Building Your Retirement Security

Weld County Retirement Plan Tier 1 Members

Effective January 1, 2024

Introduction

The Weld County Retirement Plan (the “Plan”) is a 401(a) defined benefit pension plan adopted by the County effective January 1, 1969. The Plan helps you establish a source of income for your retirement years. Through the Plan, you and the County set aside money during the time you are working to provide a lifetime income for you after you retire. While the Plan has been improved over the years, the basic intent has not changed; that is, to help provide for your future financial security.

The County’s retirement Plan is one source of dependable retirement income. When it’s combined with Social Security benefits and your personal savings, you should have the financial protection that will help you enjoy your retirement years.

This booklet summarizes the major provisions of the pension Plan as amended effective January 1, 2022 that apply to Tier 1 Members with an initial date of hire prior to June 16, 2003, including a former member who is rehired on or after June 16, 2003 and retained service credit for periods prior this date.

You can get an overview of the Plan by reading the information at the top of each page. More detailed information is given below the page headings, such as what retirement benefits you can expect to receive when you retire, how these benefits are calculated and other information about your participation in the Plan.

If you have questions about the Plan after reading this booklet, please contact Human Resources for more information.

Table of Contents

You and the County contribute to provide Social Security benefits for you and your dependents. Monthly payments, and medical and survivor benefits are part of Social Security benefits.

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Plan Highlights

The benefits from the Weld County Retirement Plan, along with your Social Security benefits and personal savings, can help provide a comfortable income for you during retirement.

Planning for your retirement is important. Part of that planning includes havingthefinancial resources to make yourretirement years comfortable and secure. The Weld County Retirement Plan can help assure a predictable income for your retirement years.

The Plan is flexible enough to meet many of your individual needs, and itcouldbejust theadded security you needto make your retirement financially secure.

With the Plan, you choose from a number of options to put together the retirement package that’sright for you.

First, you decide when you want to retire:

• Normal retirement begins at age 65 or upon attainment of the Rule of 80 (when you reach age 55 and your age plus years of service equal 80 or more) with a full benefit based on your years of credited service and final average monthly compensation at retirement.
• Regular early retirement with reduced benefits can begin as soon as you reach age 55 and have at least five years of credited service.
• Special early retirement provides a full benefit at age 62 or reducedbenefitat 55 with only eight years of credited service.
• Rule of 75 early retirement provides a full benefit as early as age 55, if your age plus years of credited service equals 75 or more.
• Delayedretirement, working past yournormal retirement age,is another option you might prefer.

Second, you choose how you want to receive your benefit:

• You may receive payments for your life, with the added assurance that at least 60, 120, or 180 monthly payments (for 5, 10 or 15 years) will be made, whichever you elect. This means if you diebeforereceiving all thepayments, your beneficiary will receive the remainder of the payments.
• You can receive adjusted payments for the rest of your life and your spousewill continue to receive 100% or 50% of the reduced amount for their life.
• You can receive larger payments for your life only, with no continued payments after your death.

Third, you don’t have to worry about losing your benefit if you die, become disabled or leave

County employment before retirement. The Plan has provisions to protect your benefits:

• If you terminate your employment before becoming eligible for retirement, but have completed at least five years of credited service, you may be entitled to a benefit when

you reach retirement age.

• If you become disabled while working for the County, you may be eligible to receive a disability retirement benefit.
• If you die before benefit payments begin, the Plan will pay a benefit to your surviving spouse or if none, to your designated beneficiary.
• If you take a military leave, you may have certain benefit rights under federal laws protecting members who perform qualified military service. Please contact Human Resources for more information.

Factors Affecting Your Benefit

Accrued benefit, accumulated contributions, compensation, breaks in service, credited service, date of hire and final average monthly compensation may affect the amount of your benefit. By understanding these terms, you will know how the Plan can work for you.

Accrued benefit is the amount of pension benefit you have earned at any point, based on the Plan’s formula, your credited service and your final average monthly compensation. The calculated amount is payable to you at normal retirement age, to the extent you are vested.

Accumulated Contributions means the total of your contribution to the retirement Plan plus credited interest. Various rates of interest have been credited on your contributions to the Plan over the years. The current interest rate is available from Human Resources. The Retirement Board reviews this rate periodically and may make adjustments based on current conditions.

A Break in Service occurs if you stop working for the County and do not return to service within 12 months of your termination date. When a break in service occurs and you receive a distribution of your accumulated contributions, you lose your prior credited service. If you return to work as a full-time employee before a break in service occurs, your credited service will be restored if you repay the trust fund – with interest and within 12 months of rehire – any refunded amounts you received when your employment terminated.

Some situations do not count as a break in service, such as:

• A temporary layoff, with a return to service within one year;
• A formal leave of absence, with a return to service within one year after the leave of absence ends;
• A military leave of absence, with a return to service within the time period required under federal rules;
• Not being reelected as a County official, with a return to service within eight years;
• Not being reappointed as an appointed official or deputy, with a return to service within eight years; and
• Unpaid leave allowed under the Family Medical Leave Act (FMLA) of 1993.

Credited service will not be counted for time away from active County service for the above situations, even though a break in service does not occur. Federal laws regarding military service may be an exception to this rule.

Compensation is your normal regular salary or hourly wage rate, including your contributions to this Plan and any salary reduction plan or deferred compensation plan. It does not include bonuses, overtime pay, extra pay, workers’ compensation, or payment in lieu of accrued vacation and sick leave, or County contributions to this or other benefit plans. Federal regulations limit the maximum amount of annual compensation used to calculate your retirement benefit.

County, as used in this booklet, refers to Weld County.

Credited Service is the period of time you are employed by the County on a full-time basis which is counted toward your retirement benefit calculation. This period includes your current service and your

prior service as defined on the next page. It also includes any service you may have purchased in 1996. Credited service under this Plan cannot be increased by overtime, nor does it include any period of service when you are covered by another retirement plan funded by the County, other than Social Security.

The retirement Plan began on January 1, 1969, so your credited service depends on when you were hired and when you joined the Plan:

• Prior Service. If you were hired on or before January 1, 1969, your prior service depends on when you elected to participate:

  • If you elected to participate before March 1, 1969, your prior service is counted from your hire date, but with a maximum of five years of prior service for continuous service before January 1, 1969; or
  • If you did not elect to participate in the Plan before March 1, 1969, no prior service credit is granted.

• Current Service. Yourcurrent service depends on the date you file a membership agreement.

  • If you were hired on or before January 1, 1969, and elected to participate before March 1, 1969, your current service begins on January 1, 1969.
  • If you were hired on or before January 1, 1969, and elected not to participate before March 1, 1969, your current service begins on the date you file a membership agreement.
  • If you were hired after January 1, 1969, and were not an employee of the Weld County Human Services Department on December 16, 1991, your current service begins on your hire date.
  • If you were an employee of the Weld County Human Services Department before December 16, 1991, your current service begins on December 16, 1991.

Your current service ends on your retirement date or the date your employment ends. You continue to earn current service during periods of disability or if you are receiving worker’s compensation before age 65.

• Purchased Service. If you purchased service in 1996 according to the terms of the Plan, the service you purchased will be included in your credited service. The purchased service will not count towards the Rule of 75 early retirement calculation.

Final Average Monthly Compensation (FAMC) is used in calculating your retirement benefit and is determined by taking 1/36th of your compensation (as described above) during the 36 highest-paid consecutive calendar months of credited service in your last 120 months (10 years) of credited service with the County, subject to the limit in the compensation definition. If you take an unpaid leave of absence allowed under the Family Medical Leave Act of 1993 during any part of a month, that month’s salary will not count toward your FAMC.

Tier 1 Members are members with an initial date of hire prior to June 16, 2003, including a former member who is rehired on or after June 16, 2003 and retained service credit for periods prior this date. The provisions of this booklet only apply to Tier 1 Members.

Participation and Contributions

You participate in the Plan from the day you are hired. You contribute a percent of your pay and the County contributes at least an equal amount to provide your retirement benefits.

PARTICIPATION

You begin to participate automatically in the retirement Plan on your hire date. Employees hired on or before January 1, 1969, had an option of when they could begin participating in the Plan. See the definition of credited service on page 7 for more information on optional participation before January 1, 1969.

Only full-time employees of the County (as defined by the personnel policies and procedures of the County) and any elected or appointed County officer or deputy are eligible to participate.

Officers and employees of any federally funded County program, which specifically excludes the use of federal funds for retirement programs, may not participate in the Plan. Similarly, “leased” employees, independent contractors and employees of the Weld County Health Department may not participate in the Plan. Effective December 16, 1991, all current employees of the Weld County Human Services Department who were previously excluded from the Plan became members of the Plan.

Once you become a participant in the Plan, you may not withdraw from participation unless you are no longer eligible to participate in the Plan.

CONTRIBUTIONS

You and the County share the cost of funding the benefits you will receive when you retire. Currently, you contribute 9% of your monthly compensation to the Plan. The County contributes at least the same amount as your contributions each year.

You and the County do not contribute to the Plan on your behalf during any period of employment when you are not receiving credit for current service.

There are special tax advantages to your contributions to the Plan after December 31, 1983. They are made on a before-tax basis. This means the amount of your retirement plan contribution is deducted from your pay before federal and state withholding taxes are calculated. Social Security taxes are calculated on your unreduced pay.

EARNINGS ON YOUR CONTRIBUTIONS

All contributions are deposited in a trust fund and invested. Your contributions are credited with interest each year at a rate determined by the Retirement Board. This rate applies to your contributions only, not to the rate the general retirement fund is earning.

You, or your beneficiary, are always assured of receiving the full amount of your accumulated contributions if you terminate your employment or die before you are eligible for a retirement benefit.

When You Can Retire

You can retire as early as age 55 as long as you have at least five years of credited service. You can retire at normal retirement age, or you may retire later.

NORMAL RETIREMENT

Normal retirement age under the Weld County Retirement Plan is the earlier of age 65 or when you reach age 55 and your age plus service equals 80 or more (Rule of 80). Your normal retirement date is the first day of the month on or after you attain normal retirement age.

The Plan has several provisions which allow youtoretire before yournormal retirement date, depending on your age and years ofcreditedservice.Theseearlyretirement optionsaredescribed below.

EARLY RETIREMENT

Regular Early Retirement: If you have completed at least five years of credited service, you may retire as early as age 55 and receive a benefit from the Plan. You may begin receiving reduced retirement payments right away or you can wait and begin receiving payments at any time before you reach normal retirement age.

If you decide to receive regular early retirement benefit payments before normal retirement age, your monthly payments will be reduced because it is expected that they will be paid over a longer period of time.

If you have at least five, but less than eight years of credited service and you begin receiving payments before age 65, your monthly payments will be reduced for every month payments start before age 65. (See Early Retirement Benefits section)

Special Early Retirement: If you have eight or more years of credited service, you may retire early under special early retirement and receive a full (unreduced) benefit at or after age 62. If you retire early under special early retirement and you elect to receive payments between the ages of 55 and 61, your benefit amount will be reduced for each month payments start before age 62. (See Early Retirement Benefit section)

Rule of 75 Early Retirement: Under Rule of 75 early retirement, with certain combinations of age and service, you may retire between ages 55 and 61 and begin receiving benefit payments immediately with no reduction in the monthly amount of the benefit earned as of that date.

To qualify for the Rule of 75 early retirement, you must have at least the combination of age and years of credited service shown below and be at least age 55 when you terminate employment:

Requirements for Rule of 75 Early Retirement

In other words, you may retire between ages 55 and 61 with an unreduced benefit payable immediately if your age and years of credited service add up to 75 or more (age 55 plus at least 20 years of credited service, age 56 plus at least 19 years of credited service, etc.).

*Under special early retirement, if you are at least age 55 and have at least eight years of credited service, you may retire and begin receiving benefit payments at age 62 with no reduction in the monthly amount. If you receive payments before age 62, they’ll be reduced as described under the special early retirement section above.

NOTE: To qualify for this Rule of 75 early retirement benefit, you must meet these age and service requirements when your covered employment ends. Also, the Rule of 75 early retirement calculation does not take into consideration any service you purchased in 1996 according to the terms of the Plan.

AMOUNT OF EARLY RETIREMENT PAYMENTS

Early retirement payments will be smaller than normal retirement payments because your years of credited service will be less than if you had continued working until normal retirement age.

DELAYED RETIREMENT

You may elect to continue working beyond age 65, thus delaying your retirement. In this case, you must file a written designation of a beneficiary for survivor benefits that would be payable if you were to die while still employed. Retirement benefit payments will begin once you actually retire.

WHEN PAYMENTS BEGIN

Your retirement date is always the first of the month following your last day worked. Your first benefit payment will be made one month after that date. For example, if your last workday is February 15, your retirement date is March 1, and your first retirement benefit payment will be made April 1.

Normal Retirement Benefits

The amount of your monthly benefit payment depends on your credited service and final average monthly compensation at retirement. These factors are used in a formula to calculate your benefit.

The retirement Plan uses a formula to calculate your monthly benefit payable at normal retirement or at delayed retirement (after normal retirement age). The amount calculated will be paid for your lifetime, with 120 months guaranteed. (See Forms of Benefit Payments section.)

The formula uses your years of credited service and your final average monthly compensation during the latter years of your career (when your pay should normally be highest). See Factors Affecting Your Benefit section for definitions of credited service and final average monthly compensation.

For those who end employment with the County on or after July 1, 2000, the formula for calculating your normal or delayed retirement benefit is:

Monthly Final Average Credited Benefit* = 2.75% X Monthly Compensation X Service

Example

Mary has worked for the County since March 1, 1995. She will be 65 on July 16, 2020, and plans to retire effective August 1, 2020. She expects her monthly pay to be at its highest continuous level in her last three years (36 months) of employment:2017 - $5,000; 2018 - $5,140; 2019 - $5,420; for a final average monthly compensation (FAMC) of $5,187.

Mary joined the retirement Plan on March 1, 1995, so her credited service from March 1, 1995 through July 31, 2020 (normal retirement on August 1, 2020) is 25 years and 5 months.

Mary’s Monthly

Retirement

Benefit = 0.0275 X $5,187 X 25 5/12 = $3,625.50

(2.75%) (FAMC) (Credited

Service)

Estimate Your Own Benefit

My Monthly Retirement

Benefit = 0.0275 X $ X = $

Minimum Monthly Benefit

The Plan provides an alternate method of calculating retirement benefits which may provide a greater benefit for some employees. It’s called a minimum monthly benefit and is equal to $25 times years of credited service.

Maximum Monthly Benefit

The maximum monthly pension an employee may receive is 82.5% of his average monthly compensation during the 12 highest-paid consecutive calendar months of credited service within his last 120 months of credited service. This maximum would only apply to employees with more than 30 years of service in some circumstances.

In addition to the maximum under the Plan, federal regulations include limits on what can be paid out of the Plan. While most employees will never reach these maximums, the maximums are stated in the Plan’s legal document.

NORMAL RETIREMENT BENEFIT ESTIMATOR

You can estimate your monthly benefit at normal retirement another way by using the following table. While it’s not an official calculation, it will give you an idea of what you might expect to receive. You need to estimate what you think your final average monthly compensation will be when you’re 65 and how many years of credited service you’ll have then. The table shows the monthly retirement benefit earned for each year of credited service at various levels of final average monthly compensation.

Depending on how close your age is to 65, your final average monthly compensation could be substantially different than your current monthly pay.

Using this table: If you estimate your final average monthly compensation to be $5,000, and if your expected credited service at your normal retirement date is projected to be 20 years, then your approximate monthly normal retirement benefit would be $2,750 ($137.50 x 20 years).

Foreach additional $100 of final averagemonthly compensation, add $2.75 to the last amount in the right-hand column.

My Estimated Retirement Benefit at Age 65

X = $

Years of Monthly Benefit MonthlyBenefit

Credited Per Year of Amount

Service Credited Service atAge 65

(Estimated) (Right-hand column above)

Early Retirement Benefits

You may retire as early as age 55 if you have at least five years of credited service. If you take regular early retirement and payments begin immediately, your benefits will be reduced. Under special and Rule of 75 early retirement, you may begin receiving unreduced benefits immediately, depending on your age and years of credited service.

The formula for calculating all early retirement benefits is the same as the normal retirement benefit formula. The amount calculated may be reduced depending on when payments begin and your years of credited service.

REGULAR EARLY RETIREMENT

You may choose to retire and receive a regular early retirement benefit under the Plan at any time between ages 55 and 65 if you have at least five years of credited service. The calculated benefit amount will be payable in full at normal retirement age or in a reduced amount between ages 55 and 64.

SPECIAL EARLY RETIREMENT

You may retire early under special early retirement as long as you are at least age 55 and have at least eight years of credited service. The amount calculated will be payable in full at age 62, or in a reduced amount between ages 55 and 61.

RULE OF 75 EARLY RETIREMENT

Under the Rule of 75 early retirement, you may retire early and receive unreduced benefits if you leave the employ of the County and retire at age 55 or later and the sum of your age and years of credited service equals 75 or more. You will receive the benefit you’ve earned without any reduction if you retire early under the Rule of 75 early retirement.

Please note that only service you purchased in 1996 does not count for the Rule of 75 early retirement calculation.

TIMING AND AMOUNT OF BENEFIT PAYMENTS

Early retirement benefit payments may begin immediately after your regular and special early retirement dates, but the amount of your monthly benefit will be reduced if the payments begin before a specified age. The reduction occurs because it is expected that payments will be made over a longer period of time.

Regular Early Retirement: If you are at least age 55, and have at least five, but less than eight years of credited service, the benefit amount will be reduced by 2.5% for each year payments begin before normal retirement age.

Special Early Retirement: If you are at least age 55, and have eight or more years of credited service, the benefit amount will be reduced by 2.5% for each year payments begin before age 62.

EARLY RETIREMENT PAYMENT EXAMPLES

Regular Early Retirement

Laura elects to take regular early retirement at age 60. She has seven years of credited service. She wants to start receiving payments immediately. Let’s assume her monthly retirement benefit is calculated to be $1,000, payable at age 65.

• Because shehasless than eight years of credited service, her benefit will be reduced from age 65.
• Laura’smonthly retirement benefit beginning at age 60 is $875.00 ($1,000 x 87.5%).
• If she was age 55 instead of age 60 and started payments immediately, her benefit would be $750 ($1,000 x 75%) per month.
• Withseven years of credited service, Laura isnot eligible for special early retirement, which requires eight or moreyears.

Special Early Retirement

Ben elects to take early retirement at age 60 with 14 years of credited service. He wants tobegin receiving monthly benefits right away. Let’s assume his monthly retirement benefit payable at age 65 is calculated to be $2,000.

• Because Ben hasmore than eight years of credited service, his monthly benefit beginning at age 60 is $1,900 ($2,000 x 95%), reduced from age 62.
• If he was age 55 instead of 60 and started paymentsimmediately, his benefit would be $1,650 ($2,000 x 82.5%) per month.
• Under special early retirement, if Ben was age 62, he could receive thefull $2,000 each month immediately.

Rule of 75 Early Retirement

Susan, age 58 with 17 years of credited service, is eligible for Rule of 75 early retirement because the sum of her age and years of credited service is at least 75, and she is at least age 55. She decides to retire and begin receiving benefit payments immediately.

• Let’s assume her monthly retirement benefit is calculated to be $2,500, based on her final average monthly compensation and years of credited service.
• She will receive the full amount – $2,500 – immediately because she qualifies for Rule of 75 early retirement.

Forms of Benefit Payment

There are several forms of payment available when you get ready to retire. You may elect to have benefits paid to you only or to you and a beneficiary.

The retirement Plan has several ways in which your monthly benefit can be paid. When you get ready to retire, you must elect a form of payment in writing at least 30 days before you want the payments to begin. You may change the option you have elected, but this change must also be made at least 30 days before the first payment is due. Elections must be filed with the Retirement Board. Once your payments have begun, you cannot change your form of payment, even if you incur a change in status due to divorce, marriage or the death of your beneficiary. However, your designated beneficiary may be changed after your payments have begun for the standard form of payment, the single life benefit, or any optional life and term certain form of payment elected.

SPOUSAL CONSENT: For married participants to receive benefit payments in any form other than the 50% joint and survivor option, the participant’s spouse must agree in writing to that form of payment and the agreement must be notarized or witnessed by a Plan representative. The Retirement Board has forms for this alternate designation, and payment cannot begin until a properly completed form is received by the Board. For purposes of electing optional forms of payments under the Plan, a civil union partner under Colorado law is treated as a spouse.

LIFE AND 10-YEAR CERTAIN: The benefit is a monthly payment to you for your lifetime. If you die before receiving 120 payments (10 years), your beneficiary will receive the remainder of the 120 payments. For example, if you die after receiving payments for 48 months, your beneficiary will receive the remaining 72 payments (120 minus 48). This is the standard form of payment for the benefit amount calculated by the Plan’s benefit formula.

JOINT AND SURVIVOR: The joint and survivor benefit pays an adjusted benefit to you for your lifetime. After your death, either 100% or 50% (whichever you initially elected) of your adjusted benefit will continue to your spouse for his or her lifetime. Upon the death of your spouse, payments will stop. If your spouse dies before you, payments will stop when you die. The 50% joint and survivor form of payment, with your spouse as beneficiary, is the only form of payment that married employees may elect without spousal consent.

LIFE AND TERM CERTAIN: This form of benefit payment is similar to the life and 10-year certain benefit and pays an adjusted benefit to you for your lifetime. If you die before receiving 60 payments (5 years) or 180 payments (15 years), whichever you elected initially, your beneficiary will receive the remainder of the payments.

SINGLE LIFE BENEFIT: You may elect to receive an increased monthly benefit for your lifetime only. The monthly payments stop when you die. There are no monthly survivor benefits (see “Minimum Payment” below).

DIRECT ROLLOVER: If you receive a lump sum payment from the Plan, you may be eligible to directly roll over all or a portion of your benefit that includes your before-tax contributions and earnings. You may request a direct rollover to a traditional IRA (Individual Retirement Account) or another qualified employer plan. See Human Resources for more information if this applies to you.

MINIMUM PAYMENT: If your monthly benefit when you retire is less than $100, the Retirement Board may elect to pay you an equivalent amount on a quarterly basis, or if the single sum value of your monthly benefits does not exceed $1,000 your benefit will be paid immediately in a lump sum. Also, if the total amount of benefits payable to you and your beneficiary is less than the total of your accumulated contributions, the difference will be paid to your beneficiary (or your estate if your beneficiary dies before you).

The table below shows how your benefit payments are affected if you elect an optional form of payment:

EFFECT ON BENEFIT AMOUNT IF OPTIONAL PAYMENT CHOSEN

(Assume Life and 10-Year Certain Payment = $1,000 per Month)

1. Receives remainder, if any, of 180 payments, after employee’s death
2. Receives remainder, if any, of 60 payments, after employee’s death

BENEFICIARY DESIGNATIONS

Persons eligible to be designated as your beneficiary are your spouse or any other person, subject to the spousal consent rules described earlier in this section. You may also name your estate as your beneficiary.

When you begin to participate in the Plan, you will designate a beneficiary for your accumulated contributions. You will also designate a beneficiary for your retirement benefit if you continue working beyond age 65. When you retire and select the form of retirement benefit payments you want, you will designate a beneficiary for survivor benefits. All beneficiary designations for married participants are subject to the spousal consent rules described earlier in this section.

Changing Your Beneficiary

For retirement purposes, you may change your beneficiary designation at any time up to 30 days before payments begin. After benefit payments have begun under either of the joint and survivor forms of payment, you may not change the beneficiary. However, your designated beneficiary may be changed after your payments have begun for the standard form of payment, the single life benefit, or any optional life and term certain form of payment elected.

OBTAINING YOUR BENEFITS

When you decide to retire, you should notify Human Resources at least 30 days in advance of the date you want payments to begin. You will decide on the type of retirement benefit you want to receive and when you want payments to begin. Also, you will name a beneficiary for any survivor benefits that may be applicable.

If you terminate your employment with the County prior to being eligible for early retirement, you will need to discuss your status as a vested member and distribution of your accumulated contributions with Human Resources.

If You Become Disabled

If you can no longer work because of a disability, you will continue earning credit toward retirement benefits. The disability benefit under this Plan is payable to you at normal retirement age, or when

payments stop under the County’s Long-Term Disability Plan, if that is later.

If you can no longer work because of a disability that occurs before normal retirement age, you will be eligible to receive disability retirement benefits. To be considered disabled, you must be eligible for disability benefits under the County’s Long-Term Disability Plan.

Disability retirement benefit payments will begin on the first of the month on or after the latest of: (1) the date the Board determines your disability occurred; (2) when payments stop under the County’s Long-Term Disability Plan; or (3) the date you terminate employment with the County. The amount of your disability retirement benefit will be based on your final average monthly compensation at the time you became disabled and credited service to normal retirement age, or the date you recover from your disability, if earlier. Payments will be made according to the form of payment you elect.

If You Recover

• If you recover from a disability after long-term disability payments stop and disability retirement payments from the Plan have started, payments will continue without change.
• If you recover before normal retirement age and return to work with the County as a full-time employee, you will resume participation in the Plan and your credited service will include the period of your disability.
• If you recover before normal retirement age and do not return to work with the County, no disability retirement benefits will be paid from the Plan. You may be eligible for a vested or early retirement benefit based on your final average monthly compensation at the time you were initially disabled and your credited service on your date of recovery from disability (including the period of disability).

Protecting Your Survivors

Your spouse will be eligible to receive a monthly benefit if you die before benefit payments begin.

Certain benefits under this Plan are protected for your survivors when you die.

DEATH BEFORE PAYMENTS BEGIN

If you die while in active service before normal retirement age or after you terminate as a “vested member” (as defined in this booklet) but before benefit payments begin:

If you are single, your beneficiary or estate will receive two times the amount of your accumulated contributions.

If you are married, your surviving spouse must elect the type of benefit to be paid. The options are:

1. A monthly benefit for life, which will be 75% of the benefit you had earned as of the date of your death.

Payments to your surviving spouse will normally begin on the first day of the month following your date of death, regardless of your age when you died.

OR

1. Two times the amount of your accumulated contributions in a lump-sum payment. If you purchased service in 1996, the value of your contributions to purchase this service, plus interest will be added to any refund distributed upon your death.

This amount is payable immediately after the election is made, regardless of your age when you died.

Upon notice of your death, the Retirement Board will send forms to the surviving spouse or designated beneficiary to elect to receive death benefits from the Plan. Payments will not be made until this completed form is received by the Retirement Board.

DEATH AFTER PAYMENTS BEGIN

• If you die after retiring and benefit payments have begun, payments will continue according to the payment method you selected.
• If you and your beneficiary die before the total amount of benefits paid is equal to the amount of your accumulated contributions or the amount of any guaranteed number of payments, your estate will receive the balance.

If You Leave

Terminating your employment with the County after five years of credited service entitles you to a vested benefit, payable at normal retirement age or at any time after age 55 in accordance with the early retirement provisions. With less than five years, you will receive your accumulated contributions.

If you terminate your employment with the County before you are eligible for early retirement and you have less than five years of credited service, you will receive a refund of your accumulated contributions. Payment will be made within 90 days after your last day of employment.

BECOMING A VESTED MEMBER

After five years of credited service, you become 100% vested, and you have an option when you terminate your employment:

• You can leave your accumulated contributions on deposit in the retirement trust and become a vested member, or
• You can elect to withdraw your accumulated contributions and give up your right to any other benefits under the retirement Plan. If you purchased service in 1996, the value of your contributions to purchase this service, plus interest will be added to any refund distributed upon your termination.

Elected officers and appointed officials of the County become 100% vested in their earned benefit regardless of their years of credited service if they are not reelected to County office or reemployed by the County within 30 days after their term of office expires.

If you do not elect to receive your accumulated contributions within 90 days of your termination date, you automatically become a vested member. However, as a vested member, you may elect at any time prior to commencing monthly retirement benefits under the Plan to receive your accumulated contributions. Once you receive your accumulated contributions, you give up your rights to all other benefits under the Plan. If you are married and elect to withdraw your accumulated contributions and give up your right to a vested benefit, your spouse must consent in writing to this form of payment.

VESTED BENEFIT AMOUNT

As a vested member in the retirement Plan, you have the right to receive an unreduced retirement benefit at normal retirement age. The benefit amount is based on the benefit formula in the Plan on the date your employment ends.

If your retirement benefit is less than $100 per month, the Retirement Board may elect to pay you on a quarterly basis, or if the single sum value of your monthly benefits does not exceed $1,000 your benefit will be paid immediately in a lump sum after you terminate employment. This single-sum payment would be made instead of a series of monthly payments later on.

You may also elect to have your vested retirement benefit payments begin as early as age 55. However, payments that begin before age 65 will be reduced in accordance with Early Retirement Benefit rules because they are expected to be paid over a longer period of time.

INCOME TAX

The taxable portion of your accumulated contributions or retirement benefit becomes subject to tax when distributed. If you receive the payment in a lump sum before age 59 ½, you also may have to pay an additional 10% tax. You may be able to use special tax rules to reduce the tax you owe, or you may roll over the taxable portion of your accumulated contributions or lump-sum benefit to another retirement plan or individual retirement account (IRA). When you leave the County you will receive details on your particular situation, your options, and the laws at that time. You may want to consult a tax advisor before you take a payment of your benefits from the Plan.

REEMPLOYMENT OF FORMER PARTICIPANTS

If you stop your employment with the County before being eligible for a retirement benefit and are later rehired on a full-time basis, your credited service for calculating future benefits will be determined by the break in service rules defined in the section on Factors Affecting Your Benefit.

REEMPLOYMENT OF RETIREES

If you are reemployed by the County on a full-time or part-time basis after having retired, your monthly benefit payments will stop while you are employed. When you retire again, your monthly benefit will be recalculated based on any additional credited service and compensation and will be reduced to reflect the value of your previous benefit payments received. However, if you retire under the Rule of 80 normal retirement, you can continue to work or return to work for the County without stopping retirement benefit payments, regardless of full-time or part-time employment status.

WORKING AFTER RETIREMENT

Employees who retire under the Rule 80 of normal retirement, regardless of full-time or part-time employment, will be subject to a new working retiree program effective July 1, 2024. Under the new program, you can only be a working retiree for 18 months. Existing retirees who returned to work prior to July 1, 2024 can only remain a working retiree for an additional 5 years after this effective date. All working retirees, regardless of full-time or part-time employment, will contribute to the Retirement Plan, except for those who were part-time working retirees on or before January 1, 2024.

Plan Administration

The Weld County Retirement Plan is managed by a five-member Retirement Board. Other important administrative information is covered here also.

CONTROL AND ADMINISTRATION

Plan administration is by a five-member Retirement Board, including:

• The incumbent County Treasurer;
• Two nonelected County employees, selected by their fellow employees; and
• Two qualified electors of the County, appointed by the County Commissioners.

Duties of the Retirement Board include management of the Plan, interpreting the Plan’s provisions, recommending any changes to the Plan for approval by the County Commissioners, and controlling the level of contributions to the Plan by the County and its employees. Decisions of the Retirement Board are final and binding upon current and former participants and related parties.

PLAN PERMANENCE

The County and Retirement Board intend to continue the Weld County Retirement Plan indefinitely but reserve the right to change the Plan or discontinue it. Any changes to the Plan must be for the exclusive benefit of the employees, retired employees or beneficiaries of plan benefits, and must be made to protect all retirement benefits earned as of the date of the change.

If the Plan ends: you will stop earning benefits and contributions to the Plan would stop; all affected funds in the retirement fund will be converted to cash and allocated to members and beneficiaries; and payments may be made in cash or nontransferable annuity contracts. Members or beneficiaries would first receive the total of their accumulated contributions (plus the accumulated value of the amount paid for service purchased, if any), and then the remaining funds would be allocated in accordance with the Plan document. No funds may be returned to the County unless all liabilities to members or beneficiaries have been satisfied. The Retirement Board will determine when benefits are to be paid.

PLAN YEAR

January 1 - December 31

ASSIGNMENT OF BENEFITS

The Plan is intended to pay benefits only to you or your beneficiaries. Your benefits cannot be used as collateral for loans or be assigned in any other way, except as permitted under Colorado law for child support, or effective January 1, 1997, for payments made in compliance with a court order due to a legal separation or divorce. You or your spouse may receive a summary of the Plan and domestic relations orders procedures by contacting Human Resources.

MAXIMUM BENEFITS

In accordance with federal regulations, the Plan has provisions detailing the maximum benefit you can receive. While most employees will never reach this maximum, the maximum is stated in the Plan’s legal document.

EFFECT ON EMPLOYMENT

The Plan in no way guarantees you continued employment with the County. If you terminate your employment or if you are discharged, the Plan does not give you any right to any benefit or interest in the funds contributed by the County or earned by the retirement trust, except as specifically provided in the Plan.

Similarly, there is no prohibition in the Plan on terminated or retired employees receiving or continuing to receive retirement benefits, if eligible under the Plan, because they obtain employment with another employer.

PLAN DOCUMENT

This booklet describes the Plan in everyday language and tries to avoid the technical language of the Plan’s legal document. If, in our efforts to make the Plan easy to understand, we have omitted or misstated any of the Plan’s provisions, the Plan’s official legal document must remain the final authority. If you wish, you may examine the legal document in Human Resources. The Plan described in this booklet was most recently amended and restated effective January 1, 2022.

Social Security Benefits

You and the County contribute to provide Social Security benefits for you and your dependents.

Monthly payments, and medical and survivor benefits are part of Social Security benefits.

Social Security benefits add to your County retirement Plan benefits to provide dependable income for your retirement years. Throughout your working career you and the County (and other employers, if applicable) contribute annual amounts set by federal law to provide Social Security benefits.

These benefits may include monthly retirement payments to you beginning as early as age 62, or sooner if you become disabled. Hospital and medical benefits begin for you and your dependents at age 65, or earlier in case of disability. Your dependents may qualify for survivor’s benefits if you die.

WHEN YOU ARE ELIGIBLE

Before you can qualify for benefits, you must work for a required period of time under the Social Security program. Under current law, you receive one quarter of coverage (to a maximum of four quarters per year) for certain amounts of earnings in a year. For example, in 2023 for each $1,120 of earnings, you receive one quarter of coverage.

Once you have 40 quarters of coverage, you are fully “insured” for life. “Insured” means you’ll be able to receive benefits at retirement. The amount of the monthly benefit will depend on your earnings during your working career.

YOUR BENEFITS

Calculating your monthly Social Security benefit is complicated and requires detailed information about your age, date of retirement, disability or death, and your year-by-year earnings history. The Social Security Administration makes this calculation for you when you retire.

If you are born before 1938, the age at which you can receive your full Social Security benefit (your full retirement age) is age 65. If you are born in 1938 or later, your full retirement age gradually increases from age 65 to age 67, as discussed below. You can begin your benefits before your full retirement age, but not earlier than age 62. If you begin your benefits before your full retirement age, you will receive a permanently reduced amount.

A change in the Social Security law passed in 1983 provides that beginning in the year 2003 the age for full Social Security benefits will gradually be raised, reaching age 67 in the year 2025:

• The age for full benefits will increase by two months each year from 2003 to 2008, when it will be age 66.
• Starting in 2020, the full benefit age will increase by two months a year until 2025, when it will be age 67.

MEDICARE

The four parts of Medicare – hospital insurance (Part A), medical insurance (Part B), Medicare Advantage (Part C) and prescription drug coverage (Part D) – provide health care protection for people 65 and up. Also eligible for Medicare are disabled people under age 65 who have been entitled to Social Security disability benefits for 24 months. Insured employees and their dependents who need dialysis treatment or a kidney transplant because of permanent kidney failure also have Medicare protection.

MORE INFORMATION

Detailed information about monthly benefit payments and Medicare coverage is available from the local Social Security office. Representatives will answer your questions and provide booklets about Social Security programs. You can find the location of the nearest office in the telephone directory under “U. S. Government, Social Security Administration.” Otherwise, for additional information about these benefits, you may contact the Social Security Administration toll-free at 1-800-772-1213, or access the Social Security Administration website at www.ssa.gov.

ANNUAL STATEMENT

Each year, you will receive a personalized statement showing the retirement benefit you have earned to date based on your compensation and service. Additionally, this statement gives you an estimate of the benefit amount you can expect to receive from the retirement Plan if you continue to work for the County until age 65 and retire at that time.