ERS retiree newsletter, 2005

Fall/Winter 2005

Employees' Retirement System of Georgia

ERS Retiree Newsletter
NEW CHECK FORMAT! Effective January 1, 2006, you will notice a change in the appearance of your check stub or advice. Please see the sample below:

Employees' Retirement System of Georgia CHECK-STUB FOR 12/31/2005

JOHN Q RETIREE

Pension ID: 000000

Fed Tax Married tax table with 2 allowances GA Tax Married one income with 2 allowances

Payroll Items for 12/31/2005

Current Payroll Check No. 00000000103

Current Year's Total for 2005

Gross Benefit Amount Federal Tax Georgia Tax Health Insurance Net Benefit Amount

1,800.00 200.00 80.00 119.84
1,400.16

21,600.00 2,400.00
960.00 1,438.08 16,801.92

This check represents payment for the month of December 2005. We must have your correct mailing address on file at all times. If your address changes, please notify our office.

Two Northside 75, Suite 300 - Atlanta, GA 30318-7778 1

AFTER RETIREMENT

Cost of Living Adjustments (COLAs)
Subject to the approval of the Employees' Retirement System (ERS) Board of Trustees, COLAs are granted twice a year; with the January 31st check and the July 31st check. You must be retired for 7 months to be eligible for COLAs. You must be at least age 45 to receive COLAs. There is no age requirement for disability retirees.
If you retired early under age 60 and with more than 25 years of service but less than 30 you are not eligible to receive a COLA until you either turn 60 years old or would have 30 years service had you continued working, whichever is earlier.

Making Changes

ADDRESS AND TAXES Changes for your address, federal taxes, and State of Georgia taxes can be made at any time. (Changes received by ERS after the 18th of the month may not be processed until the next month.)
DIRECT DEPOSIT After any change in your direct deposit, the first check will be mailed to your home on the last business day of the month. Direct deposit should start with your next month's benefit. (Changes received by ERS after the 18th of the month may not be processed until the next month.)
HEALTH INSURANCE Any changes to your health insurance coverage must be submitted to State Health Benefit Plan (SHBP) directly. Any questions regarding your coverage should also be directed to SHBP. The retiree helpline for health insurance is 1-800-586-9288. The new health insurance rates will be applied to your December 31, 2005 monthly retirement check for January 2006 coverage.

OPTIONS Once you have retired, you can only change your retirement option under very specific circumstances. - If you are unmarried at the time of retirement, you
may choose an option with your new spouse as beneficiary; however, in some instances, you must make this choice within 6 months after your marriage.
BENEFICIARIES - Primary Beneficiary(ies) If you chose the
Maximum Plan or Option 1 at retirement, you may change your Primary Beneficiary(ies) at any time. There are strict limitations under any other retirement option choice. - Secondary Beneficiary(ies) Secondary or Contingent beneficiaries may be changed at any time, regardless of your retirement option choice. - Group Term Life Insurance Both Primary and Secondary beneficiaries may be changed at any time. - Beneficiary changes take effect when ERS receives the changes in writing.

Service Retirement Earnings Limitations
All retirees, except disability retirees, who are re-employed by an employer participating in ERS are limited to no more than 1,040 hours of work during a calendar year. If you work more than 1,040 hours, your retirement allowance will be suspended for the remainder of the calendar year.

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In the case of any conflict between what is printed here and the law, the law must take precedence.

Medicare Prescription Drug Benefit
Q. WHAT IS THE MEDICARE PRESCRIPTION DRUG BENEFIT? A. It is the new Medicare insurance program that provides prescription drug coverage for people with
Medicare Part A and/or B.
Q. HOW CAN I LEARN MORE? A. The Social Security Administration (SSA) has developed an
application form and process to determine eligibility. If you feel you may qualify, go to the SSA web page at www.socialsecurity.gov and click Medicare Outreach, or call or visit your local SSA office for more details. The national toll-free number is 1-800-772-1213.
Q. WHAT ABOUT FINANCIAL ASSISTANCE FOR PRESCRIPTION DRUG EXPENSES? A. There is a financial subsidy from the Social Security Administration (SSA), for qualifying individuals
called the "Extra Help" benefit. Go to the SSA web page at www.socialsecurity.gov and click Medicare Outreach. You will find a fact sheet entitled "Help Available to Pay Costs of Medicare's New Prescription Drug Program."
Georgia Higher Education Plan
Perhaps you have children, grandchildren or other special young people in your life who will one day attend college. It's never too late to lend a helping hand by contributing to a savings plan for higher education. The Georgia Higher Education Savings Plan (GHESP) is an excellent choice to consider. Attractive features include: Georgia state income tax deduction, estate benefits, and a range of investment options. Additionally the GHESP has low costs so more of your investment can go toward education expenses. More good news is that your GHESP savings can be used at almost any college in the U.S. Visit www.gacollegesavings.com or call 1-877-424-4377 for more information.
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Contact Information

ERS General Office 404-350-6300

ERS Financial Services Fax

ERS Toll Free

800-805-4609

Web Site

Peach State Reserves 401(k) & 457 800-701-8255

404-350-6308 www.ersga.org

FIRST CLASS MAIL U.S. POSTAGE PAID
ATLANTA, GA PERMIT NO. 456

SEASONS GREETINGS
AND
HAPPY NEW YEAR
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