USD 259 Retirement Seminar

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USD 259 Retirement Seminar
Hosted by Employee Benefits Insurance
Management Dept. USD 259
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USD 259 VOLUNTARY EARLY RETIREMENT PLAN

• The Bridge

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Requirements for Eligibility

• Hire or rehire in a benefited position prior to
  July 1, 1996
• 15 years or more in a benefited position with USD
  259
• At least age 50 but not over 65
• Vested with KPERS
• Employee group must participate
• Must apply for retirement by the last working day
  in February, if you wish to receive Bridge
  payments anytime during the next fiscal year.

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Not Required . . .

• You do not need 85 points to qualify for the
  Districts Early Retirement Program, known as
  the Bridge.
• You do not need to be 60, if leaving employment
  to be eligible to vest your Bridge benefits.

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You may be eligible

• If youre at least age 50 but not over 65, and
• You have 15 or more years in a benefited position
  with USD 259.
• Contact the Retirement Office before terminating
  to determine if you are eligible for the
  Bridge.
• If you are terminated from employment, you no
  longer qualify for the Bridge.

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Work Restrictions after Early Retirement

• After retirement you are ineligible for
  employment with USD 259 in any capacity other
  than as a substitute employee.
• Any exception to this policy concerning
  employment will be subject to approval by the
  Superintendent of Schools.

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Bridge Consists of

• Bridge Payment
• BOE Life Insurance until 65
• BOE Health Insurance available, if you pay the
  premium and meet the qualifications
• Note Must be receiving KPERS retirement
  Benefits to begin Bridge payments.

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Bridge Payment . . .

• Monthly payment until age 65
• May include two parts
• Social Security Bridge
• KPERS Bridge

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BOE Social Security Bridge

• Begins at age 60 (or at retirement if older)
• Ends at age 62
• Maximum of 24 payments
• Payment based on
• Social Security estimate
• Reduced by 5 for each year under 20 years of USD
  259 service.

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BOE KPERS Bridge

• Begins at age 60 (or at retirement if older)
• Ends at age 65
• Maximum of 60 payments
• Payment based on
• Final Average Salary with KPERS
• Years of service with KPERS
• Note Any Purchased (Buyback) service are
  excluded
• (e.g. Forfeited, Military or Out of State
  Service)
• 1.4 multiplier for participating service

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Bridge Taxes

• Bridge Payments are taxable for
• Federal Income Taxes
• and
• State Income Taxes
• Note Consult your tax advisor on any tax
  consequences.

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Example Retire at age 60, 55,000 final average
salary, 25 years of service

• Age 60 up to age 62
• KPERS lifetime benefit 2,000
• USD 259 Bridge-KPERS (60 to age 65)1,650
• USD 259 SS Bridge (60 to age 62) 1,200 Total
  Monthly Retirement Benefits 4,850

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Example Retire at age 60, 55,000 final average
salary, 25 years of service

• Age 62 up to age 65
• KPERS lifetime benefit 2,000
• USD 259 KPERS Bridge (60 to age 65) 1,650
• Total Monthly Retirement Benefits 3,650
• If you apply for Social Security benefits at age
  62,
• you could start receiving reduced benefits of
  approx. 1,200.

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Example Retire at age 60, 55,000 final average
salary, 25 years of service

• At age 65
• KPERS lifetime benefit 2,000
• Total Monthly Retirement Benefits 2,000
• If you apply for Social Security benefits at age
  62,
• you could start receiving reduced benefits of
  approx. 1,200. For you full benefits date,
  contact Social Security.

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Example Retire at age 60, 55,000 final average
salary, 25 years of service
Age 60 KPERS 2,000
USD 259 (KPERS) Bridge 1,650
USD 259 (Social Security) Bridge 1,200
Total 4,850
Age 62 KPERS 2,000
USD 259 (KPERS) Bridge 1,540
Social Security (if started at 62) __?__
Total 4,850
Age 65 KPERS 2,000
Social Security (if started) ___?_
Total 3,200
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Bridge Life Insurance Options

• BOE Life Insurance until 65
• Life Premium paid by USD 259
• Benefit amounts same as district life benefits
  -this is 30,000 (for most employee groups)
• This is in addition to 4,000 from KPERS or any
  additional purchased from Minnesota Life.

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Health Coverage Options at Retirement

• If you wish to participate in the USD 259 Health
  Plan as a Retiree. You must enroll for coverage
  with Employee Benefits by your retirement date or
  coverage will be terminated.
• At this time, you and your spouse may stay on the
  USD 259 health plan.
• USD 259 Retiree premiums are subject to change
  based on yearly negotiations (premiums can be
  125 of what BOE or employees pay).
• Investigate and explore other health plan
  coverage options
• Senior Health Insurance Counseling for Kansas
  (SHICK)
• AARP
• Other Individual Group Policies

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Health Coverage Options at Retirement

• Retirement at or after age 65 (with spouse age 65
  or older)
• No longer eligible for USD 259 health plan
• Must sign up for Medicare A, B D or a
  supplemental plan.

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Health Coverage Options at Retirement

• Contact Employee Benefits to speak withJudy Foy,
  Health Plan Technician _at_973-4564 regarding
  coordination of coverage with Medicare for you
  and your covered spouse.

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Health Coverage Questions

• For USD 259 Health Plan
• Coventry Customer Service 1-866-765-7841
• Judy Foy 973-4564 or jfoy_at_usd259.net
• Medicare 1-800-722-1213
• 1-866-931-9173 (local )
• SHICK 316-660-0100 ext 0117

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Factors to Consider before Retiring Early

• Retirement is a major lifestyle change
• Salary and longevity end
• Social Security
• Health Care Costs
• KPERS Benefits Change
• Earnings Limits
• Return to Work Options
• Increased Life Expectancy / Effects of Inflation
• Effective Date of Retirement

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How much money do you need to retire?

• Financial planners recommend 80-100 of your
  working income.
• Where will your money come from?
• Social Security
• KPERS
• Personal Savings and Investments
• USD 259 Bridge (if eligible)

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Your Responsibility

• Contact the retirement office for retirement
  counseling appointment to sign retirement
  paperwork.
• Deadline to sign if you plan to draw in the next
  fiscal year, July 2011 to June 2012, forms signed
  by 25th of February, 2011.
• If leaving district, you must sign Pre-Early
  Retirement forms prior to leaving to vest your
  rights to benefits starting at 60.
• KPERS requires proof of age and any legal name
  changes.
• Must notify KPERS and USD 259 Human Resources of
  address changes.
• Must notify KPERS and USD 259 Payroll Dept. of
  banking institution before starting benefits or
  if any changes after retirement.

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USD 259 Early Retirement Deadlines

• Bridge Benefits in the next fiscal year- forms
  signed by last working day in February.Fiscal
  year runs July 1, 2011 to June 30, 2012.
• If leaving district this year, but wish to draw
  Bridge benefits after next fiscal year - you must
  sign Pre-Early Retirement forms prior to leaving
  to vest your rights to benefits starting at 60.

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Calculators

• USD 259 Bridge Calculator
• http//kperscalc.usd259.net/
• KPERS Calculator
• http//www.kpers.org/benefitcalckpers.htm

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Questions About KPERS or the Bridge

• Leilani Hook,
• USD 259 Retirement Specialist
• 316-973-4590
• lhook_at_usd259.net
• or e-mail employeebenefits_at_usd259.net
• www.kpers.org 1-888-275-5737