alternate benefit program abp retirement seminar

1. Alternate Benefit Program(ABP) Retirement Seminar Sponsored by University Human Resources 732-932-3020, ext. 4077

3. Steps to Retirement 6-8 months before retirement Request information about payout options from investment carrier 4-6 months before retirement Notify your department Determine last working day (staff employees) Contact Social Security office (if you plan to apply) 3 months before retirement Complete Application for Retirement Allowance Make arrangements with carrier to withdraw funds If you or spouse or civil union/same-sex domestic partner is 65+, enroll in Medicare A & B

4. Steps to Retirement (continued) 1 month before retirement Call Prudential at 1-800-262-1112 for life insurance conversion if interested Shortly before retirement Enroll in Retired Group State Health Benefits Enroll in Retiree Dental Expense Plan Shortly after retirement Receive COBRA letter Receive cash settlement or annuity from investment carrier Sick leave payout (staff employees)

5. Receiving your Retirement Income Retirement income based on investment earnings and payout option How you receive your income is up to you For information on income options and allocation choices, contact carrier directly Must elect annuity or cash settlement to be retired otherwise not eligible for retiree benefits

6. Health Benefits at Retirement Active medical, prescription drug and dental coverage continues to end of retirement month Retiree medical benefits begin the first day of the month following retirement (enrollment required) Example January 1 retirement: Active employee benefits end January 31 Retired Group State Health Benefits begin February 1 Retiree Dental Expense Plan begins February 1

7. Employees Who Attained 25 Years of Pension-credited Service Prior to July 1, 1997 No contributions required for Retired Group State Health Benefits Health benefits include medical and prescription drug coverage Full reimbursement for cost of Medicare Part B premiums (per individual) provided by the State

8. Employees Who Attained 25 Years of Pension-credited Service Between July 1, 1997 and June 30, 2007 Contributions required for Retired Group State Health Benefits for NJ DIRECT 10 only (NJ DIRECT 15 and HMOs are free) Premium sharing according to terms specified in agreement in effect at the time employee attained 25 years of pension-credited service Rates for retirees who share the cost of their coverage with the State (in folder and on state�s website) http://www.state.nj.us/treasury/pensions/hb_open_enrollment_2009/hr-0744.pdf $46.10 - partial reimbursement of Medicare Part B premiums (per individual)

9. Employees Who Attained 25 Years of Pension-credited Service On or After July 1, 2007 Health contribution of 1.5% of 50 percent of the highest salary received in the five years prior to retirement Waived if enrolled in the SHBP Retiree Wellness Plan Agree to and submit Pledge for Healthier Living; Complete a Health Risk Assessment annually; Have a medical check-up annually; Have appropriate tests and screenings when recommended; Participate in health plan�s disease management program when recommended.

10. Employees Who Retire with Less than25 Years of Pension-credited Service Option to enroll in Retired Status State Health Benefits and pay full group rate Do not qualify for reimbursement of Medicare Part B premiums Rates for retirees who pay the full cost for their coverage (rates in folder and on state�s website) http://www.state.nj.us/treasury/pensions/hb_open_enrollment_2009/retired-state-full-cost.pdf

11. Surviving Spouses or Civil Union/Same-Sex Domestic Partners of Retirees with 25+ Years of Pension-Credited Service Surviving spouse or civil union/same-sex domestic partner may continue retiree health Will be required to pay full group rate Will not qualify for reimbursement of Medicare Part B premiums

12. Enrolling in Retired Group State Health Benefits Enrollment packet mailed from NJ Division of Pensions and Benefits to home address State Health Benefits Retired Status Application Available at: http://uhr.rutgers.edu/documents/SHBPRetApp.pdf If packet is not received month prior to retirement call the NJ Division of Pensions office of Client Services at 609-984-1683 Complete and return Application to the Division of Pensions and Benefits Proof of enrollment in Medicare required for retiree and/or dependent 65 or older

13. Retiree Dental Expense Plan Dental plan designed for retirees Administered by Aetna Dental Retirees pay full cost Continues as long as premiums are paid More information available: http://www.state.nj.us/treasury/pensions/shbp.htm

14. Health Benefit Coverage Changes Coverage may be changed once during a 12-month period Coverage changes after a qualifying event Special enrollment Rate changes New offerings For questions regarding coverage, call the Division of Pensions and Benefits Retiree Benefits Office at: 609-984-1683

15. Continuation of Non-core Benefits through COBRA COBRA packet mailed from Human Resources to home address Dental coverage may be continued through COBRA for 18 months Active employee (Caremark) prescription drug coverage may be continued through COBRA for 18 months Vision coverage may also be continued though COBRA for 18 months COBRA rates on University Human Resources website: http://uhr.rutgers.edu/documents/cobrarates2010.pdf

16. Life Insurance at Retirement Must have 10 years pension-credited service Must be at least age 60 Must collect retirement benefit (cash or annuity) Amount = � times last 12 months salary

17. Conversion of Life Insurance One time option to convert to individual private policy through Prudential Must be done no later than 31 days after retirement date Cannot be denied for health reasons May want to contact other carriers for comparable life insurance rates To convert, contact the Prudential Group Life Conversion department at 1-877-889-2070 You can also use the online Prudential Life Insurance Calculator at: http://www.state.nj.us/treasury/pensions/conversion-calc.htm Group number is G-14800

18. Determining Last Working Day(Staff Employees Only) Unused vacation, accrued vacation, AL days and PH days are to be taken prior to retirement Plan ahead since last day in office may be several weeks or months before actual retirement date Employee and department should come to an agreement regarding last day of work

19. Last Day of Work Calculation Example Jane�s retirement date = June 1 Jane earns 20 vacation days per year Days remaining Number of vacation days remaining = 10 Number of AL days remaining = 1 Number of PH days remaining = 2 Number of vacation days accrued (July � May) = 18 University holiday (Memorial Day) = 1 Total days to be used prior to retirement = 32 Count backwards 32 days from June 1 Jane�s last work day = April 15

20. Sick Leave Payout (Staff Employees) Eligible staff employees receive one half the balance of their sick days up to $15,000 All applicable taxes will be deducted Allow 8 to 10 weeks processing time Sick Leave Payout at Retirement Deferral form can be used to defer sick leave payout Deferral form available from Human Resources: http://uhr.rutgers.edu/documents/Sick_Leave_Defer.doc

21. Compassionate Leave Program (Staff Employees) Donated-leave bank program for qualifying managerial, professional, supervisory, and confidential employees, as well as members of the URA-AFT and AFSCME Local #888, who experience catastrophic health conditions and will exhaust all of their paid time off Eligible employees can donate up to 50 vacation and/or sick leave days to the leave bank To donate, complete and submit Donation to Bank form available at: http://uhr.rutgers.edu/documents/CompassionateLeaveDonate.doc

22. Retired Faculty Association (RFA) Serves needs and interests of retired faculty Sponsors workshops and other events Members receive RFA Bulletin Join by completing membership application Annual membership dues = $10.00 For more information visit the RFA website: http://scils.rutgers.edu/rfa/rfawebform.html

23. Silver Knights Rutgers Staff Retirees Association Serves needs and interests of retired staff Sponsors workshops, trips, luncheons Members receive Silver Knights Herald newsletter Join by completing membership application Annual membership dues = $10.00 For more information, visit the Silver Knights website: http://scils.rutgers.edu/silverknights/

24. Telephone Contacts Division of Pensions and Benefits Retiree Benefits 609-984-1683 Client Services 609-292-7524 Deferred Compensation 1-866-657-3327 University Human Resources 732-932-3020 ext 4077 Social Security 800-772-1213 Internal Revenue Service 800-829-1040 NJ Division of Taxation 800-323-4400

25. State-authorized Investment Carriers AXA Equitable 866-786-0856 The Hartford 800-243-7782, ext. 54400 ING Financial 877-873-0321 MetLife 732-652-1322 TIAA-CREF 866-842-8412 VALIC 800-448-2542

26. Useful Websites University Human Resources http://uhr.rutgers.edu/ Internal Revenue Service (IRS) http://www.irs.gov/ Medicare http://www.medicare.gov/ Social Security Online http://www.ssa.gov/ NJ Department of Banking and Insurance http://www.state.nj.us/dobi/index.shtml NJ Department of Health and Senior Services http://www.state.nj.us/health/ NJ Division of Pensions and Benefits http://www.state.nj.us/treasury/pensions/