Retirement

  • PENNRIDGE RETIREMENT SEMINAR PRESENTATION

     

    PSERS RETIREMENT OPTIONS

     

     

    PENNRIDGE RETIREMENT FAQs:  

    Can you clarify the references to withdrawal retirement in the collective bargaining agreement?

    This simply means if you are eligible to retire without penalty from PSERS.  If this is the case, then you are eligible for the retirement benefits your Pennridge Collective Bargaining Agreement affords you.  Determine your eligibility by attending a “Foundations for your Future” meeting or visiting the PSERS retirement website.

     

    How do I determine if I am eligible for a Pennridge retirement payout?

    Your collective bargaining agreement outlines the requirements for this eligibility.  Your district payout eligibility depends on your PSERS eligibility and/or other requirements outlined in your collective bargaining agreement.

     

    Is there a maximum payout for sick days and/or years of service?

    The current PEA Collective Bargaining Agreement does not have a cap on the qualifying sick day payout amount.  Other district employment agreements do have a maximum payout.  Please consult your employment agreement for information on your benefit.

     

    Does PSD offer a retirement workshop (like PSERS) for those considering retirement?

    While Pennridge does not offer a retirement workshop, PSERS offers “Foundations for your Future (FFYF).”  These meetings can be found on the PSERS website.  It is important that you attend one of the “Foundations for your Future” meetings to understand the timelines for retiring from the state.  PSERS retirement requirements may be different from the requirements in your collective bargaining unit.  Attendance at a FFYF program will help you begin to plan for your retirement. These programs are provided solely for the education of members of PSERS.  Human Resources is available to answer any questions you may have regarding your pending retirement from Pennridge.

     

    What happens to my health insurance benefits when I retire? 

    As a retiree, you are eligible to participate in the district insurance plan at the time you retire and until you are 65 years of age.  This coverage is available to you at 100% of the premium costs and is managed through CobraHelp.  Once you submit your retirement letter and your retirement has been officially accepted by the Board, CobraHelp will notify you of the process for coverage moving forward.  If you work through the last contracted teacher day for the school year, your coverage remains intact through the end of August and CobraHelp will begin managing your coverage as of September 1st.  For twelve month employees, coverage terminated on the last day of the month in which you retire; CobraHelp will manage your coverage beginning the first day of the following month.  CobraHelp will email you enrollment information for you to determine your participation in this program post retirement. 

     

    HOW TO I CONTACT CobraHelp?

    CobraHelp will contact you via email with your enrollment package.  However, you can also reach out to CobraHelp at: 1-866-946-5181

     

    When do retirees receive their final paycheck?

    • PEA retirees, retiring at the end of the school year, will receive their remaining salary payout in the last paycheck of June.  If the retiree qualifies for years of service or unused sick day pay, this amount will be deposited into a 403(b) account that the employee has set up – per the CBA contract on page 44.  If the employee has a 403(b) account already established, this payment will occur with the last pay date of June. If the employee has not set up a 403(b) account, the payment will be delayed until they do have a 403(b) account.

     

    • Hourly employees, retiring at the end of the school year, who qualify for years of service or unused sick day pay will have this amount deposited into a 403(b) account that the employee has set up – per the PESPA contract on page 30.  If the employee has a 403(b) account already established, this payment will occur with the last pay date of June. If the employee has not set up a 403(b) account, the payment will be delayed until they do have a 403(b) account.

     

    Do retirees receive a lump sum payout in June?

    Employees who qualify for a retirement payout (e.g. years of service or unused sick days) will receive this amount only by deposit into a 403(b) account established by the employee.  This must be set up as a “pre-tax” 403(b).    This is a requirement per the PEA collective bargaining agreement (p. 44) as well as the PESPA collecting bargaining agreement (p. 30).  Information regarding eligible District 403(b) vendors that will help employees establish an account, may be found on the District website under Staff Resources Page.

     

    Why are PSERS years of service and PSD years of service different?

    Pennridge calculates your years of service based on your date of hire and date of retirement.  Service as a Long Term Substitute and breaks in service may impact this calculation.  Your PSERS retirement date is the day following your last day of work, unless you choose to delay your date of retirement. Usually this would be to reach a goal that requires age attainment, such as special early retirement.

     

    When do I have to notify the district and the state of my intention to retire.

    Each district employment agreement has their own specifications regarding timelines for intent to retire notifications.  PEA requires a 5-month notice with a February 1 deadline for end of school year retirements.  PESPA requires a 90-day notification of intent to retire.  Please consult your collective bargaining agreement for current requirements regarding intent to retire.

     

    What date should I use for my retirement?

    This decision should be made by you, your financial advisor/accountant and with direction from PSERS.  PSERS states that your retirement date is the day following your last day of work, unless you choose to delay your date of retirement. Usually this would be to reach a goal that requires age attainment, such as special early retirement.   Your termination date should reflect the last day of work or the last day of active service. If you are using a future date, please let us know.

     

     

    PSERS RETIREMENT PLAN QUESTIONS:

     

    WHAT IS VESTING?  AND HOW DOES THAT AFFECT MY RETIREMENT?

    Vesting is the number of years that must be worked in order to receive your contribution from the state.  This includes any additional contributions made by the School District you were employed by and the Commonwealth of Pennsylvania.  Meeting your vesting requirement will allow you to have secured benefit at retirement. Below is a chart of each membership and its vesting requirement:

     

    Membership Class

    Qualification

    Benefit

    T-C* or T-D

    At least 5 years of credited service

    Vesting or Deferring Retirement (Postponing receipt of your benefit)

    T-E, T-F, T-G, or T-H 

    At least 10 years of credited service

    T-C, T-D, T-E, T-F, T-G, or T-H 

    At least 5 years of credited service; meet medical eligibility and application submission requirement

    Disability Retirement**

    T-C* or T-D

    At least 5 years of credited service (Age 55 with 25 years of service with 3% - 15% maximum reduction)

    Early Retirement (Age Penalty Applied)

    T-E, T-F, T-G, or T-H

    At least 10 years of credited service

    T-C or T-D

    35 years of service regardless of age, or age 62 with 1 year of service, or age 60 with 30 years of service

    Normal Retirement (Superannuation)

    T-E or T-F

    Age 65 with at least three (3) years of credited service, or any age/service combination that totals 92 (“Rule of 92”) with a minimum of 35 years of service.  Example: A member age 57 with35 years of credited service (57 [age] + 35 [service] = 92) would total 92 and, therefore, would be superannuated.

    ​T-G

    ​Age 67 with at least three (3) years of credited service, or any age/service combination that totals 97 (“Rule of 97”) with a minimum of 35 years of service. Example: A member age 62 with 35 years of credited service (62 [age] + 35 [service] = 97) would total 97 and, therefore, would be superannuated.

    ​T-H

    ​Age 67 with at least three (3) years of credited service.

    * Special rules apply if you terminated public school employment before July 1, 2001.

    ** More details regarding eligibility for a disability retirement benefit are available in the PSERS publication, Let’s Talk About PSERS Disability Retirement Benefits.  

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    When can I expect to receive my first pension check? 

    PSERS explains there processing timelines on the retirement website.

      

    ADDITIONAL PSERS INFORMATION REGARDING RETIREMENT: