1. Saint Paul Public School District
Welcome!
Saint Paul Public School District
Retirement Insurance
Benefits Seminar

2. Saint Paul Public Schools District Retirement Insurance Benefits
Guidelines
Benefits Office
Lynn Burwell
360 Colborne Street
St. Paul, MN 55102
Phone:
Fax:

3. Early Retiree Insurance Policy Description
If you meet the age and length of
service requirements for early retiree
insurance as defined in your
bargaining unit contract, you remain
in the same insurance plan(s) as the
active employee group and the
District contributes towards the
monthly premium.
The amount that the District contributes towards the monthly health insurance premium is a FROZEN amount equal to the dollar amount being contributed towards
health insurance on the date of your
retirement.
Some Early Retirees are permitted to
Switch from single to family coverage* at open enrollment.
If you are allowed to add a dependent
At open enrollment, the frozen District
contribution will change to the dollar amount that was contributed towards
Family coverage on the date of your
retirement.
If you switch from family coverage to
single coverage at open enrollment, you will receive the FROZEN
contribution equal to the amount that
was contributed towards single coverage at the time of your
Bargaining unit contract
language varies as to whether
you may add dependents after
your retirement.
Check your contract language!

4. Qualifying for Early Retiree Insurance (Before Age 65)
The following are examples - see your individual
contract for a comprehensive description of
qualifications.
If you are a Teacher :
Eligible for pension benefits, and
Terminate employment with Saint Paul Public Schools, and
Have completed 15 continuous years of employment with Saint Paul Public Schools
Employed by Saint Paul Public Schools and covered under bargaining unit contract immediately preceding retirement.
Must make application through District procedures prior to the date of retirement.

5. Qualifying for Early Retiree Insurance (Before Age 65)
Continued
The following are examples - see your individual
contract for a comprehensive description of
qualifications.
If you are a Custodian:
Be receiving pension, and
Terminate employment with Saint Paul Public Schools, and one of the following:
Be 55 years old and have completed 25 years of employment, or
Age plus years of service equal 85 or more, or
Completed 30 years of service, or
Completed 20 consecutive years of service with ISD#625.
NOTE: A, B and C can include years of service with the City of Saint Paul.

6. Regular Retiree Insurance (Age 65+) Policy Description
If you are age 65 or over and
meet the length of service
requirements for regular retiree insurance as defined in
your bargaining unit contract,
the District will provide
payment of premium contributions towards a Medicare supplement plan. Please note, the supplement plan will be chosen by District 625.
The District will provide monthly payments up to the amount specified in the chart below. If and when the Medicare supplement plan premiums exceed the District contribution, you will be billed the difference.
If you are an Early Retiree
attaining age 65, the District will provide payment of
premium contributions up to
the amounts listed in the chart below for a Medicare supplement plan selected by the District provided you have met the following conditions:
You have met the length of service requirements specified in your bargaining unit contract
You have remained continuously enrolled in the Early Retiree health insurance plan

7. Regular Retiree Insurance (Age 65+) Policy Description
All Regular Retirees must enroll at their own expense in Medicare Part “B” (medical insurance) to remain in the Regular Retiree health insurance plan sponsored by the District.
Part “A” (hospital insurance) of Medicare is required only if you have earned the coverage by meeting the Social Security withholding requirements.

8. 2011 Early Retiree Monthly Premiums
Job Title
HealthPartners Coverage
Premium
Frozen Contribution
Retiree Pay
Teacher
Single Empower HRA Plan
614.00
704.00
0.00
Single + 1 Empower HRA Plan
1,344.00
1,003.74
340.26
Family Empower HRA Plan
1,569.00
565.26
Single Distinctions II Plan
Single + 1 Distinctions II Plan
1,584.00
580.26
Family Distinctions II Plan
1,837.00
833.26
Single Empower HSA Plan
453.00
Single +1 Empower HSA Plan
1,020.00
16.26
Family Empower HSA Plan
1,184.00
180.26
Clerical
575.00
39.00
1,125.00
219.00
444.00
129.00
459.00
712.00
59.00

9. 2011 Early Retiree Monthly Premiums
Continued
Job Title
HealthPartners Coverage
Premium
Frozen Contribution
Retiree Pay
Custodian
Single Empower HRA Plan
614.00
575.00
39.00
Single + 1 Empower HRA Plan
1,344.00
1,125.00
219.00
Family Empower HRA Plan
1,569.00
444.00
Single Distinctions II Plan
704.00
129.00
Single + 1 Distinctions II Plan
1,584.00
459.00
Family Distinctions II Plan
1,837.00
712.00
Single Empower HSA Plan
453.00
`0.00
Single +1 Empower HSA Plan
1,020.00
0.00
Family Empower HSA Plan
1,184.00
59.00
E.A (Educational
555.00
64.00
Assistant)
1,075.00
269.00
494.00
550.00
154.00
509.00
762.00
109.00

10. Qualifying for Regular Retiree Insurance (Age 65 & Over)
The following are examples - see your individual
contract for a comprehensive description of
qualifications.
If you are a Teacher hired before January 1, 1996:
Be age 65 or older at time of retirement
Eligible for pension benefits, and
Terminate employment with Saint Paul Public Schools, and
Have completed 15 continuous years of employment with Saint Paul Public Schools
Employed by Saint Paul Public Schools and covered under bargaining unit contract immediately preceding retirement.
Must make application through District procedures prior to the date of retirement.

11. Qualifying for Regular Retiree Insurance (Age 65 & Over)
Continued
The following are examples - see your individual
contract for a comprehensive description of
qualifications.
If you are a Custodian hired before July 1, 1996:
Be age 65 or older at time of retirement, and
Be receiving pension benefits, and
Terminate employment with St. Paul Public Schools, and
Hired prior to July 1, 1996, must have 20 years continuous service with the District (employment with the City of St. Paul earned prior or will count toward the 20 year requirement).
Must make application through District procedures to the date of retirement.

12. Life and Dental Insurance
Life Insurance for Early Retirees:
If you meet the eligibility requirements for early retiree insurance as specified in your bargaining unit contract, the District will continue to pay the premium for the basic $5,000 life insurance policy until you attain age 65. At age 65, the District will discontinue paying the monthly premium. You will have the option to convert the basic life insurance policy to an individual policy through Minnesota Life.
The additional life insurance policy is terminated at the end of the month in which you retire. Under COBRA, you have the option to continue the additional life insurance policy, and any optional life insurance coverage you have, at your own expense for up to 18 months. At the end of the 18-month period, you will have the option to convert to an individual policy through Minnesota Life.

13. Life and Dental Insurance
Continued
Life Insurance for Regular Retirees:
If you retire at 65 or older, your basic and additional life insurance policies are terminated at the end of the month in which you retire. Under COBRA, you have the option to continue the life insurance at your own expense for up to 18 months. At the end of the 18-month period, you may convert the life insurance policy to an individual policy through Minnesota Life.
District contribution toward dental insurance is terminated at the end of the month in which you retire. Under state statute, you have the option to continue dental coverage at your own expense indefinitely provided you remain eligible for your public pension and pay the monthly premiums in a timely manner.

14. Severance Pay
Severance Pay is payment for unused sick leave accumulated throughout the course of your employment with the District. To qualify for severance pay you must meet the conditions outlined in your bargaining unit contract.
Two examples are listed below:
Teachers:
Must be 55 terminated from employment with the District, and eligible for pension benefits
Severance amount is calculated by multiplying each day of accrued, unused sick leave by $100.
Maximum severance payable if no notice given prior to retirement (on or after June 15) is $12,500.
Maximum severance payable if notice given prior to retirement (after February 1, 2011 but before June 15) is $15,000.
Severance pay bonus for early notification is $2,500 if resignation form is submitted to Human Resources on or before February 1, 2011 indicating intent to resign at the end of the school year.

15. Severance Pay- Principals
Continued
Principals:
Regular severance pay for principals is a payment of $ per day (maximum payment is $20,000).
Early Notification
For those principals retiring at the end of the school year, a bonus of $2,500 will be awarded if resignation is submitted by March 1, 2011.
Principals who turned in a resignation form by December 1, 2010, will be awarded a $3,500 bonus.
New! You may submit your retirement on-line at

16. Severance Pay - Custodians
Continued
Custodians:
Must be 55 or older OR eligible for pension under “rule of 90”.
Must terminate employment with the District
Maximum severance payable is $18,000. Severance amount is calculated by multiplying each day of accrued, unused sick leave by $100. If notification is less than three months, eligible employees will receive $65 per day (maximum severance of $15,015).

17. Severance Pay Continued
Severance pay is issued within sixty (60) days of your retirement date and/or within the same calendar year as your retirement date. Your severance pay will be transferred to a 403(b) Special Pay Deferral Plan with ING. This plan allows retirees to tax shelter their severance pay. This plan also exempts retirees from having to pay the FICA tax of 7.65%

18. Dependents & Open Enrollment
Who qualifies as a dependent of a retiree?
Spouse of retiree (individual must be married to retiree at the time of retirement)
Children of retiree if they are under age 26.
Grandchildren if they are dependents of retiree at the time of retirement

19. Dependents & Open Enrollment - Continued
What changes can a retiree make during the annual open enrollment period?
If there is a choice of plans available to the active employee population, retirees under age 65 can make changes between the plans available to active employees (for example, they can choose between the HP HRA Plan, HP Distinctions II Plan, and HP HSA Plan).
In some cases, retiree may change to single or family coverage.
Retirees age 65 and older may not move between Medicare-supplement plans unless excluded from the local HMO product.

20. Dependents & Open Enrollment - Continued
Employees Age 65 and Older
If you plan to add your spouse to your insurance coverage through Saint Paul Public schools when you retire, you must add your spouse at Open Enrollment prior to retirement. Otherwise, the only opportunity you will have after retirement to add your spouse is when your spouse loses other group coverage.

21. Continuous Coverage Rule
Prior to Retirement:
Employees who are approved for a leave of absence are not required to continue group medical coverage during the LOA.
Employees who retire at the end of an approved LOA will be able to enroll in their retiree medical plan without having continuous coverage prior to retirement date. Enrollment in the retiree medical plan must be made within 30 days of retirement date.
Employees who retire at the end of an approved LOA will receive the frozen District contribution in effect at date of retirement.

22. Continuous Coverage Rule
Continued
After Retirement:
Employees who retire and qualify for Early Retiree medical insurance may waive participation in the group medical plan if they are covered by another group plan. Proof of other coverage will be required.
Retirees who waive participation in the Early Retiree group plan may enter the plan upon one of the following events: Open Enrolment, Qualified Status Change, or Attaining age 65.
Retirees who waive participation and enter the group plan upon one of the three events listed above will receive the frozen District contribution equal to the amount being paid towards medical insurance at date of retirement.
Retirees may only waive participation at time of retirement. Once a retiree has enrolled in the Early Retiree group plan, the retiree must remain continuously enrolled in order to be eligible for the post-65 group Medicare supplement plan.

23. Thank You We are glad you could attend our seminar!
Please contact the Saint Paul
Public Schools Benefits Office
if you need further assistance