Presentation on theme: "State of Delaware Office of Pensions"— Presentation transcript:
1 State of Delaware Office of Pensions Website:Address:Phone: (302)Toll Free: (800)Fax: (302)
2 Current Statistics (as of 6/30/2008) 22,400+ RetireesClosed Plan 360New Plan 4542,400+ Active EmployeesClosed Plan 10New Plan 651$7.1 Billion - Delaware Public Employees’ Retirement System (9 pension plans, 3 post-retirement trusts, 1 investment pool)New Plan $216 millionOVER 100% FUNDING RATIO
3 Service Pension Benefit 20 years of credited service.Age 55 with at least 10 years of credited service62 years of age with at least ten years of credited serviceyour age plus years of credited service (at least ten years service) equals 75Equalized State Service
4 Vested Pension Benefit 10 years of creditable servicePayable the 1st month following your 62nd birthday
5 Lag PayrollPension benefits are deposited at the end of the next month following the effective date.The first deposit will include two months of pension benefits.Every deposit thereafter will be for one month of pension benefit.
6 Beneficiary vs. Survivor A beneficiary named on the back of the Employee Actuarial Information Form (Form P-2) receives a lump sum distribution of employee-paid pension contributions, plus interest, in the event there is no eligible survivor.A survivor is a person eligible to receive a monthly pension benefit in the event that the employee passes away.
7 Eligible survivors are... husband or wife, provided that such person was married to you prior to your retirement or married to you at least one year prior to your death (unless death was due to accident);child/children under age 18, unmarried, and if between the age of 18 and 22, a full time studentdisabled child (disabled prior to age 18)dependent parent(s)
8 Survivor BenefitsPayable to an eligible survivor at 50% of your pension benefit.If active, 50% of your monthly compensation.
9 DISABILITY BENEFITS TOTAL SERVICE CONNECTED 75% TOTAL NON-SERVICE CONNECTED 50%PARTIAL SERVICE CONNECTED 50%PARTIAL NON-SERVICE CONNECTED 30%
10 Health InsuranceHealth benefits are available with the “State share” being covered by the Pension Office for employees first hired prior to and for disability pensioners.
11 Health InsuranceFor employees first hired on or after , the following portion of the “State share” will be paid by the Pension Office:less than 10 years 0%10 years - 14 years 11 months 50%15 years - 19 years 11 months 75%at least 20 years 100%
14 Changes in Health Insurance Changes in coverage can be made once a year during the reopening period in May.Life changing events allow a change in coverage.Changes in coverage must be made when turning age 65.Medicare Parts A and B becomes the primary coverage through Social SecurityPension Office provides supplemental insurance
15 Prescription Coverage Medco is the nation’s leading prescription drug benefit management company.The benefits as a retiree under this program are the same as those extended to active State of Delaware employees.Most health care plans are coupled with prescription plan coverage, but again, you need to review your choices carefully when you enroll at retirement.
16 Medicare Part D Effective 1/1/06 for retirees & dependents over age 65 Prescription drug coverage through the State of Delaware is, on average, at least as good as the Medicare Part D Standard programNo action is required to continue your coverage through the State of DelawareWill receive a “Certificate of Creditable Coverage” from the State of Delaware
17 Dental InsuranceThe same dental plans are available to retirees as are available to active employees.Current Dental Insurers:Dominion DentalUnited ConcordiaThe retiree is responsible for the entire cost of dental coverage. The State pays NO state share of dental coverage.
19 Group Death Benefit $7,000 Benefit - no cost to retiree May list one or more individuals as a beneficiaryAmount divided equally among beneficiariesCan designate primary and contingent beneficiariesMay change beneficiary(ies) by completing a Change of Beneficiary Form (Form GL-2)
20 Minnesota Life Insurance Minnesota Life Insurance became available 1/1/2003 for active employees who wanted to maintain their Group Universal Life Insurance after retirement.You must have enrolled in the Plan prior to retirement.You must pay the premiums directly or have them deducted from your checking/savings account. We will not deduct the premium from your pension benefit.
21 Direct Deposit Mandatory for pensions effective January 1, 1996 Copy of voided check, deposit slip, or bank statement needed to verify account information for all accounts to which a direct deposit is made
22 Credit Union Deduction Deduction will be made and sent to the Credit Union designated.Employee must contact the Credit Union to specify which account(s) are to be utilized.
23 TaxesPension benefit is taxable by the Federal Government and may be taxable in the state where you liveOnly Delaware state taxes can be withheld from your State of Delaware pension
24 Blood Bank No charge to pensioner When contacted by the Blood Bank: pensioner can donate bloodhave someone donate for thempay for a pint of bloodAt age 75 and older, there is no blood donation obligation
25 Post Retirement Increases PRI is a pension increase received after retirement.Pension law does not provide for automatic increases. Increases are granted upon Legislative approval.
26 Working After Retirement: How it Affects You PENSION BENEFIT – When employed by the State of Delaware, the employment may not be used for further retirement benefits. There are no earnings limits.SOCIAL SECURITY - Earnings limits apply. Check with your Social Security office if you are receiving a Social Security benefit.