For Active ERB Members. New Mexico Educational Retirement Board

Transcription

1 For Active ERB Members New Mexico Educational Retirement Board Two Offices Santa Fe, Albuquerque Defined Benefit Plan Who qualifies for NMERB benefits? NM Public School Employees More than.25 FTE 1

2 Service Credit Earned Service Credit Allowed for Purchase Service Credit Other schools Military Time (member must be vested) PERA Service Refunds, Rollovers, Restoring Refunds/Rollovers u Terminate employment, 20% IRS withholding, must refund full amount u Refunding contributions = no service credit Restoring Service Credit Purchasing withdrawn service credit 2

3 When Can I Retire? Tier One u 25 and Out u Includes earned and allowed service credit u Rule of 75 u Reduction in benefit if under age 60, 55 u Allowed service counts towards benefit only, not eligibility u 65 & 5 (includes PERA if applicable) When Can I Retire? Tier Two For those hired on or after July 1, 2010 but before July 1, 2013 u 30 and Out u Earned service credit; Allowed service counts towards benefit only, not eligibility u Rule of 80 u Reduction in benefit if under age 65, 60 u Allowed service counts towards benefit only, not eligibility u 67 & 5 (includes PERA if applicable) 3

4 When Can I Retire? For those hired on or after July 1, 2013 Tier Three u 30 and Out u Earned service credit; Allowed service counts towards benefit only, not eligibility u Soft minimum retirement age of 55 u COLA at age 67 u Rule of 80 u Reduction in benefit if under age 65, 60 u Allowed service counts towards benefit only, not eligibility u 67 & 5 (includes PERA if applicable) Annual Benefit Calculation Final Average Salary (FAS) (highest consecutive 5 fiscal year salaries) X Years of Service (based on fiscal year) X 2.35% (multiplier set by state statute) = gross annual benefit 4

5 Effective Date of Retirement 1 st day of the month following the last day of employment or receipt of application, whichever is later. Those on a 9 or 10 month contract, who terminate employment in May, automatically have an effective date of retirement of July 1. Benefit Options Option A most amount no survivor s benefit Option B least amount 100% survivor s benefit, age provisions for non-spouse Option C less than A, more than B 50% survivor s benefit, no age provisions 5

6 Retirement Estimate Your ERB Account 6

7 Thinking About Retirement? u Request an audited estimate u Must be within 1 year of retirement u Turn around time is 4-6 weeks Ready To Retire! Submit your application 60 to 90 days prior to your effective date of retirement Applications are at or at your HR office 7

8 Retirement Application u Application is 4 pages u Instructions to complete application u Checklist of required documents u Member Information u Employer Certification u Your HR office will submit these documents to ERB Retirement Packet Post-Retirement Info. & Instruction Sheet Final Selection of Benefit Form Estimate of Retirement Benefit Authorization for Direct Deposit State and Federal Tax Deduction Post-Retirement Employment Notice 8

9 Complete & Return Final Selection of Benefit form, notarized Must be original form Authorization for Direct Deposit State and Federal Tax Deduction Form Post-Retirement Employment Notice Payroll u Upon receipt of all correct forms, member is placed on payroll u Benefits are deposited on the last business day of the month u First check is a paper check u Direct deposit thereafter 9

10 COLA (Cost of Living Adjustment) Member may receive a COLA on: u July 1 of the year you turn age 65; 67 for Tier 3 members u July 1 of the year following your effective retirement date, whichever is later. Working After Retirement Non ERA Employment Return to Work Program u Must complete an application after 12 consecutive month layout u Must be approved prior to employment u RTWP retirees must make non-refundable employee contributions 10

11 Working After Retirement Return to Work Exception u Do not exceed $15,000 per fiscal year - or - u.25 or less of an FTE per fiscal year Independent Contractor u Must complete an application u Must be approved prior to employment NMERB Website u u Access forms u Retirement calculator u Log into your ERB account u Current events, news u Quarterly newsletter u Rules and statutes u Member handbook 11

12 For Your Information NM Retiree Health Care Authority u u Social Security Administration PERA (Public Employees Retirement Assoc.) Contact Us u to ERB-memberhelp@state.nm.us u Phone: u Albuquerque u Santa Fe u Toll free u In person: u 6201 Uptown Blvd. Ste. 204, Albuquerque *by appointment u 701 Camino de los Marquez, Santa Fe *walk-ins OK 12