Retiring with SERS: What You Need to Know

Transcription

1 Retiring with SERS: What You Need to Know A webinar for members preparing to retire

2 Program Agenda Retirement Eligibility Estimate of Benefits and Plans of Payment Social Security Offset/Windfall SERS Health Care The Retirement Process Reemployment

3 Current Retirement Eligibility Service Credit Age Any Age

4 Eligibility After Aug. 1, 2017 Service Credit Age

5 What is Not Changing No contribution changes No change to Cost of Living Adjustments (COLAs) No change to Final Average Salary No change to Health Care eligibility at this time

6 Estimate of Benefits

7 Pension Based On: Age Service Credit Final Average Salary (FAS)

8 SERS, OPERS, and STRS Your accounts may be combined Only one year of service credit can be earned in any 12-month period Service credit combined at retirement System with the greatest service credit = paying system

9 Things to Consider Marital Status Health Finances Beneficiary Needs for Health Care

10 Plans of Payment

11 Plan A Joint Life Allowance One-half the monthly pension payable to your surviving spouse upon your death

12 Plan B Single Life Allowance Highest income to you Payments cease with your death Beneficiary only receives any unused contributions

13 Plans C and D - Joint Life Allowance Plan C Set amount or percentage Minimum amount designated must be $100 a month for the beneficiary Plan D Same amount to beneficiary after your death

14 Plan E Guaranteed Allowance Beneficiary receives same amount as you but the payment ends on a specified date

15 Plan E Guaranteed Allowance Five-Year Plan July 1, 2015 June 30, 2020 Retiree pension for life Beneficiary covered upon death of retiree Beneficiary coverage ends

16 Plan F Joint Life, Multiple Beneficiaries Name up to four beneficiaries Designate percentage or flat dollar amount

17 Partial Lump Sum Option Payment (PLOP) 6 to 36 months Cannot reduce pension more than 50% Subject to taxes and Social Security offset/windfall

18 Spousal Consent Form Required for: Plan B Plan C (less than 50%) Plan E Plan F (if no court order) Spouse not selected as beneficiary PLOP

19 Continuation of Health Care for Spouse To ensure that your spouse s health care coverage continues after your death, you must choose a Joint Life Plan: Plan A Plan C Plan D Plan F

20 Life-Changing Events Death of Beneficiary Divorce Marriage or Re-marriage Pop Up Pop Down

21 Recap Age + Service + FAS = Pension Consider your beneficiary s needs Don t forget about the PLOP Death Benefit

22 Social Security Penalties Government Pension Offset (GPO) Windfall Elimination Provision (WEP)

23 Government Pension Offset Applies when receiving Social Security spousal benefit Social Security is reduced by two-thirds of the amount of SERS pension SERS pension is NOT affected

24 Offset Example $600 (SERS) $500 (Social Security) - $400 (2/3 of $600 = $400) $100 $600 pension $100 Social Security $700 Total Monthly

25 Windfall Elimination Provision Applies when receiving own Social Security benefit Exemption for those with 30 yrs. of substantial earnings under Social Security Maximum reduction is 50% of SERS pension amount SERS pension is NOT affected

26 HEALTH CARE COVERAGE

27 Retiree Health Care

28 When Can I Enroll? At retirement Age 65 Involuntary loss of coverage

29 You Should Know You cannot waive SERS health care coverage to enroll in or stay on your spouse s plan in another Ohio public retirement system, such as OPERS or STRS.

30 Eligibility for Health Care

31 More Service = Lower Premiums

32 More Service = Lower Premiums

33 The Cost of Coverage Your premium is based on: Qualified service credit Eligibility for premium subsidy Medicare status Health care plan selected

34 2015 Premium Example SERS Coverage Non-Medicare Plan (under age 65) No Premium Subsidy Subsidized Premiums 20 Years Qualified Service 30 Years Qualified Service $1,241 $638 $276 Medicare Plan $253 $144 $79

35 Extra Premium Help

36 Under 65?

37 Other Options The Marketplace is not for those covered by Medicare. Cost for insurance is based on household size and income. Visit

38 The Benefit of Turning 65

39 Medicare Basics Medicare is a federal health program covering persons 65 and older, and those under 65 with qualifying medical conditions. Apply through the Social Security Administration.

40 What Does Medicare Cover? Part A Part B Part C Part D

41 Medicare Options OR

42 Medicare Part B Reimbursement SERS will reimburse $45.50 per month to help you pay the Medicare Part B premium. You must have SERS coverage to receive the reimbursement.

43 Our Health Care Coverage

44 Our Health Care Plans Coverage Nationwide: Aetna Medicare Medical Mutual of Ohio Regional Plans within Ohio: HealthSpan AultCare Paramount PrimeTime

45 When You re Ready to Retire Formally notify your employer Life insurance with your employer Severance package from your employer Inform SERS of current health care coverage termination date Most important: Send your retirement application to SERS

46 Completing Your Service Retirement Application Send completed application to SERS at least three months prior to retirement date No earlier than six months prior Signature PLOP Health Care application Spousal Consent

47 Required Documents Copy of birth certificates for: yourself spouse* non-spouse beneficiary* Marriage certificate Direct Deposit Form Copy of Medicare card *If selecting a Joint Life plan and/or if dependent will be enrolled in health care coverage

48 Your First Pension Payment Approximately 45 to 90 days after your effective retirement date, payment will be direct deposited to your account All payments thereafter will be made on or about the first of every month

49 Pension Taxation Federal income tax Ohio state income tax Cannot deduct local or school district tax

50 Cost-of-Living Adjustment (COLA) 3% of base pension amount each year on anniversary date of retirement

51 Working After Retiring Returning to public employment Submit your Service Retirement Application first Must wait two months after retirement date to return No restrictions on private employment

52 Reemployment Payment of annuity (age 65+) = Your contributions + Part of employer contributions + Interest Refund prior to age 65 = Your contributions only

53 Contact Information and Links Call SERS toll-free at Visit the SERS website: Social Security Administration:

54 SERS and Social Media