Welcome to Retirement

1. Welcome to Retirement Presented by APS Benefits Department Ellen Kennedy Director of Employee Relations x 6103 Andi Oppenheimer Benefits Administrator x 2881 Michelle Brauch Benefits Specialist x 8627 M. Ann Irby Benefits Specialist x 6105

2. Medical Insurance • Retiree pays pro-rated share of cost as determined by School Board • If timely payments are received: • Coverage continues indefinitely for retiree • If retiree dies, covered surviving spouse and/or eligible dependent children may continue coverage at full cost • If you drop coverage, you cannot come back onto the plan

3. Medical Insurance and Medicare • Medicare eligible members, if and when retired, will be covered under either United Healthcare Senior Supplement Plan or Kaiser Medicare Plus. • To apply for Medicare you must contact the Social Security Administration at least 3 months prior to turning age 65 or at your retirement, if age 65 or over. • Medicare becomes your primary insurance and United Healthcare (UHC) becomes your secondary insurance, if you are transitioning from a Cigna Health Plan. **Please contact Medicare directly for detailed information

4. School Board Contribution

5. Delta Dental Insurance • Retiree pays 100% of cost • If timely payments are received: • Coverage continues indefinitely for retiree • If retiree dies, covered surviving spouse and/or eligible dependent children may continue coverage at full cost • If you drop coverage, you cannot come back onto the plan

6. Paying for Medical & Dental • If you are enrolled in Kaiser, CIGNA or Delta Dental, your premiums may be deducted from your VRS or ACERS pension check. If you are enrolled in United Healthcare, you can pay by check directly to UHC or have your premiums paid automatically from your personal bank account. • Under certain circumstances, retirees will have to pay by personal check directly to APS. Timely payment is required to continue your coverage.

7. Health Insurance Credit • Provides you with a reimbursement to assist with the cost of your health insurance. • Eligibility - Retiring with 15 or more years of creditable VRS service. • Qualified plans: • Individual medical plans; coverage as a dependent on a spouse's plan; • Employer-sponsored medical plans; • Medicare Part B; and • Dental, vision and prescription drug plans including Medicare Part D. • Other types of plans for specific conditions or coverage are not eligible.

8. Applying for the Health Insurance Credit • If VRS is deducting your health insurance premium from your benefit, you do not need to apply for the health insurance credit. • If VRS is not deducting your health insurance premium or you have eligible health insurance coverage in addition to your employer-sponsored coverage, complete and send the Request for Health Insurance Credit VRS-45 Form to VRS. • The credit will be added to your monthly retirement benefit.

9. Flexible Spending Accounts • Enrollment ends as of the effective date of your retirement. • Claims incurred from January 1st to your retirement date are eligible for reimbursement • Claims must be submitted no later than 90 days from your retirement date “Use it or Lose it”

10. Other Benefits • 403B Plan • Upon retirement, you can choose to take a distribution from your plan or rollover your balance to an IRA or other qualified plan. You must contact your provider and our third party administrator, TSA Consulting, who will help you understand any fee implications, if applicable, that might be incurred. You should also contact TIAA-CREF, who handles your School Board match account, to take a distribution or opt for a rollover. • Long Term Care (Aetna or Genworth) • Converts to an individual policy and you pay premiums directly to Aetna or Genworth

11. Leave Payout • 100% of value of all accumulated annual leave will be paid • 50% of value of all accumulated sick and personal leave will be paid (25% if hired after 7/1/2011) • Payoffs that exceed $2,500 will be made in pre-tax dollars • Tax-deferred account will be established with BENCOR, Inc.

12. Retirement Appointments • Individual appointment - contact Michelle Brauch x8627 • Beginning January for July 1 retirement • July 1 retirement paperwork must be submitted to Michelle as soon as possible. • Retirement letter must be submitted to your supervisor and a copy to Michelle Brauch with the completed retirement application • VRS retirement application processing time is 60 days.

13. Questions