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Welcome to the Alternate Benefit Program (ABP) Retirement Seminar. Sponsored by University Human Resources 848-932-3990. ABP Retirement Seminar Outline. Steps to retirement Receiving your retirement income Health benefits at retirement Life insurance at retirement

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Welcome to the alternate benefit program abp retirement seminar

Welcome to the Alternate Benefit Program (ABP) Retirement Seminar

Sponsored by

University Human Resources

848-932-3990


Abp retirement seminar outline
ABP Retirement Seminar Outline

  • Steps to retirement

  • Receiving your retirement income

  • Health benefits at retirement

  • Life insurance at retirement

  • Information for staff employees

    • Determining last working day

    • Sick leave payout

    • Compassionate Leave Program

  • Employment after retirement

  • Rutgers Retiree Associations

  • Telephone contacts & useful websites


Steps to retirement
Steps to Retirement

  • 6-8 months before retirement:

    • Request information about payout options from investment carrier

  • 4-6 months before retirement:

    • Notify your department

    • Determine last working day (staff employees)

    • Contact Social Security office (if you plan to apply)

  • 3 months before retirement:

    • Complete Application for Retirement Allowance

    • Return to University Human Resources (57 U.S. Highway 1 New Brunswick, NJ 08901)

    • Make arrangements with carrier to withdraw funds

    • If you or spouse or civil union/same-sex domestic partner is 65+, enroll in Medicare A & B


Steps to retirement cont
Steps to Retirement (cont.)

  • 1 month before retirement:

    • Call Prudential at 1-800-262-1112 for life insurance conversion if interested

  • Shortly before retirement:

    • Enroll in Retired Group State Health Benefits

    • Enroll in Retiree Dental Expense Plan

  • Shortly after retirement:

    • Receive cash settlement or annuity from investment carrier

    • Sick leave payout (staff employees)


Receiving your retirement income
Receiving your Retirement Income

  • Retirement income based on investment earnings and payout option

  • How you receive your income is up to you

  • For information on income options and allocation choices, contact carrier directly

  • Must elect annuity or cash

    settlement to be retired otherwise

    not eligible for retiree benefits


Health benefits at retirement
Health Benefits at Retirement

  • Active medical, prescription drug and dental coverage continues to end of retirement month

  • Retiree medical benefitsbegin the first day of the month following retirement

    (enrollment required)

    Example January 1 retirement:

    • Active employee benefits end

      January 31

    • Retired Group State Health Benefits begins

      February 1

      - Retiree Dental Expense Plan begins

      February 1

Retiree Health eligibility and premium sharing are determined by

NJ State Law and the NJ Division of Pensions and Benefits and are subject to change.


Employees who attained 25 years of pension credited service prior to july 1 1997
Employees Who Attained 25 Years of Pension-Credited Service Prior to July 1, 1997

  • No contributions required for Retired Group State Health Benefits

  • Health benefits include medical and prescription drug coverage

  • Full reimbursement for cost of Medicare Part B premium

    (per individual) provided by the State


Employees who attained 25 years of pension credited service between july 1 1997 and june 30 2007
Employees Who Attained 25 Years of Pension-Credited Service Between July 1, 1997 and June 30, 2007

  • No Premium Sharing (Medical and Prescription) except:

    ~ Contributions required for Retired Group State Health Benefits for NJ DIRECT 10 and AETNA FREEDOM 10 only

  • Premium sharing according to terms specified in agreement in effect

    at the time employee attained 25 years of pension-credited service

  • Rates for retirees who share the cost of their coverage with the are available on State and UHR website:

    http://www.state.nj.us/treasury/pensions/hb_open_enrollment_2013/hr0744.pdf

  • $46.10 - partial reimbursement of Medicare Part B premium (per individual)


Welcome to the alternate benefit program abp retirement seminar

Employees Who Attained 25 Years of Pension-Credited Service Between July 1, 2007 and June 28, 2011 Who Were Enrolled in a State Pension Plan Prior to May 21, 2010

  • Health contribution of 1.5% of 50 percent of the highest salary received in the five years prior to retirement

  • NJ Direct 10 and Aetna Freedom 10 are not available

  • No Reimbursement of the Medicare Part B premium

  • Waived if enrolled in the SHBP Retiree Wellness Plan

    • Agree to and submit Pledge for Healthier Living

    • Have a medical check-up annually

    • Have appropriate tests and screenings when recommended

    • Complete Annual Physical and Annual Wellness Certification

    • Complete Health Assessment Tool (HAT)

    • Participate in health plan’s disease management program when recommended


Welcome to the alternate benefit program abp retirement seminar

Retirees Who Attained 20 or More Years of Pension-Credited Service on or Before June 28, 2011 and Who Retire With 25 or More Years of Pension-Credited Service

  • Health Contribution is 1.5% of 50 percent of the highest salary received in the five years prior to retirement

  • NJ Direct 10 and Aetna Freedom 10 are not available

  • No reimbursement of the Medicare B premium

  • Must have been enrolled in a state administered retirement system prior to May 21, 2010


Welcome to the alternate benefit program abp retirement seminar

Retirees Who Are Not Grandfathered, Service Who Do Not Fall Within the Previous Provisions and Become Eligible for Retiree Health Insurance with 25 or More Years of Pension-Credited Service or Retirees Enrolled in a State Administered Retirement System on or After May 21, 2010

  • Health contribution is determined by the NJ Division of Pensions & Benefits, but will be a minimum of 1.5% of 50 percent of the highest salary received in the five years prior to retirement

  • NJ Direct 10 and Aetna Freedom 10 are not available

  • No reimbursement of the Medicare B premium


Retirees who retire with less than 25 years of pension credited service
Retirees Who Retire With Less Than 25 Years Service of Pension-Credited Service

  • Option to enroll in Retired Status

    State Health Benefits Insurance Plans

  • Required to pay full group rate, available on State and UHR websites:http://www.state.nj.us/treasury/pensions/hb_open_enrollment_2013/state-retired-full.pdf

  • Do not qualify for reimbursement of Medicare Part B premium


Welcome to the alternate benefit program abp retirement seminar
Surviving Spouses or Civil Union/Same-Sex Domestic Partners of Retirees with 25+ Years of Pension-Credited Service

  • Surviving spouse or civil union/same-sex domestic partner may continue retiree health

  • Will be required to pay full group rate

  • Will not qualify for reimbursement of Medicare Part B premium


Enrolling in retired group state health benefits
Enrolling in Retired Group State Health Benefits of Retirees with 25+ Years of Pension-Credited Service

  • Enrollment information mailed from state to home address

  • If packet is not received one month prior to retirement call the State Retiree Benefits Office at 609-984-1683

    • State Health Benefits Retired Coverage Enrollment application, available at:

      Non-Medicare Retired Coverage Enrollment Application: http://www.state.nj.us/treasury/pensions/epbam/exhibits/pdf/hr0943.pdf

      Medicare Eligible Retired Coverage Enrollment Application:

      http://www.state.nj.us/treasury/pensions/epbam/exhibits/pdf/hr0944.pdf

  • Complete and return application to the state


Enrolling in retired group state health benefits cont medicare part a and part b enrollment
Enrolling in Retired Group State Health of Retirees with 25+ Years of Pension-Credited ServiceBenefits (Cont.) Medicare Part A and Part B Enrollment

  • Medicare Part A and/or Part B not required if covered under a group health plan based on current employment

  • Upon retirement must provide proof of enrollment in Medicare if retiree and/or dependent is 65 or older

  • Social Security works with Medicare Services by enrolling people in Medicare. To enroll call Social Security at

    1-800-772-1213


Enrolling in retired group state health benefits cont medicare part a and part b enrollment1
Enrolling in Retired Group State Health of Retirees with 25+ Years of Pension-Credited ServiceBenefits (Cont.) Medicare Part A and Part B Enrollment

  • You will receive a Request for Employment Verification

  • Contact Benefits Administration to certify State Health Benefits Program coverage at 848-932-3990

  • Mail certified forms to Social Security

  • Medicare will mail Medicare Part A and Part B card

  • Mail copy of card to State to complete processing of health insurance


Enrolling in retired group state health benefits cont
Enrolling in Retired Group State Health Benefits of Retirees with 25+ Years of Pension-Credited Service(cont.)

  • NJ Direct HDHP 1500 and Aetna Value HDHP 1500 are not offered to retirees by NJ Division of Pension and Benefits

  • Medicare eligible retirees cannot enroll in any of the High Deductible Health Plans (HDHP).

  • Medicare eligible retirees cannot enroll in the Aetna Freedom 1525, Aetna Freedom 2030, or Aetna HMO 2030 plans.

  • Service areas for Horizon HMO plans are limited to New Jersey, New Castle County in Delaware, and bordering counties of Pennsylvania and New York

  • If eligible for High deductible health plans (HDHP), application available online: http://www.state.nj.us/treasury/pensions/epbam/exhibits/pdf/hr0916.pdf


Retiree dental expense plan
Retiree Dental Expense Plan of Retirees with 25+ Years of Pension-Credited Service

  • Dental plan designed for retirees

  • Administered by Aetna Dental

  • Retirees pay full cost

  • Continues as long as premiums are paid

  • More information available:

  • http://www.state.nj.us/treasury/pensions/retiree-dental-expense-plan.shtml


Health benefit coverage changes
Health Benefit Coverage Changes of Retirees with 25+ Years of Pension-Credited Service

  • Coverage may be changed once during a 12-month period

  • Coverage changes after a qualifying event

  • Special enrollment

    • Rate changes

    • Change in offerings

  • For questions regarding coverage call the Division of Pensions and Benefits Retiree Benefits Office at: 609-984-1683


Life insurance at retirement
Life Insurance at Retirement of Retirees with 25+ Years of Pension-Credited Service

  • Must have 10 years pension-credited service

  • Must be at least age 60

  • Must collect retirement benefit (cash or annuity)

  • Amount = ½ times last 12 months salary


Conversion of life insurance
Conversion of of Retirees with 25+ Years of Pension-Credited ServiceLife Insurance

  • One time option to convert to individual private policy through Prudential

  • Must be done no later than 31 days after retirement date

  • Cannot be denied for health reasons

  • May want to contact other carriers for comparable life insurance rates

  • To convert, contact the Prudential Group Life Conversion department at

    1-877-889-2070

  • You can use the online Prudential Life Insurance calculator at:

    http://www.state.nj.us/treasury/pensions/conversion-calc.shtml

  • Group number is G-14800


Conversion of life insurance example
Conversion of Life Insurance Example of Retirees with 25+ Years of Pension-Credited Service

  • Base Salary 12 months prior to retirement = $70,000

  • Total death benefits as an active member = $245,000 (3.5 x $70,000)

  • Life insurance benefit after retirement = $35,000 (1/2 x 70,000)

  • Amount eligible to convert = $210,000 ($245,000 - $35,000)


Determining last working day staff employees only
Determining Last Working Day of Retirees with 25+ Years of Pension-Credited Service(Staff Employees Only)

  • Unused vacation, earned vacation, AL days and PH days are to be taken prior to retirement

  • PLB days may be used prior to retirement or paid out at retirement

  • Plan ahead since last day in office may be several weeks or months before actual retirement date

  • Employee and department should come to an agreement regarding last day of work


Last day of work calculation example
Last Day of Work of Retirees with 25+ Years of Pension-Credited ServiceCalculation Example

  • Eric’s retirement date = June 1

  • Eric earns 20 vacation days per year

  • Days remaining

    Number of vacation days remaining = 10

    Number of AL days remaining = 1

    Number of PH days remaining = 2

    Number of vacation days earned (July – May) = 18

    University holiday (Memorial Day) = 1

    Total days to be used prior to retirement = 32

  • Count backwards 32 days from June 1

  • Eric’s last work day = April 15

  • To review your accruals records log on to ARS:

    http://uhr.rutgers.edu/online-services/absence-reporting-system-ars


Sick leave payout staff employees
Sick Leave Payout of Retirees with 25+ Years of Pension-Credited Service(Staff Employees)

  • Eligible staff employees receive one half the balance of their sick days up to $15,000

  • All applicable taxes will be deducted

  • Allow 4 to 6 weeks processing time

  • Sick Leave Payout at Retirement Deferral

    form can be used to defer sick leave payout

  • Deferral form available from University Human Resources:

    http://uhr.rutgers.edu/download/230?file=form_applications/SickLeaveDeferral.pdf


Compassionate leave program staff employees
Compassionate Leave Program of Retirees with 25+ Years of Pension-Credited Service(Staff Employees)

  • Donated-leave bank program for qualifying managerial, professional, supervisory, and confidential employees, as well as members of the URA-AFT and AFSCME Local #888, who experience catastrophic health conditions and will exhaust all of their paid time off

  • Eligible employees can donate up to 50 vacation and/or sick leave days to the leave bank

  • To donate, complete and submit Donation to Bank form available at:http://uhr.rutgers.edu/policies-resources/forms/compassionate-leave

  • Donations can also be completed online:https://uhrapps.rutgers.edu/ars/Login.asp


Employment after retirement
Employment After Retirement of Retirees with 25+ Years of Pension-Credited Service

  • You must agree to and sign the terms and conditions on the ABP Request for Retirement Allowance

  • If you fail to sign the acknowledgement your application for retirement allowance will not be processed


Retired faculty association rfa
Retired Faculty Association (RFA) of Retirees with 25+ Years of Pension-Credited Service

  • Serves needs and interests of retired faculty

  • Sponsors workshops and other events

  • Members receive RFA Bulletin

  • Join by completing membership application

    annual membership dues = $10.00

  • For more information visit the RFA website:

    http://scils.rutgers.edu/rfa/rfawebform.html


Silver knights rutgers staff retirees association
Silver Knights of Retirees with 25+ Years of Pension-Credited ServiceRutgers Staff Retirees Association

  • Serves needs and interests of retired staff

  • Sponsors workshops, trips, luncheons

  • Members receive Silver Knights Herald newsletter

  • Join by completing membership application Annual

    membership dues = $10.00

  • For more information, visit the Silver Knights website:

    http://scils.rutgers.edu/silverknights/


Telephone contacts
Telephone Contacts of Retirees with 25+ Years of Pension-Credited Service

State Division of Pensions and Benefits:

  • Retiree Benefits 609-984-1683

  • Client Services 609-292-7524

    Deferred Compensation 866-657-3327

    University Human Resources 848-932-3990

    Social Security 800-772-1213

    Internal Revenue Service 800-829-1040

    NJ Division of Taxation 800-323-4400


State authorized investment carriers
State-authorized Investment Carriers of Retirees with 25+ Years of Pension-Credited Service

AXA Equitable 866-752-0072

Mass Mutual(The Hartford) 866-490-3656

ING Financial 877-873-0321

MetLife 800-492-3553

TIAA-CREF 800-842-8412

VALIC 800-448-2542

Prudential 855-652-2711


Useful websites
Useful Websites of Retirees with 25+ Years of Pension-Credited Service

  • University Human Resources

    http://uhr.rutgers.edu/

  • Internal Revenue Service (IRS)

    http://www.irs.gov/

  • Medicare

    http://www.medicare.gov/

  • Social Security Online

    http://www.ssa.gov/

  • NJ Department of Banking and Insurance

    http://www.state.nj.us/dobi/index.shtml

  • NJ Department of Health and Senior Services

    http://www.state.nj.us/health/

  • NJ Division of Pensions and Benefits

    http://www.state.nj.us/treasury/pensions/


Welcome to the alternate benefit program abp retirement seminar

Thank you for attending of Retirees with 25+ Years of Pension-Credited Servicethe ABP Retirement Seminar