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RETIREMENT SEMINAR

RETIREMENT SEMINAR. GUILFORD COUNTY SCHOOLS. 5 WAYS TO RETIRE. Reduced Retirement: Age 50 with 20 years of service Age 60 with 5 years of service Unreduced Retirement: Age 60 with 25 years of service Age 65 with 5 years of service Any age with 30 years of service

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RETIREMENT SEMINAR

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  1. RETIREMENT SEMINAR GUILFORD COUNTY SCHOOLS

  2. 5 WAYS TO RETIRE Reduced Retirement: Age 50 with 20 years of service Age 60 with 5 years of service Unreduced Retirement: Age 60 with 25 years of service Age 65 with 5 years of service Any age with 30 years of service Health Insurance is provided with reduced and unreduced retirement. Effective 10/1/06 new employees must have 20 years of service to be eligible for free health insurance.

  3. Preparation for Retirement The first thing you need to decide is your retirement date(all retirement dates are on the first day of a month). You should review your personal information through the ORBIT system at www.myncretirement.com. Once you review your information on ORBIT you should then complete Form 309 requesting an estimate from the Retirement System at least 1 year before your retirement date.

  4. You may also visit the NC Department of State Treasurer Retirement website at: www.myncretirement.com . • Once you are on the website you will need to click on Retirement, click on Estimate Benefits, click on Teachers’ and State, click on continue. You will need the following information: your DOB, Date of Retirement, Total Creditable Service at Retirement, Accumulated sick leave hours, Average final compensation which is your 4 highest consecutive years divided by 4.

  5. You must have an estimate before scheduling a retirement appointment with me. • Email me 6 months before your retirement date to schedule an appointment to complete your paperwork.

  6. During the scheduled appointment time, we will discuss your retirement service years, review your benefits and your leave days. • SICK LEAVE • 20 days of sick leave equals 1 month of service credit that will add to your years of service. There is no limit on sick leave days. For the final month, any increment over .125 will count towards the final month of service. This means if you have at least 1 hour of a day you will earn 1 month of sick leave.

  7. To realize the maximum benefit of your leave, take your leave balances and add the number of days you will accrue throughout the last year of your employment. Annual leavesick leavecurrent 29.0current 240.125will earn +21.0will earn +10.000total 50.0total 250.125built in -10.0transferred AL +10.000total 40.0Total 260.125transfer to sick -10.0 TOTAL 30.0 (payout days) 260 = 1 yr 3 months additional service for a 10 month employee .125 = 1 extra additional month of service for a total of 1.4 additional service.

  8. PERSONAL LEAVEPersonal leave days will convert to sick leave (classroom teachers and media specialists). ANNUAL LEAVEYou will be paid out for up to 30 annual leave days. BONUS LEAVEYou will be paid out for any bonus leave you have.LONGEVITYYou will also receive prorated longevity.

  9. If you wish to contribute your payout amounts of annual leave, bonus leave and longevity in a lump sum to your 401k or Annuity, I will give you the instructions for this process. You must be participating in these programs before your last paycheck is issued. For answers about how much you are allowed to put into your annuity, you must work through your broker.

  10. Health insurance is part of retirement for your lifetime (if eligible). You may cover eligible dependents at current premium rates. When you or a covered dependent turn 65 you must sign up for Medicare Part A and B. At that time Medicare A & B are Primary and the State Plan is secondary. Dental may be kept 18 months under COBRA provisions .

  11. You may convert or port any or all optional life insurance you have with Met Life (convert means change to a new policy, port means to keep the same policy. With both options, the premiums will increase annually and at age 70 the coverage amount decrease by 50%). You may continue certain flexible benefits after retirement (you may COBRA vision for 18 months ; benefits that may be continue longer than 18 months are the cancer plans, whole life insurance and the hospital indemnity). The state offers a $10,000 death benefit policy. The Department of Insurance will offer you both dental and vision plans after retirement. If chosen these deductions will be deducted from your retirement check.

  12. Retirement Forms & Requirements Forms • Form 6 - Claiming Your Retirement Benefits • Form PS-33 - Resignation Form Requirements • Your Driver’s License or Birth Certificate (Copies) • Beneficiary’s Driver’s License or Birth Certificate (copies) if interested in Payment Option 2 or 3 • Social Security Statement if interested in Payment Option 4

  13. Once we have discussed all of this information I will prepare the required forms for you to sign. I will give you copies of the completed forms and I will forward the original forms to the Retirement System and Human Resources for processing. Upon receipt the Retirement System will send you the following paperwork: • Notification Letter • RET-170 - Authorization Agreement for Direct Deposit • Ret. HM - Online Health instructions • RET-333- Notice of $10,000 Contributory Death Benefit for Retired Members • Form 6E-Election of Benefits (select payment option) • Form RET-290-Notice of Tax Withholding • Form 336 – Designating Beneficiary(ies) for Guaranteed Refund • Report of Estimated retirement Benefits

  14. Upon receipt you will then decide on your health insurance coverage, payment option for retirement along with the decision regarding the $10,000 Death Benefit and your Tax Exemptions.All retirement checks are subject to Federal Withholding Taxes.As a retiree you may change your tax selections anytime you feel you need to increase or decrease the deductions.

  15. You need to consult your accountant regarding your options before making your final decision about taxes after you retire.If you had 5 full contributory years in the State on August 12, 1989, you are exempt from paying State Withholding Taxes.Otherwise, you are subject to paying them on your retirement.If you had five years and took the money out and bought back the time, you forfeited the exemption and are still subject to the taxes.

  16. When you retire, your first check is always mailed out on the 25th of the month so you receive it about the 28th or 29th. After you cash your first check all future checks are direct deposited into your account on the morning of the 25th. In December, they are typically posted on or about the 20th. Retirement checks are paid 12 times per year.

  17. How The Payment Options Work Option 1 Maximum Payment • At your death • To You To Beneficiary • $2,742.00 None

  18. Payment Options Option 2 100% Joint And Survivor You receive reduced monthly payments for life. After you die, your beneficiary receives the same amount monthly for life. To You To Beneficiary $2,277.00 $2,277.00 Option 3 50% Joint And Survivor You receive reduced monthly payments for life. After you die, one-half of your payment continues to your beneficiary for life. To You To Beneficiary $2,488.00 $1,244.00 Option 4 Social Security Leveling You receive larger monthly payments than you would otherwise be entitled to receive, until you become eligible for Social Security at age 62. To age 62 - $ 3,242.00 Age 62 and after $2,042.00

  19. Option 6Modified Joint And Survivor Option 6-2 -- combination of Option 2 and *maximum payment To You Beneficiary $2,218.00 $2,218.00 Option 6-3 -- combination of Option 3 and *maximum payment To You Beneficiary $2,453.00 $1,226.00 *If beneficiary dies before retiree, retiree monthly amount will convert back to maximum payment.

  20. Example of estimate • Department of State Treasurer • TEACHERS’ AND STATE EMPLOYEES RETIREMENT SYSTEM • 325 North Salisbury Street • Raleigh, North Carolina 27603-1385 22-Nov.-2004 • PRELIMINARY ESTIMATE OF RETIREMENT BENEFITS • Jane A. Doe S. S. # 000 00 0000 • 777 Deer Crossing Lane • Deer Park, NC 27400 A.# 000000 • = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = • ASSUMPTIONS USED FOR PRELIMINARY ESTIMATE OF BENEFITS • Date of birth 01/26/44 Total service credits 30.0000 • Retirement date 01/01/08 Aver. Final compensation $58,964.00 • Sick leave days 160.00 Total contributions $69,664.04 • Annual leave days 30.00 Taxed contributions $10,000.00 • Est. monthly SS (age 62) $ 1,200.00 • Beneficiary: • John A. Doe Beneficiary birthdate: 10/15/44 • At your death • To You To Beneficiary • MAXIMUM PAYMENT $2,742.00 None • PAYMENT OPTIONS • (2) 100% Survivorship $2,277.00 $2,277.00 • (3) 50% Survivorship $2,488.00 $1,244.00 • (4) Social Security Leveling • To Age 62 $3,242.00 None • Age 62 and after $2,042.00 None • (6) Pop-up • With option (2) $2,218.00 $2,218.00 • With option (3) $2,453.00 $1,226.00 • GUARANTEED REFUND (under all of the payment plans above): If you and the beneficiary (if any) you may have to receive……………………………………………………………………………………… • *The estimate under Option (4)……………………………………………………………. • ***Based upon your age…………………………………………………………………… • *Disclaimer*

  21. Reemployment after Retirement Under current legislation, all state employees may return to work under a cap. A 6 month break is required for all retirees returning to state employment. During the 6 month break the employee shall not work in any capacity in a organization participating in the Teachers’ and State Employees’ Retirement System, including part-time, temporary, substitute, part-time tutor or contracted services. The cap is determined by the Retirement System. Each year the standard cap changes in January. You must contact the Retirement System to determine your yearly cap. After the 6 month break a retiree may work as an interim, tutor, substitute, temporary status or permanent part-time (<30 hrs. per week). Employees in this capacity must not exceed earnings cap and must not be employed in permanent full-time status.

  22. Reminders • You should send your estimate request (Form 309) to the retirement system at least 1 year prior to your retirement. • You must email or call to schedule an appointment 6 months before your retirement date. • The earliest you can complete your paper work is 120 days prior to your retirement date. • You should not complete your paperwork later than 60 days prior to your retirement date. • Please advise your supervisor of your decision to retire in a timely manner.

  23. RETIREMENT GUIDELINE • Request estimate from retirement system. (The earliest you can request an estimate is 2 years before your retirement date. If you would like to have an estimate before the 2 years you will need to visit the Teachers’ and State Employees’ Retirement Systems website atwww.myncretirement.com click on retirement, click on estimate benefits, check Teachers’ and State and click continue do the retirement estimate online. You will need the following information: your DOB, Date of Retirement, Total Creditable Service at Retirement, Accumulated sick leave hours, Average final compensation which is your 4 highest consecutive years divided by 4. You should review your personal information through the ORBIT System at www.myncretirement.com before requesting your estimate. 2. Once you have your estimate contact Jeannie Greer for Retirement appointment (greerj@gcsnc.com) 6 months before retirement date. 3. My appointment with Jeannie Greer is _______________at ________o’clock. 4. During appointment, years of service, annual leave, sick leave, benefits and payout information will be discussed. 5. After appointment you need to do the following: Wait for the Notification letter, RET-333 Notice, RET-170 Authorization Agreement for Direct Deposit, Ret. HM online health instructions, FORM 6E, RET-290, Form 336 – Designating Beneficiary(ies) for Guaranteed Refund and Report of Estimated retirement benefits to be sent to your home address. Once received complete forms and return to the retirement system. 6. You will receive in the mail from the GCS Benefits Office a letter with the termination dates of your benefits. 7. You will receive offers from the Dental and Flexible benefits companies regarding the benefits you had with GCS. Procedures to follow for annuity/401k payout totals: Annuity: Contact your broker once the payout totals are sent to you and have completed forms sent to Finance 1 month prior to payout . 401k: Complete the Prudential “One Time Deferral Rate Change Form” (which will be given to you during your appointment with me) once the payout totals are sent to you. Completed form should be sent to payroll.

  24. IMPORTANT WEB SITES/TELEPHONE NUMBERSThe Retirement Handbook and All Forms Available From the Retirement System May Be Viewed and Downloaded From the Website At: www.myncretirement.com There is more than one state retirement system. Our retirement system is the: Teachers’ and State Employees’ Retirement SystemToll free line: 1-877-627-3287 active employees’Toll free line: 1-877-733-4191 retired employees’BENEFIT PLAN SERVICES, INC. SUPERIOR VISION (Direct Reimbursement Dental Plan) Website: www.superiorvision.com Phone: (336) 889-2003 Customer Ser/Claims: 1-800-507-3800 NC Smart Choice PPO RETIREMENT DENTAL AND VISION Customer Service 1-888-234-2416 Customer Service: 1-800-462-7864

  25. ORBIT SYSTEM ORBIT stands for Online Retirement Benefits through Integrated Technology. The ORBIT SYSTEM was launched on 10/1/07 for active employees. You may access the system at www.myncretirement.com: Click on Retirement, Click on ORBIT in the drop down box, Register in the register box if 1st time user; otherwise login.

  26. This system will allow you to view personal information, account summary, account history, view benefit estimate, annual account statement and track recent request. • You can also create a custom benefit estimate or service purchase estimate, request a current statement of your account or a counseling session and update your phone number and email address .

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