1. Retirement Ready Webinar Series, Pt. 3
December 14, 2017

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4. Retirement Ready Webinar Series, Part 2
The following topics were discussed yesterday:
Purchases & transfers of service credit
Retirement Options
Leave credit
Types of retirement offered
Deferred Retirement Option Plan (DROP)
Initial Lump-Sum Benefit (ILSB)
Other TRSL benefits
*Recording will be available online at

5. Today’s Agenda
The retirement application process How TRSL pays your benefits Documentation needed Community property Tax liabilities Returning to work in TRSL-covered positions TRSL and Social Security

6. How do I apply to retire?
There are two ways you can apply for retirement:
Apply online through your Member Access account at
Submit the following forms:
Application for Service Retirement, ILSB, or DROP (Form 11)
Direct Deposit of Benefits (Form 15D)
NOTE: Members applying for DROP do not submit the Form 15D at time of entering DROP.

7. How do I apply to retire?
You can submit your retirement application as early as six months before your desired date of retirement or DROP beginning date:
You will need to complete all purchases, transfers, and/or reciprocals of service credit before the effective date of retirement or entering DROP.
You will also need to submit all required identification documents.

8. How do I apply to retire?
TRSL recommends you coordinate your retirement or DROP beginning date with your employer.
Your employer will verify your service credit and sick leave.
Some information cannot be submitted by your employer until after your last day of work.
Your retirement can only be canceled if a benefit payment has not been negotiated (includes direct deposit).

9. Applying through Member Access
Select “Apply for Retirement” from the “My Retirement” drop-down menu.

10. Applying through Member Access
Information for you and your spouse will automatically load from your account, but you will be able to make changes, if necessary.

11. The estimated affidavit
This is where you choose your retirement option. The affidavit must be notarized and have no alterations.
If retiring under Service or ILSB, return within 30 days of receipt.
If entering DROP, return within 90 days of receipt.
TEACHER, IMA

12. How TRSL pays your benefits
Benefits for a month are paid on the first of that month.
Your first benefit payment will be a paper check; subsequent payments will be direct deposited.
For Service and ILSB there is a 30-day waiting period.
This period begins on your retirement date. However, we must have your estimated affidavit as well as your direct deposit form to determine your benefit.
You will receive estimated benefits as first payments.
This partial benefit will continue monthly until TRSL finalizes your benefit. (For DROP participants: The estimated benefit is your DROP deposit amount plus your after-DROP estimated benefit, if applicable.)

13. How TRSL pays your benefits
You will receive a retroactive payment once your final benefit is calculated.
“Retro” payments include difference between your estimated checks and your final monthly benefit.
Your final benefit calculation will include any remaining sick leave that converts to service credit.

14. Things to do now Register for Member Access.
Submit copies of important documents:
Social security cards (member and beneficiary/ies)
Birth certificates (member and beneficiary)
Legal documents (including divorce decrees, judgment of separation, and/or community property settlements)
Update address.
Update beneficiary/ies.
Get a retirement estimate… use Member Access or submit Form 10

15. Community property
Most payments or benefits received from TRSL are considered community property:
Regular retirement benefits
Refunds or contributions
DROP or ILSB withdrawals
Death benefits
The court system ultimately determines which funds or payments are considered community property.
TRSL will not pay benefits to an ex-spouse without court documentation.

16. IRS Tax liabilities Your retirement benefit:
Exempt from Louisiana state income tax (not automatic, must file to receive exemption)
Subject to federal income tax
DROP withdrawals paid directly by TRSL:
May be subject to federal mandatory tax withholding

17. Returning to work after retirement
After retirement, you can return to work in a position eligible for TRSL membership.
The return-to-work laws do not prohibit you from returning to work.
If you are rehired in a position eligible for TRSL membership, the laws do specify what will happen to your TRSL retirement benefits and whether TRSL contributions are due.
If you are rehired in a position not eligible for TRSL membership, you are not subject to any TRSL return-to-work laws.

18. Retired teacher vs. Retired member
If you are rehired in a position eligible for TRSL membership, you will be classified in one of the following categories:
“Retired Teacher”
“Retired Member”
Pays contributions to TRSL
Receive a monthly benefit after fulfilling applicable waiting period*
Does not pay contributions to TRSL
Does not receive monthly benefit during period of re-employment
*All retirees returning to work are subject to a 12- or 36-month waiting period, as applicable, which starts on the date of retirement and continues for the duration of re-employment or the lapse of the waiting period, whichever occurs first.

19. Recent changes to RTW law
Required waiting period: Criteria for 12 months & 36 months
12 months
Individuals who retired before July 1, 2017
Individuals who retired on or after July 1, 2017 and have advanced degrees in speech therapy, speech pathology, or audiology
Individuals who retired on or after July 1, 2017 and whose retirement benefit was not actuarially reduced or was not calculated at an accrual rate of less than 2.5%
36  months
Individuals who retired on or after July 1, 2017 and whose retirement benefit was actuarially reduced or was calculated at an accrual rate of less than 2.5%.
Plan B members who retire on or after July 1, 2017.
New
This chart is a visual representation of the 12 month & 36 month required waiting period. (go to slide)
If retiree returns before the end of the 12 or 36-month waiting period, TRSL will suspend the benefit for the duration of the employment or the lapse of the 12 or 36-month waiting period, whichever occurs first.

20. TRSL and Social Security
Louisiana does not pay into Social Security for the majority of its public employees.
However, you may still be eligible for Social Security through other employment or through your spouse’s employment.
The type of Social Security benefit you are eligible for determines which offset provision applies to you.
Your TRSL benefit is not reduced.

21. Social Security benefits
Spouse’s or widow(er)’s benefit: Paid to spouses or surviving spouses who did not work long enough to earn their own SS benefit or whose earned benefit is less than the pensioner’s benefit
Earned benefit: Paid to individuals who worked at other jobs, paying SS taxes long enough to earn a SS benefit

22. Offset Provisions Government Pension Offset (GPO) – 1982
Windfall Elimination Provision (WEP) – 1985

23. Government Pension Offset (GPO)
Social Security benefits are reduced by two-thirds of your government pension (TRSL benefit).
The law requires that a person’s benefit as a spouse or widow/widower be offset dollar for dollar by the amount of his/her own retirement benefit.

24. Exceptions to GPO offset:
GPO does not affect you if you meet one of the following exceptions:
Were eligible to retire from your non-covered employment on or before November 30, 1982.
Were eligible to retire from your TRSL-covered employment before July 1, 1983 and you were receiving 50% of your support from your spouse at that time.
Are a member of TRSL Plan B (school food service workers who also pay SS taxes).
You withdrew your contributions to TRSL.

25. GPO example (total offset)
EXAMPLE: Your spouse’s Social Security (SS) benefit is $1,200.
Before GPO Offset
After GPO Offset
Your TRSL benefit $
Your SS spousal pension $
Your TOTAL SS & TRSL benefit
$1,500
Your TRSL benefit $
Your SS spousal pension $
GPO offset: 2/3 of TRSL benefit
- $
Your SS spousal pension after GPO offset
Your TOTAL SS & TRSL benefit
(TRSL only)
$ 900

26. GPO example (partial offset)
EXAMPLE: Your spouse’s Social Security (SS) benefit is $1,200.
Before GPO Offset
After GPO Offset
Your TRSL benefit $
Your SS spousal pension
Your TOTAL SS & TRSL benefit
$1,200
Your TRSL benefit $
Your SS spousal pension
GPO offset: 2/3 of TRSL benefit
- $
Your SS spousal pension after GPO offset $
Your TOTAL SS & TRSL benefit
($200 SS + $600 TRSL)
$ 800

27. Windfall Elimination Provision (WEP)
Reduces your own SS benefit if you receive a government pension
Uses a modified formula to compute SS benefit, based on average monthly earnings adjusted for inflation
Does not entirely eliminate SS benefit

28. Exceptions to WEP offset:
WEP does not affect you if you meet one of the following exceptions:
Have at least 30 full years of “substantial” earnings in a job where you paid Social Security taxes.
Were eligible to retire from your TRSL-covered employment by December 31, 1985.
Were age 62 or acquired a disability before 1986.
Are a member of TRSL Plan B (school food service workers who also pay SS taxes).

29. WEP substantial earnings
Years
Substantial earnings $
$ 1,050
$ 1,200
$ 1,650
$ 1,950
1972
$ 2,250
1973
$ 2,700
1974
$ 3,300
1975
$ 3,525
1976
$ 3,825
1977
$ 4,125
1978
$ 4,425
1979
$ 4,725
1980
$ 5,100
1981
$ 5,500
1982
$ 6,075
1983
$ 6,675
Years
Substantial earnings
1984
$ 7,050
1985
$ 7,425
1986
$ 7,875
1987
$ 8,175
1988
$ 8,400
1989
$ 8,925
1990
$ 9,525
1991
$ 9,900
1992
$ 10,350
1993
$ 10,725
1994
$ 11,250
1995
$ 11,325
1996
$ 11,625
1997
$ 12,150
1998
$ 12,675
1999
$ 13,425
2000
$ 14,175
Years
Substantial earnings
2001
$ 14,925
2002
$ 15,750
2003
$ 16,125
2004
$ 16,275
2005
$ 16,725
2006
$ 17,475
2007
$ 18,150
2008
$ 18,975
$ 19,000
2012
$ 20,475
2013
$ 21,075
2014
$ 21,750
2015
$ 22,050
2016
2017
$ 23,625

30. Formula for determining WEP
WEP formula
First $885* of earnings is multiplied by a factor between 40% to 90%. (Percentage depends on the number of years of substantial earnings.)
Next, up to $5,336* of earnings is multiplied by 32%.
Finally, the remainder is multiplied by 15%.
* Dollar amounts are subject to change each year.
Important: The WEP reduction is limited to ½ of your TRSL monthly benefit.

31. Determination of percentage
Years of substantial earnings
Percentage
30 or more
90% 29
85% 28
80% 27
75% 26
70% 25
65% 24
60% 23
55% 22
50% 21
45%
20 or fewer
40%

32. $1,000 monthly average Social Security benefit
WEP example
$1,000 monthly average Social Security benefit
Social Security with government pension
$885 × 40% = $354
$115 × 32% = $36.80
SS pension = $390.80
39% of benefit
Important: The WEP reduction is limited to ½ of your TRSL monthly benefit.

33. TRSL & Social Security
YES, it’s possible to draw both TRSL and Social Security in retirement.
The provisions of the Social Security Administration reduce the benefits provided by SS.
TRSL benefits are not reduced.
For detailed information about your Social Security benefit, please contact the Social Security Administration.
Website:
Toll-free: (Mon - Fri, 7 am - 7 pm)
Contact your nearest SS office

34. Summary
TRSL recommends you coordinate your retirement or DROP beginning date with your employer. You can submit your retirement application as early as six months before your desired date of retirement or DROP beginning date.
If you return to work in a TRSL-covered position, you are subject to TRSL return-to-work laws. If you are rehired in a position not eligible for TRSL membership, you are not subject to any TRSL return-to-work laws.
Since Louisiana does not pay into SS for the majority of its public employees, your SS benefit may be reduced upon your TRSL retirement. Your TRSL benefit will not be reduced.

35. Online access to your TRSL account
Member Access is a secure website where you have all the tools you need to plan for retirement:
View service credit, contributions and beneficiary designations
Create a benefit estimate
Update your name or address
Apply for retirement
Create your account today!

36.
Find it online…
Forms
Brochures
Newsletters
& More!

37. Things to do now Register for Member Access.
Submit copies of important documents:
Social security cards (member and beneficiary/ies)
Birth certificates (member and beneficiary)
Legal documents (including divorce decrees, judgment of separation, and/or community property settlements)
Update address.
Update beneficiary/ies.
Get a retirement estimate… submit Form 10 or on Member Access

38. Questions?

39. We are here for you!
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