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Educational Services, Inc.

Educational Services, Inc. POST RETIREMENT EMPLOYMENT OPTION (PREO). ESI Facts. 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.

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Educational Services, Inc.

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  1. Educational Services, Inc. POST RETIREMENT EMPLOYMENT OPTION (PREO)

  2. ESI Facts • 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).

  3. Normal vs. Early Retirement • 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 • Early Retirement • At least age 50 with 5 or more years of ASRS service

  4. ASRS Retirement Formula • 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 • 0-19.99 YOS 2.10% • 20-24.99 YOS 2.15% • 25-29.99 YOS 2.20% • 30+ YOS 2.30%

  5. Return-to-Work (RTW) Options • 1.) 20/20 Rule • RTW effective immediately part-time • 2.) 12 Consecutive Month Rule • RTW must wait 12 consecutive months • 3.) Work for Non-ASRS Employer • 4.) ESI • RTW effective immediately full-time

  6. New Legislation • Alternate Contribution Rate (ACR) • SB1609-Signed by Governor: April 29, 2011 • 8.64% Fiscal Year 2012-2013 • Effective date of July 1, 2012 • Employer is responsible for ACR

  7. Why Should I Retire?? • Current Employee • Pay Rate 100% • ASRS Contribution Rate (10.74%) • FICA (SS & Medicare) (7.65%) • Total Pay Before Taxes 81.61% • ASRS Retiree (30 Years of Service and No Joint & Survivor Option) • Pay Rate 69% • ASRS Contribution Rate 0% • FICA (SS & Medicare) 0% • Total Pay Before Taxes 69% 12% Difference!!!

  8. …continued • Current Employee • Pay Rate $54,000 • ASRS Contribution Rate (10.74%) ($5,800) • FICA (SS & Medicare) (7.65%) ($4,131) • Total Pay Before Taxes $44,069 • ASRS Retiree (30 Years of Service and No Joint & Survivor Option) • Pay Rate (69%)$37,260 • ASRS Contribution Rate (10.74%) $0 • FICA (SS & Medicare) (7.65%)$0 • Total Pay Before Taxes $37,260 $6,809 Difference!! or $3.27/Hour!!

  9. Health Insurance (monthly) • COBRA? • Medical-Base EPO $297 ($447-$150) • Medical-Buy-up PPO $386 ($536-$150) • Medical-HDHP $253 ($403-$150) • Dental-Low Option (Delta) $29.01 • Dental-High Option(Delta) $46.68 • Dental-EDS $8.42 • ASRS Premium Benefit $150/$260 • ASRS Retiree Plan? • UnitedHealthcare • Non-Medicare Plan $491 ($641-$150) • ASRS Premium Benefit $150/$260 • Medicare Plans $190-$342 • ASRS Premium Benefit $100/$170 • Dental-Low Option $16.67 • Dental-High Option $35.51 • Spousal Plan?

  10. Employee Benefit Options • 401(k) Tax-Sheltered Account (TSA) • ING Financial • 20 + Mutual Funds • No surrender charge among separation of service • No obligation financial advisement • Worksite benefits/Cafeteria plan • Dental and Vision • Life Insurance and Long-Term Care • Flexible Spending Account (FSA)

  11. Is ESI Right for Me? • 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?

  12. FAQ’s • 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?

  13. Helpful Links • ESI • www.educationalservicesinc.com • Arizona State Retirement System • www.azasrs.gov • Social Security • www.ssa.gov • Internal Revenue Service • www.irs.gov

  14. Contact Us • Corporate Office • PO Box 235 • Cottonwood, AZ 86326 • toll free: (877) 303-7639 • office: (928) 634-7639 • fax: (928) 634-5639 • esi@esiaz.us • Tucson Office SJI Financial (Financial Advisor Group) • Jim FogltanceJim Bishopp • 5355 North Estelle Drive 7481 East Broadway BLVD #100 • Tucson, AZ 85718 Tucson, AZ 85710 • office: (520) 465-2579 office: (520) 326-6133 • Phoenix Office • Phil Tavasci • 5450 East High Street #300 • Phoenix, AZ 85054 • office: (480) 236-5074 • fax: (480) 794-1703

  15. Questions???

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