Kingsport City Schools Retirement Overview 2018 Human Resources Department

HR Department Overview Jennifer Guthrie Chief Human Resources Officer Debbie Risdon HR Assistant Certified Staff Angie Price HR Assistant Benefits Administrator Debra Depalo HR Assistant Classified Staff Tabatha Graham HR Assistant Administrative Services and Substitutes

WHAT MANDATORY RETIREMENT PLAN AM I PARTICIPATING IN? CERTIFIED CLASSIFIED Hired before July 1, 2014? Hired before July 1, 2012? YES NO YES NO TCRS Legacy HYBRID Combined TCRS and Empower/Great West TCRS ICMA 401(k) “Hire Date” is the date on which you were hired into a certified position in the state of TN. Time in prior districts is transferable. *Breaks in service may effect eligibility in TCRS Legacy. “Hire Date” is the date on which you were hired into a classified position with KCS. Time in prior districts or positions in the state is not transferable.

What Plans Are Available? In addition to a mandatory plan identified on the previous slide, you may be participating in an optional plan or you may want to sign up for an optional plan Optional Plans (employees may participate in these plans in addition to any mandatory retirement plans, but without employer contribution): 401(k) – ICMA or Empower/Great West 457 - ICMA 403(b) – Variety of providers.

TCRS (Legacy) Hybrid ICMA Applicable Employees (Note special conditions may apply for employees transferred between certified and classified positions or re-hired after these dates) Certified hired before July 1, 2014 Classified hired before July 1, 2012 Certified hired as of July 1, 2014 Classified hired as of July 1, 2012 Type of Plan Defined Benefit (pension) through State of TN. Combined plan including both defined benefit (pension through state of TN) and defined contribution (401(k) through state of TN) Defined Contribution plan (401(k)) through City of Kingsport.  Also offers 457 plan. Employee Contribution 5% mandatory for certified No contribution for classified 5% mandatory to TCRS 2% automatic to Empower, but employee can opt-out 5% mandatory into 401(k) (KCS will match an additional 3% at the employee’s option. The employee portion of that 3% is deposited into a 457 account and the employer portion is deposited into the 401(k) account.)

TCRS (Legacy) Hybrid ICMA KCS Contribution Funded for both certified and classified-  amount determined by state of TN.   TCRS: 4% Empower Contribution: 5% regardless of employee participation 5% match to 401(k) Additional 3% match available. Vesting Schedule (applies to KCS contributions only, employee contributions belong to the employee) 5 years TCRS:  5 years Empower/Great West 401(k):  Immediately vested in both employer and employee portion Years of Service         % Vested         0-1                         0%  2                              20%           3                              40%           4                              60%           5                              80%           6                             100%

TCRS (Legacy) Hybrid ICMA Contact Information Tennessee Consolidated Retirement System www.mytcrs.tn.gov 1-800-922-7772 Tennessee Consolidated Retirement System : www.mytcrs.tn.gov Empower/Great West (401 Plan): www.retirereadytn.empower-retirement.com Tim Crawford 1-615-244-1030 ICMA-RC Retirement (401 Plan) http://www.icmarc.org Trey Sizemore 1-800-326-7272 1-800-669-7400 Other Account Information TCRS no longer sends paper statements. Annual statements can be accessed on-line. Any changes should be made on-line.   Mail paper statements or accessible on-line.

Retiree Medical Benefits Two Questions: 1. Am I eligible to receive retiree medical benefits? 2. If so, what are my premiums?

1. Am I Eligible for Retiree Medical Benefits? Pre-65 retirees may be eligible for retiree medical with the state of Tennessee if they meet requirement for creditable service and participation on the state medical plan prior to retirement. Post-65 retirees (age 65 or older) are eligible for medicare and may be eligible for the medicare supplement, POMCO, if they meet eligibility criteria.

1. Am I Eligible for Retiree Medical Benefits? Eligibility for retiree medical benefits from the state of Tennessee. a. Employees hired after June 30, 2015 are no longer eligible for retiree medical benefits with the state of Tennessee due to changes in state law. (Classified employees hired after June 30, 2012 may not be eligible for benefits depending on whether they have an account with TCRS.) i. “Hire date” is determined by the date hired into any position and any status, including certified, classified part time or full time. b. Minimum of 10 years of creditable service in the state of Tennessee. c. Carry medical insurance with the state of Tennessee for a minimum of three years (where service is between 10-20 years) or one year (where service is 20+ years) immediately prior to retirement. d. Must have a retirement account with TCRS.

What Happens When I Turn 65? Retirees become eligible for Medicare and will no longer be eligible for medical insurance through the state of Tennessee. (Active employees at age 65 or over remain on the state health insurance plan until retirement.) POMCO is a Medicare supplement that pays for some cost not paid for by Medicare. This supplement is available to employees hired prior to July 1, 2015 and who have a TCRS retirement account.

2. What Are My Premiums for Retiree Medical? Premiums are set each year by the state of Tennessee. Certified staff have different levels of premiums depending on years of creditable service with the state. Certified Retirees from Kingsport City Schools pay 30% of the state premium if they meet eligibility requirements: Retire from KCS Those hired as of July 1, 2010 must have 10 years of service with KCS in order to receive this credit. Final premium amounts are automatically deducted from your monthly TCRS retirement check.

Other Retirement Benefits: Life Insurance Kingsport City Schools carries life insurance for all eligible retirees at no cost to the retiree This policy is valued at 25% of annual salary at the time of retirement

What Do I Need to Do When I Am Ready for Retirement? Reach out to Human Resources: Certified: Debbie Risdon at drisdon@k12k.com Classified: Debra Depalo at ddepalo@k12k.com If you have a TCRS account, you will need to contact TCRS for a retirement estimate. Applications for retirement with TCRS are now initiated on line. In order to complete an online retirement application, member must first create/log in to their My TCRS account. After logging in, the member will access the Online Retirement Application under the “Services” tab or by clicking the “Online Retirement Application” link on the home page. Once the retiree submits the application, it will be in the queu for KCS to certify the application