Retirement - PowerPoint Presentation

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Retirement

Presented by:

Human Resources DepartmentSlide2

OverviewNEO Retirement

Accrued LeaveOTRS RetirementTIAA-CREFInsurance Options

NEO Retiree BenefitsSlide3

Thinking About Retirement?Wondering what your retirement might be?

TIAA-CREF Website-www.tiaa-cref.orgOTRS Website-www.ok.gov/TRSSocial Security Administration-www.ssa.gov/estimatorSlide4

NEO Retirement CriteriaQualification for NEO Retirement

Age 62 with 10 Years of NEO Service orContinuous Years of NEO Service (Any Age) or

OTRS Rule of 80, Rule of 90 or Rule of 90/65.Slide5

NEO Retirement Process

Resignation LetterSubmit to Supervisor at least 90 Days Prior to Retirement. Supervisor will send a copy to Personnel.

Retiree request that your Supervisor complete a Request for Personnel Action Form indicating your last day of work.Retiree should complete their last time card or leave report prior to last day of work.

All benefits will terminate at the end of the month proceeding the last day of employment.Slide6

Annual (Vacation) LeaveBe aware of your leave situation prior to retirement

Faculty leave records are maintained at departmental level and sent to PersonnelForfeit if more than max accrualAny accrued annual leave will be paid out with last check or next available pay period.Slide7

Sick LeaveSick Leave

Forfeit UnusedPossible one year OTRS creditSick Leave plus Partial Year Work

NEO verifies for OTRSSlide8

Oklahoma Teachers’ Retirement System

Active Members: 88,085Retirees: 50,829Inactive:

15,223Total: 154,137Annual Payroll: $3,773 millionEmployee Contributions = $287 approx millionEmployer Contributions = $388 approx millionDedicated Revenue

= $252 approx millionTOTAL: $926 approx millionSlide9

Oklahoma Teachers’ Retirement System

OTRS Retirement Criteria:Five Years of OTRS Membership

Age 62 with full benefitsAge 55 with reduced benefits

Disabled

at any age with 10 years of

service- (must be approved through OTRS)

Rule of 80

at Any Age

(QUALIFYING MEMBERSHIP DATE: member

prior to 7-01-92

)

Average of highest 3 salaries used to calculate monthly retirement benefit

Rule of 90

at Any Age

(QUALIFYING MEMBERSHIP DATE: member after 6-30-92 & before 11-1-92)

Average of 5 highest consecutive salaries (used to calculate benefits)

Rule of

90/65

(QUALIFYING MEMBERSHIP DATE: member after 11-1-11)Slide10

OTRS Cont.Early Retirement: Members can also qualify for early retirement with a reduced benefit. Early retirement is as follows:

Are between ages 55 to 61 and have at least five (5) years of Oklahoma creditable service, but do not 80 or 90 “points”; the reductions shall be as shown on the next slide.Slide11

OTRS members who joined on or after July 1, 1992, can retire with full benefits from OTRS:At age 62 with at least 5 years of OTRS service credit

ORWhen age plus years of OTRS service credit equal 90 or more (Rule of 90).

OTRS members who joined on or after November 1, 2011, can retire with full benefits from OTRS: At age 65 with at least 5 years of OTRS service credit ORWhen age plus years of OTRS service credit equal 90 or more (Rule of 90).

OTRS Cont.Slide12

OTRS Cont.OTRS members who joined prior to July 1, 1992, can retire with full benefits from OTRS:

At age 62 with at least 5 years of OTRS service credit ORWhen age plus years of OTRS service credit equal 80 or more (Rule of 80).Slide13

OTRS Cont.Members are eligible to apply for disability retirement benefits from OTRS at any age with at least 10 years of service credit. Members with at least 5 years of service credit may begin receiving a reduced retirement benefit when they reach age 55 or when they have 30 or more years of service, regardless of age.Slide14

OTRS Cont.Vesting & TerminationIn order to be considered a vested member of the system a client must have accumulated 5 years of creditable service, after which the client becomes a member who then has a property right to their retirement. Slide15

OTRS Cont.Contribution Rate – SummaryEmployee (Monthly benefit paid by NEO): 7%

Employer Statutory (Monthly benefit paid by NEO): 9.5%Your retirement is calculated on your salary and applicable fringe benefits (e.g., health, dental, vision, etc.)Slide16

OTRS Cont.OTRS provides each retiree with a $5,000.00 life insurance payment to be provided to the beneficiary designated with OTRS, should retiree pass away.Slide17

OTRS Cont.Retirement CalculationOTRS determines final retirement. However for purposes of this presentation, the retirement formula can be simply described as:

2% x Final Average Salary (FAS)

x years of creditable serviceSlide18

OTRS Cont.Estimate from OTRS

120 Days Prior to RetirementMust complete OTRS PIV (Pre-Retirement Verification) Form

OTRS will send you a retirement estimateSlide19

OTRS Cont.Retirement Allowance Estimate

Choose OptionSign the EstimateReturn Form 40 to OTRSSend Copy to Personnel OfficeSlide20

OTRS Cont.OTRS Package

Checklist:Retirement ContractForm 80Form 82

Spousal Consent FormDirect Deposit FormTax Information and Tax Allowance FormSlide21

OTRS Cont.Forms 80 and 82

Send to Personnel OfficeNEO Forwards to OTRSAll Other Forms to TORS

Contract and Direct Deposit Require NotaryDeadline First of Month Prior to RetirementSlide22

OTRS Cont.OTRS Direct DepositDirect deposits are posted to member bank accounts on the first working day of each month, unless the first falls on a weekend or bank holiday; in which case, direct deposits will be posted on the last working day of the month.

Always inform OTRS of any address changeSlide23

OTRS Cont.Mandatory Break between Employment and Retirement

A retired member is not eligible to be employed by the public schools of Oklahoma, in any capacity, for sixty (60) calendar days from the retirees last day.Slide24

OTRS Cont.Earnings Limit for Retirees Returning to Work

For a retiree who has returned to work, during the first 36 months of retirement, there are limits on the amount of money a retiree can make per calendar year from a member institution.Under Age 62, the limit on allowed earnings is $15,000.00Over Age 62, the limit on allowed earnings is $30,000.00Slide25

OTRS Cont.Early Retirement Reduction:(i) 55 – 52.16%

(ii) 56 – 57.06%(iii) 57 – 62.47%(iv) 58 – 68.46%(v) 59 – 75.12%

(vi) 60 – 82.53%(vii) 61 – 90.78%(viii) 62 – 100.00%Slide26

OTRS Cont.Retirement Plans available through OTRS:4 Options Available through OTRS

Will select an irrevocable option upon retirementMaximum OptionOption 1Option 2

Option 3Option 4Slide27

OTRS Cont.

Maximum Option Highlights:Largest retirement benefit. 100% of the retirement formula.Client Account balance is depleted by lump sum amount if PLSO elected, then monthly by the gross retirement benefit.

Without PLSO, the Client Account balance may last 2-3 years.The monthly retirement benefit will cease at death, and any remaining account balance will be paid to the beneficiary(ies)Slide28

OTRS Cont.Option 1 Highlights:

Monthly benefit is slightly less than maximum option.Client Account balance is depleted by lump sum amount if PLSO is elected, and then depleted more slowly by an annuity amount.Without PLSO or EESIP, the account may last 11+ years.

The monthly retirement benefit will cease at death, and the remaining account balance will be paid to the beneficiary(ies)Slide29

OTRS Cont.Option 2 Highlights:

(100% joint survivorship for sole annuitant)The least monthly benefit for the client and greatest benefit to the joint annuitant (the younger the annuitant, the lesser the monthly retirement benefit). Joint annuitant will continue to receive the same lifetime monthly benefit (100% joint survivorship) upon death of client

Joint annuitant is designated at retirement and is not eligible to change, but a different person may be named to receive the $5000 survivor benefit…Slide30

OTRS Cont.

Option 3 Highlights: (50% joint survivorship for sole annuitant)Monthly benefit is not reduced as much as it is for Option 2Joint annuitant does not have to be client’s spouse or within 10 years of the client’s age; however, the younger the annuitant, the lesser the client’s monthly benefit.

Joint annuitant will continue to receive one half (50% of the monthly retirement benefit for the rest of joint annuitant’s life upon death of the client.Joint annuitant is designated at retirement and is not eligible to change, but a different person may be named to receive the $5000 survivor benefit…Slide31

OTRS Cont.

Option 4 Highlights:Monthly benefit for client is less than amount under the Option 1 plan, but the beneficiary amount is usually greater.If client dies within 120 months of the retirement date, the beneficiary continues to receive the client’s monthly benefit until the 120

th monthly retirement benefit has been paid. If client lives 10 years, no balance is left for beneficiary. If beneficiary dies before client and before the 120th retirement payment, a different beneficiary may be listed to receive the balance of the 120 retirement payments. Slide32

OTRS Cont.

Questions about OTRS or for Retirement Estimate Contact:Oklahoma Teachers’ Retirement System

PO BOX 53524 Oklahoma City, OK 73152Telephone: (405) – 521-2387

Toll free #: (877) – 738-6365

Location:

Oliver Hodge Building

2500 N. Lincoln Boulevard

Oklahoma City, OK Slide33

TIAA-CREF Retirement

Do you have a 403(b) or 457(b)?Inform TIAA-CREF or applicable vendor of Retirement DateTIAA-CREF Sends Packet

Contract OptionsDirect Deposit AuthorizationInstructions Final premium notice by NEOEmployer Authorization formReturn to TIAA-CREFSlide34

TIAA-CREF RetirementQuestions about 403(b) or 457(b) Contact:

TIAA-CREF 730 Third Avenue New York, NY 10017

(800) 842-2776Slide35

Retiree InsuranceBlueCross BlueShield Health Plan

Pre-Medicare (Under 65)Plan 65 Medicare Supplement & Part D Prescription plan (65+)OTRS Premium Credit

OTRS Credit applied to bill from BursarCredit is determined by OTRS and ranges from $100-105.00 per month.Slide36

Retiree Insurance

Healthcare, Dental, VisionComplete BCBS health formsOver age 65 – complete health forms 90 days prior to retirement date

State Retiree Election for Dental and VisionContinue current coverage onlyCannot add later if declinedCancel at any timeMedicare

Apply for Medicare part B card 90 days prior to retirement date if you are 65 or olderSlide37

Health Care Premiums

For applicable BCBS Health Insurance premiums, please refer to current rate sheet available in Human Resources. Plan 65 packets are available for those who are Medicare eligible.See Monthly Premiums for Current Employees for Plan Year January through December.Slide38

Dental and Vision Premiums

For applicable Dental & Vision premiums, please refer to current rate sheet available in Human Resources.Health Choice & VSP plans have the most providers locally here in Miami, OK.Direct Bill – Mailed around the 3rd

of each month, due by the 20th.Bank Draft – Forms available online OSEEGIB:EGID after first billing cycle.Slide39

NEO Life InsuranceNEO-Paid Coverage - $10,000Conversion Coverage Option

ING Employee Benefit – You Pay Whole Life PolicySlide40

NEO Life InsuranceING Voluntary Coverage – PortabilitySupplemental Employee and Dependent Coverage

“Port” – Term Life at NEO Group RatesContact: Rachel Stetzer, ING (888) 238-4840Slide41

Oklahoma Teachers’ Retirement SystemOTRS Retiree Life Insurance

OTRS Retirees - $5,000OTRS Pays Premium OTRS beneficiary electionSlide42

NEO Retiree BenefitsNew Retiree ID CardSee Campus Police for new retiree ID

Slide43

NEO Retiree BenefitsNEO Email - Information TechnologyAthletics Tickets

Student Activities CenterSlide44

I’M HERE TO HELP!BE SURE TO SCHEDULE AN APPOINTMENT WITH ME FOR COMPLETION OF ALL NECESSARY RETIREMENT PAPERWORK NO LATER THAN 90 DAYS PRIOR TO RETIREMENT DATE.

120 DAYS IS GREAT!Contact the Human Resources Department for a listing of current Insurance premiums or further details regarding applicable plans when approaching retirement.Slide45

HAPPY RETIREMENT !!

For more information:NEO Human Resources - Phone: 918-540-6378

NEO Human Resources web site: www.neo.eduNEO Retirement Program Guide & CalculatorOTRS plan resources: www.trs.state.ok.us

or 1-877-738-6365TIAA-CREF resources: www.tiaa-cref.org or 1-800-842-2776