MYRETIREWELL FEDERAL RETIREMENT SEMINARS

Transcription

1 MYRETIREWELL FEDERAL RETIREMENT SEMINARS

2 FEDERAL RETIREMENT SEMINARS Americans are unprepared for retirement due to inadequate retirement planning. Unfortunately, the lack of preparedness is not evident until after retirement. This is the reason why so many older Americans are required to reenter the workforce after retirement, typically at low wage jobs. Retirement should be a time of relaxation and enjoyment, and not a period of stress and worry about meeting financial obligations. The purpose of the MyRetirewell Retirement Seminars is to reduce post-retirement employment, out of necessity, by teaching retirement preparedness. Our Seminars have proven to be beneficial to employees in defining and reaching their retirement savings goals, whether new employees, mid-career or close to retirement. In the past year alone, we have conducted over seventy (70) Retirement Seminars for the Defense Logistics Agency of the U.S. Department of Defense ( DLA ) and for the Defense Commissary Agency ("DeCA") covering the Federal Employees Retirement System ( FERS ), the Civil Service Retirement System ( CSRS ) and the Thrift Savings Plan ( TSP ), as well as ancillary benefits. MyRetirewell has also provided a week long course to the U.S. Army covering the foregoing federal benefits. We have been engaged by several employers to provide Retirement Seminars on a multi-year basis. Our general curriculum is as follows, but may be restructured to meet your course needs. Course Description Participants will receive all the information they need to understand, use, and integrate to make educated decisions regarding the Civil Service Retirement System (CSRS), CSRS Offset, the Federal Employees Retirement System (FERS), FERS MRA+10, Deferred Retirement, Disability Retirement, Discontinued Service benefits, Early Retirement and the other retirement options, as well as Phased Retirement, Social Security and Survivor Benefits. The course will provide benefit calculation instructions and information to assist participants in understanding the amount of income replacement in retirement that most individuals need in order to live comfortably, and also provide helpful information on TSP operation, the composition of TSP investment funds and the importance of prudent investing. The instructors will provide advice on the management of personal finances and guidance on the steps that participants need to take in the years preceding retirement. Importantly, the course will cover when not to retire and the personal circumstances that should be taken into consideration when making this decision. The seminar will address the health and welfare benefits offered under the Federal Employee Benefit Programs (FEBP), including FSAs, FEGLI, FEHB, FLTCIP and Medicare to assist participants in maximizing use of the programs currently and after retirement. Each class member will understand how to reach their retirement objectives by utilizing the information about the Federal Employees Benefit Programs addressed in our seminar. Our specialized expertise addresses complex questions and individual concerns to augment the education process. The course will also cover practical estate planning information, including Wills, transfers of property by title, how to hire an estate planning lawyer or other professional. FERS/CSRS Webinar Virtual Seminar MyRetirewell provides a FERS/CSRS Virtual Webinar Seminar, which is a live meeting that takes place over the web. Participants can view the PowerPoint and documents via their computers, while shared audio allows for presentation and discussion. Our PowerPoint is well-organized and easy to follow. We also provide students with their very own PowerPoint Booklet, in advance, to allow them to follow along and take their own personal notes. At times, you need to provide retirement training to people that are dispersed geographically. They may be in various buildings or working from home. You could send a trainer out to each area or you could have participants come to a central location. There would be considerable cost, travel and time involved. Our Webinar online training is a great alternative. There would be no need for travel and each participant could save quite a bit of time and take the training in the office/home. Webinars are taught in the same manner as our live FERS/CSRS Seminars. Our courses are lively and enjoyable, with a lot of great discussion, sharing and life changing information. 01

3 WEBEX Technology MyRetirewell uses Cisco WebEx as the host for Webinar Events. The platform allows our professionals to conduct meetings over the Web, without interruption, providing video and audio as well as the presentation of the course PowerPoint. WebEx provides high-quality video (360p) which supports up to 500 participants at one time. The technology we use also provides us with the following features: Ability to utilize all Advanced Registration tools and Reporting (attendance reports and poll/survey reports); Ability for Private Q&A and chat w/ Controls; Ability to conduct live polls and surveys during meetings; Ability to share PowerPoint, Word, Excel, Web pages, desktop, audio, and video; Ability to see if the participants are paying attention to Webinar; Automated management for all attendees (reminder s, registration s/rules, post event surveys); Record & Playback; unlimited recordings, no additional cost. 1 Gig of storage for recordings (typically hours) ; Integrated Audio Service (gives host/presenter total control of the meeting both data and audio - ability to mute, see who's talking, & record). We receive unlimited 24x7 technical support. The audio: Includes toll (long distance), VoIP conference and Audio Broadcast. WebEx also co-brands the host site that participants will visit in order to join the Webinar. FERS/CSRS Live Classroom Seminars Our professionals regularly teach hands-on live FERS/CSRS Seminars in the classroom setting, at your location. A face-to-face meeting in a classroom imposes accountability, inspires effort and promotes responsibility in subtle ways. MyRetirewell instructors create a welcoming classroom environment where every student feels comfortable participating. We understand that the rules are complex, but our decades of experience allows us to explain the information in an easily understood and practical manner. Our professionals present a PowerPoint presentation (of 700 slides for a 2-day course) is well-organized and easy to follow. We also provide students with their very own PowerPoint Booklet to allow them to follow along and take their own personal notes. We also utilize other available teaching tools, such as black and white boards. Our courses are lively and enjoyable, with a lot of great discussion, sharing and life changing information. FERS/CSRS Self-Study Course (On-Line) We offer a prerecorded cloud-based narrated PowerPoint course which allows employees to take the course at their leisure. The course is taught in the same manner as the live in-classroom 2-day session. The subscription allows employees 24-hour access to the course for a one-month (or longer) period. People learn in many different ways. Some like reading, others listening, and others watching. An online self-study course can offer many different ways of learning to engage the student and accommodate their schedule. This unlimited access allows employees to learn the information at their own pace by logging on from any location, with the limitless capability to replay, stop and start the course. The subscription allows employees to enjoy the course with a spouse or loved ones and without interrupting the workday. Employees receive study materials and can us with their questions. We provide the login credentials immediately upon purchase of the course. Group discounts are available. Digital Chalk Technology MyRetirewell uses Digital Chalk online training software that give students the ability to login to MyRetirewell.digitalchalk.com, and take a 10 hour online FERS or CSRS course. Each employee is given unique login credentials and has the ability to take their course over as long a period of time as the employee needs. The employee is able to view the same PowerPoint that is presented in the live classroom setting. However, the PowePoint is narrated. This means that the audio teaches the lesson in the same manner as the live classroom setting. When logging in each employee has a dashboard with their course appearing. The individuals are able to pick-up where they left off in the seminar. 02

4 Individual FERS/CSRS Counseling Preparing for retirement can sometimes be problematic since it means that one is aging and moving into another life cycle change. We provide individual counseling to assist employees and their families in making the transition a more positive and less stressful experience. The impact of retirement on older citizens is frequently neglected in the counseling arena. As pre-retirement counselors, we understand what a retiree will face in retirement. Our sessions are designed to provide the individual with a comprehensive overview of the current retirement plan provisions and various concerns regarding the retirement process. We are confident these sessions will assist the employee in gaining knowledge of the available pensioner benefits, helping to ease the stress of making life-long decisions. The counseling sessions may be performed in small groups or by telephone if preferred. Significant others are welcome to attend. In the session, we review each employee s personalized estimated pension benefit which will reflect their individual estimated years of pension creditable service. Benefit calculations will be reviewed and related questions also discussed, in addition to estate planning. We are available to hold individual counseling sessions over the phone and can also provide the counseling onsite. Typically, we schedule the onsite sessions over several days and have individual meetings each hour. Spouses are encouraged to attend. Management Benefits Training Our professionals provide benefits training to employees responsible for benefits management and administration at your agency. We explain the legal requirements and provisions of FERS, CSRS and the TSP, including practical aspects of benefits administration. We teach the professionals about the retirement process, OPM and TSP resources and how to address and resolve participant questions and disputes. Our team provides in depth coverage of Calculating Benefits, Earning Credits, Credit for Military Service, the Windfall Elimination Provision, the Government Pension Offset, the Earnings Test, Social Security's Role in Federal Retirement Benefits and Decisions, Family Benefits, Domestic Relations Orders, Beneficiary Designations, Death Benefits, Survivor Benefits, Disability Benefits, Social Security and Federal Retirement Disability Benefits, Supplemental New Employee Benefits Orientation The New Employee Benefits Orientation is designed to acquaint employees with the benefit package available to them as Federal employees. Participants will receive all the information they need to understand, use, and integrate to make educated decisions regarding the Civil Service Retirement System (CSRS), CSRS Offset, the Federal Employees Retirement System (FERS), FERS MRA+10, Deferred Retirement, Disability Retirement, Discontinued Service benefits, Early Retirement and the other retirement options, as well as Phased Retirement, Social Security and Survivor Benefits. The course will provide benefit calculation instructions and information to assist participants in understanding the amount of income replacement in retirement that most individuals need in order to live comfortably, and also provide helpful information on TSP operation, the composition of TSP investment funds and the importance of prudent Social Security Income After Benefits Begin, Taxation of Social Security and Retirement Benefits, Administrative Matters and Resources, Federal Employees Health Benefits, Long-Term Care Insurance, Medicare and FEHB, Hospital Insurance (Part A), Medical Services (Part B), Medical Advantage (Part C), Managed Care Plans, Private Fee-for-Service Plans, Other Alternative Plans, Prescription Drug Program (Part D), Medigap Policies, Rights, Protections, Appeals, References and Resources. The seminar addresses the health and welfare benefits offered under the Federal Employee Benefit Programs (FEBP), including FSAs, FEGLI, FEHB, FLTCIP. We also cover the TSP operation and administration, including information regarding the investment funds. investing. The instructors will provide advice on the management of personal finances and guidance on the steps that participants need to take in the years preceding retirement. The seminar will address the health and welfare benefits offered under the Federal Employee Benefit Programs (FEBP), including FSAs, FEGLI, FEHB, FLTCIP and Medicare to assist participants in maximizing use of the programs currently and after retirement. Each class member will understand how to reach their retirement objectives by utilizing the information about the Federal Employees Benefit Programs addressed in our seminar. Our specialized expertise addresses complex questions and individual concerns to augment the education process. 03

5 FERS CURRICULUM Our comprehensive FERS Seminar, which is typically taught in a 2-day format, includes: Detailed Explanation of the FERS Benefit Formula and Components: 1% of Final 3-Year Average High Salary x Years of Credited Service We explain the FERS benefit calculation formula to enable employees to estimate the amount of their own retirement benefit, while encouraging employees to obtain a formal estimate from OPM. Our professionals also provide multiple benefit calculation scenarios and examples, in order to demonstrate how changes in the components to the formula will increase their benefit. Determination of 3-Year Average High Salary Our professionals explain how 3-year average high salary is determined, the consecutive year requirement, as well as the types of compensation included and excluded from the determination. We assist the employees in calculating their own 3-year average high salary, as well as the inclusion of locality pay and exclusion of awards and other incentive compensation. Recognized Service We educate employees on which service is recognized service for benefit calculation purposes. Employees often incorrectly assume that all service is included for benefit calculation purposes, which may result in unwelcome surprise when benefits commence. Our team provides detailed information on which service counts, and also on the rules for making deposits to increase service. Determination of Years of Credited Service We assist employees in determining their years of credited service after identifying the employee s recognized service, to enable employees to calculate their retirement benefits. Deposit and Redeposits for Credited Service advantages of making permissible deposits for periods of service during which deductions were not taken from pay, in order to increase years of credited service. We also discuss the advantages of making redeposits for previously refunded deposits. MyRetirewell instructors discuss the analysis that employees should individually conduct to determine whether incurring the cost of the deposit, or redeposit, including the interest, is justifiable based on whether retirement benefits will be significantly enhanced by the purchased service. Unused Sick Leave We instruct employees on how periods of unused sick leave can be used to increase credited service, and on how such sick leave is counted in thirty (30) day increments. Contributions ir role in financing their retirement benefits, by having deductions taken from their pay each pay period. In the amount of.08% of their compensation. We also discuss Social Security tax deductions of 6.2% of pay being used finance retirement benefits, in addition to the employer s contribution obligation. Military Service We provide guidance on the use of military service to increase periods of credited service by making permissible deposits for periods of military service. MyRetirewell instructors discuss the analysis that employees should individually conduct to determine whether incurring the cost of the deposit, including the interest, is justifiable based on whether retirement benefits will be significantly enhanced by the purchased service. Further, we provide advice on whether an employee should keep their military service separate. Minimum Retirement Age (MRA) Our professionals give employees the information necessary to determine their minimum retirement age (MRA). Employees must know their MRA in order to successfully plan for retirement. 04

6 Reductions for Pre-Age 62 Retirement Our professionals provide information on how retirement benefits will be affected if an employee retires prior to the age of 62, with less than twenty (20) years of credited service. Employees must have a clear understanding of how retiring prior to meeting certain age and service requirements will impact the amount of their monthly retirement benefit. Employee Death Benefits As a matter of estate planning, employees must be informed of the benefits payable to their surviving spouse and dependents in the event of death prior to retirement. The income replacement provided by the FERS death benefit feature is important to ensuring family financial stability after an employee s death. Our instructors provide the required instruction in this regard. Spousal Benefits The surviving spouse annuity benefits are also critical income replacement needed by an employee s spouse in order to remain financially secure after the employee s death. Our professionals educate employees on eligibility to have such benefits payable to their surviving spouse, as well as the conditions upon which the surviving spouse annuity will prematurely terminate. This typically occurs upon a surviving spouse s remarriage prior to age 55. We provide instruction on this very important information, as well as suggestions on how to educate spouses regarding the availability of the benefits. Domestic Relations Orders (Divorce) Our instructors provide guidance on how domestic relations orders (DROs) awarding benefits to a former spouse affect the employee s benefit entitlement and survivor benefits that may be payable to a subsequent spouse, if any. We provide strategies for ensuring that an employee s current spouse receives some level of income replacement after the employee s death. Survivor Benefits We provide guidance on survivor benefits offered to the surviving spouses and dependents in conjunction with the survivor annuity, such as health insurance, vision and dental and long-term care coverage. Instruction is also provided on termination events. Basic Retirement Our professionals provide instruction on the immediate and postponed retirement options, at age 62, age 60 and based on an employee s MRA and the completion of the required number of years of credited service. We also provide guidance on how benefits are reduced if an employee retires with at least ten (10) but less than thirty (30) years of service. Deferred Retirement MyRetirewell professionals counsel employees on the consequences of deferred retirement, including ineligibility for health and other benefits when an employee terminates employment prior to eligibility for retirement benefits. Special Retirement Supplement We explain the supplemental benefit that is payable to employees when they retire prior to Social Security eligibility at age 62. Our professionals provide instruction on eligibility for the supplement, to ensure that employees don t improperly assume entitlement to the supplement. Disability Retirement (and SSDI) Our professionals educate employees on the monthly benefit payable under disability retirement, including the criteria that must be satisfied in order to qualify for such benefits. We discuss the offset in the disability pension by Social Security disability benefits entitlement, the earnings limit, the effect of reemployment on disability retirement and unfavorable aspects of disability retirement. Discontinued Service Retirement Our professionals provide information regarding retirement benefits that are payable upon involuntary separation other than for cause. We define those important terms for the employees, discuss eligibility for discontinued service retirement, and advise employees on the consequences of declining reasonable offers of other positions. Early Retirement We provide information on the early retirement benefits available in involuntary separation cases and on account of voluntary separations during major reductions in force, as well as age and service requirements that must be met in order to qualify for such benefits. Phased Retirement MyRetirewell educates employees about the new phased retirement option, allowing an individual to be partially retired. We explain how phased retirement benefits are calculated based on the working percentage and also discuss the other conditions that apply. Annual Leave Payout We provide guidance on the best time to retire in order to receive a payout of annual leave, and to prevent forfeiture. Our professionals educate employees about the importance of receiving this payoff due to the delay in a retiree s receipt of their first pension payment. Social Security MyRetirewell professionals educate employees about the Social Security component of the FERS benefit, as well as the other spousal and dependent benefits provided by Social Security. We also provide guidance on the Social Security application process. Benefit Application Process We guide employees through the retirement application process, including the days of the month in which to retire, the delay in the receipt of the first pension payment, reduced pension benefits during the adjudication period, as well as the process for challenging benefit denials. OPM Resources MyRetirewell professionals educate employees about the available OPM resources that can be used to assist in retirement planning, including the available pamphlets, online retirement tools and important contact information. 05

7 Detailed Explanation of the TSP for FERS Participants: Employee Contribution and Elections importance of their contribution election and the need to make the maximum contribution possible, by adjusting their lifestyle, and on the process for making and changing elections based upon current circumstance. We warn against keeping the same contribution election in place indefinitely. Tax Treatment of Contributions We advise employees on the tax treatment of contributions, being either pre-tax and/or after-tax Roth contributions, and on the analysis to be used to determine the type of contributions employees should make based upon individual circumstances. Limitations on Contributions annual limitations on employee contributions, while making it clear that it is the employee s responsibility to ensure that the applicable limitations are not exceeded. We also provide instruction on catch-up contributions and the importance of maximizing retirement savings close to retirement. Rollover Contributions We advise employees on the functionality of making rollover contributions in order to consolidate retirement savings, which allows employees to more efficiently monitor success in reaching retirement savings goals. As the administrative fees charged by the TSP are significantly lower than the national average, we educate employees regarding the prudence of rolling over accounts from arrangements with higher net expense ratios. Agency 1% Contributions MyRetirewell explains the allocation of the Agency 1% Contributions, and how the benefit is calculated. Further, we discuss the conditions which must be met in order to retain the amounts after a separation from service. Vesting Our professionals provide instruction on the vesting requirements which must be met in order for benefits not to be subject to forfeiture. We inform employees that pre-tax and after-tax Roth contributions are non-forfeitable, as is the case with matching contributions. Further, we provide instruction on the vesting requirements for the Agency 1% Contributions. Matching Contributions We explain the matching contribution formula, being 100% on the first three percent (3%) of an employee s contributions plus fifty cents ($.50) on the dollar for the next two percent (2%) of the employee s contributions. Our professionals emphasize the importance of making employee contributions in an amount sufficient to maximize the receipt of full matching contributions. Age-Based In-Service Withdrawals Our professionals provide guidance regarding in-service withdrawals at age 59 ½, and inform employees regarding the consequences of taking a partial in-service withdrawal with respect to post-termination distribution options. Hardship Withdrawals We provide information regarding the availability of and criteria for hardship withdrawals, as well as the six (6) month suspension for such withdrawals. Further, our professionals educate employees regarding the ten percent (10%) early withdrawal penalty for pre-59 ½ withdrawals. Loan Feature operation of the loan feature, general purpose and residential loans, the loan repayment period, loan defaults and the availability of a cure period. Beneficiary Elections MyRetirewell emphasizes the importance of having valid beneficiary designations on file with TSP, with current contact information for beneficiaries, and the need to periodically review designations when life changes occur. Domestic Relations Orders (Divorce) Our instructors provide guidance on how domestic relations orders (DROs) awarding benefits to a former spouse affect the employee s benefit entitlement and survivor benefits that may be payable to a current spouse. We provide strategies for ensuring that an employee s current spouse receives some level of income replacement after the employee s death. Active Military Service and Reemployment We provide instruction on restoring employer contributions that were missed during an individual s period of absence to serve in the military, the process for making make-up contributions, the extension of loan amortization periods and reversal of taxable service related distributions. Post-Retirement Distribution Options Our professionals provide guidance on how the use of post-retirement distribution options will support individual income replacement strategies in retirement. For example, the use of the flexible installment distribution feature instead of the purchase of an annuity. We also provide advice on post-retirement investing when the installment feature is selected. Required Distribution Date We emphasize the importance of taking distributions by the later of April 1 of the year following the later of the year in which an individual attains age 70 ½ or retires. Our professionals stress the importance of the required distribution date, account forfeitures (reclamation) and excise taxes that could apply for noncompliance. 06

8 Required Minimum Distributions MyRetirewell provides advice on the calculation of the required minimum distribution that individuals must receive in order to avoid noncompliance with the required distribution date requirements. Lifestyle Investment Funds Our professionals explain the advantages and disadvantages of participation in the lifestyle funds for employees who lack the time, knowledge and interest in developing their own investment strategy. We explain the composition of each fund, the best practices for evaluating progress towards reaching retirement savings goals and when to make investment changes. MyRetirewell provides guidance to employees in developing their individual retirement strategy. Individual Investment Funds Our professionals explain the advantages and disadvantages of participation in the individual funds for employees who have developed their own investment strategy. We explain the composition and volatility of each fund, the best practices for evaluating progress towards reaching retirement savings goals, benchmarking, investment risks and when to make investment changes. MyRetirewell provides guidance to employees in developing their individual retirement strategy. OPM Resources MyRetirewell professionals educate employees about the available OPM resources that can be used to assist in retirement planning, including the available pamphlets, the online Roth versus pre-tax contribution calculator, other online retirement tools and important contact information. MyRetirewell Retirement Preparedness: Steps employees can take to maximize their retirement benefits under the employer-sponsored plans in which they participate. Savings plan contribution levels needed to maximize savings, prudent investment choices based upon retirement horizons, rollover options, the advantages and disadvantages of in-service withdrawals and loans, and post-termination distribution options. Calculation of the income replacement needed to maintain pre-retirement lifestyle after retirement. The importance of high credit ratings, lowering debt ratios, individual financial net worth, and family focus on retirement. Ancillary Benefits: Health Insurance Medicare Federal Employee Group Life Insurance (FEGLI) Flex Program Long-Term Care Insurance Strategies for increasing retirement savings by the implementation of a budgeting lifestyle focused on lowering reoccurring expenses, and targeted savings for unforeseeable events and special occasions. Social Security, other public benefits and post-retirement health insurance, life insurance and other ancillary benefits. Individual meetings with employees to answer personal retirement planning questions. Fraud prevention and the avoidance of marketing schemes. Estate planning and the role of spousal benefits. Deliverables: PowerPoint Presentation Employee Study Manual PowerPoint Slides Retirement Savings Worksheet Budgeting Worksheets Other Agreed Supplemental Information 07

9 CSRS CURRICULUM Our comprehensive CSRS Seminar, which is typically taught in a 2-day format, includes: Detailed explanation of the CSRS/CSRS Offset Benefit Formula and Components: CSRS Benefit Calculation We explain the CSRS benefit calculation formula to enable employees to estimate the amount of their own retirement benefit, while encouraging employees to obtain a formal estimate of their benefit from OPM: 1.5% of Final 3-Year Average High Salary for the 1st 5 Years of Credited Service 1.75% of Final 3-Year Average High Salary for next 5-10 Years of Credited Service 2.0% of Final 3-Year Average High Salary over 10 Years of Credited Service Our professionals also provide multiple benefit calculation scenarios and examples, in order to demonstrate how changes in the components to the formula will increase their benefit. CSRS Offset MyRetirewell explains the calculation of the CSRS Offset for employees who pay into the Social Security system. We educate employees about the Social Security component of the CSRS Offset benefit, as well as the other spousal and dependent benefits provided by Social Security. Our professionals provide guidance on the Social Security application process. Determination of 3-Year Average High Salary Our professionals explain how 3-year average high compensation is determined, the consecutive year requirement, as well as the types of compensation included and excluded from the determination. We assist the employees in calculating their own 3-year average high compensation, as well as the inclusion of their locality pay and exclusion of awards and other incentive compensation. Recognized Service We educate employees on which service is recognized service for benefit calculation purposes. Employees often incorrectly assume that all service is included for benefit calculation purposes, which may result in unwelcome surprise when benefits commence. Our team provides detailed information on which service counts, and also on the rules for making deposits to increase service. Determination of Years of Credited Service We assist employees in determining their years of credited service after identifying the employee s recognized service, to enable employees to calculate their retirement benefits. Deposit and Redeposits for Credited Service advantages of making permissible deposits, for periods of service during which deductions were not taken from pay, in order to increase years of credited service. We also discuss the advantages of making redeposits for previously refunded deposits. MyRetirewell instructors discuss the analysis that employees should individually conduct to determine whether incurring the cost of the deposit, or redeposit, including the interest, is justifiable based on whether retirement benefits will be significantly enhanced by the purchased service. Unused Sick Leave We instruct employees on how periods of unused sick leave can be used to increase credited service, and on how such sick leave is counted in thirty (30) day increments. Contributions ir role in financing their retirement benefits, by having deductions taken from their pay each pay period in the amount of 7% of their compensation. For CSRS Offset employees, we also discuss Social Security tax deductions of 6.2% of their pay being used finance their benefits, the.08% compensation deduction, and the employer s contribution obligation. Military Service We provide guidance on the use of military service to increase periods of credited service by making permissible deposits for periods of military service. MyRetirewell instructors discuss the analysis that employees should individually conduct to determine whether incurring the cost of the deposit, including the interest, is justifiable based on whether retirement benefits will be significantly enhanced by the purchased service. Further, we provide advice on whether an employee should keep their military service separate. Reductions for Pre-Age 55 Retirement Our professionals provide information on how retirement benefits will be affected if an employee retires prior to the age of 55. Employees must have a clear understanding of how retiring prior to meeting certain age and service requirements will impact the amount of their monthly retirement benefit. 08

10 Employee Death Benefits As a matter of estate planning, employees must be informed of the benefits payable to their surviving spouse and dependents in the event of death prior to retirement. The income replacement provided by the CSRS death benefit feature is important to ensuring family financial stability after an employee s death. Our instructors provide the required instruction in this regard. Spousal Benefits The surviving spouse annuity benefits are also critical income replacement needed by an employee s spouse in order to remain financially secure after the employee s death. Our professionals educate employees on eligibility to have such benefits payable to their surviving spouse, as well as the conditions upon which the surviving spouse annuity will prematurely terminate. This typically occurs upon a surviving spouse s remarriage prior to age 55. We provide instruction on this very important information, as well as suggestions on how to educate spouses regarding the availability of the benefits. Domestic Relations Orders (Divorce) Our instructors provide guidance on how domestic relations orders (DROs) awarding benefits to a former spouse affect the employee s benefit entitlement and survivor benefits that may be payable to a subsequent spouse, if any. We provide strategies for ensuring that an employee s current spouse receives some level of income replacement after the employee s death. Survivor Benefits We provide guidance on survivor benefits offered to the surviving spouses and dependents in conjunction with the survivor annuity, such as health insurance, vision and dental and long-term care coverage. Instruction is also provided on termination events. Optional Retirement Our professionals provide instruction on the optional retirement, at age 62, age 60 and age 55 and the completion of the required number of years of credited service. We also provide guidance on how benefits are reduced if an employee retires prior to age 55. Deferred Retirement MyRetirewell professionals counsel employees on the consequences of deferred retirement, including ineligibility for health and other benefits when an employee terminates employment prior to eligibility for retirement benefits. Alternative Form of Annuity We explain the alternative form of annuity that is available in the event the employee has a life threatening illness or other critical medical condition. Our professionals provide instruction on the reduced monthly benefit and lump sum benefit component. Disability Retirement (and SSDI) Our professionals educate employees on the monthly benefit payable under disability retirement, including the criteria that must be satisfied in order to qualify for such benefits. We discuss the offset in the disability pension by Social Security disability benefits entitlement, the earnings limit, the effect of reemployment on disability retirement and unfavorable aspects of disability retirement. Discontinued Service Retirement Our professionals provide information regarding retirement benefits that are payable upon involuntary separation other than for cause. We define those important terms for the employees, discuss eligibility for discontinued service retirement, and advise employees on the consequences of declining reasonable offers of other positions. Early Retirement We provide information on the early retirement benefits available in involuntary separation cases and on account of voluntary separations during major reductions in force, as well as age and service requirements that must be met in order to qualify for such benefits. Phased Retirement MyRetirewell educates employees about the new phased retirement option, allowing an individual to be partially retired. We explain how phased retirement benefits are calculated based on the working percentage and also discuss the other conditions that apply. Annual Leave Payout We provide guidance on the best time to retire in order to receive a payout of annual leave, and to prevent forfeiture. Our professionals educate employees about the importance of receiving this payoff due to the delay in a retiree s receipt of their first pension payment. Benefit Application Process We walk employees through the retirement application process, including the days of the month in which to retire, the delay in the receipt of the first pension payment, reduced pension benefits during the adjudication period, as well as the process for challenging benefit denials. OPM Resources MyRetirewell professionals educate employees about the available OPM resources that can be used to assist in retirement planning, including the available pamphlets, online retirement tools and important contact information. 09

11 Detailed Explanation of the TSP for CSRS Participants: Employee Contribution and Elections importance of their contribution election and the need to make the maximum contribution possible, by adjusting their lifestyle, and on the process of making and changing their elections based upon current circumstance. We warn against keeping the same contribution election in place indefinitely. Tax Treatment of Contributions We advise employees on the tax treatment of contributions, being either pre-tax and/or after-tax Roth contributions, and on the analysis to be used to determine the type of contributions employees should make based upon their individual circumstances. Limitations on Contributions annual limitations on employee contributions, while making it clear that it is the employee s responsibility to ensure that the applicable limitations are not exceeded. We also provide instruction on catch-up contributions and the importance of maximizing retirement savings close to retirement. Rollover Contributions We advise employees on the functionality of making rollover contributions in order to consolidate retirement savings, which allows employees to more efficiently monitor success in reaching retirement savings goals. As the administrative fees charged by the TSP are significantly lower than the national average, we educate employees regarding the prudence of rolling over accounts from arrangements with higher net expense ratios. Age-Based In-Service Withdrawals Our professionals provide guidance regarding in-service withdrawals at age 59 ½, and inform employees regarding the consequences of taking a partial in-service withdrawal with respect to post-termination distribution options. Hardship Withdrawals We provide information regarding the availability of and criteria for hardship withdrawals, as well as the six (6) month suspension for such withdrawals. Further, our professionals educate employees regarding the ten percent (10%) early withdrawal penalty for pre-59 ½ withdrawals. Loan Feature operation of the loan feature, general purpose and residential loans, the loan repayment period, loan defaults and the availability of a cure period. Beneficiary Elections MyRetirewell emphasizes the importance of having valid beneficiary designations on file with TSP, with current contact information for beneficiaries, and the need to periodically review designations when life changes occur. Domestic Relations Orders (Divorce) Our instructors provide guidance on how domestic relations orders (DROs) awarding benefits to a former spouse affect the employee s benefit entitlement and survivors benefits that may be payable to a subsequent spouse, if any. We provide strategies for ensuring that an employee s current spouse receives some level of income replacement after the employee s death. Active Military Service and Reemployment We provide instruction on the process for making make-up contributions to accounts that were missed during an individual s period of absence to serve in the uniformed services, the extension of loan amortization periods and reversal of taxable service related distributions. Post-Retirement Distribution Options Our professionals provide guidance on how the use of post-retirement distribution options will support individual income replacement strategies in retirement. For example, the use of the flexible installment distribution feature instead of the purchase of an annuity. We also provide advice on post-retirement investing when the installment feature is selected. Required Distribution Date We emphasize the importance of taking distributions by the later of April 1 of the year following the later of the year in which an individual attains age 70 ½ or retires. Our professionals stress the importance of the required distribution date, account forfeitures (reclamation) and excise taxes that could apply for noncompliance. Required Minimum Distributions MyRetirewell provides advice on the calculation of the required minimum distribution that individuals must receive in order to avoid noncompliance with the required distribution date requirements. Lifestyle Investment Funds Our professionals explain the advantages and disadvantages of participation in the lifestyle funds for employees who lack the time, knowledge and interest in developing their own investment strategy. We explain the composition of each fund, the best 10

12 practices for evaluating progress towards reaching retirement savings goals and when to make investment changes. MyRetirewell provides guidance to employees in developing their individual retirement strategy. Individual Investment Funds Our professionals explain the advantages and disadvantages of participation in the individual funds for employees who have developed their own investment strategy. We explain the composition and volatility of each fund, the best practices for evaluating progress towards reaching retirement savings goals, benchmarking, investment risks and when to make investment changes. MyRetirewell provides guidance to employees in developing their individual retirement strategy. OPM Resources MyRetirewell professionals educate employees about the available OPM resources that can be used to assist in retirement planning, including the available pamphlets, the online Roth versus pre-tax contribution calculator, other online retirement tools and important contact information. MyRetirewell Retirement Preparedness: Steps employees can take to maximize their retirement benefits under the employer-sponsored plans in which they participate. Savings plan contribution levels needed to maximize savings, prudent investment choices based upon retirement horizons, rollover options, the advantages and disadvantages of in-service withdrawals and loans, and post-termination distribution options. Calculation of the income replacement needed to maintain pre-retirement lifestyle after retirement. The importance of high credit ratings, lowering debt ratios, individual financial net worth, and family focus on retirement. Ancillary Benefits: Health Insurance Medicare Federal Employee Group Life Insurance (FEGLI) Flex Program Long-Term Care Insurance Deliverables: PowerPoint Presentation Employee Study Manual PowerPoint Slides Retirement Savings Worksheet Budgeting Worksheets Other Agreed Supplemental Information Strategies for increasing retirement savings by the implementation of a budgeting lifestyle focused on lowering reoccurring expenses, and targeted savings for unforeseeable events and special occasions. Social security, other public benefits and post-retirement health insurance, life insurance and other ancillary benefits. Individual meetings with employees to answer personal retirement planning questions. Fraud prevention and the avoidance of marketing schemes. Estate planning and the role of spousal benefits. Recent Courses are referenced on 11

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