Dreams of Mountains, Beaches, and Other Exotic Places

1
Dreams of Mountains, Beaches, and Other Exotic
Places

• Retirement Through The Texas Teacher Retirement
  System
• Suzanne Levan, Director Employee Benefits
• Terri Giese, Benefits Specialist

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TRS Service Retirement Options

• Regular Retirement - Rule of 80 - Age plus years
  of service equals 80 or
• Regular Retirement - Age 65 and 5 years of
  service
• Early Retirement Age 55 with 5 or more years of
  service or below age 50 with 30 or more years of
  service
• Disability Retirement 10 years of service
  required for lifetime benefit

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How is the TRS benefit calculated?

• Average of your 3 highest or 5 highest annual
  salaries (whichever applies)
• Total years of service credit x 2.3 total
• Total x average salary annual annuity
• Annual annuity -- 12 monthly standard annuity

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Benefit Calculation

• Grandfathered
• Final average salary at retirement will be
  determined by the highest three salaries
• Members age 55 or older with 20 to 24 years of
  service credit who take early retirement receive
  a reduction in their annuity, but the reduction
  is subsidized (reduction is in the 90-98
  range)
• Partial Lump Sum Option eligibility is age 65
  with 5 years or Rule of 80 (and not in DROP or
  retiring with disability benefits)

• Not Grandfathered
• Final average salary at retirement will be
  determined by the highest five salaries
• Members age 55 or older with 20 to 24 years of
  service credit who take early retirement receive
  a reduction in their annuity, but the reduction
  is not subsidized (reduction as low as 47)
• Partial Lump Sum Option eligibility will require
  a combined age plus years of service credit
  equaling at least 90 (and not in DROP or retiring
  with disability benefits)

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Payment Options

• Six choices
• Standard
• Options 1 5
• Options 1 5 reduce your monthly annuity amount
• Varied benefits for beneficiaries

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Standard Annuity

• Largest monthly annuity option
• Example 30 years of service
• Three annual salaries 38,000 42,000 46,000
• Average salaries 42,000
• 30 years X 2.3 69 X 42,000 28,980 divided
  by 12 months 2415 monthly annuity from TRS

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Standard Annuity

• Maximum monthly benefit from TRS
• Annuity throughout the life of the retiree
• Upon death of retiree, beneficiary receives
  10,000 death benefit

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Option 1 Joint Life

• Reduces the monthly amount the retiree receives
• Retiree must choose a primary beneficiary
• Upon the death of the retiree, beneficiary
  continues to receive the same monthly annuity
• 10,000 death benefit
• Retiree annuity goes to standard annuity if
  beneficiary dies first

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Option 2 50 Joint Life

• Reduces the monthly retiree annuity
• Retiree must choose a primary beneficiary
• Upon the death of the retiree, beneficiary
  continues to receive half the monthly annuity
• 10,000 death benefit
• Retiree annuity goes to standard annuity if
  beneficiary dies first

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Option 5 75 Joint Life

• Reduces the monthly retiree annuity
• Retiree must choose a primary beneficiary
• Upon the death of the retiree, beneficiary
  continues to receive 75 of the monthly annuity
• 10,000 death benefit
• Retiree annuity goes to standard annuity if
  beneficiary dies first

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Option 3 5 Year Guarantee

• Reduces the monthly retiree annuity
• Guarantees the annuity to beneficiary for the
  remainder of the 5 years if retiree dies within 5
  year period from date of retirement
• 10,000 death benefit
• Retiree lives more than 5 years, beneficiary
  receives only 10,000 death benefit

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Option 4 10 Year Guarantee

• Reduces the monthly retiree annuity
• Guarantees the annuity to beneficiary for the
  remainder of the 10 years if retiree dies within
  10 year period from date of retirement
• 10,000 death benefit
• Retiree lives more than 10 years, beneficiary
  receives only 10,000 death benefit

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Lump Sum Option

• Must be eligible for unreduced retirement benefit
• May choose cash distribution equal to 12, 24, or
  36 months times the standard annuity
• Reduces monthly amount received on all options
• Taxable cash or roll over to an annuity

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Retirement Health Insurance Options

• TRS Care Programs
• -TRS Care 1 High deductible, no cost to retiree
• -TRS Care 2 High deductible, PPO-type plan with
  co-pay for dr. and drug coverage
• -TRS Care 3 Lower deductible, PPO-type plan
  with co-pay for dr. and drug coverage
• NISD Retiree Medical
• -Bank draft
• -Retiree pays full premium
• NISD Retiree Dental
• NISD Retiree Vision
• Medicare, military, or private insurance

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TRS Care

• TRS Care eligibility requirements for
• Service Retirees after September 1, 2005
• 10 years of service credit which may include up
  to 5 years of military service credit but may not
  include any other special service credit and
• 1. Rule of 80 is met or
• 2. 30 or more years of service credit in TRS

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Enrolled in Other Health Insurance?

• You can waive TRS-Care coverage at time of
  retirement if you have coverage through another
  group insurance plan (e.g., thru spouse or other
  employment)
• In the future, if you are unable to continue that
  coverage by decision of the other provider, you
  may request to enroll in TRS-Care at the time the
  other coverage terminates
• Contact TRS-Care for additional information
  (1-800-223-8778, ext 6456)

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Some of the Benefits that TRS-Care Covers

• Hospitalization
• Emergency Room
• Ambulance
• Medical Equipment Supplies
• Maternity Care
• Second Opinions
• Mental/Nervous Conditions
• Prescription Drugs

• Additional Benefits
• Flu Shots
• Screening Mammography
• Pap Test
• Prostate Screening Test
• Colon cancer screening
• Immunizations for children up to age 12

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Additional Coverage Tier Increase Opportunity

• Retirees enrolled in TRS-Care who are not yet age
  65 can increase their coverage tier and add
  dependents when they reach age 65.
• Retirees enrolled in Medicare Part A may choose
  any tier of TRS-Care.
• Retirees not enrolled in Medicare Part A may
  increase coverage by only one plan tier.

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TRS-Care Highlights

• Premiums based on total years of creditable
  service and Medicare status for TRS-Care 2 3,
  and Medicare status for TRS-Care 1
• Various Deductibles TRS-Care 1 and premiums for
  TRS-Care 2 and 3
• Not eligible for Medicare
• With Part A B of Medicare
• With Part B of Medicare

• Network vs Non-Network
• Network benefits are greater than non-network
  benefits
• TRS-Care 2 3 office visit co-pays in network
• Does not apply when Medicare is primary
• Prescriptions through Caremark, Inc
• TRS-Care 1 treated like any other medical
  expenses
• TRS-Care 2 3 co-pays for prescriptions

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Recent TRS Care

• Refer to TRS Handout titled TRS-Care Eligibility
  for complete details
• Specific eligibility questions should be directed
  in writing to TRS Benefit Processing

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Choosing a Retirement Date

• Your retirement is effective no earlier than the
  last day of the month in which you terminate your
  employment.
• If you work into the month of June, but no later
  than June 15th, you may be eligible for a May
  retirement date.
• You may want to consider when you will have
  credit for the school year and/or your full
  annual salary.

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NISD Steps to Retirement

• Contact TRS 90120 days prior to anticipated
  retirement date Submit TRS 18 Form now
• If desired, schedule appointment with Benefits or
  TRS for assistance with paperwork once packet
  received
• Read orange booklet inside your TRS packet for
  instructions on completing paperwork (checklist
  in the back).

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NISD Steps to Retirement

• Must notify Benefits Department at least 4 weeks
  prior to the May payroll cut-off date for a May
  payout.
• Must notify Benefits Department by April 12 to be
  assured mention in the Retirement Ceremony
  Program on May 2 at Stevens High School.

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NISD Steps to Retirement

• Submit to Principal and HR Staffing Letter of
  Resignation Retirement
• Submit to Benefits Letter of Resignation
  Retirement, blank TRS7 Notice of Final Deposit
  (TRS packet), signed Sick Leave Buy-Back
  Agreement (Benefits Office)
• Complete Supplemental Life Insurance Portability
  Request (from Benefits) and make payment to UNUM,
  if desired

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NISD Steps to Retirement

• Active employee benefits terminate on the last
  day of the month you work for NISD
• TRS7 Notice of Final Deposit sent to TRS after
  final paycheck is produced
• Sick Leave Buy-Back paid after final paycheck

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Would You Like to Return to Work?

• Employers will be required to pay a monthly
  surcharge to the pension fund for each retiree
  working in a TRS-covered position and reported to
  TRS. The pension surcharge is an amount equal to
  the sum of the combined state and member
  contributions (currently 12.4 of salary). Also,
  the employer must pay a health benefit surcharge
  for each retiree enrolled in TRS-Care and working
  in a TRS-covered position. The amount of the
  health benefit surcharge is the amount of the
  difference between the retirees premium
  (including dependent coverage) to TRS-Care and
  the actual cost of the coverage as determined by
  TRS.
• Employers surcharge payments as described above
  are not due for a retired employee who
• Was reported by the employer to TRS as a retiree
  working for that same employer for the report
  month of January 2005, or
• Is working as a substitute, or
• Is working less than half-time, or
• Is working as a temporary employee for a period
  of less than 4-1/2 months

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Resources

• TRS Phone Number
• 1-800-223-8778
• TRS Website
• www.trs.state.tx.us
• Employee Benefits
• 397-8620