1. USD 259 Retirement Seminar
Hosted by
Employee Benefits & Insurance Management Dept. USD 259
January 2009 Retirement Seminar

2. USD 259 VOLUNTARY EARLY RETIREMENT PLAN
“The Bridge”
January 2009 Retirement Seminar

3. Requirements for Eligibility
Hire or rehire in a benefited position prior to July 1, 1996
15 years or more in a benefited position with USD 259
At least age 50 but not over 65
Vested with KPERS
Employee group must participate
Must apply for retirement by the last working day in February, if you wish to receive Bridge payments anytime during the next fiscal year.
January 2009 Retirement Seminar

4. Not Required . . .
You do not need 85 points to qualify for the District’s Early Retirement Program, known as the “Bridge”.
You do not need to be 60, if leaving employment to be eligible to “vest” your Bridge benefits.
January 2009 Retirement Seminar

5. You may be eligible… If you’re at least age 50 but not over 65, and
You have 15 or more years in a benefited position with USD 259.
Contact the Retirement Office before terminating to determine if you are eligible for the “Bridge”.
If you are terminated from employment, you no longer qualify for the “Bridge”.
January 2009 Retirement Seminar

6. Work Restrictions after Early Retirement
After retirement you are ineligible for employment with USD 259 in any capacity other than as a substitute employee.
Any exception to this policy concerning employment will be subject to approval by the Superintendent of Schools.
January 2009 Retirement Seminar

7. “Bridge” Consists of Bridge Payment BOE Life Insurance until 65
BOE Health Insurance available, if you pay the premium and meet the qualifications
Note: Must be receiving KPERS retirement Benefits to begin “Bridge” payments.
January 2009 Retirement Seminar

8. Bridge Payment . . . Monthly payment until age 65
May include two parts:
Social Security “Bridge”
KPERS “Bridge”
January 2009 Retirement Seminar

9. BOE “Social Security Bridge”
Begins at age 60 (or at retirement if older)
Ends at age 62
Maximum of 24 payments
Payment based on
Social Security estimate
Reduced by 5% for each year under 20 years of USD 259 service.
January 2009 Retirement Seminar

10. BOE “KPERS Bridge” Begins at age 60 (or at retirement if older)
Ends at age 65
Maximum of 60 payments
Payment based on
Final Average Salary with KPERS
Years of service with KPERS *
*Note: Any Purchased (Buyback) service are excluded
(e.g.: Forfeited, Military or Out of State Service)
1.4% multiplier for participating service
January 2009 Retirement Seminar

11. Bridge Taxes Bridge Payments are taxable for: Federal Income Taxes and
State Income Taxes
Note: Consult your tax advisor on any tax consequences.
January 2009 Retirement Seminar

12. Example: Retire at age 60, $55,000 final average salary, 25 years of service
Age 60 up to age 62
KPERS lifetime benefit $ 2,000
USD 259 Bridge-KPERS (60 to age 65)1,650
USD 259 SS Bridge (60 to age 62) 1,200 Total Monthly Retirement Benefits $ 4,850

13. Example: Retire at age 60, $55,000 final average salary, 25 years of service
Age 62 up to age 65
KPERS lifetime benefit $ 2,000
USD 259 KPERS Bridge (60 to age 65) 1,650
Total Monthly Retirement Benefits $ 3,650
If you apply for Social Security benefits at age 62,
you could start receiving reduced benefits of approx. $1,200.

14. Example: Retire at age 60, $55,000 final average salary, 25 years of service
KPERS lifetime benefit $ 2,000
Total Monthly Retirement Benefits $ 2,000
If you apply for Social Security benefits at age 62,
you could start receiving reduced benefits of approx. $1,200. For you full benefits date, contact Social Security.

15. Social Security (if started at 62) $__?__ Total $4,850
Example: Retire at age 60, $55,000 final average salary, 25 years of service
Age KPERS $2,000
USD 259 (KPERS) Bridge $1,650
USD 259 (Social Security) Bridge $1,200
Total $4,850
Age KPERS $2,000
USD 259 (KPERS) Bridge $1,540
Social Security (if started at 62) $__?__
Total $4,850
Age KPERS $2,000
Social Security (if started) $___?_
Total $3,200
January 2009 Retirement Seminar

16. Bridge Life Insurance Options
BOE Life Insurance until 65
Life Premium paid by USD 259
Benefit amounts same as district life benefits - this is $30,000 (for most employee groups)
This is in addition to $4,000 from KPERS or any additional purchased from Minnesota Life.

17. Health Coverage Options at Retirement
If you wish to participate in the USD 259 Health Plan as a Retiree. You must enroll for coverage with Employee Benefits by your retirement date or coverage will be terminated.
At this time, you and your spouse may stay on the USD 259 health plan.
USD 259 Retiree premiums are subject to change based on yearly negotiations (premiums can be 125% of what BOE or employees pay).
Investigate and explore other health plan coverage options
Senior Health Insurance Counseling for Kansas (SHICK)
AARP
Other Individual & Group Policies
January 2009 Retirement Seminar

18. Health Coverage Options at Retirement
Retirement at or after age 65 (with spouse age 65 or older)
No longer eligible for USD 259 health plan
Must sign up for Medicare A, B & D or a supplemental plan.
January 2009 Retirement Seminar

19. Health Coverage Options at Retirement
Contact Employee Benefits to speak with Judy Foy, Health Plan regarding coordination of coverage with Medicare for you and your covered spouse.
January 2009 Retirement Seminar

20. Health Coverage Questions
For USD 259 Health Plan:
Coventry Customer Service:
Judy Foy: or
Medicare:
(local )
SHICK: ext 0117
January 2009 Retirement Seminar

21. Factors to Consider before Retiring Early
Retirement is a major lifestyle change
Salary and longevity end
Social Security
Health Care Costs
KPERS Benefits Change
Earnings Limits
Return to Work Options
Increased Life Expectancy / Effects of Inflation
Effective Date of Retirement
January 2009 Retirement Seminar

22. How much money do you need to retire?
Financial planners recommend % of your working income.
Where will your money come from?
Social Security
KPERS
Personal Savings and Investments
USD 259 Bridge (if eligible)
January 2009 Retirement Seminar

23. Your Responsibility:
Contact the retirement office for retirement counseling appointment to sign retirement paperwork.
Deadline to sign if you plan to draw in the next fiscal year, July 2011 to June 2012, forms signed by 25th of February, 2011.
If leaving district, you must sign Pre-Early Retirement forms prior to leaving to vest your rights to benefits starting at 60.
KPERS requires proof of age and any legal name changes.
Must notify KPERS and USD 259 Human Resources of address changes.
Must notify KPERS and USD 259 Payroll Dept. of banking institution before starting benefits or if any changes after retirement.
January 2009 Retirement Seminar

24. USD 259 Early Retirement Deadlines
Bridge Benefits in the next fiscal year- forms signed by last working day in February. Fiscal year runs July 1, 2011 to June 30, 2012.
If leaving district this year, but wish to draw Bridge benefits after next fiscal year - you must sign Pre-Early Retirement forms prior to leaving to vest your rights to benefits starting at 60.

25. Calculators USD 259 Bridge Calculator KPERS Calculator
KPERS Calculator
January 2009 Retirement Seminar

26. Questions About KPERS or the “Bridge”
Leilani Hook,
USD 259 Retirement Specialist or
January 2009 Retirement Seminar