Retirement 2016 Process

Sick and Converted Sick Prior to After 1/4/2014 Program I Program II Program III

O HB 213 Program I, effective 4/16/06 O Sick and Converted sick leave was to be used for Months of Insurance, No payout of Converted Sick unless you terminate O HB 194 Program II, effective 4/2006 – 1/2014 O Hours are used for a Health Reimbursement Account (HRA Dollars) O Current Sick Program III, O Hours have no Retirement value O But great for the unexpected Retirement History

Program I 25% goes into your 401K 75% goes for your Months of Insurance

Program II 25% goes into your 401K 75% gives you $’s in a Health Reimbursement Account (HRA)

Program III 100% sick leave is Use/Lose No Benefit at Retirement -- But wait if you get sick you don’t want to use your old sick ….so SAVE!!

Process O Request a Retirement Estimate O UDOT Retirement Processing O Excel Spreadsheet O Employee makes decisions about voluntary 401(k) contributions O Pay stub simulation to determine tax liabilities O Calculate months of insurance for retiree and/or family O Determine $’s to HRA (Health Reimbursement Account) O Employee signs off with URS & PEHP O Retirement benefit begins

Retirement Benefit Estimate How to Calculate

Retirement Planner: Benefits By Year of Birth You can retire any time between age 62 and full retirement age. However, if you start benefits early, your benefits are reduced a fraction of a percent for each month before your full retirement age.

Employee Check List

Exit Paperwork O Employee / Supervisor check off O Voluntary Termination Form O Retirement Award Form $ O URS & PEHP Exit Forms O UDOT Exit Survey O Reminder to close UPM Performance Review O 401k and/or 457 Investment Form O Are you or have you been Military (Tri-Care)

Benefits at Retirement

Retiree shares in Medical cost (Approx.)  32% Preferred  10% Advantage & Summit  STAR plans State will still Contribute twice a year to the HRA until your 2006 sick leave ends or 65 whichever comes first. Retiree covers full cost (COBRA) Dental & Vision Retirees (3mo prior) prior 65 Sign up for Medicare !!! Spouse already 65 must sign up even if they have continuation of benefits $25,000 Term Life Coverage to age 65 or when Program I 2006 hours end whichever comes first Things to Understand

O Retirees may have their share of coverage cost deducted from their monthly retirement check or HRA or billed directly O All plans could be billed up to 3 months before deductions start O EFT from checking/savings is available on billed plans Premiums Deducted or Billed?

O Coverage changes from group plan to Medicare supplement O Med Sup is effective1 st of month you turn 65 O PEHP enrollment form must be completed O Spouse under 65 stays on group plan (with applicable hours) Retiree’s 65 +

O State paid Term Life coverage of $25,000. to age 65 or when the 2006 hours are exhausted whichever comes first O Optional Term Life may be purchased at 25% of what employee currently carries into retirement at a cost O Example: employee is currently covered at $100,000 he retires: O Based on age and rate per thousand. 25% X $100,000. = $25,000 cost to purchase would be.95 cents per age 55 = $23.75 per month O 25% X $200,000. = $50,000 cost would be $5.10 per age 72 = $ per month Optional Term Life Coverage

Retirement Spreadsheet

WHY RETIRE JANUARY 1 ST ? 401k Rule: You can only put as much money as you have earned in the tax year into your 401k. Your last check will be received in the new tax year (1/15/2016). If you put your hours worked and leave payouts into your 401k it could maximize your 401k. This will increase months of paid up medical and/or HRA dollars.

Employee: #1 No Pay Check $’s to 401k/457 – Lowest Taxes Last Day Worked: 12/31/2015 Retirement: 1/1/2016 Employee:No Check on 1/15/ k:$10, Taxes that were taken out: $1,317.08

80 hrs worked + $200 Service Award -Taxes + $26.00 Match

PROGRAM I PROGRAM II 25% 75%

1136 hrs = 142 mo

Medicare required at mo mo

Retiring anytime after the first of the year, insurance reduced by 36 months “this scenario”

25%75%

Once 65, dependents drop off

QUESTIONS ??? & ANSWERS Power Point found at:

THANK YOU FOR COMING When you are ready to look at options Please contact Laurie Howard or Julie Anderson