Pension & Profit Sharing Plans Forms for Philadelphia
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FAQ
You can continue to work for the City of Philadelphia for up to four years. When you officially retire within four years of your DROP enrollment date, you will begin to receive your monthly pension benefit, plus the accumulated balance in your DROP account. YOUR ELECTION TO PARTICIPATE IN DROP IS IRREVOCABLE.
If you have questions, need information or want to apply for benefits, visit , visit your local office or call 1-800-772-1213.
Your traditional pension plan is designed to provide you with a steady stream of income once you retire. That's why your pension benefits are normally paid in the form of lifetime monthly payments. Increasingly, employers are making available to their employees a one-time payment for all or a portion of their pension.
There are two main types of pension plans: the defined benefit and the defined contribution plan. A defined benefit plan guarantees a set monthly payment for life (or a lump sum payment on retiring). A defined contribution plan creates an investment account that grows throughout the employee's working years.
For example, a pension plan might offer a monthly benefit of 50% of your pay (based on an average of your pay over your last three years of service) if you retire at age 55 and have at least 10 years of service. With that same pension, you might be able to work longer and retire at age 65 with 30 years of service.
In the SERS defined benefit pension plan, your benefit is defined by a calculation that considers your years of service and salary. Your benefit grows each year based on an annual benefit accrual rate and, when you retire, is paid to you in equal monthly payments for your lifetime.