POST RETIREMENT EMPLOYMENT OPTION (PREO)
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ESI is an employee leasing company incepted
in 1999 by three retired educators.
Founder and leader of the Return-to-Work
(RTW) program in Arizona.
Ushered original legislation to make the RTW
concept legal.
Currently in over 160 Arizona school districts,
colleges, cities, and towns.
Offices in Tucson, Phoenix and Northern
Arizona (Corporate Office).
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Normal Retirement
◦ 1.) 80 Points (age + years of ASRS service)
◦ 2.) Age 62 with 10 or more years of ASRS service
◦ 3.) At age 65
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Early Retirement
◦ At least age 50 with 5 or more years of ASRS service
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1.) Average Monthly Compensation (highest
36 consecutive months of salary within the
last 120 months of service or 60 months*)
2.) Total ASRS Credited Service
3.) Graded Multiplier
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0-19.99 YOS
20-24.99 YOS
25-29.99 YOS
30+ YOS
2.10%
2.15%
2.20%
2.30%
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1.) 20/20 Rule
◦ RTW effective immediately part-time
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2.) 12 Consecutive Month Rule
◦ RTW must wait 12 consecutive months
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3.) Work for Non-ASRS Employer
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4.) ESI
◦ RTW effective immediately full-time
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Alternate Contribution Rate (ACR)
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SB1609-Signed by Governor: April 29, 2011
8.64% Fiscal Year 2012-2013
Effective date of July 1, 2012
Employer is responsible for ACR
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Current Employee
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Pay Rate
ASRS Contribution Rate
FICA (SS & Medicare)
Total Pay Before Taxes
ASRS Retiree
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100%
(10.74%)
(7.65%)
81.61%
(30 Years of Service and No Joint & Survivor Option)
Pay Rate
ASRS Contribution Rate
FICA (SS & Medicare)
Total Pay Before Taxes
69%
0%
0%
69%
12% Difference!!!
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Current Employee
◦ Pay Rate
$54,000
◦ ASRS Contribution Rate (10.74%) ($5,800)
◦ FICA (SS & Medicare) (7.65%)
($4,131)
◦ Total Pay Before Taxes
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ASRS Retiree
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$44,069
(30 Years of Service and No Joint & Survivor Option)
Pay Rate (69%)
ASRS Contribution Rate (10.74%)
FICA (SS & Medicare) (7.65%)
Total Pay Before Taxes
$37,260
$0
$0
$37,260
$6,809 Difference!!
or
$3.27/Hour!!
Current Pay
Current Pay
ASRS Contribution
Social Security
Medicare
Current Pay
$
10.74%
6.20%
1.45%
$
54,000
(5,800)
(3,348)
(783)
44,069
Retirement + ESI Pay
ASRS Pension
ASRS Contribution
Social Security
Medicare
ASRS Pension
30 Years of Service w/no Joint & Survivor Option
0.00%
0.00%
0.00%
$
$
37,260
37,260
Plus
ESI Pay (% of Prior Year Contract)
Social Security
Medicare
ESI Service Fee
Health Insurance
ESI Pay
Total Pay
ESI Increase in Pay
Immediate raise of
75.00%
6.20%
1.45%
2.00%
COBRA Rate - ASRS Subsidy ($447-$150)
$
ASRS Pension + ESI Pay
$
$
Total ESI Pay - Current Pay
$
40,500
(2,511)
(587)
(810)
(3,564)
33,028
70,288
26,219
59%
Break-Even Calculation
30 YearsofServiceASRSPension
31 YearsofServiceASRSPension
$ 37,260
38,502
$ 1,242
ESI
Additional paythroughESI
$ 26,219
Break-Even(Years)
Additional paythroughESI/1-YearPensionIncrease
1-YearPensionIncrease
21.11
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COBRA?
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Medical-Base EPO
Medical-Buy-up PPO
Medical-HDHP
Dental-Low Option (Delta)
Dental-High Option(Delta)
Dental-EDS
$297 ($447-$150)
$386 ($536-$150)
$253 ($403-$150)
$29.01
$46.68
$8.42
 ASRS Premium Benefit $150/$260
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ASRS Retiree Plan?
◦ UnitedHealthcare
 Non-Medicare Plan
 ASRS Premium Benefit
 Medicare Plans
 ASRS Premium Benefit
 Dental-Low Option
 Dental-High Option
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Spousal Plan?
$491 ($641-$150)
$150/$260
$190-$342
$100/$170
$16.67
$35.51
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401(k) Tax-Sheltered Account (TSA)
◦ ING Financial
◦ 20 + Mutual Funds
◦ No surrender charge among separation of service
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No obligation financial advisement
Worksite benefits/Cafeteria plan
◦ Dental and Vision
◦ Life Insurance and Long-Term Care
◦ Flexible Spending Account (FSA)
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Speak to your financial advisor
ESI can provide an advisor if desired
ASRS Retirement Option Concerns
◦ Seven Joint & Survivor Options…
◦ Service purchase buy-backs?
◦ Health Insurance?
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What about sick, personal, vacation leave?
What about extra duty assignments?
How do I get paid and how often?
What about evaluations?
Is the program calendar sensitive?
Can I “un-retire”?
What is the termination clause?
Should I attend an ASRS group meeting?
Everything looks great! How do I start?
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ESI
◦ www.educationalservicesinc.com
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Arizona State Retirement System
◦ www.azasrs.gov
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Social Security
◦ www.ssa.gov
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Internal Revenue Service
◦ www.irs.gov
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Corporate Office
PO Box 235
Cottonwood, AZ 86326
toll free: (877) 303-7639
office: (928) 634-7639
fax: (928) 634-5639
esi@esiaz.us
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Tucson Office
SJI Financial (Financial Advisor Group)
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5355 North Estelle Drive
Tucson, AZ 85718
office: (520) 465-2579
7481 East Broadway BLVD #100
Tucson, AZ 85710
office: (520) 326-6133
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Phoenix Office
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Jim Fogltance
Phil Tavasci
5450 East High Street #300
Phoenix, AZ 85054
office: (480) 236-5074
fax: (480) 794-1703
Jim Bishopp