To the Planning for Retirement Seminar

1
WELCOME

• To the Planning for Retirement Seminar!

2
Todays Agenda

• Arizona State Retirement System
• Dennis Balkema, Senior Benefits Advisor
• Retiree Insurance
• Mona Gibson, TUSD Benefits Office
• Retirement Savings Plans
• Mona Gibson, TUSD Benefits Office
• Payroll Information
• Ivy Corey, TUSD Payroll Office
• Return to Work
• Sue Wybraniec, HR Executive Dir

3
ASRS - Preparing for the Future

• Dennis Balkema, Sr Benefits Advisor

4
Keep Up To Date

• Review your ASRS Annual Statement
• Financial Horizons Newsletter
• Review our web-site www.azasrs.gov
• Forms
• Retirement Service Purchase calculators
• Employee and Employer Handbooks
• Helpful Links
• Personal Information

www.azasrs.gov
5
Things To Do

• Inform ASRS of changes
• Attend ASRS Meetings
• Know Your Benefits Meeting (from new hire to
  within 5 years of retirement)
• Getting Ready to Retire Meeting (within 1 year of
  retirement)
• Explore sources of supplemental income
• Evaluate Health Insurance options / costs

www.azasrs.gov
6
Contacting ASRS

• By Phone
• Member Services Advisory Center (Phoenix)
• From Tucson 239-3100
• From outside Tucson 1-800-621-3778
• By Mail PO Box 33910 Phoenix 85067-3910
• By E-mail Contact Us through our web site
• In Person Tucson office (7660 E Broadway, Suite
  108 near Pantano)

www.azasrs.gov
7
Retirement

• Normal Retirement
• 80 points Sum of age credited service
• Age 62 with 10 or more years of credited service
• Age 65 with any amount of service
• Early Retirement
• Age 50 with 5 or more years of credited service

www.azasrs.gov
8
Defined Benefit Formula
www.azasrs.gov
9
Graded Multiplier
www.azasrs.gov
10
Service Purchase

• Increase years of service
• Types of Service Purchase
• Forfeited Service from ASRS
• Other Public Service (qualified sources)
• Military Service (active, reserves, guard)
• Leave of Absence from ASRS employer
• Contributions Not Withheld
• Attend Know Your Benefits Meeting
• Service Purchase brochure

www.azasrs.gov
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Retirement Example

• 20 years Credited Service
• X 2.15 Graded Multiplier
• X 3000 Average Monthly Compensation
• 1290 Mo. Benefit (Normal Retirement)
• X Early Retirement Factor
• Reduced Monthly Benefit (Early Retirement)
• Percentage depends upon how early

www.azasrs.gov
12
Other Member Benefits

• Long Term Disability
• Health / Dental Insurance for retirees
• Survivor Benefits
• Should you leave your ASRS employer, you may
  leave money on deposit, earn interest, and
  maintain Survivor Benefits

www.azasrs.gov
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TUSD Benefits InformationMona Gibson, Benefits
Manager
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Important Steps

• Submit Intent to Retire form to HR
• Contact ASRS for schedule of Group Meetings
• Contact Social Security if applicable

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Important Steps

• ASRS Ending Payroll Verification
• Send to Les Lauen in HR
• Complete Section 1 only
• DOR day after last day worked
• HR fax to ASRS after last check
• Call if get letter from ASRS after last check is
  posted (usually 2nd letter)
• ASRS adjusts pension with last check information.

16
When Do My Benefits End?

• School Year Employees
• June 30, 2009
• All Other Employees
• Last day of the month in which you retire.

17
Retiree Medical Insurance

• Two Options
• Arizona State Retirement System (ASRS)
• COBRA Continuation of Elections
• NOTE
• The ASRS Premium Benefit (subsidy) only applies
  to insurance enrollment with ASRS and/or
  Employer-sponsored, specifically COBRA.

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ASRS Retiree Insurance

• Contact ASRS about their plans.
• Enroll with ASRS now for medical and/or dental.
• Enroll with ASRS at a later date
• Upon conclusion of COBRA
• At ASRS open enrollment
• Or experience of a qualifying event (i.e.,
  turning Medicare eligible)

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COBRA

• Continuation of your medical, dental, vision
  and/or employee assistance program (EAP) coverage
  elections at time of retirement.
• Elect to continue all, some or one.
• Coverage lasts up to 18 months.
• No Medicare plan available.

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How Will I Be Notified?

• Information will be mailed to your home address
  AFTER your retirement date.
• Election Notification of Insurance options from
  COBRA Administrator, Ceridian CobraServe.
• Be sure that your correct address is on file. To
  access the Employee Self-Service, go to TUSD
  Intranet gt Employee Self-Service and follow the
  instructions.

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COBRA Plans

• Same plans as employee continuation
• Medical
• Dental
• Vision
• EAP (Employee Assistance Program)
• Drop Dependents
• Change Plans if moving out-of-state.
• If electing COBRA, submit forms and payment to
  the COBRA Administrator (Ceridian) by the given
  deadlines.

22
COBRA Costs

• Rate total premium 2 Admin Fee
• Medical rate includes amount TUSD contributed
  when employed.
• Premium Benefit (subsidy) processed by TUSD.
• ASRS subsidy applied to Dental first.
• Must pay full premium until subsidized payment
  established (up to 3 4 months).

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Retirement Savings PlansMona Gibson, Benefits
Manager
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Separation Pay Plans

• TEA/White Collar, ELI and
• Exempt Administrator Agreements
• Unused sick / personal / vacation leave or
  service stipend paid to 403(b) plan with Great
  West instead of to employee in paycheck.
• ELI Age 50 and 10,000 minimum
• TEA / White Collar Age 55 and 3,000 minimum
• Exempt Administrators Age 50 and 10,000 minimum

25
Separation Pay PlanAdvantages

• No FICA taxes paid
• For every 1,000 in contribution, you save 76.50
  and never pay it back upon withdrawal
• No State or Federal taxes withheld
• 100 of contribution is invested
• No sales or surrender charges
• TUSD contribution 49,000 (less any 403(b)
  employee contributions in 2009)

26
Separation Pay Plan

• Funds will be available in account with Great
  West, approximately the end of July
• Withdrawal or tax free rollover of funds to an
  IRA after they have reached Great West are
  permitted at no cost

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Separation Pay Plan Withdrawals

• Cannot be Active, Returned to Work
• Under age 55 10 IRS penalty for early
  withdrawal
• Lump sum or partial withdrawals
• No FICA tax on withdrawals
• Both State and Federal taxes are due on amounts
  withdrawn.

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Separation Pay Plan Withdrawals

• Contact Great West at 1-877-816-0548 option 3 to
  set up your account before retirement (call at
  least one month prior).
• Application and investment options available
  today!
• If planning rollover to ASRS consider money
  market option.

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Normal Leave Payout - Retirement Account Deferral

• Defer Taxes!
• Contact a TSA agent or tax advisor to contribute
  your payout to a 403(b) or 457 plan.
• Use SRA card to direct funds to 403(b).
  Available today.
• Contact Great West to direct funds to 457 in the
  month before you retire.
• Maximum Deferral
• 22,000 for age 50, both 403(b)/457

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TUSD Payroll InformationIvy Corey, Payroll
Associate
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Last Paycheck

• School year employees June 19, 2009
• All other employees See the handout or contact
  the Payroll Office

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Earned Not Paid (ENP) Participants

• When you retire or separate from employment
• All Earned Not Paid funds will be on your last
  paycheck.
• Taxed as regular earnings, not 25.
• W-4 Changes - submit by June 1st.
• 403(b) change/cancel turn in SRA to Benefits by
  May 27th.

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Leave Payout Forms

• Pre 91 Estimate Request Form
• Administrators Certified Employees with 20
  Years of Service
• Submit to Payroll

• Leave Estimate Worksheet
• Employee Calculates

Both Available Today!!
34
Normal Leave Payout

• Supervisory / Professional, Supervisory /
  Confidential, Blue Collar
• TEA / White Collar under age 55 with leave payout
  or service stipend less than 3,000
• ELI under age 50 with leave payout less than
  10,000
• Exempt Administrators under age 50 with leave
  payout less than 10,000

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Normal Leave Payout

• Leave payouts (including service stipends) are in
  July of the new fiscal year
• Formula and qualifications vary by bargaining
  unit

36
Normal Leave Payout Deferral Deadlines

• School Year Employees
• 403(b) May 19, 2009
• Great West 457 Enroll by April 30, 2009.
• All Other Employees
• The month before termination.

37
TUSD Employment Sue Wybraniec, HR Exec Director
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TUSD Return To Work

• ASRS 20/20 Rule applies.

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TUSD Contact Information

• Payroll
• PAYROLL_at_tusd1.org
• 520-225-6150
• Benefits
• BENEFITS_at_tusd1.org
• 520-225-6144
• HR Employment
• 520-225-6035