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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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