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Retirement 101

Retirement 101. Overview 110A 110B Immediate retirement. Which road to choose?. 110 A 1 year advance planning. PERA All The Way “Go when ready…”. 110 B 2 years advance planning. What is a 110?.

david-copeland
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Retirement 101

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  1. Retirement 101 • Overview • 110A • 110B • Immediate retirement

  2. Which road to choose? 110 A 1 year advance planning PERA All The Way “Go when ready…” 110 B2 years advance planning

  3. What is a 110? • PERA currently allows retired employees to work 110 days in a calendar year. The exception is a 140 day rule effective in 2010. District 6 will not participate at this time in the 140 option due to budget reductions. • The fall semester is less than 110 days. • The spring semester falls in the next calendar year, and is also less than 110 days. • So, retired teachers may teach ONE school year while collecting their retirement benefit as well as their teaching salary. This is sometimes called “double dipping.” District 6 has two different 110 plans.

  4. 110 plans have pros and cons. You DO make a lot more money for one year But, the “110” year does not count toward your PERA service credit. This may reduce your retirement benefit. It’s important to understand the options to make the best decision for YOU.

  5. Choosing the 110A • Requests are due to H.R. by MARCH 1st. • Assuming your most recent evaluation was satisfactory, you may be accepted, and notification will be sent to you by March 15th. • You must rescind your intent to retire April 1. • Officially retire at the end of this school year, 2010-2011. • Begin collecting PERA this June 30th. • District insurance runs until August 31st. • Work next year as a “110-er” • Starting in September, you may purchase COBRA insurance if you wish.

  6. The 110A year (2011-12) • Fulfill all the same responsibilities as you always have. • Most Master Contract provisions apply. • Continue GEA membership as an active employee • - Retired membership does not cover 110-ers; (gold) • Salary will be as if you had not retired. • As of January 2011, you will have to pay the 8% contribution for PERA. • - However, the year will not count toward your PERA service. • You will get the dollar amount the district pays for insurances. You may buy COBRA insurance if you wish. • You’ll have 10 days leave for any purpose (bereavement, discretionary, sick…) • No access to Sick Leave Bank or Donated Days • You may sell back unused days at 35% of sub pay • You will receive your step advancement and may request • Horizontal Advancement, contract permitting

  7. 110ACONS 110APROS Uncle Sam gets a big chunk! This year does NOT count for PERA service credit. No provision if you need more than 10 days leave or are unable to complete the year. Start retirement off with a financial bang! Collect your PERA and your salary. Only 1 year’s advance notice required.

  8. Choosing the 110B • Requests are due to H.R. by June 15th 2011 almost TWO YEARS before you plan to walk out the door. • Assuming your most recent evaluation was satisfactory, you will be accepted. Notification will be sent to you by June 30th. • You have until July 15th to rescind in writing. • In August 2011, work at the new teacher in-service and help new teachers throughout the year. You will be paid an additional 10% of your salary for this service. • Continue teaching in 2011-12 as a regular PERA employee. • Officially retire May 2012; • -start collecting PERA the following June 2012. • District paid insurance runs through August 31, 2012.

  9. The 110B year (2011-12) • Fulfill all the same responsibilities as you always have. • Most contract provisions apply. • Continue GEA membership as an active employee (Retired membership does not cover 110-ers) • Salary will be 90% of your step. • If applicable, you’re eligible for vertical and horizontal advancement. • You will have to pay the 8% employee contribution for PERA. • However, 2012-2013 will not count toward your PERA service. • You will receive the dollar amount the district pays for insurances. • You may buy COBRA insurance if you wish. • 10 days leave for any purpose (bereavement, discretionary, sick…) • No access to Sick Leave Bank or Donated Days. • You may sell back unused days at 35% of sub pay.

  10. 110BPROS 110BCONS • Earning an additional 10% by working with new teachers during your last regular PERA service year increases your H-A-S (the basis for your retirement). • Start retirement off with a financial bang! • Collect your PERA and your salary. • Your decision must be made almost 2 years before you plan to walk out the door. • Uncle Sam gets a big chunk. • Your double-dip year does NOT count for PERA service credit. • No provision if you need more than 10 days leave or are unable to complete the year.

  11. PERA All the Way Work as a regular PERA employee until you leave the district. No district benefit. Notify PERA and District 6 Pros • Retire when ready. No early decision required + • Cons • No lump sum of money to start off retirement

  12. Decide when you want to“walk out the door.”Then, explore the options. Option 3rd to last year 2nd to last year Last year 2010-11 or any yearRegular PERA Service all the way. Retire in May. None 2011-12Last PERA year. Request 110A by March 1st, 2011. Retire in May, 2011. 2011-12Return as 110-er. Collect PERA and your salary. 110A 2011 Request 110B no later than June 15th, 2011 2011-12In August 2011, work the New Teacher in-service for 10% of your salary. Last PERA year. Retire in May, 2012. 2012-13 Return as 110-er. Collect PERA and 90% of your salary. 110B

  13. Which is best? There are many factors to consider: Timing Personal plans Investment habits Age Longevity Flex Plans

  14. Next Steps • Look at your timeline and explore your options • Pay close attention to the deadlines • Review the Master Agreement • Meet with a PERA representative • Consult with your financial advisor • Make a decision and meet the deadlines

  15. Questions/Contacts PERA http://www.copera.org/, 303-832-9550 or 1-800-759-7372 Human Resources http://www.greeleyschools.org/, 970-348-6070 GEA http://greeleyea.org/, (970) 353-4187

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