1. Reaching Retirement with RSA-1

2. Decisions & Your Retirement
2018 RSA-1 Presentation - TRS Early to Mid-Career Seminar
Decisions & Your Retirement
Dreaming about retirement is fun, but are we making the right decisions and saving enough money to make our retirement dreams become reality?

3. Sources of Retirement Income
Your monthly TRS Pension Benefit
Social Security
A Personal Savings Plan
RSA-1
could be your Personal Savings Plan.

4. Topics To Be Covered Explanation of RSA-1 Deferred Compensation Plan
Steps to opening an RSA-1 account
Making Withdrawals from RSA-1 after retirement.
Comparison of Tier 1 and Tier 2 pension benefits
Importance of RSA-1 enrollment for Tier 2 retirees
The power of compounding interest and importance of starting retirement savings early

5. What is RSA-1 and How Does it Work?
RSA-1 is a voluntary Governmental Defined Contribution Plan. The plan is based on Section 457(b) of the IRS and authorized by the Code of Alabama.
The plan enables you to set aside a portion of your salary today to save for your retirement tomorrow.
RSA-1 contributions are not taxable for federal or state of Alabama income tax withholding, which directly reduces your tax liability.

6. Additional Benefits of RSA-1
If eligible to purchase permissible service credit, you may use money in your RSA-1 account to purchase that service.
Accepts transfers from other employer-sponsored 457(b) plans
Retirement Savers Credit*
*Eligible tax credit is based on your Adjusted gross Income (AGI).

7. RSA-1 Has NO FEES! No membership fees No investment fees
No administrative fees
No membership fees
No investment fees
No transaction fees
No commission fees
The administrative cost for the operations of the RSA-1 Deferred Compensation is provided from the expense of the Employees’ Retirement System and Teachers’ Retirement System.

8. Who can participate in the RSA-1?
RSA-1 participation is open to any member of:
the Teachers’ Retirement System (TRS);
the Employees’ Retirement System (ERS);
or any public service employee .
You can join RSA-1 at any time!

9. Opening Your RSA-1 Account is Easy!
Complete the following forms found in the back of the RSA-1 Member Handbook that is available for you today!
Plan Enrollment Form - mail to the RSA
Beneficiary Designation - mail to the RSA
Investment Option Election – mail to the RSA
Authorization to Defer Compensation - give to payroll

10. 2018 RSA-1 Presentation - TRS Early to Mid-Career Seminar
Investment Options
Bond Fund
Majority Corporate & Governmental Bonds
Stock Fund
S&P 500 Index Fund
Short Term Investment Fund (STIF)
Mix of securities; U.S. Treasury bills & notes
Members may change their Investment Option Election (IOE) once every 90 days.

11. Investment Decisions
Dr. Bronner and the RSA Investment Staff do the investing for the RSA-1 Plan… … the same expert investment team that invests your regular TRS retirement monies!

12. Maximum Contributions to RSA-1
Under Age 50
$18,500 for calendar year 2018
Age 50 & Over
$24,500 for calendar year 2018
Catch-Up Prior Year Unused Deferrals
$37,000 - Three years prior to Normal Retirement Age (NRA)

13. Making Withdrawals from RSA-1
Separation of service, regardless of age
Retirement
Termination of Employment
Distributions are Not required until age 70 1/2

14. Distribution Options at Separation of Service from RSA-1
Lump Sum
Partial Lump Sum
Equal Monthly or Equal Annual Payments
Delay distribution of RSA-1 monies until age 70 ½.
*70 ½ Distribution may be delayed until April 1, following the year you attain age 70 ½.

15. Keeping Track of Your RSA-1 Account
2018 RSA-1 Presentation - TRS Early to Mid-Career Seminar
Keeping Track of Your RSA-1 Account
RSA-1 account statements are issued quarterly.
Monthly returns are posted on the RSA website.
View your RSA-1 account online.

16. What Agency HR /Payroll Can Do:
2018 RSA-1 Presentation - TRS Early to Mid-Career Seminar
What Agency HR /Payroll Can Do:
Request an RSA-1 presentation
Encourage new hires to take advantage of the benefit of contributing to RSA-1.
Know that RSA requires original documents for any forms that need to be notarized.
Submit Enrollment forms before
before submitting the employee
deferrals.

17. Do I have Tier 1 or Tier 2 retirement?
Any member who began eligible employment with a participating RSA agency prior to January 1, 2013
Member Contribution Rate
7.5%
Any member who began eligible employment with a participating RSA agency on or after January 1, 2013
Member Contribution Rate 6%

18. Pension Benefit Comparison
Tier 1 (Benefit factor: %)
Tier 2 (Benefit factor: 1.65%)
An RSA member who retires at age 62 with an average final salary of $65,000 and 25 years contributing membership service will draw a maximum annual retirement benefit of $32,700.
Eligibility to retire is defined as 10 or more years at age 60 or 25 years at any age.
An RSA member who retires at age 62 with an average final salary of $65,000 and 25 years contributing membership service will draw a maximum annual retirement benefit of $26,800.
Eligibility to retire is defined as 10 or more years at age 62.

19. Tier 2 Retiree Deficit Over Time
1 year
$ 5,900
5 years
$ 29,500
10 years
$ 59,000
15 years
$ 88,500
20 years
$118,000

20. The Power of Compounding Interest
Start saving at age 25 deferring $100 every month, at age 55 your savings could amount to $100,451.50*.
Start saving at age 30 deferring $100 every month, at age 55 your savings could amount to $69,299.40*.
Saving for retirement at any age is a good thing, but starting to save earlier is better!
*Assumes a 6 % rate of return

21. The Power of Contributing Early
Years to Grow:
Monthly Contribution: $100
Total Investment: $30,000
*Future Value: $69,299
*Assumes 6% rate of return
Years to Grow:
Monthly Contribution: $238
Total Investment: $42,840
*Future Value: $69,214
*Assumes 6% rate of return

22. Pay Yourself First!
Get more RSA-1 information on our website: Call RSA-1: or RSA-1:

23. 2018 RSA-1 Presentation - TRS Early to Mid-Career Seminar
Questions?

24. 2018 RSA-1 Presentation - TRS Early to Mid-Career Seminar
RSA-1 COMMON QUESTIONS
Q: Can I contribute after retirement?
A: Only If you go to work after you retire part-time and are working for a TRS or ERS participating Agency
Q: Is there a minimum contribution?
A: No
Q: What happens to my RSA-1 account at my death?
A: Distribution is paid directly to you designated beneficiary.