1. Presented by Rachelle Hady
Retirement Planning
Presented by Rachelle Hady

2. Welcome Safe, confidential environment WRS Overview
Social Security Overview
Medicare Overview
MMSD Benefits
Next Steps

3. (Wisconsin Retirement System)
WRS
(Wisconsin Retirement System)
WRS = Your Pension
WRS Estimate and Election
Must request 2-3 months prior to retirement
WRS Calculator (personal estimate)
Uses years of service in WRS & top 3 years of income (all income)
WRS / ACT 10 requires there is a break in service for at least 75 days after retirement
Working after receiving WRS – 880 hours max / year

4. Social Security (62+ years old)
Social Security benefit will increase for every year/month you do not pull it after age 62
Check out SS Retirement Planner:
Be aware of Income Limits while working and receiving Social Security
Birth Year
SSFRA
1937 & earlier 65
1938
65 yrs 2 mos
1939
65 yrs 4 mos
1940
65 yrs 6 mos
1941
65 yrs 8 mos
1942
65 yrs 10 mos
66 yrs
1955
66 yrs 2 mos
1956
66 yrs 4 mos
1957
66 yrs 6 mos
1958
66 yrs 8 mos
1959
66 yrs 10 mos
1960 & later
67 yrs

5. Medicare (Age 65+) 1st of month in which you turn 65
Medicare A (hospital) is no cost
Medicare B (80% of office visits) is $134/month (2017 rate)
Medicare B Supplement or a Medigap plan may cover the difference up to 100%
Medicare D (prescription drugs)
Not included in Medicare B Supplement provided through MMSD
Monthly premiums range from $18 - $50+
Based on YOUR prescriptions
Find plans on

6. MMSD Benefits

7. Insurance Coverage Coverage levels: Single
Single x 2 plans (self + spouse)
Family
Medical
Dean, GHC
Dental
Delta Dental of Wisconsin
Life Insurance
Epic Life Insurance Company
Long-term care
Unum

8. Life Insurance
Can have withheld from RIA Escrow Account or pay directly to Epic
Basic Life
1x salary
Age reduction
Age 65: 75%
Age 67: 50%
Age 72: 25%
Voluntary Life
Can continue into retirement
Coverage ends at age 65

9. Retirement Insurance Account
Personal Illness converts to Retirement Insurance Account (RIA)
Escrow Account
Health Reimbursement Arrangement
RIA is an insurance benefit continuation account only (cannot be paid out)

10. Health Reimbursement Arrangement
Escrow or
Health Reimbursement Arrangement
Escrow Account can be used for
District provided medical (including Medicare B Supplement)
District provided dental
District provided life
District provided long-term Care
Health Reimbursement Arrangement can be used for
Any medical (including Medicare Part B Supplement)
Any dental
Any long-term care
Health Reimbursement Arrangement cannot be used for
Medigap plan
Medicare Part D plan
Life insurance
Insurance premiums while working for MMSD

11. RIA Calculation Final PI balance x daily/hourly rate = account balance
Is re-calculated after retirement for final amount
Final PI balance will be mailed to your home
How many years will my RIA account last?
Estimated calculation
RIA Account / (Total monthly insurance premium x 12 months x 1.20 (used to generalize annual insurance premium increases))
Take into consideration Medicare B Supplement plans are approximately $200 per month

12. TERP (Teachers Only) 19% of your highest earnings, for 3 years
Health and dental insurance premiums may be withheld from TERP account
If electing 2 single plans, only employee coverage is withheld from TERP
Annual insurance election
Why use TERP for health/dental premiums?
Personal decision
Cash flow?
Length of time you need insurance?
Annual election for insurance premiums to be withheld

13. (Administrators Only)
ARP
(Administrators Only)
Must be age 55
Must have at least 5 years participation in 403(b) with minimum $50 per month contribution
Must have at least 12 years of service
Administrator year = 1 year
Teacher year = 1/3 year
50% contribution made to 403(b) in July and January
Ranges from $41,000 - $51,000 total contribution

14. Things To Do With MMSD
When ready to retire complete the following forms. RETURN TO RACHELLE HADY
Complete the Retirement Notice
No later than February 15th for teachers
No later than January 15th for administrators
No later than 2 weeks prior for all other employees
Retirement notice is kept confidential until necessary
Complete Insurance Enrollment Forms to transition to District Retiree insurance plans
Complete TERP election (teachers only)

15. Things To Do Outside MMSD
Contact WRS for estimate
Contact Social Security for estimate
Contact 403(b) and/or 401(k) accounts to understand account balances

16. Questions?