KENT ENTUCKY R RETIRE IREMEN ENT S SYSTEMS EMS Retir irem - - PowerPoint PPT Presentation

KENT ENTUCKY R RETIRE IREMEN ENT S SYSTEMS EMS Retir irem emen ent P Paymen ment O Option ions will b ll begin gin m momen mentarily ily…

KENT ENTUCKY R RETIRE IREMEN ENT S SYSTEMS EMS Retir irem emen ent P Paymen ment O Option ions

Plea ease keep eep in n mind nd tha hat Kentucky cky Revi vised Stat atute 61.661 661 requires es KRS t to a administ ster er accounts s in a confid identia ial l manne nner. Dur uring ng o

• ur

ur web ebina nar today, p plea ease d do no not sub submit quest uestions sp spec ecific to your ur account nt and nd do no not post st sens sensitive info nformation, n, suc such a h as y s your ur K KRS M S Mem ember I ID, So Social Sec Secur urity y Num umber er, or P PIN, in n the c he cha hat. If f you u ha have sp spec ecific quest uestions about your ur ind ndividual acco account, pleas ase con contact K KRS at 1-800 800-928 928-4646. 4646.

Agenda f for r Today’ y’s W s Webinar

• Zoom Tutorial
• Things to Consider
• Beneficiary Designation
• Retirement Payment Options
• Ten Year Certain
• Social Security Adjustment Options

Zoom T m Tutor

• ria

ial

• The Q&A function is used to ask general retirement

questions for a KRS representative to respond. We will answer each question in the order they are received before the conclusion of the webinar today

• The CHAT

AT and RA RAISE HA HAND ND function will not be used during this webinar

Thin ings t to C Consider er

Upon retirement, KRS provides various payment options.

• Carefully review the payment options.
• No changes can be made to the payment option or the designated

beneficiary on or after the 1st day of the month the first check is issued.

• Test each option by assuming various contingencies and the

likelihood of the contingencies occurring.

• For most payment options, an individual must be receiving a

monthly retirement allowance to participate in the medical insurance program.

Benefi eficia iary D Desig ignatio ion

• To designate a beneficiary while employed, a valid Form 2035, Beneficiary

Designation must be on file with KRS

• At the time of retirement, only one person, the estate, or a trust can be named as

beneficiary of the monthly retirement allowance

• The retired member cannot change this designation on, or after the first day of the

month in which the member receives their first monthly retirement allowance

• If the beneficiary dies or divorces the retired member, state law provides that the

member’s estate becomes the beneficiary – an estate or trust cannot be eligible for a lifetime payment upon the death of a member.

Retir irem emen ent P Paymen ment O Option ions

The payment amounts below are examples only

Payment Options Member Payment (or) Beneficiary Payment Basic/Annuity Option $1,452.33 $0.00 Life with 10 years certain $1,432.19 $1,432.19 (or) $0.00 Life with 15 years certain $1,408.70 $1,408.70 (or) $0.00 Life with 20 years certain $1,378.87 $1,378.87 (or) $0.00 Survivorship 100% $1,321.32 $1,321.32 Survivorship 66 2/3 % $1,362.28 $908.23 Survivorship 50% $1,383.73 $691.87 Pop-Up Option $1,310.14*

(see Handbook)

$1,310.14

John Doe can also reject all monthly payment options and request an actuarial refund of approximately $73,344.41.

Ten Y en Yea ear C Cer ertain

• Only

ly av availa ailable f for Stat ate Polic lice R Retirement S System m members (SPRS) RS),

• r Kentucky E

Employees R Retir irement S System ( (KE KERS) S) or County Employees R Retirement S System ( (CERS) RS) m members in in HAZARDOUS OUS posit itions

• No in

income af after 1 10 year ars

• Member r

retai ains t the in insurance benefit its af after all all other b benefi fits c ceas ase

• No

No $5, $5,000 000 death th be bene nefit i if f the the m member dies a s after the the 10 10 year r perio iod

Socia ial S l Securit ity A Adju justmen ment O Option ions

• A

A me memb mber mus must b be und under a age 6 62 to

• choos

hoose a Soc Social Se Secur urity Adjustm stment t Option.

• n.
• The

he Soc Social Se Secur urity A Adjus ustment O Options ns allow

• w y

you

• u to
• receive a

a hi highe her mont monthly paym ayment f from y your reti tirement dat date t to your 62n 62nd b d birthday, at at which ich ti time your p paym ayment w will dr drop, base ased o

• n your age

age 62 62 Social al Security p ty payment.

• t. (T

(The S Socia cial l Secu curity w wit ith Benefic icia iary O Optio ion is is availa ilable le

• nly

ly if if you and the b beneficia iciary m meet ce certain in a age requireme ment nts.)

Socia ial S l Securit ity A Adju justmen ment O Option ions

Payment Options Member Payment (or) Beneficiary Payment Until Age 62 Age 62 & After Until Age 62 Age 62 & After Basic/Annuity $1,452.33 $1,452.33

• $0.00-
• $0.00-

Without Survivor Rights $2,145.71 $1,145.71

• $0.00-
• $0.00-

100% Survivorship $1,321.32 $1,321.32 $1,321.32 $1,321.32 With Survivor Rights $2,040.24 $1,040.24 $2,040.24 $1,040.24

Compare the Option without Survivor Rights to the Basic/Annuity Payment Compare the Option with Survivor Rights to the Survivorship 100% Option

EXAMPLE BASED ON $1,000 MONTHLY SOCIAL SECURITY BENEFIT AT AGE 62

Leg Legal N Not

• tice

If If yo you have ve any ny questi stions about

• ut the

he materi erial in in th this s prese sentat tation please ase co contact ct KR KRS at at 1-800 800-928 928-46 4646 46. This is pr pres esen entation is is int ntend nded mere rely as as a gen ener eral infor

• rma

mation refer eferen ence for

• r mem

ember bers of

• f the

he KRS. S. Th This s present ntation i

• n is not

not int ntend nded as as a a sub ubstitut ute f for

• r applica

licable le Fed edera eral or

• r

sta state la law, , nor nor will ill its ts interpretati tation pr prev evail shoul hould a confli lict ct ar arise se bet between en it its cont

• ntent

nts and nd applica licable le Fede deral al or

• r sta

state law. w. Bef Before makin king decis cisio ions about

• ut your
• ur reti

tirement, t, you

• u shoul

hould co contact ct Kentucky cky Retireme ment nt Syst ystems. s.

Questions?

If we are unable to answer your question during today’s webinar, please email it to:

krsbenefitsoutreach@kyret.ky.gov