Pension
DMBA provides a pension benefit to individuals who were hired before a certain date, depending on your employer. It is known as the Master Retirement Plan, and it provides individuals with a monthly payment throughout retirement.FAQs
The Master Retirement Plan is a defined benefit (formula-based) pension that pays a fixed monthly amount to eligible retirees. The employee’s age, eligible years of service (generally up to 33), and the average of the five highest years of salary are used to calculate the payment in retirement.
Employees hired before April 2010 are eligible for a Master Retirement Plan benefit if they have worked at least five years. Employees at certain participating employers may also be eligible for a pension if they were hired before January 2020. Check with your employer to determine your eligibility.
The normal age to receive an unreduced Master Retirement Plan benefit is 65. Employees who are retired may be eligible to begin receiving a reduced pension payment as early as age 55.
Your benefit is calculated using the average of your highest five years of salary multiplied by your years of service multiplied by either 0.75% or 1.5% depending on when you were hired.
When the present value of your Master Retirement Plan benefit is calculated to be less than $100,000, a lump sum may be available if you are no longer employed.
You initiate your benefit when you fill out DMBA’s retirement application. We recommend completing this form about three months before retirement.
The monthly amount you receive will vary depending on the payment option you choose. These options vary in benefits for surviving spouses and heirs. We recommend you consult with your financial adviser to determine the appropriate payment option. Please see the benefit handbook for more information on the different payment options.
If you choose a level payment option, there no is cost of living adjustment. The increasing options guarantee a 4% increase on your payment each year. These options generally start about one-third lower with a break-even period between 18 and 21 years.
No. Your election of your payment option is permanent and cannot be reversed.
Both salaries and years of service are calculated to the month.
Resources
Articles
- Forecasting Your Retirement workbook (DMBA)
- Master Retirement Plan Summary Plan Description (0.75% formula) (DMBA)
- Master Retirement Plan Summary Plan Description (1.5% formula) (DMBA)
Tools
- Pension Benefit Estimator (be prepared to log in to your account) (DMBA)
- Retirement Income Planner Calculator (DMBA)