Destination Retirement San Patricio County Plan Year 2019 TCDRS - PowerPoint PPT Presentation

Destination Retirement San Patricio County Plan Year 2019

TCDRS Does Retirement Right  One of the best-funded plans in the country  Features keep us financially strong – Savings-based benefits – Responsible plan funding – Flexibility and local control

How the Plan Works

How Your Plan Works You save for your Savings grow at You earn a own retirement, lifetime benefit. an annual, automatically. compounded rate of 7% interest. • Based on account balance at retirement • 7% of your pay is + employer matching, deposited into your set at $2.00 per TCDRS account each dollar by your pay period. employer

Compound Interest Pays Off $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Year 5 Year 10 Year 15 Year 20 Year 25 Cumulative Interest Cumulative Employee Deposits

Lifetime Benefit Total Fixed Retirement Funds Monthly Benefit Age + Account Employer Benefit Payment Balance Matching Option

Life Events And Your Benefit

Naming a Beneficiary  You can name: – One or multiple beneficiaries, as well as alternates – Minor children, along with a custodian – Your estate – Or a charity or other organization  If no beneficiary on file, TCDRS will pay benefit to spouse (if married) or estate  Update beneficiaries at www.TCDRS.org

Service Time and Eligibility

Service Time = One month of One TCDRS deposit TCDRS service time

Other Ways to Earn Service Time 6 6 = Proportionate Military Retirement Multiple Service Time Program TCDRS or USERRA Accounts ERS (State of Texas) JRS (Courts) TRS (Schools) TMRS (Select Cities) COA (City of Austin)

Survivor Benefit  Earned after 4 years of TCDRS service  Gives your beneficiaries the option to receive a lifetime monthly benefit from your account, if you were to pass away before retirement  Beneficiaries don’t have to wait until you would have become eligible to retire  Gives loved ones peace of mind

Vesting  Vested after 10 years of service  Set by your employer  Means you’ve earned the right to a lifetime benefit when you’re eligible and choose to retire

Retirement Eligibility Service Age Age 60 and 10 years Years of service = Age plus 80 Any age and 30 years * Employee must be vested

Leaving Employment Keep money with Rollover Withdraw TCDRS. + 7% interest – Forfeit Lifetime – Forfeit Lifetime Benefit & Employer Benefit & Employer + Lifetime benefit Matching Matching possible + Avoid paying taxes – Pay significant taxes

Ready to Retire

Sources of Retirement Income Personal Savings Social Security Part-time Work TCDRS

Watch Our Retirement Videos  Watch our “Am I Ready to Retire?” video.  Visit www.TCDRS.org/MemberVideos for all our member videos.

Online Retirement Resources

Estimate Your Benefit

Online Counseling  www.TCDRS.org/OnlineCounseling – Learn more about your benefits – Receive personalized estimates – Review benefit payment options  All you need is a computer or mobile device, and an internet connection.  No webcam required!

Pick Your Benefit Payment Option 7 options to choose All options provide a from at retirement lifetime monthly benefit Difference in monthly Consider if someone amounts reflect will need your benefit possible payments if you pass away to beneficiary before them

Single Life Option

Single Life Option  Lifetime benefit for you  Highest benefit payment amount  Does not provide beneficiaries a monthly payment after you pass away

Guaranteed T erm Options

Guaranteed T erm Options  Lifetime benefit for you  Provides your beneficiaries with payments until the end of either a 10- or 15-year term , if you pass way before the term ends – Term starts at your retirement date

Dual Life Options

Dual Life Options  Lifetime benefit for you  Lets you transfer your lifetime benefit to ONE beneficiary when you pass away  Beneficiary will receive either 50%, 75% or 100% of your monthly benefit payment for the rest of their life – 100% to Beneficiary With Pop-Up option “pops” your benefit up to the Single Life amount if your beneficiary passes away before you

Monthly benefit estimate example Retirement date: 10/31/2020 Member Beneficiary Single Life Options Single Life $0 $2,000 for life 10-Year $1,950 for life $1,950 (thru 10/2030) Guaranteed Term 15-Year $1,900 for life $1,900 (thru 10/2035) Guaranteed Term Dual Life Options 50% to Beneficiary $1,850 for life $925 for life 75% to Beneficiary $1,800 for life $1,350 for life 100% to Beneficiary $1,750 for life $1,750 for life 100% to Beneficiary $1,700 for life $1,700 for life (with Pop-Up Option)

Pick Your Retirement Date  Retirements are effective the last day of the month you choose to retire.  You will receive the interest through the end of that month.  Mind the gap! – Your retirement benefit will direct-deposit into your bank account the last business day of the following month.

Select Your Withholding  Retirement benefits count as income.  Consult the IRS or a tax advisor.  You can change your withholding at any time at www.TCDRS.org .  Call us at 800-823-7782 to see how withholding will impact your benefit.  TCDRS will provide you with a 1099-R each year for your tax return.

Submit Your Retirement Application  Consolidated Service Retirement Application (TCDRS-22)  NEW! Apply for retirement online

Return to Work  There must be: – No prior agreement to be rehired – AND a one-calendar-month break in service.  Non-compliance results in suspension of benefits plus repayment of TCDRS money.  State and federal law requires signature upon retiring certifying awareness and compliance.

How to Reach Us Visit us www.TCDRS.org Call us 800-823-7782 Email us memberservices@tcdrs.org Follow us

Questions? www.TCDRS.org