RETIREMENT SEMINAR OCTOBER 25, Presented by Retirement Benefits , Ext. 260

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1 RETIREMENT SEMINAR OCTOBER 25, 2018 Presented by Retirement Benefits , Ext. 260

2 BENCOR National Plan Brevard Public Schools Special Pay Plan for Sick Leave and Annual Leave Presented by: David Payne BENCOR Retirement Consultants

3 Why do you have the BENCOR Special Pay Plan? Taxes Taxes Taxes

4 Tax Savings & Deferrals Federal Income Taxes Deferred FICA Social Security and MediCare Taxes (7.65% Permanently Saved)

5 Special Pay Comparison Current w/o Plan $ 10, , Fed Tax FICA Medicare With BENCOR Plan $ 10, $ 0 Fed Tax Deferred $ 0 FICA Saved $ 0 Medicare Saved $ 10, Deposited 6, Net Pay

6 Contribution Limits Annual Maximum Limits 100% of Salary up to $54,000 Multiple Contributions Made over DROP Years Salary calculated from July 1st to June 30th

7 Contributions during DROP Multiple Annual Contributions Increasing percentage of Sick leave at end of each year of DROP Year 1 20% Year 2 25% Year 3 33% Year 4 50% Year 5 100%

8 Your Account General Account Fixed Interest Guarantee of Principal & Interest Guaranteed by Lincoln Financial Life Ins. Co. Currently 1.55% No fees assessed against account All deposits go into this account unless you choose otherwise Market Based Investment Options Over 30 Mutual Fund Choices Account Management Fees

9 Plan Features Liquidity & Flexibility Safety Tax-Deferred Earnings Optional Investment Accounts Loans Probate Avoidance

10 Employee Account Information Using your account (Subject to IRS Guidelines) Withdrawals at employment separation Use as income or take as you need Loans ½ of account balance up to $50,000 (one time $100 fee) Change Investments Over the phone, online Rollovers In & Out

11 What happens at DROP termination? DROP Accumulations for most participants $100,000 to $200,000 DROP Options Take Cash Pay taxes Rollover Defer taxes Combination Cash & Rollover

12 Investment Advice BENCOR provides dedicated local investment representatives for assistance to Special Pay participants OUR LOCAL REPRESENTATIVES ARE David Payne Travis Payne 982 Brevard Ave #2 Rockledge, FL (By appointment only)

13 Questions & Answers

14 Payroll and Termination Pay

15 FINAL CHECK Paper check not direct deposit In cases (sent to your school/department secretary)

16 ACCRUED VACATION AND SICK TIME Vacation Accumulated hours (only up to 60 days) are paid within 30 days of your retirement date Any amount of vacation above 60 days will be forfeited No balance is maintained Sick Accumulated hours are paid within 60 days of your retirement date Percentage of sick payout is based on years of service in the District

17 ACCRUED VACATION OR SICK PAID >$500 BENCOR Special Pay Plan 401(a) /403(b) If an employee receives greater than $500 in either accrued vacation or accrued sick time the funds will be deposited into a qualified retirement plan held by BENCOR. This plan is mandated by BPS Policy.

18 ACCRUED VACATION OR SICK PAID <$500 Paper Check If an employee receives less than $500 in either accrued vacation or accrued sick time they will receive the funds from BPS in a paper check These funds will be taxed: 25% federal withholding FICA (6.2%) Medicare (1.45%) FRS (3%) - for vacation payout only The paper check will be mailed to your home address on file

19 CONTACT INFORMATION Jessica Mosca, Payroll Manager ext 625 Lori Allyn, Payroll Staff Accountant ext 653 Payroll ext 650

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21 Insurance Benefits Third Party Administrator for the FSRBC is no longer FBMC it is now AON/bswift Life Insurance Please contact Securian/Minnesota Life not the BPS Benefits Office

22 Insurance Benefits Proving 18 months of prior coverage to add a dependent is not required. However, outside of open enrollment, a dependent can only be added due to a qualifying event and notice to add the dependent must be given to BPS within 30 days of the event.

23 Topics Termination Pay Insurance Benefits FRS Pension Plan Overview FRS History Summary FRS Pension Benefit Estimate FRS Benefit Options FRS Reemployment Rules Retirement Meetings

24 FRS Pension Plan Overview Employee Contributions FRS members are required to make a 3% retirement contribution. DROP participants are not required to make the employee contribution.

25 FRS Pension Plan Overview Vesting, Average Final Compensation, and Normal or Full Retirement Initially Employed before 7/01/11 Initially Employed on or after 7/01/11 * Vesting: After 6-years of service. Average Final Compensation (AFC): Calculated on the average of the 5 highest fiscal years of salary. Normal or Full Retirement: After 30 years of service at any age. At age 62 after vesting (6 years). After age 62 upon vesting (6 years). Vesting: After 8-years of service. AFC: Calculated on the average of the 8 highest fiscal years of salary. Normal or Full Retirement: After 33 years of service at any age. At age 65 after vesting (8 years). After age 65 upon vesting (8 years). * Employees who have never worked for any FRS employer before 07/01/11.

26 FRS Pension Plan Overview Cost of Living Adjustment (COLA) Retirees will have an individual COLA based on years of service before 7/1/11. Formula: Years of service thru 6/30/11 X 3% = COLA Total years of service at retirement

27 SAMPLE HISTORY SUMMARY

28 FRS History Summary Summary of your service history with FRS shows: Years of service credit Salary for each year

29 SAMPLE RETIREMENT ESTIMATE

30 FRS Retirement Estimate An estimate of your retirement benefit options for a given retirement date. The retirement date on the estimate will always be the first of the month following your actual retirement date with the District. For example: Retiring from BPS 12/31/18 FRS retirement date 1/1/19

31 SAMPLE RETIREMENT ESTIMATE

32 Retirement Benefit Options Under the Pension Plan, you may choose to receive your retirement benefit under one of four lifetime benefit options. Option 1 provides a monthly benefit for your lifetime, but does not provide a continuing benefit to a beneficiary.

33 Retirement Benefit Options Option 2 provides a reduced monthly benefit for your lifetime, with a guarantee that your beneficiary will be eligible for a continuing benefit for 10 years from the date you retire (including any period of DROP participation). After 10 years of retirement, no benefits are payable to your beneficiary, in the event of your death.

34 Retirement Benefit Options Options 3 and 4 provide a continuing benefit to your spouse upon your death. Under certain circumstances, you may select a qualifying dependent beneficiary other than a spouse as a joint annuitant. Please contact for more information.

35 Retirement Benefit Options Option 3 provides a reduced benefit for your lifetime, and upon your death, the same monthly benefit to your spouse for his/her lifetime.

36 Retirement Benefit Options Option 4 provides an adjusted monthly benefit for your lifetime and upon your death to your spouse for his/her lifetime. Upon the death of either you or your spouse, the monthly pension to the survivor is reduced by onethird.

37 Health Insurance Subsidy FRS provides a subsidy of $5.00 per month for every year of service (not including years in DROP) up to $150 to help with the cost of insurance benefits.

38 Retirement Benefit Options Beneficiary or Joint Annuitant May Be Changed Note: Your benefit will be recalculated when the joint annuitant designation is changed under option 3 or 4 Option Choice Cannot Be Changed - If you cash or deposit your benefit payment - When your DROP start date takes effect

39 FRS Reemployment Rules for Retirees Retirees are required to wait 6 calendar months before returning to work for an FRS employer. If hired during months 7-12, they must agree to suspend retirement benefits. There are no reemployment exceptions.

40 FRS Reemployment Rules for Retirees ALL Brevard Public Schools employees (Instructional, Administrative, and Support) wishing to return after 6 calendar months must have written approval from the office of Deputy Superintendent/Chief Human Resources Officer.

41 Renewed Membership Pension Plan retirees reemployed after 07/01/2010 are not eligible for renewed membership and may not earn another retirement benefit. Beginning 07/01/2017, previous Investment Plan members who terminated employment and took a distribution or rolled-over their Investment Plan funds after 07/01/2010 are eligible for renewed membership in the Investment Plan only.

42 Retirement Meetings Employees should schedule a retirement meeting to complete the necessary paperwork to retire from the District. The meetings are held in the Retirement Office several times per month from 9:00 a.m. 3:00 p.m. Most employees tend to retire May July, and we can start meeting with them as early as January, so we recommend calling for an appointment as soon as employees decide on a retirement date.

43 Steps for Retiring Step One Pension Plan Members Obtain an estimate of what your FRS Pension Plan monthly benefit will be on your planned retirement date either: Online at By calling the MyFRS Financial Guidance Line at , Option 3.

44 Steps for Retiring DROP Participants Review the DROP Accrual FRS mailed you after you enrolled in DROP. If you cannot find it, contact FRS at to request a copy.

45 Steps for Retiring Step Two Because retirement meetings fill up quickly, we recommend that all employees planning on retiring contact our office 6 months in advance for information, and to schedule an appointment.

46 Retirement Office: , ext.260 Carlos Lorenzo, Retirement Supervisor Debbie Burgess, Retirement Specialist Patty Snorf, Retirement Administrative Secretary For free financial counseling call the MyFRS Financial guidance to speak with an unbiased financial planner.

47 QUESTIONS?

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