1	Classified Retirement Seminar March 2006
2	What is an Annuity? An annuity is a paycheck after retirement. It is paid by the Wisconsin Retirement System for the rest of your life. Anyone with sufficient credits is eligible to receive an annuity.
3	Annuity vs. Lump Sum 2005 If Annuity is less than $143.00 per month Lump Sum If Annuity is between $143.00 and $289.00 Either Lump Sum or Monthly Annuity If Annuity is $289.00 or more Monthly Annuity These figures increase annually
4	Formula Calculation Monthly average of three highest years Times multiplier: (1.765% , 1.6%) Times number of years of service Equals Monthly Annuity Maximum of 70% of final average salary
5	Money Purchase Option Total Account Value times a factor based on Life Expectancy Equals money purchase amount (years of service and final average earnings do not apply) Will automatically apply if more than formula calculation.
6	Full Retirement Benefit Age 65 OR Age 57 (or older) with 30 years of creditable service
7	Example
8	Age Reduction Factor Based on age and years of WRS Service Age 55 with 10 years of service…..64.8% Age 55 with 25 years of service….84.0% Age 55 with 30 years of service….90.4% Age 57 with 10 years of service….74.4% Age 57 with 25 years of service….93.6% Age 57 with 30 years of service….100%
9	Accelerated Payments Available if under age 62 WRS pays a higher amount prior to age 62 WRS reduces at age 62 Social Security starts at 62 WRS (before age 62) equals WRS (after age 62) plus Social Security
10	Add to your retirement Buying back forfeited service (terminated and withdrew money) Buying back qualifying service Hired before 1/1/73, first 6 months not subject to WRS Buying back other government service Military Service (Active) (one year of Military Service for each 5 years of WRS) Maximum = 4 years of additional WRS Submit Form DD214 (Honorable Discharge Papers)
11	Annuity Options Annuitants Life Only Life with 60 Payments Guaranteed Life with 180 Payments Guaranteed 75% Continued to Named Joint Survivor 100% Continued to Named Joint Survivor Reduced 25% on Death of Annuitant or Named Joint Survivor 100% Continued to Named Survivor with 180 Payments Guaranteed
12	Taxation
13	Will my retirement check increase? Fixed Retirement Fixed dividend applied on May 1 (if applicable) First year is prorated Will never be less than the “base” annuity Variable Retirement Variable adjustment is applied to the variable portion on May 1 Can increase or decrease
14	Fixed Trust Fund
15	Variable Fund
16	Yes, You can enroll in Variable Complete a variable election form, available in Human Resources Effective on January 1, the following year 50% of future contributions will be deposited in the Variable Fund 50% of contributions will continue to be deposited in the Fixed Fund
17	Calculate your retirement Calculate your own by visiting the ETF website: http://etf.wi.gov/
18	If you die before you retire…. Death Benefits are paid to your beneficiary Includes employee share and the state match As long as you are an active employee If you are over age 55: Your beneficiary would be able to select a joint survivor option Could be calculated as a retirement
19	Permanent and Total Disability Must meet creditable service requirements Must be totally and permanently disabled Must not have reached normal retirement age Must not be gainfully employed 2 Physicians must certify total disability
20	Health Insurance Unused sick leave credits pay for health insurance premiums Premium from annuity check when credits are exhausted Dual choice opportunities Premiums reduce when eligible for Medicare If spouse is state employee, you can use both accounts Supplemental Sick Leave (sick leave enhancement)
21	Sick Leave Conversion Hourly Rate of pay Times Hours of sick leave (including supplemental hrs) Equals amount of certified sick leave credits
22	Supplemental Sick Leave Must have 15 years of adjusted continuous service Will match up to 52 hours for each year, 1 – 24 Will match up to 104 hours for each year 25 + Matching hours vary for Protective 500 hours credited for catastrophic illness If 500 hours are used within 3 years of retirement For one catastrophic illness These hours are not matched
23	Calculation of Supplemental SL
24	2006 Monthly Insurance Premiums
25	State Group Life Insurance Provides death benefit after retirement: If you have coverage in each of 5 years And are eligible to receive an immediate annuity No premium after age 65 if retired Death benefit decreases 75% of Basic Coverage while age 65 50% of Basic Coverage age 66 and older May use to pay for Long Term Care Insurance May be possible to convert to pay health insurance premiums after age 66, if sick leave credits are gone
26	Other Benefits
27	Employment after Retirement Must be a good faith termination May return to work with a WRS employer after a 30 day break in service May work for another employer Will not affect your WRS annuity May affect your social security These laws may change!
28	Supplemental Retirement Tax Shelter Annuity (403b) 2006 Maximum = $15,000.00 Plus $5,000.00 if > 50 yrs Plus $3000.00 excess deferrals* *subject to past catch up contributions Wisconsin Deferred Compensation (457) 2006 Maximum = $15,000.00 Plus $5,000.00 if> 50 yrs
29	What to do when I’m ready to retire UWEC or ETF Start planning long before retirement Start the process early, 6 months to 1 year before retirement Make an appointment with UWEC HR Office, or with ETF Social Security Ask questions about social security earnings Ask questions about Medicare
30	HELP Human Resources Office – UW Eau Claire Donna Weber, Interim Director weberdj@uwec.edu, (715)836-3871 Diane Willer, Benefits Specialist willerdm@uwec.edu, (715)836-6007 Department of Employee Trust Funds Toll free: (877)533-5020 website: http://etf.wi.gov/