are you old enough to retire?€¦ · are you old enough to retire? pension reform changes...
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SERS | FUTURE MATTERS O45 | APRIL 2016
In This Issue:
Start Thinking About Tomorrow ‒ Today
®
Are You Old Enough to Retire?Pension Reform Changes Eligibility Requirements
With retirement around the bend, let’sreview the pension reform changesthat go into effect Aug. 1, 2017.
Pension reform law increased the ageand service credit needed forretirement.
Eligibility before Aug. 1, 2017
If you have at least 25 or more yearsof service credit before Aug. 1, 2017,you can retire under the current lawwith unreduced benefits:
• At any age with 30 years ofservice credit
• At age 65 with 5 years of servicecredit
You can retire early with reducedbenefits:
• At age 55 with 25 years of servicecredit
• At age 60 with 5 years of servicecredit
Eligibility on or after Aug. 1, 2017
If you have less than 25 years ofservice credit on or after Aug. 1,2017, you will be affected by pensionreform law. You can retire withunreduced benefits:
• At age 57 with 30 years of servicecredit
• At age 67 with 10 years of servicecredit
You can retire early with reducedbenefits:
• At age 60 with 25 years of servicecredit
• At age 62 with 10 years of servicecredit
Even with pension reform, retiring withSERS is still a pretty good deal. SERSis a Defined Benefit (DB) plan, whichprovides you with a dependablesource of retirement income based onyour age, years of service, and finalaverage salary.
If you have any questions, please visitour website at www.ohsers.org, or callus toll-free at 866-280-7377.
Remember, it’s always best to talk toSERS first. Don’t rely on rumors forinformation about your retirement, getit straight from us. n
Norma retired from Southeast Local Schools
Your Future MattersPage 2
Ask SERSPage 2
Information aboutSERS’ FinancesPage 2
EducationOpportunitiesPage 3
More Pension ReformPage 3
SERS SpotPage 3
Events Around OhioPage 3
How is SERS Savingfor Your Retirement?Page 4
I will be eligible for Social Security. If I retire from SERS, willmy Social Security benefit or SERS pension be affected?
2
Want More Information about SERS’ Finances? SERS publishes two documents summarizing the financial health and investmentperformance of the last fiscal year.
Both are available on our website at www.ohsers.org/financial-reports-1.
Your FutureMatters
Welcome to the first issue ofFuture Matters, SERS’ activemember newsletter.
The content and design ofthis publication are theresult of multiple focusgroup meetings with SERSmembers of all ages andservice time.
Their input was invaluableand appreciated.
We also value yoursuggestions and havecreated an email address atweb@ohsers.org where youcan send us story ideas ontopics that interest you.
SERS’ members are quitediverse based on age,gender, and years of service.
Our goal is to shareinformation that may be
helpful as you work and planfor retirement.
In this publication, we’llshare tips on financialplanning, guides to seasonalactivities, and informationabout SERS.
Retirement planning is moreimportant than ever becausemany people are livinglonger in retirement thanthey worked, and health carecosts are rising andcoverage is unpredictable.
Will your SERS retirementbenefits be enough to live onwhen you’re 80 or 85?
No matter what age you are,it’s not too late to startplanning for tomorrow. n
®
Your Social Security benefit will mostlikely be reduced, but your SERSpension will not be reduced.
If you plan to retire from SERS andare eligible for a Social Securitybenefit, your Social Security benefitmay be reduced by either the:
Government Pension Offset (GPO)
• Only SERS retirees who receive, orwill receive, a benefit based ontheir spouse’s Social Securityaccount are affected by the GPO.
• If impacted, your Social Securityspousal benefit is reduced by ⅔the amount of your SERS pension.
Windfall Elimination Provision (WEP)
• This penalty affects SERS retireeswho receive, or will receive, abenefit based on their own SocialSecurity account.
• If you have 30 or more qualifiedyears of earnings under SocialSecurity, your benefit will not bereduced by the WEP.
For more information regarding theGPO and WEP, contact the SocialSecurity Administration by telephoneat 800-772-1213, or by visiting itswebsite at www.ssa.gov. n
School employees contribute a part of
their salary toward their retirement with SERS.
Schools defer a portion of employee wages solely to fund your
retirement.
SERS invests these contributions to help
pay your lifetimebenefit.
Did You Know? Did Y w? Knooud YYo
retirement with SERS. their salary toward their
contribute a part of Sc
retirement with SERS. their salary toward their
contribute a part of chool employees
retirement. solely to fund your of employee wages
Schools defer a portion
benefit.pay your lifetime
contributions to helpSERS invests the
pay your lifetimecontributions to help
ese
• The Comprehensive Annual FinancialReport: Offers detailed financialstatements along with an in-depthexplanation of the numbers.
• The Summary Annual FinancialReport: Offers basic descriptions ofinvestments, pension funding,membership, and health care. n
Events Around OhioNORTHWESTFORT RECOVERY HARVEST JUBILEEJune 16-19 www.fortrecovery.org
NORTHEASTRECYCLED ROCKS!April 22Hike Ledges Trail at CuyahogaValley National Parkwww.nps.gov
PRO FOOTBALL HALL OF FAME MARATHONApril 24Marathon/Half Marathon/Team Relaywww.hofmarathon.com
SOUTHEASTTOUR HISTORIC DOWNTOWN CAMBRIDGEYear roundwww.downtowncambridge.com
SOUTHWESTCHUCK WAGON DINNER RIDESSaturdays, June-September Bonnybrook Farms in Clarksville, Ohiobonnybrookfarms.com/chuckwagondinnerrides
CENTRALBLOOMS & BUTTERFLIESFranklin Park ConservatoryMarch 12 - September 18Butterflies released every daywww.ohio.org/events/blooms-butterflies
NEW ALBANY WALKING CLASSICSeptember 11Largest walking-only race in countrywww.newalbanywalkingclassic.com
3
You probably recognize the blueSchool Employees Retirement System
of Ohio (SERS) logo on the top of this newsletter, butwho are we?
SERS is your retirement system.We provide lifetime retirement income for anyone whoworks for a public school in a non-teaching position,and meets the age and service requirements.
What does being a SERS member mean? SERS is a defined benefit plan, which provides adependable source of retirement income based onyour age, years of service, and final average salary atthe time you fill out your retirement application.
Unlike a 401(k) plan that bases benefit amounts oncontributions and any investment gains or losses,SERS invests contributions over the long term.
We are here to help.If you ever have any questions regarding your SERSaccount or benefits, call us toll-free at 866-280-7377or visit our website at www.ohsers.org.
Let us know how we can help. We want to partnerwith you to help you achieve the retirement of yourdreams. n
®
You May Hear Something AboutPension ReformPension reform discussions aimed at achieving 90%funded status for SERS’ pension fund continue.While actuaries model options and explore potentialchanges that are fair to both active and retireemembers, no decisions have been made. n
Retirement Education OpportunitiesIt is never too early to plan for retirement. Takeadvantage of the multiple resources available to guideyou along the planning process. Whether you prefer in-person or online education, we have options that willwork for your schedule.
If you plan to retire in the next five years,consider participating in our webinar,“Retiring with SERS.” Our staff discussesretirement eligibility requirements, SocialSecurity’s Government Pension Offset andWindfall Elimination Provision, health careoptions, and the retirement process.
If you plan to retire in 10-15 years, werecommend attending our educational PREPseminar, “Traveling the Path to Retirement.” Theseminar is a half-day program that covers important
aspects of retirement planning: pensioneligibility, pension payment options, SocialSecurity, financial planning, and healthcare options. PREP seminars are heldfrom mid-summer to early autumn.
Registration is open for webinars andPREPs. Visit www.ohsers.org to registertoday. n
Barbara, Mentor City Schools
Destination Retirement
®
School Employees Retirement System of Ohio
300 E. Broad St., Suite 100Columbus, Ohio 43215-3746614-222-5853 • Toll-free 866-280-7377www.ohsers.org
PRESORTED
STANDARD MAIL
U.S. POSTAGE PAID
COLUMBUS, OH
PERMIT NO. 1714®
®
SCHOOL EMPLOYEES RETIREMENT SYSTEM OF OHIO300 EAST BROAD ST., SUITE 100COLUMBUS, OHIO 43215-3746
CATHERINE P.MOSS
Chair, Retiree-Member
BARBRA M.PHILLIPS
Vice-Chair,Employee-Member
NANCYEDWARDSAppointedMember
MADONNA D.FARAGHEREmployee-Member
CHRISTINE D.HOLLANDEmployee-Member
JAMES A.ROSSLER, JR.
AppointedMember
DANIEL L.WILSON
AppointedMember
BEVERLY A.WOOLRIDGE
Retiree-Member
VACANTEmployee-Member
SERS Retirement Board
www.facebook.com/sersofohio
@sersofohio
CONTACT SERS
How is SERS Saving for Your Retirement?SERS has three main sources of income that pay forretirement benefits: employer contributions (14% ofpay), employee contributions (10% of pay), andinvestment income from the $12 billion in theretirement fund.
Employee and employer contributions,which are received monthly, are thesystem’s most reliable and dependablesources of income. Investment returnsare less predictable, but often supplythe largest source of income. In atypical year, they provide more than60% of a retirement fund’s income.
To figure how much money SERS will have to pay for thefuture retirement benefits of working members, weestimate that investment returns will average 7.75% peryear. This estimate is adjusted as economic conditions
change. Over the last 31 years, SERS’investment returns have averaged slightly
more than 9% per year.
SERS’ investment staff monitors thedaily, weekly, and monthly performanceof our investments. However, results over10, 20, and 30 years hold greatersignificance because we invest over a
member’s entire working career. n
64%InvestmentReturns
25%Employer
Contributions
11%Employee
Contributions
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