1. Early Retirement Window And Information Session
Welcome!
Early Retirement Window
And Information Session
Himanshu Parikh, Acting Chief Human Resources Officer
Stephanie Brandt, Employee Benefits Manager II
June 7, 2017
5:00 – 8:00 p.m.
©2015 Milwaukee Public Schools

2. Early Retirement Window 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

3. Early Retirement Window 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

4. Early Retirement Window Pensions
No change in retirement age provision for pension benefits under:
Wisconsin Retirement System for Certificated employees (WRS)
City of Milwaukee – Employes’ Retirement System for Classified employees (ERS)
MBSD Supplemental Early Retirement Plan for Teachers (SERP)
MBSD Early Retirement Supplement and Benefit Improvement Plan (ERSBIP)

5. Early Retirement Window Next Steps
Visit the website at to access this presentation, Q&A and additional information
Retirement Information Sessions
Pensions and Benefits pre-retirement planning seminars

6. Early Retirement Window 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

7. Early Retirement Window 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

8. Early Retirement Window Retiree Health Insurance Eligibility (cont’d)
A Year of MPS Service is defined as follows:
Full-time employment.
Part-time employment, 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.

9. Early Retirement Window Retiree Health Insurance Eligibility (cont’d)
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 for only the following:
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.

10. Early Retirement Window 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.

11. Early Retirement Window 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

12. Early Retirement Window MPS Retiree Health Insurance Current employee contributions per pay period Based on 1/1/17 – 12/31/17 rates
Annual Base Salary
Coverage
PPO%
PPO Employee Deduction
EPO%
EPO Employee Deduction
HDHP%
HDHP Employee Deduction
$25,000 or under
Single
11%
$45.67 5%
$21.48 2%
$8.03
Family
$107.35
$50.49
$18.65
$25,001 - $50,000
12%
$49.83 8%
$34.37
$20.08
$117.11
$80.79
$46.62
$50,001 -$75,000
13%
$53.98
10%
$42.97 7%
$28.12
$126.87
$100.99
$65.26
$75,001 and above
14%
$58.13
$51.56 9%
$36.15
$136.63
$121.19
$83.91

13. Early Retirement Window 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
Board’s Share EPO
Average PPO/EPO “Board Credit”
Single
$692.02
13%
$602.06
$716.09
10%
$644.48
$623.27
Family
$1,626.59
$1,415.13
$1,683.14
$1,514.83
$1,464.98

14. Early Retirement Window Retiree Health Insurance Monthly Premiums
Example with current rates for employee in the $60,000 salary contribution band – 2017 Rates:
Coverage Type
Monthly Premium Rate
“Board Credit”
Retiree Pays
Single PPO
$687.58
$623.27
$64.31
Single EPO
$711.65
$88.38
Single HDHP
$665.04
$41.77
Family PPO
$1,615.82
$1,464.98
$150.84
Family EPO
$1,672.37
$207.39
Family HDHP
$1,543.07
$78.09

15. Early Retirement Window 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
Employee Contr. Percent EPO
Board’s Share EPO
Average PPO/EPO “Board Credit”
Single w/Medicare
$228.30
13%
$198.62
10%
$205.47
$202.05
Couple both w/Medicare
$456.60
$397.24
$410.94
$404.09

16. Early Retirement Window 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.

17. Early Retirement Window Retiree Health Insurance Monthly Premiums
Self-paid retirees – Separately rated premiums that are no longer blended with actives for rating purposes.
HEALTH PLAN (Does not include Vision)
UnitedHealthcare
PPO Plan
EPO Plan
HDHP
Single
$1,118.84
$1,152.41
$1,100.49
Family
$2,237.68
$2,304.81
$2,196.72
Couple, One
w/Medicare
$1,347.14
$1,380.71
$1,328.79
Family, One
$1,324.53
Family, Two
$738.39
$748.26
$706.65

18. Early Retirement Window 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.

19. Early Retirement Window 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.

20. Early Retirement Window 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 1st ).
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.

21. Early Retirement Window 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) 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.

22. Early Retirement Window 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.

23. Early Retirement Window 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.

24. Early Retirement Window 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:
Employee last name beginning H-O:
Employee last name beginning P-Z:
Your MPS representative for Life Insurance:
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.

25. Early Retirement Window 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

26. Early Retirement Window 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#

27. Early Retirement Window MPS Retiree Life Insurance Eligibility
Your retiree life insurance benefit will be reduced as follows as of the March 1st that falls on or next follows your birthday:
Age % of amount in force at your retirement date % %
% 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.

28. Early Retirement Window 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 (non-elective) 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
The 2017 calendar year Internal Revenue System (IRS) limits are:
Employee limit is $18,000
Employer limit is $54,000 less employee contributions
The overall limit is the lesser of 100% of your includible compensation (determined over the most recent year of service) or $54,000
You avoid paying the 7.65% employee Social Security and Medicare tax
MPS avoids paying the 7.65% employer Social Security and Medicare tax

29. Early Retirement Window 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 working days after you sign the necessary paperwork with your 403(b) vendor.

30. Early Retirement Window 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

31. EarlyRetirement Window 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.

32. Early Retirement Window MPS 403(b) Plan and the Wisconsin Deferred Compensation 457 Plan
Is a tax-sheltered annuity plan
Allows you to make voluntary pre-tax contributions and/or after-tax ROTH contributions to the 403(b) plan through MPS payroll.
You may contribute to:
(a) 403(b)(1) - an annuity contract,
(b) 403(b)(7) - custodial account which is invested in mutual funds
You must contact an approved MPS 403(b) vendor to start or make changes to this plan. Contact information is available on the Benefit Providers Contact Information List which can be located by typing Benefits Providers Contact Information in the search engine on mConnect.

33. Early Retirement Window MPS 403(b) Plan and the Wisconsin Deferred Compensation 457 Plan
457 PROGRAM
Allows you to make voluntary pre-tax contributions and/or after-tax ROTH contributions to the 457 plan through MPS payroll
Upon withdrawal the contributions and earnings are subject to federal and state income taxes
Wisconsin Deferred Compensation program is administered by and funds are held in trust by the State of Wisconsin -Employee Trust Funds (ETF). Great-West Retirement Services is the ETF appointed service provider

34. Early Retirement Window Need More Information on Retiree Benefits and the Early Retirement Window?

35. Early Retirement Window 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 403(b) and 457 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.
Date of Seminar: March 2016

36. Early Retirement Window and Information Session
Milwaukee Board of School Directors
MPS Senior Team
Mark Sain, District 1, President Larry Miller, District 5, Vice President Wendell J. Harris, Sr., District 2 Michael Bonds, Ph.D., District 3 Annie Woodward, District 4 Luis A. Báez (Tony), Ph.D., District 6 Paula Phillips, District 7 Carol Voss, District 8 Terrence Falk, At-Large
Darienne B. Driver, Ed.D., Superintendent Gina Spang, P.E., Chief of Staff Tonya Adair, Chief Innovation & Information Officer Ruth Maegli, Chief Academic Officer Himanshu Parikh, Acting Chief Human Resources Officer Keith Posley, Ed.D., Chief School Administration Officer Wendell Willis, Chief Operations Officer Sue Saller, Manager, Superintendent’s Initiatives Ashley Lee, Special Assistant to the Superintendent