WRS Employee Benefits Seminar - sauksd.entest.org · December 13, 2018 21 Estimated Social Security = $782 Monthly Annuity Payment Options Regular Accelerated Payments To Age 62*

December 13, 2018 1

WRS Employee Benefits

Seminar Nearing Retirement

Outreach and Education- Members Service Bureau

Presenter – Lynn Erickson, Benefits Specialist

December 13, 2018 2

Wisconsin Retirement System

Department of Employee Trust Funds

(ETF)

etf.wi.gov

Administers Benefits For WRS

Members

State of Wisconsin Investment Board

(SWIB)

swib.state.wi.us

Manages and Invests WRS Assets

December 13, 2018 3

Department of Employee Trust Funds (ETF)

• ETF administers 11 benefit programs including Retirement, Health and Life

Insurance, and Disability benefits

• Statistics – 09/30/18

• WRS Assets $109.4- billion

• WRS Annuity Payroll $5.2-billion

• Employers About 1,500

• Members 605,049

December 13, 2018 4

You’ll Walk Away With … • An overview of the Wisconsin Retirement System (WRS) including:

• Saving money for your retirement

• Survivor benefits and beneficiary designation

• Retirement eligibility & benefits

• Methods to enhance your retirement

• Insurance – Life & Health

• Returning to work after retirement

• Next Steps and Resources

December 13, 2018 5

Saving Money for Retirement • A percentage of each paycheck has been set aside

for retirement

• Pre-tax contribution

• Employer match is based on employment category

• You can enhance your retirement benefit with:

• Additional contributions

• Buying certain service

December 13, 2018 6

How Your Contributions are Invested

Core Fund

• Automatic enrollment for all employees

• Diversified portfolio

• Guaranteed base payment when retired

• 5-year smoothing

Core + Variable Fund • Variable enrollment is optional

• Variable Fund is a riskier investment

• No guaranteed base payment. Annuity could

drop below what you started with

• 100% Stocks

• No smoothing

• You can cancel and be in Core only

December 13, 2018 8

Active Employees

Survivor Benefits

100%

Your contributions Employer Match

+ interest

Inactive Employees

Your contributions Employer Match

50%

+ interest

December 13, 2018 9

Who ETF Pays… • Not paid according to

your will

• Paid according to most

recent beneficiary

designation

• No form on file: ETF follows

Standard Sequence Pick up today or print from our

website:

etf.wi.gov/publications.htm

December 13, 2018 10

Standard Sequence

Surviving Spouse

Children (Natural or Adopted)

Parent(s) Brother(s)

and Sister(s)

Estate


Update Your Beneficiaries!

Marriage

Children

Grandchildren Death

Divorce Examples of why you may

need to update your

beneficiary.


Retirement Eligibility – Must Have All 3

Vested in

WRS

Met minimum

retirement age

(50/55)

Terminated ALL

WRS employment


50%

Not Vested

Your contributions Employer match

Vested in the WRS 100%

You receive your employer’s matching contributions at retirement

You are vested if:

• You enrolled in the WRS

before July 1, 2011 or

• You accrued 5 years of

creditable service

Vested

100%


Applying for Retirement

6-12 months prior No earlier than 90 days prior

1 Call or go online for

estimate/application

packet. 2 Review and contact

ETF with questions

or to schedule an

appointment. 3 Submit application.

Individual, Group, Online


Estimates and Application


We compare two calculations:

Calculating Your Benefit

Money

Purchase • Account balance

• Age

Formula • Service

• 3 Highest years of

earnings

vs. You get paid

the higher of

the 2


Money Purchase Calculation

• Money Purchase balance at

retirement

• Money Purchase factor –

• age 56 years, 4 months

• “For Annuitant’s Life Only” annuity

option

$215,000.00

X 0.00563

$1,210


*Can be calendar or fiscal years **General/Teacher Category *** Subject to formula maximum

Formula Calculation • Final Average Earnings - Monthly

• 3 highest earnings years*

• Formula Factors**

• WRS Creditable Service

• Subtotal #1

• Age Reduction Factor**

• Subtotal #2

• Variable Excess or Deficiency

• “For Annuitant’s Life Only” Option

$3,652

Pre-2000 Post-1999

X 0.01765 X 0.016

X 13.35 X 13.91

$1,673

X 0.885

$1,481***

+ 24

$1,505


Monthly Annuity Payment Options • For Annuitant’s Life Only

• Life w/60 Payments Guaranteed

• Life w/180 Payments Guaranteed

• 75% Continued to Named Survivor

• 100% Continued to Named Survivor

• Reduced 25% on Death of Annuitant or Named Survivor

• 100% Continued to Named Survivor with 180 Payments Guaranteed

$1,505

$1,500

$1,465

$1,392

$1,357

$1,431

$1,356


Retiring Before 62? There are accelerated

payment options


Estimated Social Security = $782

Monthly Annuity Payment Options Regular Accelerated

Payments

To Age

62*

After Age

62

For Annuitant’s Life Only $1,505 $2,021 $1,239

Life with 60 Payments Guaranteed $1,500 $2,018 $1,236

Life with 180 Payments Guaranteed $1,465 $1,989 $1,207

75% Continued to Named Survivor $1,392 $1,928 $1,146

100% Continued to Named Survivor $1,357 $1,900 $1,118

Reduced 25% on Death of Annuitant or Named Survivor $1,431 $1,961 $1,179

100% Continued to Named Survivor with 180 Payments $1,356 $1,899 $1,117

*If annuitant dies before age 62, temporary annuity is paid until annuitant would have reached 62


Annuity & Taxes • State & Federal – Taxed, ETF can

only withhold for Wisconsin

• No Medicare or Social Security

• Change tax withholding status at

anytime

• 1099-R sent in January

Run sample calculations

using our online tax

calculator at etf.wi.gov


Adjustments to Your Annuity Your monthly payment may be adjusted

annually based on investment performance

• Adjusted May 1st Payment

• Gains and/or losses determine the

adjustment

• Core Fund: Guaranteed base payment.

It can’t go below that

• Variable Fund: No guaranteed base

payment. Can go below where you start


Purchasing Creditable Service

• Forfeited Service: Purchase of service time worked previously at a WRS

employer – a separation benefit was taken and account was closed

• Other Government Service : Purchase of service time worked previously

at a non-WRS government employer at the federal (including military),

state or local level

(Please contact ETF for more information on buying creditable service)


Additional Contributions • Voluntary, after-tax, additional contributions to supplement retirement

benefits

• Can be used for creditable service purchases (Forfeited/Qualifying)

• Payroll deduction or direct contributions

• Deposited Core or Core/Variable

• ET-2123 brochure


Estimates and Application (Form ET-4301)

- with additional contributions benefit options


Wisconsin Public Employers Group Life Insurance

Automatic

continuation

Premiums

deducted

from annuity until age 65


Group Life Insurance Certification of Coverage


automatic continuation allowed to re-enroll

State & UW

Local with coverage through Group

Health Insurance

file verification of coverage with employer file health insurance application

Local without coverage through Group

Health Insurance

may be eligible for LAHP

Health Insurance


Local Annuitant Health Plan Local without State Group Health Insurance Program

Local Retirees

Spouses

Dependents

1 Open Enrollment

Apply within 60 days of retirement

2 Second Enrollment

When you become eligible for Medicare


Returning to Work

At termination: no future employment agreement with a WRS employer

Valid employment termination & 75-day

separation

2/3 of full-time: “full-time” depends upon your

employment category


To Do: Minimum retirement age? Call or go online for an

estimate.

Keep your beneficiary designation up to date.

Consider additional contributions and other savings to

supplement your retirement.

Sign up for our live interactive webinars.

Stay connected. Sign up for ETF E-mail Updates

and follow us on Twitter (@WI_ETF).


Other ways to learn…

etf.wi.gov/member

_education.htm

Face-to-Face • regular visits statewide

• daytime group retirement

appointments - retirement

packet required

• Individual appointments

Brochures • obtain a brochure to learn

about other topics that

weren’t covered today

• more specific and in-depth

brochures available online

eLearning • live interactive webinars

• educational video series

• follow us on Twitter

@WI_ETF

• get email updates


Thank you

etf_wi etf.wi.gov 608-266-3285

1-877-533-5020 ETF E-mail Updates

Documents

WRS Employee Benefits Seminar - sauksd.entest.org · December 13, 2018 21 Estimated Social Security = $782 Monthly Annuity Payment Options Regular Accelerated Payments To Age 62*