Alternate Benefit Program ABP Retirement Seminar

1
Alternate Benefit Program(ABP) Retirement
Seminar

• Sponsored by
• University Human Resources
• 732-932-3020, ext. 4077

2
ABP Retirement Seminar Outline

• Steps to retirement
• Receiving your retirement income
• Health benefits at retirement
• Life insurance at retirement
• Information for staff employees
• Determining last working day
• Sick leave payout
• Compassionate Leave Program
• Rutgers retiree associations
• Telephone contacts
• Useful websites

3
Steps to Retirement

• 6-8 months before retirement
• Request information about payout options from
  investment carrier
• 4-6 months before retirement
• Notify your department
• Determine last working day (staff employees)
• Contact Social Security office (if you plan to
  apply)
• 3 months before retirement
• Complete Application for Retirement Allowance
• Make arrangements with carrier to withdraw funds
• If you or spouse or civil union/same-sex domestic
  partner is 65, enroll in Medicare A B

4
Steps to Retirement (continued)

• 1 month before retirement
• Call Prudential at 1-800-262-1112 for life
  insurance conversion if interested
• Shortly before retirement
• Enroll in Retired Group State Health Benefits
• Enroll in Retiree Dental Expense Plan
• Shortly after retirement
• Receive COBRA letter
• Receive cash settlement or annuity from
  investment carrier
• Sick leave payout (staff employees)

5
Receiving your Retirement Income

• Retirement income based on investment earnings
  and payout option
• How you receive your income is up to you
• For information on income options and allocation
  choices, contact carrier directly
• Must elect annuity or cash settlement to be
  retired otherwise not eligible for retiree
  benefits

6
Health Benefits at Retirement

• Active medical, prescription drug and dental
  coverage continues to end of retirement month
• Retiree medical benefits begin the first day of
  the month following retirement (enrollment
  required)
• Example January 1 retirement
• Active employee benefits end January 31
• Retired Group State Health Benefits begin
• February 1
• Retiree Dental Expense Plan begins
• February 1

7
Employees Who Attained 25 Years of
Pension-credited Service Prior to July 1, 1997

• No contributions required for Retired Group State
  Health Benefits
• Health benefits include medical and prescription
  drug coverage
• Full reimbursement for cost of
• Medicare Part B premiums
• (per individual) provided
• by the State

8
Employees Who Attained 25 Years of
Pension-credited Service Between July 1, 1997 and
June 30, 2007

• Contributions required for Retired Group State
  Health Benefits for NJ DIRECT 10 only (NJ DIRECT
  15 and HMOs are free)
• Premium sharing according to terms specified in
  agreement in effect at the time employee attained
  25 years of pension-credited service
• Rates for retirees who share the cost of their
  coverage with the State (in folder and on states
  website)
• http//www.state.nj.us/treasury/pensions/hb_open_
  enrollment_2009/hr-0744.pdf
• 46.10 - partial reimbursement of Medicare Part B
  premiums (per individual)

9
Employees Who Attained 25 Years of
Pension-credited Service On or After July 1, 2007

• Health contribution of 1.5 of 50 percent of the
  highest salary received in the five years prior
  to retirement
• Waived if enrolled in the SHBP Retiree Wellness
  Plan
• Agree to and submit Pledge for Healthier Living
• Complete a Health Risk Assessment annually
• Have a medical check-up annually
• Have appropriate tests and screenings when
  recommended
• Participate in health plans disease management
  program when recommended.

10
Employees Who Retire with Less than25 Years of
Pension-credited Service

• Option to enroll in Retired Status State
• Health Benefits and pay full group rate
• Do not qualify for reimbursement
• of Medicare Part B premiums
• Rates for retirees who pay the full cost for
  their coverage
• (rates in folder and on states website)
• http//www.state.nj.us/treasury/pensions/hb_open_
  enrollment_2009/retired-state-full-cost.pdf

11
Surviving Spouses or Civil Union/Same-Sex
Domestic Partners of Retirees with 25 Years of
Pension-Credited Service

• Surviving spouse or civil union/same-sex domestic
  partner may continue retiree health
• Will be required to pay full group rate
• Will not qualify for reimbursement of Medicare
  Part B premiums

12
Enrolling in Retired Group State Health Benefits

• Enrollment packet mailed from NJ Division of
  Pensions and Benefits to home address
• State Health Benefits Retired Status Application
• Available at http//uhr.rutgers.edu/documents/SHB
  PRetApp.pdf
• If packet is not received month prior to
  retirement call the NJ Division of Pensions
  office of Client Services at 609-984-1683
• Complete and return Application to the Division
  of Pensions and Benefits
• Proof of enrollment in Medicare required for
  retiree and/or dependent 65 or older

13
Retiree Dental Expense Plan

• Dental plan designed for retirees
• Administered by Aetna Dental
• Retirees pay full cost
• Continues as long as
  
• premiums are paid
• More information available
• http//www.state.nj.us/treasury/pensions/shbp.htm
  

14
Health Benefit Coverage Changes

• Coverage may be changed once during a 12-month
  period
• Coverage changes after a qualifying event
• Special enrollment
• Rate changes
• New offerings
• For questions regarding coverage, call the
  Division of Pensions and Benefits Retiree
  Benefits Office at 609-984-1683

15
Continuation of Non-core Benefits through COBRA

• COBRA packet mailed from Human Resources to home
  address
• Dental coverage may be continued through COBRA
  for 18 months
• Active employee (Caremark) prescription drug
  coverage may be continued through COBRA for 18
  months
• Vision coverage may also be continued though
  COBRA for 18 months
• COBRA rates on University Human Resources
  website
• http//uhr.rutgers.edu/documents/cobrarates2010.p
  df

16
Life Insurance at Retirement

• Must have 10 years pension-credited service
• Must be at least age 60
• Must collect retirement benefit (cash or annuity)
• Amount ½ times last 12 months salary

17
Conversion of Life Insurance

• One time option to convert to individual private
  policy through Prudential
• Must be done no later than 31 days after
  retirement date
• Cannot be denied for health reasons
• May want to contact other carriers for comparable
  life insurance rates
• To convert, contact the Prudential Group Life
  Conversion department at 1-877-889-2070
• You can also use the online Prudential Life
  Insurance Calculator at http//www.state.nj.us/tr
  easury/pensions/conversion-calc.htm
• Group number is G-14800

18
Determining Last Working Day(Staff Employees
Only)

• Unused vacation, accrued vacation, AL days and PH
  days are to be taken prior to retirement
• Plan ahead since last day in office may be
  several weeks or months before actual retirement
  date
• Employee and department should come to an
  agreement regarding last day of work

19
Last Day of Work Calculation Example

• Janes retirement date June 1
• Jane earns 20 vacation days per year
• Days remaining
• Number of vacation days remaining 10
• Number of AL days remaining 1
• Number of PH days remaining 2
• Number of vacation days accrued (July May)
  18
• University holiday (Memorial Day) 1
• Total days to be used prior to retirement 32
• Count backwards 32 days from June 1
• Janes last work day April 15

20
Sick Leave Payout (Staff Employees)

• Eligible staff employees receive one half the
  balance of their sick days up to 15,000
• All applicable taxes will be deducted
• Allow 8 to 10 weeks processing time
• Sick Leave Payout at Retirement
• Deferral form can be used to defer
• sick leave payout
• Deferral form available from Human Resources
• http//uhr.rutgers.edu/documents/Sick_Leave_Defer
  .doc

21
Compassionate Leave Program (Staff Employees)

• Donated-leave bank program for qualifying
  managerial, professional, supervisory, and
  confidential employees, as well as members of the
  URA-AFT and AFSCME Local 888, who experience
  catastrophic health conditions and will exhaust
  all of their paid time off
• Eligible employees can donate up to 50 vacation
  and/or sick leave days to the leave bank
• To donate, complete and submit Donation to Bank
  form available at http//uhr.rutgers.edu/document
  s/CompassionateLeaveDonate.doc

22
Retired Faculty Association (RFA)

• Serves needs and interests of retired faculty
• Sponsors workshops and other events
• Members receive RFA Bulletin
• Join by completing membership application
• Annual membership dues 10.00
• For more information visit the RFA website
• http//scils.rutgers.edu/rfa/rfawebform.html

23
Silver Knights Rutgers Staff Retirees Association

• Serves needs and interests of retired staff
• Sponsors workshops, trips, luncheons
• Members receive Silver Knights Herald
• newsletter
• Join by completing membership application
• Annual membership dues 10.00
• For more information, visit the
• Silver Knights website
• http//scils.rutgers.edu/silverknights/

24
Telephone Contacts

• Division of Pensions and Benefits
• Retiree Benefits 609-984-1683
• Client Services 609-292-7524
• Deferred Compensation 1-866-657-3327
• University Human Resources 732-932-3020 ext 4077
  
• Social Security 800-772-1213
• Internal Revenue Service 800-829-1040
• NJ Division of Taxation 800-323-4400

25
State-authorized Investment Carriers

• AXA Equitable 866-786-0856
• The Hartford 800-243-7782, ext. 54400
• ING Financial 877-873-0321
• MetLife 732-652-1322
• TIAA-CREF 866-842-8412
• VALIC 800-448-2542

26
Useful Websites

• University Human Resources
• http//uhr.rutgers.edu/
• Internal Revenue Service (IRS)
• http//www.irs.gov/
• Medicare
• http//www.medicare.gov/
• Social Security Online
• http//www.ssa.gov/
• NJ Department of Banking and Insurance
• http//www.state.nj.us/dobi/index.shtml
• NJ Department of Health and Senior Services
• http//www.state.nj.us/health/
• NJ Division of Pensions and Benefits
• http//www.state.nj.us/treasury/pensions/