Real World Smart MADISON AREA TECHNICAL COLLEGE RETIREMENT BENEFITS February 2014 Real World Smart Objectives • Retirement Types • Benefits – Employee Benefits – Retirement Benefits • Other retirement information • Retirement notification • FAQs Madison College 2014 Retirement Benefits Recorded on February 18, 2014 Page 1 of 21
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Recording Madison College Retirement Benefits 18Feb-2014 · 2018-02-02 · Retiree Benefits • Sick Leave Payout • Health Insurance • Dental Insurance • Life Insurance •
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Real World Smart
MADISON AREA TECHNICAL COLLEGE RETIREMENT BENEFITS
February 2014
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Objectives
• Retirement Types• Benefits
– Employee Benefits– Retirement Benefits
• Other retirement information• Retirement notification• FAQs
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
Page 1 of 21
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Employee Benefits• Sick Leave
• Health Insurance
• Dental Insurance
• Life Insurance
• WRS Retirement
• Voluntary Vision
• Flexible Spending Account
• Disability Insurance
• Tax Sheltered Annuity
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Retiree Benefits• Sick Leave Payout
• Health Insurance
• Dental Insurance
• Life Insurance
• WRS Retirement Annuity
• Voluntary Vision
• Flexible Spending Account
• Disability Insurance
• Tax Sheltered Annuity
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
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Retirement Types
• Normal – Age 55+• Early• Earlier• Normal – Age 65+
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Normal Retirement – Age 55• Full time employees
– Eligible at age 55– 5 Years of Service
• Receive Sick Leave Payout• May continue in group benefit plans at
retiree’s expense • WRS Penalty for retiring prior to age 65
(“actuarial reduction”)
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
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Early Retirement Defined• Faculty
– Age 60– 15 Years of Madison College Service
• Administration– Age 60– 10 Years of Madison College Service
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Early Retirement Terms• Sick Leave Payout• College assumes the cost to eliminate
WRS Penalty• May continue in group benefit plans at
retiree’s expense
BUT, Early Retirement is generally superseded by…
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
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Earlier Retirement Defined
Faculty• Age 57 with 15 years of Service• Age 60 with 10 years of Service • The retirement date is between semesters
and no later than December 31, 2014 to retire under current terms.
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Earlier Retirement Defined
PSRP• Age 57 with 15 years of Service• Age 60 with 10 years of Service• The retirement date is no later than
December 31, 2014 to retire under current terms.
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
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Earlier Retirement Defined
Administration • Age 57• 10 years of service OR 7 years Madison
College service and 3 years other Public System service
• The retirement date is no later than December 31, 2014 to retire under current terms.
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Earlier Retirement Benefits• Sick Leave Payout• Health Insurance
– Single coverage paid until Medicare eligible (normally age 65)
– Spouse/family coverage available at retiree cost
• College assumes the cost to eliminate WRS Penalty
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
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Normal Retirement – Age 65• Full time employees
– Age 65+– 5 Years of Service
• Receive Sick Leave Payout• May continue in group dental plan at
retiree’s expense
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SICK LEAVE
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
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Sick Leave Payout
Faculty • 150 days maximum• ¾ of accumulated sick days X daily rate =
$(payment to tax sheltered account)• Daily Rate = current salary / 190 days
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Sick Leave Payout
PSRP • 150 days maximum• ¾ of accumulated sick days X daily rate =
$(payment to tax sheltered account)• Daily Rate = hourly rate X hours per day
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
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Sick Leave Payout
Administrative • 150 days maximum• ¾ of accumulated sick days X daily rate =
$(payment to tax sheltered account)• Daily Rate = contract amount/contract days
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Sick Leave Distribution
• Allocation based on health insurance choice at retirement
• Payment by Madison College to your sick leave account
- Account administered by Mid-America Retirement Solutions, Inc.
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
• Eligibility by defined groups• Used for medical expenses on tax free basis• Eligible medical expenses
- Premiums- Uninsured medical expenses- Long Term Care premiums- Medicare supplements
• HRA may be combined with 403(b) Special Pay
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Sick Leave Distribution
Special Pay Plan - 403(b) Up to $50,000 (IRS Regulation) Tax deferred until withdrawn No FICA Taxes Available for immediate withdrawal Funds can be used for any purpose
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
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Sick Leave Payout Distribution
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Health Insurance Eligibility
• Retire with an annuity from WRS• 5 years Madison College Service• Currently in health insurance group
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
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Health Insurance Options
Group Health Cooperative(GHC)• Current Active Employee Plan
Monthly PremiumSingle $437.84Family $1,235.16
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WPS Early Retiree Plans
• Offered for retirees not Medicare eligible
• Lower cost option to active employee plans
• Single coverage ($ equivalent) paid by College as part of EarlierRetirement Package
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
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WPS Early Retiree Plan• Differences from active WPS Plan
– Higher deductibles (varies between plans)– No specialty office co-pay– No in-network coinsurance for Southern/HealthyU– Higher out of pocket maximums– HealthSense (wellness) NOT included– May purchase two single plans for retiree and
spouse if family plan not needed
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Health Insurance OptionsWPS Early Retiree Plan Monthly Premiums• WPS Southern & HealthyU
Eligibility to remain in group plan• Retire with an annuity from WRS• 5 Years Madison College Service• Currently in dental insurance group• Eligibility to remain in group plan after
Medicare eligible
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
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Dental Insurance• Current Delta Dental Plan
• $1500 benefit per person per year• $2500 Lifetime Orthodontic benefit• Coverage does NOT end at age 65
• Cost (Monthly)• Single $47.64• Family $133.62• May purchase two single plans for retiree and spouse at
$95.28
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Health and Dental Insurance
Mechanics• Download Early Retiree Benefits Packet
from College Retirement website • Submit election form to Human
Resources/Payroll approximately one month before retirement date
• Electronic transfer of funds required for insurance premiums
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
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LIFE INSURANCE
• Eligibility– WRS Annuitant– 5 years WRS Service– Currently enrolled in Life Insurance
• Benefits– May continue BASIC at own cost– Premium deducted from WRS annuity
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Life Insurance
• Basic Coverage becomes paid up at age 65
• Coverage decreases to 75% at age 65• Coverage decreases to 50% at age 66
Madison College 2014 Retirement Benefits Recorded on February 18, 2014
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Wisconsin Retirement Benefits• Formula Benefits
– Average of 3 highest years*3 highest years are fiscal years only
– Years of Service Multiplier • .01765 years before 2000• .016 years after 2000
• Money Purchase– Purchase annuity at market rate
• Annuitant Receives Higher of Two Methods
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Wisconsin Retirement System
• Benefit Programs Section– Life Insurance– Annuity Options Explained