Public School Employees Retirement System Understanding Your Benefits Public School Employees Retirement System A Guide to Understanding Your Benefits From the staff of . . . Michael J. Nehf Executive Director Introduction Basic Facts Contributions Normal Retirement Early Retirement Disability Retirement Death Benefits Beneficiaries Retirement Options Creditable Service Survivor Option and Benefit Factors Tables Frequently Asked Questions Personal Information Contact Information 1 2 3 4-5 6-7 8-9 10 11-13 14-19 20-21 22-23 24-26 27 28 Table of Contents iNTRODUCTION This handbook is designed to explain your benefits as a member of Public School Employees Retirement System (PSERS). Included are worksheets for you to calculate your possible future benefits. PSERS began in January 1970. The purpose was to provide a supplemental retirement plan for public school employees who did not belong to the Teachers Retirement System (TRS). This means that PSERS is intended as an addition to other retirement income. Members include bus drivers, food service workers, and maintenance or custodial personnel. Some managers in these positions are members of TRS. If you have questions about which system you are a member, please ask your personnel department. PSERS provides lifetime retirement benefits, disability benefits, and death benefits. These are available once you have enough years of service to qualify. In the case of any conflict between what is printed in this publication and the law, the law must take precedence. Page 1 Basic Facts Qualifications for Retirement The basic qualification for retirement from this system is to have a minimum of ten years of creditable service. With your ten years, you must also be: Age 65 for Normal Retirement, or Age 60 for Early Retirement. Creditable service is a term used by PSERS that includes not only your years of working but also any purchased time or prior service. This is explained in more detail later in this handbook. Vesting Once you have at least ten years of creditable service, you are considered vested. Vested status means you are eligible to receive a lifetime monthly benefit when you are at least 60 years old. If you leave PSERS service before you are age 60 and have 10 or more years to your credit, and you do not receive a refund of contributions, you may apply for and receive a monthly benefit beginning at age 60. Page 2 Contributions Each month you contribute $4 to PSERS. Contributions are deducted from your paycheck nine months of the year-- September through May. This means that you contribute a total of $36 per school year. How much do you contribute? 9 months X $4 per month = $36 per year These contributions can provide a supplemental retirement income for you and/or your beneficiary. This can be provided if you work the required number of years and reach the right age. With sufficient years of service, you may also apply for disability retirement. Your beneficiary may be entitled to a lifetime monthly benefit after your death. What is a supplemental retirement benefit? A supplemental benefit means that the benefit was intended to add to other retirement benefits. Very importantS! ometimes a PSERS employee is employed by more than one school system at the same time. In this case, you can only be reported to PSERS by one system. You should be reported by the school system that hires you first. It is your responsibility to inform the second system that you are also employed by another school. Page 3 Normal Retirement Normal Retirement begins at age 65. At age 65 or over, you may retire and draw a monthly benefit for the rest of your life if you have at least ten years of creditable service. There is an easy formula for determining your monthly benefit with a Normal Retirement. Multiply your years of creditable service times $13.50. Years of Creditable Service X $13.50 Remember! This formula and this chart are used if you are 65 or older and if you have at least ten years of creditable service. Page 4 Examples of monthly benefits 10 yrs 12 yrs 15 yrs 18 yrs 20 yrs 25 yrs 29 yrs 32 yrs 37 yrs 42 yrs X $13.50 X $13.50 X $13.50 X $13.50 X $13.50 X $13.50 X $13.50 X $13.50 X $13.50 X $13.50 = $135.00 = $162.00 = $202.50 = $243.00 = $270.00 = $337.50 = $391.50 = $432.00 = $499.50 = $567.00 Normal Retirement Examples Meet Inez Simmons Ms. Simmons has worked at Happy Valley Elementary School for 15 years. She is 65 years old. Question 1: According to the chart on page 4, what would her monthly benefit be if she retires at 65 with 15 years service? Answer: ______________ Question 2: How much did Ms. Simmons pay into the system in 15 years? Answer: ______________ Question 3: What if Ms. Simmons (at age 65) had 20 years of service? What would her monthly benefit be then? Answer: ______________ Question 4: How much did she pay into the system in 20 years? Answer: ______________ Question 5: If you retire at age 65 with 25 years of service, what will your monthly benefit be? Answer: _______________ Question 6: How many years have you worked under PSERS? Answer: ____________ Question 7: How much have you paid into the system? Answer: ______________ Remember: for all the questions above that ask how much is paid into the system, multiply the number of years by $36. Page 5 Answers: Question 1: $202.50 Question 2: $540.00 Question 3: $270.00 Question 4: $720.00 Question 5: $337.50 Early Retirement Early Retirement can begin at age 60. You must have at least ten years of creditable service. There is a reduction in benefits from age 60 to 65. The reduction is 1/2% for each month under age 65. This is the same as 6% per year. There are three multiples in this formula. Use the formula for Normal Retirement and then multiply by a reduction factor. Years of Creditable Service X $13.50 X reduction factor To estimate your early retirement benefit, multiply the maximum benefit at age 65 by the percent listed below for the age at which you want to retire. Look at the age., and follow down to the specific number of months. For example: if you will be 62 in January and you wish to retire on June 1st of that year, you will be 62 years and 4 months. Age 60 Age Reduction Year Month Factor 60............... 0 ...................1 ...................2 ...................3 ...................4 ...................5 ...................6 ...................7 ...................8 ...................9 ..................10 ..................11 .70 .705 .71 .715 .72 .725 .73 .735 .74 .745 .75 .755 Age 61 Age Year Month Reduction Factor 61............... 0 ...................1 ...................2 ...................3 ...................4 ...................5 ...................6 ...................7 ...................8 ...................9 ..................10 ..................11 .76 .765 .77 .775 .78 .785 .79 .795 .80 .805 .81 .815 Age 62 Age Reduction Year Month Factor 62............... 0 ...................1 ...................2 ...................3 ...................4 ...................5 ...................6 ...................7 ...................8 ...................9 ..................10 ..................11 .82 .825 .83 .835 .84 .845 .85 .855 .86 .865 .87 .875 Page 6 Age 63 Age Reduction Year Month Factor 63............... 0 ...................1 ...................2 ...................3 ...................4 ...................5 ...................6 ...................7 ...................8 ...................9 ..................10 ..................11 .88 .885 .89 .895 .90 .905 .91 .915 .92 .925 .93 .935 Age 64 Age Reduction Year Month Factor 64............... 0 ...................1 ...................2 ...................3 ...................4 ...................5 ...................6 ...................7 ...................8 ...................9 ..................10 ..................11 .94 .945 .95 .955 .96 .965 .97 .975 .98 .985 .99 .995 Early Retirement Examples Meet James Fellows Mr. Fellows has worked at Happy Valley Elementary School for 15 years. Unlike Inez, he wants to retire at 62 years and 4 months of age. If he were 65, he could use the formula and chart on page 4, but he is only 62 years and 4 months. How does he figure out his benefit? First--he needs to use the chart on page 4 to find out how much his age 65 benefit would be. The answer is that it would be $202.50. That is the age 65 benefit for 15 years of service. Next, look at the charts on page 6. Go to the column for age 62. Follow down the chart for age 62 and 4 months. Follow over to the reduction factor column. For age 62 years and 4 months, he would multiply $202.50 by .84. $202.50 (age 65 amount) X .84 $170.10 (age 62 and 4 months amount) Question: Mr. Fellows worked for 15 years. He leaves the school system with a monthly income guaranteed for his lifetime, and he will receive regular cost of living raises. For this benefit, how much did Mr. Fellows actually contribute to his account? Answer: He paid $36 per year for 15 years. That equals a total amount of $540. In just four months, he will collect more in monthly benefits than he put into the account. Page 7 Disability Retirement You You need at least 15 years to qualify for disability retirement. If you qualify for this benefit, your age is projected to age 65, so there is no reduction of benefits. You must be permanently and totally disabled for performing the job you have at the time you applied for disability retirement. Approval or disapproval of the application is based on the recommendation of three physicians on the PSERS Medical Board. You must be in working status when you file for disability retirement. Your personnel office certifies your employment. You must submit documentation showing that you are disabled. Medical information from your physician(s) and hospitals/clinics describing the condition in detail is required. You are responsible for getting this information to PSERS. Your school system also sends documentation on your condition. In addition, the school system sends your job description and an Employer's Disability Report. Social Security--If you are approved for Social Security disability, a copy of the approval notice should be sent to PSERS. Sometimes it is necessary for PSERS to require more medical information from qualified and independent experts. If this is necessary, these examinations are at the expense of PSERS. Page 8 Disability Retirement Example Meet Samuel Smith Mr. Smith has been driving a school bus for Happy Valley for the past 15 years. He is now 50 years of age. Unfortunately an old back injury has flared up, and his doctor says that the condition is permanent and he must stop driving. Since he has 15 years of service, he applies for disability retirement and is approved. This is how his retirement benefits stack up: 15 years X $13.50 = $202.50 Notice that there is no reduction for his age. Disability benefits do not reduce for retirement under age 65. You must be currently employed to apply for disability re- tirement. Disability retirement requires medical documentation. A Medical Board approves or disapproves applications. There is no age reduction or Early Retirement. If approved, benefits are based on age 65 benefits. If approved for Social Security disability, PSERS needs a copy of the Social Security approval letter. If approved for disability, there are earnings limitations for any work you do while on disability retirement. PSERS conducts periodic audits of disability retirees to de- termine continued eligibility and earnings limitations standards. Page 9 Death Benefits If your death occurs before retirement, a lifetime monthly benefit can only be paid to the living person or persons that you have named as beneficiary, if: (1) you have at least 10 years of service, and (2) you are at least 60 years of age. Monthly benefits cannot be paid to an estate or other non-living beneficiary. If you have your estate named as your beneficiary, a lump sum payment of your contributions, plus any interest earned, will be paid. Please read the section on beneficiaries carefully. If your primary beneficiary is not living, benefits will be paid to the contingent beneficiary. How much is the monthly death benefit? Benefits are paid according to the option you select at retirement. If your death occurs before retirement and selection of an option, your living beneficiary receives 1/2 of what you would have received if you had retired under Option A(b). What if I don't have 10 years or I'm under age 60? If you have less than 10 years and/or you are under 60 years of age, a refund of your contributions, plus interest is paid to your beneficiary or to your estate. In case of my death, what should my beneficiary do? Your beneficiary should contact the PSERS office and apply for any benefits that may be available. Page 10 Please read the section on Beneficiaries and Options for more information. Beneficiaries When to Name Beneficiaries When you first begin working for a school system and become a member of PSERS, you list beneficiaries on your membership application. Whenever life changing circumstances happen, you should review your beneficiaries and make changes as necessary. Life changing circumstances include marriage, death, divorce, birth of children, etc. If you need to change your beneficiary after you become a member of PSERS and before retirement, you can do one of the following: 1) go to our website, www.ersga.org, and print out the PSERS Change of Beneficiary form, or 2) if you do not have internet access, call PSERS to request a form. It is your responsibility to mail the form to PSERS. The form is not valid until received by PSERS. Primary and Contingent Beneficiaries You must name a primary and a contingent beneficiary. Primary and contingent beneficiaries are also called first and second beneficiaries. Primary and contingent beneficiaries do not share benefits. If you want two or more people named as primary beneficiaries, then list them all on the primary beneficiary line. If you want two or more people named as contingent beneficiaries, then list them all on the contingent beneficiary line. If you cannot get all the information on the line, write "see attached" on the line and write them on a separate piece of paper. Attach the paper to the form. Write in the margin -- "To Share and Share Alike." This shows that you intend for these beneficiaries to share benefits. Be very careful about listing "estate" as beneficiary. If you qualify to leave a lifetime monthly benefit to a beneficiary, this cannot be paid to an estate. There is more information about this in the following pages. Page 11 Beneficiaries during your working years While you are working, benefits that you may leave to a beneficiary change according to your age. Under age 60 While you are under age 60, your beneficiary receives a refund of your contributions plus interest if you should die in service. This is paid in a lump sum and not in lifetime monthly payments. If you have estate named as beneficiary during this time, a lump sum will be paid to your estate. If you have a person named as primary beneficiary, a lump sum will be paid to that person. If that primary beneficiary is deceased at the time this amount is paid, then the lump sum will be paid to the contingent beneficiary. Age 60 with less than 10 years of service If you are age 60 with less than ten years service, a lump sum of your contributions and interest will be paid to your beneficiary. The same rules as above apply in this case. Age 60 with 10 years of service Once you are age 60 with at least 10 years of service, you are eligible to leave a lifetime monthly benefit to a living person. (Remember that a monthly benefit cannot be paid to an estate or other non-living beneficiary.) If your primary beneficiary is not living, the monthly benefit is paid to the contingent beneficiary. If that beneficiary is deceased, a lump sum of your contributions and interest is paid to your estate. Page 12 Your beneficiary will receive 1/2 of the amount you would have received if you had retired under Option A(b). (For more information on options, please see the Retirement Options section.) Beneficiaries during your retirement years When you complete your retirement application, you name a primary and a contingent beneficiary again. If you choose a retirement option that leaves a monthly benefit after your death, the benefit will go to that person or persons named as primary. If the primary beneficiary is deceased when PSERS pays these benefits, only the check for the month of your death goes to the contingent. The contingent will not receive a monthly payment. (Remember that this is for the retirement years.) A will does not take precedence over the beneficiary you choose. Important: Be sure your beneficiary knows the option you choose when you retire so no benefits are lost or delayed. In case of the death of one of your beneficiaries, you must contact PSERS. At your death, your beneficiary must contact PSERS. Page 13 Retirement Options Once you choose an option and payments begin, you are locked into that plan unless you are unmarried at retirement. If you are unmarried at retirement, you may change to Option A or Option B if you marry after you are retired and if you make this choice within six months of the marriage. Your benefit will reduce, and you will leave a lifetime monthly benefit to a new spouse. A beneficiary's age is a factor in determining how much you can leave to a beneficiary. There are five options: Maximum Plan This is the largest amount you can receive. All examples shown in this book so far have shown the Maximum Plan. At your death, all payments cease except for the check for the month of your death, which is paid to your beneficiary or estate. Option A(a) This pays you a reduced amount for your lifetime. At your death, the same amount is paid to your primary beneficiary for life. If the beneficiary is deceased at the time of the retiree's death, all payments stop. Option A(b) This pays you a reduced amount for your lifetime. At your death, one-half of this amount is paid to your primary beneficiary for life. Option A(c) This pays you a reduced amount for your lifetime. At your death, your beneficiary receives an amount that you specified when you retired. Your beneficiary receives this amount for their lifetime. If the beneficiary is deceased at the time of the retiree's death, all payments stop. Option B This pays a reduced amount. At retirement, you choose a specific number of payments that you want paid even if your death occurs during that time. For example, if you choose that the payments continue for a five year period, and your death occurs after three years, the payments continue to your beneficiary for the full five year period. If you live beyond the period of time chosen, your beneficiary receives only the check for the month of your death. Page 14 Option Example: A(a) This option provides a reduced amount to the retiree and leaves the same amount to a beneficiary beginning at the death of the retiree. Meet Fred Smith He is 62 years old. He has 15 years service. His wife, Juanita, is 55 years old. He wants to choose an option that will leave his wife the same amount he receives in the event that he dies first. Remember! The first step is to find what the benefit would be at age 65. Remember! On the Survivor Option Factors table, once you find where the ages of the retiree and beneficiary meet, then look under the column for Option A(a) or A(b). Remember! The beneficiary's benefit begins at the death of the retiree. 15 yrs X $13.50 = $202.50 (age 65 amount) $202.50 X .82 (early ret. factor) = $166.05 (age 62 amount) This is the Maximum Plan Mr. Smith chooses Option A(a) Look at the Survivor Option Factors Table on page 22. Find the age of the member across the top of the page. Now find the age of the beneficiary in the far left column. Now follow along each number to the square where the column meets the row. For this example, we know that the member is 62, and his beneficiary is age 55. If we follow the chart, then we know that the factor for these two people is 75%. This means that the member will receive 75% (.75) of the Maximum amount allowed ($166.05) for his entire lifetime. He will leave that same amount to his beneficiary for her lifetime. Her benefit begins at his death. $166.05 X .75 = $124.54 Now we know that he will receive $124.54 each month until his death. After that, his beneficiary will receive $124.54 until her death. If Juanita is deceased when Fred dies, all payments stop. Page 15 Disability Retirement Option Example: A(b) This option provides a reduced amount to the retiree and leaves one-half of the retiree's benefit to a beneficiary beginning at the death of the retiree. Meet Suzanne Jones She is 65 years old. She has worked in the lunchroom for 20 years. Her husband, Joseph, is also 65 years old. She wants to choose an option that will leave to Jo- seph one-half of the amount she receives in the event that she dies first. Remember! This is Normal Retirement. No reduction for age. Normal Retirement begins at 65. Remember! On the Survivor Option Factors chart, once you find where the ages of the retiree and beneficiary meet, then look under the column for Option A(a) or A(b). Remember! The beneficiary's benefit begins at the death of the retiree. 20 yrs X $13.50 = $270.00 (age 65 amount) In this example, we don't have to use the Early Retirement chart, because Ms. Jones is already 65 years old. Ms. Jones chooses Option A(b) Look at the Survivor Option Factors Table on page 22. Find the age of the member across the top of the page. Now find the age of the beneficiary in the far left column. Now follow along each number to the square where the column meets the row. For this example, we know that the member and her beneficiary are both 65. If we follow the chart, then we know that the factor for these two people is 88%. This means that the member will receive 88% (.88) of the Maximum amount allowed ($270.00) for her entire lifetime. She will leave onehalf of that amount to her beneficiary for his lifetime. Joseph's benefit begins at Suzanne's death. $270.00 X .88 = $237.60 Now we know that Suzanne will receive $237.60 for her lifetime. If she dies first, then Joseph will begin receiving $118.80 (one-half her amount) for his lifetime. If Joseph is deceased when Suzanne dies, all payments stop. Page 16 Option Example: A(c) This option provides a reduced amount to the retiree and leaves a flat amount to the beneficiary be- ginning at the death of the retiree. Meet Mary Blanks She is 65 years old. She has worked in the lunchroom for 30 years. Her husband, Mark, is 66 years old. She wants to choose an option that will leave a flat monthly amount of $100 to Mark. Remember! This is Normal Retirement. No reduction for age. Normal Retirement begins at 65. Remember! On the Survivor Option Factors chart, once you find where the ages of the retiree and beneficiary meet, then look under the column for Option A(a) or A(b). Remember! The beneficiary's benefit begins at the death of the retiree. 30 yrs X $13.50 = $405.00 (Normal Retirement amount) Ms. Blanks is age 65 so there is no reduction. She wants to leave her husband a flat amount of $100.00 per month which will cover his health insurance premium after her death. This option is calculated differently. This is how it's done: Take the flat amount and divide by the Option A(a) factor for their ages. Ms. Blanks is 65 and her husband is 66. the Option A(a) Survivor Option Factor for them is 80%. $100 divided by .80 = $125.00 Now subtract $125.00 from her unreduced amount. Then add in the flat amount. $405.00--$125.00 + $100.00 = $380.00 Ms. Blanks gets $380.00 per month. At her death, her husband will receive $100.00 per month. If he is deceased at her death, all payments stop. Page 17 Option Example: B This option provides a reduced amount to the retiree for his or her lifetime. It is guaranteed to be paid for a specific num- ber of payments. If the retiree dies before that specified time, payments continue to the beneficiary for that specified time. All payments stop once the specified time is reached. If the retiree lives longer than the specified number of payments, the payments continue for his or her lifetime, but at death, the beneficiary receives the check for the month of death only. Payments may be guaranteed in five year increments. That is five, ten, fifteen years, etc. Meet Sally Jenkins She is 65 years old. She has 37 years of service. She wants to retire and guarantee that her benefit is paid for at least 15 years (180 months). 37 yrs X $13.50 = $499.50 Look at the Guaranteed Benefit Factors table on page 23. Follow down the left hand column to her age (65). Remember! The beneficiary's benefit begins at the death of the retiree. Follow across the table to the 15 year column. We can see that the factor for her is .8413. Multiply this factor (.8413) times the maximum amount allowed ( $499.50). $499.50 X .8413 = $420.23 Page 18 This means that Ms. Jenkins will receive $420.23 each month for her lifetime. These payments are guaranteed to be paid for 15 years. If Ms. Jenkins does not live 15 years, her payments will still be paid to her beneficiary. If she lives longer than 15 years, she will still continue to receive her payments. Facts About Options The Maximum plan pays the largest amount. All monthly payments stop at the death of the retiree except for the check for the month of death. Options A (a), A (b), and A (c) pay reduced amounts and leave a monthly benefit to a beneficiary for the beneficiary's lifetime. If you are unmarried at retirement, and then you marry, you may change your option. You can choose an option that leaves a benefit to a new spouse beginning at your death. This must be done within six months of the marriage. Retirement between the ages of 60 and 65 will result in a reduction of benefits. Keep your beneficiaries up to date! This is impor- tant during your working years and during retirement. Forms to change your beneficiaries are available from your school personnel office or from PSERS. The beneficiary must apply to PSERS for any bene- fits due at your death. Page 19 Creditable Service Creditable service simply means the sum total of all service time that you can use for a retirement calculation. If you purchased time or have prior service, this is added in your total creditable service. The more service you have credited to you, the higher your benefit will be. Please review the categories on the next page. Do any of these categories apply to you? If you have a question about any of these categories and think that you may be able to acquire any of this time, please call PSERS to get more details. You must purchase this time before you retire. Page 20 Paying Back a Refund Did you work for PSERS before and get a refund of your contributions when you left? If you did, after working again for two years, you can get credit for that refunded service by buying the service back. To find out how much that will cost, contact PSERS. Military Service If you are called into active duty while you are working under PSERS, you can purchase the time that you serve after you return to PSERS service. Within six months of your return, notify the PSERS Board of Trustees that you intend to buy that service. Request that PSERS send you an estimate of how much it will cost you to buy the service and the date payment is due. You will pay the employee contributions that you would have paid during the time you were gone. This payment will be due within five years or three times the length of service you are buying, whichever is shorter. Temporary Disability/Leave WithOut Pay If something in your job duties causes you to suffer a physical or mental injury, sickness, or disorder, you may purchase the time you were out if you purchase it within six months of your return to your job duties. You pay the contributions you would have paid if you had not been on leave, plus 4% interest. You can buy up to 12 months in a five year period. Your school system must certify the cause of the disability. Prior Service Prior service means any service between July 1, 1945 and June 30, 1970. This service can be applied free of charge if the prior service added to your current service equals at least 10 years. Contact your school system for certification. TRS Service Teachers Retirement System of Georgia (TRS) service is not creditable under PSERS. However, any current member of PSERS who was previously a member of TRS and at the same time also held a position as a public school employee may make a written request to purchase any eligible service with PSERS. See the example below. EXAMPLE: Let's say that Jane Smith has been a bus driver (under PSERS) for 15 years. For two years she also worked as a paraprofessional under TRS. After stopping her work as a para-professional, she got a refund from TRS. Now she can purchase her bus driver time and apply it to her years of service with PSERS. Service that counts . . . Page 21 Member's Age 60 years old 61 years old 62 years old 63 years old 64 years old 65 years old Op. A(a) Op. A(b) Op. A(a) Op. A(b) Op. A(a) Op. A(b) Op. A(a) Op. A(b) Op. A(a) Op. A(b) Op. A(a) Op. A(b) Beneficiary's Age 55 78% 87% 77% 87% 75% 86% 74% 85% 72% 84% 70% 82% 56 79% 88% 77% 87% 76% 86% 74% 85% 73% 84% 71% 83% 57 79% 88% 78% 87% 77% 87% 75% 86% 74% 85% 72% 83% 58 80% 89% 79% 88% 77% 87% 76% 86% 74% 85% 73% 84% 59 81% 89% 80% 88% 78% 88% 77% 87% 75% 86% 74% 85% 60 82% 90% 80% 89% 79% 88% 78% 87% 76% 86% 74% 85% 61 82% 90% 81% 89% 80% 89% 78% 88% 77% 87% 75% 86% 62 83% 91% 82% 90% 81% 89% 79% 88% 78% 87% 76% 86% 63 84% 91% 83% 90% 82% 90% 80% 89% 79% 88% 77% 87% 64 85% 92% 84% 91% 82% 90% 81% 89% 80% 88% 78% 88% 65 86% 92% 84% 91% 83% 91% 82% 90% 81% 89% 79% 88% 66 86% 92% 85% 92% 84% 91% 83% 90% 82% 90% 80% 89% 67 87% 93% 86% 92% 85% 92% 84% 91% 82% 90% 81% 89% 68 88% 93% 87% 93% 86% 92% 85% 91% 83% 91% 82% 90% 69 89% 94% 88% 93% 87% 93% 86% 92% 84% 91% 83% 91% 70 89% 94% 88% 94% 87% 93% 86% 92% 85% 92% 84% 91% Page 22 Survivor Option Factors Table Guaranteed Benefit Factors These factors are used for Option B. These factors are used for Option B. Age 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 These factors are used for Option B. 5 yrs = 60 mos .9945 .9939 .9932 .9926 .9917 .9909 .9899 .9889 .9877 .9865 .9853 .9837 .9820 .9800 .9778 .9754 .9725 .9694 .9657 .9616 .9570 .9518 .9458 .9392 .9317 .9232 .9137 .9029 .8909 .8775 .8626 .8462 .8280 .8083 .7866 .7632 10 yrs = 120 mos 15 yrs = 180 mos .9795 .9773 .9749 .9725 .9698 .9669 .9637 .9602 .9563 .9522 .9476 .9425 .9367 .9303 .9232 .9154 .9066 .8970 .8863 .8746 .8616 .84776 .8320 .8152 .7971 .7776 .7568 .7346 .7111 .6865 .6609 .6344 .6071 .5793 .5513 .5230 .9570 .9532 .9488 .9440 .9388 .9332 .9271 .9206 .9134 .9057 .8972 .8879 .8777 .8666 .8544 .8413 .8270 .8117 .7951 .7775 .7588 .7390 .7181 .6963 .6735 .6501 .6259 .6013 .5762 .5510 5256 .5004 .4753 .4506 .4263 .4025 These factors are used for Option B. Page 23 Frequently Asked Questions What happens if I go back to work after retirement? Any retired public school employee returning to work with a school system in Georgia will not have benefits suspended while reemployed; however, if that employee meets the requirements for membership, he or she must again become a contributing member of PSERS. Disability retirees of PSERS may not go back to work for the school system in the same type position from which they retired. When should a retirement application be sent to PSERS? Remember 30 / 90. A retirement application should be in the PSERS office at least 30 days before retirement. PSERS cannot accept it if it is more than 90 days before retirement. When does retirement begin and how are checks sent? Retirement always begins on the first of a month. Checks are mailed or directly deposited into your bank account on the last working day of the month. How do I get a retirement application? You can download an application from our website at www.ersga.org, or contact your school system, or call PSERS. Complete the forms and give them to your school personnel to certify your time. Check to make sure that the forms are mailed to PSERS. What if my beneficiary dies? If you are retired, you should contact PSERS. If you are working, you should complete a Change of Beneficiary form. You can get this from your school system. What should my beneficiary do if I die? Your beneficiary should contact PSERS. Make sure that your bene- ficiary has all the contact information in the event of your death. Page 24 Frequently Asked Questions What does vested mean? Vested means that you have ten years of creditable service. You are then eligible for a lifetime benefit if you are at least 60 years of age. What if I die before I'm vested? In this case, your beneficiary or estate would get a refund of your contributions and interest. What about taxes? Your retirement pay is subject to federal and state income tax. Withholding forms are sent to each retiree. A 1099R is sent each year to identify taxable retirement benefits. Can PSERS members use forfeited leave toward retirement? The answer is no. This is not available in PSERS. What if my retirement check is not enough to cover my health insurance? In this case, the health insurance department bills you directly. Can I purchase or transfer out of state service? No, this is not available. Please read the section on Creditable Service for an explanation of what is available. Does PSERS carry life insurance for me? No, this is not available; however, your individual school system may have benefits available. Can I contribute more than $4 per month? No, not into PSERS. Some school systems have other contribution plans that you may participate in. You may also choose to have an individual IRA or other such retirement account. Page 25 Frequently Asked Questions Do we get any Cost of Living Adjustments in benefit checks? Yes. There is an immediate 1.75% increase. After that, you will receive 1.5% twice a year. This is shown in the checks received at the end of January and July. What is the earliest age a PSERS member can retire? You may take Early Retirement between the ages of 60 and 64 and 11 months; however the benefits amount is reduced. Please read the section on Early Retirement for more details. Normal Retirement is at age 65. Please read the section on Normal Retirement for more details. Remember that Early Retirement and Normal Retirement require at least 10 years of creditable service. What are the deductions that come out of my check? There are only 4 deductions: federal taxes, state taxes, health insurance, and dental insurance. If you do not carry health insurance or dental insurance with PSERS, then those deductions are not made. For your convenience, you can use the next page to keep track of some of your personal information. If you are interested in a Living Will or a Durable Power of Attorney for Health Care, you can get free copies of these documents from the Department of Aging, a division of the Department of Human Resources. Download and print the copies and complete the information. You should keep these with your will and other important papers. You can download a Living Will and a Durable Power of Attorney for Health Care at www.aging.dhr.georgia.gov. This website also gives you information on these documents. Page 26 My Personal Information (If you choose to do so, you may use this page to record some of your personal information. Keep this workbook private.) Name ___________________________________________________________ Address _________________________________________________________ Phone ______________________ School System/contact information __________________________________ _________________________________________________________________ Creditable Service _________________________________________________ I have a will and it's located at: _______________________________________ I have a Living Will: yes _____ no_____ I have a Durable Healthcare Power of Attorney: yes _____ no_____ My beneficiaries are: _________________________________________________ ___________________________________________________________________ I designated these beneficiaries on : ____________________________________ Health Insurance / Dental Insurance information: ___________________________________________________________________ ___________________________________________________________________ Other insurance information: __________________________________________ ___________________________________________________________________ ___________________________________________________________________ Other benefits from my school system:__________________________________ ___________________________________________________________________ _______________________________________________________________ Page 27 Contact Information PSERS offices are located at: Two Northside 75 Suite 300 Atlanta, GA 30318-7778 404-350-6300 (metro Atlanta area) 1-800-805-4609 (outside metro Atlanta) Or visit our website at www.ersga.org Page 28 www.ersga.org