Franklin Pierce School District Guide to Retirement Congratulations

Franklin Pierce School District Guide to Retirement Congratulations on Your Upcoming Retirement!

Retirement v. Resignation A resignation is not a retirement and is treated differently than a retirement, please make sure your retirement corresponds to the fact that you will be drawing a pension benefit immediately If you are unsure of retirement v. resignation visit the DRS web site or contact the Payroll Office at 253-298-3032 or [email protected]

Deciding On Your Retirement Date Your retirement date can impact your pension, COLA for next year, and benefits DRS has excellent information regarding different retirement scenarios, see examples at right Once you make your decision, be sure to put this date on your resignation/retirement form

Initiating a Retirement/ Resignation Once you know your retirement date, please submit the Notice of Separation to Human Resources This form is an InformedK12 form and can be found on our web site here: https://www.fpschools.org/departments/hum an-resources/forms-and-resources

Department of Retirement Systems Online The Retirement Planning Checklist is a great place to start your retirement planning process: https://www.drs.wa.gov/retirement-planning/checklist/ If you have not already, activate your online account. Your online account can help with: Quick estimate of your benefit Request an official estimate Review your service credit years And when ready, retire online

DRS Educational Seminars DRS has several options to learn more about retirement: Retirement Planning Seminars In person group seminars are held throughout the state on Saturdays from 9 am to 1:30 pm Topics include: Preparing for retirement Social Security Health Insurance VEBA How to Apply for Retirement Register at https://www.drs.wa.gov/retirement-planning/seminar/ or call 888-711-6676 Seminar Videos Seminar videos are available online at https://www.drs.wa.gov/life/retire/seminar/ Watch at your own convenience Topics include: Getting Ready for Retirement Health Care Social Security VEBA Overview

DRS Educational Webinars DRS has several options to learn more about retirement: DRS Online Webinars No need to register 30-minute presentation followed by 15-minute question and answer sessions Visit https://www.drs.wa.gov/education/webinar/ to view upcoming webinars Topics listed on right are examples of upcoming webinars

Should I Work After I Retire? DRS limits how many hours you can work for a covered employer A covered employer is an employer with a DRS retirement plan in effect Rules vary depending on the DRS plan If you exceed the limits of your plan, your pension check will be stopped Keep informed of any changes in the law that may impact your future options of working after retirement It is important to work with DRS to ensure retirement benefits not impacted If you wish to substitute after retiring, please indicate this on Notice of Separation Form

PEBB Health Insurance for Retirees PEBB, Public Employees Benefit Board, is administered by Washington State Health Care Authority PEBB retiree insurance may be available for retirees who had benefits while employed Retirees may have several options for medical at retirement, but you must know current and future eligibility requirements of each option Additional Information: https://www.hca.wa.gov/about-hca/public-employees-benefits-board-pebb-program

Eligibility for PEBB Health Insurance In general you must be a vested member and meet eligibility to retire from your retirement plan when your employer-paid coverage, COBRA coverage or continuation coverage ends Plan 1 and 2 members must immediately receive a monthly retirement plan payment or lump sum payment as allowed by the plan Plan 3 members are not required to receive a retirement plan payment or lump sum payment but must meet retirement eligibility requirements including being 55 years old with at least 10 years of service credit in their respective retirement plan

Enrolling in PEBB Visit https://www.hca.wa.gov/assets/pebb/51-0205-retiree-enrollment-guide -2022.pdf to view PEBB Retiree Enrollment Guide Tutorial available to assist with completing the Retiree Election Form (Form A): https://fortress.wa.gov/hca/pebbtutorials2/story.html Information on Completing the Retiree Forms: https://www.hca.wa.gov/employee-retiree-benefits/retirees/completing -retiree-forms

Vacation Cash Out at Retirement Generally, a 260 day employee who accrues vacation may cash out up to a maximum of 30 days, at their FTE, at retirement You must review your work agreement or employment contract for specific details If you are in a union, you should review your collective bargaining agreement for the terms of vacation buy back, if any Employees are limited to the amount of vacation cash out during the last two years of employment prior to retirement Keep in mind, some employees do not receive vacation, or a vacation retirement cash out at all Vacation will be paid out automatically upon retirement TRS/PERS Plan 1 only- Vacation paid at retirement is reported to DRS

Sick Leave Cash Out at Retirement Eligibility as specified in law TRS/PERS Plan 1 - can cash out at retirement or upon death but not resignation- RCW 28A.400.210(2)(a) TRS/SERS Plan 2 – 55 years old and 15 years of service credit in the plan (not district service)RCW 28A.400.210(2)(c) TRS/SERS Plan 3 – 55 years old and 10 years of service credit in the plan (not district service)RCW 28A.400.210(2)(b) Limited to 180 days maximum for a cash value at 4 days for 1 day of pay Send payroll a copy of your DRS letter which shows your retirement date in order to cash out sick leave

VEBA- Voluntary Employees’ Beneficiary Association VEBA Trust is a funded health reimbursement arrangement (HRA) plan Employee groups vote annually on whether to have retirement sick leave cash out funds go into a VEBA account If VEBA is chosen for cash outs, the funds are deposited into a tax-free VEBA account that is in your name If your bargaining group or work group selected VEBA and you don’t have a VEBA account, Payroll will send you a VEBA application kit As a retiree, you submit claims to VEBA to be reimbursed for your medical, dental, and vision premiums as well as other qualified health care expenses

Contact Information Department of Retirement Systems 1-800-547-6657 www.drs.wa.gov Deferred Compensation Program (DCP) 1-888-327-5596 www.drs.wa.gov/dcp PEBB 1-800-200-1004 www.pebb.hca.wa.gov Social Security Administration (SSA) 1-800-772-1213 www.socialsecurity.gov VEBA 1-888-828-4953 www.veba.org FPSD Payroll 253-298-3032 [email protected]

Disclaimer This guide is intended to provide general information relating to your upcoming retirement from the Franklin Pierce School District. Benefits are governed by specific provisions in collective bargaining agreements, School Board Policies and Procedures, and/or state or federal laws or regulations or other controlling sources. If you have questions or doubts about laws, rules, regulations, procedures or ramifications of the decisions you are making, you should first consult your attorney, accountant, tax advisor or any other person on entity you deem necessary. Any decision made by you in relation to this subject matter is your sole responsibility. The Franklin Pierce School District and its representatives, will not be liable for any decisions you make based on information provided.