Retirement security In a changing world

1. Retirement securityIn a changing world

2. Service Credit • How it is earned: • Members earn 100% of a year service credit for each full year contract • Members cannot earn more than one year of service credit in a 12-month period.

3. FIVE YEARS SERVICE CREDIT – VESTED IN TRSL • SURVIVOR BENEFITS • DISABILITY RETIREMENT • DEFERRED RETIREMENT

4. Service and DROP Retirement Service Retirement Stop working and begin receiving lifetime monthly retirement benefit check ILSB Stop working, receive a lump sum up to 36 times your monthly maximum benefit, and receive a lifetime reduced monthly retirement benefit

5. Deferred Retirement Option Plan (DROP) Continue working for up to 36 months, build a retirement nest egg, retire sometime after completion of DROP participation

6. At least 5 years at age 60 20 years at any age At least 25 years at age 55 30 years at any age At least 20 years at age 65 Service Retirement See Page 39

7. DROP/ILSB Eligibility • At least 10 years at age 60 • At least 25 years at age 55 • 30 years at any age

8. Self-funded 2. 5% annual cost-of living adjustment Act 270 – Annual COLA Option

9. When Retirement / ILSB / DROP application is received: • Estimated affidavit is sent to member • Member chooses Retirement Option • Retirement benefit is calculated

10. Benefit Formula X X Yearsof TRSL service credit %Factor Average compensation = Maximum Retirement Allowance

11. Retirement Options Maximum Option – No named beneficiary Option 1 – Multiple beneficiaries for lump-sum balance Options 2 & 2A Options 3 & 3A One beneficiary Options 4 & 4A See page 47 Note: Option 1 not allowed if retiring under ILSB

12. Benefit Computation Example • A 55 year old member retiring with $2,500 average monthly salary: • 20 X 2% = $1,000 maximum benefit (hired before 7/1/99) • 20 X 2.5% = $786 maximum benefit ** (hired on or after 7/1/99) • 25 X 2.5% = $1,563 maximum benefit **Actuarially reduced benefit

13. Initial Lump Sum Benefit (ILSB) Page 49 • One time lump sum at time of retirement • Lump sum is based on maximum benefit • Lifetime reduced benefit • Benefit reduction is based on age of retiree • Retirement Option is chosen on affidavit (except Option 1) • Funds are treated the same as DROP funds

14. ILSB Example • 57 year old with 58 year old beneficiary • Maximum benefit is $1000 per month • Retiree may receive up to $36,000 in a lump sum ($1000.00 X 36 months = $36,000.00)

15. ILSB Example Regular benefit Reduced benefit Maximum $1,000.00 Maximum $711.00 Option 2 $ 928.00 Option 2 $660.00 Option 3 $ 963.00 Option 3 $685.00 Reduction in benefits depends on age of retiree. This benefit is reduced $8.02 for every $1,000 member receives in a lump sum. Page 50

16. Deferred Retirement Option Plan (DROP) • Maximum participation period is 3 years • Window opens when you reach your 1st eligibility date • 60 day grace period to enter after 1st eligibility • Window closes 3 years + 60 days from date window opened (deadline for ending DROP)

17. DROP Example Member is 57 with 58 year old beneficiary Maximum benefit is $1000.00 per month Member participates in DROP for 36 months Maximum chosen - $36,000 end of DROP Option 2 chosen - $33,408 end of DROP ($928/mo) Option 3 chosen - $34,668 end of DROP ($963/mo)

18. During DROP Participation • Keep working • May change jobs • No contributions to TRSL • Retirement benefit amount locked in • Retirement benefit deposited into DROP Account

19. After DROP Participation • Continue working and earn supplemental benefit • DROP funds become eligible to earn interest • Retire and begin drawing monthly benefit and DROP funds

20. DROP or ILSB Funds Members eligible for DROP/ILSB prior to Jan. 1, 2004: DROP/ILSB funds earns interest equal to the TRSL actuarial rate of return on investments minus ½ percent.

21. DROP or ILSB Funds Members eligible for DROP/ILSB Jan. 1, 2004 or later: DROP/ILSB funds will be put into interest-bearing money market account at current rate of return less ¼ percent.

22. Returning to Work After Retirement in a TRSL Covered Position – Effective 7/1/2010 • Act 921 of 2010 covers the following TRSL retirees: • K-12 Classroom Teacher - Critical shortage must be declared - Full time or part time • Speech Pathologist, Audiologist, Speech Therapist in K-12 - Critical shortage must be declared - Must be certified - Full time only • Other TRSL members who retired and returned to work PRIOR to July 1, 2010 - Covered under previous return-to-work provisions

23. Returning to Work After Retirement in a TRSL Covered Position – Effective 7/1/2010 • There is a 12-month waiting period. • Eligible return-to-work retirees will pay contributions to TRSL. • Retirees who are not K-12 teachers, Speech Therapists, Pathologists, or Audiologists retiring 7/1/2010 or later. • - Suspension of benefits for duration of re- employment • - No contributions paid to TRSL • - No payments to SS, except Medicare

24. Things to do now… • Verify beneficiary/beneficiaries on annual statement • Form 3 • Send in change of address, if applicable • Form 2AC • Have employer certify employment history • Send in proper documents (see page 39 in handbook) • Get an estimate of benefits • Send TRSL a Form 10 • Website calculator (www.trsl.org)

25. How to contact us Main: (225) 925-6446 TDD: (225) 925-3653 Toll-free (outside Baton Rouge area):1-877-ASK-TRSL (1-877-275-8775) www.trsl.org