CalSTRS and the Adjunct Faculty

Transcription

1 CalSTRS and the Adjunct Faculty

2 Adjunct Faculty Retirement Options at Santa Monica College All public employees must be in a retirement program CalSTRS Defined Benefit Program available to all adjunct faculty Also participate in Defined Benefit Supplement Program Defined Benefit Program mandatory for all academic employees working at least 67 percent of full time Other academic employees may either elect into Defined Benefit Program or other available retirement options Cash Balance Social Security

3 Defined Benefit Formula Service Credit x x = Age Factor Final Compensation Member-Only Benefit

4 Part-Time Educators Two components will require special consideration when nearing retirement: Service Credit Final Compensation

5 What is Service Credit? The number of full time equivalent years working in the Defined Benefit Program It is not necessarily the number of years employed Marianne was hired in 2005 to teach a 50 percent assignment, and has done so for the past 10 years Marianne would have 5 years of service credit, not 10 years

6 Determining Service Credit Earnings are divided by an annual rate of pay* Earnings Annual Pay Rate* = Service Credit *What a member would earn working at that pay rate on a full-time basis

7 Determining Annual Pay Rate Hourly and daily pay rates are converted to an annual pay rate by using a full time equivalent (FTE) Full time equivalent defined The time a person, employed on a part-time basis, would be required to teach in a school year if employed full time in that position

8 Minimum Standards for FTE Part-Time Community College Instructors: 525 hours, plus office hours if paid Community College Adult Education: 875 hours, plus office hours if paid Community College Counselors, Librarians, and non-credit Instructors: 175 days or 1050 hours

9 Annual Pay Rate Example Marc is hired to teach 150 hours (25 percent load) at $75.00/hour. What is his annual pay rate? Full Time Equivalent (FTE) is 600 hours for the school year Multiply $75.00 times 600 hours Annual pay rate (compensation earnable) for this position is $45,000.00

10 Service Credit Example How much service credit did Marc earn for the year? Hourly Rate Hours Worked Earned Income $ hours = $11,250 Hourly Rate FTE Annual Pay Rate $ hours = $45,000 Earned Income Annual Pay Rate Service Credit $11,250 / $45,000 =.250

11 Service Credit Reported Annually by CalSTRS Shows service credit earned from each employer If incorrect, see your employer

12 Unused Sick Leave Adds To Service Credit Amount of sick leave days divided by FTE days at last employer For hours of sick leave accrued, hours divided by 6 to equal days Sick leave at prior employer can be transferred to new employer

13 Increase Service Credit From Prior Service Non-member service, including prior CB service Out-of-state service Sabbatical service Maternity/paternity leave

14 Increase Service Credit From Prior Service Earlier it s purchase, less expensive it will be Several options to purchase A lump-sum cash payment Monthly cash installments Monthly tax-deferred payroll deductions, if offered by your employer A lump-sum rollover of pre-tax funds from: 401(a) 401(k) 403(b) 457(b) IRA (Traditional) plans

15 Final Compensation CalSTRS 2% at 60 (First hired before 2013) Final Compensation Fewer than 25 years of service credit Highest three consecutive school years 25 years or more of service credit Highest 12 consecutive months CalSTRS 2% at 62 (First hired 2013 or later) Any amount of service credit Highest three consecutive school years

16 Final Compensation Facts Highest average earnable compensation, not highest average earnings Higher pay rate = higher retirement Multiple pay rates are a weighted average Eliminating lowest paying assignment can increase final compensation Will also reduce service credit and income while working Sum of earnings / sum of service credit

17 Social Security Benefits Social Security benefits reduced if earn less than 30 years of substantial earnings in employment covered by Social Security and also get benefit from non-covered employment Lesser reduction if work between 20 and 30 years under Social Security Reduction won t exceed $413 (if turning 62 in 2015) or 50 percent of benefit from non-covered employment Calculate Social Security benefit (including reduction) at Spousal benefit reduced by 2/3 of CalSTRS benefit

18 CalSTRS Resources Available To You MyCalSTRS Videos Workshops Benefits Counseling Newsletters Publications