THE SCHOOL DISTRICT OF PHILADELPHIA RETIREMENT DEPARTMENT

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1 THE SCHOOL DISTRICT OF PHILADELPHIA RETIREMENT DEPARTMENT 440 North Broad Street, Suite G8 PHILADELPHIA, PENNSYLVANIA Telephone: (215) Fax: (215) Website: Susan C. Gilbert, Deputy GUIDELINES FOR RETIREMENT 1. Attend a Foundations meeting: It is very important that you attend a Foundations for Your Future program. These meetings are held to give the members general information about Public School Employees System (PSERS) benefits and services. They are held at various times and locations by counselors from PSERS. The schedule may be posted at your work location or you can check the Southeast Region on the PSERS website, or contact the local regional office in Warminster at (215) Request an estimate: Request a PSERS retirement estimate using the Request for Estimate form (PSRS -151), available online at or by calling PSERS at and requesting the form. This must be completed in order to schedule an exit meeting (step 5). a. Complete form PSRS 151 and send to the address listed on the form. i. If you are leaving employment due to medical reasons, check off Disability under the Type of Estimate Request section and you will receive a disability retirement estimate. ii. If you are applying for disability retirement, the Job Description page (PSRS-1237) of the Disability Application (PSRS-49) must be completed by the School District of Philadelphia Department. b. You should receive a response approximately 6-8 weeks after submitting the request. Review the PSERS estimate information, verify years of service and study the benefit options and the various methods to withdraw your contributions and interest. c. Make sure you have made all Purchase of Service requests, if applicable. Purchase of Service requests are for members who did not receive credit for former full-time or part-time service. Applications for Purchase of Service of fulltime or part-time work are available on the PSERS website. Purchase of service applications must be submitted prior to termination of employment. 3. Notify the School District: Once you have made your decision to retire, you must submit a Notification of form to the Office. This form is available on the website, under the forms section. The form can also be obtained from the Office by calling (215) a. Teachers and other select PFT members*: Your letters must be received by the Office and date stamped by April 15 th in order to continue paid medical benefits through the summer. The effective date must be June 30. (*Please refer to your union contract to verify eligibility under this category; this does not apply to all PFT members). b. CASA represented employees: Your letters must be received by the Office and date stamped by March 15 th in order to continue paid medical benefits through the summer. The effective date must be between June 30 and August 31. c. For all others: Benefits end on the last day of the month in which you are retiring.

2 4. Receive an Acknowledgement Letter. Once you submit the Notification of form to the Office, you will receive an Acknowledgement Letter. a. It is important that you keep this letter for your records, as you may need it to provide proof of your separation to other institutions, such as Social Security. b. You have until your retirement date to rescind or change your retirement date if you change your mind. You must complete the Rescission or Change of form, which is available on our website, and submit it before your last day. This cannot be completed over the phone. 5. Schedule and attend a Exit counseling meeting: Schedule a retirement exit counseling session with the local regional PSERS office in Warminster at (215) After you make your appointment, you will be sent an Exit Counseling packet from PSERS within two weeks. Exit counseling sessions are held in Philadelphia, Warminster, Morton, Norristown and Pottstown. a. This is where all retirement options are decided. The meetings take approximately two (2) hours. Bring your retirement estimate, completed Authorization for Direct Rollover, if applicable, beneficiary s information (address, social security number, date of birth and proof of birth if selecting a joint survivor option), and direct deposit information. PSERS staff will provide an overview of all options, taxes on your benefits and the availability of health insurance offered by PSERS Health Options Program. Part of the session will be spent completing your retirement forms. Only you can choose whether or not to withdraw your contributions and interest and which option is most appropriate for your needs. You may want to meet with a financial planner to decide the best option for you. Be prepared to answer the following questions: a) Which option do I want? b) What are the different types of retirement and how it will have an effect on my monthly pension? Retiring under Early may decrease your monthly benefit. Type: Normal Early Disability Hire Date: Before July 1, 2011 Hire Date: On or after July 1, 2011 You must meet at least one requirement: You must meet at least one requirement: - You are age 62 with at least one (1) full year - You are age 65 with at least three (3) years of of credited service at the time you terminate credited service at the time you terminate active or inactive service. active or inactive service. - You are age 60 and have 30 or more years of - You attain at least 35 years of credited service credited service. and reach an age that in combination is equal to - You have at least 35 years of credited service or greater than 92 (e.g., 36 years of service plus regardless of age. age 56 equals 92). Employees who are under age 62 at Employees who are under age 65 at termination termination and have at least five (5) years of and have at least ten (10) years of credited credited service. service. To be eligible to apply for a PSERS disability retirement benefit, you must: - Have at least five (5) years of credited service with PSERS, AND - Be physically/mentally unable to perform the duties as indicated in your job description, AND - Apply for disability retirement benefits within two school years of your last day of qualifying service or paid leave, whichever is later; and you must have been disabled at that time c) Do I want to withdraw my contributions and interest in a lump sum? o If yes, do I want my contributions and interest paid to me, or directly rolled over into an eligible retirement plan?

3 o If you want to roll over any portion of your money into an eligible retirement plan, you will need an Authorization for Direct Rollover (PSRS ) You will need to contact the financial institution of your choice for information about establishing a qualified plan and completing the Authorization for Direct Rollover form. Submit completed retirement application to PSERS. The packet should include: Application for (PSRS-8) Authorization for Direct Rollover (PSRS-1264) (if applicable) OTHER IMPORTANT BENEFITS: Please review the sections below for important information on the following programs: Health insurance (section 7) Life Insurance (section 8) Summer Reserve Pay (section 9) Tax Sheltered Annuities (section 10) Termination pay (section 11) Contact information for District offices & related resources Review your health insurance coverage options. Local 1201 (32BJ) Employees: o Medical Insurance: In the month following your retirement, 32BJ will send you an application for continuation of medical coverage (COBRA). Call 32BJ at (877) for monthly premiums. *When your COBRA ends, you may be eligible to enroll in the SDP group coverage; however, you must have Normal (see below for definition). Contact the SDP Employee Benefits Office at (215) for more information. o Dental, vision and prescription benefits: Employees represented by Local 1201 should contact their union health and welfare fund at (215) to review dental, vision and prescription benefits after retirement. PFT, 634, CASA and Non Represented Employees: o Understand your eligibility: Depending on your retirement type and years of service, you may be eligible for COBRA (continuation of coverage) for either 18 months or until you are Medicare eligible. If you have Normal or Disability retirement or you have 30 years of credited service, Pennsylvania State Legislature Acts 110/43 provides you additional coverage opportunities. You and your spouse may continue in the SDP group health plan* until you are eligible for Medicare benefits (usually age 65). *This includes dental, vision and prescription benefits for those who are SPAP, CASA and Non-represented only. Employees represented by PFT and 634 should check with their Health and Welfare fund for eligibility details. Please review the chart below that explains years of service and COBRA eligibility. Years of Service with PSERS Less than 30 years Length of coverage Notes: After 18 months, employees may be eligible for coverage through PSERS 18 months Health Options or they must find coverage on an individual basis. Act 110/43 states that certain employees are eligible to continue benefit until they eligible for Medicare benefits (usually age 65). These employees must: 30 or more Until age 65 - Retire with 30 or more years or service, OR years - Take superannuation retirement on or after age 62, OR - Receive PSERS disability benefits (see below) Disability Until Medicare To be eligible to apply for a PSERS disability retirement benefit, you must:

4 eligible or age 65, whichever comes first - Have at least five (5) years of credited service with PSERS, AND - Be physically/mentally unable to perform the duties as indicated in your job description, AND - Apply for disability retirement benefits within two school years of your last day of qualifying service or paid leave, whichever is later; and you must have been disabled at that time How to enroll: Medical Insurance: We make every effort to get you your enrollment materials promptly. Our third party administrator, Discovery Benefits, will send you an application for continuation of coverage (COBRA) no more than 44 days after your separation. Check the Benefits website, for current monthly premiums. Rates adjust annually every July 1. Dental, vision and prescription benefits: (1) Local 634 employees should contact their union health and welfare fund at (215) to review dental, vision and prescription benefits after retirement. (2) PFT employees should contact their union health and welfare fund at (215) to review dental, vision and prescription benefits after retirement. (3) Non-represented, CASA and SPAP employees can apply for continuation of dental, prescription and vision benefits at the same time they apply for continuation of medical coverage through Discovery Benefits. Eligibility for these benefits is the same as it is for medical insurance. Are you 65 years old or older or eligible for Disability? o Social Security and Medicare: If you or your spouse is age 65 or over or eligible for Medicare due to disability, contact Social Security at (800) or about enrolling in Medicare Part B. If they require a Request for Employment Information form, contact the SDP Employee Benefits Office (215) to have this completed. Most SDP employees and dependents do not need to have Part B while working if they still receive medical coverage as a result of employment. o Medicare Coverage: If you are Medicare eligible contact PSERS Health Options Program at (800) for information. Premium Assistance: A reimbursement of up to $100 per month is available to eligible PSERS retirees. Premium assistance eligibility and application procedures are discussed at the PSERS Foundation for Your Future and Exit Counseling meetings (see steps 1 and 5). The application is automatically sent to new retirees who meet the eligibility requirements. Contact the Premium Assistance office at (866) Life Insurance: If you are retiring under normal retirement and have the SDP life insurance policy for 10 years, you will be eligible to receive a $2,000 term life policy at no cost to you. This policy is a death benefit policy only with no cash value. You will receive information concerning this policy within 1-3 months after your retirement date. Call the Employee Benefits office at (215) to confirm eligibility and to update beneficiary information. Additionally, if you had the $25,000 policy while you were an active employee, you have the option to convert the remaining $23,000 to an individual

5 policy with the Aetna. To convert the policy, complete the Application for Conversion of Group Term Life Insurance, available on including the premium calculation, and return to Employee Benefits within 31 days of separation. If you are not retiring under normal retirement, you are not eligible to receive a paid up policy; however, you may be able to convert to an individual policy with the carrier, Aetna. To convert the policy, complete the Application for Conversion of Group Term Life Insurance (under the forms section of including the premium calculation, and return to Employee Benefits within 31 days of separation. Summer Reserve Pay: If you are a ten month employee, the summer reserve pay will be paid out to you directly. Contact the Payroll Department at (215) with any questions. Tax Sheltered Accounts: If you contributed to a 403(b), Roth 403(b), 457(b) and/or ROTH 457(b) during your employment, please contact your investment provider to discuss withdrawal options and tax implications. Distributions (such as loans, rollovers, exchanges, partial withdrawals and full surrenders) from any of the current approved vendors will require employer authorization, which can be obtained through a Disbursement Eligibility Certificate (DEC). A DEC can only be obtained through the Manager system, Instructions on how to withdrawal funds from your account(s) and how to use the Manager system are available the Employee Benefits website, The Manager help-line number is Termination Pay: Contact the Payroll Department at (215) with any questions pertaining to the payout of accumulated personal illness, personal leave or vacation days (Termination Pay). If you are at least 55 or will turn 55 years old in the calendar year in which you leave the District, your Termination Pay must be distributed to one of the School District s approved 403(b) Plans (and 457(b) Plans, if applicable). o Contact one of the five vendors listed below. Once selected, you will have to open an account specifically for Termination Pay and also complete the Termination Pay Provider Election and Limit Verification form which will be provided by your financial representative. He or she will submit the required paperwork to the Payroll Office which will then wire the funds to the company. Company Name Company Contact Name Contact Phone Number AXA-Advisors Ernest L. Repice (888) Lincoln Investment Planning April Reavy x1417 MetLife Resources Fatima Katz (610) x 4032 TIAA-CREF Calvin Thompson (267) VALIC Susan Essig (877) Federal income tax will not be withheld from contributions to 403(b) Plan and 457(b) Plan accounts and you will not be required to pay federal income tax until you withdraw the money from your Plan account(s). Current IRS guidelines indicate that School District contributions of Termination Pay to a 403(b) Plan account are not subject to FICA or Medicare taxes (7.65% combined). However, FICA and Medicare deductions are withheld on amounts contributed to 457(b) Plan accounts. You will not have to pay Pennsylvania income tax and Philadelphia City Wage tax on the District s contribution of your Termination Pay to your 403(b) Plan account or your 457(b) Plan account. Please check with your financial advisor regarding your specific contribution limits. o Once your Termination Pay is electronically wired to your selected company, you may take an immediate lump-sum cash distribution of the balance of your 403(b) and 457(b) Plan accounts (including any Termination Pay contributions), or you may roll the money into an IRA or another eligible retirement plan. Alternatively, you may continue to invest your account balance

6 under the Plan(s) until a later distribution date chosen by you. Distributions (such as loans, rollovers, exchanges, partial withdrawals and full surrenders) from any of the current approved vendors will require employer authorization, which can be obtained through a Disbursement Eligibility Certificate (DEC). A DEC can only be obtained through the Manager system, Instructions on how to withdrawal funds from your account(s) and how to use the Manager system are available the Employee Benefits website, The Manager help-line number is If you are less than 55 years old in the year in which you leave the District, you have the option of receiving your Termination Pay in two ways: o Have the check sent directly to you (this is the default payment option). If you want your payment in the form of a check, then Payroll will calculate it and send it to you. No action is required by you. o Send the money to a tax-deferred account. Follow the instructions above in the section to deposit and withdrawal the funds Contact Information for School District Offices and Related Resources Department or Company Website Phone Number SDP Employee Benefits (215) SDP (215) SDP Payroll (215) Manager for 403(b) and 457(b) accounts PSERS- Public School Employees System Local Warminster office: (215) PSERS Health Options Program Social Security Administration Personal Notes:

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