Retirement
Presented by:
Human Resources Department
Overview
•
•
•
•
•
•
NEO Retirement
Accrued Leave
OTRS Retirement
TIAA-CREF
Insurance Options
NEO Retiree Benefits
Thinking About Retirement?
• Wondering what your retirement might be?
– TIAA-CREF Website-www.tiaa-cref.org
– OTRS Website-www.ok.gov/TRS
– Social Security Administrationwww.ssa.gov/estimator
NEO Retirement Criteria
• Qualification for NEO Retirement
– Age 62 with 10 Years of NEO Service or
– Continuous Years of NEO Service (Any Age)
or
– OTRS Rule of 80, Rule of 90 or Rule of
90/65.
NEO Retirement Process
• Resignation Letter
– Submit to Supervisor at least 90 Days Prior to
Retirement. Supervisor will send a copy to Personnel.
• Retiree request that your Supervisor complete a
Request for Personnel Action Form indicating your last
day of work.
• Retiree should complete their last time card or leave
report prior to last day of work.
• All benefits will terminate at the end of the month
proceeding the last day of employment.
Annual (Vacation) Leave
• Be aware of your leave situation prior to
retirement
• Faculty leave records are maintained at
departmental level and sent to Personnel
• Forfeit if more than max accrual
• Any accrued annual leave will be paid out with
last check or next available pay period.
Sick Leave
• Sick Leave
– Forfeit Unused
– Possible one year OTRS credit
– Sick Leave plus Partial Year Work
– NEO verifies for OTRS
Oklahoma Teachers’ Retirement System
•
•
•
•
•
•
•
•
•
Active Members: 88,085
Retirees: 50,829
Inactive: 15,223
Total: 154,137
Annual Payroll: $3,773 million
Employee Contributions = $287 approx million
Employer Contributions = $388 approx million
Dedicated Revenue = $252 approx million
TOTAL: $926 approx million
Oklahoma Teachers’ Retirement System
• OTRS Retirement Criteria:
– Five Years of OTRS Membership
• Age 62 with full benefits
• Age 55 with reduced benefits
• Disabled at any age with 10 years of service- (must be approved through OTRS)
•Rule of 80 at Any Age (QUALIFYING MEMBERSHIP DATE: member prior to 7-01-92)
•Average of highest 3 salaries used to calculate monthly retirement benefit
•Rule of 90 at Any Age (QUALIFYING MEMBERSHIP DATE: member after 6-30-92 &
before 11-1-92)
•Average of 5 highest consecutive salaries (used to calculate benefits)
•Rule of 90/65 (QUALIFYING MEMBERSHIP DATE: member after 11-1-11)
OTRS Cont.
• Early Retirement:
Members can also qualify for early retirement
with a reduced benefit. Early retirement is as
follows:
• Are between ages 55 to 61 and have at least
five (5) years of Oklahoma creditable service,
but do not 80 or 90 “points”; the reductions
shall be as shown on the next slide.
OTRS Cont.
OTRS members who joined on or after July 1, 1992, can
retire with full benefits from OTRS:
At age 62 with at least 5 years of OTRS service credit
OR
When age plus years of OTRS service credit equal 90 or more
(Rule of 90).
OTRS members who joined on or after November 1, 2011,
can retire with full benefits from OTRS:
At age 65 with at least 5 years of OTRS service credit
OR
When age plus years of OTRS service credit equal 90 or more
(Rule of 90).
OTRS Cont.
• OTRS members who joined prior to July 1, 1992,
can retire with full benefits from OTRS:
• At age 62 with at least 5 years of OTRS service
credit
OR
• When age plus years of OTRS service credit equal
80 or more (Rule of 80).
OTRS Cont.
• Members are eligible to apply for disability
retirement benefits from OTRS at any age with at
least 10 years of service credit. Members with at
least 5 years of service credit may begin receiving a
reduced retirement benefit when they reach age 55
or when they have 30 or more years of service,
regardless of age.
OTRS Cont.
• Vesting & Termination
– In order to be considered a vested member of the
system a client must have accumulated 5 years of
creditable service, after which the client becomes
a member who then has a property right to their
retirement.
OTRS Cont.
• Contribution Rate – Summary
– Employee (Monthly benefit paid by NEO): 7%
– Employer Statutory (Monthly benefit paid by
NEO): 9.5%
– Your retirement is calculated on your salary and
applicable fringe benefits (e.g., health, dental,
vision, etc.)
OTRS Cont.
• OTRS provides each retiree with a $5,000.00
life insurance payment to be provided to the
beneficiary designated with OTRS, should
retiree pass away.
OTRS Cont.
• Retirement Calculation
– OTRS determines final retirement. However for
purposes of this presentation, the retirement
formula can be simply described as:
2% x Final Average Salary (FAS) x years of creditable service
OTRS Cont.
• Estimate from OTRS
– 120 Days Prior to Retirement
– Must complete OTRS PIV (Pre-Retirement
Verification) Form
– OTRS will send you a retirement estimate
OTRS Cont.
• Retirement Allowance Estimate
– Choose Option
– Sign the Estimate
– Return Form 40 to OTRS
– Send Copy to Personnel Office
OTRS Cont.
• OTRS Package
– Checklist:
•
•
•
•
•
•
Retirement Contract
Form 80
Form 82
Spousal Consent Form
Direct Deposit Form
Tax Information and Tax Allowance Form
OTRS Cont.
• Forms 80 and 82
– Send to Personnel Office
– NEO Forwards to OTRS
– All Other Forms to TORS
• Contract and Direct Deposit Require Notary
• Deadline First of Month Prior to Retirement
OTRS Cont.
• OTRS Direct Deposit
– Direct deposits are posted to member bank
accounts on the first working day of each month,
unless the first falls on a weekend or bank holiday;
in which case, direct deposits will be posted on
the last working day of the month.
– Always inform OTRS of any address change
OTRS Cont.
• Mandatory Break between Employment and
Retirement
– A retired member is not eligible to be employed
by the public schools of Oklahoma, in any
capacity, for sixty (60) calendar days from the
retirees last day.
OTRS Cont.
• Earnings Limit for Retirees Returning to Work
– For a retiree who has returned to work, during the
first 36 months of retirement, there are limits on
the amount of money a retiree can make per
calendar year from a member institution.
– Under Age 62, the limit on allowed earnings is
$15,000.00
– Over Age 62, the limit on allowed earnings is
$30,000.00
OTRS Cont.
• Early Retirement Reduction:
– (i) 55 – 52.16%
– (ii) 56 – 57.06%
– (iii) 57 – 62.47%
– (iv) 58 – 68.46%
– (v) 59 – 75.12%
– (vi) 60 – 82.53%
– (vii) 61 – 90.78%
– (viii) 62 – 100.00%
OTRS Cont.
• Retirement Plans available through OTRS:
– 4 Options Available through OTRS
– Will select an irrevocable option upon retirement
•
•
•
•
•
Maximum Option
Option 1
Option 2
Option 3
Option 4
OTRS Cont.
• Maximum Option Highlights:
– Largest retirement benefit. 100% of the
retirement formula.
– Client Account balance is depleted by lump sum
amount if PLSO elected, then monthly by the
gross retirement benefit.
– Without PLSO, the Client Account balance may
last 2-3 years.
– The monthly retirement benefit will cease at
death, and any remaining account balance will be
paid to the beneficiary(ies)
OTRS Cont.
• Option 1 Highlights:
– Monthly benefit is slightly less than maximum
option.
– Client Account balance is depleted by lump sum
amount if PLSO is elected, and then depleted
more slowly by an annuity amount.
– Without PLSO or EESIP, the account may last 11+
years.
– The monthly retirement benefit will cease at
death, and the remaining account balance will be
paid to the beneficiary(ies)
OTRS Cont.
• Option 2 Highlights: (100% joint survivorship for sole
annuitant)
– The least monthly benefit for the client and
greatest benefit to the joint annuitant (the
younger the annuitant, the lesser the monthly
retirement benefit).
– Joint annuitant will continue to receive the same
lifetime monthly benefit (100% joint survivorship)
upon death of client
– Joint annuitant is designated at retirement and is
not eligible to change, but a different person may
be named to receive the $5000 survivor benefit…
OTRS Cont.
• Option 3 Highlights: (50% joint survivorship for sole
annuitant)
– Monthly benefit is not reduced as much as it is for
Option 2
– Joint annuitant does not have to be client’s spouse or
within 10 years of the client’s age; however, the younger
the annuitant, the lesser the client’s monthly benefit.
– Joint annuitant will continue to receive one half (50% of
the monthly retirement benefit for the rest of joint
annuitant’s life upon death of the client.
– Joint annuitant is designated at retirement and is not
eligible to change, but a different person may be named
to receive the $5000 survivor benefit…
OTRS Cont.
• Option 4 Highlights:
– Monthly benefit for client is less than amount
under the Option 1 plan, but the beneficiary
amount is usually greater.
– If client dies within 120 months of the retirement
date, the beneficiary continues to receive the
client’s monthly benefit until the 120th monthly
retirement benefit has been paid. If client lives 10
years, no balance is left for beneficiary.
– If beneficiary dies before client and before the
120th retirement payment, a different beneficiary
may be listed to receive the balance of the 120
retirement payments.
OTRS Cont.
• Questions about OTRS or for Retirement
Estimate Contact:
– Oklahoma Teachers’ Retirement System
PO BOX 53524
Oklahoma City, OK 73152
Telephone: (405) – 521-2387
Toll free #: (877) – 738-6365
Location:
Oliver Hodge Building
2500 N. Lincoln Boulevard
Oklahoma City, OK
TIAA-CREF Retirement
Do you have a 403(b) or 457(b)?
• Inform TIAA-CREF or applicable vendor of
Retirement Date
• TIAA-CREF Sends Packet
– Contract Options
– Direct Deposit Authorization
– Instructions
– Final premium notice by NEO
– Employer Authorization form
– Return to TIAA-CREF
TIAA-CREF Retirement
• Questions about 403(b) or 457(b) Contact:
– TIAA-CREF
730 Third Avenue
New York, NY 10017
(800) 842-2776
Retiree Insurance
• BlueCross BlueShield Health Plan
– Pre-Medicare (Under 65)
– Plan 65 Medicare Supplement & Part D
Prescription plan (65+)
• OTRS Premium Credit
• OTRS Credit applied to bill from Bursar
• Credit is determined by OTRS and ranges from $100105.00 per month.
Retiree Insurance
• Healthcare, Dental, Vision
– Complete BCBS health forms
• Over age 65 – complete health forms 90 days prior to
retirement date
• State Retiree Election for Dental and Vision
–
–
–
•
Continue current coverage only
Cannot add later if declined
Cancel at any time
Medicare
• Apply for Medicare part B card 90 days prior to
retirement date if you are 65 or older
Health Care Premiums
• For applicable BCBS Health Insurance
premiums, please refer to current rate sheet
available in Human Resources. Plan 65 packets
are available for those who are Medicare
eligible.
• See Monthly Premiums for Current Employees
for Plan Year January through December.
Dental and Vision Premiums
• For applicable Dental & Vision premiums,
please refer to current rate sheet available in
Human Resources.
• Health Choice & VSP plans have the most
providers locally here in Miami, OK.
• Direct Bill – Mailed around the 3rd of each
month, due by the 20th.
• Bank Draft – Forms available online
OSEEGIB:EGID after first billing cycle.
NEO Life Insurance
• NEO-Paid Coverage - $10,000
• Conversion Coverage Option
– ING Employee Benefit – You Pay
– Whole Life Policy
NEO Life Insurance
• ING Voluntary Coverage – Portability
– Supplemental Employee and Dependent
Coverage
– “Port” – Term Life at NEO Group Rates
• Contact: Rachel Stetzer, ING (888) 238-4840
Oklahoma Teachers’ Retirement System
• OTRS Retiree Life Insurance
– OTRS Retirees - $5,000
– OTRS Pays Premium
– OTRS beneficiary election
NEO Retiree Benefits
• New Retiree ID Card
– See Campus Police for new retiree ID
NEO Retiree Benefits
• NEO Email - Information Technology
• Athletics Tickets
• Student Activities Center
I’M HERE TO HELP!
• BE SURE TO SCHEDULE AN APPOINTMENT
WITH ME FOR COMPLETION OF ALL
NECESSARY RETIREMENT PAPERWORK NO
LATER THAN 90 DAYS PRIOR TO RETIREMENT
DATE. 120 DAYS IS GREAT!
• Contact the Human Resources Department for
a listing of current Insurance premiums or
further details regarding applicable plans
when approaching retirement.
HAPPY RETIREMENT !!
For more information:
NEO Human Resources - Phone: 918-540-6378
NEO Human Resources web site: www.neo.edu
NEO Retirement Program Guide & Calculator
OTRS plan resources: www.trs.state.ok.us or 1-877-738-6365
TIAA-CREF resources: www.tiaa-cref.org or 1-800-842-2776