Welcome! Early Retirement Window And Information Session For Classified Employees January 9, 2019 5:00 8:00 p.m. 2015 Milwaukee Public Schools 1
Overview At the March 30, 2017 Milwaukee Board of School Directors (MBSD) meeting, an Early Retirement Window (ERW) was approved for the period of July 1, 2017 June 30, 2020 The ERW would allow eligible employees to retire at age 55 years or older during this period instead of age 60 years 2015 Milwaukee Public Schools 2
Eligibility Requirements Eligibility requirements to retire under ERW: Eligible for retiree benefits (employed prior to July 1, 2013 and no subsequent break in service) Must be age 55 years or older and retire during the ERW District support employees must provide 90 calendar days notification of retirement School based employees must retire at end of the school year and provide notification of retirement by January 31 of the school year Current provisions to retire at age 60 years continues 2015 Milwaukee Public Schools 3
Next Steps Visit the website at http://mps.milwaukee.k12.wi.us/en/employment /Retirees/Early Retirement Window.htm to: Access this presentation Frequently Asked Q&A s and Additional information 2015 Milwaukee Public Schools 4
Benefits The Early Retirement Window ERW July 1, 2017 through June 30, 2020 MPS Retiree Health Insurance Benefits Including Sick Leave Requirements MPS Retiree Life Insurance MPS Accumulated Leave Program (formerly known as Severance Pay) How to access more information 2015 Milwaukee Public Schools 5
Retiree Health Insurance Eligibility The Early Retirement Window ERW July 1, 2017 through June 30, 2020 For Board paid coverage: Age 55 or older at time of retirement and 20 years of MPS service and 90% of maximum full pay sick leave hours Note: Half pay hours convert to full pay sick leave hours for meeting retiree health eligibility requirements For self paid coverage: Age 55 or older at time of retirement and 20 years of MPS service 2015 Milwaukee Public Schools 6
Retiree Health Insurance Eligibility (cont d) A Year of MPS Service is defined as follows: Full time employment with MPS. Part time employment with MPS, except for clerical/technical unit or exempt from this unit (formerly 1053). Part time recreation service is not counted for any employee unit. A year of service is a school or calendar year provided you worked the full scheduled school year. All time during a paid or unpaid approved leave of absence, layoff or suspension. For the clerical/technical unit, only paid approved leaves of absence are included. Eligible periods of employment prior to July 1, 2013. 2015 Milwaukee Public Schools 7
MPS Retiree Health Insurance Eligibility Requirements A Year of Eligible Service can be met by: 20 years of MPS service or 20 years of creditable service in the City of Milwaukee Employes Retirement System. Administrators and Supervisors regular or exempt Cabinet level Clerical-Technical unit regular or exempt Building Engineers unit Building Trades unit Warehouse and Distribution Services, Buyers, F & M Services, Groundskeeper, Technology, etc. 2015 Milwaukee Public Schools 8
Retiree Health Insurance Eligibility (cont d) The Board Credit is: The Board s share of the average of the PPO Health Plan and the EPO Health Plan premium rates for the active employee plan in effect as of the date of retirement. Note for Building Trades unit only: Board credit is the rate in effect at the time of retirement for the EPO plan only, minus employee premium share. You must have the required sick leave balance (90% of your maximum accrued sick leave) as of your retirement date. 2015 Milwaukee Public Schools 9
Retiree Health Insurance Eligibility (cont d) You must have the required sick leave balance (90% of your maximum accrued sick leave) as of your retirement date. Please note: Half pay sick leave hours convert to full pay sick leave hours for purposes of meeting retiree health benefit eligibility requirements. You can track your sick leave balance on your paycheck stub. 10 Month Employees 12 Month Employees 1,044 hrs 1,080 hrs 2015 Milwaukee Public Schools 10
MPS Retiree Health Insurance Current employee contributions per pay period Based on 1/1/19 12/31/19 rates Annual Base Salary $25,000 or under $25,001 $50,000 $50,001 $75,000 $75,001 and above Coverage PPO% PPO Employee Deduction EPO% EPO Employee Deduction HDHP% HDHP Employee Deduction Single 11% $48.98 5% $23.04 2% $8.58 Family 11% $115.12 5% $54.15 2% $19.93 Single 12% $53.43 8% $36.86 5% $21.45 Family 12% $125.59 8% $86.64 5% $49..83 Single 13% $57.88 10% $46.07 7% $30.04 Family 13% $136.05 10% $108.30 7% $69.76 Single 14% $62.34 12% $55.29 9% $38.62 Family 14% $146.52 12% $129.95 9% $89.69 2015 Milwaukee Public Schools 11
Retiree Health Insurance Monthly Premiums Example with current rates for employee in the $60,000 salary contribution band: Coverage Type Monthly Premium Rate PPO Employee Contr. Percent Board s Share PPO Monthly Premium Rate EPO Employee Contr. Percent Board s Share EPO Average PPO/EPO Board Credit Single $742.09 13% $645.62 $767.91 10% $691.12 $668.37 Family $1,744.25 13% $1,517.50 $1,804.92 10% $1,624.43 $1,570.96 2015 Milwaukee Public Schools 12
Retiree Health Insurance Monthly Premiums Example with current rates for employee in the $60,000 salary contribution band 2019 Rates: Coverage Type Monthly Premium Rate Board Credit Retiree Pays Single PPO $737.65 $668.37 $69.28 Single EPO $763.47 $668.37 $95.10 Single HDHP $710.69 $668.37 $42.32 Family PPO $1,733.48 $1,570.96 $162.52 Family EPO $1,794.15 $1,570.96 $223.19 Family HDHP $1,650.22 $1,570.96 $79.26 2015 Milwaukee Public Schools 13
Retiree Health Insurance Monthly Premiums Upon reaching Medicare eligibility (currently age 65), the Board credit will be adjusted (reduced) to the Board s share of the average of the Medicare rates in effect as of the date of retirement to reflect coordination with Medicare. Example for $60,000 salary: Coverage Type Monthly Premium Rate Employee Contr. Percent PPO Board s Share PPO Monthly Premium Rate Employee Contr. Percent EPO Board s Share EPO Average PPO/EPO Board Credit Single w/medicare Couple both w/medicare $195.00 13% $169.65 $195.00 10% $175.50 $172.58 $390.00 13% $339.30 $390.00 10% $351.00 $345.15 2015 Milwaukee Public Schools 14
Retiree Health Insurance Monthly Premiums After your retirement date, you are responsible for paying all future premium increases when the premium for the plan you are enrolled in is greater than the Board Credit as explained. Self paid by you if you do not have the required sick leave balance as of your retirement date but you meet the age and service requirements. 2015 Milwaukee Public Schools 15
Retiree Health Insurance Monthly Premiums Self paid retirees Separately rated premiums that are no longer blended with actives for rating purposes. 2019 Rates: HEALTH PLAN (Does not include Vision) UnitedHealthcare PPO Plan UnitedHealthcare EPO Plan UnitedHealthcare HDHP Single $1,106.17 $1,139.35 $1,084.19 Family $2,212.34 $2,278.71 $2,168.39 Couple, One w/medicare $1,301.17 $1,334.35 $1,279.19 Family, One w/medicare $1,301.17 $1,334.35 $1,279.19 Family, Two w/medicare $702.14 $713.06 $674.05 2015 Milwaukee Public Schools 16
MPS Retiree Health Insurance For Surviving Spouse of a Retiree If the employee dies after retirement: The surviving spouse can continue coverage under the MPS retiree health insurance unless the spouse remarries or is otherwise covered by another group health insurance plan (Note: otherwise covered does not mean Medicare). The eligible dependents covered at the time of the retiree s death can elect to continue coverage on a self paid basis for up to 36 months under COBRA. The Board Credit will be adjusted to the Board s share of the average of single PPO and EPO rate for an active employee plan in effect as of the deceased s retirement date. Surviving spouse will be required to pay all future premium increases. Board Credit adjusted when surviving spouse becomes eligible for Medicare. 2015 Milwaukee Public Schools 17
MPS Retiree Health Insurance Important Points to Remember! In order to be eligible for retiree health benefits, you must be enrolled in an MPS health insurance plan, as the subscriber on your date of retirement. For example, if you opted out of MPS health insurance or if your spouse was enrolled as the subscriber, you should plan to switch during the Open Enrollment period prior to your retirement date. You cannot enroll outside normal enrollment periods while working or enroll after your retirement date. You do not have to draw your pension in order to retire from MPS for retiree health insurance purposes provided you meet the above eligibility requirements. You must advise the Department of Benefits & Compensation, in writing, that you are resigning to retire but deferring your pension. 2015 Milwaukee Public Schools 18
MPS Retiree Health Insurance Important Points to Remember! Once you unenroll from the MPS retiree health insurance coverage or you let your premium payment lapse, you cannot later get your MPS retiree health insurance plan back. Retirees may switch health plans and update MPS insurance information during the annual open enrollment period in FALL (with an effective date of January 1 st ). Open, read and keep your MPS Open Enrollment booklet every year because it contains important information that may affect you. Your MPS retiree health insurance premium will be deducted from your pension check and you will need to sign the necessary MPS authorization forms before you retire. MPS will bill you monthly for your retiree health insurance premium if you have no pension to collect it from OR if the amount of your pension is less than the amount of the health premium you owe MPS. 2015 Milwaukee Public Schools 19
MPS Retiree Health Insurance Important Points to Remember! If you terminate employment at MPS before age 55 but have met all of the other requirements (i.e., sick leave and years of service) you cannot later enroll for MPS retiree health insurance. If you remarry or marry after your retirement, your new spouse is not eligible to be added to your MPS retiree health insurance plan. Your vision coverage (through National Vision Administrators) and a Healthcare Flexible Spending Account (FSA) if enrolled terminates upon your retirement. Retirees can reduce coverage from family to single but cannot change from single to family coverage after retirement. You must keep MPS Department of Benefits & Compensation advised of your address changes and other events such as death, divorce, etc. after you retire because we continue to mail important information about your benefits. Rehired retirees can maintain their retiree health and life coverage and are only eligible to enroll in active health and life coverage if you sign an irrevocable waiver forfeiting the earned retiree health and life benefits. 2015 Milwaukee Public Schools 20
MPS Retiree Health Insurance Important Points to Remember! When you and/or your spouse (or disabled dependent) become eligible for Medicare MPS offers a Group Medicare Advantage Plan: Enrollment in Medicare A & B is required, even if you choose not to collect your eligible Social Security benefits, as Medicare is effective and the primary payer the first of the month you/your spouse turn age 65 or the first of the month following your retirement (if already 65 or older at retirement), or if you or your spouse are disabled and eligible for Medicare upon retirement. You must enroll and maintain Medicare A & B. The premium for Medicare B will be deducted from your social security check or billed directly to you (if not collecting social security). As long as your Board Credit is greater than your premium for the MPS Group Medicare Advantage plan, you will receive reimbursement for all or a portion of your Medicare B premium (this feature is not available to any spouse including surviving spouses it applies only to the MPS retiree). Once enrolled in Medicare, please remember to provide MPS a copy of your Medicare identification card. 2015 Milwaukee Public Schools 21
MPS Retiree Health Insurance Important Points to Remember! The MPS Group Medicare Advantage Plan combines original Medicare Part A (hospital) and Part B (doctor and outpatient visits) with additional benefits offered by MPS and prescription drug coverage (under a group Medicare Part D plan). Prescription Drug coverage: Once Medicare eligible, MPS will enroll you in a group Medicare Part D plan as part of the Medicare Advantage plan. You do not need to individually enroll in Part D. Pharmacy benefit coverage is provided by OptumRx. Enrollment in Medicare Parts A and B is required! Both Parts A and B are required to become enrolled in the MPS Group Medicare Advantage Plan. Failure to enroll in Medicare A and B may result in a lapse in your MPS retiree insurance coverage and may leave you uninsured. The MPS Group Medicare Advantage plan will be primary for all covered individuals, and will coordinate Medicare A, B and provide Part D (drug) coverage. 2015 Milwaukee Public Schools 22
MPS Retiree Health Insurance Important Points to Remember! After your written resignation to retire is received by MPS, the Department of Benefits & Compensation will prepare and send out information and an MPS authorization and election form for your retiree health and life insurance benefits, if eligible. Your MPS representative for health benefits is assigned based on: Employee last name beginning A G: 475 8158 Employee last name beginning H O: 475 8233 Employee last name beginning P Z: 475 8215 Your MPS representative for Life Insurance: 475 8699 MPS does not provide retiree dental benefits. You can continue your dental coverage through MPS up to 18 months self paid under COBRA continuation. If you are not eligible for MPS retiree health insurance, you can continue your health coverage through MPS up to 18 months self paid under COBRA continuation. 2015 Milwaukee Public Schools 23
MPS Retiree Life Insurance Eligibility ERW July 1, 2017 through June 30, 2020 The eligibility for MPS group retiree life insurance is: Age 55 or older at retirement AND 20 years or more of MPS service. NOTE: Food Service, CHA, SNA and Building Service Helpers if hired on or after 7/1/86 are not eligible for retiree life insurance coverage. The premium before age 65 will be: Self paid by you Premium is based on the current group rate of $.35 per $1,000 coverage (monthly) Premium will be deducted monthly from your pension or billed to you if you defer your pension If you do not keep your life insurance premiums current, your coverage will lapse and you will not be eligible to re enroll 2015 Milwaukee Public Schools 24
MPS Retiree Life Insurance Eligibility The premium after age 65 will be: Fully Board paid Maximum coverage amount of $25,000 at the final reduction Amount of life insurance = 1 times your annual base salary prior to retirement, rounded to the next higher $1,000 (Note: Annual base salary does not include overtime and secondary jobs.) Currently administered by The Standard Group# 753788 2015 Milwaukee Public Schools 25
MPS Retiree Life Insurance Eligibility Your retiree life insurance benefit will be reduced as follows as of the March 1 st that falls on or next follows your birthday: Age % of amount in force at your retirement date 65 75% 66 50% 67 25% with a maximum benefit of $25,000 Remember to check your beneficiary and keep it current. You can do this by logging in to The Standard s website standard.benselect.com On the Welcome page of The Standard s website, look at right hand side and under What would you like to do? click on the link Change my beneficiary, select the plan Group Life and A&D, then hit Next and follow the remaining instructions to update or change beneficiaries. 2015 Milwaukee Public Schools 26
MPS 403(b) Accumulated Leave Program (Formerly known as the MPS Severance Benefit) The MPS 403(b) Accumulated Leave Program: Provides payment of up to 10 accumulated days of full pay sick leave hours in excess of the 90% maximum accumulation This payment will be made by MPS upon your retirement as a mandatory (nonelective) employer contribution to your 403(b) Accumulated Leave Program account Both you and MPS are able to take advantage and benefit by the following features under this program: You enjoy a higher overall limit for all contributions to your tax sheltered annuity and you no longer have to use your individual employee limit to tax shelter the payout of your accumulated sick leave You avoid paying the 7.65% employee Social Security and Medicare tax MPS avoids paying the 7.65% employer Social Security and Medicare tax 2015 Milwaukee Public Schools 27
MPS 403(b) Accumulated Leave Program (Formerly known as the MPS Severance Benefit) Upon your retirement from MPS, your benefit under the MPS 403(b) Accumulated Leave Program will: Be deposited within 4 6 weeks after your retirement in a fixed interest bearing account with either Voya, MetLife, TIAA CREF or WEA Trust based upon your current 403(b) election and you will receive written notification by either Voya, MetLife,TIAA CREF or WEA Trust when they receive the money and your MPS pay stub will reflect the amount of the contribution made by MPS. (Note: If you do not have a current 403(b) election, it will automatically be deposited with Voya.) Not be subject to a penalty upon withdrawal. You only pay the state and federal taxes as those that apply to employee contributions when they are withdrawn. Be available for withdrawal by you without a tax penalty within about 10 15 working days after you sign the necessary paperwork with your 403(b) vendor. 2015 Milwaukee Public Schools 28
MPS 403(b) Accumulated Leave Program (Formerly known as the MPS Severance Benefit) Upon your retirement from MPS, your benefit under the MPS 403(b) Accumulated Leave Program will have the following options: Leave the funds in the account Withdraw all or a portion of the funds Transfer the funds to another 403(b) vendor Invest the funds in the same or different manner as your regular 403(b) funds 2015 Milwaukee Public Schools 29
MPS 403(b) Accumulated Leave Program (Formerly known as the MPS Severance Benefit) Some additional points to be aware of: Participation in the program is mandatory for all employees and employees cannot opt out because the IRS will not permit. This program only includes accumulated sick leave and NOT vacation or compensatory time. You cannot convert half pay sick leave hours. 2015 Milwaukee Public Schools 30
Need More Information on Retiree Benefits and the Early Retirement Window? 2015 Milwaukee Public Schools 31
and Information Session The information in this presentation describes MPS retiree health and life insurance benefits under the Early Retirement Window for MPS Employees, and the MPS benefit programs in general terms only, as of the date of this seminar. It is not intended to be a complete description of benefits. Your MPS benefits are governed by the terms and conditions of the plan documents, administrative policy and practices, federal/state statute, and Internal Revenue Code and Regulations. THANK YOU 2015 Milwaukee Public Schools 32