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Retirement Incentive Program 2009 An overview for SERS participants May 2009 1.

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Presentation on theme: "Retirement Incentive Program 2009 An overview for SERS participants May 2009 1."— Presentation transcript:

1 Retirement Incentive Program 2009 An overview for SERS participants May 2009 1

2 Agenda Retirement Incentive Program – Eligibility Requirements – Program Features – Decision Criteria SERS Pension Options Retiree Health Insurance Retiree Life Insurance Additional Information – Retirement Website – Retirement InfoLine Q & As 2

3 Eligibility Requirements Age 55 or older on or before June 30, 2009 10 years of actual state service – Not prorated for part-time employees (date to date) – Does not include purchased service Hazardous duty - Any age after 20 years of actual hazardous duty service Must immediately commence SERS benefit 3

4 Program Features Employee choice of June 1, 2009 or July 1, 2009 retirement date SERS calculation: 3 years added to credited service Modified payout schedule for accruals – Paid in 3 installments in July 2012, 2013 and 2014 – State option: lump sum on or before July 1, 2012 if accrual is less than $2,000 Retiree health – Eligibility for Preferred Plan – Prescription drug copays: $3 generic/$6 brand name 4

5 5 Decision Criteria Can I afford to retire? –Income sources in retirement –Expenses in retirement Am I ready to retire? –Consideration: how you will spend your days –Stricter rules on re-hired retirees 5

6 Pension Payment Options Straight Life – Highest benefit for you for your lifetime – No benefits payable after your death – Health benefits cease for spouse/dependents after retiree death 50% Spouse – 50% of your pension benefit continues to your spouse after your death – Spouse/dependents eligible to continue on health plan 50% or 100% Annuitant – Percentage of your pension payable to your designated annuitant after your death 10 or 20 Year Period Certain – Pension benefit guaranteed for 10 or 20 years – Balance payable to annuitant(s) should you die prior to 10 or 20 years – Only option that allows for multiple annuitants 6

7 7 Choosing a Payment Option Married participants –Must select 50% or 100% option unless spouse waives right –Must select 50% or 100% option for spouse to continue on health plan after death of retiree Reductions for 50% and 100% option based on age of spouse/contingent annuitant Only the 10 and 20 year certain options allow for multiple contingent annuitants Cost analysis –Life expectancy –Finances 7

8 Retiree Health Insurance Coverage effective one month after retirement – Remain in employee health plan first month of retirement Plan designs generally same as those offered to active employees – Make election at retirement and during annual open enrollments Medicare-eligible participants – Must enroll in Medicare Part B, cost reimbursed – Need to provide Medicare with proof of creditable coverage to avoid late entrant penalty – Medicare Part D enrollment unnecessary 8

9 9 Retiree Life Insurance Provided to employees enrolled in basic life insurance at retirement Amount of coverage based on years of service – 25 or more years of service, 50% of basic amount – Prorated if less than 25 years of service No cost to retiree

10 Retirement Website 10 A Guide to Retirement Benefits – Overview of retirement benefits and processes Retirement Application Information – Form needed to initiate retirement paperwork Retirement estimates – Do-it-yourself pension estimating info Retirement Forms and Checklist SERS Summary Plan Descriptions

11 11 Retirement InfoLine 11 (860) 486-6544 Dedicated line for retirement questions Calls answered within 24 hours (M-F, workdays)

12 12 Next Steps Make timely decision –Provide supervisor/management with as much notice as possible –Provide HR with Application Information as soon as possible –Paperwork must be submitted prior to retirement date Print forms from retirement website –Take notice of forms requiring notarized signature Attach required proof –Birth certificate (you, spouse, dependent children) –Marriage certificate, if married –Medicare Part B card, if Medicare-eligible Attend sign up session

13 Retirement Incentive Program Questions and Answers For additional questions Retirement Website (>Benefits>Retirement) Dedicated telephone number (860) 486-6544 13

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