Retirement Seminar. Guilford County Schools Jeannie Greer Benefits Department. Smarter Living

Transcription

1 Retirement Seminar Guilford County Schools Jeannie Greer Benefits Department Smarter Living

2 Retirement Eligibility Requirements Reduced Retirement: 1. Age 50 with 20 years of services 2. Age 60 with 5 years of service Unreduced Retirement: 3. Age 60 with 25 years of service 4. Age 65 with 5 years of service 5. Any age with 30 years of service Health Insurance is provided with reduced and unreduced retirement (if eligible). Effective 10/1/06 new employees must have 20 years of service to be eligible for health insurance. 2

3 Preparation for Retirement 1. Decide on your retirement date(all retirement dates are on the first day of a month). 2. Review your personal information through the ORBIT system at to check service credit. 3. Once you review your information on ORBIT you should then complete Form 309 requesting an estimate from the Retirement System (6 months to 1 year before retirement date). 3

4 Preparation for Retirement Cont d Or you may visit the NC Department of State Treasurer Retirement website at: Once you are on the website you will need to: click on [ORBIT] scroll down to [Retirement Benefit] & click on it select Type of Member (Teachers and State Employees ) select Member Date of Birth select Beneficiary Date of Birth select Retirement Date key Total Service at Retirement (not including sick days), key average highest 4 consecutive years of salary (which is your 4 highest consecutive years divided by 4) key accumulated Sick Leave Days click calculate. 4

5 Retirement Appointments You must have an estimate before scheduling a retirement group meeting to complete the retirement paperwork. me (greerj@gcsnc.com) 6 months before your retirement date to schedule an group meeting to complete your paperwork. During the group meeting, we will discuss your retirement service years, review your benefits and your leave days. NOTE: (Paperwork cannot be completed until 120 days prior to retirement date per state law). 5

6 Sick Leave 20 days of sick leave equals 1 month of service credit that will add to your years of service. There is no limit on sick leave days. For the final month, any increment over.125 will count towards the final month of service. This means if you have at least 1 hour of a day you will earn 1 month of sick leave. 6

7 Other Leave Time Personal Leave Personal leave days will convert to sick leave (classroom teachers and media specialists). Annual Leave You will be paid out for up to 30 annual leave days. Bonus Leave You will be paid out for any bonus leave you have. Longevity You will also receive prorated longevity if applicable. 7

8 401k/Annuity If you wish to contribute your payout amounts of annual leave, bonus leave and longevity in a lump sum to your 401k or Annuity, I will give you the instructions for this process. You must be participating in these programs before your last paycheck is issued. For answers about how much you are allowed to put into your annuity, you must work through your broker. 8

9 Health, Dental & Life Insurance Health, dental and life insurance will end with GCS at the end of the month in which you retire. Health Insurance: is part of retirement for your lifetime (if eligible). NC Retirement System will auto enroll you into an insurance plan the month after your retirement date. Premiums will be deducted from the retirement check. You may cover eligible dependents at current premium rates. As a retiree when you or a covered dependent turn 65 you must sign up for Medicare Part A and B. 9

10 Health, Dental & Life (continued) At that time Medicare A & B are Primary and the State Plan is secondary. (Once retired you will not be eligible for 80/20 plan at 65 or older). Dental Insurance: Your current dental plan may be kept 18 months under COBRA provisions. It is your responsibility to pay the premiums. Life Insurance: You may convert or port any or all optional life insurance you have with Met Life (convert means change to a new policy, port means to keep the same policy.) 10

11 Other Insurance Flex Benefits: These plans will end on your resignation date. You may continue certain flexible benefits after retirement. Gilsbar Flex Spending Account: No advantage to continue. Vision Insurance: You will receive notification to elect COBRA for 18 months. Allstate Cancer Plan: You must contact the company to continue this policy. # Texas Life: You must contact the company to continue these policies. #

12 Retirement System s Benefits Death Benefit: The NC Retirement System will offer you a $10,000 death benefit policy. Dental, Vision and Life Insurance: The NC Retirement System contracts the Pierce Insurance Agency to offer you dental, vision and life insurance plans after retirement. If chosen, these premiums will be deducted from your retirement check. Note: You may elect to COBRA your current GCS dental and vision plans for 18 months if you choose to and once the 18 months are complete you may join the retirement system s dental and vision plan. 12

13 Required Retirement Forms and Documents Forms Form 6 - Claiming Your Retirement Benefits Form PS-33 - Resignation Form Requirements Driver s License or Birth Certificate (Copies) Copy of Beneficiary s Driver s License or Birth Certificate and their social security number if interested in Payment Option 2 or 3 and Social Security Statement if interested in Payment Option 4 13

14 Process 1. Form 6 and resignation will be signed and dated during group meeting, copies of the forms will be mailed to your home address. 2. I will forward the original forms to the Retirement System and Human Resources for processing. 3. Upon receipt the Retirement System will send you the following paperwork: Notification Letter RET Authorization Agreement for Direct Deposit Form RET-290-Notice of Tax Withholding (federal and state) Form 6E-Election of Benefits (select payment option) Report of Estimated Retirement Benefits RET-333- Notice of $10,000 Contributory Death Benefit for Retired Members BEN-333- Beneficiary form for $10,000 6E Receipt Once the retirement system receives the completed 6E they will auto enroll you into the health insurance. You need to call to make sure you have been enrolled in the correct insurance plan, make a change or to decline coverage. Form 336 Designating Beneficiary(ies) for Guaranteed Refund 14

15 Taxes All retirement checks are subject to Federal Withholding Taxes. As a retiree you may change your tax selections anytime you feel you need to increase or decrease the deductions. Consult your tax advisor regarding your options before making your final decision about taxes after you retire. 15

16 Taxes (continued) If you had 5 full contributory years in the State as of August 12, 1989, you are exempt from paying State Withholding Taxes; Otherwise, you are subject to paying them on your retirement. If you had five years and took the money out and bought back the time, you forfeited the exemption and are still subject to the taxes. 16

17 Checks When you retire, your first check is always mailed out on the 25 th of the month so you receive it about the 28 th or 29 th. After you cash your first check all future checks are direct deposited into your account on the morning of the 25 th. In December, they are typically posted on or about the 20 th. Retirement checks are paid 12 times per year. 17

18 How the Payment Options Work Option 1: Maximum Payment To You each month for the rest of your life. $2,

19 Payment Options Option 2 100% Joint And Survivor You receive reduced monthly payments for life. After you die, your beneficiary receives the same amount monthly for life. To You To Beneficiary $2, $2, Option 3 50% Joint And Survivor You receive reduced monthly payments for life. After you die, one-half of your payment continues to your beneficiary for life. To You To Beneficiary $2, $1, Option 4 Social Security Leveling You receive larger monthly payments than you would otherwise be entitled to receive, until you become eligible for Social Security at age 62. To age 62 - $ 3, Age 62 and after $2,

20 Option 6 Modified Joint And Survivor Option combination of Option 2 and *maximum payment To You Beneficiary $2, $2, Option combination of Option 3 and *maximum payment To You Beneficiary $2, $1, *If beneficiary dies before retiree, retiree monthly amount will convert back to maximum payment. 20

21 Example of Estimate Department of State Treasurer TEACHERS AND STATE EMPLOYEES RETIREMENT SYSTEM 325 North Salisbury Street Raleigh, North Carolina Nov PRELIMINARY ESTIMATE OF RETIREMENT BENEFITS Jane A. Doe S. S. # Deer Crossing Lane Deer Park, NC A.# = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = ASSUMPTIONS USED FOR PRELIMINARY ESTIMATE OF BENEFITS Date of birth 01/26/44 Total service credits Retirement date 01/01/08 Aver. Final compensation $58, Sick leave days Total contributions $69, Annual leave days Taxed contributions $10, Est. monthly SS (age 62) $ 1, Beneficiary: John A. Doe Beneficiary birthdate: 10/15/44 At your death To You To Beneficiary MAXIMUM PAYMENT $2, None PAYMENT OPTIONS (2) 100% Survivorship $2, $2, (3) 50% Survivorship $2, $1, (4) Social Security Leveling To Age 62 $3, None Age 62 and after $2, None (6) Pop-up With option (2) $2, $2, With option (3) $2, $1, GUARANTEED REFUND (under all of the payment plans above): If you and the beneficiary (if any) you may have to receive *The estimate under Option (4). ***Based upon your age *Disclaimer* 21

22 Re-employment After Retirement Cap Under current legislation, all state employees may return to work under a cap. A 6 month break is required for all retirees returning to state employment. The cap is determined by the Retirement System. Each year the standard cap changes in January. You must contact the Retirement System to determine your yearly cap. Six-month Break During the 6 month break the employee shall not work in any capacity in a organization participating in the Teachers and State Employees Retirement System, including part-time, temporary, substitute, part-time tutor or contracted services. After the Six-month Break A retiree may work as an interim, tutor, substitute, temporary status or permanent part-time (<30 hrs. per week). Employees in this capacity must not exceed earnings cap and must not be employed in permanent full-time status. 22

23 Reminders Send your estimate request (Form 309) to the retirement system at least 6 months prior to your retirement or complete online estimate (see page 4 for instructions). You should (greerj@gcsnc.com) or call ( ) to schedule an appointment 6 months before your retirement date. The earliest you may complete your paperwork is 120 days prior to your retirement date. Do not complete your paperwork later than 60 days prior to your retirement date if possible due to the delay in receipt of retirement check. Please advise your supervisor in a timely manner of your decision to retire. 23

24 Contact Information The Retirement Handbook and all forms available from the Retirement System may be viewed and downloaded from the website at: There is more than one state retirement system. Our retirement system is the: Teachers and State Employees Retirement System. NC Department of State Treasurer, Retirement Systems Division 3200 Atlantic Avenue Raleigh, NC Toll free line: Fax number:

25 ORBIT ORBIT stands for Online Retirement Benefits through Integrated Technology. You may access the system at Click on ORBIT, Scroll down, click register, create ORBIT account. 25

26 ORBIT cont d This system will allow you to view personal information, account summary, account history, view benefit estimate, annual account statement and track recent request. You can also create a custom benefit estimate or service purchase estimate, request a current statement of your account or a counseling session and update your phone number and address. 26