Retiree Supplemental Share Plans
The Supplemental Share plans are provided for Firefighters and Police Officers only.
Important Notes
Below are important notes about the management of your Supplemental Share account after retirement:
- Investment Accounts - Your investment funds must continue to be reviewed and managed just as they were before you retired.
- Begin Payments - If you have not started receiving scheduled payments yet, you may choose one of the available payment options voluntarily until you reach age 701/2, at which point mandatory payment must begin.
- Loans - No loans are allowed from you Supplemental Share account.
- Penalties - Early withdrawal of funds will incur a 10% penalty.
- Withholding Tax - The Federal Government mandates that a 20% withholding tax be held on payments when the amount will cause the payout not to last 10 years or more.
Payment Options
You must select one of the following options upon termination of employment (including retirement):
1) Schedule periodic payment (ex., monthly)
2) Defer decision on payment option until age 70 1/2
3) Roll over funds to another qualified Retirement Plan, Traditional IRA, or Roth IRA.
4) Receive a lump-sum payout
For a more detailed explanation of these options read document Payout Options at Retirement (PDF).
No withdrawal is allowed until termination of employment
To request a Supplemental Share Payout Estimate Please contact the Retirement Office.
(to request an estimate of what your monthly payments would be with the options available)
Loans
No loans are allowed from you Supplemental Share account.
IRS Tax/Penalties
Please be aware of the following IRS rules concerning your Supplemental Share account:
1) Any withdrawals not rolled over to an IRA or another qualified Retirement Plan arrangement are subject to federal income tax at the investor's personal federal tax rate. State and local taxes may also be due on funds withdrawn
2) A 20% mandatory withholding for federal income tax is automatically deducted from withdrawal payments paid directly to you (with certain limited exceptions)
3) A 10% IRS penalty tax may be due on disbursements of funds prior to age 59 1/2. Certain conditions are exempt from this including the following: Disability, Death, Separation from service at or after age 55, and Annuity options
Forms & Publications
Beneficiary Designation Form (PDF)
Direct Deposit 175 Firefighter Form (PDF)
Direct Deposit 185 Police Form (PDF)
W4P Withholding Form (PDF)
175 Supplemental Share Termination Distribution Form (PDF)
185 Supplemental Share Termination Distribution Form (PDF)
Payout Options at Retirement for 457 RSVP, 175/185 Supplemental Share, and DROP (PDF)