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Benefits are a valuable asset: What is your net worth?

Benefits are a valuable asset: What is your net worth?. What Benefit is Most Important to You? When Do You Plan To Retire? What About Your Health Coverage? What About My Leave Benefits? Life Insurance; More or Less? What Other Insurance Might I Need?. What is Most Important To You?.

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Benefits are a valuable asset: What is your net worth?

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  1. Benefits are a valuable asset: What is your net worth? What Benefit is Most Important to You? When Do You Plan To Retire? What About Your Health Coverage? What About My Leave Benefits? Life Insurance; More or Less? What Other Insurance Might I Need?

  2. What is Most Important To You? Retirement Health Insurance Leave Benefits Life Insurance Other Insurances Take Home (Net) Pay

  3. Retirement Considerations: Have a Plan • Income: How much do I need? • Where will my payments come from? • When will I collect Social Security: Beginning at age 62, 65, or full retirement age? • Medicare coverage at age 65. How will I pay for health coverage if I retire prior to age 65? • Do you have a rainy day fund for those unexpected expenses?

  4. Wisconsin Retirement System WRS • Vesting Requirements • Employee/Employer Contributions • Fund Choiceof Variable or Core Account • Additional Contributions Options • Formula Benefit and Money Purchase Calculation • Retirement Age Eligibility • Monthly Annuity Distribution Options

  5. WRS Continued • Employees can retire from the WRS at age 55 and those in the protective category at age 50. • If retiring from the WRS at age 57 with 30 or more years of service, then no age reduction factor is applied to their annuity. • Accelerated payments are typically available to individuals retiring prior to age 62. • The monthly benefit is reduced at age 62 for those that elect an accelerated payment option.

  6. WRS Payment Options • Three Life Only options at retirement. • Annuitants Life Only. • Annuitants Life Only w/60 Payments Guaranteed. • Annuitants Life Only w/180 Payments Guaranteed. • Four Joint Survivor options, if applicable. • 75% Continued To Named Survivor. • 100% Continued To Named Survivor. • 25% Reduced on Death of Annuitant/Named Survivor. • 100% Continued To Named Survivor w/ 180 Payments Guaranteed.

  7. Lump Sum vs. Monthly Payment • When the monthly annuity is less than $182.00, the annuitant must take a Present Value Lump Sum payment. • If the monthly annuity payment is between $183.00 and $371.00, the annuitant has an option. • A monthly annuity at or over $372.00 requires the annuitant to select a monthly amount for payment.

  8. Tax Sheltered Annuity 403(b) • Five vendors available to select from. • No Administration Fee for enrollment. • 20% withholding and a 10% tax penalty for early withdrawal prior to 59 &1/2 or retirement. • Contribute as little as $8 per pay period for Classified or $20 per month for Unclassified . • You have both Pre-tax and Post-tax contribution options. • Maximum contribution limit of $17,500 for individuals under 50, $23,000 for over 50.

  9. Tax-Sheltered Annuity 403(b) Program • Six vendors including T. Rowe Price, Fidelity, TIAA-CREF, Ameriprise Riversource, and Lincoln Financial. • Roth & pre-tax options are available although Ameriprise does not offer the Roth option. Can do either or both as a percent or flat amount. • Maximum contribution for individuals under age 50 is $17,500 with a $5,500 catch up for individuals over age 50. • Special catch up of another 3,000/year may apply

  10. TSA 403(b) Distributions • Can use contributions to purchase forfeited service under the WRS. • Can take a loan out up to 50% of the contributed amount. • Can move monies between vendors participating in the 403(b) program. • Can take a distribution while still employed only if you are disabled or at least 59 & 1/2. • Can take without penalty at age 55 if retired from the WRS.

  11. Deferred Compensation 457(b) • Different Funds are available to invest in. • Same contribution limits as 403(b). • Offers both Roth and Pre-tax options. • Annual Fee for participation based on amount in the account. • You are unable to access the funds as long as you are employed by the State. • Upon termination, there are no penalties or restrictions on obtaining the funds.

  12. Deferred Compensation 457(b) • Managed by Great West Financial Services. • Has 21 investment options with 5 lifecycle funds, 10 mutual funds 4 trust options, a stable value fund and a FDIC-insured bank option. • Roth & pre-tax contribution option with three distribution options; periodic payments, lump sum, and a partial lump sum. • Similar contribution maximums as the 403(b) except if within 3 years of retirement. • Up to $35,000 possible but excludes 50+ catch up. • Quarterly statements issued on performance.

  13. Health Insurance The UW provides comprehensive health insurance throughout Wisconsin to employees and their families. Health plans offered include Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs). One plan has a nation-wide network of preferred providers. The Standard Plan is the universal coverage administered by WPS and provides coverage outside of Wisconsin.

  14. Health Insurance • Coverage under the HMO plans provide a Uniform Dental Benefit of $1,000/person/year. [see dental comparison sheet] • Preventative Care covered at 100%. • Health coverage can be continued in retirement. • Family coverage allows surviving spouse access to the sick leave credits as either an active or retired employee. • There are Medicare I & Medicare II rates for the supplement to Medicare B coverage at 65.

  15. Leave Benefits • Vacation • Personal Holiday • Legal Holiday • Sick Leave • Sabbatical or ALRA (Vacation Banking) Leave Allocations

  16. Life Insurances • University Insurance Association. • State Group Life. • UW Employees Inc. • Individual & Family Life. • Accidental Death & Dismemberment.

  17. Other Insurances • Three different dental plans. • Uniform Dental through the HMO health plan. • Epic Benefits + includes dental. • Dental Wisconsin Plans; Select & PPO. • Three vision options. • One eye exam through HMO health plan. • VSP Vision Plan. • Epic Benefits + discounted vision through EyeMed. • Income Continuation (disability coverage). • Employee Reimbursement Account.

  18. Net Pay: What is deducted from my Gross? • Social Security & Medicare are taken first prior to most pre-tax deductions. • Federal & State Income Tax withholdings. • Wisconsin Retirement System contributions. • Benefits that you have enrolled in. • Benefit Deductions Pre & Post Tax • The value of your salary, retirement and health benefits are very beneficial. • Total Compensation: Do a Calculation

  19. Closing Thoughts • Remember: Open Enrollment 2014 is October 6th thru October 31st. • What are my benefits and what is their net worth? • Do I have too much or too little life insurance coverage for myself and the family? • Are my benefits working as hard for me as I work for them? • What is my plan for retirement; how and when will it happen?

  20. Make It Happen: Thank You

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