1. 5-4-3 to Retirement

2. Topics we will be covering today
5-4-3 to Retirement
Topics we will be covering today
Retirement Income
Insurance Benefits
Medicare and Your State Health Insurance
Return to Work as a Retiree
Resources

3. ORP OPTIONAL RETIREMENT PROGRAM
Retirement Income at
Retirement
ORP OPTIONAL RETIREMENT PROGRAM

4. Retirement Benefit Your retirement benefit may come from:
Teacher Retirement System (TRS) or
Optional Retirement Program (ORP)
Health Ins.-- Employee Retirement System (ERS) administers the Texas Group Benefits Program (GBP) insurance benefits for eligible retirees

5. TRS RETIREMENT Normal Age Retirement Early Age Retirement
Disability Retirement

7. TRS Retirement Eligibility for Normal Age Retirement
Vested (5 years of service)
Age 65 yrs. old or
Rule of 80 (age plus years of service equal)
Became member prior to September 1, 2007 combination of any age
Became member after September 1, 2007 but prior to September 1, at least age 60
Became member after September 1, 2014 at least age 62

8. Standard Annuity
TRS uses the following formula to calculate a normal-age monthly standard annuity:
Average of Highest Five* Annual Salaries (based on creditable compensation) = Average Salary
Total Years of Service Credit x 2.3% (multiplier) = Total %
Total % x Average Salary = Annual Annuity
Annual Annuity ÷ 12 = Monthly Standard Annuity
*Grandfathered Members (Tiers 1, 4 and 6) have their standard annuity calculated using the average of their highest three annual salaries.
1. $36,000 – Average of Highest Annual Salaries (using creditable compensation for three or five years, according to your tier)

9. The standard annuity will be reduced for one or more of the following reasons:
you are eligible for early-age retirement, but not normal-age retirement (based on your tier),
you are eligible for (based on your tier) and elect the Partial Lump Sum Option (PLSO),other reductions required by law.
you elect one of the optional retirement payment plans (Option One, Two, Three, Four, or Five) instead of the standard annuity payment plan,

10. Optional Forms of Annuity
Standard Annuity -100%
Option 1: Percent Joint and Survivor Annuity
Option 2: Percent Joint and Survivor Annuity
Option 3: Monthly Payments
Option 4: Monthly Payments
Option 5: Percent Joint and Survivor Annuity
Note: If your beneficiary deceases before you, you have to notify TRS and they will adjust your Annuity to the Standard Amount (Options 1,2 and 5).

11. TRS Service Credit Provisions
Eligible TRS members may purchase:
Limited amounts of eligible service credit (e.g., military time, Out-of-State Service Credit,, )
Previously withdrawn TRS service credit
State Sick and or Personal Leave Service Credit
The cost of these services are determined by TRS

12. TRS Service Credit Provisions
TRS members with:
at least three years of TRS service credit, and
service credit with the Employees Retirement System (ERS) for Texas state agency employees can transfer their ERS credit to TRS at retirement (and vice versa).

13. TRS members with service credit in:
other Texas public retirement plans that participate in the Proportionate Retirement Program
(certain cities, counties or other governmental entities) TMRS, TCDRS, City of Austin, Austin Police Retirement System, El Paso Fireman and Policemen Pension Fund and El Paso City Employees Pension Fund
may combine their credit from all participating plans to qualify for retirement and receive a proportionate annuity from each plan.

14. TRS Retirement Eligibility and Benefits
Death Benefit of $10,000
In lieu of the $10,000 lump sum amount, survivor benefits consisting of a $2,500 lump sum payment plus a monthly payment, are also available according to the following designations:
To a beneficiary spouse, $250 per month for life beginning when your spouse reaches age 65 or at your death, whichever is later.
To a beneficiary spouse who has one or more minor children, $350 per month, continuing until the youngest child reaches age 18. At age 65, or when the youngest child reaches 18, whichever is later, your beneficiary spouse would begin receiving $250 per month for life.
To minor children beneficiaries, $350 per month with two or more children less than age 18, or $250 per month with only one child under age 18. Payments cease when the youngest beneficiary turns age 18.

15. Ready to Retire Steps that you need to take
Contact TRS six months prior to your anticipated retirement date and request TRS Estimate of Retirement or a TRS Retirement Packet (you can choose up to two different dates of retirement).
Call request packet at or
go online to

16. CLICK HERE

18. Be sure and check your address and Beneficiary
Sally Lumberjack
Date of Birth: 07/03/1962
Gender: Female
2301 Lumberjack Lane
Nacogdoches, Texas
Be sure and check your address and Beneficiary

19. ORP Retirement Eligibility
Vested after one year and one day
Meet the Rule of (age plus years of service) or
Age 65 yrs. old

20. Ready to Retire Steps that you need to take
Contact your Vendor six months prior to your anticipated retirement date and request an appointment to sit down and go over your retirement options.
You will choose how and when to take distributions, including complete or periodic withdrawals and for some accounts, lifetime annuities. Early withdrawal penalties may apply.
Note: ORP Retiree will always have to maintain an ORP Account with an approved Vendor from SFA to qualify for the Health Insurance.

21. ORP Retirement Benefits
There are no provisions in ORP to:
purchase service credit
transfer or roll over non-ORP funds into the plan (including any pre-election TRS contributions), or
take out a loan or financial hardship withdrawal

22. Insurance Benefits at Retirement

23. Insurance Eligibility
Criteria to meet:
Vested in your Retirement (TRS or ORP) and meet the Rule of 80 or age 65
At least 10 years with a GBP agency
Last place of public employment must be a GBP agency
An ORP account (ORP members only)
Your
Benefits Coordinator determines your eligibility

24. Retiree Insurance Premium
Grandfathered Employee: To be considered a Grandfathered Employee you had to be enrolled in Health benefits for 5 service years on September 1, 2014 with an agency that participates with the GBP.
10 years of Health Insurance - 100%
If not grandfathered, the state contribution is based on your years of service with an agency that participates in the GBP:
50%
with 10 up to 15 years
75%
with 15 up to 20 years
100%
with 20 or more years

25. Coverage Start Date Coverage for retiree health insurance:
Starts first of the month following your last date of employment, if you have met Normal Age or Disability Retirement requirements

26. Health Insurance at Retirement Before Age 65
No waiting period for health insurance or optional coverage
Automatically Enrolled in Health Select of Texas
Sign up for Medicare Part A and Part B
Automatically enrolled in HealthSelect Medicare Advantage and HealthSelect Medicare Rx
Health Insurance when you turn age 65:

27. Medicare and Your State Health Insurance
Medicare Advantage
This will be your Primary Insurance. This card should be given to your Medical Providers. Medicare Part A & B is still active but you will
not provide this to your Medical Providers. Medicare Advantage will
file your Medicare A & B insurance for you.
HealthSelect Secondary
Medicare Part A & B are your Primary Insurance and HealthSelect will be your secondary insurance. Both cards should be given to your Medical Providers.
HealthSelect Medicare RX
This will be the prescription drug coverage for both plans.

28. Health Insurance at Retirement age 65 or more
Medicare Part A (if you have not already)
Medicare Part B
No waiting period health insurance or optional coverage
Automatically enrolled in HealthSelect Medicare Advantage and HealthSelect Medicare Rx

29. At This Time:
ERS allows the option to OPT OUT of Medicare Advantage Plan and elect to go with HealthSelect Secondary of Texas.
If this is what you choose to do, you will need to contact ERS directly at
This process will also happen to a dependent (spouse) on your insurance that turns age 65 and you will have to go through the same process to change them as well.
NOTE: If this option is chosen, you will have to remain in Humana Medicare Advantage for one month (29 days) and then ERS will switch you to HealthSelect Secondary.

30. Retiree Coverage Options
You have 30 days to make changes on your Retiree Insurance Enrollment Statement.
Basic Life ($2,500)
Dental
Vision
Optional Term Life – Elections 1 and 2
(reduces starting at age 70 and every 5 years there after) or
$10,000 Fixed Optional Life
Dependent Term Life – ($2,500)
TexFlex – COBRA
Note: If you decease before your dependent(s), they will receive Cobra paperwork to continue coverage but we will no longer pay a portion of their health insurance cost.

31. Return To Work Retiree How it will affect your Retirement Income
ORP RETIREE: You are eligible to return to work the next day. No waiting period required. The ORP Retirement that you have setup with your Vendor is not affected by returning to work.
TRS Retiree: You have two options to return to work after a 30 day waiting period or after a one year waiting period.
30 day break: as long as you work no more than 50% it will not affect your Retirement Annuity. However if you go over 50% any amount of time it will affect your Retirement Annuity. TRS looks at the number of hours available in a month to month bases.
One year break: If you have a full one year break you are allowed to return to work without affecting your Retirement Annuity.

32. Health Insurance Coverage
Return To Work Retiree
Health Insurance Coverage
Retiree age 65 or older, returns to working % or more then Health Insurance coverage makes a major change.
If you are enrolled in HealthSelect Medicare Advantage this insurance goes away and you are enrolled in HealthSelect of Texas Secondary and it becomes your primary payor and Medicare Part A and B becomes secondary payor.
If you are enrolled HealthSelect of Texas Secondary this insurance becomes primary payor and Medicare Part A and B becomes secondary payor.
Once employment ends as a Return to Work Retiree (RTW) then your insurance reverts back to automatically enrolling you in Medicare Advantage plan. For those that want to be in HealthSelect Secondary of Texas you will have to go back through the process of contacting ERS and opting out and electing the HealthSelect Secondary of Texas. Remember you will have to be in Medicare Advantage Plan one month before you can be switched over.

33. Summary of what needs to be done for Retirement
TRS Retiree send off for your retirement packet approximately 6 months before Retirement date.
ORP Retiree schedule appointment with your ORP Vendor approximately 6 months before your Retirement date.
Call HR Department and schedule an appointment 2 months before your retirement date to review/finalize your Retirement Packet and complete paperwork for your Health Insurance with ERS.
TRS could take up to 60/90 days to complete your retirement process and for you to receive your first annuity check.
Contact Social Security for Medicare Part A & B and your Social Security Retirement.

34. BENEFITS CONTACT INFORMATION
Barbara Hunter Or
Aleta Spivey

35. Resources
Human Resources – Power Point Presentation (in April 2018)
TRS -
TRS HANDBOOK, January
ERS -
Click on the Retiree Tab - Scroll to bottom of the page to find information about health, prescriptions, dental, vision and all optional benefits and additional links.
Blue Cross/Blue Shield -
Social Security -
BENEPLACE (for employee discounts) -