Retirement Benefit Seminar

Presentation Transcript

Retirement Benefit Seminar Indiana State Teachers' Retirement Fund Please hush your PDA.

Overview TRF Retirement Benefit Retirement Payment Options TRF Resources: Web Site & Appointments

Pension Benefit Normal Retirement Eligibility Age 65+ with 10+ years of administration Age 60+ with 15+ years of administration Ages 55 to 59 when age added to years of administration aggregates no less than 85 (Rule of 85)

Reduced Pension Benefit Early Retirement Eligibility Age 50 to 59 with 15+ years of administration Age 50 – Early Retirement Factor = 44% Member will get 44% advantage forever Age 59 – Early Retirement Factor = 89% Member will get 89% advantage forever

Pension Benefit Calculation: Years of Service Fiscal Year: July 1 to June 30 120+ days = 1.0 year 60 to 119 days = 0.5 year 10 years of qualifying Indiana benefit = completely vested in annuity

Pension Benefit Calculation: What considers benefit? Standard Indiana showing administration Some substitute showing circumstances in Indiana School load up affirmed leaves of nonappearance from an Indiana school Public Employees' Retirement Fund (PERF) benefit Military administration credit Private school benefit in Indiana (acquired) Out-of-state administration (some of the time bought) Additional years obtained

Your Teachers' Retirement Fund (TRF) retirement advantage comprises of two separate segments: Monthly Pension Benefit + Annuity Savings Account Your TRF Retirement Benefit

TRF Retirement Benefit Your TRF Retirement Benefit has two sections: Monthly Pension Benefit Annuity Savings Account (ASA) Optional third part: Rollover Savings Account (RSA) Reminder: the IRS considers your aggregate TRF retirement advantage as assessable wage

Decisions to be Made When Applying for a Retirement Benefit Choose one of six choices for your Monthly Pension Benefit Choose one of seven alternatives for your Annuity Savings Account (ASA) Choose one of five choices for your Rollover Savings Account (RSA)

TRF Retirement Benefit Part One: Monthly Pension Benefit

Monthly Pension Benefit Calculation Factors Average Annual Compensation Average of five most elevated years of pay earned for secured Benefit Multiplier: 1.1% (.011) Years of Service credit earned or acquired Member's Age at Retirement Option Selection

Monthly Pension Benefit Formula: Average pay x 1.1% x years of administration (A-1 Option) Example: Age 55 30 years of administration Salary normal (5 most astounding years): $60,000 Annual annuity wage in view of equation: $60,000 x 1.1% x 30 = $19,800 ($1,650/month)

Monthly Pension Benefit Overview Six Options Three Limited Beneficiary Options A-1 A-2 A-3 Three Survivor Options B-1 B-2 B-3 Social Security Integration In conjunction with choices above if under age 62

Monthly Pension Benefit A-2: Straight Life Highest paying month to month annuity advantage for part No benefits advantage past part's lifetime

Monthly Pension Benefit A-1 and A-3 Options: 5-Year Certain & Life Both A-1 and A-3 offer: Lifetime month to month annuity advantage for part 5-year ensure for recipients of month to month benefits advantage Only A-3 offers: Guaranteed adjust recuperation of ASA; accessible just with ASA 1 or ASA 7 race

Monthly Pension Benefit Survivor Options B-1 100% Survivor Benefit B-2 66-2/3% Survivor Benefit B-3 50% Survivor Benefit Upon death of part, fitting rate paid to named survivor

Monthly Pension Benefit Survivor Exceptions Your decision of survivor and benefits choice can't be changed unless the accompanying conditions exist: Survivor pre-perishes part Some separation circumstances Member weds after retirement Member must advise TRF and finish suitable printed material. Change is viable when every single required frame are finished.

TRF Retirement Benefit Part Two: Annuity Savings Account

Annuity Savings Account What is it? Singular venture bank account Mandatory commitments 3% of Annual Salary Voluntary commitments Pre-assessment or post-charge Investment picks up & misfortunes Immediately Vested individuals, idle for 90 days after June 30, 2009, can pull back their ASA adjust without relinquishing their benefits

ASA: Pre-86 Contributions All commitments into the ASA preceding December 31, 1986 Pre-86 dollars exhausted before commitment Pre-86 commitments open at retirement without further expense punishment

Annuity Savings Account Monthly Options ASA 1: Annuity changed over to lifetime regularly scheduled installment ASA 7: Pre-86 commitments circulated; staying assessable segment paid as lifetime month to month profit Full Distribution ASA 2: Full conveyance (single amount) with duty suggestions

Annuity Savings Account Rollover Options ASA 3: Total Rollover Pre-86 commitments dispersed to part Taxable bit paid as a rollover to IRA/qualified arrangement ASA 4: Partial Rollover Pre-86 commitments disseminated to Part of assessable segment paid as a rollover to IRA or qualified arrangement Remainder of assessable bit paid as singular amount appropriation

Annuity Savings Account Deferral Options ASA 5: Deferred conveyance of whole ASA 6: Pre-86 commitments disseminated to part; assessable segment conceded

Rollover Savings Account (RSA) Members may make an extra investment account at TRF before retirement Roll over duty conceded reserves from IRA or other qualified retirement arranges Control speculation designations Elect an installment choice at retirement

Rollover Savings Account Five Options RSA 1: Monthly advantage RSA 2: Full appropriation RSA 3: Rollover to an IRA or qualified arrangement RSA 4: Partial rollover to IRA or qualified arrangement; leftover portion paid as circulation RSA 5: Deferred dispersion

Rollover Savings Account Research Different Options As retirement methodologies, contrast outside retirement arrange installment alternatives and TRF's installment choices. Account adjust TRF Company X Company Y      $60,000                  $432            $339                 $345        80,000                   576               452                    463      100,000                   720               565                    582     120,000                   864               678                    701 (Information recovered January, 2009)

Pension Benefit Social Security Integration Available to individuals resigning preceding age 62 Utilizes SSA age 62 advantage data Increases TRF advantage until part achieves age 62 Decreases month to month TRF advantage at age 62 and from that point

Pension Benefit Social Security Integration Take our prior case: Member resigns with a TRF advantage of $1,650/month Monthly Social Security advantage at age 62 = $1,000 Monthly TRF advantage before age 62 = $2,188 Monthly TRF advantage at age 62 = $1,188 Combined Monthly TRF and Social Security benefits at age 62 : $1,188 + $1,000 = $2,188

Death Before Retirement Pension Benefit Eligibility Member has no less than 15 years of administration If wedded no less than 2 years, mate gets a benefits forever If no qualifying life partner, subordinate youngsters get an annuity advantage until 18 years old Annuity Savings Account (ASA)

Retirement Planning Please recollect, TRF representatives are not monetary organizers. Know about individual needs Lifestyle change, medicinal services costs, expansion, make a trip Research alternatives accessible to you Consider all wellsprings of retirement wage Social Security, TRF advantage, individual reserve funds, mate's retirement

Ready to Retire? Finish Application for Retirement Benefits, Part I and submit to TRF in an auspicious way Now accessible to submit on the web! Submit Application for Retirement Benefits, Part II to your manager's finance office

Reemployment To reemploy in TRF-or PERF-secured positions: 30-day compulsory partition from retirement date to reemployment date No extra administration credit earned No commitments to ASA No income restriction To reemploy in private division: Employable promptly No profit impediment Subject to Social Security confinements

TRF Benefit Appointments One-on-one arrangement to talk about individual advantage and installment alternatives Schedule roughly two years preceding foreseen retirement date Call TRF: (888) 286-3544 or (317) 232-3860 Benefit arrangement choices Indianapolis TRF office Phone call TRF goes to your school

TRF Web Site www.in.gov/trf

TRF Web Site Register with your email address as your username, and you will be messaged an individual recognizable proof number (PIN) to sign in Can change PIN after online enrollment Change contact data, venture allotments, & see quarterly proclamations Use advantage appraise mini-computer Change/upgrade recipients Print Retirement Application – or submit it on the web

Teachers' Retirement Fund We are here to serve you! Any inquiries? If it's not too much trouble finish our overview. Your remarks help us serve you all the more adequately.