P
LANNING
FOR
R
ETIREMENT
Business Day 2014
University Human Resources
Overview
Overview of Retirement Plans
Supplemental Retirement Plans
Steps to Retirement
Retiree Health Insurance
Medicare
O
VERVIEW
OF
Retirement Plan Options
• Any employee on state payroll •www.osc.state.ny.us/retire
Employees’ Retirement System (ERS)
• State employees in faculty title (very few exceptions) •www.nystrs.org
Teachers’ Retirement System (TRS)
• State employees with faculty or professional title, full-time, geographic full-time (GFT) or part-time term (part-time temporary not eligible)
Defined Benefit Plans
• ERS & TRS are defined benefit plans
Defined Contribution Plan (ORP)
• ORP is a Defined Contribution Plan
• ORP vendors include MetLife, TIAA-CREF, VALIC, VOYA
• Retirement benefit based on amount contributed to the plan and investment performance
S
UPPLEMENTAL
Additional Ways to Save
• Tax Deferred Savings Plans www.paycheckcity.com
Additional Ways to Save
• 403(b) Supplemental Retirement Annuity Plan
• $17,500 annual maximum, $23,000 if over age 50 • Deduction is fixed amount
• Contact list for approved vendors to set up account • Complete Salary Reduction Agreement Form
Additional Ways to Save
• 457 NYS Deferred Compensation Plan
• Plan #206001-01
• $17,500 annual maximum, $23,000 if over age 50 • Deduction is percentage of pay
• For information or to enroll, contact Nationwide Retirement Solutions at 800-422-8463 or visit
Your Responsibilities
1. Attend a retirement information session
2. Submit requests for estimates of retirement income to retirement system
3. Decide on an exact, beginning of business, date of retirement
4. Notify your Supervisor/Department Head in writing and send a copy to UHR
Your Responsibilities
4. File retirement application with your retirement system
5. Complete and return health insurance and Survivor Benefit forms to UHR
Department Responsibilities
1. Process paperwork changing you to retiree status 2. Forward final time accruals to UHR Retirement
R
ETIREE
Eligibility Requirements
1. Minimum service period of 10 years
if hired after April 1st, 1975
2. Must qualify for retirement as member of State Retirement System or ORP
Dependent Survivor Eligibility
Before Retirement
• Work related death
• Employer pays 100%
• Non-work related death
• Employee with 10 years of service within 10 years of
retirement, dependents pay employee share
• Employee with 10 years of service but more than 10 years
Health Insurance Premiums
• Income Sensitive Rates • ERS & TRS Retirees
• Premiums deducted from monthly pension check
• ORP Retirees
• Responsible to pay Department of Civil Service, Employee
Value of Sick Leave Accruals
• LIFETIME Monthly Credit based on:
1. Age 2. Salary
3. Sick leave accruals (maximum 200 days)
• Calculation
1. Determine hourly rate of pay – Divide annual salary by 1957
(2088 if you work 8 hour day)
2. Determine total dollar value – Multiply hourly rate by
number of sick leave hours
3. Determine LIFETIME credit – Divide dollar value by actuarial
Sick Leave Credit Options
1. Single Annuitant Option – 100% of Value
• Credit ends with your death
• Dependent(s) still eligible for health insurance, only credit ends • If you predecease your spouse, who is also covered under the
plan, your spouse will only lose the credit but can continue coverage at the lower single premium
2. Dual Annuitant Option – 70% of Value
• Credit passes to dependent(s) after your death
• If you have family coverage, you are not required to choose this
Application of Sick Leave Credit
• Sick leave accruals converted to credit only when employee status goes directly from active to retiree. • Same credit is applied every month to your health
insurance premium.
• If the credit is more, you pay nothing. No refunds for credit not used.
Medicare Overview
• Part A Hospital
• Free for insured people
• Part B Medical
• Cost of $104.90 per month
• Part C Medicare Advantage Plans
• Do not enroll, your supplemental coverage will be through
NYSHIP when Medicare is primary
• Part D Drug
• Do not enroll unless Medicaid eligible
Enrolling in Medicare
• Parts A & B
• Automatically enrolled 1st day of the month turn 65 if
collecting from Social Security OR
• Enroll within 3 months of 65th birthday or upon retirement if 65
and over
• State penalty for delaying enrollment
• Enrollment Options
• www.socialsecurity.gov/medicareonly for online application • Call Social Security at (800) 772-1213
After You Enroll in Medicare
• You will receive a new Medicare card
• Send a copy of the card to Civil Service, EBD with letter
• State Medicare reimbursement for you and possibly your spouse
• ERS/TRS Members added to pension check
Medicare as Primary Coverage
• Once retired, primary coverage at age 65
• NYSHIP coverage becomes supplemental once Medicare is
primary
• Coverage specific to enrollees based on age
• Medicare becomes primary 1st of month following active
employer health insurance runout OR
• Medicare becomes primary 1st of month in which you turn
Dental/Vision Coverage
• CSEA and UUP Employees
• Coverage directly through your union
• Eligible for COBRA once active employee coverage ends
• Once COBRA coverage ends, dues paying members eligible for
retiree plans
• C-82, NYSCOPBA, PBANYS, PEF & M/C Retirees
• Coverage directly through NYS
Death Benefits for Employees
Before Retirement
• ERS/TRS enrollees
• Benefit is dependent upon the option chosen at the time of
enrollment up to a maximum of three year’s salary
• ORP enrollees
The Survivor’s Benefit Program
• $3,000 death benefit for all state retirees • Payable to the beneficiary of the retiree • Eligibility
• 10 years of full-time state service within the last 15 years
• ORP enrollees
• Partial annuitize within 90 days if less than 62
Privileges and Memberships
• Library privileges
• Faculty emeritus status
• Emeritus Center membership for faculty and staff • Discounted access to recreational facilities
• Email account
• REV-UP volunteer program • Credit union membership • The Reporter
Interested in More Information?
• www.hr.buffalo.edu/retirement
• Sign up for a Retirement Information Session:
1. Go to www.hr.buffalo.edu
2. Under “Quick Start,” select “Sign up for retirement
Health Insurance Resources
Your New Human Resources Upon Retirement
Employee Benefits Division
(800) 833-4344
www.cs.ny.gov/ebd
MyNYSHIP Enrollee Self Service
Resources
Medicare
(800) 633-4227
www.medicare.gov
www.mymedicare.gov access your Medicare information
Social Security
(800) 772-1213
Resources
Employees’ Retirement System (ERS)
(866) 805-0990
http://www.osc.state.ny.us/retire
Teachers’ Retirement System (TRS)
(800) 348-7298
www.nystrs.org
Optional Retirement Program (ORP, TIAA-CREF)
(800) 842-2252
Contact for Questions
State Benefits Administration University Human Resources 120 Crofts Hall, North Campus
