Michelle Bridges LSERS Retirement Education. Created by MRB 10/9/12 1

Transcription

1 Michelle Bridges LSERS Retirement Education Created by MRB 10/9/12 1

2 Retirement Eligibility/Plans Benefit Calculations Service Credit Unused Leave Option Plans DROP and IBRP Disability and Survivor Social Security Webinars LSERSWeb Online Access 2012 Legislation 2

3 Member before 7/1/ years at age years at age years at any age 20 years at any age (prior to age 60 = reduced benefit) Member on or after 7/1/ years at age years at any age (prior to age 60 = reduced benefit) 3

4 Regular Service Retirement Deferred Retirement Option Plan (DROP) Initial Benefit Retirement Plan (IBRP) Early Retirement 20 years actuarially reduced benefit Note: DROP and IBRP are excluded under provisions of early retirement 4

5 Service Credit x Accrual Rate x FAC = Maximum Benefit FAC: average of your highest consecutive years of earnings 5

6 Days paid in employment year days in annual contract = service credit For example: 180 days paid 180 days in contract = 1.00 full year 90 days paid 180 days in contract =.50 or ½ year Other means of receiving service credit: Repay Refunds Actuarial Transfers Between retirement systems Actuarial Purchases Service rendered as a substitute In State, Out of State, or Private School Employment Military Time 6

7 Unpaid and unused sick and annual leave may be converted to service credit at retirement Calculation: Unused leave days in employment year = service credit For example: 25 days 180 days =.14 of a year 7

8 Retiree Beneficiary Maximum $ Lump sum * Option 1 $ Lump sum * Option 2 $ $ Option 2A $ $ Option 3 $ $ Option 3A $ $ Dollar amounts listed are for example only *if balance at time of death 8

9 Select a retirement benefit yet continue to work for up to 36 months Must enter DROP when first eligible to participate for the full 36 months Retirement contributions stop Monthly benefit deposited into a DROP account to withdraw once employment stops officially retire. Option 2 benefit $932 Monthly Deposit Accumulated Balance Month 1 $932 $932 Month 2 $932 $1,864 Month 3 $932 $2,796 Month 4 $932 $3,728 Month 36 $932 $33,552 NOT BEST OPTION FOR EVERYONE 9

10 Must meet retirement eligibility requirements Receive up to 36 months of Maximum Allowance in advance immediately upon retirement Monthly benefit will be permanently reduced Regular Service Retirement Maximum benefit = $1, $1, x 36 = $55, maximum IBRP Option Plan Mo. Benefit with up front advance of $55, Mo. Benefit without Advance Maximum $1, $ Option 2 $1, $ Option 2A $1, $ Option 3 $1, $ Option 3A $1, $

11 Survivor 5 Years-Minor Child 10 Years-Surviving Spouse Disability 5 Years-member prior to 7/1/ Years- member on or after 7/1/

12 Two types of benefits: GPO (Government Pension Offset) Spouse s or Widow(er) s benefit Formula reduces Social Security benefit by 2/3 rd Social Security benefit could be entirely eliminated. WEP (Windfall Elimination Provision) Earned benefit Modified formula used to reduce Social Security benefit Social Security benefit cannot be completely eliminated. YOUR LSERS RETIREMENT BENEFIT WILL NOT BE REDUCED IF YOU RECEIVE SOCIAL SECURITY BENEFITS. 12

13 1. Learn about your system via computer 2. Quarterly on specific topics 3. Notification sent by or Facebook 13

14 Member View Account information past & present View Personal Information Active members can change name/address All members can change address/phone number Employer Can view all information for active members Can enroll members Can terminate members Coming Soon: CCR (current year salary corrections) Retiree deductions (Salary and Insurance uploads) 14

15 Forfeiture of Benefits: Act 479 Permits a judge to order forfeiture of employee contributions if convicted of a felony in connection with employment. Cash Balance Plan: Act 483 Optional for new membership 7/1/

16 Have questions? Find answers! Visit our Website Contact us via Attend Workshops and Webinars Call Us or Toll Free Counselors available Monday through Friday; 8:00-4:30 Estimates Available for those within 3 years of eligibility Contact your Human Resources division at least 6 months prior to making a decision. Created by MRB 10/9/12 16