AP Keenan Financial Services Supplemental Employee Retirement Plan

AP Keenan Financial Services Supplemental Employee Retirement Plan (SERP) Group Orientation Meeting Southwestern Community College District February 21st & 24th, 2023 Keenan & Associates CA License No. 0451271 www.keenan.com

What is SERP? Supplemental Employee Retirement Plan – Provides monthly retirement income benefits to you CalSTRS / CalPERS is your primary source of income Voluntary for employees & paid for by employers 2 Keenan & Associates CA License No. 0451271

SERP Advantages Start enjoying retirement early Reduce the need to work longer to increase the lifetime pension benefit Provides current supplemental income, allowing your other investments to continue to grow Financial bridge between working and retirement Flexible payment options to protect spouse or other loved ones 3 Keenan & Associates CA License No. 0451271

SERP Advantages Several payment options to fit your needs Monthly payments of 9 years or less are eligible to be rolled over into a tax deferred IRA, 403(b) or 457(b) Plan May return to service part-time with CalSTRS or CalPERS after 180 days 4 Keenan & Associates CA License No. 0451271

How Does SERP Work? Submit letter of resignation and complete enrollment packet Annuity Purchased by Employer – Monthly checks begin the month after SERP effective date – United of Omaha – A Rating AP Keenan Financial Services – Contract Administrator – Individual Counseling Sessions – Customer Service 5 Keenan & Associates CA License No. 0451271

Example: Income Benefit Options Example: Faculty Employee – Age 62.4 Benefits Based on 80% of my Academic 2022-2023 Year base salary – 120,990 Monthly Alternative Benefit A Life Only Benefit 549.74 B Joint & 50% Survivor 509.58 C Life or Ten (10) Years, whichever is longer 533.57 D Five (5) Year Monthly Payments* 1,617.65 E Six (6) Year Monthly Payments* 1,383.39 F Seven (7) Year Monthly Payments* 1,216.56 G Eight (8) Year Monthly Payments* 1,091.87 H Nine (9) Year Monthly Payments* 995.27 I Ten (10) Year Monthly Payments 918.32 * Eligible for IRA Tax Deferred Rollover. Mandatory 20% Federal Tax applies to benefits not rolled-over. Under IRS rules, if you are over the age of 73, you may not rollover your annuity payments and they will be fully taxable. Acceptance of your application to participate in the Supplemental Employee Retirement Plan (SERP) is contingent on the District's verification of eligibility. Annuity benefits are provided by an insurance company and quoted amounts are estimates only. Estimated benefits are subject to change prior to actual purchase of annuity benefits. Estimated benefits may change due to changes in the data supplied by the District, changes in current interest rates, mortality assumptions, commission percentages and state premium tax. The District may be subject to penalty fees for late premium payments and benefits may cease if all installment premiums are not paid in accordance with the installment premium schedule. 6 Keenan & Associates CA License No. 0451271

Eligibility Guidelines for Employees 1. Employee must be a permanent employee of the College District. 2. Employee must have at least five (5) or more years of continuous College District service at date of retirement or resignation. 3. Employee must be at least fifty-five (55) years of age or older at date of retirement or resignation, if CalSTRS eligible. 4. Employee must be at least fifty (50) years of age or older at date of retirement or resignation, if CalPERS eligible. 7 Keenan & Associates CA License No. 0451271

Eligibility Guidelines for Employees 5. Employee must retire or resign from the College District by June 30, 2023. 6. Non-faculty Employee must submit a Letter of Retirement or Resignation and the SERP Enrollment Package no sooner than January 31, 2023, and no later than May 9, 2023. 7. Faculty Employee must submit a Letter of Retirement or Resignation and the SERP Enrollment Package no sooner than April 10, 2023, and no later than May 9, 2023. 8. Academic employees participating in the Supplemental Employee Retirement Plan (SERP) shall NOT be eligible for the Voluntary Early Retirement Continuation of Service Program (VERCOS). 8 Keenan & Associates CA License No. 0451271

Disclaimer IMPORTANT: If the number of eligible employees or types of positions enrolled in the SERP following the enrollment deadline does not provide the College District with the required budget savings, the College District reserves the right to withdraw the SERP. If the College District withdraws the incentive, an employee who submitted for the program may withdraw their retirement or resignation. 9 Keenan & Associates CA License No. 0451271

SERP Enrollment Packet **SERP enrollment packets will be sent to employees through DocuSign prior individual counseling meetings. Non-Faculty employees may begin submitting packets as of January 31, 2023. Faculty employees will initially receive an unofficial watermarked draft copy of the enrollment packet. The watermarked copies are provided to assist employees in retaining the information received during the individual counseling session and will not be accepted as final participation documents. Faculty employees will be provided with the official SERP enrollment packet through DocuSign on April 10, 2023, when the SERP window opens, and all participant elections must be submitted electronically no later than May 9, 2023. 10 Keenan & Associates CA License No. 0451271

SERP Participation Timeline Schedule your Individual Counseling Session: – February 28, 2023 – March 3, 2023 Complete and submit a Letter of Resignation and SERP Enrollment Package by – May 9, 2023 Retire from the District on or before – June 30, 2023 Receive your first benefit payment on – August 1, 2023 11 Keenan & Associates CA License No. 0451271

SERP Individual Counseling Session Important Reminders Sign-up for an appointment today https://southwesternccdserp.appointy.com You’re welcome to bring your family members and/or financial advisor with you. Check for your latest CalSTRS or CalPERS statement and make an appointment with a CalSTRS or CalPERS counselor www.calstrs.com www.calpers.ca.gov 12 Keenan & Associates CA License No. 0451271

Technology Questions? Zoom, Appointy or DocuSign Questions? Email [email protected] Phone 13 (800) 444-9995, extension 3671 Keenan & Associates CA License No. 0451271

About AP Keenan 1M Lives 50 YEARS 2022 of Providing Customized Solutions 14 850 Schools Clients 40% OF EMPLOYEES 200 Public Agency Clients Have Worked at AP Keenan for 10 Years 100 Health Care Organization Clients #11 IN THE U.S. SNAPSHOT Joined AssuredPartners in 2017 – 11th largest Broker in the U.S. Keenan & Associates CA License No. 0451271

ANY QUESTIONS? AP Keenan and its employees or representatives do not provide personal accounting, tax, or legal advice. 15 Keenan & Associates CA License No. 0451271