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PEBA update

SC Municipal Human Resources Association

2017 Annual Meeting

November 9, 2017

PEBA update

• Navigating your benefits website

• Retirement benefits• Retirement awareness

• Member Access

• Ending TERI participation

• Insurance benefits• 2018 State Health Plan update

• MyBenefits

• PEBA Perks

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• A multimedia series oninsurance andretirement benefits

• Flyers and videos

• www.peba.sc.gov/nyb

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Navigating your benefits

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Retirementbenefits

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Retirement awareness

• Retirement planning seminar• Retirement eligibility

• Insurance eligibility for retirees

• Early- and mid-career seminar

• Be aware and prepare series• Presentations

• Animated videos

• www.peba.sc.gov/retirementawareness.html

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Retirement awareness

Emotional preparedness for retirement

• Most major life-changing events, such as marriage ordivorce, involve an ongoing process of emotionaladjustment

• Retirement is no exception

• Emotional and psychological frontier of retirementhas remained virtually unexplored until recently

7http://www.investopedia.com/articles/retirement/07/sixstages.asp

Member Access

SCRS and PORS active members• Access your retirement account

• Print a member statement

• Update your address

• View your beneficiaries and service credit

• Submit a Service Purchase request

• Complete a Service Purchase Cost Estimate

• Apply for Service Retirement and view the status of your serviceretirement application

• Inactive members can also view and print a member statementand update their address

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Member Access

Retired members• Print a 1099-R form

• Update your tax withholding

• Update your address

• Print an annuity verification letter

• View your current payment method

• Modify an existing direct deposit account or add anadditional direct deposit account

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• PEBA will mail a TERIend packet 90 daysbefore the expectedend date

• All TERI participationends June 30, 2018

Ending TERI participation

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TERI end packet

• The packet includes the amount of the monthly SCRSbenefit before taxes

• It also gives the estimated TERI account balance

• The monthly SCRS benefit is subject to change

• The packet includes necessary forms

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TERI end packet

• TERI Payout Election Form (Form 7500):• Designate how to receive the TERI balance

• Withholding Certificate for Monthly Annuity BenefitPayments (Form 7202):

• Update tax withholdings for future monthly benefits, ifneeded

• Can be updated through Member Access

• Direct Deposit Authorization (Form 7204):• Update direct deposit information for future monthly

benefits, if needed• Can be updated through Member Access

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Ending employment

• At the end of the TERI period, participants must endemployment

• Employers must certify the termination date to PEBAon the TERI Termination Certification in EES

• When PEBA receives the employer certification,participants can begin receiving monthly benefitpayments and their TERI account balance

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TERI account balance

• State law requires participants to receive their TERIaccount balances. Options include:

• Single-sum payment;• Direct rollover; or• Partial rollover

• Tax implications exist for these options

• For financial advice or information on earlywithdrawal penalties, participants should check witha tax advisor, accountant, the IRS or the SouthCarolina Department of Revenue

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TERI rollovers to the DeferredCompensation Program

• Employees must have a 401(k) plan account beforerolling funds into the Program

• Enrollment form is available at www.southcarolinadcp.com

• Fax the completed form to 803.754.7661

• For assistance with completing the form, call 803.754.7997

• The amount rolled in does not count towards theannual maximum contribution limit

• Funds can be rolled into pretax option only

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Payments for unusedannual leave

• Unused annual leave payments are not included incalculating a benefit during TERI

• At the end of TERI, employers certify unused annualleave payments at termination to PEBA

• Can include up 45 days of unused annual leave

• The monthly benefit is then recalculated

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Returning to coveredemployment after TERI

• Employment is not guaranteed

• Retirees are subject to the rules governing return-to-work retired employees

• May be subject to a $10,000 annual earnings limitation

• TERI participation for 30 days will meet the 30-day break inservice requirement

• Return-to-work retirees continue to contribute a tax-deferred percentage of gross pay

• 9 percent as of July 1, 2017

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Insurancebenefits

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State Health Plan

• PEBA manages the State Health Plan (SHP)• Self-funded insurance plan

• Members’ premiums are held in a trust fund and thesefunds are used to pay claims

• BlueCross BlueShield of South Carolina processes claims

• Health management is key to maintaining a low costfor the plan and premiums

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What’s new for 2018?

• Employees have 30 days, instead of 31 days, to makeinitial enrollment decisions or changes during aspecial eligibility situation

• MetLife is the new life insurance vendor• Dependent Life-Spouse premiums are based on the

spouse’s age and no longer based on the employee’s age

• New life insurance premiums for 2018

• The eyeglass frame benefit will change from every 24months to every 12 months

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