Plan Summary - Old Plan

Membership Eligibility:  DTRFA Old Plan benefits are available to members of the DTRFA who were first hired prior to July 1, 1981, and have not taken a refund of those contributions.

Contributions:  Employees contribute 5.5% of salary.  Employer contributes 5.79% of salary.

Eligibility for Retirement Benefits:

   Full Retirement Benefits: Eligible at age 60, or if age plus years of service totals at least 90.

   Early Retirement Benefits: Eligible at age 55 with ten or more years of service.  An early retirement reduction is applied equal to ¼% per month under full retirement age.

Note: Old Plan members receive a retirement benefit from the Old Plan, or from New Plan Tier I, or from New Plan Tier II, whichever is highest.

Annual Benefit Formula:  1.45% times high 5 average salary, times total years of service.

Vesting:  Retirement benefits vest after 10 years of service, or at age 60.

Disability Benefits:  Eligible after 5 years of service.  Must be totally and permanently disabled from teaching.  Full benefits are paid regardless of age.  Termination of employment is required.

Survivor Benefits:

    Death Before Retirement - Refund of two times member contributions, plus 6% interest, to surviving beneficiaries.  If member had at least ten years of service at time of death, a surviving spouse may instead, elect an annuity equal to 120% of the refund amount.

    Death While Eligible to Retire - If member had at least 10 years of service and was over age 55 at death, a surviving spouse may elect to receive a 100% joint and survivor annuity of equivalent actuarial value.

    Death After Retirement - The optional annuity elected at retirement is payable.  Options include a 50% joint and survivor annuity, a 100% joint and survivor annuity, or a life and term certain annuity for 5, 10, 15 or 20 years.

Refunds:  30 days after ceasing to render teaching service, a member may receive a refund of their contributions with 6% interest.  Refunds may be rolled into an IRA to defer current taxation.

Deferred Benefits:  A vested, terminated member may leave contributions in the fund until eligible for retirement.  The annuity formula at time of termination is used.  Benefit is increased 3% per year between termination and age 55, and increased 5% per year after age 55 until benefit payments begin.

Cost of Living Adjustment:  Eligible benefit recipients receive an automatic 2% increase in their benefits each January 1.  An additional increase is allowed to the extent that 5-year annualized returns of the fund exceed the plan's assumed rate of return of 8.5%.

(This summary was last revised July, 2003)