welcome!

Saint Paul Public School District

Retirement Insurance Benefits Seminar

Saint Paul Public Schools District

Retirement Insurance Benefits

Benefits OfficeLynn Burwell360 Colborne StreetSt. Paul, MN 55102

Phone: 651-767-8208Fax: 651-665-0269email: [email protected]

Early Retiree InsuranceEarly Retiree InsurancePolicy DescriptionPolicy Description

If you meet the age and length ofIf you meet the age and length ofservice requirements for early retireeservice requirements for early retireeinsurance as defined in yourinsurance as defined in yourbargaining unit contract, you remainbargaining unit contract, you remainin the same insurance plan(s) as thein the same insurance plan(s) as theactive employee group and theactive employee group and theDistrict contributes towards theDistrict contributes towards themonthly premium.monthly premium.

The amount that the District contributes The amount that the District contributes towards the monthly health insurance towards the monthly health insurance premium is a FROZEN amount equal to premium is a FROZEN amount equal to the dollar amount being contributed the dollar amount being contributed towardstowardshealth insurance on the date of yourhealth insurance on the date of yourretirement. retirement.

Some Early Retirees are permitted toSome Early Retirees are permitted toSwitch from single to family coverage* at Switch from single to family coverage* at open enrollment.open enrollment.

If you are allowed to add a dependentIf you are allowed to add a dependent

At open enrollment, the frozen DistrictAt open enrollment, the frozen District

contribution will change to the dollar contribution will change to the dollar amount that was contributed towardsamount that was contributed towards

Family coverage on the date of yourFamily coverage on the date of your

retirement.retirement.

If you switch from family coverage toIf you switch from family coverage to

single coverage at open enrollment, you single coverage at open enrollment, you will receive the FROZENwill receive the FROZEN

contribution equal to the amount thatcontribution equal to the amount that

was contributed towards single coverage was contributed towards single coverage at the time of yourat the time of your

retirement.retirement.

Bargaining unit contractlanguage varies as to

whetheryou may add dependents

afteryour retirement. Check your contract

language!

Qualifying for Early RetireeQualifying for Early RetireeInsurance (Before Age 65)Insurance (Before Age 65)

If you are a Teacher :If you are a Teacher :

Eligible for pension benefits, andEligible for pension benefits, and Terminate employment with Saint Paul Public Schools, andTerminate employment with Saint Paul Public Schools, and Have completed 15 continuous years of employment with Saint Have completed 15 continuous years of employment with Saint

Paul Public SchoolsPaul Public Schools Employed by Saint Paul Public Schools and covered under Employed by Saint Paul Public Schools and covered under

bargaining unit contract immediately preceding retirement.bargaining unit contract immediately preceding retirement. Must make application through District procedures prior to the Must make application through District procedures prior to the

date of retirement.date of retirement.

The following are examples - see your The following are examples - see your individualindividual

contract for a comprehensive description ofcontract for a comprehensive description ofqualifications.qualifications.

Qualifying for Early RetireeQualifying for Early RetireeInsurance (Before Age 65)Insurance (Before Age 65)

Continued


contract for a comprehensive description ofcontract for a comprehensive description ofqualifications.qualifications.If you are a Custodian:If you are a Custodian:

Be receiving pension, andBe receiving pension, and Terminate employment with Saint Paul Public Terminate employment with Saint Paul Public

Schools, and one of the following:Schools, and one of the following:

A.A. Be 55 years old and have completed 25 years of Be 55 years old and have completed 25 years of employment, oremployment, or

B.B. Age plus years of service equal 85 or more, orAge plus years of service equal 85 or more, or

C.C. Completed 30 years of service, orCompleted 30 years of service, or

D.D. Completed 20 consecutive years of service with Completed 20 consecutive years of service with ISD#625.ISD#625.

NOTE: A, B and C can include years of service with the City of Saint Paul.

Regular Retiree InsuranceRegular Retiree Insurance(Age 65+) Policy Description(Age 65+) Policy Description

If you are age 65 or over andIf you are age 65 or over andmeet the length of servicemeet the length of servicerequirements for regular requirements for regular retiree insurance as defined inretiree insurance as defined inyour bargaining unit contract,your bargaining unit contract,the District will providethe District will providepayment of premium payment of premium contributions towards a contributions towards a Medicare supplement plan. Medicare supplement plan. Please note, the Please note, the supplement plan will be supplement plan will be chosen by District 625. chosen by District 625.

The District will provide The District will provide monthly payments up to the monthly payments up to the amount specified in the chart amount specified in the chart below. If and when the below. If and when the Medicare supplement plan Medicare supplement plan premiums exceed the District premiums exceed the District contribution, you will be billed contribution, you will be billed the difference.the difference.

If you are an Early RetireeIf you are an Early Retireeattaining age 65, the District attaining age 65, the District will provide payment ofwill provide payment ofpremium contributions up topremium contributions up tothe amounts listed in the chart the amounts listed in the chart below for a Medicare below for a Medicare supplement plan supplement plan selected by selected by the Districtthe District provided you provided you have met the following have met the following conditions:conditions:

You have met the length of You have met the length of service requirements service requirements

specified specified in your bargaining in your bargaining unit unit contractcontract You have remained You have remained

continuously enrolled in the continuously enrolled in the Early Retiree health Early Retiree health

insurance planinsurance plan

Regular Retiree InsuranceRegular Retiree Insurance(Age 65+) Policy Description(Age 65+) Policy Description

All Regular Retirees must enroll at their own expense in All Regular Retirees must enroll at their own expense in Medicare Part “B” (medical insurance) to remain in the Regular Medicare Part “B” (medical insurance) to remain in the Regular Retiree health insurance plan sponsored by the District. Retiree health insurance plan sponsored by the District.

Part “A” (hospital insurance) of Medicare is required only if you Part “A” (hospital insurance) of Medicare is required only if you have earned the coverage by meeting the Social Security have earned the coverage by meeting the Social Security withholding requirements.withholding requirements.

CoverageType

SingleContribution

FamilyContribution

Medicare Eligible $300.00/Month $400.00/MonthNon-Medicare $400.00/Month $500.00/Month

2011 Early Retiree 2011 Early Retiree Monthly PremiumsMonthly Premiums

Job TitleHealthPartners

CoveragePremium

FrozenContribution

Retiree Pay

Teacher Single Empower HRA Plan 614.00 704.00 0.00Single + 1 Empower HRA Plan 1,344.00 1,003.74 340.26Family Empower HRA Plan 1,569.00 1,003.74 565.26

Single Distinctions II Plan 704.00 704.00 0.00Single + 1 Distinctions II Plan 1,584.00 1,003.74 580.26Family Distinctions II Plan 1,837.00 1,003.74 833.26

Single Empower HSA Plan 453.00 704.00 0.00Single +1 Empower HSA Plan 1,020.00 1,003.74 16.26Family Empower HSA Plan 1,184.00 1,003.74 180.26

ClericalSingle Empower HRA Plan 614.00 575.00 39.00Single + 1 Empower HRA Plan 1,344.00 1,125.00 219.00Family Empower HRA Plan 1,569.00 1,125.00 444.00



2011 Early Retiree 2011 Early Retiree Monthly PremiumsMonthly Premiums

Continued

Job TitleHealthPartners

CoveragePremium

FrozenContribution

Retiree Pay

Custodian Single Empower HRA Plan 614.00 575.00 39.00Single + 1 Empower HRA Plan 1,344.00 1,125.00 219.00Family Empower HRA Plan 1,569.00 1,125.00 444.00


Single Empower HSA Plan 453.00 575.00 `0.00Single +1 Empower HSA Plan 1,020.00 1,125.00 0.00Family Empower HSA Plan 1,184.00 1,125.00 59.00

E.A (Educational Single Empower HRA Plan 614.00 555.00 64.00Assistant) Single + 1 Empower HRA Plan 1,344.00 1,075.00 269.00

Family Empower HRA Plan 1,569.00 1,075.00 494.00



Qualifying for Regular Qualifying for Regular Retiree Insurance (Age 65 & Retiree Insurance (Age 65 & Over)Over)

If you are a Teacher hired before January 1, 1996:If you are a Teacher hired before January 1, 1996:

Be age 65 or older at time of retirementBe age 65 or older at time of retirement Eligible for pension benefits, andEligible for pension benefits, and Terminate employment with Saint Paul Public Schools, Terminate employment with Saint Paul Public Schools,

andand Have completed 15 continuous years of employment Have completed 15 continuous years of employment

with Saint Paul Public Schoolswith Saint Paul Public Schools Employed by Saint Paul Public Schools and covered Employed by Saint Paul Public Schools and covered

under bargaining unit contract immediately preceding under bargaining unit contract immediately preceding retirement.retirement.

Must make application through District procedures prior Must make application through District procedures prior to the date of retirement.to the date of retirement.



Qualifying for Regular Qualifying for Regular Retiree Insurance (Age 65 & Retiree Insurance (Age 65 & Over)Over)

If you are a Custodian hired before July 1, 1996:If you are a Custodian hired before July 1, 1996:

Be age 65 or older at time of retirement, andBe age 65 or older at time of retirement, and Be receiving pension benefits, andBe receiving pension benefits, and Terminate employment with St. Paul Public Terminate employment with St. Paul Public

Schools, andSchools, and Hired prior to July 1, 1996, must have 20 Hired prior to July 1, 1996, must have 20

years continuous service with the District years continuous service with the District (employment with the City of St. Paul earned (employment with the City of St. Paul earned prior or 7.1.96 will count toward the 20 year prior or 7.1.96 will count toward the 20 year requirement).requirement).

Must make application through District Must make application through District procedures to the date of retirement.procedures to the date of retirement.



Continued

Life and DentalLife and DentalInsuranceInsurance

Life Insurance for Early Retirees:Life Insurance for Early Retirees:

If you meet the eligibility requirements for early retiree If you meet the eligibility requirements for early retiree insurance as specified in your bargaining unit contract, the insurance as specified in your bargaining unit contract, the District will continue to pay the premium for the basic District will continue to pay the premium for the basic $5,000 life insurance policy until you attain age 65. At age $5,000 life insurance policy until you attain age 65. At age 65, the District will discontinue paying the monthly 65, the District will discontinue paying the monthly premium. You will have the option to convert the basic life premium. You will have the option to convert the basic life insurance policy to an individual policy through Minnesota insurance policy to an individual policy through Minnesota Life.Life.

The additional life insurance policy is terminated at the The additional life insurance policy is terminated at the end of the month in which you retire. Under COBRA, you end of the month in which you retire. Under COBRA, you have the option to continue the additional life insurance have the option to continue the additional life insurance policy, and any optional life insurance coverage you have, policy, and any optional life insurance coverage you have, at your own expense for up to 18 months. At the end of at your own expense for up to 18 months. At the end of the 18-month period, you will have the option to convert to the 18-month period, you will have the option to convert to an individual policy through Minnesota Life.an individual policy through Minnesota Life.

Life and DentalLife and DentalInsuranceInsurance

Life Insurance for Regular Retirees:Life Insurance for Regular Retirees:

If you retire at 65 or older, your basic and additional life If you retire at 65 or older, your basic and additional life insurance policies are terminated at the end of the insurance policies are terminated at the end of the month in which you retire. Under COBRA, you have the month in which you retire. Under COBRA, you have the option to continue the life insurance at your own option to continue the life insurance at your own expense for up to 18 months. At the end of the 18-expense for up to 18 months. At the end of the 18-month period, you may convert the life insurance policy month period, you may convert the life insurance policy to an individual policy through Minnesota Life.to an individual policy through Minnesota Life.

District contribution toward dental insurance is terminated at the end of the month in which you retire. Under state statute, you have the option to continue dental coverage at your own expense indefinitely provided you remain eligible for your public pension and pay the monthly premiums in a timely manner.

Continued

Severance PaySeverance Pay

Severance Pay is payment for unused sick leave accumulated Severance Pay is payment for unused sick leave accumulated throughout the course of your employment with the District. To qualify throughout the course of your employment with the District. To qualify for severance pay you must meet the conditions outlined in your for severance pay you must meet the conditions outlined in your bargaining unit contract.bargaining unit contract.

Two examples are listed below:Two examples are listed below: Teachers:Teachers: Must be 55 terminated from employment with the Must be 55 terminated from employment with the

District, and eligible for pension benefitsDistrict, and eligible for pension benefits Severance amount is calculated by multiplying each day Severance amount is calculated by multiplying each day

of accrued, unused sick leave by $100.of accrued, unused sick leave by $100. Maximum severance payable if no notice given prior to Maximum severance payable if no notice given prior to

retirement (on or after June 15) is $12,500.retirement (on or after June 15) is $12,500. Maximum severance payable if notice given prior to Maximum severance payable if notice given prior to

retirement (after February 1, 2011 but before June 15) is retirement (after February 1, 2011 but before June 15) is $15,000.$15,000.

Severance pay bonus for early notification is $2,500 if Severance pay bonus for early notification is $2,500 if resignation form is submitted to Human Resources on or resignation form is submitted to Human Resources on or before February 1, 2011 indicating intent to resign at the before February 1, 2011 indicating intent to resign at the end of the 2010-11 school year.end of the 2010-11 school year.

Principals:Principals:

Regular severance pay for principals is a payment of Regular severance pay for principals is a payment of $175.00 per day (maximum payment is $20,000).$175.00 per day (maximum payment is $20,000).

Early Notification Early Notification

For those principals retiring at the end of the 2010-11 school For those principals retiring at the end of the 2010-11 school year, a bonus of $2,500 will be awarded if resignation is year, a bonus of $2,500 will be awarded if resignation is submitted by March 1, 2011. submitted by March 1, 2011.

Principals who turned in a resignation form by December 1, Principals who turned in a resignation form by December 1, 2010, will be awarded a $3,500 bonus.2010, will be awarded a $3,500 bonus.

New! You may submit your retirement on-line at New! You may submit your retirement on-line at http://hr.spps.org/Resignation

Severance Pay- Severance Pay- PrincipalsPrincipals

Continued

Severance Pay - CustodiansSeverance Pay - Custodians

Custodians:Custodians: Must be 55 or older OR eligible for pension Must be 55 or older OR eligible for pension

under “rule of 90”.under “rule of 90”. Must terminate employment with the DistrictMust terminate employment with the District Maximum severance payable is $18,000. Maximum severance payable is $18,000.

Severance amount is calculated by multiplying Severance amount is calculated by multiplying each day of accrued, unused sick leave by each day of accrued, unused sick leave by $100. If notification is less than three months, $100. If notification is less than three months, eligible employees will receive $65 per day eligible employees will receive $65 per day (maximum severance of $15,015).(maximum severance of $15,015).

Continued

Severance Pay Severance Pay

Severance pay is issued within sixty (60) days of your Severance pay is issued within sixty (60) days of your retirement date and/or within the same calendar year as your retirement date and/or within the same calendar year as your retirement date. Your severance pay will be transferred to a retirement date. Your severance pay will be transferred to a 403(b) Special Pay Deferral Plan with ING. This plan allows 403(b) Special Pay Deferral Plan with ING. This plan allows retirees to tax shelter their severance pay. This plan also retirees to tax shelter their severance pay. This plan also exempts retirees from having to pay the FICA tax of 7.65%exempts retirees from having to pay the FICA tax of 7.65%

Continued

Dependents & Dependents & Open EnrollmentOpen Enrollment

Spouse of retiree (individual must be Spouse of retiree (individual must be married to retiree at the time of married to retiree at the time of retirement)retirement)

Children of retiree if they are under age Children of retiree if they are under age 26.26.

Grandchildren if they are dependents of Grandchildren if they are dependents of retiree at the time of retirementretiree at the time of retirement

Who qualifies as a dependent of a Who qualifies as a dependent of a retiree?retiree?

Dependents & Dependents & Open Enrollment - ContinuedOpen Enrollment - Continued

If there is a choice of plans available to the If there is a choice of plans available to the active employee population, retirees under active employee population, retirees under age 65 can make changes between the age 65 can make changes between the plans available to active employees (for plans available to active employees (for example, they can choose between the HP example, they can choose between the HP HRA Plan, HP Distinctions II Plan, and HP HRA Plan, HP Distinctions II Plan, and HP HSA Plan).HSA Plan).

In some cases, retiree may change to In some cases, retiree may change to single or family coverage.single or family coverage.

Retirees age 65 and older may not move Retirees age 65 and older may not move between Medicare-supplement plans between Medicare-supplement plans unless excluded from the local HMO unless excluded from the local HMO product.product.

What changes can a retiree make What changes can a retiree make during the annual open enrollment during the annual open enrollment period?period?

Dependents & Dependents & Open Enrollment - ContinuedOpen Enrollment - Continued

Employees Age 65 and OlderEmployees Age 65 and OlderIf you plan to add your spouse to your If you plan to add your spouse to your insurance coverage through Saint Paul insurance coverage through Saint Paul Public schools when you retire, you must Public schools when you retire, you must add your spouse at Open Enrollment prior add your spouse at Open Enrollment prior to retirement. Otherwise, the only to retirement. Otherwise, the only opportunity you will have after retirement opportunity you will have after retirement to add your spouse is when your spouse to add your spouse is when your spouse loses other loses other groupgroup coverage. coverage.

ContinuousContinuousCoverage RuleCoverage Rule

Prior to Retirement:Prior to Retirement:1.1. Employees who are approved for a leave of Employees who are approved for a leave of

absence are not required to continue group absence are not required to continue group medical coverage during the LOA.medical coverage during the LOA.

2.2. Employees who retire at the end of an Employees who retire at the end of an approved LOA will be able to enroll in their approved LOA will be able to enroll in their retiree medical plan without having retiree medical plan without having continuous coverage prior to retirement date. continuous coverage prior to retirement date. Enrollment in the retiree medical plan must be Enrollment in the retiree medical plan must be made within 30 days of retirement date.made within 30 days of retirement date.

3.3. Employees who retire at the end of an Employees who retire at the end of an approved LOA will receive the frozen District approved LOA will receive the frozen District contribution in effect at date of retirement.contribution in effect at date of retirement.

ContinuousContinuousCoverage RuleCoverage Rule

After Retirement:After Retirement:1.1. Employees who retire and qualify for Early Retiree Employees who retire and qualify for Early Retiree

medical insurance may waive participation in the group medical insurance may waive participation in the group medical plan if they are covered by another group plan. medical plan if they are covered by another group plan. Proof of other coverage will be required. Proof of other coverage will be required.

2.2. Retirees who waive participation in the Early Retiree Retirees who waive participation in the Early Retiree group plan may enter the plan upon one of the following group plan may enter the plan upon one of the following events: Open Enrolment, Qualified Status Change, or events: Open Enrolment, Qualified Status Change, or Attaining age 65. Attaining age 65.

3.3. Retirees who waive participation and enter the group Retirees who waive participation and enter the group plan upon one of the three events listed above will plan upon one of the three events listed above will receive the frozen District contribution equal to the receive the frozen District contribution equal to the amount being paid towards medical insurance at date of amount being paid towards medical insurance at date of retirement.retirement.

4.4. Retirees may only waive participation at time of Retirees may only waive participation at time of retirement. Once a retiree has enrolled in the Early retirement. Once a retiree has enrolled in the Early Retiree group plan, the retiree must remain continuously Retiree group plan, the retiree must remain continuously enrolled in order to be eligible for the post-65 group enrolled in order to be eligible for the post-65 group Medicare supplement plan.Medicare supplement plan.

Continued

Thank YouThank You

We are glad you could attend our We are glad you could attend our seminar!seminar!

Please contact the Saint Paul Please contact the Saint Paul Public Schools Benefits Office Public Schools Benefits Office

if you need further assistanceif you need further assistance

welcome!

Documents