FrequentlyAskedQuestionsRelatedtoRetirement
Q. Whatshouldldoif I’mthinkingaboutretirement?
A. Therearethreeimportantsteps:
IfyouareaContract TeacheroraCertificatedAdministrator:
ContactStateTeachersRetirementSystem(STRS)
AdviseyourAdministrator(orRED)ofyourintenttoretire
SubmittoHumanResourcesinwritingaletterwithyoursignatureofyourintenttoretire
IfyouareaClassifiedEmployeeoraNon-CertificatedAdministrator:
ContactSchoolEmployeesRetirementSystem(SERS)
Adviseyourdepartmentofyourintenttoretire
SubmittoHumanResourcesinwritingaletterwithyoursignatureofyourintenttoretire
Q. Whatneedstobein myintenttoretirelettertoHumanResources?
A. Yourlettershouldinclude:
Yourname(andsignature)
YouremployeeID
Yourlastdayofservice(cannotbeaweekendorholiday).
Q. Whoiseligibletoretire?
A. Toretire,youmusthavecompletedfiveyearsofservice.Youmustalsomeettheretirementsystem
requirements.
Q. CanIcollectseverance?
A. Tocollectseverance(apercentageofyouraccruedbutunusedsickdays),youmustretirewithSTRSwithin120
daysof yourlastdayofservice.Severanceispaidonlyoncetoanyemployee(percontractorcompensation
package agreement)andis typicallypaidoutwithin60daysofretirement.
Q. Whatis“EnhancedSeverance”?
A. Enhancedseverance(sometimesreferredtoasSuperSeverance)isyouraccumulatedsickleavepaidoutupon
your retirementatahigherpercentagerate,providedthatyounotifyHumanResourcesinadvanceofyour
intenttoretire. Refertoyourcontractagreementfortimerequirementsandpercentages.
Certificated Enhanced Severance:Classified Enhanced Severance:
Payout Percentage– Sick Leave Payout Percentage – Sick Leave
Less than 90 day notice (20%)No 90 day notice(25%)
0-100 days (25%)0-800 hours(30%)
101-200 days (30%)801-1600 hours(35%)
201-300 days (35%)1601-2400(40%)
301-400 days (40%)2401-3200(45%)
401+ days (45%)3201 and up(50%)
Q. WhatdoIneedtodotoqualifyfor“EnhancedSeverance”?
A. InordertoqualifyforEnhancedSeverance,youmustnotifyHumanResourcesinadvanceofyourretirementper
contractagreement.
Ifyourretirementdateis:
May31toOctober31inclusive,youmustnotifyHumanResourcesbyFebruary1 forContractTeachers andSchoolAdministrators.
November1toMay31inclusive,youmustnotifyHumanResources90daysinadvanceofyourretirement date forContractTeachers andSchoolAdministrators.
Classifiedemployeesmustgive90daynotice.
Q. Isthatpercentagebasedonthecurrentdailyrateatthetimeofretirementoronabaserate?
A. Severanceispaidattherateofpayatthetimeofseparation.
Q. HowdoIfindouthowmuchmyseverancewillbe?
A. AccesstheintranetunderTreasurer’sOffice,Payroll,fortheseverancepayestimator.Youwillneedyourlatest
paystubtoobtainthenecessaryinformation.
Q. CanIgetthepayoutformyseverancenextyeartoavoidtaxconsequences?
A. No.IRSregulationsregardingdelayedseverancepaymentstoavoidtaxconsequenceschangedin2009. Itisno
longerpermitted.
Q. CanIdeferanyof myseverancepaytoanannuityaccount?
A. Yes,butyoumustestablishtheaccountwhileyouarestillactivelyemployedwiththedistrict.Youwillfind
annuityformsontheintranet.Thismustbesignedbyyouandyouragentandreceivedinthepayrollofficeby
yourlast dayofservicewiththedistrict.
Q. HowsoonwillIgetmyenhancedseverancepayout? Willitbeaseparatecheck?
A. Severancepayenhancedornot,ispaid(percontract)60daysafterretirement.Ifretirementoccursattheend
ofthe schoolyear,teachersonAplan(21pays)willbepaidoutin August,teachersonBplan(26pays)willbe
paidoutin September.Yes,inmostcases,itwillbeaseparatecheck.
Q. How do I know when I will receive my last paycheck and when will my insurance end?
Traditional School Year
If complete contract (working to the end of the school year)
Pay Schedule / Last Pay Date / Benefits End26 Pays / Last pay in August (August 28, 2015) / September 30th
21 Pays / Last pay in June (June 19, 2015) / September 30th
Year Round School and Administrators
If complete contract (working to the end of the school year or July 31st if you are an Administrator)
Pay Schedule / Last pay Date / Benefits End26 Pays / 1st Pay in August (July 31, 2015) / August 31st
Q. If I’m not retiring at the end of the school year, how do I find out my last pay date and when my benefits end?
A. For your last pay date, teachers contact Jerry Debolt in Payroll at 365-6748; all others (non-teachers) call 365-6440.
ForBenefitsrelatedquestions,call365-6475.
Please Note:For retirement counseling/advice, please contact STRS and/or your financial planner.