Classified Employees Considering Retirement

Transcription

1 Important Note: PSD must comply with any changes in state law governing retirement rules. Information in this packet is subject to change pending any outcomes of 2016 PERA legislative proposals. The most up to date and accurate information on PERA s retirement rules can be found on their website at TO: FROM: Classified Employees Considering Retirement Benefits Services DATE: January 22, 2016 SUBJECT: Classified Retirement Packet Attached is the Poudre School District Classified Retirement Packet. This packet includes pertinent information relative to retiring from Poudre School District. It also includes information on working after retirement (including transitional retirement) as allowed by State laws governing the Public Employees Retirement Association (PERA). The required intent to retire letter included in this packet must be completed and returned to Benefits Services by Tuesday, March 15, 2016 for Poudre School District to begin processing your retirement. Your eligibility and payment of retirement benefits is determined by PERA (Public Employees Retirement Association) not Poudre School District. You must also contact PERA to complete their retirement process. If you have any questions, please contact Benefits Services. Christina Erickson christie@psdschools.org (970) Marissa Campos mcampos@psdschools.org (970) Melissa Johnson melj@psdschools.org (970)

2 Benefits Services 2407 LaPorte Avenue Fort Collins, CO Classified Retirement Checklist This checklist is provided to inform you of the items you need to take care of prior to retiring. We recommend you make copies of any forms you want for your records prior to returning them. The following items must be taken care of through PERA to begin the retirement process. This list may not be inclusive of all PERA requirements. Verify retirement eligibility and retirement benefit. This may require speaking with a PERA Benefits Counselor. You may also visit PERA s website at for their benefit calculator option. Verify necessity of attending a PERA meeting prior to retirement. Meeting times are available on PERA s website. Obtain a PERA retirement packet. Follow the PERA checklist in the packet to make sure all items through PERA are taken care of. Purchase service credit, if applicable. Purchasing Service Credit Brochures are available from PERA or on their website. You MUST have the service credit purchased prior to your PERA retirement date and before Poudre School District can complete the Six-Month Salary Certification to send to PERA for your retirement. For additional information or to answer any questions, contact PERA at or visit the PERA website at ******************************************************************************************************* The following must be taken care of through Poudre School District. Complete the Intent to Retire Letter included in the PSD retirement packet. Your supervisor must sign the letter. Forward the completed letter to Benefits Services. Your retirement cannot be processed until all documents are returned to the applicable entities. If you have any questions please contact: Christina Erickson christie@psdschools.org (970) Marissa Campos mcampos@psdschools.org (970) Melissa Johnson melj@psdschools.org (970) /22/2016

3 Date: Poudre School District Attn: Melissa Johnson, Benefits Services 2407 Laporte Avenue Fort Collins, CO RE: Classified Employee Intent to Retire Dear Melissa: I,, (name) intend to retire from Poudre School District with my last work day as at. (work location) (employee ID number) (date) My PERA retirement date is day of the month following your last day on the job.. Note: This is generally the first I (please mark one) am am not requesting the transitional retirement option. I understand if I am requesting the transitional retirement option it is subject to approval by the Executive Director of Human Resources. In the event of an approved transitional retirement, I understand I will be required to sign a Working after Retirement Employment Agreement and will be contacted by Benefits Services to complete the agreement. Sincerely, Prior to submitting this letter to Benefits Services, your principal (for school sites) or director (for central offices) must sign. Principal/Director Signature Date March 24, 2015

4 THIS PAGE LEFT BLANK INTENTIONALLY

5 CLASSIFIED EMPLOYEE RETIREMENT ADMINISTRATIVE REGULATIONS POUDRE SCHOOL DISTRICT DEFINITION Per the Poudre School District Employee Agreement Section , a retired employee is defined as: a former employee who regularly receives benefits from PERA (Public Employees Retirement Association) or has completed 20 years of service with Poudre School District upon resignation or retirement. This does not include substitute or temporary assignments or an employee who is considered retired as a result of disability. NOTIFICATION The Intent to Retire Letter must be completed and returned by the deadline indicated below. The Intent to Retire Letter MUST have the principal/supervisor s signature. Classified March 15 prior to retirement Or 60 days prior to PERA effective date of retirement, but no later than March 15 of last year of Poudre School District employment. Employees requesting a transitional period are subject to approval by the Executive Director of Human Resources. Questions can be addressed to: Christina Erickson Benefits Technician christie@psdschools.org (970) Marissa Campos Benefits Technician mcampos@psdschools.org (970) Melissa Johnson Benefits Manager melj@psdschools.org (970) /22/2016 1

6 An employee has two retirement options: RETIREMENT Regular Retirement Retire and not return to work for Poudre School District. Work After Retirement Retire and return to work for Poudre School District subject to State laws governing the Public Employees Retirement Association (PERA). o Transitional retirement is an option available to employees and normally begins with the first contracted work day following the PERA retirement date. Please read the Transitional Retirement information under the Working After Retirement section in this packet for more details. Regular Retirement Choosing the regular retirement option, the employee concludes employment with Poudre School District. Working After Retirement (Transitional retirement information is included in this section) Working after retirement (including transitional retirement) is an option available for employees who apply by submitting an Intent to Retire Letter and have been approved by the Executive Director of Human Resources. An employee working after retirement has terminated employment with Poudre School District subject to rehire. No promise to rehire the employee is expressed or implied. Retirement practices will be administered in accordance with the rules and regulations of PERA. Working after retirement is subject to State laws governing PERA that allow an employee to retire with PERA and receive PERA retirement benefits while working for the District after retirement. Employees may work up to 110 days per calendar year after PERA retirement. The PERA section in this packet contains information on where to find details about PERA regulations and limitations. OTHER IMPORTANT THINGS TO KNOW: Subject to approval, an employee will be required to sign a Working After Retirement Employment Agreement with the District. This agreement will specify the terms of employment for the specified period and is automatically nonrenewed upon expiration. Substitute assignments in Poudre School District will not require a Working After Retirement Employment Agreement. 1/22/2016 2

7 The salaries of employees who are re-employed by the District will be established by the then current salary setting procedures that apply except as otherwise noted in the Transitional Retirement section of this document. An employee may continue to work after retirement following a transitional period. According to federal guidelines, the employee will have the current (1.45%) Medicare portion of FICA deducted from salary for any time worked after retirement. Under PERA legislation, all employees working after retirement are required to have the 8% working retiree contribution for PERA deducted from their pay. Time worked does not count toward service credit with PERA. Time worked may count toward service credit with Poudre School District if position is not a substitute, varied hour, or temporary position. Not eligible for classified career incentive plans. Not eligible for paid leave time except as otherwise noted in the Transitional Retirement section of this document. Not eligible for paid holidays. May be eligible for health, dental, life, or vision insurance benefits if eligibility requirements are met. Not eligible for short-term or long-term disability benefits offered by Poudre School District. Not eligible for leave of absences, but still subject to the Family and Medical Leave Act (FMLA). May be eligible for Poudre School District retiree life insurance. Transitional Retirement In addition to the information noted above for Working After Retirement, the following information is applicable to Transitional Retirement: An employee must apply for transitional retirement by completing the Intent to Retire Letter and submitting it to Benefits Services. Subject to approval of a transitional period, an employee will be required to sign a Working After Retirement Employment Agreement with the District. This agreement will specify the terms of employment for the transitional period and is automatically non-renewed upon expiration. An employee is eligible for one transitional period and the transitional period is to be taken only in the final year of employment with the District. Exceptions may be made as approved by the Superintendent of Schools. In no instance will a transitional period be longer than a continuous twelve-month period of time. The following exception may apply; however, if the employee begins the transitional year at the end of an academic year, the transitional year may include the immediate summer, and the following school year (August-July). A transitional year may be less than a full academic year (for example: employee begins PERA retirement in November, transitional period is from November through the following July). 1/22/2016 3

8 The transitional employee will establish a beginning and ending date of the transitional period approved by the Executive Director of Human Resources. The supervisor and Executive Director of Human Resources must approve any variation in schedule during the transitional period. Retains salary schedule placement during the transitional period with exception to the reduction of salary noted in the previous section. Not eligible for paid leave time except jury duty and bereavement leave. The transitional period will count towards a year of service credit with Poudre School District, but not PERA. PERA You must contact PERA at or via their website at to request retirement information and the necessary forms to complete for retirement. PERA will send a packet of information on the PERA retirement process and the current PERACare brochures regarding health insurance plans available through PERA. In addition, you can find information regarding the calculation of your Highest Average Salary (HAS) on the PERA website. Your HAS is used to determine your monthly PERA retirement benefit. PERA requires that Poudre School District complete a Final Six Month Salary Certification form. Your designated Payroll Technician will complete the form. However, the form will not be completed until your Payroll Technician is certain of your final salary amount and any purchase of service credit is complete. Employees with changing or periodic additional work assignments will not have salary reported to PERA until the final salary amount is confirmed. Your PERA Retirement Date is the first day of the month after your last physical day on the job. If you are planning to work after retirement in a transitional period, this date is the first day of the month after your last physical day on the job, prior to the transitional period. IMPORTANT PERA LIMITATIONS Please contact PERA or visit the PERA website for detailed information on working after retirement. State law permits a PERA retiree to work for a PERA-affiliated employer up to 110 days or 720 hours per calendar year after retirement. This would be limited to a maximum of 220 consecutive working days over 2 calendar years (end of one calendar year and the beginning of the next calendar year). A retired employee may not physically be on the job for more than the 110/220 days. A penalty of 5 percent per day over the 110-day limit will be imposed by PERA along with loss of the next annual PERA cost of living increase. (If you are ending your transitional 1/22/2016 4

9 retirement at the end of an academic school year, you have already exhausted most of the 110-day maximum for that calendar year.) Below is a brief summary of the PERA publication Working During the Effective Month of Retirement. The publication can be found on the PERA website at Colorado State Law states: A PERA retiree must not work in any capacity for a PERA-affiliated employer during the month of his or her effective date of PERA retirement to receive a full month s benefit. Example: If your PERA retirement is effective June 1, you may not work for a PERA-affiliated employer during the month of June. There must be a termination of all PERA-covered employment for a member to be eligible to retire. Any return to work may cause PERA to question the employer as to whether the employment relationship was truly terminated. A PERA retiree may not return to work on the first business day of the month in which the PERA retirement is effective. The retiree may not be compensated for that day, nor volunteer their time. If a retiree works the first business day of the month, the retirement will be delayed to the following month. If the retiree returns to work for a PERA-affiliated employer (after that first business day of being unemployed), PERA must reduce the retiree s benefit for the following month by 5 percent for each day or partial day that the retiree works during the month the PERA retirement is effective. Example: If you retire effective July 1 and you work four days in July, your benefit must be reduced by 20 percent (5% x 4) for August. It is the responsibility of the retiree to report to PERA any work performed for a PERA-covered employer. PSD Effective Date Your Poudre School District Retirement Date is one of the following: 1) the last day of the contract year (July 31) for employees less than 12 months (260 days) if the academic year is completed (this could be following a transitional period) or 2) the last paid day for employees less than 12 months (260 days) if the academic year is not completed (this could be following a transitional period) or 3) the last paid day for 12 month (260 day) employees (this could be following a transitional period) 1/22/2016 5

10 Poudre School District Benefits/COBRA Benefits discussed in this section include health, life, dental, and vision. When an hourly or prorated employee completes an academic year assignment, the employee receives benefits through July 31 of that year. When an academic year employee retires during the academic year or when a twelve-month (260-day) employee retires, benefits continue through the end of the month in which they retire. Employees working after retirement may be eligible for benefits through Poudre School District if eligibility requirements are met. This includes during a transitional year. Benefits Services will notify UCHealth Plan Administrators (administrator of Poudre School District s COBRA benefits) when benefits should terminate. UCHealth Plan Administrators will send documentation regarding the right to continue medical, dental, and vision benefits under COBRA. Under COBRA regulations, a former employee has the option to continue health, dental, and vision benefits for up to 18 months. Poudre School District Life Insurance and Optional Life Insurance Life insurance coverage is reduced to 25% of the employer-paid coverage amount in force at the time of retirement to a maximum of $10,000 for eligible retirees. Eligible retirees have the option to elect to continue the coverage by completing a Retiree Life Insurance Form. If the form is not completed and returned, the retiree will not have the life insurance coverage. If coverage is elected, the retiree is required to pay the applicable premium for the remainder of the current calendar year and will be billed annually in November thereafter. The accidental death and dismemberment portion of the life insurance is not available upon retirement. If you wish to update beneficiary information, you will need to complete a Standard Insurance Company Beneficiary Designation Form. The form is available by contacting Benefits Services at (970) If you are covered by the Poudre School District Group Life Insurance Plan or have the optional life insurance coverage at the time of retirement, you may be eligible to convert or port the policy. You may request the necessary application from Benefits Services. If you choose to convert the policy, the application and the first premium payment must be submitted within 60 days of your employment termination date to Standard Insurance Company. If you choose to port the policy, the application must be submitted to Standard Insurance Company within 60 days of your employment termination date. If you exceed these deadlines, you will NOT be eligible for life insurance conversion or porting. 1/22/2016 6

11 Disability Upon retirement, an employee is no longer eligible for the district s short-term and longterm disability benefits. This includes during a transitional period. Leave Time An employee is eligible for only bereavement and jury duty through Poudre School District effective with the PERA retirement date. Upon retirement, all leave balances will be adjusted to zero. An employee may be eligible for paid leave time prior to the PERA retirement date as stated below. Earned/unused floating holidays will not be paid. Earned/unused sick leave time will not be paid. Earned/unused personal leave time will not be paid. Earned/unused vacation leave will be paid based on the balance noted in the current balance column of the employee s leave and earnings statement. Leaves of Absence An employee is not eligible for any type of leaves of absence except as allowed under the Family and Medical Leave Act (FMLA) through Poudre School District effective with the PERA retirement date. Unused Sick Leave Benefit Classified employees have no unused sick leave benefit. Deferred Compensation If opting regular retirement, all deferred contributions will stop upon receiving a final paycheck. An employee working after retirement may elect to continue to contribute to their 401(k), 403(b), or 457 plans. The deduction must be setup as a percentage. No flat dollar amounts will be permitted. 1/22/2016 7

12 Final Paycheck An employee who has used more leave time than was earned at the time of retirement, will be docked one hour of salary for each hour used in excess of earned hours on the final paycheck. If working a transitional period, the dock will occur on the last paycheck prior to the transitional period. An employee opting regular retirement and has not used earned leave time, will be paid on the final paycheck as stated in the Leave Time section above. An employee opting to work a transitional period and has not used earned leave time, will be paid on the last paycheck prior to the transitional period as stated in the Leave Time section above. 1/22/2016 8