USD 259 Retirement Seminar Hosted by Employee Benefits & Insurance Management Dept. USD 259 January 2009 Retirement Seminar

USD 259 VOLUNTARY EARLY RETIREMENT PLAN “The Bridge” January 2009 Retirement Seminar

Requirements for Eligibility Hire or rehire in a benefited position prior to July 1, 1996 15 years or more in a benefited position with USD 259 At least age 50 but not over 65 Vested with KPERS Employee group must participate Must apply for retirement by the last working day in February, if you wish to receive Bridge payments anytime during the next fiscal year. January 2009 Retirement Seminar

Not Required . . . You do not need 85 points to qualify for the District’s Early Retirement Program, known as the “Bridge”. You do not need to be 60, if leaving employment to be eligible to “vest” your Bridge benefits. January 2009 Retirement Seminar

You may be eligible… If you’re at least age 50 but not over 65, and You have 15 or more years in a benefited position with USD 259. Contact the Retirement Office before terminating to determine if you are eligible for the “Bridge”. If you are terminated from employment, you no longer qualify for the “Bridge”. January 2009 Retirement Seminar

Work Restrictions after Early Retirement After retirement you are ineligible for employment with USD 259 in any capacity other than as a substitute employee. Any exception to this policy concerning employment will be subject to approval by the Superintendent of Schools. January 2009 Retirement Seminar

“Bridge” Consists of Bridge Payment BOE Life Insurance until 65 BOE Health Insurance available, if you pay the premium and meet the qualifications Note: Must be receiving KPERS retirement Benefits to begin “Bridge” payments. January 2009 Retirement Seminar

Bridge Payment . . . Monthly payment until age 65 May include two parts: Social Security “Bridge” KPERS “Bridge” January 2009 Retirement Seminar

BOE “Social Security Bridge” Begins at age 60 (or at retirement if older) Ends at age 62 Maximum of 24 payments Payment based on Social Security estimate Reduced by 5% for each year under 20 years of USD 259 service. January 2009 Retirement Seminar

BOE “KPERS Bridge” Begins at age 60 (or at retirement if older) Ends at age 65 Maximum of 60 payments Payment based on Final Average Salary with KPERS Years of service with KPERS * *Note: Any Purchased (Buyback) service are excluded (e.g.: Forfeited, Military or Out of State Service) 1.4% multiplier for participating service January 2009 Retirement Seminar

Bridge Taxes Bridge Payments are taxable for: Federal Income Taxes and State Income Taxes Note: Consult your tax advisor on any tax consequences. January 2009 Retirement Seminar

Example: Retire at age 60, $55,000 final average salary, 25 years of service Age 60 up to age 62 KPERS lifetime benefit $ 2,000 USD 259 Bridge-KPERS (60 to age 65)1,650 USD 259 SS Bridge (60 to age 62) 1,200 Total Monthly Retirement Benefits $ 4,850

Example: Retire at age 60, $55,000 final average salary, 25 years of service Age 62 up to age 65 KPERS lifetime benefit $ 2,000 USD 259 KPERS Bridge (60 to age 65) 1,650 Total Monthly Retirement Benefits $ 3,650 If you apply for Social Security benefits at age 62, you could start receiving reduced benefits of approx. $1,200.

Example: Retire at age 60, $55,000 final average salary, 25 years of service KPERS lifetime benefit $ 2,000 Total Monthly Retirement Benefits $ 2,000 If you apply for Social Security benefits at age 62, you could start receiving reduced benefits of approx. $1,200. For you full benefits date, contact Social Security.

Social Security (if started at 62) $__?__ Total $4,850 Example: Retire at age 60, $55,000 final average salary, 25 years of service Age 60 KPERS $2,000 USD 259 (KPERS) Bridge $1,650 USD 259 (Social Security) Bridge $1,200 Total $4,850 Age 62 KPERS $2,000 USD 259 (KPERS) Bridge $1,540 Social Security (if started at 62) $__?__ Total $4,850 Age 65 KPERS $2,000 Social Security (if started) $___?_ Total $3,200 January 2009 Retirement Seminar

Bridge Life Insurance Options BOE Life Insurance until 65 Life Premium paid by USD 259 Benefit amounts same as district life benefits - this is $30,000 (for most employee groups) This is in addition to $4,000 from KPERS or any additional purchased from Minnesota Life.

Health Coverage Options at Retirement If you wish to participate in the USD 259 Health Plan as a Retiree. You must enroll for coverage with Employee Benefits by your retirement date or coverage will be terminated. At this time, you and your spouse may stay on the USD 259 health plan. USD 259 Retiree premiums are subject to change based on yearly negotiations (premiums can be 125% of what BOE or employees pay). Investigate and explore other health plan coverage options Senior Health Insurance Counseling for Kansas (SHICK) AARP Other Individual & Group Policies January 2009 Retirement Seminar

Health Coverage Options at Retirement Retirement at or after age 65 (with spouse age 65 or older) No longer eligible for USD 259 health plan Must sign up for Medicare A, B & D or a supplemental plan. January 2009 Retirement Seminar

Health Coverage Options at Retirement Contact Employee Benefits to speak with Judy Foy, Health Plan Technician @973-4564 regarding coordination of coverage with Medicare for you and your covered spouse. January 2009 Retirement Seminar

Health Coverage Questions For USD 259 Health Plan: Coventry Customer Service: 1-866-765-7841 Judy Foy: 973-4564 or jfoy@usd259.net Medicare: 1-800-722-1213 1-866-931-9173 (local ) SHICK: 316-660-0100 ext 0117 January 2009 Retirement Seminar

Factors to Consider before Retiring Early Retirement is a major lifestyle change Salary and longevity end Social Security Health Care Costs KPERS Benefits Change Earnings Limits Return to Work Options Increased Life Expectancy / Effects of Inflation Effective Date of Retirement January 2009 Retirement Seminar

How much money do you need to retire? Financial planners recommend 80-100% of your working income. Where will your money come from? Social Security KPERS Personal Savings and Investments USD 259 Bridge (if eligible) January 2009 Retirement Seminar

Your Responsibility: Contact the retirement office for retirement counseling appointment to sign retirement paperwork. Deadline to sign if you plan to draw in the next fiscal year, July 2011 to June 2012, forms signed by 25th of February, 2011. If leaving district, you must sign Pre-Early Retirement forms prior to leaving to vest your rights to benefits starting at 60. KPERS requires proof of age and any legal name changes. Must notify KPERS and USD 259 Human Resources of address changes. Must notify KPERS and USD 259 Payroll Dept. of banking institution before starting benefits or if any changes after retirement. January 2009 Retirement Seminar

USD 259 Early Retirement Deadlines Bridge Benefits in the next fiscal year- forms signed by last working day in February. Fiscal year runs July 1, 2011 to June 30, 2012. If leaving district this year, but wish to draw Bridge benefits after next fiscal year - you must sign Pre-Early Retirement forms prior to leaving to vest your rights to benefits starting at 60.

Calculators USD 259 Bridge Calculator KPERS Calculator http://kperscalc.usd259.net/ KPERS Calculator http://www.kpers.org/benefitcalckpers.htm January 2009 Retirement Seminar

Questions About KPERS or the “Bridge” Leilani Hook, USD 259 Retirement Specialist 316-973-4590 lhook@usd259.net or e-mail employeebenefits@usd259.net www.kpers.org 1-888-275-5737 January 2009 Retirement Seminar