POST RETIREMENT EMPLOYMENT OPTION (PREO)

 ESI is an employee leasing company incepted in 1999 by three retired educators.  Founder and leader of the Return-to-Work (RTW) program in Arizona.  Ushered original legislation to make the RTW concept legal.  Currently in over 160 Arizona school districts, colleges, cities, and towns.  Offices in Tucson, Phoenix and Northern Arizona (Corporate Office).

 Normal Retirement ◦ 1.) 80 Points (age + years of ASRS service) ◦ 2.) Age 62 with 10 or more years of ASRS service ◦ 3.) At age 65  Early Retirement ◦ At least age 50 with 5 or more years of ASRS service

 1.) Average Monthly Compensation (highest 36 consecutive months of salary within the last 120 months of service or 60 months*)  2.) Total ASRS Credited Service  3.) Graded Multiplier ◦ YOS2.10% ◦ YOS2.15% ◦ YOS2.20% ◦ 30+ YOS2.30%

 1.) 20/20 Rule ◦ RTW effective immediately part-time  2.) 12 Consecutive Month Rule ◦ RTW must wait 12 consecutive months  3.) Work for Non-ASRS Employer  4.) ESI ◦ RTW effective immediately full-time

 Alternate Contribution Rate (ACR) ◦ SB1609-Signed by Governor: April 29, 2011 ◦ 8.64% Fiscal Year ◦ Effective date of July 1, 2012 ◦ Employer is responsible for ACR

 Current Employee ◦ Pay Rate100% ◦ ASRS Contribution Rate(10.74%) ◦ FICA (SS & Medicare)(7.65%) ◦ Total Pay Before Taxes81.61%  ASRS Retiree (30 Years of Service and No Joint & Survivor Option) ◦ Pay Rate69% ◦ ASRS Contribution Rate0% ◦ FICA (SS & Medicare)0% ◦ Total Pay Before Taxes69% 12% Difference!!!

 Current Employee ◦ Pay Rate$54,000 ◦ ASRS Contribution Rate (10.74%)($5,800) ◦ FICA (SS & Medicare) (7.65%)($4,131) ◦ Total Pay Before Taxes$44,069  ASRS Retiree (30 Years of Service and No Joint & Survivor Option) ◦ Pay Rate (69%)$37,260 ◦ ASRS Contribution Rate (10.74%)$0 ◦ FICA (SS & Medicare) (7.65%)$0 ◦ Total Pay Before Taxes$37,260 $6,809 Difference!! or $3.27/Hour!!

 COBRA? ◦ Medical-Base EPO $297 ($447-$150) ◦ Medical-Buy-up PPO$386 ($536-$150) ◦ Medical-HDHP$253 ($403-$150) ◦ Dental-Low Option (Delta)$29.01 ◦ Dental-High Option(Delta)$46.68 ◦ Dental-EDS$8.42  ASRS Premium Benefit $150/$260  ASRS Retiree Plan? ◦ UnitedHealthcare  Non-Medicare Plan$491 ($641-$150)  ASRS Premium Benefit $150/$260  Medicare Plans$190-$342  ASRS Premium Benefit $100/$170  Dental-Low Option$16.67  Dental-High Option$35.51  Spousal Plan?

 401(k) Tax-Sheltered Account (TSA) ◦ ING Financial ◦ 20 + Mutual Funds ◦ No surrender charge among separation of service  No obligation financial advisement  Worksite benefits/Cafeteria plan ◦ Dental and Vision ◦ Life Insurance and Long-Term Care ◦ Flexible Spending Account (FSA)

 Speak to your financial advisor  ESI can provide an advisor if desired  ASRS Retirement Option Concerns ◦ Seven Joint & Survivor Options… ◦ Service purchase buy-backs? ◦ Health Insurance?

 What about sick, personal, vacation leave?  What about extra duty assignments?  How do I get paid and how often?  What about evaluations?  Is the program calendar sensitive?  Can I “un-retire”?  What is the termination clause?  Should I attend an ASRS group meeting?  Everything looks great! How do I start?

 ESI ◦  Arizona State Retirement System ◦  Social Security ◦  Internal Revenue Service ◦

 Corporate Office  PO Box 235  Cottonwood, AZ  toll free: (877)  office: (928)  fax: (928)   Tucson OfficeSJI Financial (Financial Advisor Group)  Jim FogltanceJim Bishopp  5355 North Estelle Drive7481 East Broadway BLVD #100  Tucson, AZ 85718Tucson, AZ  office: (520) office: (520)  Phoenix Office  Phil Tavasci  5450 East High Street #300  Phoenix, AZ  office: (480)  fax: (480)