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03-09-2021 - Retirement Informational Meeting

Added Mar 11, 2021 •

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Information provided by Rosaline Banks (Empower/RetireReady) - regarding eligibility to draw a TCRS pension. Information provided by Karen Naccarato (BCS - Supervisor) - regarding eligibility to continue benefits after retirement.

Show Transcript

this is Karen again I know everybody's time is precious and special it is a beautiful day outside so I want to go ahead and get started and hopefully the others will join him and won't have missed too much of this meeting today if you're in this meeting you're here to learn about retirement your ability to retire what eligibility of retiring would be can you carry your benefits and retirement so hopefully today I'll be able to answer some of those questions and then along with me I've got Rosalind Banks here she's with Empower but she for this part of the presentation is going to be the tcrs so she'll have determine you know what type of plan your options how to submit your retirement application and all that other good stuff cuz obviously pension and benefits hand in hand so I'm a go ahead and let her resent her portion first if you could please make sure I think everybody should be muted but please if you could remain you this is a pretty good-sized meeting and so we we just don't want everybody talking at once it's so if you could remain you did if you've got a question will pause and try to answer some questions but otherwise we'll try to answer as many questions at the end of the presentation so and we want to make sure that we answer those questions for everybody so if you got a question I'll try to take notes on those questions and we'll answer the begin the presentation so I'mma go ahead and share transfer my meeting over to Roslyn and we'll just keep on going macaron can you hear me yes I can okay just let me switch over here you go on this PowerPoint and can you see that miss Karen yes I can feel good afternoon everyone you might have heard me talk with you in previous years is going to be a recap I'll highlight up a few things that you want to think about in light of this new environment we operate in you never met me my name is rob banks and I'm the retirement plan advisor for Shelby County property as it relates to the state of Tennessee plan and I will share my information at the end obviously it's getting close to new retirement for some of you all or you know maybe it's not one of the things I say if you're within a few years I don't care if you're the beginning of your career the middle of your career the end the earlier that you meet with me it says if you're contemplating retirement the quicker we can get a plan in place to make sure that you have all your t's crossed in your eyes. Is okay so we're like McCarron said most of the questions that you have regarding ecrs will be answered during the presentation we will give you the time at the end to ask questions that you may have and so by now hopefully we all know what retireready Tennessee is I I call it the branding that state of Tennessee uses and it encompasses both the state of Tennessee pension which is Tennessee Consolidated retirement system and the 401K as it relates to Bartlett City School it's a defined benefit plan and that's just a fancy terminology for a pension plan and so it doesn't revolve around what the market is doing or anything like that you have the option of a lifetime retirement benefit you can also have a Survivor retirement benefit and for those that are necessary from time to time we see disability that would be something that you would deal with the medical board with but after meeting or vesting requirements if you're a legacy plan employee which means you started prior to July 2014 long as you've had five years of service you can be eligible and we'll talk about the ages and in a moment but either age 60 or 30 years of service we music formula with state of Tennessee to calculate your benefits I've only thing that I'll tell John on this slide is now there's 53.4 billion that state of Tennessee holes in a trust and obviously benefits are paid out of this Tennessee is one of the best funded pensions in the country their number 3 so the state of Tennessee does a really good job that's why you saw the introduction of hybrid plan in 2014 to make sure that the pension could stay healthy and we didn't run into situations that we see in other states what determines your benefit so of course the state looks add the average of your hired 60 consecutive months of salary we always hear a average high five but it's actually the highest 60 consecutive months if you have I'm not ever taking a look at your annual statement I would encourage you if you've never been on the tcrs website to go there and register so that you can see that I often have people say Rob work the full 12 months why does it say 5 months well what happens is that 60-month calculation is running and and whatever however much time has passed through the fiscal year it will have maybe it'll say five for a year that's passing but in the president would say 7 so it's running 60 months on that statement when you see that you're the service we look at that obviously if you only have five more years maybe you'll be able to pay your MLGW Bill and go to Chili's a few times versus people that actually have higher number of years it's the only way you can affect your pension benefit is through working longer and someone either working to increase your salary through promotion or professional development and then your agent retirement if you don't have 30 years and you taught trying to retire at 55 obviously you can retire but that's going to be a lower benefit we'll talk about that in a moment in the event that someone passes away prior retiring as long as you've actually worked five years your beneficiary will have some options as it relates to the money that you had contributed were saved in your tcrf Scout okay so survivor benefits are determined by whose designated as beneficiary generally if it's a spouse they have the option to take a lump sum and turn the money into an annuity so I lifetime payment and then obviously they look at the beneficiaries age length of service all those type of things but the options available depends on what relationship the beneficiary s there is a brochure on retire ready TN. Gov so one more time are ready TN as an tennessee.gov and if you go to that site and generally brings you on a cab and if you scroll down to the forms and guy you can find the officiary brochure you can find the program brochure for Legacy Retirement and we'll talk about something in the moment and you'll be able to find that brochure there as well some of you all who participate in the state of Tennessee 401 k in the case through 12 market right now in Bartlett City Schools we only offer the 401K and so definitely you have options in terms of that money as soon as you separate from the service through a retirement you're able to access that money so 401K as long as you are age 55 by the time you hire you can access your 401K money without a penalty we often say 59 and a half but 59 and a half actually applies to the individual retirement accounts or IRA tell if again if you're with the state of Tennessee and you are at least age 55 by the time you retire you can start withdrawing that money without getting that 10% penalty that we heard about over the years if you happen to be under 55 say you're 54 and you retire unfortunately you will have to wait till 59 and a half so that's the key sing I had a meeting with somebody who was planning on retiring at 54 but I when I talk to her because she needed the money that was going to be in her 401 k she's decided to do an additional year cuz she's not want to wait till age 59 and a half all right into a course you're automatically vested in the 401K you can leave the money in with the state of Tennessee I will tell you and I say this as a salad read advisor oftentimes advisors get a bad rep for state of Tennessee advisors do any of the tcrs retire ready and power advisors we are salaried employee who do not work or commission not to say that if advisers at work on commission or bad I was not a bad advisor when I was an advisor at Merrill Lynch but you generally will have a lower cost staying with the government plan whatever options you have through your employer versus going to the retail world where you're going to have in your account fee that are higher you're going to have higher fees for the mutual fund different things that you may encounter you may have an advisor talk to you about annuity so just be careful when you're thinking of options because as long as you have a balance I am your advisor as it relates to state of see if you're in Shelby County sorry if you hear my puppy who sounds like a monster he's one year old and he's barking at something so the joys of being virtual sometimes that happened you can also roll it over to another qualified which is an IRA or another employer retirement plan or you can start taking distributions you can still take them if you're not 55 but remember you will have that 10% penalty on top of the tax brackets if you're in a before-tax account we talked about that a little bit if you have account I've had some people that have decided to money is that they may have had with other companies or different things over to the state of Tennessee 401K what I will say to you if prior to leaving service don't call you call me back if you don't have a 401k already the 401K is available for you as an active employee if you did not have the 401K prior to return you cannot come back and open account so maybe if you have it smoking Wings in an advisor in a while or you have old plans that you want to consolidate with state of Tennessee we do have before-tax 401k and we do have an after-tax 401K you can reach out to me if you want to talk about best friend to lightning beneficiary off already said please go in and number one look at your beneficiaries some people have maybe gotten rid of somebody might have an X he might have gotten remarried and sometimes they have incorrect beneficiary information in the system when you do go ahead and apply for retirement online what was that that in the moment you're going to be forced to verify your beneficiaries anyway but again make sure you looked at that prior to starting the application cuz if it's wrong then you have to go back out incorrect that beneficiary I think it's the day or two to update and then go back in and start that application take the time to meet with your advisor before retiring to understand the best way or the best strategy in terms of taking distributions okay you can't have multiple beneficiaries and realize that TCR Empower retirement with his 401k your Valic account are all different websites it is not the same as your HR portal fell a lot of times people say I have to yeah you might have selected them through HR but they're all different website so you want to remember that we've already talked about the last bullet today's topic is retirement so I'll skip over that Legacy we've already said if you were hired prior to July 1st 2014 I believe everybody in Bartlett is contributory which means 5% of your salary goes to tcrs do you have a 5 year vesting in the K through 12 markets and again Service retirement at age 60 or 30 years of service again you can retire early if you review those annual statement a lot of people say what what's the difference if you go out to that mytcrs.com and you created your register for your online account you can select annual statement from the drop-down and you'll generally speed the difference is going to be if you retire early all right get that last bulletin because our bullet point because it is not applicable to K through 12 here's the formula for legacies Elphaba play City Schools it's 1.575% we take that multiply so for every year you were you get that 1.575 when X Men x x your years of service because they number gives you the percentage of your average of your annual benefit cuz we take that percentage and multiplied times at average final compensation all right so for example if somebody on the car has been 30 years under the legacy plan you're going to get 47.25 % of what whatever that average of the highest consecutive 60 months salary is that gives you an annual salary that we've been divided by 12 and that number is before tax money everybody like what this money has not been packed what does Uncle Sam's not going to let it go way and you already know that we're going to have to pay that text all right there made via Direct Deposit they don't deal with checks okay you can choose a single life annuity will talk a little bit more about this in the moment which is on your life only or you can choose a joint and Survivor plan like we said mobile with the breakout of that in a few more spot this is what's an example of somebody that had an average final compensation of 30,000 so don't get bent out of shape and some people are like looking with the salary is on this example until you see on this chart look at somebody five years versus somebody that have 30 years okay and this is just one and a half this is not the extra benefit Improvement percentage with you all have which would be that 1.575 but I just want you to see how that looks he is not muted if you could meet your phone I'm not sure who it is but just in case all right so I'm going to skip this slide we all know you need to save enough to afford retirement if you're getting ready to retire in the next couple years all hope is not lost but it is what it is at this point one of the things you need to think about and that's why I say talk to your advisers that you have because we want to make sure your money is laughing as much as popular as much as we can throughout your lifetime and if your hiring earlier in your 50 you got a little bit of a stretch before you can even start early Social Security so that last bulletin don't forget about taxes and inflation remember you're going to pay taxes on your Christian and because you haven't been since most of you all are going to be taxed on your Social Security inflation important thing to remember we have a lot of people that love to be in that Hennessy stable value fund well you think about inflation inflation runs from 3 to 4 % that's stable value fund right now is averaging 1% okay and there's a 25% in that fine for Administration in the other thing that the I guess management the different money market funds that go into that overall portfolio you really need to make sure you're in something that is is keeping up with inflation or you are losing value in terms of your money or losing purchasing power so again please make the time to talk with your advisor you don't have to change anything but at least look it at how the asset allocation you have met effect that those things like inflation or how long will your perfect for real life and all that type of thing in 2021 you can contribute up to 19500 or 100% of your compensation whichever is less if you're under 50 if you are 50 and older you can contribute an additional 6,500 which brings you up to 26,000 I need to change that 2020 and 2021 all right and so those that had the traditional 401K as you start to take distribution you haven't paid tax on that so you'll be packed in retirement and those that had the Roth 401k you will not be taxed when you start taking that money out for those Campbell the 401K in the 457 each one of those plans allows you to contribute up to that 19500 or 26000 depending on your age but if now the 401K and you also have your valicor a IG account that is cumulative but you cannot contribute that 19502 both a 401k and a 403b you would have between the bow so if you contributed save 10000 to the 401K you only have 9500 more that you can contribute to the 403 b I just want you all to know that again there's a bunch of choices in terms of the state of Tennessee 401k and if you want to follow up further you can schedule an appointment with me send me an email and I'll get on the calendar this is what the dashboard look like for the state of Tennessee 401k and you will notice now that the state of Tennessee has finally fed in your pension information there's some tweaks that we do when we meet one on but it gives you a better idea if you look at that little green circle of if you're on track or not in terms of replacing your income in retirement we already talked about roll over you're interested in consolidating your money with the state of Tennessee called me or it let me retract that email me because I'm able to respond quickly I'm usually I'm meeting a lot of with is the presentation on one on one but I want to make sure you're not going to be charged for example of surrender charge if you haven't had for example with the 403 bees or some of the tax sheltered annuity they have an amount of time that you have to have your money in that contract or even if you're coming from a Fidelity or any other firm sometimes they charge you and we want to make sure you're not being assessed unnecessary fees or that it's not better to stay where you're at all right all right so if you're within three years of retirement I say even for 5 or whenever you want to meet schedule a meeting with okay if that meaning review your benefit estimate speaking of if you have not requested a benefit estimate for them from the state of Tennessee you need to do that like yesterday I miss Karen told me a story she what's the one last summer and she just got her the month ago now don't get nervous but it is taking from 60 to 90 days to get that calculated in this environment we had in abundance of people that decided I have the time I'm out of here until there's a backlog so if you're planning on retiring this summer and you want to look at what survivorship benefit payment amount and or your own in like with your sick time and things like that you will want to call that 800 number you see that 800-922-7772 you're going to select Tennessee Consolidated Retirement Systems option and once you select that option the system will say why are you calling you'll simply say benefit as the mint and then Prodigy from years for your social security number when the system says enter your PIN if you say the word agent agent a human will come on the line and get that ordered all right and if you're planning on retiring this year please let them know and see if they can escalate that request for you to get it done faster but you want to do that I mean for real like yesterday because it takes them a minute but during that meeting and for those that haven't had a chance to do it I just do a projection of what that would look like we talked about well if you don't have your benefit SM you really can't talk about the other options because what they have depending on the age of an of your beneficiary the actuary calculate what your payout because you'll see in a moment we're looking example on your single life only is the highest benefit that you can get when it's just you if you want to survivorship option it depends on the age of your benefits 3 as to how that will affect your money at the lower benefit obviously if they have to pay somebody upon your death then through the rest of your life so the payment options change based on age and or which option you select like I said we'll talk about that in a moment we also can look and review your 401k and or any other investment accounts that you want to include in that meeting to say hey let's take mascara for Camp McCarran this is what you look like with your benefit estimate with your Social Security after man with the money that you save in your investment account when you decide to walk out the door this is your lifetime sustainable Inc based on what you have until then admit it's easier to do some tweets or talk about some things to think about either if hey maybe it's not the right time to walk out the door if we're walking out the door let's talk about a mortgage that pay there's a lot of things that we talked about in this meeting okay there's also a retirement checklist out on that retire ready TN. Gov and when you click the forms and guides that's under that section as well and so when you met eligibility for retirement you will want to like I said review that chocolate and schedule a one-on-one retirement counseling appointment some people get their benefit askmen they're like hey I've got all I need to know that's fine we're not going to hold you hostage and see if you can break through the line like the Rattler who played Red Rover we played outside growing up nowadays he's gives not so much but it's not necessary for you to retire it's just the option for you to help you but you will have to file an online application today I was on the call with two tcrs and they did an employer's a meeting and they said 87% of the casery 12 Market had done their application online so they do not want app cases they don't do paper applications anymore you have to do that online we already talked about the 401K remember if you're at least 8:55 you will not have it early penalty and that's per IRS okay if you are not 55 at retirement though and say your 4054 you could be 54 and 10 months if you go ahead and retire you cannot does that money till 59 and a half if you're not already 55 by the time you retire those that have the 457 with a ID you can start taking that money at any time as long as you're separated from State Tennessee IE Bartlett City Schools alright so the options that you will see on that benefit estimate these are the description so a lot of times people get confused and wrapped up on the single life annuity plan there's two options they'll remember this is on your life only is the member only option that's the highest payout that's why you see the maximum monthly benefit payable to remember for a life with this option your benefits cease at death unless you have money left over that you paid so if you log on to your tcrs account you will see I think it lives how much you paid into tcrs in terms of your 5% at 6 months and you passed away any money that's left from what contributed in the interest you got on your contributions will go in that case want some to whoever your beneficiary if you have multiple beneficiaries that you had two little go lump sum I'm down the middle to whoever you have listed on your account but generally the money that you paid in after about year for 4 and 1/2 generally that money is gone so in that case a you die R6 nobody else is going to get any money if you select this member only option you have the option to look at Social Security leveling so often times people that are in their 50s and or you know maybe you're 60 you can look at this option up to age 60 obviously 62 rely hey go take early Social Security but if you say you're 55 I'm just using the example there is an option and I hate this option because and I'll tell you why you do you get an increased benefit because what happens if the state is giving you some of your pension money up front, help you make it that time. Between whatever age you are in age 62 if you do a good job saving some money over your career then you generally don't have to look at this option not to say that you've done a bad job but there are reasons sometimes have to retire at a certain time but what happens like I said is tcrs gives you an increased benefit until age 62 at that time look at the little phrase then a reduce been it is payable after that date to mrs. for the rest of your life you get a reduced pension and if you're starting Social Security at 62 that's early until you get reduce social charity I'm not trying to give that money that I earned by working okay so I generally say hey if it all possible maybe work part-time within you know whether you substitute or you can I work outside the system but always remember you have to be careful taking early Social Security because there are some salary restrictions if you're taking early Social Security so just take what your you'll be figure something out until age 62 but the reduction was the both of us if you think about the reduction that you're getting your pension and the penalty that you'll pay for early Social Security I've seen it affect people's monthly salary from 600 to 1000 a month it's just not worth it to me this joint and Survivor options so when you get your benefit estimate you'll see numbers by these problems for those that are interested in the Social Security don't you don't have to don't Rob won't know what you do if you want to look at that option you can ask the representative to also include a social security leveling a estimate for you and when you get those no Too bad you'll probably be like I have Rob's was right option one reduces your maximum retirement benefit based on the date of birth of you and whoever your beneficiary Mary or beneficiaries are so in that one it says I love my beneficiary so much that I want to leave them 100% of what I'm getting so whatever that number is your beneficiary beneficiaries get that same amount so keep in mind say for example somebody was getting 2500 in this option that was a number listed if you passed away if you have one beneficiary beneficiary would get 25 It is Well upon your death say for example you have two beneficiaries they would eat each get 1250 okay so that's how that one works out two I say this in joking maybe you don't love them as much as you thought and you live leave them 50% of your benefit the number would be different than 2500 but I'm going to use 25 100 will be a little bit higher but says 2500 again once you passed away your beneficiary would get $1,250 or if you have multiple beneficiaries they would split that says to each we get $750 K that's how bad when were so obviously wanted to this is explain to it if your beneficiary dies before you your benefit is not going to change is going to stay this playing the reason they put this little sprays in there and for this next option three an option for our modifications of one and two option three is still a pays 100% option for pays 50% so if you look there in the event that you passed away your beneficiary receive the same amount a hundred percent options for if he pass away your beneficiary gets 50% but option three and four or what we call the popups reason big we get strong as none of us know who's going to die first or when we're going to die in the event that your beneficiary passes away before you you see that before the member your benefit will increase to the maximum benefit under the member only option so if your benefit series die before you with option 3 and 4 is pops you back up to the single life maximum payout the highest benefits that you could get all right so I stay with people thinking about beneficiaries that you have listed if you generally need to work very well for somebody that is closing age if you have your children listed as well be a pretty big difference between the maximum payout and the joint and Survivor plans so my mind is look I have children as well I have poured my Blood Sweat and Tears into you and so I'm not what is Hague A45 $600 monthly reduction for my child this is my retirement I work for it but if you have your child on there be two objects may not work for you cuz generally we outlive our children so I see women a lot of times if you're choosing a beneficiary that if Colton age particularly if your beneficiary is a male I don't know how is women still live longer than men and they might look at this option because you want to provide for that beneficiary in the event that you die but because usually women live longer engine opportunities pop back up to the maximum payout I have seen some men so like this option as well you know the right option for you when you're thinking about any of these benefit options what you want to talk about or you don't have to I'm not telling you how to do this is your retirement but most people what you want to think about is if you die could your beneficiary or your household go on without your income so that's something to think about you have a mortgage that you all are still paying on does your beneficiary have a retirement or pension plan if not these are things that you want to think about as you make these decisions is okay so we can't have cat lovers of America as a beneficiary is there has to be an import so you want to know that I've already said you can have multiple beneficiaries if you select one of the joint and Survivor you can only make changes within that 60 days after the effective date of retirement or that date of Richard there's a letter that you will receive so once you complete your online application and submitted it go to whoever certifies your retirement applications with Bartlett city school they have their corresponding information that they need to add and then it goes to tcrs in about 2 weeks 2 weeks to 3 weeks you get a letter from state of Tennessee or notification that has received your application this is the information and then you have 60 days to say yes this is I'm going to go ahead and do it or yes I'd like to join Survivor so that's what that mean you have 60 days after that you cannot change it and then of course remember there's the selecting of beneficiary guide at that website that I mentioned in the early part living adjustment so this thing can make a increase payable up to 3% on your retirement benefits but what I want to look at it most people especially the teachers usually had this marks but they look at those who were retired 12 months by the upcoming July 1st for example save this year we decided hey we're going at the end of this week we're going to do a cost-of-living adjustment they will look at all the retirees who retired by June 30 is not working July 1st retired July 1st you missed it but they were retired a full 12 months prior to this new July 1st they will get the cost of living adjustment in this year for those that works in July 1st after you will get the cost of living increase 04 example see if they were doing it instead of getting it this year you would get it in 2022 alright so tell people think about that you won't die but you know if you have an opportunity if they did do a 3% cost-of-living adjustment if you weren't retired or if you aren't retired by June 30th of this year and they do one next year you were get it until the following year working after retirement some of you all love it so much you just want to come back you have to wait 60 days prior to coming back part time see here that you can work up to a hundred and twenty days within a 12 month. And still get your pension so for example let's say you retired by June and you had to wait July August and say you came back in September of this year and did some substitution work you would have 120 days that you can work from September to September of next year and be penalized okay so most HR departments are very good at letting you know what you have on the book but just understand if you work outside the district you can work as much as you want when I said the dis state of Tennessee. So Tennessee Consolidated retirement system say you went and work for FedEx or IP or any any of these type of the state doesn't care how much you work it's just if you're working on your Tennessee Consolidated Retirement System employer you all noted in the Social Security ssa.gov you can create your online account if you haven't gotten the statement lately to see what that would look like a lot of times I encourage you if you do show me with me when you're going in you can do social security estimate what I think people forget to do when they're looking at those estimates if you're going to retire and you're not going to work anymore or say you're going to work hard you're going to need to adjust that salad because a lot of these projections assume so it'll say what did you make last year maybe you made $65,000 for getting ready to retire and not work that's going to be zero going for it so you'll want to adjust for that so you overshoot what your benefit as many did you start taking social security be like that's different alright if you meet with me you're well kind of address this but again go in and look at what your statement says Bay on your work history so far that's right looks like this and if you look in the upper right-hand corner if you never signed up that's where you click sign in sign up it will ask you for some information that pool from the credit bureau it will not affect but be forewarned these some of these questions are not just as simple as eating a piece of pie and they said hey you've lived in one of these addresses before you drove Toyota Prius who financed that car so be prepared that they will ask you cuz they're trying to make sure nobody's trying to steal your identity again there is retire ready tn.gov there's the 800 number for that benefit estimate there are there from 8 a.m. to 7 p.m. Central Standard time we're doing a group presentation now you got me as your adviser so I hope you like me enough and again we already talked about the retirement Readiness review counseling you talk about all these things reviewing your statement and then there's again that that information here is my email email is best for me because I am it's easy for me to shoot off a message throughout the day when I'm talking to people is pretty hard for me to answer my phone not that I don't answer it but I mean I get to you right away with that is Karen I'm going to be quiet and take a breath and see what questions relative to tcrs and the where the 401K that we have okay Ron so far I haven't seen any questions so I think I think we maybe you're welcome to to continue to join if you want to win but otherwise I'll go ahead and take back over and I will go ahead and start the the benefits portion of the meeting thank you miss Karen arroz yes ma'am I'm trying to take back over and post them for some reason can you let me see myself I'm going to in myself and if people have questions tell them to email me and I'll help them through it cuz I was like I I stopped sharing and brought singing is now mine says share content but let me end it how about that all right man let me know I'll have my phone if you need something liquor into that do it I don't know what's going on leave meeting for me leave with telephone connected okay what about now I think I got it already thank you thank you bye-bye alrighty can everybody see I've got understanding your benefits at retirement if I if I can get just maybe one all right everybody can see that you give me a thumbs up if you want to yes okay thank you already so appreciate you hanging on and it's a gorgeous day and hopefully I'll get I'm through this and and we can get on about the rest of our day so if you're this meeting like I said you know you probably thinking about retirement when it kind of get all your ducks in a row or maybe you're here because you're planning to retire this year want to make sure that everything is aligned so hopefully I'll go through this rods talked about submitting your retirement form online so I'm going to talk about continuing those benefits after retirement because you're like me it is just as important to get your pension and make sure that you've got those benefits that you work long and hard for after so with that alright so your eligibility to continue the medical and the life benefit so we do require you more of a city school do you require you to be eligible to retire so was talked about the requirements to be able to draw your pension age 60 or 30 years before retirement they do offer an opportunity for early retire I just know that the early retirement option is reduced benefit so the one you have to meet the eligibility draw attention and then after that then we're going to look at whether or not you need then you benefits that would be you hired directly from Shelby prior to August 2014 and that you have at least 15 years of service with Bartlett City and Shelby combine have the medical currently you must be enrolled in at least one year so some people may have may be eligible to continue just a life only because they don't have the medical center Dover medical benefits for pre-65 retiree that would be those people that are not on Medicare it's essentially the same benefit I shouldn't say since we can do this the same benefits and the sea cost the only difference is that we convert your what you're paying per pay. Into a monthly premium and it's the ducted from your pension but you your benefits if you're not eligible for here are your spouse isn't eligible for Medicare is the same benefit that you're going to enjoy at retirement obviously if there's any changes to premium for benefits during open enrollment than those are also I transferred over to the retiring so but other than that it's the same district continues to share the cost of the benefits of Summer by retirees to the outside of the Memphis area will we ever you but obviously if you were if you have concerns about that please let me know and we can can look at that also if you got family members who are currently on your plan then family members would be able to continue the benefits well I've got on the employee benefits she's me on the HR page you go to the HR page under retirement I've got the application to benefits at retirement that's kind of like your partner so you go online you submit your your retirement application and then look at the benefit application I need to complete that and send that to me just remember that if you're eligible for these benefits and you decide to wave them that that's permanent you can't come back at a later date you say I lost my benefits you know wherever else you may have been and now want to come back because this isn't permanent so just just make sure that you think about what you know if you decide to waver or considering that option at the life benefits working your benefits are two times your annual earnings in the district provide stat when you retire it does reduced to one time your annual earnings up to a chap and fifty thousand District still continues to provide that if you're interested in won't say if you're interested cuz that's that's a benefit that you don't have to pay for it so whenever you complete your paperwork just make sure you complete the change of beneficiary form that helps to make we have the most current beneficiary on file if you have additional life insurance on yourself or spouse or child through standard that would cancel but standard does allow you to convert that individual policy so we would send the information to you giving you that opportunity giving you that opportunity and then you would just reach out to standard if you're interested so the cost of I think I've already told you the cost for the pre-65 it's the same as with the active employees are paying the gentleman Vision it's the same thing so medical dental vision is what are your active friends or pain if you're eligible for Medicare the rate that I've listed their 1061 T is today's rate reduce the little bit this past January but it is on a January one playing year so just know that I'll usually send information to those a 65 retiring Uber giving them or giving them the information if there's any changes in the premiums if you're eligible to continue the medical and and you have the dental and vision as well then we deduct your premiums out penchant the first to Dakshin would be at the end of September September 30th I have a couple of questions so if you don't mind I'm a pause one person said will benefit be available if I move out of Tennessee yes yes we do also continue the benefits if you move out of the area and then the question I believe the question about the beneficiary selecting a new beneficiary if you beneficiary passes I think that is related to the retirement and then he would baby email Rosalind. Quest so that she can answer that the additional benefits that you might have like I said the optional Lifestyles child-life those benefits but standard will let you continue them if you 70 benefits through American Fidelity those benefits also in they would love for you to continue those benefits as well the Dental in the vision is if your gold in the medical plans in you may also continue does the disability benefits do term the flexible spending account if you had that planned it does cancel at retirement and you do want to make sure dad are you use all of the funds or expense all the funds by the end of the plain year supplemental retirement Roth contributions to terms but you probably do let your advisor know that you are retiring so that they can help you make decisions about distribution that also if you have the medical plan and you are not eligible for Medicare the care for a clinic or still you're still eligible for those benefits if if you would have an appositive which is the second I've got quite a few questions I'm just going to see if I can answer some of those questions okay so I've got a question about early retirement so if you if you leave the district and you don't you do not to retire meaning you're not going to draw attention then you're not going to be considered retired and so you will. You would not be eligible to get sick your benefits at retirement because you're not retiring so do you defer your retirement when you leave the only thing that we would offer you with the cobra I've got a couple of people asking about if they're eligible for Medicaid or Medicare but maybe their spouse is not I'm going to get into the Medicare questions and just a moment so hopefully I'll address those and then if your do all benefit the end you can pay for your benefits through the summer so the transition from active employee to retiree is September one so August 31st would be your last day of of coverage if you weren't eligible to continue the benefits or if you are eligible that would be through transition I'm an active Insurance member chill retiree okay so what happened 65 I know that's kind of the big question what to do so the district does provide a Medicare Advantage plan without a kind of go into a little bit you do have to have Medicare part A and B so if you're eligible for part if you're eligible for Medicare now there is a form that I need to complete that you need to take to Social Security purpose of the form is to verify that you had credible coverage from the day you first became eligible for Medicare so because you were natural employee if you became eligible for Medicare stayed last this time last year you didn't have to purchase Part B B's the plan the doctor plan that used to cost cost a little bit coming out of your Social Security so you can wait for me and and the reason you might weigh Part B is because until you were tired Department City School plan would pay primary so unless you're going to the doctor and it's not really a reason to have two primary insurance but now that you're going to retire you do have to have part B so this form you'll take the Social Security and the read the purpose of the form is it certified said that you had credible coverage from the time you first became eligible for Medicare so that Medicare doesn't come back and penalize you with a higher premium so it's going to save you money so if you're if you're planning to retire this year if you'll please doubt me so I can give you this form so you can take that to Social Security so you won't be permanently get penalized if your cousin if you're covering a spouse and maybe they aren't 65 yet and they're going to continue on 365 MedVet benefits so maybe the maybe the employee the retirees eligible for Medicare then we're going to offer them the post 65 benefits through Aetna Advantage plan talk about the next couple of slides and then if you're retired if you're retired so maybe you're pretty 65 now but maybe two years from now you become Medicare normally I will notify you of your opportunity for the Medicare Advantage plan but if something happens and you haven't received anything for me please reach out to did this office so that we can send you the information you're probably going to get tons of information from other insurance companies you're probably going to get something from the state but we feel like the medic Advantage plan that we're offering our retirees is comprable if not better than the plans that you're going to receive a packet Saint so anyway so the Medicare Advantage plans does difference between a supplement and an advantage plan so the way Advantage plan works is it it works very similar to your med Ben insurance so you have one ID card and that's the card that you're going to show when you go to the doctor that's the card you're going to show when you go to your to your Pharmacy you do have to have Medicare A&B but you don't have to show your doctor that card you keep that card at home the only card that you're going to show this Medicare Advantage plans you don't have to purchase any additional Gap coverage or supplement you don't have to purchase an additional drug plan because the advantage plan is designed to make your benefits so I've already answered you don't have to show your Medicare card to provider you can leave that at home but you do have to have Medicare A and B and the reason that you do and this is all behind the scene but the reason that you do is because on the back end when you go to the doctor and you show your Aetna card to your provider your provider is going to submit that claim to Aetna and Evans going to pay the doctor one percent of that client on the backend though Aetna is going to submit that claim that they paid 100% on to Medicare and Medicare is going to reimburse them for the 80% that they weren't responsible for the reason why you have to have Medicare A and B is so that Aetna is able to to be reimbursed for the amount they paid on your behalf what other retirees say about the Medicare Advantage plan the best part I really don't hear a lot of feedback about the advantage plan and usually that means that it's a good it's a good thing sometimes I have had some issues with some networks but for the most part Memphis being a big medical region I'm not really had anything so she certainly if if you get on the Medicare planning you have an issue with her provider accepting it then he know please reach out to me or we can reach out to Edna to certainly they want to as many providers to join the plan is possible it would certainly continue the Baptist of the Saint Francis providers one of the nice things about having the the Medicare Advantage plans that also includes some of the Baptist or excuse me some of the Methodist Spalding Hospital one of the advantages of a couple of advantages of the the advantage plan is very similar to what you're used to paying now Loco pays that you're far no deductibles large network of providers like I said including Methodist hospital he got annual hearing and eye exam physicals medical coverage is worldwide and you know because of Telehealth is covered so anyway so if you're eligible for Medicare the information about the advanced plan is in the of the packet that's on the HR retirement website so you can review that when you submit your application to me about you wanted to continue the benefits if you're if you're eligible for Medicare go ahead and fill out that Advantage plan if you've got Medicare card showing A&B go ahead and send that in as well I'm so where do I find the forms so I guess it earlier if you go to HR under departments look under the retirement I've got the packet list it's the same place you lost so click on the link that takes you to the the tcrs website so you can submit your online enrollment and then and I may I may be in a reply but also make sure that you go to your employee portal to submit your retirement / was resignation / retirement that notifies HR of urine it's kind of a three-step process that if I HR that you're intending to retire click on the link to your retirement application to complete that and then if you're eligible. The benefits go ahead and complete the packet and complete the continuation information on the benefits and send that to me well I'm already done this so many times I know it's next done it so I'm just going to I think everything is there yummy questions about that or not sure where forms are located just just shoot me a shoot me an email so if you're if you're not eligible to continue benefits maybe you are eligible for hire but you're not eligible you don't have to 15 years requirement that the city or you started after 2014 then what we would do is we would offer you Cobra unless you were eligible for Medicare cuz if you're eligible for Medicare that you have Medicare and then we would offer you Cobra the wife benefit you can convert then your benefits are paid through the summer so your last day of coverage should be the end of August couple of questions okay so I got a question about covering a spouse after he turns 65 so any of your dependents that are covered under your plan today you're eligible to can to keep them on your plan when you retire you're eligible for the if they may be eligible for Medicare but you're not they would be on the the Medicare Advantage plan you would be under under the med Ben insurance if it's vice versa maybe your Ella maybe you're not eligible for Medicare but your spouse is then leave it all for them to Medicare Advantage plan and then you would remain under the med been so we do have taken taken all of those scenarios hopefully in Federation so that if your spouse is eligible to be on your benefits then they can remain on after you retirement benefit from you so just like enrollment will receive an annual statement usually in July I do the retirees after I do the active employees that are hard for me to concentrate on active and retirees at the same time so I usually take care of active employees first and then give me a second and then notified retirees in July you'll be notified of any benefit or premium changes I usually email or mail a statement it will also verify who your beneficiary is UCI selfie I'll just hang on to that statement because it does provide what benefits they have if there's any changes and who their beneficiary is any of those changes are effective September one any medical premium is a is the reflected on the September 30th tension so if you could you submit all of your retirement information early you do want to submit everything early if you can then hopefully what happens is you get a check in July from tcrs maybe you're completing your rest of your contract from Bartlett city schools and so you don't have insurance taken out of your tcrs in Bly or August September's when you to start your own to bring out if you're eligible for Medicare then in October he's going to receive another notice about any changes that would affect the Medicare Advantage plan because Medicare open enrollment October and those changes will be effective in January, January 1st please make sure you notified the benefits I'm eligible for Medicare if you move yourself size or to change your beneficiary my contact information is there is also on the employee benefits web page and on the Bartlett City Schools homepage additional what is my retirement date so your retirement date is going to be the day after your last work day so whatever the last the last day of school I think it's the 21st so your retirement date is XXII like rod says if you're able to put that retirement in before July 1st than that ensures that you're going to get a cost-of-living raise GRS provides one the following July one so you want to make sure that if you retire if you're able to do some if that end when you're thinking about doing it the earlier the better at the beginning of the line and not at the end of the lot so like I said you submit early so that you can make sure that you get hopefully your first retirement July one your teacher the last check that you would receive from the district is July 30th so that would be your last check from the district do you have to re-enroll in benefits every year just like an active employee so no unlike that give employees with retirees I have what's called a passes in Rowlett so every year I'm going to send you that statement it's going to be based on the benefits that you have at the time you retire prior year of really there's not much changes you could make other than to drop on you certainly couldn't add the medical if you didn't already have it so for the most part it's just a passive enrollment don't require you if you currently have your spouse on your insurance I don't require a spouse salsa for me cheer cuz I assume that if they're already on your insurance they were eligible for retirement and then afterwards send their retired so can you add or remove dependents from the medical policy so if you're if you currently do not have dependents on your medical insurance or other benefits if they have a qualifying event after you retired and you certainly may add them at that time but we would need evidence that fact if you drop a dependent oh it's permanent without a qualifying exam and I'll be already said you don't have to you don't have open enrollment every year you just is a passive involvement some questions of God okay so one of the questions I have is maybe the retiree is eligible for Medicare but Mouse is not and so therefore we offer the retiree the Medicare Advantage plan so if the retiree waves the Medicare Advantage plan play they're waving the medical plan so that would mean that all benefits terminate at the end of August so in order to continue dependent insurance for the other members of the family then the retiree would have to accept the benefits that's offered at retirement unused sick time this is a good question is the question for Roz but I can answer it so if you have a chi lighted unused sick time every 20 days of unused accumulated sick time does converts with service so when you do your estimate you want to make sure that you send your unused accumulated sick time with them if you haven't had time to do your estimate or you're not going to be able to do your estimate before you submit your retirement that's okay one of the functions the HR does as we send them your unused but you know I'm sick. So whether you do it we we certainly will do that so hope that answers your question on that okay so if there's any questions I've got one more question says what's my retirement the retirement date is the day after your last work day so I think the last day of school is 21st of May so that would make your retirement date the 22nd are there any other questions that I haven't answered yes every 20 days of unused sick day is an extra month of service sorry it if I said year every 20 days converts to one additional month of service so you know I'll just kind of give you an example this is why you're sick time is so important to preserve is because you know there may be instances where say you got 29 years ago you know if you retire early there's a reduce benefit and you don't can't afford to retire early did you can afford reducing your benefit but thankfully you've done you know you haven't illnesses and you've been been good as far as managing your sick time and so you have a Year's worth of sick time so you have a Year's worth of sick time and you have 29 years service then essentially what happens is your RN with 30 years service no reduction even though you know technically you've got 29 years of work service so your sick time is valuable and it does on your service and for every month of additional service that does increase your pension I got a 12-month employees okay I got a question about 12-month employees about retiring on their birthday I'm not sure I follow your question so if you want to shoot me that email shoot me an email with a little bit more information cuz I'm not sure where you're going you can retire your earliest if your earliest retirement isn't years of service it is 860 then you do have to retire on that I mean you have to do to meet that so your retirement would be the following day I think I actually on the four middle say it gives you a couple options and it'll say birthday service and stuff like that so okay if I'm 15 years occurs in August can I use can I use sick days to get to that day or do I need to work okay so you're sick days or service but your 15 here's is or is working so the answer to your question is no your your sick time gives you additional service but it does not give you additional work time witches what is required for the 15 years so what is the retirement date for 12-month employees if your 12 month Employee Retirement date is the 30th that would be your way work days to July one would be your your at effective retirement date that helps to to also make sure that you are eligible for that cost of living raise the following year I do it if there's looks like I may have a couple of additional questions but if you would like please email me if there's any questions that you have after this meeting but other than that I think I'm going to go ahead dismiss and let y'all go and enjoy the rest of this beautiful day thank you all so much for attending thank you for offering a

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03-09-2021 - Retirement Informational Meeting

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