Retirement Incentive Program 2009 An overview for SERS participants May 2009 1.
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Transcript of Retirement Incentive Program 2009 An overview for SERS participants May 2009 1.
Retirement Incentive Program 2009An overview for SERS participants
May 2009
1
Agenda
• Retirement Incentive Program– Eligibility Requirements– Program Features – Decision Criteria
• SERS Pension Options• Retiree Health Insurance• Retiree Life Insurance• Additional Information
– Retirement Website– Retirement InfoLine
• Q & As
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Eligibility Requirements• Age 55 or older on or before June 30, 2009• 10 years of actual state service
– Not prorated for part-time employees (date to date)– Does not include purchased service
• Hazardous duty - Any age after 20 years of actual hazardous duty service
• Must immediately commence SERS benefit
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Program Features• Employee choice of June 1, 2009 or July 1,
2009 retirement date • SERS calculation: 3 years added to credited
service• Modified payout schedule for accruals
– Paid in 3 installments in July 2012, 2013 and 2014– State option: lump sum on or before July 1, 2012 if
accrual is less than $2,000
• Retiree health– Eligibility for Preferred Plan– Prescription drug copays: $3 generic/$6 brand name
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Decision Criteria• Can I afford to retire?
– Income sources in retirement– Expenses in retirement
• Am I ready to retire?– Consideration: how you will spend your days– Stricter rules on re-hired retirees
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Pension Payment Options• Straight Life
– Highest benefit for you for your lifetime– No benefits payable after your death– Health benefits cease for spouse/dependents after
retiree death
• 50% Spouse – 50% of your pension benefit continues to your spouse after
your death– Spouse/dependents eligible to continue on health plan
• 50% or 100% Annuitant – Percentage of your pension payable to your designated
annuitant after your death
• 10 or 20 Year Period Certain – Pension benefit guaranteed for 10 or 20 years– Balance payable to annuitant(s) should you die prior to 10 or
20 years– Only option that allows for multiple annuitants
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Choosing a Payment Option• Married participants
– Must select 50% or 100% option unless spouse waives right
– Must select 50% or 100% option for spouse to continue on health plan after death of retiree
• Reductions for 50% and 100% option based on age of spouse/contingent annuitant
• Only the 10 and 20 year certain options allow for multiple contingent annuitants
• Cost analysis– Life expectancy– Finances
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Retiree Health Insurance• Coverage effective one month after retirement
– Remain in employee health plan first month of retirement
• Plan designs generally same as those offered to active employees– Make election at retirement and during annual open
enrollments
• Medicare-eligible participants– Must enroll in Medicare Part B, cost reimbursed– Need to provide Medicare with proof of creditable
coverage to avoid late entrant penalty– Medicare Part D enrollment unnecessary
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Retiree Life Insurance• Provided to employees enrolled in basic life
insurance at retirement• Amount of coverage based on years of service
– 25 or more years of service, 50% of basic amount– Prorated if less than 25 years of service
• No cost to retiree
Retirement Website
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• A Guide to Retirement Benefits– Overview of retirement benefits and processes
• Retirement Application Information– Form needed to initiate retirement paperwork
• Retirement estimates– Do-it-yourself pension estimating info
• Retirement Forms and Checklist• SERS Summary Plan Descriptions
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Retirement InfoLine
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• (860) 486-6544• Dedicated line for retirement questions• Calls answered within 24 hours
(M-F, workdays)
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Next Steps• Make timely decision
– Provide supervisor/management with as much notice as possible
– Provide HR with Application Information as soon as possible
– Paperwork must be submitted prior to retirement date
• Print forms from retirement website– Take notice of forms requiring notarized signature
• Attach required proof– Birth certificate (you, spouse, dependent children)– Marriage certificate, if married– Medicare Part B card, if Medicare-eligible
• Attend sign up session
Retirement Incentive ProgramQuestions and Answers
For additional questions• Retirement Website
(hr.uconn.edu>Benefits>Retirement)• Dedicated telephone number
(860) 486-6544
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