My Choice: Retirement Savings Plan Member Handbook for Local Government Employees: Your My Choice Benefits

This section of the handbook explains how your plan benefits are calculated. It also covers the issues you may face when you apply for retirement which include:

  • how your My Choice: Retirement Savings Plan account works,
  • annuitization,
  • the selection of the payment options, and
  • working after retirement.

Other issues that are related to being a retired member are covered in the After Retirement section.

Go here for more on retirement.

Beneficiary Benefits

If you die (1) while in service in a My Choice-covered position (but not in the line of duty); or (2) after terminating service in a My Choice-covered position but before withdrawing your account, your designated beneficiaries will receive the balance of your account, to the extent you are vested.

Go here for more on beneficiary benefits.

Disability Benefits

If you become disabled in service while in a covered position, you may withdraw from your My Choice: Retirement Savings Plan account. You must submit proof that you are qualified for Social Security disability benefits and that the onset date of your disability occurred while you were serving in a covered position. 

Go here for more on disability benefits.

Vested Status/Credit for Years of Participation

Full vesting is based on your years of participation. You are always 100 percent vested in the fixed 3 percent portion and any rollover contributions you make. However, vesting in the value of the employer share (variable) contributions varies by how long you have been in the plan.

Again, the vesting schedule is as follows:

  • One year of participation = 20 percent
  • Two years of participation = 40 percent
  • Three years of participation = 60 percent
  • Four years of participation = 80 percent
  • Five years of participation = 100 percent

Only full years of participation count toward vesting in the employer contributions. For example, if you work four years and 10 months you would receive 80 percent of the employer share (variable) portion. One hundred percent vesting happens when:

  • you have five full years of participation,
  • you end service for normal retirement (age 62 + five years of service), or
  • a member dies in the line of duty.

You may change employers and jobs and still reach vested status. You must work a total of five years in any combination of My Choice-covered employment. Your employer must make contributions to the account in order to qualify for vesting.

You become 100 percent vested in the employer share (variable) contributions and earnings of the My Choice: Retirement Savings Plan after five full years of participation.

You may be entitled to receive years of participation during military service and certain types of leave.

Section Three : Receiving Benefits Before Retiring