5-4-3 to Retirement

Topics we will be covering today 5-4-3 to Retirement Topics we will be covering today Retirement Income Insurance Benefits Medicare and Your State Health Insurance Return to Work as a Retiree Resources

ORP OPTIONAL RETIREMENT PROGRAM Retirement Income at Retirement ORP OPTIONAL RETIREMENT PROGRAM

Retirement Benefit Your retirement benefit may come from: Teacher Retirement System (TRS) or Optional Retirement Program (ORP) Health Ins.-- Employee Retirement System (ERS) administers the Texas Group Benefits Program (GBP) insurance benefits for eligible retirees

TRS RETIREMENT Normal Age Retirement Early Age Retirement Disability Retirement

TRS Retirement Eligibility for Normal Age Retirement Vested (5 years of service) Age 65 yrs. old or Rule of 80 (age plus years of service equal) Became member prior to September 1, 2007 combination of any age Became member after September 1, 2007 but prior to September 1, 2014 at least age 60 Became member after September 1, 2014 at least age 62

Standard Annuity TRS uses the following formula to calculate a normal-age monthly standard annuity: Average of Highest Five* Annual Salaries (based on creditable compensation) = Average Salary Total Years of Service Credit x 2.3% (multiplier) = Total % Total % x Average Salary = Annual Annuity Annual Annuity ÷ 12 = Monthly Standard Annuity *Grandfathered Members (Tiers 1, 4 and 6) have their standard annuity calculated using the average of their highest three annual salaries. 1. $36,000 – Average of Highest Annual Salaries (using creditable compensation for three or five years, according to your tier)

The standard annuity will be reduced for one or more of the following reasons: you are eligible for early-age retirement, but not normal-age retirement (based on your tier), you are eligible for (based on your tier) and elect the Partial Lump Sum Option (PLSO),other reductions required by law. you elect one of the optional retirement payment plans (Option One, Two, Three, Four, or Five) instead of the standard annuity payment plan,

Optional Forms of Annuity Standard Annuity -100% Option 1: 100 Percent Joint and Survivor Annuity Option 2: 50 Percent Joint and Survivor Annuity Option 3: 60 Monthly Payments Option 4: 120 Monthly Payments Option 5: 75 Percent Joint and Survivor Annuity Note: If your beneficiary deceases before you, you have to notify TRS and they will adjust your Annuity to the Standard Amount (Options 1,2 and 5).

TRS Service Credit Provisions Eligible TRS members may purchase: Limited amounts of eligible service credit (e.g., military time, Out-of-State Service Credit,, ) Previously withdrawn TRS service credit State Sick and or Personal Leave Service Credit The cost of these services are determined by TRS

TRS Service Credit Provisions TRS members with: at least three years of TRS service credit, and service credit with the Employees Retirement System (ERS) for Texas state agency employees can transfer their ERS credit to TRS at retirement (and vice versa).

TRS members with service credit in: other Texas public retirement plans that participate in the Proportionate Retirement Program (certain cities, counties or other governmental entities) TMRS, TCDRS, City of Austin, Austin Police Retirement System, El Paso Fireman and Policemen Pension Fund and El Paso City Employees Pension Fund may combine their credit from all participating plans to qualify for retirement and receive a proportionate annuity from each plan.

TRS Retirement Eligibility and Benefits Death Benefit of $10,000 In lieu of the $10,000 lump sum amount, survivor benefits consisting of a $2,500 lump sum payment plus a monthly payment, are also available according to the following designations: To a beneficiary spouse, $250 per month for life beginning when your spouse reaches age 65 or at your death, whichever is later. To a beneficiary spouse who has one or more minor children, $350 per month, continuing until the youngest child reaches age 18. At age 65, or when the youngest child reaches 18, whichever is later, your beneficiary spouse would begin receiving $250 per month for life. To minor children beneficiaries, $350 per month with two or more children less than age 18, or $250 per month with only one child under age 18. Payments cease when the youngest beneficiary turns age 18.

Ready to Retire Steps that you need to take Contact TRS six months prior to your anticipated retirement date and request TRS Estimate of Retirement or a TRS Retirement Packet (you can choose up to two different dates of retirement). Call request packet at 1-800-223-8778 or go online to www.trs.texas.gov

CLICK HERE

Be sure and check your address and Beneficiary Sally Lumberjack Date of Birth: 07/03/1962 Gender: Female slumberjack@hotmail.com 2301 Lumberjack Lane Nacogdoches, Texas 75965 Be sure and check your address and Beneficiary

ORP Retirement Eligibility Vested after one year and one day Meet the Rule of 80 (age plus years of service) or Age 65 yrs. old

Ready to Retire Steps that you need to take Contact your Vendor six months prior to your anticipated retirement date and request an appointment to sit down and go over your retirement options. You will choose how and when to take distributions, including complete or periodic withdrawals and for some accounts, lifetime annuities. Early withdrawal penalties may apply. Note: ORP Retiree will always have to maintain an ORP Account with an approved Vendor from SFA to qualify for the Health Insurance.

ORP Retirement Benefits There are no provisions in ORP to: purchase service credit transfer or roll over non-ORP funds into the plan (including any pre-election TRS contributions), or take out a loan or financial hardship withdrawal

Insurance Benefits at Retirement

Insurance Eligibility Criteria to meet: Vested in your Retirement (TRS or ORP) and meet the Rule of 80 or age 65 At least 10 years with a GBP agency Last place of public employment must be a GBP agency An ORP account (ORP members only) Your Benefits Coordinator determines your eligibility

Retiree Insurance Premium Grandfathered Employee: To be considered a Grandfathered Employee you had to be enrolled in Health benefits for 5 service years on September 1, 2014 with an agency that participates with the GBP. 10 years of Health Insurance - 100% If not grandfathered, the state contribution is based on your years of service with an agency that participates in the GBP: 50% with 10 up to 15 years 75% with 15 up to 20 years 100% with 20 or more years

Coverage Start Date Coverage for retiree health insurance: Starts first of the month following your last date of employment, if you have met Normal Age or Disability Retirement requirements

Health Insurance at Retirement Before Age 65 No waiting period for health insurance or optional coverage Automatically Enrolled in Health Select of Texas Sign up for Medicare Part A and Part B Automatically enrolled in HealthSelect Medicare Advantage and HealthSelect Medicare Rx Health Insurance when you turn age 65:

Medicare and Your State Health Insurance Medicare Advantage This will be your Primary Insurance. This card should be given to your Medical Providers. Medicare Part A & B is still active but you will not provide this to your Medical Providers. Medicare Advantage will file your Medicare A & B insurance for you. HealthSelect Secondary Medicare Part A & B are your Primary Insurance and HealthSelect will be your secondary insurance. Both cards should be given to your Medical Providers. HealthSelect Medicare RX This will be the prescription drug coverage for both plans.

Health Insurance at Retirement age 65 or more Medicare Part A (if you have not already) Medicare Part B No waiting period health insurance or optional coverage Automatically enrolled in HealthSelect Medicare Advantage and HealthSelect Medicare Rx

At This Time: ERS allows the option to OPT OUT of Medicare Advantage Plan and elect to go with HealthSelect Secondary of Texas. If this is what you choose to do, you will need to contact ERS directly at 1-877-275-4377. This process will also happen to a dependent (spouse) on your insurance that turns age 65 and you will have to go through the same process to change them as well. NOTE: If this option is chosen, you will have to remain in Humana Medicare Advantage for one month (29 days) and then ERS will switch you to HealthSelect Secondary.

Retiree Coverage Options You have 30 days to make changes on your Retiree Insurance Enrollment Statement. Basic Life ($2,500) Dental Vision Optional Term Life – Elections 1 and 2 (reduces starting at age 70 and every 5 years there after) or $10,000 Fixed Optional Life Dependent Term Life – ($2,500) TexFlex – COBRA Note: If you decease before your dependent(s), they will receive Cobra paperwork to continue coverage but we will no longer pay a portion of their health insurance cost.

Return To Work Retiree How it will affect your Retirement Income ORP RETIREE: You are eligible to return to work the next day. No waiting period required. The ORP Retirement that you have setup with your Vendor is not affected by returning to work. TRS Retiree: You have two options to return to work after a 30 day waiting period or after a one year waiting period. 30 day break: as long as you work no more than 50% it will not affect your Retirement Annuity. However if you go over 50% any amount of time it will affect your Retirement Annuity. TRS looks at the number of hours available in a month to month bases. One year break: If you have a full one year break you are allowed to return to work without affecting your Retirement Annuity.

Health Insurance Coverage Return To Work Retiree Health Insurance Coverage Retiree age 65 or older, returns to working 50% or more then Health Insurance coverage makes a major change. If you are enrolled in HealthSelect Medicare Advantage this insurance goes away and you are enrolled in HealthSelect of Texas Secondary and it becomes your primary payor and Medicare Part A and B becomes secondary payor. If you are enrolled HealthSelect of Texas Secondary this insurance becomes primary payor and Medicare Part A and B becomes secondary payor. Once employment ends as a Return to Work Retiree (RTW) then your insurance reverts back to automatically enrolling you in Medicare Advantage plan. For those that want to be in HealthSelect Secondary of Texas you will have to go back through the process of contacting ERS and opting out and electing the HealthSelect Secondary of Texas. Remember you will have to be in Medicare Advantage Plan one month before you can be switched over.

Summary of what needs to be done for Retirement TRS Retiree send off for your retirement packet approximately 6 months before Retirement date. ORP Retiree schedule appointment with your ORP Vendor approximately 6 months before your Retirement date. Call HR Department and schedule an appointment 2 months before your retirement date to review/finalize your Retirement Packet and complete paperwork for your Health Insurance with ERS. TRS could take up to 60/90 days to complete your retirement process and for you to receive your first annuity check. Contact Social Security for Medicare Part A & B and your Social Security Retirement.

BENEFITS CONTACT INFORMATION Barbara Hunter hunterbg@sfasu.edu 936-468-3978 Or Aleta Spivey spiveyam@sfasu.edu 936-468-1098

Resources Human Resources – Power Point Presentation (in April 2018) http://www.sfasu.edu/hr/631.asp TRS - https://www.trs.texas.gov TRS HANDBOOK, January 2018 - https://www.trs.texas.gov/TRS%20Documents/benefits_handbook.pdf ERS - https://www.ers.texas.gov Click on the Retiree Tab - Scroll to bottom of the page to find information about health, prescriptions, dental, vision and all optional benefits and additional links. Blue Cross/Blue Shield - https://healthselect.bcbstx.com/ Social Security - https://www.ssa.gov/ BENEPLACE (for employee discounts) - http://www.beneplace.com/home.jsp?Client_UserId=67759720