PEBA update 11/13/2017. PEBA update. Navigating your benefits

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1 PEBA update SC Municipal Human Resources Association 2017 Annual Meeting November 9, 2017 PEBA update Navigating your benefits website Retirement benefits Retirement awareness Member Access Ending TERI participation Insurance benefits 2018 State Health Plan update MyBenefits PEBA Perks 2 Navigating your benefits A multimedia series on insurance and retirement benefits Flyers and videos 3 1

2 4 Retirement benefits 5 Retirement awareness Retirement planning seminar Retirement eligibility Insurance eligibility for retirees Early- and mid-career seminar Be aware and prepare series Presentations Animated videos 6 2

3 Retirement awareness Emotional preparedness for retirement Most major life-changing events, such as marriage or divorce, involve an ongoing process of emotional adjustment Retirement is no exception Emotional and psychological frontier of retirement has remained virtually unexplored until recently 7 Member Access SCRS and PORS active members Access your retirement account Print a member statement Update your address View your beneficiaries and service credit Submit a Service Purchase request Complete a Service Purchase Cost Estimate Apply for Service Retirement and view the status of your service retirement application Inactive members can also view and print a member statement and update their address 8 Member Access Retired members Print a 1099-R form Update your tax withholding Update your address Print an annuity verification letter View your current payment method Modify an existing direct deposit account or add an additional direct deposit account 9 3

4 10 Ending TERI participation PEBA will mail a TERI end packet 90 days before the expected end date All TERI participation ends June 30, TERI end packet The packet includes the amount of the monthly SCRS benefit before taxes It also gives the estimated TERI account balance The monthly SCRS benefit is subject to change The packet includes necessary forms 12 4

5 TERI end packet TERI Payout Election Form (Form 7500): Designate how to receive the TERI balance Withholding Certificate for Monthly Annuity Benefit Payments (Form 7202): Update tax withholdings for future monthly benefits, if needed Can be updated through Member Access Direct Deposit Authorization (Form 7204): Update direct deposit information for future monthly benefits, if needed Can be updated through Member Access 13 Ending employment At the end of the TERI period, participants must end employment Employers must certify the termination date to PEBA on the TERI Termination Certification in EES When PEBA receives the employer certification, participants can begin receiving monthly benefit payments and their TERI account balance 14 TERI account balance State law requires participants to receive their TERI account balances. Options include: Single-sum payment; Direct rollover; or Partial rollover Tax implications exist for these options For financial advice or information on early withdrawal penalties, participants should check with a tax advisor, accountant, the IRS or the South Carolina Department of Revenue 15 5

6 TERI rollovers to the Deferred Compensation Program Employees must have a 401(k) plan account before rolling funds into the Program Enrollment form is available at Fax the completed form to For assistance with completing the form, call The amount rolled in does not count towards the annual maximum contribution limit Funds can be rolled into pretax option only 16 Payments for unused annual leave Unused annual leave payments are not included in calculating a benefit during TERI At the end of TERI, employers certify unused annual leave payments at termination to PEBA Can include up 45 days of unused annual leave The monthly benefit is then recalculated 17 Returning to covered employment after TERI Employment is not guaranteed Retirees are subject to the rules governing return-towork retired employees May be subject to a $10,000 annual earnings limitation TERI participation for 30 days will meet the 30-day break in service requirement Return-to-work retirees continue to contribute a taxdeferred percentage of gross pay 9 percent as of July 1,

7 Insurance benefits 19 State Health Plan PEBA manages the State Health Plan (SHP) Self-funded insurance plan Members premiums are held in a trust fund and these funds are used to pay claims BlueCross BlueShield of South Carolina processes claims Health management is key to maintaining a low cost for the plan and premiums 20 What s new for 2018? Employees have 30 days, instead of 31 days, to make initial enrollment decisions or changes during a special eligibility situation MetLife is the new life insurance vendor Dependent Life-Spouse premiums are based on the spouse s age and no longer based on the employee s age New life insurance premiums for 2018 The eyeglass frame benefit will change from every 24 months to every 12 months 21 7