Introducing Our New Online Retirement Application. Annual Delegates Meeting November 2017

Transcription

1 Introducing Our New Online Retirement Application Annual Delegates Meeting November 2017

2 Choices: Cashier vs. Self Checkout

3 Choices: Cash vs. Mobile Payment

4 Choices: Analog vs. Digital

5 Retirement Filing: Paper vs. Online Estimates: Paper vs. MyNYSTRS Benefit Election: Maximum vs. an Option Retirement Timeframes: Date of Retirement Filing Date Withdrawal of Application Option Change Choices at NYSTRS Filing for Service Retirement When Critically Ill

6 Choices at NYSTRS Paper Retirement Application vs. Online Retirement Application

7 Paper Application Paper Filing What You Need to Know All inclusive o Date of retirement, option, direct deposit, and withholding Received the postmark day if sent certified or registered U.S. mail Response within 2 weeks o Letter confirms elections

8 Paper Application Issues Not Properly Notarized Problem If Notary Page Is: Blank Missing information (e.g., who appeared before the notary) Inconsistent with the information on file (e.g., name change)

9 Paper Application Issues Not Properly Notarized Notarization Is Blank Invalid form Need to submit new application In Most Other Cases NYSTRS will request additional information from you or the notary

10 Paper Application Issues Incorrect Number of Beneficiaries Makes Benefit Election Unclear Maximum no beneficiary Lump Sum multiple primary and contingents are OK Guarantee one primary; multiple contingents are OK Survivor / Pop-up - one primary

11 Paper Application Issues Stray Marks/Whiteout Makes Benefit Election Unclear Option is invalid Defaults to the Maximum if we receive no response from member Can delay payments

12 Paper Application Issues Stray Marks / Whiteout / Wrong Number of Beneficiaries Must: File properly completed Election of Retirement Benefit (RET-54.6) Be received no later than 30 days after your retirement date Be sent by certified or registered U.S. mail to be considered received on the date it was postmarked

13 Online Service Retirement Application What You Need to Know Must have a MyNYSTRS account All inclusive o Date of retirement, option, direct deposit, and withholding Received the day it s submitted Response immediate o confirmation o Track progress online o Letter confirms elections

14 Online Service Retirement Application Issues Avoided No need to sign in front of a notary Cannot make stray marks or use whiteout Cannot choose wrong number of beneficiaries No need to send by U.S. mail Cannot file too early o Must be 54+ to access o Cannot file more than 90 days before retirement date

15 Online Service Retirement Application Need to Have Your: Beneficiaries Social Security number, address, and date of birth Direct deposit information Withholding election Cannot Currently File Online If You: Have a Domestic Relations Order Have an application already on file Are filing for disability Want an alternative option

16 Online Service Retirement Application We Verify Your: Address Social Security number Date of birth Enter Date of Retirement Cannot be retroactive No later than 90 days in the future Questions: Are you on an individual contract? Have you been on a leave of absence? Are you a member of another NYS Retirement System? **Are you critically ill?**

17 Online Service Retirement Application Choose an Option Choose one of the standard options Each option is described The number of possible beneficiaries is explained Can update election before submitted Enter Beneficiary Information Name, address, Social Security number, relationship, and date of birth Survivor/Pop-up percentage* *Percent may be limited if beneficiary is a non-spouse and more than 10 years younger than you

18 Online Service Retirement Application Enter Direct Deposit Information Checking or savings account Routing number Account number Note: NYSTRS cannot make payments to foreign banks or trusts W-4P Withholding Election Choose withholding status for federal tax Your benefit is not taxed by: o New York State o Social Security o Medicare Can submit new W-4P online once retired

19 Online Service Retirement Application Review Your Application You can save progress at any time without submitting the application An reminder is sent to members who have not yet submitted Final Review Check your date of retirement, option, and beneficiary Check your direct deposit banking information and withholding election

20 Online Service Retirement Application Enter Password and Submit Confirmation View what was submitted Track progress of retirement Will receive letters confirming elections Once Submitted Unable to change information online (Need to submit paper forms)

21 Retirement Estimates Paper Estimates vs. MyNYSTRS Estimates

22 Retirement Estimates Request Paper Estimates By attending a benefits consultation By calling us at (800) By sending in an Estimate Request form (EST-35.1) or a written request Can request multiple estimates Can request estimates any time

23 MyNYSTRS Estimates Run and Print Estimates Immediately in MyNYSTRS account Run estimates with different dates of retirement and beneficiaries Paper Estimates Needed When: A DRO is on file You request disability estimates You work part time You have less than 5 years of credit

24 MyNYSTRS Estimates Enter: Date of retirement Last day on contract Beneficiary for Survivor / Pop-up options o Relationship o Gender o Date of Birth Project salary Run Estimates o Use percentage increases o Use dollar amounts o Can project out multiple years View estimate immediately Includes pension factor and Final Average Salary Includes standard options

25 Retirement Options at NYSTRS Maximum vs. An Option

26 Option Selection at Retirement Elect Your Option Options Include: Maximum Lump Sum Guarantee Survivor Pop-up Survivor All options provide a lifetime benefit to you

27 Maximum Benefit The largest benefit you can receive, paid to you for life Payments cease at your death You Might Consider If You: Have no need to protect a beneficiary Need highest possible income in retirement

28 Largest Non-Declining Lump Sum The largest possible one-time payment to your beneficiary(ies) at your passing The ability to name multiple beneficiaries The ability to change beneficiaries at any time You Might Consider If You: Don t have long life expectancy Want to leave a lump sum at your passing Want to leave a benefit to multiple beneficiaries

29 5- or 10-Year Guarantee If you die, your beneficiary receives your benefit for the balance of the period When the period expires, the beneficiary is no longer eligible to receive a benefit One primary and multiple contingent beneficiaries Can change beneficiaries any time through the remainder of the period You Might Consider If You: Want to protect beneficiaries for a short period of time (e.g., to pay off mortgage; to help with college payments)

30 Survivor Options One beneficiary receives a lifetime benefit if they outlive you Cost based on age Cannot change beneficiary later than 30 days after retirement date Coverage of 100, 75, 50, or 25%* You Might Consider If You: Need to protect one person with a lifetime benefit *Percentages may be limited if choosing a non-spouse based on age

31 Pop-Up Survivor Options Same coverage as Survivor Options, plus An increase to Maximum benefit if beneficiary predeceases you You Might Consider If You: Need to protect one person with a lifetime benefit Need added income of Maximum if beneficiary predeceases you

32 Retirement Timeframes When Can I Retire? Must be 55+ years old Must have 5+ years (10+ if Tiers 5-6) Look out for key milestones! o Get estimates o Go to a PREP Seminar o Go to a Benefit Consultation Usually members retire the first day they are off payroll (e.g., 7/1) Only you can decide when!

33 Countdown to Retirement NYSTRS Mobile App 2

34 Retirement Timeframes When Should I File? Must file an Application for Retirement with NYSTRS File 0-90 days before retirement date Generally file 30+ days in advance If coming up to an important milestone (e.g., 20 or 30 years) you may want to file closer to your retirement date o Check MyNYSTRS Service Credit tab to see service posted to your account

35 Retirement Timeframes When Am I Retired? You have 14 days after your retirement date to withdraw or change your date of retirement o Must send in a signed request o Employer may not allow you to rescind your resignation

36 Retirement Timeframes When Can I Change My Option? You have 30 days after your retirement date to change your option o File properly completed Election of Retirement Benefit (RET-54.6) o After 30 days, your option (and sometimes beneficiary) are locked in for life

37 Service Retirement When Critically Ill

38 Service Retirement When Critically Ill Must: Be eligible for service retirement Complete service retirement application List illness Choose Largest Non-Declining Lump Sum (Tiers 2-6) Be on file prior to date of passing

39 Service Retirement When Critically Ill Payment to Beneficiary(ies) If member passes before the retirement date, we will pay out the Largest Non-Declining Lump Sum payment under Disability Retirement and one half the Paragraph 2 in-service death benefit After retirement date, benefits would be based on Service Retirement, which may be substantially higher Payments for either are generally higher than the Paragraph 2 in-service death benefit plus the Member Contributions Fund

40 Service Retirement When Critically Ill Member: Example o Is planning on filing for service retirement o Turns 55 on 7/1/18 o Discovers on 4/2/18 (s)he has a life-threatening illness o Was planning on choosing the Survivor Option Member Could: File for service retirement online o Within 90 days of retirement date o Cannot file for a service retirement date earlier than 55 o Already planning on retiring o Can change option up to 30 days after retirement date

41 Service Retirement When Critically Ill Can Use the Online Application Must provide a clear description of your illness Options Must choose the Largest Non-Declining Lump Sum option (Tiers 2-6)* *Tier 1 can choose Declining Reserve Beneficiaries Largest Non-Declining Lump Sum option can: o Have multiple primary beneficiaries o Have multiple contingent beneficiaries o Have different beneficiaries than under the Paragraph 2 death benefit The beneficiaries can be changed at any time

42 Service Retirement When Critically Ill Optional Pages Direct Deposit form o Critically ill members can skip o No payments until direct deposit is filed W-4P form o Can opt not to submit a W-4P at this time, in which case we will withhold as if you are married claiming three withholding allowances Filing When Critically Ill Application must be on file before passing Members: Have 14 days after retirement date to withdraw the application or change date Have 30 days after retirement date to change option

43 Service Retirement When Critically Ill Contact NYSTRS Have Questions? o Call us at (800) , Ext o Send us a secure message through MyNYSTRS Request estimates from NYSTRS Check your Benefit Profile Find more information on NYSTRS.org

44 MyNYSTRS for Active Members Schedule consultation and PREP seminar Apply for a loan Change address Access Benefit Profile Run estimates Apply for service retirement

45 MyNYSTRS for Retired Members Track retirement processing Change address View Retired Member Profile Change direct deposit and withholding Print 1099s

46 What Will You Choose?