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USD 259 Retirement Seminar

USD 259 Retirement Seminar. Hosted by Employee Benefits & Insurance Management Dept. USD 259. USD 259 VOLUNTARY EARLY RETIREMENT PLAN. “The Bridge”. Requirements for Eligibility. Hire or rehire in a benefited position prior to July 1, 1996

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USD 259 Retirement Seminar

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  1. USD 259 Retirement Seminar Hosted by Employee Benefits & Insurance Management Dept. USD 259

  2. USD 259 VOLUNTARY EARLY RETIREMENT PLAN “The Bridge”

  3. Requirements for Eligibility • Hire or rehire in a benefited position prior to July 1, 1996 • 15 years or more in a benefited position with USD 259 • At least age 50 but not over 65 • Vested with KPERS • Employee group must participate • Must apply for retirement by the last working day in February, if you wish to receive Bridge payments anytime during the next fiscal year.

  4. Not Required . . . • You do not need 85 points to qualify for the District’s Early Retirement Program, known as the “Bridge”. • You do not need to be 60, if leaving employment to be eligible to “vest” your Bridge benefits.

  5. You may be eligible… • If you’re at least age 50 but not over 65, and • You have 15 or more years in a benefited position with USD 259. • Contact the Retirement Office before terminating to determine if you are eligible for the “Bridge”. • If you are terminated from employment, you no longer qualify for the “Bridge”.

  6. Work Restrictions after Early Retirement • After retirement you are ineligible for employment with USD 259 in any capacity other than as a substitute employee. • Any exception to this policy concerning employment will be subject to approval by the Superintendent of Schools.

  7. “Bridge” Consists of • Bridge Payment • BOE Life Insurance until 65 • BOE Health Insurance available, if you pay the premium and meet the qualifications Note: Must be receiving KPERS retirement Benefits to begin “Bridge” payments.

  8. Bridge Payment . . . • Monthly payment until age 65 • May include two parts: • Social Security “Bridge” • KPERS “Bridge”

  9. BOE “Social Security Bridge” • Begins at age 60 (or at retirement if older) • Ends at age 62 • Maximum of 24 payments • Payment based on • Social Security estimate • Reduced by 5% for each year under 20 years of USD 259 service.

  10. BOE “KPERS Bridge” • Begins at age 60 (or at retirement if older) • Ends at age 65 • Maximum of 60 payments • Payment based on • Final Average Salary with KPERS • Years of service with KPERS * *Note: Any Purchased (Buyback) service are excluded (e.g.: Forfeited, Military or Out of State Service) • 1.4% multiplier for participating service

  11. Bridge Taxes Bridge Payments are taxable for: • Federal Income Taxes and • State Income Taxes Note: Consult your tax advisor on any tax consequences.

  12. Example: Retire at age 60, $55,000 final average salary, 25 years of service Age 60KPERS$2,000 USD 259 (KPERS) Bridge$1,650 USD 259 (Social Security) Bridge $1,200 Total $4,850 Age 62KPERS$2,000 USD 259 (KPERS) Bridge$1,540 Social Security (if started at 62) $__?__ Total $4,850 Age 65 KPERS$2,000 Social Security (if started) $___?_ Total $3,200

  13. Bridge Life Insurance Options • BOE Life Insurance until 65 • Life Premium paid by USD 259 • Benefit amounts same as district life benefits -this is $30,000 (for most employee groups) • This is in addition to $4,000 from KPERS or any additional purchased from Minnesota Life.

  14. Health Coverage Options at Retirement • If you wish to participate in the USD 259 Health Plan as a Retiree. You must enroll for coverage with Employee Benefits by your retirement date or coverage will be terminated. • At this time, you and your spouse may stay on the USD 259 health plan. • USD 259 Retiree premiums are subject to change based on yearly negotiations (premiums can be 125% of what BOE or employees pay). • Investigate and explore other health plan coverage options • Senior Health Insurance Counseling for Kansas (SHICK) • AARP • Other Individual & Group Policies

  15. Health Coverage Options at Retirement • Retirement at or after age 65 (with spouse age 65 or older) • No longer eligible for USD 259 health plan • Must sign up for Medicare A, B & D or a supplemental plan.

  16. Health Coverage Questions • For USD 259 Health Plan: • Coventry Customer Service: 1-866-765-7841 • Judy Foy: 973-4564 or jfoy@usd259.net • Medicare: 1-800-722-1213 1-866-931-9173 (local ) • SHICK: 316-660-0100 ext 0117

  17. Factors to Consider before Retiring Early • Retirement is a major lifestyle change • Salary and longevity end • Social Security • Health Care Costs • KPERS Benefits Change • Earnings Limits • Return to Work Options • Increased Life Expectancy / Effects of Inflation • Effective Date of Retirement

  18. How much money do you need to retire? • Financial planners recommend 80-100% of your working income. • Where will your money come from? • Social Security • KPERS • Personal Savings and Investments • USD 259 Bridge (if eligible)

  19. Your Responsibility: • Contact the retirement office for retirement counseling appointment to sign retirement paperwork. • Deadline to sign if you plan to draw in the next fiscal year, July 2011 to June 2012, forms signed by 25th of February, 2011. • If leaving district, you must sign Pre-Early Retirement forms prior to leaving to vest your rights to benefits starting at 60. • KPERS requires proof of age and any legal name changes. • Must notify KPERS and USD 259 Human Resources of address changes. • Must notify KPERS and USD 259 Payroll Dept. of banking institution before starting benefits or if any changes after retirement.

  20. USD 259 Early Retirement Deadlines • Bridge Benefits in the next fiscal year- forms signed by last working day in February.Fiscal year runs July 1, 2011 to June 30, 2012. • If leaving district this year, but wish to draw Bridge benefits after next fiscal year - you must sign Pre-Early Retirement forms prior to leaving to vest your rights to benefits starting at 60.

  21. Calculators • USD 259 Bridge Calculator http://kperscalc.usd259.net/ • KPERS Calculator http://www.kpers.org/benefitcalckpers.htm

  22. Questions About KPERS or the “Bridge” Leilani Hook, USD 259 Retirement Specialist 316-973-4590 lhook@usd259.net or e-mail employeebenefits@usd259.net www.kpers.org 1-888-275-5737

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