Recording Madison College Retirement Benefits 18Feb-2014 · 2018-02-02 · Retiree Benefits •...

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MADISON AREA TECHNICAL COLLEGE RETIREMENT BENEFITS

February 2014

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Objectives

• Retirement Types• Benefits

– Employee Benefits– Retirement Benefits

• Other retirement information• Retirement notification• FAQs

Madison College 2014 Retirement Benefits Recorded on February 18, 2014

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Employee Benefits• Sick Leave

• Health Insurance

• Dental Insurance

• Life Insurance

• WRS Retirement

• Voluntary Vision

• Flexible Spending Account

• Disability Insurance

• Tax Sheltered Annuity

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Retiree Benefits• Sick Leave Payout

• Health Insurance

• Dental Insurance

• Life Insurance

• WRS Retirement Annuity

• Voluntary Vision

• Flexible Spending Account

• Disability Insurance

• Tax Sheltered Annuity


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Retirement Types

• Normal – Age 55+• Early• Earlier• Normal – Age 65+

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Normal Retirement – Age 55• Full time employees

– Eligible at age 55– 5 Years of Service

• Receive Sick Leave Payout• May continue in group benefit plans at

retiree’s expense • WRS Penalty for retiring prior to age 65

(“actuarial reduction”)


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Early Retirement Defined• Faculty

– Age 60– 15 Years of Madison College Service

• Administration– Age 60– 10 Years of Madison College Service

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Early Retirement Terms• Sick Leave Payout• College assumes the cost to eliminate

WRS Penalty• May continue in group benefit plans at

retiree’s expense

BUT, Early Retirement is generally superseded by…


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Earlier Retirement Defined

Faculty• Age 57 with 15 years of Service• Age 60 with 10 years of Service • The retirement date is between semesters

and no later than December 31, 2014 to retire under current terms.

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PSRP• Age 57 with 15 years of Service• Age 60 with 10 years of Service• The retirement date is no later than

December 31, 2014 to retire under current terms.


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Administration • Age 57• 10 years of service OR 7 years Madison

College service and 3 years other Public System service

• The retirement date is no later than December 31, 2014 to retire under current terms.

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Earlier Retirement Benefits• Sick Leave Payout• Health Insurance

– Single coverage paid until Medicare eligible (normally age 65)

– Spouse/family coverage available at retiree cost

• College assumes the cost to eliminate WRS Penalty


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Normal Retirement – Age 65• Full time employees

– Age 65+– 5 Years of Service

• Receive Sick Leave Payout• May continue in group dental plan at

retiree’s expense

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SICK LEAVE


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Sick Leave Payout

Faculty • 150 days maximum• ¾ of accumulated sick days X daily rate =

$(payment to tax sheltered account)• Daily Rate = current salary / 190 days

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Sick Leave Payout

PSRP • 150 days maximum• ¾ of accumulated sick days X daily rate =

$(payment to tax sheltered account)• Daily Rate = hourly rate X hours per day


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Sick Leave Payout

Administrative • 150 days maximum• ¾ of accumulated sick days X daily rate =

$(payment to tax sheltered account)• Daily Rate = contract amount/contract days

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Sick Leave Distribution

• Allocation based on health insurance choice at retirement

• Payment by Madison College to your sick leave account

- Account administered by Mid-America Retirement Solutions, Inc.


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Sick Leave Payout DistributionHealth Reimbursement Arrangement (HRA)

• Eligibility by defined groups• Used for medical expenses on tax free basis• Eligible medical expenses

- Premiums- Uninsured medical expenses- Long Term Care premiums- Medicare supplements

• HRA may be combined with 403(b) Special Pay

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Sick Leave Distribution

Special Pay Plan - 403(b) Up to $50,000 (IRS Regulation) Tax deferred until withdrawn No FICA Taxes Available for immediate withdrawal Funds can be used for any purpose


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Sick Leave Payout Distribution

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Health Insurance Eligibility

• Retire with an annuity from WRS• 5 years Madison College Service• Currently in health insurance group


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Health Insurance Options

Group Health Cooperative(GHC)• Current Active Employee Plan

Monthly PremiumSingle $437.84Family $1,235.16

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WPS Early Retiree Plans

• Offered for retirees not Medicare eligible

• Lower cost option to active employee plans

• Single coverage ($ equivalent) paid by College as part of EarlierRetirement Package


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WPS Early Retiree Plan• Differences from active WPS Plan

– Higher deductibles (varies between plans)– No specialty office co-pay– No in-network coinsurance for Southern/HealthyU– Higher out of pocket maximums– HealthSense (wellness) NOT included– May purchase two single plans for retiree and

spouse if family plan not needed

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Health Insurance OptionsWPS Early Retiree Plan Monthly Premiums• WPS Southern & HealthyU

Single $ 694.84Family $ 1,674.67

• WPS Statewide Non-DaneSingle $ 729.50Family $ 1,753.23

• WPS Statewide Dane• Least affordable option with highest deductibles and

highest annual out of pocket maximumSingle $ 727.12Family $ 1,752.50


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Health Insurance OptionsWPS Current Active Employee Plan Premiums • WPS Southern & HealthyU

Single $ 906.02Family $ 2,283.84

• WPS Statewide Non-DaneSingle $ 951.44Family $ 2,398.67

• WPS Statewide DaneSingle $ 965.71Family $ 2,434.77

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Dental Insurance

Eligibility to remain in group plan• Retire with an annuity from WRS• 5 Years Madison College Service• Currently in dental insurance group• Eligibility to remain in group plan after

Medicare eligible


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Dental Insurance• Current Delta Dental Plan

• $1500 benefit per person per year• $2500 Lifetime Orthodontic benefit• Coverage does NOT end at age 65

• Cost (Monthly)• Single $47.64• Family $133.62• May purchase two single plans for retiree and spouse at

$95.28

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Health and Dental Insurance

Mechanics• Download Early Retiree Benefits Packet

from College Retirement website • Submit election form to Human

Resources/Payroll approximately one month before retirement date

• Electronic transfer of funds required for insurance premiums


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LIFE INSURANCE

• Eligibility– WRS Annuitant– 5 years WRS Service– Currently enrolled in Life Insurance

• Benefits– May continue BASIC at own cost– Premium deducted from WRS annuity

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Life Insurance

• Basic Coverage becomes paid up at age 65

• Coverage decreases to 75% at age 65• Coverage decreases to 50% at age 66


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Wisconsin Retirement Benefits• Formula Benefits

– Average of 3 highest years*3 highest years are fiscal years only

– Years of Service Multiplier • .01765 years before 2000• .016 years after 2000

• Money Purchase– Purchase annuity at market rate

• Annuitant Receives Higher of Two Methods

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Wisconsin Retirement System

• Benefit Programs Section– Life Insurance– Annuity Options Explained

• Retirement Planning Section– Retirement Benefits Calculator

http://etf.wi.gov/


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OTHER INFORMATION• Social Security

– Review your Annual Statement– Request a full statement of your account

• Certification– May need to renew– 75 day waiting period to return – Be careful here!

• Madison College Retirees Association– 1st Monday meetings– Annual meeting in September

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Notification• Submit notification by March 3 to:

– Human Resources– Union (where applicable)– Manager

• Notification must declare retirement date

• Faculty form available online• Acceptance sent from the President’s

office• Normal retirement notifications not

required by March 3


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Notification

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Frequently Asked Questions• What happens to my sick leave over

150 days?– Paid out at 75% with final pay

• What other leaves are paid out at retirement?– Vacation


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Frequently Asked Questions• Can I retire on December 31, 2014

even though the college is closed?– Yes, the retirement date can be different

from the last day worked• Should I submit notification to retire if I

plan to retire between January 1 and July 1, 2015?– Notifications for 2015 retirements are not

accepted at this time

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Frequently Asked Questions

• Can I change my health insurance plan after retirement?– Annual dual choice period in June

• What if I don’t want my sick leave payout to go towards the HRA?– Refer to the Sick Leave payout grid to

identify available options


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RESOURCEShttp://etf.wi.gov877-533-5020

HR DepartmentKristin Gebhardt 246-6902Helga Vrany 246-6908

Payroll DepartmentBrian Nesbit (Benefits) 258-2436

E-mail questions to: [email protected]


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Recording Madison College Retirement Benefits 18Feb-2014 · 2018-02-02 · Retiree Benefits •...

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