Retirement Presented by: Human Resources Department

Overview NEO Retirement Accrued Leave OTRS Retirement TIAA-CREF Insurance Options NEO Retiree Benefits

Thinking About Retirement? Wondering what your retirement might be? – TIAA-CREF Website- – OTRS Website- – Social Security Administration-

NEO Retirement Criteria Qualification for NEO Retirement – Age 62 with 10 Years of NEO Service or – Continuous Years of NEO Service (Any Age) or – OTRS Rule of 80, Rule of 90 or Rule of 90/65.

NEO Retirement Process Resignation Letter – Submit to Supervisor at least 90 Days Prior to Retirement. Supervisor will send a copy to Personnel. Retiree request that your Supervisor complete a Request for Personnel Action Form indicating your last day of work. Retiree should complete their last time card or leave report prior to last day of work. All benefits will terminate at the end of the month proceeding the last day of employment.

Annual (Vacation) Leave Be aware of your leave situation prior to retirement Faculty leave records are maintained at departmental level and sent to Personnel Forfeit if more than max accrual Any accrued annual leave will be paid out with last check or next available pay period.

Sick Leave – Forfeit Unused – Possible one year OTRS credit – Sick Leave plus Partial Year Work – NEO verifies for OTRS

Oklahoma Teachers’ Retirement System Active Members: 88,085 Retirees: 50,829 Inactive: 15,223 Total: 154,137 Annual Payroll: $3,773 million Employee Contributions = $287 approx million Employer Contributions = $388 approx million Dedicated Revenue = $252 approx million TOTAL: $926 approx million

Oklahoma Teachers’ Retirement System OTRS Retirement Criteria: – Five Years of OTRS Membership Age 62 with full benefits Age 55 with reduced benefits Disabled at any age with 10 years of service- (must be approved through OTRS) Rule of 80 at Any Age (QUALIFYING MEMBERSHIP DATE: member prior to ) Average of highest 3 salaries used to calculate monthly retirement benefit Rule of 90 at Any Age (QUALIFYING MEMBERSHIP DATE: member after & before ) Average of 5 highest consecutive salaries (used to calculate benefits) Rule of 90/65 (QUALIFYING MEMBERSHIP DATE: member after )

OTRS Cont. Early Retirement: Members can also qualify for early retirement with a reduced benefit. Early retirement is as follows: Are between ages 55 to 61 and have at least five (5) years of Oklahoma creditable service, but do not 80 or 90 “points”; the reductions shall be as shown on the next slide.

OTRS members who joined on or after July 1, 1992, can retire with full benefits from OTRS: At age 62 with at least 5 years of OTRS service credit OR When age plus years of OTRS service credit equal 90 or more (Rule of 90). OTRS members who joined on or after November 1, 2011, can retire with full benefits from OTRS: At age 65 with at least 5 years of OTRS service credit OR When age plus years of OTRS service credit equal 90 or more (Rule of 90). OTRS Cont.

OTRS members who joined prior to July 1, 1992, can retire with full benefits from OTRS: At age 62 with at least 5 years of OTRS service credit OR When age plus years of OTRS service credit equal 80 or more (Rule of 80).

OTRS Cont. Members are eligible to apply for disability retirement benefits from OTRS at any age with at least 10 years of service credit. Members with at least 5 years of service credit may begin receiving a reduced retirement benefit when they reach age 55 or when they have 30 or more years of service, regardless of age.

OTRS Cont. Vesting & Termination – In order to be considered a vested member of the system a client must have accumulated 5 years of creditable service, after which the client becomes a member who then has a property right to their retirement.

OTRS Cont. Contribution Rate – Summary – Employee (Monthly benefit paid by NEO): 7% – Employer Statutory (Monthly benefit paid by NEO): 9.5% – Your retirement is calculated on your salary and applicable fringe benefits (e.g., health, dental, vision, etc.)

OTRS Cont. OTRS provides each retiree with a $5, life insurance payment to be provided to the beneficiary designated with OTRS, should retiree pass away.

OTRS Cont. Retirement Calculation – OTRS determines final retirement. However for purposes of this presentation, the retirement formula can be simply described as: 2% x Final Average Salary (FAS) x years of creditable service

OTRS Cont. Estimate from OTRS – 120 Days Prior to Retirement – Must complete OTRS PIV (Pre-Retirement Verification) Form – OTRS will send you a retirement estimate

OTRS Cont. Retirement Allowance Estimate – Choose Option – Sign the Estimate – Return Form 40 to OTRS – Send Copy to Personnel Office

OTRS Cont. OTRS Package – Checklist: Retirement Contract Form 80 Form 82 Spousal Consent Form Direct Deposit Form Tax Information and Tax Allowance Form

OTRS Cont. Forms 80 and 82 – Send to Personnel Office – NEO Forwards to OTRS – All Other Forms to TORS Contract and Direct Deposit Require Notary Deadline First of Month Prior to Retirement

OTRS Cont. OTRS Direct Deposit – Direct deposits are posted to member bank accounts on the first working day of each month, unless the first falls on a weekend or bank holiday; in which case, direct deposits will be posted on the last working day of the month. – Always inform OTRS of any address change

OTRS Cont. Mandatory Break between Employment and Retirement – A retired member is not eligible to be employed by the public schools of Oklahoma, in any capacity, for sixty (60) calendar days from the retirees last day.

OTRS Cont. Earnings Limit for Retirees Returning to Work – For a retiree who has returned to work, during the first 36 months of retirement, there are limits on the amount of money a retiree can make per calendar year from a member institution. – Under Age 62, the limit on allowed earnings is $15, – Over Age 62, the limit on allowed earnings is $30,000.00

OTRS Cont. Early Retirement Reduction: – (i) 55 – 52.16% – (ii) 56 – 57.06% – (iii) 57 – 62.47% – (iv) 58 – 68.46% – (v) 59 – 75.12% – (vi) 60 – 82.53% – (vii) 61 – 90.78% – (viii) 62 – %

OTRS Cont. Retirement Plans available through OTRS: – 4 Options Available through OTRS – Will select an irrevocable option upon retirement Maximum Option Option 1 Option 2 Option 3 Option 4

OTRS Cont. Maximum Option Highlights: – Largest retirement benefit. 100% of the retirement formula. – Client Account balance is depleted by lump sum amount if PLSO elected, then monthly by the gross retirement benefit. – Without PLSO, the Client Account balance may last 2-3 years. – The monthly retirement benefit will cease at death, and any remaining account balance will be paid to the beneficiary(ies)

OTRS Cont. Option 1 Highlights: – Monthly benefit is slightly less than maximum option. – Client Account balance is depleted by lump sum amount if PLSO is elected, and then depleted more slowly by an annuity amount. – Without PLSO or EESIP, the account may last 11+ years. – The monthly retirement benefit will cease at death, and the remaining account balance will be paid to the beneficiary(ies)

OTRS Cont. Option 2 Highlights: (100% joint survivorship for sole annuitant) – The least monthly benefit for the client and greatest benefit to the joint annuitant (the younger the annuitant, the lesser the monthly retirement benefit). – Joint annuitant will continue to receive the same lifetime monthly benefit (100% joint survivorship) upon death of client – Joint annuitant is designated at retirement and is not eligible to change, but a different person may be named to receive the $5000 survivor benefit…

OTRS Cont. Option 3 Highlights: (50% joint survivorship for sole annuitant) – Monthly benefit is not reduced as much as it is for Option 2 – Joint annuitant does not have to be client’s spouse or within 10 years of the client’s age; however, the younger the annuitant, the lesser the client’s monthly benefit. – Joint annuitant will continue to receive one half (50% of the monthly retirement benefit for the rest of joint annuitant’s life upon death of the client. – Joint annuitant is designated at retirement and is not eligible to change, but a different person may be named to receive the $5000 survivor benefit…

OTRS Cont. Option 4 Highlights: – Monthly benefit for client is less than amount under the Option 1 plan, but the beneficiary amount is usually greater. – If client dies within 120 months of the retirement date, the beneficiary continues to receive the client’s monthly benefit until the 120 th monthly retirement benefit has been paid. If client lives 10 years, no balance is left for beneficiary. – If beneficiary dies before client and before the 120 th retirement payment, a different beneficiary may be listed to receive the balance of the 120 retirement payments.

OTRS Cont. Questions about OTRS or for Retirement Estimate Contact: – Oklahoma Teachers’ Retirement System PO BOX Oklahoma City, OK Telephone: (405) – Toll free #: (877) – Location: Oliver Hodge Building 2500 N. Lincoln Boulevard Oklahoma City, OK

TIAA-CREF Retirement Do you have a 403(b) or 457(b)? Inform TIAA-CREF or applicable vendor of Retirement Date TIAA-CREF Sends Packet – Contract Options – Direct Deposit Authorization – Instructions – Final premium notice by NEO – Employer Authorization form – Return to TIAA-CREF

TIAA-CREF Retirement Questions about 403(b) or 457(b) Contact: – TIAA-CREF 730 Third Avenue New York, NY (800)

Retiree Insurance BlueCross BlueShield Health Plan – Pre-Medicare (Under 65) – Plan 65 Medicare Supplement & Part D Prescription plan (65+) OTRS Premium Credit OTRS Credit applied to bill from Bursar Credit is determined by OTRS and ranges from $ per month.

Retiree Insurance Healthcare, Dental, Vision – Complete BCBS health forms Over age 65 – complete health forms 90 days prior to retirement date State Retiree Election for Dental and Vision – Continue current coverage only – Cannot add later if declined – Cancel at any time Medicare Apply for Medicare part B card 90 days prior to retirement date if you are 65 or older

Health Care Premiums For applicable BCBS Health Insurance premiums, please refer to current rate sheet available in Human Resources. Plan 65 packets are available for those who are Medicare eligible. See Monthly Premiums for Current Employees for Plan Year January through December.

Dental and Vision Premiums For applicable Dental & Vision premiums, please refer to current rate sheet available in Human Resources. Health Choice & VSP plans have the most providers locally here in Miami, OK. Direct Bill – Mailed around the 3 rd of each month, due by the 20 th. Bank Draft – Forms available online OSEEGIB:EGID after first billing cycle.

NEO Life Insurance NEO-Paid Coverage - $10,000 Conversion Coverage Option – ING Employee Benefit – You Pay – Whole Life Policy

NEO Life Insurance ING Voluntary Coverage – Portability – Supplemental Employee and Dependent Coverage – “Port” – Term Life at NEO Group Rates Contact: Rachel Stetzer, ING (888)

Oklahoma Teachers’ Retirement System OTRS Retiree Life Insurance – OTRS Retirees - $5,000 – OTRS Pays Premium – OTRS beneficiary election

NEO Retiree Benefits New Retiree ID Card – See Campus Police for new retiree ID

NEO Retiree Benefits NEO - Information Technology Athletics Tickets Student Activities Center

I’M HERE TO HELP! BE SURE TO SCHEDULE AN APPOINTMENT WITH ME FOR COMPLETION OF ALL NECESSARY RETIREMENT PAPERWORK NO LATER THAN 90 DAYS PRIOR TO RETIREMENT DATE. 120 DAYS IS GREAT! Contact the Human Resources Department for a listing of current Insurance premiums or further details regarding applicable plans when approaching retirement.

HAPPY RETIREMENT !! For more information: NEO Human Resources - Phone: NEO Human Resources web site: NEO Retirement Program Guide & Calculator OTRS plan resources: or www.trs.state.ok.us TIAA-CREF resources: or www.tiaa-cref.org