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 our 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 oria 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 Member Payment Payment Options (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 $1,310.14* Pop-Up Option $1,310.14 (see Handbook) 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), • or 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 o choos hoose a Soc Social Se Secur urity Adjustm stment t Option. on. • The he Soc Social Se Secur urity A Adjus ustment O Options ns allow ow y you ou to o 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 on 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 only 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 EXAMPLE BASED ON $1,000 MONTHLY SOCIAL SECURITY BENEFIT AT AGE 62 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 Compare the Option with without Survivor Rights to Survivor Rights to the the Basic/Annuity Payment Survivorship 100% Option
Leg Legal N Not otice If If yo you have ve any ny questi stions about out 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 orma mation refer eferen ence for or mem ember bers of of the he KRS. S. Th This s present ntation i on is not not int ntend nded as as a a sub ubstitut ute f for or applica licable le Fed edera eral or or 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 its cont it ontent nts and nd applica licable le Fede deral al or or sta state law. w. Bef Before makin king decis cisio ions about out your our reti tirement, t, you ou 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
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