usd 259 retirement seminar hosted by employee benefits & insurance management dept. usd 259

USD 259 Retirement Seminar

Hosted by Employee Benefits & Insurance Management Dept.

USD 259

USD 259 VOLUNTARY EARLY RETIREMENT PLAN

“The Bridge”

Requirements for Eligibility

Hire or rehire in a benefited position prior to July 1, 1996 15 years or more in a benefited position with USD 259 At least age 50 but not over 65 Vested with KPERS Employee group must participate Must apply for retirement by the last working day in

February, if you wish to receive Bridge payments anytime during the next fiscal year.

Not Required . . .

• You do not need 85 points to qualify for the District’s Early Retirement Program, known as the “Bridge”.

• You do not need to be 60, if leaving employment to be eligible to “vest” your Bridge benefits.

You may be eligible…

• If you’re at least age 50 but not over 65, and • You have 15 or more years in a benefited

position with USD 259. • Contact the Retirement Office before

terminating to determine if you are eligible for the “Bridge”.

• If you are terminated from employment, you no longer qualify for the “Bridge”.

Work Restrictions after Early Retirement

• After retirement you are ineligible for employment with USD 259 in any capacity other than as a substitute employee.

• Any exception to this policy concerning employment will be subject to approval by the Superintendent of Schools.

“Bridge” Consists of

Bridge Payment

BOE Life Insurance until 65

BOE Health Insurance available, if you pay the premium and meet the qualifications

Note: Must be receiving KPERS retirement Benefits to begin “Bridge” payments.

Bridge Payment . . .

• Monthly payment until age 65

• May include two parts:– Social Security “Bridge”

– KPERS “Bridge”

BOE “Social Security Bridge”

Begins at age 60 (or at retirement if older) Ends at age 62 Maximum of 24 payments Payment based on

– Social Security estimate– Reduced by 5% for each year under 20 years of

USD 259 service.

BOE “KPERS Bridge” Begins at age 60 (or at retirement if older) Ends at age 65 Maximum of 60 payments Payment based on

– Final Average Salary with KPERS– Years of service with KPERS **Note: Any Purchased (Buyback) service are excluded

(e.g.: Forfeited, Military or Out of State Service)

– 1.4% multiplier for participating service

Bridge Taxes

Bridge Payments are taxable for:• Federal Income Taxes and• State Income Taxes

Note: Consult your tax advisor on any tax consequences.

Example: Retire at age 60, $55,000 final average salary, 25 years of service

Age 60 KPERS $2,000

Age 62 KPERS $2,000

Age 65 KPERS$2,000

USD 259 (KPERS) Bridge $1,650USD 259 (Social Security) Bridge $1,200

Social Security (if started at 62) $__?__

Social Security (if started) $___?_

USD 259 (KPERS) Bridge $1,540

Total $4,850

Total $4,850

Total $3,200

Bridge Life Insurance Options

• BOE Life Insurance until 65

– Life Premium paid by USD 259– Benefit amounts same as district life benefits -

this is $30,000 (for most employee groups)– This is in addition to $4,000 from KPERS or

any additional purchased from Minnesota Life.

Health Coverage Options at Retirement

• If you wish to participate in the USD 259 Health Plan as a Retiree. You must enroll for coverage with Employee Benefits by your retirement date or coverage will be terminated. – At this time, you and your spouse may stay on the USD 259 health plan.– USD 259 Retiree premiums are subject to change based on yearly

negotiations (premiums can be 125% of what BOE or employees pay).

• Investigate and explore other health plan coverage options– Senior Health Insurance Counseling for Kansas (SHICK)– AARP– Other Individual & Group Policies

Health Coverage Options at Retirement

• Retirement at or after age 65 (with spouse age 65 or older)

– No longer eligible for USD 259 health plan

– Must sign up for Medicare A, B & D or a supplemental plan.

Health Coverage Questions

• For USD 259 Health Plan: – Coventry Customer Service: 1-866-765-7841– Judy Foy: 973-4564 or jfoy@usd259.net

• Medicare: 1-800-722-1213

1-866-931-9173 (local )

• SHICK: 316-660-0100 ext 0117

Factors to Consider before Retiring Early

• Retirement is a major lifestyle change• Salary and longevity end• Social Security• Health Care Costs• KPERS Benefits Change• Earnings Limits • Return to Work Options • Increased Life Expectancy / Effects of Inflation• Effective Date of Retirement

How much money do you need to retire?

• Financial planners recommend 80-100% of your working income.

• Where will your money come from?– Social Security– KPERS– Personal Savings and Investments– USD 259 Bridge (if eligible)

Your Responsibility:• Contact the retirement office for retirement counseling

appointment to sign retirement paperwork. • Deadline to sign if you plan to draw in the next fiscal year, July

2011 to June 2012, forms signed by 25th of February, 2011.• If leaving district, you must sign Pre-Early Retirement forms

prior to leaving to vest your rights to benefits starting at 60.• KPERS requires proof of age and any legal name changes.• Must notify KPERS and USD 259 Human Resources of address

changes.• Must notify KPERS and USD 259 Payroll Dept. of banking

institution before starting benefits or if any changes after retirement.

USD 259 Early Retirement Deadlines

• Bridge Benefits in the next fiscal year- forms signed by last working day in February.Fiscal year runs July 1, 2011 to June 30, 2012.

• If leaving district this year, but wish to draw Bridge benefits after next fiscal year - you must sign Pre-Early Retirement forms prior to leaving to vest your rights to benefits starting at 60.

Calculators

• USD 259 Bridge Calculatorhttp://kperscalc.usd259.net/

• KPERS Calculatorhttp://www.kpers.org/benefitcalckpers.htm

Questions About KPERS or the “Bridge”

Leilani Hook,

USD 259 Retirement Specialist

316-973-4590

lhook@usd259.net

or e-mail employeebenefits@usd259.net

www.kpers.org 1-888-275-5737