Retirement Planning by Becky Priebe 070909

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Retirement Planningby Becky Priebe07/09/09
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Defined Benefit Plan (PERS, CSRS, FERS)

• Participant receives a specific monthly benefit
  at retirement.
• Benefit calculated through a formula based on
  participants salary and service.
• Not required to make investment decisions.
• Referred to as a fully funded pension plan.

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Defined Contribution Plan (TIAA-CREF)

• Benefits are based on the amount contributed,
  affected by income, expenses, gains and loses.
• No promises of a set monthly benefit at
  retirement.
• Examples 401(k) plans, 403(b) plans, employee
  stock ownership plans and profit sharing plans.

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Public Employees Retirement System

• Civil Service
• Bargaining Unit
• Hourly

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Extension Faculty Hired before 1988

• Civil Service Retirement System
• Federal Employees Retirement System

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WSU Retirement System (TIAA-CREF)

• Administrative Professional
• Extension Faculty Hired After 1988
• CAHNRS Faculty

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Public Employees Retirement System

• PERS 1
• Any age with 30 years of service credit
• Age 55 with 25 years of service credit
• Age 60 with 5 years of service credit

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Public Employees Retirement System

• PERS 2
• At age 65 with five years of service
• Or an actuarially reduced benefit at age 55 with
  20 years of service
• PERS 3
• At age 65 if vested
• Or actuarially reduced benefit at 55 with 10
  years of service credit (defined benefit portion)

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Civil Service Retirement System (Federal)

• Age 55 with 30 years
• Age 60 with 20 years
• Age 62 with 5 years

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Federal Employees Retirement System

• Minimum retirement age with 30 years
• Varies between 55 years and 57 based on year of
  birth
• Age 60 with 20 years
• Age 62 with 5 years

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Retirement EligibilityTIAA-CREF

• Age 62
• Age 55 with 10 years
• Or drawing a benefit

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Tax Deferred Annuities

• State Deferred Compensation
• TIAA-CREF
• Thrift Savings Plan (CSRS/FERS only)

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State Health Insurance

• Continue in retirement if you meet retirement
  requirements
• Monthly Cost for Uniform Plan
• (employee and spouse)
• Health Dental
• Prior to 65 848.41 83.38
• After 65 333.95 83.38

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Federal Health Insurance

• Must be enrolled for 5 years prior to retirement
  in order to take into retirement
• Pay the same rate as employee
• Blue Cross Blue Shield monthly rate
• Employee 152.06
• Family 356.59

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Medicare

• Eligibility
• Age 65
• All WSU employees are contributing
• Apply before 65th birthday, no matter employment
  status (retired or employed)

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Things to do in preparation for retirement

• Find your birth certificate
• Find your marriage certificate
• Meet with Benefits Counselor
• Attend a Pre-Retirement Counseling Session

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Emeritus StatusEligibility

• Tenured faculty
• Age 60 with 10 years of service at WSU or
• Completed 25 years of service to WSU, AND have
  held an eligible rank at WSU for a period of at
  least 5 years prior to leaving WSU.

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Benefit ServicesPERS, TIAA-CREF

• Ann Monroe
• [phone]
• monroea_at_wsu.edu

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TIAA-CREF

• Kirkland Office 1-877-209-3142
• National Office 1-800-842-2252
• Counseling Sessions (individual and group)
• County employees can access at community colleges

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Department of Retirement Systems (PERS)

• [phone] or toll-free
• (outside the Olympia area) 1-800-547-6657
• http//www.drs.wa.gov/

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Federal RetirementCSRS and FERS

• Becky Priebe
• [phone]
• priebeb_at_wsu.edu

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Federal

• Office of Personnel Management
• www.opm.gov
• Thrift Savings Plan
• www.tsp.gov

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Annual Leave Payment

• Defined Benefit usually better to take a lump sum
  Payment.
• Extra months of service usually do not increase
  benefit
• Defined Contribution usually better to run out
  leave.
• Continue health coverage
• WSU match

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Sick Leave Incentive Program

• Annual Attendance Incentive
• 480 hours
• Payment of 25 of unused leave for the year
• Leave balance reduced by 100

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Sick Leave Incentive Program--VEBA

• Voluntary Employees Benefit Association Medical
  Expense Plan (at retirement or death)
• Payment of 25 of unused sick leave into a tax
  exempt account

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Sick Leave Incentive Program--Eligibility

• Civil Service/Bargaining Unit
• Administrative Professional
• Faculty with teaching or research
  responsibilities excluded
• Extension faculty hired before 1999 with 50 or
  more Extension Appointment

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Employment at WSU After Retirement

• 40 rehire is not a right
• Phased retirement
• Reemployment after retirement