YOU, Retired. A pre-retirement seminar that will help you to get there. September 7, 2017

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1 YOU, Retired. A pre-retirement seminar that will help you to get there September 7, 2017

2 Introducing Rocco Terranova, President and Business Manager Brenda Deming, Fund Administrator Kristine Lofquist, Pension Manager

3 What we will cover tonight There are many steps in the retirement process don t take the shortcut! We encourage you to make an appointment so that we can assist you to develop a plan for all of your retirement income sources Pension Plan highlights Pension Options How to Apply Retiree Medical Your Annuity Fund National Pension Plan

4 Retirement the money is no better, but the hours are Lets begin with your pension benefit worksheet

5 Types of Pensions Regular Pension Payable at age 62 if you have 10 pension credits $43.50 for each Pension Credit, no maximum number of credits that count in calculating the benefit Early Retirement Pension Payable between ages 55 and 62 if you have at least 10 pension credits The amount is reduced by ½ of 1% for each month you retire before age 62 (6% per year) Deferred Pension: A type of pension for those who leave the SMW Local 73 Pension plan before retirement. The rate per credit is based on the date you leave the plan.

6 Payable if your age and pension credits total at least 95 when you retire Monthly amount is the same as that of a Regular Pension There is no reduction for early retirement if you are younger than age 62 Special Service Credits are not included in determining eligibility Rule of If your age and service add up to 95 or greater this applies to you

7 Special Service Credits (starting in Calendar Year 2000) In CY 2000 worth $3.00 hours credit earned From worth $3.50 From 2003 forward each Special Service Credit is worth $

8 Taking your Pension if you are disabled If you become disabled from sheet metal work at any time prior to age 62 Have at least 10 pension credits and have earned ½ pension credit during the 12 month period right before the date you became disabled You will receive the same amount in a Disability Pension as the Regular Pension

9 Pension Options If you are single Single Life Annuity with 60 month guarantee Level Income (coordinates with Social Security) with 60 month guarantee Partial Lump Sum Option with 60 month guarantee If you are married 50, 75 and 100% Joint and Surviving Spouse options Level Income (coordinates with Social Security) 50% Joint and Surviving Spouse Partial Lump Sum Option 50% Joint and Surviving Spouse Single Life Annuity with 60 month guarantee

10 Death Benefits Before Retirement 75% Unreduced Pre-Retirement Surviving Spouse Pension Payable to surviving spouse if the member dies with at least 10 pension credits while an active participant under the Plan Payable the month following the member s death and pays the spouse 75% of the full straight-life pension based on the number of pension credits at the time of death. There is no reduction for age if the member is younger than age 62.

11 Death Benefits Before Retirement 50% Pre-Retirement surviving spouse pension payable to your surviving spouse if you are entitled to a pension from the plan at the time of your death, but are not an active participant Lump Sum Pre-Retirement Death Benefit of $1,500 is payable to your beneficiary if you have 10 or more pension credits The lump sum is not available if your spouse is receiving a Pre- Retirement surviving spouse pension

12 How to Apply The pension application process

13 Yes, there will be forms to fill out. Lots of forms. No, it will not be fun. Yes, we are here to help and guide you through the many options and choices available to you. Yes, it s what we are here for. Demystifying the pension application process Retirement is when the living is easy and the payments are hard

14 A General Outline of the Pension Application Process Request an application about 3 months before you plan to retire Complete and return the application with all requested documents which include: Proof of age for you and a spouse Proof of marriage and/or divorce and any QDRO settlement Social Security Statement if you are electing a Level Income Option We will then prepare a second packet of forms which will include your Option Election form, Retirement Declaration, Tax Withholding Notice, Direct Deposit, Medical Election form, and other required forms

15 Schedule a meeting with a staff member The best way to complete the pension application process is to come in and meet with a counselor so that you understand the process, and can begin receiving your pension when YOU want!

16 Social Security and You Choosing when to begin receiving benefits is an important part of deciding when to retire and can influence your choice of pension options

17 Timeline for Retirement Planning 62 Earliest age to collect Social Security retirement benefits: however, claims before your full retirement age means reduced monthly benefits 65 Sign up for Medicare Part B Receive full Social Security Benefits, depending on the year you were born Or: Earn delayed retirement credits, which increase monthly benefits for every month you delay from full retirement age to age /2 Start taking minimum withdrawals from most retirement accounts by this age; otherwise, you may be charged heavy penalties in the future

18 Your Annuity Account How to access your annuity funds in retirement

19 As you begin the retirement process, the best thing to do is to schedule an appointment with a Fidelity representative They will help you to come up with a withdrawal rate that fits your retirement plan, and whether automatic withdrawals will work or on an as needed basis You can find a local office by calling the number listed on your contact sheet or calling the Fund Office Accessing your Annuity Funds I m going to retire and live off my savings. What I ll do the second day, I have no idea.

20 Our Annuity Manager, Karen Meifert Can help you to register to use Fidelity online to access your account, help you to locate a Fidelity Investment Center and put you in contact with staff who can help you with your retirement plans

21 Retiree Medical Insurance Available for members who qualify

22 To Be Eligible for Retiree Medical Insurance The pension that you are receiving from the Fund must be based on a minimum of 10 pension credits If your pension is based on less than 25 pension credits you must have been credited with a minimum of 3 pension credits within the year you retired and the 6 years right before you retired In summary, you must enroll, make the required self-payment, and be receiving a pension from the Sheet Metal Workers Local Union No. 73 Pension Fund.

23 Age Age Age Age 65 Age 65 Years of Less Than With Without Service 60 years Years Years Subsidy Subsidy 35 + $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Retiree Medical Premiums Rates can change every year, and usually do increase. This chart is to give you a general idea of the cost of coverage

24 Medicare Part A Covers inpatient hospital charges You are automatically enrolled in Part A Neither A or B cover prescription drugs, you will either get that coverage through Part D, or a retiree supplemental plan Part B Covers Dr. visits, lab work physical therapy If you don t sign up for Part B when you are first eligible you may have to pay a late enrollment penalty for as long as you have Medicare coverage

25 Questions? Introducing Patty Smith Lead Pension Analyst Sheet Metal Workers National Pension Fund 8403 Arlington Blvd., Suite 300 Fairfax, VA