1. Guilford County Schools Jeannie Greer Benefits Department
Retirement Seminar
Guilford County Schools
Jeannie Greer
Benefits Department
Smarter Living

2. Retirement Eligibility Requirements
Reduced Retirement:
1. Age 50 with 20 years of services
2. Age 60 with 5 years of service
Unreduced Retirement:
3. Age 60 with 25 years of service
4. Age 65 with 5 years of service
5. Any age with 30 years of service
Health Insurance is provided with reduced and unreduced retirement (if eligible).
Effective 10/1/06 new employees must have 20 years of service to be eligible for
health insurance.

3. Preparation for Retirement
Decide on your retirement date(all retirement dates are on the first day of a month).
Review your personal information through the ORBIT system at to check service credit.
Once you review your information on ORBIT you should then complete Form 309 requesting an estimate from the Retirement System (6 months to 1 year before retirement date).

4. Preparation for Retirement Cont’d
Or you may visit the NC Department of State Treasurer Retirement website at: .
Once you are on the website you will need to:
click on [ORBIT]
scroll down to [Retirement Benefit] & click on it
select Type of Member (Teachers’ and State Employees’)
select Member Date of Birth
select Beneficiary Date of Birth
select Retirement Date
key Total Service at Retirement (not including sick days),
key average highest 4 consecutive years of salary (which is your 4 highest consecutive years divided by 4)
key accumulated Sick Leave Days
click calculate.

5. Retirement Appointments
You must have an estimate before scheduling a retirement group meeting to complete the retirement paperwork.
me 6 months before your retirement date to schedule an group meeting to complete your paperwork.
During the group meeting, we will discuss your retirement service years, review your benefits and your leave days.
NOTE: (Paperwork cannot be completed until 120 days
prior to retirement date per state law).

6. Sick Leave
20 days of sick leave equals 1 month of service credit that will add to your years of service.
There is no limit on sick leave days.
For the final month, any increment over .125 will count towards the final month of service. This means if you have at least 1 hour of a day you will earn 1 month of sick leave.

7. Other Leave Time
Personal Leave Personal leave days will convert to sick leave (classroom teachers and media specialists). Annual Leave You will be paid out for up to 30 annual leave days. Bonus Leave You will be paid out for any bonus leave you have. Longevity You will also receive prorated longevity if applicable.

8. 401k/Annuity
If you wish to contribute your payout amounts of annual leave, bonus leave and longevity in a lump sum to your 401k or Annuity, I will give you the instructions for this process.
You must be participating in these programs before your last paycheck is issued.
For answers about how much you are allowed to put into your annuity, you must work through your broker.

9. Health, Dental & Life Insurance
Health, dental and life insurance will end with GCS at the end of the month in which you retire.
Health Insurance: is part of retirement for your lifetime (if eligible). NC Retirement System will auto enroll you into an insurance plan the month after your retirement date. Premiums will be deducted from the retirement check.
You may cover eligible dependents at current premium rates.
As a retiree when you or a covered dependent turn 65 you must sign up for Medicare Part A and B.

10. Health, Dental & Life (continued)
At that time Medicare A & B are Primary and the State Plan is secondary. (Once retired you will not be eligible for 80/20 plan at 65 or older).
Dental Insurance: Your current dental plan may be kept 18 months under COBRA provisions. It is your responsibility to pay the premiums.
Life Insurance: You may convert or port any or all optional life insurance you have with Met Life (convert means change to a new policy, port means to keep the same policy.)

11. Other Insurance
Flex Benefits: These plans will end on your resignation date. You may continue certain flexible benefits after retirement. Gilsbar Flex Spending Account: No advantage to continue. Vision Insurance: You will receive notification to elect COBRA for 18 months. Allstate Cancer Plan: You must contact the company to continue this policy. # Texas Life: You must contact the company to continue these policies. #

12. Retirement System’s Benefits
Death Benefit: The NC Retirement System will offer you a $10,000 death benefit policy.
Dental, Vision and Life Insurance: The NC Retirement System contracts the Pierce Insurance Agency to offer you dental, vision and life insurance plans after retirement. If chosen, these premiums will be deducted from your retirement check.
Note: You may elect to COBRA your current GCS dental and vision plans for 18 months if you choose to and once the 18 months are complete you may join the retirement system’s dental and vision plan.

13. Required Retirement Forms and Documents
Form 6 - Claiming Your Retirement Benefits
Form PS-33 - Resignation Form
Requirements
Driver’s License or Birth Certificate (Copies)
Copy of Beneficiary’s Driver’s License or Birth Certificate and their social security number if interested in Payment Option 2 or 3 and
Social Security Statement if interested in
Payment Option 4

14. Process
Form 6 and resignation will be signed and dated during group meeting, copies of the forms will be mailed to your home address.
I will forward the original forms to the Retirement System and Human Resources for processing.
Upon receipt the Retirement System will send you the following paperwork:
Notification Letter
RET Authorization Agreement for Direct Deposit
RET-333, BEN-333- Notice of $10,000 Contributory Death Benefit for Retired Members and beneficiary form
Form 6E-Election of Benefits (select payment option)
Form RET-290-Notice of Tax Withholding (federal and state)
Form 336 – Designating Beneficiary(ies) for Guaranteed Refund
Report of Estimated Retirement Benefits
Note: Once the retirement system receives the completed form 6E you will receive notification regarding auto enrollment for the health insurance. You need to call to make sure you have been enrolled in correct insurance plan, make a change or to decline coverage.

15. Taxes
All retirement checks are subject to Federal Withholding Taxes.
As a retiree you may change your tax selections anytime you feel you need to increase or decrease the deductions.
Consult your tax advisor regarding your options before making your final decision about taxes after you retire.

16. Taxes (continued)
If you had 5 full contributory years in the State as of August 12, 1989, you are exempt from paying State Withholding Taxes; Otherwise, you are subject to paying them on your retirement.
If you had five years and took the money out and bought back the time, you forfeited the exemption and are still subject to the taxes.

17. Checks
When you retire, your first check is always mailed out on the 25th of the month so you receive it about the 28th or 29th.
After you cash your first check all future checks are direct deposited into your account on the morning of the 25th.
In December, they are typically posted on or about the 20th.
Retirement checks are paid 12 times per year.

18. How the Payment Options Work
Maximum Payment
To You each month for the rest of your life.
$2,742.00

19. Payment Options Option 4 Social Security Leveling
100% Joint And Survivor
You receive reduced monthly
payments for life. After you die,
your beneficiary receives the same
amount monthly for life.
To You To Beneficiary
$2, $2,277.00
Option 3
50% Joint And Survivor
You receive reduced monthly
payments for life. After you die,
one-half of your payment continues
to your beneficiary for life.
To You To Beneficiary
$2, $1,244.00
Instead of the maximum payment, you can choose one of the following payment options.
If you elect to provide some monthly payment to a beneficiary after your death by choosing Option 2, 3, or 6, you give up some of your retirement benefit while you are living. (Option 6 next page) The amount you give up is placed in reserve to be paid to one beneficiary after your death. (A beneficiary for a monthly benefit cannot be named as beneficiary for the guaranteed refund.) The amount your retirement benefit is reduced depends on the amount of your maximum payment benefit, your age, and the age of your beneficiary.
Option 4 continued…
Beginning at age 62, your monthly payments will be reduced to an amount that is less than what you would otherwise be entitled to receive. Nevertheless, your reduced retirement payments after age 62 plus your allowance from the Social Security Administration should be approximately the same amount as the inflated payment you received from the Retirement System before age 62. However, the actual amount of your retirement payment both before and after age 62 will be based on the estimate of benefits provided by the Social Security Administration prior to your retirement. All monthly payments cease at your death.
The reduction in your monthly retirement payments after age 62 allows the Retirement System to recover the inflated amounts you received before age 62. Therefore, on the average, the inflated amounts received before age 62 together with the reduced amounts received after age 62 are equal in value to the other retirement plans over your life expectancy.
Under Option 4, any percentage increase you are granted in your retirement payments before age 62 will be applied to the inflated benefit you are receiving at that time; however, upon reaching age 62 your retirement payments will be reduced to the original percentage increases (not the dollar amount of increases) granted before age 62.
Option 4
Social Security Leveling
You receive larger monthly payments
than you would otherwise be entitled
to receive, until you become eligible
for Social Security at age 62.
To age $ 3,242.00
Age 62 and after $2,042.00

20. Option 6 Modified Joint And Survivor
Option combination of Option 2 and *maximum payment
To You Beneficiary
$2, $2,218.00
Option combination of Option 3 and *maximum payment
$2, $1,226.00
*If beneficiary dies before retiree, retiree monthly amount will convert back to maximum payment.
You receive reduced monthly payments under a combination of Option 2 and the maximum payment, or under Option 3 and the maximum payment. Your death, or the death of your beneficiary, affects monthly payments .
Option 6-2 Under a combination of Option 2 and the maximum payment, your death entitles your beneficiary to receive a monthly payment for life in the same amount as you received. However, if your beneficiary dies before you do, your monthly payments are increased to the amount payable under the maximum payment.
Option 6-3 Under a combination of Option 3 and the maximum payment, your death entitles your beneficiary to receive a monthly payment for life of one-half the amount you received. However, if your beneficiary dies before you do, your monthly payments are increased tp the amount payable under the maximum payment.
Under Options 2, 3, and 6, you may name only one beneficiary to receive a monthly payment after your death. Generally, if your beneficiary dies before you do, you may not name another. You may change your beneficiary after you retire only in the event of your divorce from the beneficiary, or if you return to covered employment and contribute to a new retirement account for at least three years.
Under Options 2 and 3, you may name a new spouse as your beneficiary, if at retirement, you designated your spouse for your survivor benefits. However, if this spouse dies before you, and you subsequently remarry, you may name your new spouse as your beneficiary within 90 days of your marriage under the same option as you chose at retirement. Your new benefit will be actuarially reduced on the basis of your age and the age of your spouse at the time of the change.
Your new beneficiary designation will be effective on the first day of the month in which it was made, and it will provide retirement benefits that were in effect prior to your new beneficiary designation. The benefit payable to you will be the benefit you received prior to the death of your original spouse, reduced actuarially in order to cover your new spouse as beneficiary.

21. Example of Estimate To You To Beneficiary
Department of State Treasurer
TEACHERS’ AND STATE EMPLOYEES RETIREMENT SYSTEM
325 North Salisbury Street
Raleigh, North Carolina Nov.-2004
PRELIMINARY ESTIMATE OF RETIREMENT BENEFITS
Jane A Doe S. S. #
777 Deer Crossing Lane
Deer Park, NC A.#
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
ASSUMPTIONS USED FOR PRELIMINARY ESTIMATE OF BENEFITS
Date of birth /26/44 Total service credits
Retirement date /01/08 Aver. Final compensation $58,964.00
Sick leave days Total contributions $69,664.04
Annual leave days Taxed contributions $10,000.00
Est. monthly SS (age 62) $ 1,200.00
Beneficiary:
John A. Doe Beneficiary birthdate: /15/44
At your death
To You To Beneficiary
MAXIMUM PAYMENT $2, None
PAYMENT OPTIONS
(2) 100% Survivorship $2, $2,277.00
(3) 50% Survivorship $2, $1,244.00
(4) Social Security Leveling
To Age 62 $3, None
Age 62 and after $2, None
(6) Pop-up
With option (2) $2, $2,218.00
With option (3) $2, $1,226.00
GUARANTEED REFUND (under all of the payment plans above): If you and the beneficiary (if any) you may have to receive………………………………………………………………………………………
*The estimate under Option (4)…………………………………………………………….
***Based upon your age……………………………………………………………………
*Disclaimer*

22. Re-employment After Retirement
Cap | Under current legislation, all state employees may return to work under a cap. A 6 month break is required for all retirees returning to state employment. The cap is determined by the Retirement System. Each year the standard cap changes in January. You must contact the Retirement System to determine your yearly cap.
Six-month Break | During the 6 month break the employee shall not work in any capacity in a organization participating in the Teachers’ and State Employees’ Retirement System, including part-time, temporary, substitute, part-time tutor or contracted services.
After the Six-month Break | A retiree may work as an interim, tutor, substitute, temporary status or permanent part-time (<30 hrs. per week). Employees in this capacity must not exceed earnings cap and must not be employed in permanent full-time status.

23. Reminders
Send your estimate request (Form 309) to the retirement system at least 6 months prior to your retirement or complete online estimate (see page 4 for instructions).
You should or call ( ) to schedule an appointment 6 months before your retirement date.
The earliest you may complete your paperwork is 120 days prior to your retirement date.
Do not complete your paperwork later than 60 days prior to your retirement date if possible due to the delay in receipt of retirement check.
Please advise your supervisor in a timely manner of your decision to retire.

24. Contact Information
The Retirement Handbook and all forms available from the Retirement System may be viewed and downloaded from the website at: . There is more than one state retirement system. Our retirement system is the: Teachers’ and State Employees’ Retirement System.
NC Department of State Treasurer, Retirement Systems Division
3200 Atlantic Avenue
Raleigh, NC 27604
Toll free line:
Fax number:

25. ORBIT
ORBIT stands for Online Retirement Benefits through Integrated Technology. You may access the system at
Click on ORBIT,
Scroll down, click register, create ORBIT account.

26. ORBIT cont’d
This system will allow you to view personal information, account summary, account history, view benefit estimate, annual account statement and track recent request.
You can also create a custom benefit estimate or service purchase estimate, request a current statement of your account or a counseling session and update your phone number and address.