TAMU System Retirement for TRS Participants

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Piers Henry
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1 TAMU System Retirement for TRS Participants

2 OVERVIEW Eligibility for Retirement Retirement Process Retirement Benefits Medicare Coordination Resources

3 RETIREMENT? LORRAINE GEORGE

4 LORRAINE MORE TIME WITH THE GRANDKIDS!!!!

5 MORE TIME FOR GOLF!!! LESS TIME WITH LORRAINE!!! GEORGE

6 MORE TIME FOR GOLF!!! & MORE TIME WITH LORRAINE!!! GEORGE

7 SOURCES FOR RETIREMENT INCOME NON-TRADITIONAL SOURCES Winning the lottery Computer glitch at bank Inheritance from Uncle Earl

8 SOURCES FOR RETIREMENT INCOME Retirement Plans (TRS or ORP) Social Security Personal Savings Part-Time Job

9 RETIREMENT ELIGIBILITY Eligibility Rules for TAMUS Retirement Eligibility Rules for TRS Retirement

10 TAMUS RETIREMENT ELIGIBILITY TRS Participants: Eligibility rules based on date of hire Requires drawing an annuity with TRS Return to work restrictions

11 TAMUS RETIREMENT ELIGIBILITY Requirements: Hired on or BEFORE 8/31/2003 At least age 55 and at least 5 years of state service, or Age plus years of service equal at least 80,or At least 30 years of service AND You have 3 years of service with the A&M System, The A&M System is your last state employer, and You have an active TRS account

12 TAMUS RETIREMENT ELIGIBILITY Requirements: Hired AFTER 8/31/2003 At least age 65, or Age plus year of service equal at least 80,or At least 30 years of service credit AND You have 10 years of service with the A&M System, The A&M System is your last state employer, and You have an active TRS account

13 TRS RETIREMENT ELIGIBILITY

14 TRS RETIREMENT ELIGIBILITY What is my TRS tier? TRS has 6 retirement tiers Based on: TRS start date Age Years of TRS service Your tier will be shown on your TRS statement or on your My TRS page.

15 TRS TIERS

16 TRS GRANDFATHERING Legislative changes occurred September 1, Anyone who met one of the below criteria by 9/1/05 is considered grandfathered: Age years of service Rule of 70

17 TRS-BREAKING IT DOWN PAYMENT OPTIONS

18 RETIREMENT PROCESS When should I begin the retirement process? Approximately 6 months before your retirement date Who should I contact? TRS Engineering HR/Payroll Social Security (Medicare)

After the 90 th work day End of the Fall semester (12/31) Timing in

19 WHEN TO RETIRE Only you can determine when you are ready to retire, but some date considerations include: End of the fiscal year (8/31) After the 90 th work day End of the Fall semester (12/31) Timing in the month I am considering retirement, what date should I choose?

20 TRS STANDARD ANNUITY CALCULATION Average 3 or 5 highest salaries 2.3% Years of TRS service Annual standard annuity

21 TRS STANDARD ANNUITY CALCULATION EXAMPLE Average 3 or 5 highest salaries 2.3% Years of TRS service Annual standard annuity $52,174 x 2.3% x 30 = $36,000

22 ANNUITY PAYMENT OPTIONS STANDARD ANNUITY OPTION 1: (100% Joint Life Annuity) OPTION 2: (50% Joint Life Annuity) OPTION 3: (Payments Guaranteed for 60 Months from Retirement Date) OPTION 4: (Payments Guaranteed for 120 Months from Retirement Date) OPTION 5: (75% Joint Life Annuity)

23 PARTIAL LUMP-SUM OPTION (PLSO) At retirement, if you meet the eligibility requirements, you can elect to be paid a partial lump-sum amount Three partial lump-sum options: 12 months of standard annuity 24 months of standard annuity 36 months of standard annuity Will my standard annuity be reduced if I participate in PLSO? ABSOLUTELY! Future post-retirement increases will be based on the smaller annuity amount

24 EARLY-AGE RETIREMENT If you do not meet the normal-age requirements, you may be eligible for early-age retirement Requirements based on tier Tier 1 & 2 examples: You are at least age 55 with 5 or more years of service credit, but do you meet rule of 80; OR You have 30+ years of service credit, but do not meet the rule of 80 If I take an early-age retirement, will my annuity be reduced from the standard annuity formula? ABSOLUTELY!

25 TRS REFERENCE INFORMATION TRS Phone Number (800) TRS Website My TRS

26 TAMUS SUPPLEMENTAL RETIREMENT PLANS

27 TAX-DEFERRED ACCOUNT (TDA) 403 (b) Traditional TDA (pre-tax contributions) Roth TDA (post-tax contributions) 6 vendors available $18,000 max limit for 2017 $24,000 max limit for 2017 if age 50+

28 TDA VENDORS VALIC (800) (979) FIDELITY INVESTMENTS (800) VOYA (800) LINCOLN FINANCIAL GROUP (800) (979) PENTEGRA (866) TIAA-CREF (800)

29 TEXA$AVER DEFERRED COMPENSATION PLAN (DCP) 457 Traditional DCP (pre-tax contributions) Roth DCP (post-tax contributions) $18,000 max limit for 2017 $24,000 max limit for 2017 if age 50+ Administered through third party vendor Phone: Website:

RETIREMENT PLAN RESOURCES TAMU System Website: https://www.tamus.

30 RETIREMENT PLAN RESOURCES TAMU System Website: Links to: General Retirement information and planning Teacher Retirement System Optional Retirement Program Tax Deferred Account Deferred Compensation Plan Forms

31 PAYROLL RESOURCES Engineering Payroll (979) Martha Dobrovolsky (979) Randy Shirley (979)

32 TAMUS RETIREE INSURANCE

33 FAQS What benefits do I get? When am I eligible for TAMUS retiree benefits? How much will it cost me? What doctors can I go to? What if I want to travel? How/when do I enroll in Medicare? What insurance pays first?

34 STATE CONTRIBUTION If an employee meets the TAMUS retirement eligibility criteria, then as a retiree, the person is eligible for a lifetime state contribution toward insurance premiums.

35 MEDICAL COVERAGE Same medical options as current employees May be eligible for the 65 Plus plan Not required to have a wellness exam as a retiree to receive lowest premium rates When eligible for Medicare, TAMUS health plan becomes secondary unless working 50% effort or more.

36 MEDICAL COVERAGE If decline TAMUS health coverage (and not covered under another state health plan) may apply ½ of state contribution to: Alternate Basic Life ($50,000) AD&D Dental Vision

37 ADDITIONAL BENEFITS Dental and Vision Options same as current employees Long-Term Disability No longer eligible upon retirement Flexible Spending Accounts No longer eligible upon retirement

38 LIFE INSURANCE Basic Life Remains $7,500 life/$5,000 AD&D Alternate Basic Life (if certify other medical) $50K max if under age 80 $30K max age 80+ Optional Life $100K max if under age 70 $60K max if age $30K max age 80+ Accidental Death & Dismemberment (AD&D) $200K max if under age 70 $60K max age 70+

39 RETIREE PREMIUM PAYMENTS Premiums will be paid through P&A Group after retirement Payment options: Secure Online Payment Integrated Voice Response (by phone) ACH Payment (automatic bank draft) Check or Money Order

40 PROOF OF TRS ANNUITY REQUIREMENT TRS participants MUST provide proof they are receiving a TRS annuity within 90 days of their retirement date to maintain TAMUS insurance coverage. Copy of TRS letter verifying annuity amount and date payment will begin should be sent to Engineering HR.

41 LETTER SAMPLE

42 MEDICARE Part A: Hospitalization No cost Part B: Medical Covers physician services, outpatient services, medical equipment, testing, etc. Requires a premium and will coordinate with TAMUS coverage $183/year deductible and 20% coinsurance Part D: Prescription Drug Requires a premium and will NOT coordinate with TAMUS coverage

MEDICARE B PREMIUMS Standard Part B premium for 2017 is $134 If Medicare Part B paid through monthly Social Security benefit, cost is reduced ($109 on average) You'll pay the standard premium amount

43 MEDICARE B PREMIUMS Standard Part B premium for 2017 is $134 If Medicare Part B paid through monthly Social Security benefit, cost is reduced ($109 on average) You'll pay the standard premium amount if: You enroll in Part B for the first time in 2017 You don't get Social Security benefits. You're directly billed for your Part B premiums. You have Medicare and Medicaid, and Medicaid pays your premiums. (Your state will pay the standard premium amount of $134.) Your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount. If so, you ll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.

44 MEDICARE COORDINATION Retired Not working Medicare is primary Retired Working less than 50% Medicare is primary Retired Working 50%+ TAMUS Health is Primary

45 A&M CARE 65+ HEALTH PLAN Available to Medicare-primary retirees Lower premium $400 deductible $1,400 out-of-pocket max Must be enrolled in Medicare A & B; provide copy of Medicare card Retiree & all covered dependents must be age 65 or enrolled in Medicare A & B

46 SILVER SNEAKERS Available to Medicareprimary retirees enrolled in A&M Care or 65 Plus health plans.

47 TRS WORK RESTRICTIONS If approved to return as a working retiree : Requires a full calendar month break in service, then limited to part-time employment (no more than 50%). Requires full calendar year break in service to remove work restrictions.

48 OTHER TAMUS BENEFITS No more work! Retiree ID card Rec Center access Survivor Insurance Library access Campus parking

FINAL THOUGHTS Retiree annual enrollment period in July TAMUS insurance plans provide national and international coverage Retirees not required to have a wellness exam to receive

49 FINAL THOUGHTS Retiree annual enrollment period in July TAMUS insurance plans provide national and international coverage Retirees not required to have a wellness exam to receive lowest premium rate Complete an online health assessment each FY to receive $50 deductible credit Keep contact information up-to-date after retirement to stay informed about your benefits!

50 RESOURCES Engineering HR (979) TAMUS Benefits Administration Social Security Administration 2120 Briargate Dr. Bryan, TX

Voluntary Retirement Options

May 14, 2014 Voluntary Retirement Options Regardless of the mandatory retirement program you participate in (TRS or ORP), you can choose to save additional money for retirement on a tax deferred basis