Transcript Florida Retirement System

MIAMI DADE COLLEGE
Retirement…
The beginning of
your new life!
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TOPICS
 Continuation of MDC Benefits
 Medicare Benefits
 FRS - Health Insurance Subsidy (HIS)
 MDC Subsidy (IRHBS)
 Leave Settlement:
 Bank Point, Sick, &/or Vacation
 Distribution Options
 FRS DROP End Confirmation
 Reemployment after Retirement
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Continuation of MDC Benefits
Health – AETNA Healthcare
• HMO - Network only
• POS - In & Out of Network
• PPO - Out of Florida Service Area
Dental - CIGNA
• DHMO - In-network services only
• PPO - In and Out of Network services
Term Life – Lincoln Financial Group
• Basic Life - One time annual Base Salary
(rounded to the next lower hundred - Rate
based on age)
• Optional Life (if enrolled prior to retirement) –
One time annual Base Salary (rounded to the
next lower hundred - Rate based on age)
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Continuation of MDC Benefits
 Family Protector – Lincoln Financial Group
 Legal Services - ARAG Insurance
 Tuition Waiver - MDC
 Group Benefits Election Form
• No enrollment in group health plans allowed
once benefits are waived
 FRS Insurance Payroll Authorization Form
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Medicare Basics
Eligibility – Age 65
Medicare Part A – Hospitalization
• Hospital only – usually at no cost
• 40 Quarters of work required
Medicare Part B – Medical coverage
• It’s your choice to enroll
• Enrollment: within 6 months of age 65
• Premium: For 2008 most people will pay
the standard $96.40 per month
deducted from Social Security check.
New rates are effective every January
1st.
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Medicare Part D
– AETNA Plans are approved Medicare
Part D plans.
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Medicare Basics
For additional information, contact
the Social Security Administration at:
1-800-772-1213
or
look on the Web at
www.ssa.gov
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Florida Retirement System Health
Insurance Subsidy (HI$)
 Lifetime Benefit
 Extra payment added to monthly retirement
(Assistance to offset health insurance cost)
 $5.00 per each year of FRS service up to
maximum of $150 (does not include the
DROP years)
 Qualifications – must have health insurance,
Medicare or Tricare coverage.
 Retiree must apply for benefit within 6
months of retirement. FRS mails the HIS-1
form to retiree’s home address.
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MDC Individual Retiree Health
Benefits Subsidy (IRHB$)
 Coverage:
• Applicable only for Employee Single coverage to
offset cost of health insurance coverage only.
• Seven years Maximum or upon Medicare entitlement
(age 65)
 Eligibility:
• 30 years of FRS service at any age or
• 10 years of service with the College and age 62
 Formula:
• 50% for first ten years of employment
• Plus an additional 2.5 % for each year above the ten
years up to a maximum of premium
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Sick Leave Settlement
Faculty and Support Staff
 Formula:
• 50 % - the first 10 years of MDC service
• 1.5% - each year above 10 years
• Average Final Comp. [AFC] highest 3 years of
service
 Payment:
• Up to maximum of AFC
• Balance of all SICK days (SIFC, SIFN, SIFO)
• 50% of AFC Paid within 30 days of final
payroll
Remaining balance paid one year later or
Option to participate in Sick Leave payout
while in DROP through Bencor program
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Leave Settlement
Faculty Bank Points
 Bank Point Balance will be paid at the rate
such points were earned.
 Paid within 30-days of final pay. Paid in
accordance with the College’s terminal leave
payment program (Bencor)
 Option to participate in Bank Point Payout
while in DROP through Bencor program
 Payroll Services - x72751
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Sick Leave Settlement
Professional Exempt Contractual
 Formula:
• 50 % - the first 10 years of MDC service
• 1.5% - each year above 10 years
• Average Final Comp. (AFC) highest 3 years of
service
 Payment:
• Up to maximum of AFC
• Balance of SIFN and SIFO
• 50% of AFC Paid within 30 days of final payroll
 Remaining balance paid one year later or
 Option to participate in Sick Leave payout while in
DROP through Bencor program
 Personal Leave
• 4-days (Included in Sick leave balance,
they are not additional days.)
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Accrued Leave
Professional Exempt Contractual
& Support Staff
 Flex Days
• 2-days (Use it or Lose it)
 Vacation Days
• Up to 62 days (max.)
• Includes days paid upon DROP entry
• Paid at Current Daily rate of pay
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Accrued Leave - (con’t.)
 Professional Staff Accrued Leave (PSAL)
• MDC will pay actual days accrued during
the fiscal year of retirement up to 75
hours (10 days)
• All other PSAL days must be used as
leave or they are not paid.
• Paid at daily rate of pay.
 Payment
• Within 30 days of final pay
• Paid through Bencor plan.
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BENCOR –
Terminal Pay Plan
 You permanently save up to 7.65% in Social
Security taxes
 Federal Income Taxes that would have been
paid at your highest tax rate are deferred
until funds are withdrawn from the plan
 For any employee retiring or leaving the
College who receive a payout (sick, vacation,
bank point etc.) greater than $1,000
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BENCOR (con’t)
ELIGIBLE DROP PARTICIPANTS :
 Sick and/or Bank Points one time election upon
entering DROP
– Leave pay deposit after 1 year in DROP as
follows:
 Year 1: 20% balance of sick/bank point
 Year 2: 25% balance of sick/bank point
 Year 3: 33% balance of sick/bank point
 Year 4: 50% balance of sick/bank point
 Year 5: 100% balance of sick/bank point
– Amount must be worth over $1,000
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Tuition Waiver
Matriculation, student services
fees and application fee.
Tuition waiver forms available at
the financial aid office.
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Tuition Waiver – (con’t.)
 The maximum number of credits that
retirees and their dependents are eligible
for:
• Six Credits for Fall
• Six Credits for Spring
• Six Credits for Summer (A & B Combined)
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FRS
DROP Termination
 DP - Term Form
• No FRS employer services for 30-days
 DP – PAYT (Selected Payout Method)
• Option 1: Lump Sum Payment (less 20% Tax)
• Option 2: Direct Rollover (Pre-Tax rollover of
entire balance)
• Option 3: Partial Lump Sum and rollover the
remaining amount.
• Financial Institution receiving rollover completes the
bottom portion of DP-PAYT form.
 Forms must be Notarized and returned to FRS.
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Reemployment After
Retirement/DROP Exit
 RESTRICTIONS APPLY ONLY TO FRS
EMPLOYERS
 1st Calendar month of retirement
• ANY WORK CANCELS retirement.
• All DROP/retirement benefits lost
• No restrictions on private employment
• One month begins at effective date of
retirement
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Limited Exceptions
 2nd through 12th month of retirement
• Adjunct Instructors: limited to work
780 hrs.
• 48 points = 4 classes for first 12
months
• Any other FRS work (Part or Full Time)
will cause suspension of retirement
benefits (FR-23)
 After 12 months of retirement:
• No restrictions
• Reactivate Retirement Benefits (FR23a)
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After Retirement/
DROP Exit
 BENEFITS ARE PAID MONTHLY
• At the end of each month
 ELECTRONIC FUND TRANSFER [EFT]
Direct Deposit (mandatory): 30 – 45 days to set up in
the FRS retired payroll
 1st FRS check mailed to your home address
 Tax Withholdings – subject to Federal income tax
 Cost of living adjustment (COLA) – 3% each Fiscal Year
(July 1st.)
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FRS - Required Documents
HIS-1 form Health Insurance
Subsidy (within 6 months)
Tax withholding election forms
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To obtain information about
your retirement benefits contact:
 Division of Retirement Customer Service:
1 (888) 738-2252
Website:
http://www.dms.myflorida.com/retirement
and click on “Online Services”.
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For more information
regarding Benefits:
Contact the Compensation & Benefits Main Number at
305 237-2010
Or visit our website at:
http://www.mdc.edu/hr/Benefits/default.asp
You may also visit our new ASK HR site located at:
http://support.mdc/ics/support/default.asp?deptlD=5314
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