KENT ENTUCKY R RETIRE IREMEN ENT S SYSTEMS EMS Tier ier 1: 1: Strategi egies es f for R Retiremen ement W Webin inar ar will b ll begin gin m momen mentarily ily…
KENT ENTUCKY R RETIRE IREMEN ENT S SYSTEMS EMS Tier ier 1: 1: Strategi egies es f for R Retiremen ement W Webin inar ar
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 • Benefit Calculations for Tier 1 members • Strategies to Retire
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
Benefi efit C Calc lculatio ion Tier 1 1 (par artici cipation p prior t to S o September 1, 1, 2008 2008) How ow i is my my mon monthly p pay ayment cal calcu culated? The t three (3 (3) ) systems a admin inistered by by the he KRS a RS are qualif lified pu public d blic defin ined be benefit it pla plans X Special Early Factor (if applicable)
Benefi efit C Calc lculatio ion Final C l Compensation ion No Nonhazardous= Hig ighest fiv ive (5 (5) ) fis isca cal years rs Hazardous= Hig ighest three (3 (3) ) fis isca cal l years rs NONHAZARDOUS Partial years rs ca can be be used to determine Fin Final C l Compensation HIGH 5 A min inim imum o of 48 m months ths may be be used in in the a averaging o of s sala lary f for YEAR PAY # MONTHS No Nonhazardous a and a min inim imum of 24 m months ths for H Hazar ardo dous Year 1 $3,625 1 Year 2 $31,295 12 Year 3 $29,795 12 Year 4 $28,295 12 HAZARDOUS Year 5 $26,795 12 HIGH 3 ($119,805 ÷ 49) X 12 = $29,340 YEAR PAY # MONTHS Year 1 $4,000 1 Year 2 $46,000 12 Year 3 $44,000 12 ($94,000 ÷ 25) X 12 =$45,120
Benefi efit C Calc lculatio ion Final C l Compensation ion No Nonhazardous= Hig ighest fiv ive (5 (5) ) fis isca cal years rs Hazardous= Hig ighest three (3 (3) ) fis isca cal l years rs NONHAZARDOUS Partial years rs ca can be be used to determine Fin Final C l Compensation HIGH 5 A min inim imum o of 48 m months ths may be be used in in the a averaging o of s sala lary f for YEAR PAY # MONTHS No Nonhazardous a and a min inim imum of 24 m months ths for H Hazar ardo dous Year 1 $3,625 1 Compe pensatory p payments ca can be be repo ported a as sala lary and u used in in Year 2 $31,295 12 determinin ing t the a average sala lary Year 3 $29,795 12 Year 4 $28,295 12 HAZARDOUS Year 5 $26,795 12 HIGH 3 ($119,805 ÷ 49) X 12 = $29,340 YEAR PAY # MONTHS Year 1 $4,000 1 Year 2 $46,000 12 Year 3 $44,000 12 ($94,000 ÷ 25) X 12 =$45,120
Benefi efit C Calc lculatio ion Final C l Compensation ion No Nonhazardous= Hig ighest fiv ive (5 (5) ) fis isca cal years rs Hazardous= Hig ighest three (3 (3) ) fis isca cal l years rs NONHAZARDOUS Partial years rs ca can be be used to determine Fin Final C l Compensation HIGH 5 A min inim imum o of 48 m months ths may be be used in in the a averaging o of s sala lary f for YEAR PAY # MONTHS No Nonhazardous a and a min inim imum of 24 m months ths for H Hazar ardo dous Year 1 $3,625 1 Compe pensatory p payments ca can be be repo ported a as sala lary and u used in in Year 2 $31,295 12 determinin ing t the a average sala lary Year 3 $29,795 12 Year 4 $28,295 12 HAZARDOUS Year 5 $26,795 12 HIGH 3 ($119,805 ÷ 49) X 12 = $29,340 YEAR PAY # MONTHS Year 1 $4,000 1 Year 2 $46,000 12 Year 3 $44,000 12 ($94,000 ÷ 25) X 12 =$45,120
Benefi efit C Calc lculatio ion Final C l Compensation ion No Nonhazardous= Hig ighest fiv ive (5 (5) ) fis isca cal years rs Hazardous= Hig ighest three (3 (3) ) fis isca cal l years rs NONHAZARDOUS Partial years rs ca can be be used to determine Fin Final C l Compensation HIGH 5 A min inim imum o of 48 m months ths may be be used in in the a averaging o of s sala lary f for YEAR PAY # MONTHS No Nonhazardous a and a min inim imum of 24 m months ths for H Hazar ardo dous Year 1 $3,625 1 Compe pensatory p payments ca can be be repo ported a as sala lary and u used in in Year 2 $31,295 12 determinin ing t the a average sala lary Year 3 $29,795 12 Year 4 $28,295 12 HAZARDOUS Year 5 $26,795 12 HIGH 3 ($119,805 ÷ 49) X 12 = $29,340 YEAR PAY # MONTHS Year 1 $4,000 1 Year 2 $46,000 12 Year 3 $44,000 12 ($94,000 ÷ 25) X 12 =$45,120
Benefi efit C Calc lculatio ion Benefit it F Factor or KERS Non-Hazardous (1) 1.97% If a member does not have 13 months credit for 1/1/1998-1/1/1999. KERS Non-Hazardous (2) 2.00% If a member has 13 months credit for 1/1/1998-1/1/1999. Set by statute KERS Hazardous 2.49% and vary based on: Only approved hazardous duty positions are eligible. • Participation date CERS Non-Hazardous (1) 2.00% • Type of service • System If a member began participating on, or after, 8/1/2004-8/31/2008. CERS Non-Hazardous (2) 2.20% If a member began participating prior to 8/1/2004. CERS Hazardous 2.50% Only approved hazardous duty positions are eligible. SPRS 2.50% Only approved hazardous duty positions are eligible.
Benefi efit C Calc lculatio ion Ti Tier 1 1 Exam ample John Doe works in a NonHazardous position for an agency participating in CERS RETIREMENT FORMULA: Members participating prior to 9/1/08 Retirement Date is 8/1/2023 $29,340 X 2.2% Final Compensation is $29,340 X 27 yrs = 27 years of $17,427.96 Service Credit
Strategi egies es t to Retir ire • Purchasing Service Credit • Using Accrued Sick Leave • Using Compensatory Time • Timing your Retirement
Purchas hasing ng Service C e Cred edit it WITHOUT P T Purcha chase WITH Purchase Year ars of service = 32 32 year ars Years of se service = = 27 27 years (27 curren ent + 5 purchased) ed) Final nal Compens nsat ation = n = $29, $29,340 Final C Compens nsat ation = n = $29, $29,340 Retir etirement Formula: Retir etirement Formula: $29,340 x 2.2% $29,340 x 2.2% x x 32 years 27 years $20,655. $20, 5.36 $17,427.96 $17,4 96 By pu purch chasing 5 5 years rs o of s service ce cr credit it, t the a annual l be benefit it increas ased d by by $3,227. 27.40 40. On a monthly b basis, t the be benefit it in incr creased by by $268. 68.95! 95! Use our our Membe mber Sel elf Service ice to to prod oduc uce ret etirem emen ent estim imat ates a and ser ervice e purch chas ase c cost calcu calculat lations
Using ng A Accru crued S Sick ck L Leave Unuse nused si sick l leave i is s conv nverted t to mont nths hs o of se service cred edit it a at retir irem emen ent. 7 ½ H Hour our Day 8 Hour 8 ur Day Months nths o of Service ice Sick L Leave e Conv nver ersion n 82. 82.5 88 88 1 Mon onth th Chart for for 2 24-hrs on on & & 240 240 256 256 2 Mon onths ths Many mem ember ers are e el eligi igible e 48-hrs of 48 off e employe yees : 397. 397.5 424 424 3 Mon onths ths to rec ecei eive ser ervice e cred edit fo for In In Months nths of of 555 555 592 592 4 Mon onths ths unus used accum umulated sic ick Days Cre redit 712. 712.5 760 760 5 Mon onths ths le leave upon n retir irement nt. 5-10 10 1 870 870 928 928 6 Mon onths ths 1,027. 27.5 1, 1,09 096 7 Mon onths ths 15 15-20 20 2 1, 1,18 185 1, 1,26 264 8 Mon onths ths 25 25-30 30 3 1,342. 42.5 1,43 1, 432 9 Mon onths ths 35 35-40 40 4 1,50 1, 500 1, 1,60 600 10 10 Months ths 45 45-50 50 5 1,657. 57.5 1,76 1, 768 11 Months 11 nths 1, 1,81 815 1, 1,93 936 12 Months 12 ths 55-60 55 60 6
Recommend
More recommend
