Exit Orientation

1. Exit Orientation Presented by Michael Binyon, Manager of Payroll and Benefits Mary Perdue, Lead Payroll Specialist Cindy Sharp, Lead Benefits Specialist Patty Nevdahl, Retirement Specialist

2. Disclaimer The following information is intended to provide you with some general information as to financial matters that are due to your upcoming separation of employment from Spokane Public Schools. These benefits are governed by specific provisions in your collective bargaining agreements, or School District Board Policies and Procedures, or state or federal laws or regulations, or other controlling sources.

3. Disclaimer If you have any doubt at all about laws, rules, procedures, or ramifications of the decisions you are making, you should first consult your attorney, accountant, or tax advisor. Any decision made by you in relation to these matters is your sole responsibility, and we and the School District will not be liable for any decisions you make in reliance on what we may say (or not say) today.

4. Initiating Retirement/Resignation • Complete a Separation of Employment form and submit it to the H/R Department • Can be confidential to Board of Directors • You will receive confirmation that it will go to the board; no additional correspondence • Letter tells options for payout

5. Where Your Personnel File Goes • Your personnel file is kept intact by the District for 7 years after your employment ends and is shredded after that time • Certificated employees also have a credit /clock hour file that they may wish to copy if applying at other districts

6. Payroll & Benefits Staff • Mary Perdue – Lead Payroll Specialist – Phone 354-7222 email MaryPer@SpokaneSchools.org • Cindy Sharp – Lead Benefit Specialist – Phone 354-7280 email Cindysha@SpokaneSchools.org • Patty Nevdahl – Retirement Specialist – Phone 354-7282 email PattyN@SpokaneSchools.org

7. Options for Payout 10 Month Employees • If you want payment all in June, notify HR by June 10 • Payout in June does not impact benefits for July and August • Payout in June does not impact taxes adversely (quarterly code entered)

8. Vacation Leave Sell Back • Limited to 30 days including vacation leave sold back in the last 2 years • Paid out automatically upon separation or retirement • TRS/PERS Plan 1 only – vacation sold back is reportable to Retirement

9. Sick Leave Sell Back – Separation • Eligibility (as specified in law) • TRS/SERS Plan 2 - 55 years old, 15 years service credit • TRS/SERS Plan 3 – 55 years old, 10 years service credit • TRS/PERS 1 – not eligible • Limited to 180 days maximum sell back at 4 days for 1 day pay • If your bargaining group selected VEBA, complete application and money goes into your VEBA account

10. Sick Leave Sell Back – Retirement • Limited to 180 days maximum sell back at 4 days for 1 day pay • If your bargaining group selected VEBA, complete application and money goes into your VEBA account • Must send Payroll a copy of your DRS letter which shows your retirement date

11. VEBA for Sick Leave Sell Back • Employee Groups vote annually on whether to have retirement sick leave sell back funds go into a VEBA account • If the group chooses VEBA, retirement Sick Leave pay off funds are deposited into a tax-free VEBA account • As a retiree, you submit claims to VEBA to be reimbursed for your medical, dental and vision premiums, and other qualified health care expenses

12. Benefits – End of Coverage • 10 month employees who work through the last day of school (separate or retire) • Benefits effective through end of September • Benefit deductions tripled if salary paid out in June

13. Benefits – End of Coverage • All 12 month employees OR • 10 employees who separate/retire any time other than the end of the school year (For example - March) • If last day worked is 1st - 14th of March – benefits end 1st of the next month, April • If last day worked is 15th - 31st of March – benefits end 1st of the month after that, May

14. Benefits – COBRA • Program that provides continuation of Medical, Dental and Vision insurance, and Health Flexible Savings Account upon loss of benefits • Provides an additional 18 months of benefit coverage for separations/retirements • Cobra notification automatically sent during your last month of coverage • Rehn and Associates is our third party administrator • Sent to your home address on file in HR

15. COBRA (cont’d) • 60 days to enroll – from date of notification or loss of benefits, whichever is later • Can not have a break in coverage/premiums • You pay the full premium • The portion you currently pay and the portion the district pays, plus a 2% administrative fee • Pay on the same rate structure (i.e. tiered or composite) as when an active employee • Call Payroll/Benefits if you have questions – 354-7333

16. PEBB Health Insurance for Retirees • Public Employees Benefit Board (PEBB) • PEBB retiree insurance is available for retirees who had benefits while employed • PEBB retiree insurance is also available for separating employees who are TRS/SERS Plan 3, 55 years old, and 10 years service credit • PEBB retiree insurance is NOT available for separating employees who are TRS/SERS Plan 2 • Retirees may choose COBRA or PEBB • Call PEBB for a packet – 1-800-200-1004 • Limited number of packets available in Payroll

17. PEBB (cont’d) • 60 days to enroll or defer coverage – from end of benefit coverage. • IMPORTANT – if you miss the 60 day window, you cannot enroll later! EVER! • Can complete a form deferring benefits if you will have benefits through another active employer sponsored or federal retiree plan • Deferral MUST be completed within 60 day window • Suggestion – submit enrollment/defer form 6 weeks before end of benefit coverage • Call PEBB for any questions – 1-800-200-1004

18. Benefits - Life Insurance • Basic life • May convert basic life to a private policy • Rate will change • Contact Payroll/Benefits for form • Supplemental life insurance (additional and spouse life insurance) • May be ported at the current rate for up to 3 years • You pay the premium • After 3 years, is converted to a private plan and rates can change • You can choose to discontinue the plan

19. Department of Retirement Systems Separations • Not required to withdraw money • Can leave money in and withdraw it at a future time • Retirement plan continues if employed with another eligible employer • Questions? Call DRS 1-800-547-6657

20. Department of Retirement Systems Retirees • Recommend using the DRS online benefit estimator on their website http://www.drs.wa.gov • Recommend attending the DRS free seminar or workshop for retirement planning. Visit DRS website to sign up or call 1-800-547-6657. • Get estimate of benefits from DRS if within 1 year of retiring • Tell DRS when you think you will retire. You can provide more than 1 date.

21. Department of Retirement Systems Retirees • Based on your call to DRS, they will send you an application if you are within 1 year of retiring • Return completed application to DRS three months before retiring

22. Department of Retirement Systems Retirees --10 Month Employees • If retire July 1, can receive SPS payroll check and DRS check in July and August • Plan 2 & 3 members • Get estimate of July 1 vs. September 1 retirement • Difference is two additional DRS monthly retirement checks vs. two months additional DRS service credit

23. Retirement Planning Seminars The DRS seminars run from 9 am to 2:30 pm and include information on: • State retirement plans • Financial planning • Estate planning • Washington State Deferred Compensation Program (DCP) • Voluntary Employees' Beneficiary Association (VEBA) • Statewide Health Insurance Benefits Advisors (SHIBA) • Social Security • Health Care Authority (PEBB) More information on signing up for the DRS Seminars is available at the State DRS Web Site -- http://www.drs.wa.gov

24. DRS – Working after Retiring • DRS limits how many hours you can work for a covered employer (i.e. school district) • Rules vary depending on the DRS plan. Contact DRS or payroll for a pamphlet! • Exceed the limits and your retirement will be stopped.

25. Applying for Rehire • Fill out complete application, certificated or classified • Include at least two letters of recommendation • Attend substitute seminar • Get fingerprinted if not within last two years

26. Social Security • Contact Social Security 1-800-772-1213 • “How the Social Security Changes Affect You” booklet. • Tutorial CD showing you how to Apply for Social Security Retirement benefits On-Line at the Social Security Administration’s Web Site www.socialsecurity.gov

27. Miscellaneous Information • SEA/WEA sponsored Retirement seminars • Three evening meetings usually in March • Free to all employees • Contact SEA for more information 325-4503 • District Retiree Dinner • Usually one evening in May • Notify HR of your retirement by mid-May • Invitation will be sent to you and you may bring a guest • Your supervisor is invited • Contact Communications Dept. for more information 354-7340

28. Exit Orientation Contact Information • Human Resources 354-7265 • Payroll/Benefits 354-7333 • PEBB 1-800-200-1004 www.pebb.hca.wa.gov • DRS 1-800-547-6657 email recep@drs.wa.gov www.drs.wa.gov • Social Security 1-800-772-1213 www.socialsecurity.gov

29. Exit Orientation Questions?