1. Financial Services Academy
PLANNING FOR RETIRMENT
RETIREMENT SERVICES

2. Agenda Retirement Services General Plan Information Retirement Process
Retirement Planning

3. Retirement Services

4. Our Brand
Executive Director Accounting and Retirement Services
Greta Tinaglia
Professional Assistant
Tania Muniz
Retirement Coordinator
Ersula May
Retirement Specialist
Fredrica Jones
Maurice Roebuck
Financial Analyst
Bernadette Vanterpool
Rierre Robinson
Who we are?
RETIREMENT SERVICES
What we do? To provide efficient and cost effective quality retirement services to our members and their families.

5. Contact Information
Fulton County Schools Retirement Services 6201 Powers Ferry Road Atlanta, GA

6. GENERAL PLAN INFORMATION

7. FCS Retirement Plans Teacher’s Retirement System of Georgia
FCS Employees Pension Plan
Tax Sheltered Investments

8. Teacher’s Retirement System
Majority of our employees are TRS
1988
State Administered/ Legislative
 81.9 % Funded Ratio (ranked 12 nationally)
Retirement Services

9. Defined Benefit Plan $$$$$$$$$$$$$$$$$$$$$ TRS Mandatory
Employee contributes 6.0%
Employer Contributes the rest
Income Stream
$$$$$$$$$$$$$$$$$$$$$
Retire Death at 85
The Good News, TRS/FCS will replace about 60% of your pre-retirement income for the rest of your life. Participation in the DB plan is mandatory along with a 6 (TRS only) or 6.66 (Safety Net with Beneficiary coverage) percent contribution. The employer contributes the rest on your behalf.

10. Eligibility for Retirement
30 Years Service (no age requirement)*
60 Years of age (10 Years of Service)
25 Years of Service (penalty for every year under 60)
Disability (10 Years of Service)
*If dually enrolled( Safety-Net participant)- must be age 55.

11. TRS Formula
Years of creditable service, including partial years
Basic monthly benefit under Plan A Maximum
Highest 2. consecutive yrs. of salary 2%
Subject to applicable taxes and applicable deductions, such as SHBP coverage.
Additional concepts available for discussion:
We will discuss the components of the formula in more detail later, but we wanted to show you the formula first, because that concept is likely one of your biggest concerns.
Creditable service includes partial years of service, if you had any in your career. Members could work past 40 years and still earn a larger benefit from TRS if their high average salary is earned beyond their 40th year of covered work.
The high average salary is based on the highest consecutive 24 months of compensation. TRS uses “earnable compensation” to compute the benefit, which is your full regular gross pay for full normal working time and regular supplements in your written contract. To verify if a supplement is included in salary reported to TRS, you can check if the TRS contribution amount is coming out of your supplemental pay.
When we compute your benefits under all the available plans of retirement, we start with your Maximum benefit and then work backwards based on actuarial considerations, such as life expectancies.

12. Full Gross Plan A Maximum Benefit
Example
Basic Benefit Calculation Example:
Date of Retirement = 6/01/2013
Highest 2 of Consecutive Yrs of.
Salary = $5, (occurs from 9/2008 through 8/2010)
Member’s years of creditable TRS service =
Years of Service
Additional concepts available for discussion:
Closing: The initial benefit amount under the Maximum Plan becomes the starting point when we calculate your benefit under the other options – as you will see in next slide, which is part of an actual estimate.
$5,536.83
Highest 2
Consec. Yrs
Of Salary
$3,814.21
Full Gross Plan A Maximum Benefit 2%

13. Sick Leave Service Credit
Unused Sick Leave for Service Credit
TRS grants 1.25 days per month worked
After 10 years, Fulton awards additional sick leave
Service Credit Purposes
Only TRS awarded leave may be counted

14. Sick Leave Service Credit
Manual calculation versus employee express
Contact Maurice Roebuck
Allow at least 2 weeks

15. Sick Leave Conversion-TRS
60 days minimum
Conversion Chart –
Days Credit
0 to months
60 to months
70 to months
90 to months
110 to months
130 to months
150 to months
170 to months

16. FCS Employees Pension Fund
Positions not eligible for TRS. i.e. Bus Drivers, Cafeteria Workers, Maintenance, Custodial
Prior to 1988
Full Administration by Retirement Services
Governed By FCSEPF Pension Board

17. Defined Benefit Plan $$$$$$$$$$$$$$$$$$$$$ FCSEPF Mandatory
Employee contributes 5.6 or 6.6%
Employer Contributes the rest
Income Stream
$$$$$$$$$$$$$$$$$$$$$
Retire Death at 85
The Good News, TRS/FCS will replace about 60% of your pre-retirement income for the rest of your life. Participation in the DB plan is mandatory along with a 6 or 6.66 percent contribution. The employer contributes the rest on your behalf.

18. Eligibility for Retirement
30 Years Service *
65 Years of age (10 Years of Service)
25 Years of Service (penalty for every year under 60)
Disability (10 Years of Service)
*If dually enrolled( Safety-Net participant)- must be age 55.
No restriction with 30 years
55 with 25 years with penalty
60 with 25 years
65 with 10 years

19. FCSEPF Formula
Years of creditable service, including partial years
Basic monthly benefit
3 Year High average salary 2%
Subject to applicable taxes and applicable deductions, such as SHBP coverage.
Additional concepts available for discussion:
We will discuss the components of the formula in more detail later, but we wanted to show you the formula first, because that concept is likely one of your biggest concerns.
Creditable service includes partial years of service, if you had any in your career. Members could work past 40 years and still earn a larger benefit from FCS Pension if their high average salary is earned beyond their 40th year of covered work.
The high average salary is based on the highest consecutive 36 months of compensation.
When we compute your benefits under all the available plans of retirement, we start with your Maximum benefit and then work backwards based on actuarial considerations, such as life expectancies.

20. Three Year High Average Salary
Example
Basic Benefit Calculation Example:
Date of Retirement = 6/01/2013
High Average Salary = $5, (occurs from 9/2007 through 8/2010)
Member’s years of creditable service =
Years of Service
Additional concepts available for discussion:
Closing: The initial benefit amount under the Maximum Plan becomes the starting point when we calculate your benefit under the other options – as you will see in next slide, which is part of an actual estimate.
$5,536.83
Three Year High Average Salary
$3,814.21
Monthly Benefit 2%

21. FCSEPF Beneficiary Coverage
Elect Coverage at Hire Date or prior to term
Contribute additional 1%
Eligible Beneficiary receives up to 70%

22. Tax Sheltered Investment Plans
Vendor Administered
Three District Approved Vendors
Valic
Lincoln
TIAA- CREF
Open to all employees

23. Tax Sheltered Investments
Optional
Employee Directs Investments and assumes risk
Employee Contributions Only
Balance $ $ $ $ $ $ $ $
Death $
Retire $0
Another way we can address our gap is through saving with our Tax Sheltered Investment Program through the District. A TSI is different from our traditional defined benefit plan in many ways. First for us the TSI is optional meaning we can elect to contribute or not. The employer contributes zero. In our case the TSI is meant to supplement our primary db plan. The most important difference is that the TSI will distribute a balance and once that balance is depleted you will not receive anything further.

24. TSI Mechanics 403 B and 457 B Elective Deferrals:
$18,000/yr. if under age 50
$24,000/yr. if 50 and older
Enroll or Stop Deductions at any time
Choose investment options
Cannot access the money without tax penalty
Exceptions
Loans
Hardship Withdrawals

25. Social Security Administration
Please contact your local SSA office for further questions about social security

26. Windfall Elimination Provision
WEP Earnings Calculation:
$0-$856 * .40 not .90
$856-$5,157 *.32
$5,157 *.15
Max amount reduced with less than 30 yrs of Social Security substantial earnings for is $ or ½ your pension.
WEP Example (SS Earnings $3,000)
Unadjusted
$856*.90 = $770
$2,144 *.32 = $686
Benefit = $1,456
WEP
$856*.40 = $342
Benefit = $1,028
WEP Penalty = $428

27. TRS and Social Security
Windfall Elimination Provision
Government Pension Offset
Social Security
Low wage earners higher percentage
If less than 30 Year Earnings of Substantial Earnings:
$0-$856* .90
$856-$5,157 *.32
$5,157 *.15
10 Years or 40 Quarters SOMEWHERE ELSE you may be Soc. Sec Benefit eligible
However Subject to WEP
Eligible for a Widow or Widower Benefit
Reduction of Benefit by 2/3 of TRS Pension
Example
Widows Benefit = $4,000
TRS Benefit = $3,700
Adjusted Benefit = $1,534

28. QUIZ Question 1 I am a bus driver which plan to I belong to? TRS PSERS
FCSEPF
All of the above
Answer c!

29. Quiz Question 2 When can I retire from TRS
20 years service regardless of age
Whenever I feel like it
Age 55 regardless of service
30 Years
Answer d!

30. Quiz Question 3 Where can I get a 403 B Plan? The Fulton Credit Union
SunTrust Bank
Valic, Lincoln or Tia-Creff
My Uncle Jimmy’s Broker
Answer c!

31. RETIREMENT PROCESS

32. Process Timeline Aug Oct Dec 2018 Apr Jun Aug FCS Application /
4/30/2018
Intent to Retire
TRS Check
2/28/2018
6/15/2018
Aug
Oct
Dec
2018
Apr
Jun
Aug
School Year Starts
School Year Ends
8/7/2017
5/24/2018
FCS Check
TRS Application
8/31/2018
3/31/2018

33. STEP 1 SUBMIT INTENT TO RETIRE FORM (FEBRUARY)

34. Online Intent to Retire

38. STEP 2 SUBMIT TRS APPLICATION MARCH
TRS Application can be located on TRS Website -

39. TRS APPLICATION

40. SUBMIT FCS PENSION APPLICATION
STEP 3
SUBMIT FCS PENSION APPLICATION
(APRIL)

42. STEP 4 APPLY FOR POST RETIREMENT BENEFITS (MAY)
VISION
HEALTH
STEP 4 APPLY FOR POST RETIREMENT BENEFITS (MAY)
LIFE
DENTAL

43. Sample Benefits E-mail
Employee : Intent to Retire Benefits Process Status
Congratulations! Your retirement is in process, and you have only a few things left to do to finish the paperwork regarding your final pay and benefits.
All of the forms and information referenced in the steps listed can be accessed by following the link at the bottom of this .
1. Complete and return the Payout of Sick Leave Waiver Form to the Payroll Department, if you elect not to receive your sick leave payout. Please click here for Sick Leave Waiver form.
2. Contact your 403(b) or 457 plan vendor if you wish to shelter some or all of your sick leave payout in your pre-tax plan (Optional). A complete list of vendors and contact information is available at under the “Retirement” heading.
3. Review the Benefit Packet for plan details, and elect or decline plans. Return the form(s) to the Employee Benefits Office (Required). PLEASE SELECT HERE FOR BENEFITS PACKET. COMPLETE AND RETURN TO EMPLOYEE BENEFITS OFFICE OR FAX TO QUESTIONS REGARDING RETIREE BENEFITS
4. Review the Benefit Packet for plan details, and elect or decline plans. Return the form(s) to the Benefits Office. (Required)
Questions regarding the Payout of Sick Leave should be addressed to the payroll department at or
Questions regarding the receipt of the 403(b) or 457 contribution change should be addressed to Retirement Services: or
Questions regarding your benefits should be addressed to the Benefits Department: or

44. Health Insurance State Health Benefit Plan (SHBP)
Must have insurance at time of Retirement
Retiree Option Change Period
If you drop insurance during retirement, NO reenrollment
Automatic Transfer when TRS retiree

45. Medicare
Retirees age 65+ should enroll in Medicare Part B & submit Medicare ID card to SHBP
Retirees age 65 + will be enrolled in a Medicare Advantage Plan through United Healthcare
Retirees not enrolling in Medicare will be charged full premium for selected plan

46. Dental Insurance Delta Dental Insurance-effective 01/01/2015
Two coverage tiers available: Single, Family
No Open Enrollment Period
If you drop insurance during retirement, NO reenrollment

47. Vision Insurance Davis No Open Enrollment Periods Three Coverage Tiers
Single, Employee + 1, Family
If you drop insurance during retirement, NO reenrollment

48. Life Insurance
$20,000 of Group Term Life with Unum Life Insurance Company
Rates will vary depending on age at retirement
Rate changes effective July 1 every year
Additional Life Insurance carried as an active employee will not automatically transfer into retirement
Arrangements with the company if you wish to continue the policy into retirement
Deductions for these cannot be made from your retirement check
If you drop insurance during retirement, NO reenrollment

49. Our Best Advice Read your retirement emails
Read them again
Save them in a Folder Called Retirement
Follow all instructions carefully

50. QUIZ Question 1 How do I begin the retirement process
Tell the principal
Write a letter to the Retirement Office
Submit an intent to retire on the Employee Portal
Call HR
Answer c!

51. QUIZ Question 2
What should I do FIRST if I don’t understand something in the process?
Tell the principal
Read my retirement s
Call the Retirement Office
Panic
Answer b!

52. QUIZ Question 3 True or False
When I turn 65 I do not have to apply for Medicare because I have a government pension
Answer
False!

53. RETIREMENT PLANNING

54. When do you need to start planning your Retirement?
NOW!

55. Components of a Successful Retirement
Financial Security
Family
Work
Health

56. Desired Retirement Lifestyle
GO GO Years
Kids In College?
Pay off House?
Will I Work?
Travel?
Slow Go Years
No Go Years
Medical Expenses
Estate Planning
What is my desired and or likely retirement lifestyle? We are fortunate in public education in that we are eligible to retire at a young age. As our lifespans have increased our retirement lifestyles are evolving. In our grandparents generation 50 was considered old and you were ready for the rocking chair. I heard I believe it was Clark Howard give a perfect analogy we have our go go , slow go and no go years. Due to medical advancements we are able to enjoy our Go Go years much longer It’s important to think what each stage will look like for you and each person will be different. I know in my own personal situation my mother retired about fifteen years ago and is no 74 still very much in her go go years, in fact I rarely see her My in laws on the other hand are the same age and are firmly in their slow go years where you start to stay at home more and maybe travel modestly etc Then we have our No Go Years and here is where we really start to think about medical expenses, medical power of attorney, estate planning etc. Again your personal situation will impact here. Bottom line when thinking about retirement it is important to evaluate what your needs both financial and otherwise will be in each stage of retirement.

57. How will I finance my lifestyle?
How much income will I need to support my lifestyle?
How will I finance my lifestyle? How much income will I need at each stage of my retirement? The Good News, TRS/FCS will replace about 60% of your pre-retirement income for the rest of your life. So at this stage of your career it is appropriate to begin thinking about how you will fill the gap. Do you want to work or have other income sources?

58. Defined Benefit Plan $$$$$$$$$$$$$$$$$$$$$ TRS and or FCS (60%)
Income Stream
$$$$$$$$$$$$$$$$$$$$$
Retire Death at 85
The Good News, TRS/FCS will replace about 60% of your pre-retirement income for the rest of your life. Participation in the DB plan is mandatory along with a 6 or 6.66 percent contribution. The employer contributes the rest on your behalf. I am going to pause here and introduce Brett.

59. “The GAP” 100% My Defined Benefit Plan My Defined Benefit Plan
The not so great news. Our defined benefit plan will cover us for 60% leaving a gap. The size of your gap will be dependent upon your desired lifestyle. If you will need 100% of your current income in retirement you will have a 40% Gap to address. If you need 80 you will address 20% etc.

60. How will you fill the Gap
Working for the District?
Working somewhere else?
Social Security?
TSI?
Other Savings?

61. Tax Sheltered Investments
Earlier the Better
Balance $ $ $ $ $ $ $ $
Death $
Retire $0
Another way we can address our gap is through saving with our Tax Sheltered Investment Program through the District. A TSI is different from our traditional defined benefit plan in many ways. First for us the TSI is optional meaning we can elect to contribute or not. The employer contributes zero. In our case the TSI is meant to supplement our primary db plan. The most important difference is that the TSI will distribute a balance and once that balance is depleted you will not receive anything further.

62. Do I intend to stay in public education?
Refund of Contributions- Can roll to an IRA
FCS 6.6%
TRS 6%
Vest
10 years and 60 vs 65
Can I transfer my service?
TRS GA
Service Purchases
If you are considering a career change and you have less than 10 years of service you may apply for a refund of contributions from the DB plan which you may then roll into an IRA or other tax sheltered product to avoid tax. If you have 10 years you may wish to leave your contributions in and receive a lifetime benefit from the plan once you attain retirement age of 60 or 65 dependent upon your plan. Once you withdraw your contributions however you are no longer entitled to any benefit from the plan. Another common question is what happens if I leave FCS and go to another district? If you are a member of TRS y and you employ at another GA Public School District your TRS Service will transfer with you. If you leave the state and employ in a different state you may be eligible to purchase years of service in that District using your contribution refund. Check with the District you are transferring in to.

63. Do I want to provide for my spouse or other dependents?
Do I want to provide beneficiary coverage?
Do I have financial responsibilities to others?
What about life insurance?

64. What will my healthcare needs be?
Coverage in Retirement
How much will this cost me?
Do I get Medicare?

65. Goal of Retirement Planning
YES NO

66. QUIZ Question 1
TRS or FCS will generally replace what percentage of my income?
60%
100%
40%
90%
Answer a!

67. QUIZ Question 2 When is the best time to start to plan for retirement?
Two months before retirement
Immediately
A Year in advance
Never
Answer b!

68. Conclusion
Any questions?