1. RETIREMENT PLANNING 2017 RETIREMENT PLANNING 2011
Mary Kay Sankey
Staff Benefits Manager
UW-Stout Human Resources
_______________________________________________________________
University of Wisconsin-Stout

2. OBJECTIVES WRS Information/Tools & Resources
WRS Annual Statement of Benefits
WRS Calculation Methods
WRS Estimate Calculator Demo
WRS Annuity Options
Sick Leave Conversion
Post-Retirement Insurance
TSA/DC
Retirement Process Timelines
Answer Questions

3. ETF WEBSITE/RESOURCES
Road to Retirement Online Video Appointment (same info members seek from an in-person explanation of retirement materials)
Applying for Your Retirement Benefit
Calculating Your Retirement Benefits
Choosing an Annuity Option
How to Retire
Information for Retirees
How Variable Participation in the Variable Trust Affects your WRS Benefits
Buying Creditable Service
How Part-Time Employment Affects your WRS Benefits
Tax Liability on WRS Benefits
Additional Contributions
Military Service

4. WRS BENEFITS Retirement Benefit (Vesting Requirement after 7/1/2011)
Separation Benefit (not vested or requesting benefit prior to age 55, 50 if Protective category)
Disability Benefits
Death Benefit
Active
In-Active HUGE difference

5. BENEFICIARY DESIGNATION
Not paid according to will
WRS and State Group Life Death Benefits are always paid according to the most recent Beneficiary Designation on file with ETF
There are separate beneficiary forms for each UW Life Insurance plan, your TSA & WDC
If no designation is on file there is a Statutory Standard Sequence that applies
Beneficiary forms available online
MAKE SURE YOUR BENEFICIARY DESIGNATIONS ARE ALWAYS UP-TO-DATE

6. FURLOUGH
WRS Benefits were NOT impacted by Furlough! 2009 Wisconsin Act 28 required employers to report your salary, retirement contributions and creditable service as if the furlough did not occur

7. WRS ANNUAL STATEMENT of Benefits
Dated January 1 of each year, normally available in UW Portal (Benefit Information Section, Statements tab) mid-late April
Verify account information:
Service
Salary
WRS Beneficiary(ies)/Death Benefit Info
Report Discrepancies to Employer/AskHR
Use information for calculating WRS estimates

8. WHEN CAN I RETIRE?
A retirement benefit is available to vested * WRS employees after you terminate employment and have reached age 55 (50 for participants with some protective category service). Retirement benefits are based on both employee and employer contributions, and are usually paid as a monthly annuity payable to you for LIFE.
Participants who first began WRS employment after 1989 and terminated employment before April 24, 1998 must have some WRS creditable service in five calendar years.
Participants who first began WRS employment on or after July 1, 2011 must have five years of WRS creditable service
Participants who are not vested may only receive a separation benefit

9. WHAT IS AN ANNUITY?
An annuity is a Wisconsin Retirement System (WRS) benefit paid monthly
A person who receives a monthly benefit is called an Annuitant
WRS annuities are paid to participants for LIFE*
*except for an Additional Contributions annuity certain

10. ( 2017 Amounts - indexed annually)
ANNUITY THRESHOLDS
Lump Sum Payment: Less than $196 per month
Lump Sum or Annuity: $195 - $400 per month
Annuity Only: $401 and over per month
( 2017 Amounts - indexed annually)
Note: If you select a lump sum payment, any Additional Contributions will be included in your payment.

11. TWO CALCULATION METHODS
Formula Calculation
Money Purchase Calculation
Interest Crediting has MAJOR Impact
You are automatically paid under the
calculation method that provides the largest monthly annuity

12. FORMULA CALCULATION
Final Average Salary (monthly average of 3 highest years -- calendar year for University Staff, fiscal year for FASLI employees) X Formula Factor(s): Pre-2000 Service Post-1999 Service General: Protective: X WRS Creditable Service X Age Reduction Factor, if applicable = Monthly “Annuitant’s Life Only” Amount (Max = 70% of FAS, general/65% FAS, protective) Amount then Adjusted for Variable Participation

13. NO AGE REDUCTION/ FULL RETIREMENT BENEFIT
Age 57 (or older) with 30 years of WRS creditable service OR
Age 65
Applies to formula calculation only!

14. AGE REDUCTION FACTOR Based on Age and WRS Creditable Service
Age 55 with 10 years of service…….64.8%
Age 55 with 25 years of service……84.0%
Age 55 with 30 years of service…….90.4%
Age 57 with 10 years of service……..74.4%
Age 57 with 25 years of service……..95.2%
Age 57 with 30 years of service……..100%

15. WAYS TO INCREASE CREDITABLE SERVICE
Military Service Credit -- need DD-214
(one year of WRS service for each 5
years of active military prior to 1974/max = 4 yrs)
Purchase Forfeited Service (termed and withdrew $)
Forfeited Service Calculator Available on ETF website
Purchase Qualifying Service: University Staff employees who began WRS employment prior to 1973, first six months was not under WRS
Purchase other government service – very costly
Work longer

16. MONEY PURCHASE CALCULATION
Total WRS Account Value X Money Purchase Factor (Actuarial Factor based on Age) No Limits on Monthly Amount - Interest Crediting Major Impact 2016 Effective Interest Rates: 7.9% Core, 10.0% Variable

17. CHOOSING AN ANNUITY OPTION
Seven options available (and Accelerated if under age 62)
All options are payable for your LIFETIME
The option you select determines the death benefit available, if any
The different options are designed to accommodate individual needs/situations

18. ANNUITY OPTIONS Annuitants Life Only
Life Annuity – 60 Payments Guaranteed
Life Annuity – 180 Payments Guaranteed
Joint Survivor Annuity Continued at 75% (pop-up)
Joint Survivor Annuity Continued at 100% (pop-up)
Joint Survivor Annuity Payments Reduced 25%
Joint Survivor Annuity 100%, Combined with Payments Guaranteed
Important to know the Difference between Beneficiary and Named Survivor

19. ACCELERATED PAYMENTS Available if under age 62
WRS pays a higher amount prior to age 62
WRS reduces at age 62 automatically
Social Security available at age if/when electing to begin SS payments, you apply directly with SSA
Allows more level retirement income
Accelerated Payment Calculator on ETF Website

20. CONSIDERTIONS WHEN CHOOSING ANNUITY OPTION
Do you need to provide for a beneficiary(ies) or survivor?
Names Survivor’s Age
Life Expectancy – yours and your Named Survivor or beneficiary(ies)
Retirement Income
Investments, other pensions
Other Work
Social Security
Taxes
Life Insurance
Your Assets/Liabilities

21. TIMING OF RETIREMENT You can retire anytime
Consider which Calculation method is higher and what is projected interest crediting?
Most FASLI Retire end of May (AY) or July (Annual). Most University Staff in January. If formula calculation is higher
Last fiscal year is usually highest earnings period
Paid holiday(s) – July 4, Annual AS/LI
Dec/Jan Holidays University Staff
Personal Holidays not Pro-Rated
Paid leave (other than sick leave) earned is paid out as lump-sum, with approval can be used to extend retire date
Vacation is given up front but prorated based on retire date
State Adjusted Continuous Service Date/Max SL Match
Benefits paid through month of last day on payroll

22. PAID LEAVE Personal Holidays are not pro-rated
Vacation is given up front in assuming you will work the entire calendar or fiscal year. If you retire prior to the end of the calendar year (University Staff) or fiscal year (Annual AS/LI) vacation is pro-rated
FASLI: Jen Schermitzler,
All FASLI leave reports must be in to certify sick leave and payout any used leave
University Staff: Annette Koleno,

23. TAXES/NET MONTHLY ANNUITY
Taxable Benefit -- almost entire Annuity Amount
Investment In Contract = Part You Paid - Section 3 Annual Statement is the Non-taxable portion
Indicate Withholding on Retirement Application
State Taxes based on State of Residency
Not subject to Social Security/Medicare Taxes
State Group Life Premium EE coverage, if 65 or under
Health Insurance Premium – No ER Contribution, sick leave or directly from annuity check, if large enough

24. WILL MY RETIREMENT BENEFIT AMOUNT CHANGE?
CORE
Core dividend applied on each year on May 1st- pro-rated first year
Can increase or decrease but will not decrease less than original CORE benefit amount
VARIABLE
Variable adjustment is applied to the variable portion each year on May 1
Can increase or decrease – more volatile – no guarantee on variable
If increase based on dividend assessment is less than 1%, no dividends are assessed.

25. ANNUITY ADJUSTMENTS 2009-2016 YEAR CORE VARIABLE 2016 2.0% 4.0% 2015
.5%
-5.0% (Loss)
2014
2.9%
2013
4.7%
25.0%
2012
-9.6% (Loss)
9.0%
2011
-7.0% (Loss)
2010
-1.2% (Loss)
11.0%
2009
-1.3% (Loss)
22.0%
2008
-2.1% (Loss)
-42.0% (Loss)

26. CAN I ENROLL IN VARIABLE ?
Complete an Election to Participate in the Variable Trust Fund form (ET-2356)
Form available in Human Resources or on web
Effective January 1, following ETF’s receipt of form
Participants in variable have 50% of future WRS contributions deposited in the Variable Fund
50% of contributions will continue to be deposited in the Core Fund

27. CAN I CANCEL VARIABLE PARTICIPATION?
Complete an Election to Cancel Variable Participation form (ET-2313)
Form available in HR or ETF website
Choose how you would like to opt out
Conditionally
Unconditionally
Never allowed to opt back in to Variable

28. CALCULATE YOUR RETIREMENT BENEFIT
Calculate your WRS Benefit on the ETF website: Click on the “Calculators” button on the toolbar on the left (WRS, Variable Excess/Deficiency, Forfeited Service, Accelerated Payment, Link to SSA) WRS Calculator Demonstration

29. Disability Benefits
Two different types of disability plans available based on WRS begin date
Must meet creditable service requirements
Must be totally and permanently disabled
Must not have reached normal retirement age
Must not be gainfully employed
2 Physicians must certify total disability
Contact HR or ETF with Questions

30. BENEFITS UPON RETIREMENT
Insurance benefits through active employment end the end of the month in which retirement occurs
Retirees receive a letter from HR advising of options for continuation/conversion along with the appropriate paperwork for the continuation/conversion
HR completes Accumulated Leave Certification
FASLI employees make sure all leave reports have been completed
Review MyUW Portal information and save or print documents you wish to keep, no access after retired

31. HEALTH INSURANCE Retiree pays full premium cost
Converted Sick Leave Credits pay premiums until exhausted available to spouse/DP/dependent child(ren) upon death of annuitant if family plan is in effect
Can be escrowed if you have comparable coverage
After credits are exhausted, premium taken from annuity check if large enough, otherwise health plan bills retiree –CANCEL coverage if you don’t want it to continue
Annual It’s Your Choice Open Enrollment Opportunity
Premium reduces when retiree/spouse/DP are eligible for Medicare, age 65 or disability. Must apply for Medicare B when first eligible if retired
Change Plans - move from area 3 or more months

32. SICK LEAVE CONVERSION
Highest Rate X Hours of Sick Leave including supplemental hours, if eligible UW System Sick Leave Calculator:

33. SUPPLEMENTAL SICK LEAVE
Must have 15 years of State Adjusted Continuous Service
Will match up to 52 hours for each year, 1– 24
Will match up to 104 hours for each year 25 +
500 hours restored for catastrophic illness
If 500 hours are used within 3 years of retirement for one catastrophic illness
Restored hours are not matched
Sick Leave Conversion Credit Program Brochure:

34. SUPPLEMENTAL SL MAX MATCH
Full Years of STATE Adjusted Continuous Service
Maximum Match
15 years
780 hours
20 years
1040 hours
24 years
1248 hours
25 years
1352 hours
30 years
1872 hours

35. STATE GROUP LIFE INSURANCE (WI Public Employers Group Life, Securian)
Will automatically continue upon retirement if retiree was covered under WRS prior to 1/1/1990 or were covered by SGL in at least 5 calendar years after 1989 and are eligible for an immediate annuity, premium taken from retirement check
No premium after age 65 if retired
Death benefit decreases
75% of Basic Coverage while age 65
50% of Basic Coverage age 66 and older
Possible to convert to pay health insurance premiums and long-term care premiums after age 66, if sick leave credits are exhausted. Accelerated Death Benefit.

36. OTHER BENEFITS SGL Spouse and Dependent
Can be converted - substantial premium increase
Income Continuation Ins
Coverage ends on retirement date
Flexible Spending Accounts
Make arrangements for year of retirement. Cannot be taken from annuity checks.
Health Savings Account
Contributions end, service fee $3 per month
Individual & Family Life Ins
Can convert to individual policy – substantial premium increase
AD& D
Continue at group rates, coverage decreases on sliding scale at 70
UW Employees Inc.
Can convert to individual policy - substantial premium increase
UIA Life Ins – FASLI Only
Can continue at group rate, plus $2 administrative service fee
Dental Wisconsin
Can continue at group rates
EPIC Benefits+
Can continue at retiree group rate
VSP Vision Insurance

37. BENEFICIARY DESIGNATION(S)
ALWAYS KEEP BENEFICIARY DESIGNATIONS UP-TO-DATE
Wisconsin Retirement System
Life Insurance Plans (different forms for each plan)
TSA/DC

38. EMPLOYMENT AFTER RETIREMENT
Must be a good faith termination
WI Act 20 effective for employees with termination date July 1, 2013 and after:
May return to employment after a 75-day break in Service
Automatic Suspension of annuity upon returning to work for a WRS participating employer in which the participant is expected to work at least two-thirds of full-time
UW-Stout has Annuitant Administrative Procedure 037 – Post Retirement Employment
May work for another employer -- Will not affect your WRS annuity
May affect your social security
These laws/procedures may change!
No Benefits as Re-hired Annuitant, except FSA and TSA/DC

39. TSA/DC If retired, disbursements may begin at age 55
Disbursements may be delayed, but no later than age 70-1/2
Tax-Deferred Disbursements are fully taxable
Contact your TSA Company or DC for more information and options
Can enroll anytime while actively employed

40. 2017 TSA/DC Limits (Separate Limits)
ANNUAL MAXIMUM
AGE 50 AND OVER
MAXIMUM
TRUE
CATCH UP
(based on UW service/contributions)
$18,000
$24,000
$3,000 more

41. WHAT NEXT? Plan for Retirement Ask questions, keep informed
Sources of additional information:
Human Resources
Department of Employee Trust Funds
Social Security Administration
Financial Advisor/Accountant/Attorney
All inquires are CONFIDENTIAL

42. WHAT NEXT, (Continued)
Order WRS estimates 6-12 months before expected retirement date, under no obligation to retire (Form on HR website or contact ETF)
Retirement Paperwork can be mailed back to ETF 90 days prior to actual retirement date
Formal resignation letter must be turned
Two week notice is required, department would like as much notice as possible
Check with Social Security
Always keep Beneficiary(ies) Designations Up-to-Date

43. RETIREMENT PAYMENTS
Paid on 1st of Month for prior month (paid June 1 for May)
Receive payment mailer showing earnings
Last Month, This Month, Next Month
Once amounts are the same you will not receive mailer until there is a change
Paid on Estimated basis for 6-12 Months, will receive notification of Final Calculation (retro adjustment)
Direct Deposit Required
Currently no WRS payment information available online

44. HELP UW-Stout, Human Resources Department of Employee Trust Funds
Mary Kay Sankey, Staff Benefits Manager
(715)
Department of Employee Trust Funds
Toll free: (877)
website:
Social Security Administration
Toll-Free: (800)
website:

45. INFORMATIONAL BROCHURES
Additional Contributions
Applying for Your Retirement Benefit
Buying Creditable Service
Calculating Your Retirement Benefit

46. INFORMATIONAL BROCHURES, CONT
Choosing an Annuity Option
How Divorce Can Affect your WRS Benefits
How Participation in the Variable Trust Fund Affects Your WRS Benefits

47. INFORMATIONAL BROCHURES CONT
Information for Retirees
Military Service Credit
Sick Leave Conversion Credit Program
Tax Liability on WRS Benefits

48. INFORMATIONAL BROCHURES CONT
WRS Credited Effective Rates & Corresponding Dividends/Adjustments
Tax Sheltered Annuity 403(b) Program
Wisconsin Deferred Compensation

49. BENEFICIARY FORMS
WRS & State Group Life (WI Public Employers Group Life)
WRS Alternate Beneficiary Form
Accidental Death & Dismemberment
EPIC
Individual & Family Group Life
UW Employee’s Inc
University Insurance Association (UIA) FASLI Only
TSA/Deferred Comp
Contact Vendor

50. ?? QUESTIONS ??
THANK YOU!