1 / 50

PERS Education and Retirement Planning

PERS Education and Retirement Planning. Welcome ! PERS One-Year Group Updated: 2/13/2012. Disclaimer. Information may change as the result of administrative, legislative or judicial decisions. Agenda. Individual Account Program Retirement Eligibility Calculation Factors and Methods

jayme-bowen
Télécharger la présentation

PERS Education and Retirement Planning

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PERS Education and Retirement Planning Welcome ! PERS One-Year Group Updated: 2/13/2012

  2. Disclaimer • Information may change as the result of administrative, legislative or judicial decisions.

  3. Agenda • Individual Account Program • Retirement Eligibility • Calculation Factors and Methods • Review of Estimate of Benefits • PERS Retirement Processes • Health insurance; COLA • Variable after retirement • Working in retirement; Taxes • Review Retirement Forms

  4. Individual Account Program • Effective January 1, 2004 • Member contributions to Individual Account Program (IAP) • No contributions to PERS member account after this date • Retirement forms for IAP and separate retirement forms for PERS • Retirement benefit from IAP and separate retirement benefit from PERS

  5. IAP Retirement • When retire from PERS, must retire from IAP • Retirement date • 1st day of any month • Submit retirement forms within the 90 day period prior to your retirement date • First payment due • Within 120 days of retirement date

  6. IAP Distributions • IAP retirement benefit choices • Lump sum (mailed direct to member) • Installments over 5-10-15-20 year periods, or • Anticipated Life Span Option • Can receive IAP distributions only after separation from PERS covered employment • IAP cannot be used for Trustee to Trustee Transfers

  7. PERS Trustee to Trustee Transfer for Purchases • If eligible to purchase service time • Can use pre-tax dollars from 457 deferred compensation plan, or a 403(b) tax-sheltered annuity • Time limit on purchases • Within the 90 days before retirement date • Transfer form required • PERS: http://oregon.gov/PERS

  8. PERS Data Verification Requests • Must be within two years of earliest service retirement age • Will cover following data elements • Employment/Salary details • Service time • Regular and variable account balances • Final average salary • Unused sick leave (beginning July 1, 2012)

  9. PERS Data Verification Requests • Form required • PERS: http://oregon.gov/PERS • First verification free • Fee for additional verification • Data verification not an estimate • Only provides verification for what will ultimately determine the actual benefit

  10. Online Member Services • You can: • Access your account information • Perform activities related to your account • Produce your own estimate • Link directly to the PERS web site to view FAQs, forms and other information • http://oregon.gov/PERS

  11. PERS Retirement Eligibility • 30 years PERS Total Creditable Service Time OR • Age • Normal retirement • 58 – Tier One • 60 – Tier Two • 55, or 50 + 25 years total service – P&F • Early retirement • 55 • 50 – P&F

  12. The Calculation Factors • Age • Service time • Final Average Salary • Account Balance

  13. Calculation Methods • Full Formula • Service time x final average salary x .0167 • (P&F .0200) • Money Match • Age factor x account balance x 2 • Formula + Annuity (8/21/81) • Service time x final average salary x .01 • (P&F .0135) + Age factor x account balance

  14. Option 1 Calculation Method Comparison • Money Match $ 2,966.64 • Full Formula $ 2,329.10 • Formula + Annuity (Contributions prior to 8/21/81)

  15. The Retirement Estimate: Age and Retirement Data IMA PERSSON 1234 ANNUITY AVE GOLD HILL, OR 97000 Date: 1/30/2012 PERS ID: Member Date of Birth: 8/6/1953 Retirement Date: 7/1/2012 Last Day of Service: 6/30/2012 Termination Date: 6/30/2012 Retirement Age: 58 yrs 10 mos

  16. The Retirement Estimate: Page TwoBeneficiary and Service Time Beneficiary: Olov Year of Birth: 1953 Creditable Service Time: 26 yrs 0 mos Granted Service (disability only): 0 yrs 0 mos

  17. The Retirement Estimate: Page TwoService Time; Member Cost Service Purchases: Prior Service Time: 0 yrs Waiting Time: 0 yrs 6 mos Sick Leave Hours: 0 Forfeited Time: 0 yrs 0 mos Vacation Hours: 0 Full Cost: 0 yrs 0 mos Contract Salary: $0.00 Miscellaneous: 0 yrs 0 mos Contract Hours: 0 Estimated Member Cost: $1,188.61 Total Creditable Service with Purchase(s): 26 yrs 6 mos

  18. Full-Cost Purchases • Senate Bill 711 – military service • Senate Bill 665 – teaching time • Costs • Present cost of future benefits • Provides service time at high average cost

  19. Member Cost • After-tax contributions in member account • 1099 R • Member cost is not taxed again in retirement

  20. The Retirement Estimate: Page Two Salaries High 3 Years Last 36 Months Year Salaries Year Months Salaries* 2009 $65,938.58 2012 6 $31,530.72 2008 $67,530.11 2011 12 $62,244.97 2006 $62,307.32 2010 12 $61,865.12 $195,776.01 2009 6 $34,507.78 $190,148.59 *includes projected salaries Average monthly salary: $5,438.22

  21. The Retirement EstimatePage Three: Account Information Regular Variable Total Current account balance: $139,709.23 $25,850.46 $165,559.69 Projected account balance at retirement: $156,841.63 $29,031.28 $185,872.91

  22. The Retirement EstimatePage Three: Benefit Options and Amounts Option 1 Calculation Method Comparison: $2,966.64 Money Match $2,329.10 Full Formula Formula + Annuity

  23. Tax RemedyHB3349 or SB656 • The greater of either... • HB 3349 • Benefit increase • Based on service time prior to October 1, 1991 • SB 656 • Based on service time if hired prior to July 14, 1995 • Maximum 4% increase

  24. Retirement Benefit Options • First twelve options pay member lifetime monthly benefit unless the Option 1 benefit is $200 month or less. • If Option 1 benefit is $200 month or less • No monthly benefit • Lump sum payment equal to actuarial value of benefit

  25. The Retirement Estimate: Page ThreeBenefit Options and Amounts No Purchase With Purchase Option 1 $3,048.14 $3,055.64 Refund Annuity $3,013.13 $3,020.55 Option 15 C $2,956.85 $2,964.13 Option 2 $2,767.71 $2,774.52 Option 2A $2,737.24 $2,743.97 Option 3 $2,901.84 $2,908.97 Option 3A $2,883.54 $2,890.63

  26. The Retirement Estimate: Page ThreeLump Sum Benefit Options and Amounts No Purchase With Purchase Lump Sum Option 1 $1,466.58 $1,484.36 Lump Sum Option 2 $1,331.65 $1,347.81 Lump Sum Option 2A $1,316.99 $1,332.95 Lump Sum Option 3 $1,396.18 $1,413.12 Lump Sum Option 3A $1,387.38 $1,404.21 Total Lump Sum $381,921.38 $382,898.19

  27. Retirement Option Choices • Option 1 • Maximum monthly benefit • No beneficiary • Refund Annuity and 15 Year Certain • Member may choose multiple beneficiaries and change them at any time • Beneficiary benefits are limited • Refund Annuity: Nine – Eleven years • 15 Year Certain

  28. Retirement Option Choices • Joint Survivorship Options • One beneficiary • 60 days to change the beneficiary • Options 2 and 2A • Full survivorship options • With 2 and 2A, and a non-spousal beneficiary, see the PERS website for possible benefit adjustments. • Options 3 and 3A • Half survivorship options

  29. Lump Sum Options • Projected account balance • One through five annual installments • Interest credited on unpaid balance • Options 1, 2, 2A, 3 and 3A provide lifetime monthly benefit

  30. Total Lump Sum • Distribution of your PERS account with employer match • No monthly benefit paid • One through five annual installments • Interest credited on unpaid balance

  31. The Retirement Estimate: Page FourAssumptions used in Projection • Account Balance: • Regular Projected at 8% • Variable Projected at 8% • Job Classification: • Retirement Job Class 01 • Salary Projections: • Salary Projected to increase 0% annually

  32. Purchase Documents Waiting Time and Forfeited Time • Time Limit on Purchase(s) • During the 90 days before retirement • Not on or after retirement date • Mail purchases to: PERS PO Box 2127 Portland, OR 97208-2127

  33. Health Insurance and Retirement • Enrollment opportunities for PERS Sponsored Health insurance • At retirement • At Medicare enrollment • Any time, with at least 24 months of continuous employer group coverage • Other options • Employer sponsored plans (ORS 243.303) • COBRA • Portability and individual plans • Spouse’s employer plan

  34. PERS Sponsored Health Insurance: Additional points • Eligibility • Retirees • Spouses and dependents • Of current or deceased retirees • Of deceased member eligible to retire • Subsidies may be available • RHIA: At Medicare eligibility • RHIPA: State of Oregon employees • Requirements for subsidy eligibility • Total PERS-covered service time • PERS group health insurance program

  35. Retirement: Date; Forms; and Your Employer • Retirement date • 1st of any month • Based on age or service time • Submit the retirement forms • Within the 90 day period prior to your retirement date • Resign all PERS-covered positions • Employer providesinformation to PERS

  36. Retirement Forms • Call PERS Customer Service for a retirement package or download the forms from PERS website • PERS mails you notice soon after receipt of your retirement forms

  37. First Monthly Check Issued • Within 92 days of retirement date • Estimated payment or actual payment • Retroactive

  38. Notice of Entitlement • Notice of Entitlement • Option changes possible within 60 days of first benefit check or receipt of NOE, whichever is later • Dispute Notice • 240 days from the later of: • Date first actual payment is made • Date Notice of Entitlement is provided to the member

  39. Cost of Living Adjustment (COLA) • An annual adjustment payable August 1st • Up to 2% of the July gross benefit • 2% is the maximum increase • July 1st retirement • Last date to retire in any year, and receive the COLA for that year

  40. VariableAnnuity • Variable Dollars At Retirement • Number of units • Variable Annuity Unit Value • Set annually (11/1 - 10/31) • Variable Annuity Income • Part of benefit • Based on unit value

  41. Account Balance - $100,000 $50,000-R $50,000-V Fixed Annuity Variable Annuity $500 $500 Variable Annuity Example Initial Benefit $100,000 Fixed Pension $1,000 + 500 + 500 $2,000 $1,000

  42. VARIABLE ANNUITY EXAMPLE Year 2: 11/1-10/31 - Variable = 18% Variable Per Cent = 18% - 8% = 10% Var. Change = $500 x (10%) = $50 Benefit = $1000 + $500 + $550= $2050

  43. VARIABLE ANNUITY EXAMPLE Year 3: 11/1-10/31 - Variable = 0% Variable Per Cent = 0% - 8% = - 8% Var. Change = $550 x (-8%) = - $44 Benefit = $1000 + $500 + 506= $2006

  44. Working after PERS Retirement • For a Private-sector employer • No employment limit • For Oregon PERS-participating Employers • 1039 hours/calendar year limit • Exceptions exist • Only for normal retirement (age or service time) • Review exceptions on http://oregon.gov/PERS • PERS and Social Security benefit: • Higher of 1039 hrs/calendar year or Social Security limit.

  45. Tax Considerations • Monthly benefit • Subject to state and federal taxes • Oregon residents • Subject to Oregon and federal tax • Non-Oregon residents • Federal tax only; no Oregon tax • No withholding for any other state

  46. Member Resources • Websites and E-mail link for PERS website • PERS: http://oregon.gov/PERS • PERS Insurance: http://pershealth.com • IAP account: https://iap.csplans.com • Toll-free telephone number • PERS • 1-888-320-7377 or 503-598-7377 • PERS Insurance • 1-800-768-7377 or 503-224-7377 • PERS and financial education • http://oregon.gov/PERS

  47. More Resources • Attend additional PERS presentations • PERS: http://oregon.gov/PERS • Individual meeting • Retirement Application Assistance Session • Within 90 days of retirement • PERS: http://oregon.gov/PERS • 1-888-320-7377 or 503-598-7377

  48. Thank you for attending this presentation!

  49. Police and Fire Units • Background • Purchase (8 Units) • Read Pre-Retirement Guide • Employee cost = $4,000 • Employer match = $4,000 • Benefits • $160 per month from age 60-65 • Less if over more than 60 months • No COLA increases • Separate unit application forms

  50. Surviving Spouse Benefit - P&F • Benefit • 25% of Refund Annuity benefit OR • 25% of Option 1 benefit (Lump Sum) • Beneficiary • Surviving spouse OR • Dependent children under 18

More Related