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Ready to Retire

Agenda

•Your Retirement Checklist

•PERA Retirement•PERA Paperwork•After Retirement

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OBJECTIVES

•PERA benefit options•Paperwork•Payments & COLA•myPERA

YOUR RETIREMENT CHECKLIST

•Talk to your employer•Health Insurance•Medicare•Social Security•Budget/Financial planning

Handout:Resources and Contacts

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YOUR PERA PENSION

•Lifetime pension•Governed by law•Professionally managed

•Replaces a portion of your income

Social Security

30%

PERA51%

Income Gap19%

30 Years

VALUE OF PUBLIC SERVICE – GENERAL PLAN

Social Security

30%

PERA34%

Income Gap36%

20 yearsComparing*

Social Security

30%

PERA17%

Income Gap53%

10 years

*At normal retirement age 66** Social Security percentage used for illustrative purposes only

**

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VALUE OF PUBLIC SERVICE – POLICE & FIRE PLAN

Comparing*

*At normal retirement age 55

PERA60%

Income Gap40%

20 Years

PERA90%

Gap10%

30 Years

VALUE OF PUBLIC SERVICE – CORRECTIONAL PLAN

*At normal retirement age 55

PERA38%Income

Gap62%

20 Years

*At retirement age 62

Social Security

20%

PERA51.3%

Income Gap

28.7%

27 Years

** Social Security percentage used for illustrative purposes only

**

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INITIAL DECISIONS

•Retirement date?•Collect now or later?•Lifetime or lump-sum?•Single or Survivor option?•Taxes and bank account?

PERA Retirement

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ARE YOU RETIRING?

M.S. 353.01 sub. 11a •Terminate/Retire from

public employment•No public service

for 30 days•No written or verbal

agreement to return to public service

Includes: sub lists, part-time, volunteer, independent contractors

DECISION #1 – RETIREMENT DATE

• The last day for which you are paid as a public employee, or

• The day your authorized leave of absence ends.

• Can begin the first day of the month following your termination from public employment, or

• If deferred, the month you want to begin.

Termination Date Benefit Effective Date

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Retirement Date First Payment

DECISION #2 – COLLECT NOW (OR LATER)

DECISION #2 – COLLECT (NOW OR) LATER

Defer your pension•Collect at future date•No reductions at normal retirement age

•Must start by age 72

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DECISION #3 - LIFETIME OR LUMP-SUM

Lifetime monthly pension or one-time refund

SINGLE LIFE BENEFIT

Single life – Benefit TBD•Largest monthly pension•Calculated from factors•Paid every month of your lifetime until death•Account closes upon death

•Remaining contributions, if any, paid to beneficiary

FINAL

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SURVIVOR BENEFIT OPTION

FINAL

Survivor option - Benefit TBD•Monthly pension reduced based on age of survivor

•Can choose any one person•Survivor’s lifetime benefit begins month after death of member

•Bounceback

DECISION #4 - BENEFIT OPTIONS

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$20,000 ÷ $200 increase = 100 months(about 8 years to recover cost)

• You repay $20,000 to restore service

• Your benefit increases by $200

Example – Time to Recover Cost

You are then ahead $200 each month for your lifetime

REFUND REPAYMENT

DECISION #5 – TAXES AND BANK ACCOUNT

Decide now—can change later.•Tax withholding•Direct deposit

•Savings or checking?

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PERA Paperwork

mnpera.org/retirement

TIMELINE

Retirement Application

Verification of Termination

Member & Survivor ID

60 – 90 daysWhen you notify

employer

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PERA APPLICATION

PERA APPLICATION

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PERA APPLICATION

VERIFICATION OF TERMINATION

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VERIFICATION OF TERMINATION

After Retirement

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WHAT HAPPENS NEXT

•Confirmation letter•Payments•Cost-of-living-adjustment (COLA)

www.mnpera.org

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myPERA Activation

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myPERA ACTIVATION

Active PERA Member

myPERA

Retired PERA Member

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myPERA RETIREMENT CALCULATOR

myPERA

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RECAP

•Paperwork timeline•No public servicefor 30 days

•Stay informed•PERA website•myPERA•Legislative updates•Newsletter Bryan Rantala Photography

Changes to PERA's plans, including benefit provisions and contribution rates, are made through the introduction and passage of legislation by the Minnesota Legislature.

PERA is governed by Minnesota Statutes; especially chapters 11A, 353, 353A, 353D, 353E, 353F, 353G, 356 and 356A.

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Wrap-up and questionswww.mnpera.org

651.296.74601.800.652.9026

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