Retirement Considerations for CMU Employees Participating in MPSERS

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1 MPSERS Retirement Considerations for CMU Employees Participating Presented by: Mary Lou Morey

2 Presentation Agenda Changes at CMU miaccount for Active Employees & Retirees Eligibility for Retirement, Pension & Insurance Tax Deferring to Supplement your MPSERS Pension Social Security & Medicare Benefits The Checklist!

3 The Packets! Two kinds Booklets Social Security Medicare CMU Notebook Keep and Store! Questions??? Call or appointment.

4 Choosing a Date MPSERS retirement date always begins first of the month. Staff CMU last day end of the month Faculty May 15 th, August 15 th, or December 31 st End of the month for 12 month faculty Benefits Staff - Benefits will end on the last day worked. Faculty December 31 st, August 15 th or last day worked. MESSA continues until end of month. Giving Notice Written notice to department/supervisor Copy of notice to Mary Lou Morey

5 Office of Retirement Services- (ORS) ORS is the office that: Sets up & calculates your monthly pension. Verifies your employment history & service credit Sets up your insurance benefits Is located in Lansing, MI Web is

6 miaccount online You will need your member ID number to register Complete the 3-step registration process; a temporary password will be ed to you. Apply for retirement on line You can: Update your personal information Change address, phone number or address Change beneficiaries Estimate Pension Service Credit Earned Service Credit Purchased Wages & Service History (7/01/02 forward) Refunds taken

7 miaccount online Great website for retirees! You can change address Change banking information at any time Send notes to ORS through the message board Check your pension payments Print yearly statement for income tax purposes Update beneficiary information Keep up on changes & new things MSPERS

8 Connections Retiree & Pro Active Newsletters Connections Retiree Newsletter keeps you informed: New laws and changes that could affect you New insurance coverage changes (co-pays & deductibles) New yearly insurance costs ,00.html Pro Active Newsletter keeps you up to date on all the current issues regarding MPSERS ,00.html

9 Additional Ways to Supplement Your MPSERS Pension Start a Voluntary 403b Supplemental Tax Deferral and/or 457b Deferred Compensation Tax-Deferred Investment Plan Fidelity Investments and/or TIAA-CREF Pre-tax deductions from each paycheck Lowers taxable income while still working Another resource of money once you retire Way to defer additional money to cover transition from retirement until age 62, when you become eligible for reduced Social Security Benefits

10 When Are You Eligible To Retire? 30 years of any age (MIP) 30 years of age 55 (Basic) **** 60 years of age & 10 years of service 55 years of age and years of service In some instances 60 years of age and minimum of 5 years of service & a 1/10 of a year in each of the 5 years prior to retiring (MIP members only) Note* Insurance subsidy & effective date of insurance depends on if purchasing time after 7/1/

11 Medicare Eligibility WHO IS ELIGIBLE? You or your spouse/dependents are eligible for Medicare: (1) At age 65; (2) 24 months after disability is effective; or (3) Due to end stage renal WHEN DO YOU SIGN UP? You must sign up for Medicare Part A & B when you become eligible if going on the MPSERS plan. It must be done before terminating CMU if eligible at time of retirement. It takes 2-3 months to get it set up. This must be done in a timely manner or you could be penalized (permanent increase cost of Medicare Part B premium) You do not have to sign up for Medicare Part D when you become eligible because MPSERS will coordinate directly with Medicare in paying your prescriptions. It is illegal to have two Medicare Part D plans. WHO IS PRIMARY? MPSERS Medicare Advantage Blue Cross plan.

12 When You Become Eligible for Medicare You, your spouse or dependents that are eligible for Medicare MUST sign up for Part A & B if covered on MPSERS healthcare plan. (all other plans check with your insurance provider) You will be given a form at the Social Security office for someone in the Benefits office to sign stating that your creditable coverage is ending. Do not sign up for Part D because MPSERS has creditable coverage and will take care of the process for you & dependents. If you become eligible & sign up for Medicare after retirement, you MUST send a copy of your card to MPSERS Your deduction for insurances will change from your monthly pension check.

13 Choosing Insurance after Retirement You may be eligible for insurance elsewhere Spouses employer Spouses retirement pension provider Military retirement Check with these providers regarding the need for you to sign up for Medicare. You don t have to pick up Medical/Prescription insurance through MPSERS at time of retirement but to enroll later there is a: 6 month waiting period Waiting period is waived if coverage is lost for any reason but you must enroll within the 30 days of the event. You can change plans within MPSERs any time except if in the HMO. You have to be in the plan for six (6) months. Be sure to notify your doctors and hospital of the change in your insurance coverage.

14 Retirement Process Apply Online with miaccount: Follow the online questionnaire Print summary of retirement application and checklist, have your signature notarized and send to MPSERS with additional documentation (birth certificate, marriage license) How Long Does It Take? Prior to your retirement date, MPSERS electronically sends a final salary affidavit to the CMU Payroll office. After you have been paid your last earnings, CMU completes the affidavit and return to the ORS office. MPSERS will verify the information and process your pension payments. You will be able to go on miaccount and track the progress of your retirement. You can also sends questions to ORS on the message board.

15 Receiving Your First Check Pension payments are processed around the 25 th of each month. If paperwork is not finalized in the proper time, your 1 st payment may be delayed. When there is a delay in payments, any retro payments will be sent as soon as processed Deductions from your check: Employee s insurance premium deduction Federal withholding taxes (per your request) You don t owe Social Security or State withholding taxes

16 Employment Restrictions Planning to return to the workforce? NO work can be performed in the 1 st full calendar month after retirement date if you work in a MPSERS affiliated institution Includes working at any MPSERS affiliated school or any State of Michigan Institution This includes volunteering You can go to work at any other employer who is not affiliated with MPSERS without a waiting period or restrictions. (unless eligible for and drawing Social Security benefits, then other rules apply). MPSERs has post-retirement earnings limitations YOUR PENSION & INSURANCE WILL STOP!

17 COBRA & Other benefits COBRA letter will be sent within two weeks after you retire with detailed information regarding continuation of coverage and costs. You have 60 days from date the letter was sent to you to continue coverage. Medical, prescription drug, dental and or vision coverage may be continued for up to 18 months after your retirement date Employee and Dependent Life Insurance Ends on termination date Port or convert directly through Hartford Regular Faculty Additional $5,000 life policy as part of MESSA coverage May continue through MESSA direct pay You will receive letter from MESSA or may sign up in Benefits office before terminating

18 Retiree Status CMU Retiree 25 years of service at any age 10 years of service at age years of benefits eligible service at any age if totally and permanently disabled. Emeritus Status Senior Officer, P&A salaried with at least 10 years of full-time CMU service. Regular Faculty with at least 10 years of service.

19 Retirement Courtesies Free parking decal Campus ID Discounts Tuition Waiver (Emeritus only) A complete list is available on the CMU Preparing to Retire web site. If a change takes place in these courtesies a letter will be sent to the retire.

20 Final Check from CMU You will be paid your final check on your regularly scheduled pay date Paid off any vacation hours accrued up to 160 hours Hourly employees are paid off accrued personal hours. Tax deferrals any earnings, vacation and/or sick leave* hours can be deferred to a 403(b) or 457(b) plan. *Some Service Maintenance employees may be eligible for sick leave payout if hired before 7/1/2002.

21 Retirement at CMU I have: picked a CMU retirement/termination date given notice to my department notified the Benefits office registered for miaccount on the MPSERS website and have applied for my retirement pension and benefits arranged for post retirement health insurance signed up for Social (if eligible) signed up for appropriate Medicare coverage as required by my health insurance plan (if eligible)

22 Retirement at CMU continued.. I have: made a decision regarding tax deferring my final payoff accrual and have filled out the appropriate forms in the Benefits office (if pursuing) made a decision regarding basic life insurance and made arrangements to continue coverage (if desired) requested a refund on parking pass and picked up Retiree Parking Pass (if eligible) Regular Faculty only: applied to continue my $5,000 group term life insurance with MESSA Direct Pay

23 Got questions or need information? Office of Retirement Services CMU Benefits & Wellness Office cmich.edu/hr Rowe Hall