2021-2022 Retirement Basics - City of Portland, Oregon
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2021-2022 Retirement Basics
Today we will discuss the following:
Transition to Health Deferred
Retirement Insurance Compensation
Tools for decision making
• Create an online account on the Social Security website • Get personalized retirement benefit estimates using the new Retirement Calculator
• Create an Online Member Service (OMS) account today at www.oregon.gov/pers • View current account balance, see employment history, salary information, and generate and save a benefit estimate • Contact PERS with questions at 503-598-7377
Attend a PERS presentations held online with PERS via their website Request a written benefit estimate from PERS if you’re within 24 months of retirement Sign up with PERS for a Retirement Application Assistance Session (RAAS) within 90 days of retirement
When can I retire?
Tier One Tier Two OPSRP Pension IAP
If you began working If you began working Everybody on The City contributes
for a PERS employer for a PERS employer
on or before 12/31/95 before 8/29/03 or after 8/29/03 6% of your monthly
salary
Normal / Full 58 (or 30 years) 60 (or 30 years) 65 (58 w/30 Members retire from
retirement age P&F = age 55 or 50 P&F = age 55 or 50 years) IAP when they retire
w/25 years w/25 years from PERS
Early retirement 55 (50 for P&F) 55 (50 for P&F) 55, if vested Members retire from
IAP when they retire
from PERS
Retirement calculation Money Match, Full Money Match or Full Formula
methods Formula, or Formula + Formula
Various account
Annuity (if eligible) payouts or rollover
Full Formula benefit 1.67 percent general 1.67 percent general 1.50 percent general N/A
factor
Formula + Annuity 1.00 percent general N/A N/A N/A
benefit factor
Lump-sum vacation
payout
- Included in covered Yes Yes No
salary (6%)
- Included in FAS Yes No No N/A
Unused sick leave Yes Yes No N/A
included in FAS
The Top 10 Retirement Decisions
When to Retire
When to claim Social Security
Health Coverage
How much you can safely spend each year?
How much investment risk
When to pay taxes on investments
Where to live
Other ways to finance retirement
Whether to keep working
What you will do with your free time?
Source US News and World Report
Health Care Expenses
Did you know….
A non-Medicare eligible person entering retirement
today can expect to spend at least $9,000, per person
per year, for healthcare premiums and medical
expenses
Options for Health Insurance
Federal Exchange: Shop around for
City of Portland: Stay on the City of
coverage for you and/or your
Portland’s coverage until you
dependents through the Federal
become Medicare eligible.
Exchange.
Medicare/Supplement: Are you or
your spouse eligible to be on a Spouse’s Plan: Is your spouse still
Medicare plan? If so, you may save working? If so you can move onto
money by enrolling in a Medicare their group health plan.
Plan outside of the city.
PERS: Are you or your spouse
eligible to be on a Medicare plan? If Military/Tricare: If you were in the
so, you may save money by enrolling service, you can move over to the
in Medicare Plan outside of the city, military’s health insurance.
such as PERS Health Insurance.
Retiree Monthly Cost
• City of Portland Retiree’s pay 100% of their premium.
• The cost per month will depend upon what plans you are
enrolled in and your family size.
• Below is an estimate for the monthly Retiree Rates:
Retiree Family (3+)
Retiree + 1
Only $2,020
$1,440
$760
The complete list of monthly retiree rates is located online at
www.portlandoregon.gov/retireeWhen does my employee coverage end?
Coverage ends at the end of the month in which you leave,
unless you are PPA, PPCOA & PFFA member
• Notify your bureau that you are retiring at least 2 weeks
or more in advance
• When BHR receives a final check request, a retiree
enrollment packet will be sent to your home
• If you have other coverage, you do not have to return
any forms
• If you are Medicare eligible you are not able to stay with
your current plan
• PERS requires employees to retire on the 1st of the
month2021
If February 1st is your
PERS retirement date…
…your last day at work would be in
January, the previous monthCOBRA vs. Retiree Coverage
COBRA Retiree
• You will be sent both COBRA & Retiree Election forms in your
Retiree packet.
• As a retiree, complete & return the Retiree Election formPayment Option
ACH
Comes out
City of
Bank on the 6th of Portland
Account
each month
DebitThe plans are the same for both active
and retired employees
• Your ID numbers will not change after you retire.
• Create online accounts to access resources or order new cardsWhile on Retiree Coverage
Annual Open Enrollment every
May – June
Keep the benefits office updated
with current contact information
Can change plans if you move out of
the service or network
Moda Participants: You or dependents living outside of the service area will
access the PHCS network for in-network services
Kaiser Participants: If you move outside of Kaiser’s Service area you are no
longer eligible to continue Kaiser coverage; you could move to a Moda planLeaving & Coming Back
Prior to turning 65 or becoming Medicare eligible,
retirees can choose NOT to elect Retiree coverage
and return to City coverage at a later time if … :
• You’ve been enrolled in an employer/group
health plan
• You’ve been enrolled in a federal exchange
plan or individual plan*
• Proof of other coverage is required
* This provision is limited to one time per participant for
those who have had a federal exchange plan
or individual planWhat if I continue to work after I retire? • You can continue active employee coverage for 1 year & delay enrolling in retiree coverage • If you’re age 65, you can delay signing up for Medicare Part B because of the SEP (special enrollment period) and your creditable employer coverage • You would need to sign up for Medicare at least 60 days prior to your employer coverage ending; contact our office to get an “employer verification form” to submit to Social Security - Contact Mt. Hood Community College for free “Welcome to Medicare” class or SHIBA (Senior Health Insurance Benefits Assistance): 800-722-4134 - SHIBA in WA (800-562-6900) - Enroll in Medicare online at www.medicare.gov
Medicare Basics
Parts A and B are called original Medicare;
administered by the federal government
Part A
Hospital
Parts C and D are individual plans purchased
Insurance
through private insurance companies or
under a group such as PERS to supplement
original Medicare
Part D
Medicare Part B
Prescription has 4 Medical
Drug Plan Insurance
Parts
Part C
Medicare
Advantage
PlansLog on to view plans, rates, presentations
www.pershealth.comEmployee Assistance Program (EAP)
• FREE Counseling Sessions
• 30 minute free consultation
Eldercare/Child Care with an attorney
Services • Financial Coaching
• Eldercare Assistance
• Wills & Advanced Directives
assistance
To Access: (800) 433-2320
1. Go to www.cascadecenters.com www.cascadecenters.com
2. Click “Member Log-In”
3. Register as a new user
4. For Company Name enter: City of PortlandContinuing Life Insurance
You may choose to port up to
Minimum Amount: $20,000
$200K & continue to pay the same Maximum Amount: $200,000
active employee rates Supplemental
until age 75 Life Insurance
$200,000
Basic Life
Insurance
$50,000 Spouse/DP
A life Insurance
portability application Supplemental Minimum Amount: $20,000
Life Insurance Maximum Amount: $30,000
will be included in your
retiree packet $30,000
Dependent
Supplemental
Life Insurance
Minimum Amount: $5,000
Maximum Amount: $25,000Keep in mind… If you are enrolled in healthcare FSA, “spend” your contributions on or prior to your last day of work You can’t switch plans when you enroll in retiree coverage until the next open enrollment If you drop your dental coverage at the time of enrolling in retiree coverage, you can NOT re-enroll in dental coverage
City of Portland
457(b) Deferred
Agenda
Compensation Plan
Deferred Compensation
Basics
A 457(b) Deferred Compensation Plan is an important
retirement plan offered by the City, created to allow public Enrollment & Contribution Changes -
employees, like you, to set aside money from each Employee Self Serve (SAP CityLink)
paycheck toward retirement. A Deferred Compensation Plan
may help bridge the gap between what you have in your Deferred Compensation
pension and other retirement benefits, and how much you’ll Provisions
need for retirement, or simply add additional funds to your
retirement portfolio. Deferred Compensation
Before Retirement
The City’s Deferred Compensation plan (the Plan) is a
Deferred Compensation
voluntary plan available to eligible employees that helps you After Retirement
save for retirement on a tax-deferred basis.Deferred Compensation Basics
May contribute Traditional Pre-tax or Roth
Post-tax amount
IRS limit for 2021 is $19,500
Minimum contribution 1% of pay or $10 per
pay period
Electronic/paper election forms completed and
received by the 15th of each month are
effective the first payday of the next monthEmployee Self Service
(SAP CityLink)
Through your Employee Self Service Portal, you can:
• Enroll in Deferred Comp
• Increase/Decrease or change your Deferred Comp election
• Designate beneficiaries
• Stop your contributionsEmployee Self Serve
(SAP CityLink)
On a City computer, log on to your
Employee Self Service portal at
www.portlandoregon.gov/ep. Once
logged in, navigate to the Employee
Programs tab.
You’ll then be able
to see the Deferred
Comp categoryEmployee Self Serve
(SAP CityLink)
On a City computer, log on to your
Employee Self Service portal at
www.portlandoregon.gov/ep. Once
logged in, navigate to the Employee
Programs tab.
You’ll then be able
to see the Deferred
Comp categoryEmployee Self Serve
(SAP CityLink)
Be sure to review your plan
choices, then click SAVE.
You can save/print a summary
of your enrollments, or return to
the main menu.
* New enrollments entered in the system by
the 15th of the month will be reflected on the
first paycheck received the following month.
Enrollments entered after the 15th of the
month are reflected the month after.Deferred Compensation Provisions Age 50 Catch-Up • The regular contribution limit is $19,500 for those under age 50. The age 50 catch-up limit is $26,000 for 2021 (Normal $19,500 limit + $6,500 for 2020 = $26,000) • Qualify for this catch-up provision at age 50 (anytime in calendar year). 3 Years Prior to Normal Retirement Age (NRA) • The 3 Year Catch-up provision allows participants to make up contributions for prior eligible years where the maximum contribution was not deferred. • Available 3 years prior to Normal Retirement Age. May contribute twice the regular deferral limit ($19,500 + $19,500 = $39,000 for 2021). • This may change if the IRS announces new contributions limits. • One-time Application is required for the 3 Year Catch-up. • The maximum age to apply is 70 ½.
Before Retirement:
Deferred Compensation
Final Paycheck Election
You may elect on your final check when you retire to contribute your eligible payout accruals (based
on the union contract you fall under) to your Deferred Compensation Plan account.
You must meet the following requirements:
1. Have a City Deferred Compensation account established. It’s not too late to Enroll!
2. Return the Final Paycheck Election form to the Health & Financial Benefits Office prior to
your last day of work and prior to your final paycheck processing.
3. The contribution of your eligible payouts would have to fall within your maximum limit for
the year reduced by how much have already contributed for 2020.
If you are eligible for the 3 year special catch up, you may exceed the $19,500 in this
calendar year. For future catch-up years, the additional $19,500 may increase if the IRS
announces increased limits.After Retirement:
Deferred Compensation
When Can I Access My Money?
• Retirement or Termination of Employment
• Unforeseen Emergencies (Application Required)
What Can I Do With My Money After I Leave?
• Leave it the City’s Deferred Compensation Plan and begin mandatory minimum
distributions at age 72*
• Can move assets within the Plan just as you did as an active employee or rollover funds to an
outside Investment Provider.
• Start drawing money from the account (pay taxes on withdrawals). Set-up automatic payments
or take a lump sum distribution.
• You may choose to receive your payments by specific amount, specific period, or a lifetime
payment (an annuity) to be payable monthly, quarterly, semi-annually or annually.
• Rollover to qualified plans (traditional IRA, 403(b), 401, and other government 457 plans) are
permitted. 457 assets rolled to a non-457 plan may not be rolled back to a 457 plan.Deferred Compensation Contact
• Create online access to your account
• Meet with a local Voya Rep to review investment
allocations or financial planning assistance
• Online appointment system
• 503-937-0378
Participants can:
• Contribute to both options and/or rollover prior • Complete electronic beneficiary
retirement funds elections
• Apply for unforeseen emergency withdrawals • Manage Voya changes through
custom websiteQuestions? We are Here to Help!
Debi Danielson
Retiree Coordinator
(503) 823-6240
Debi.Danielson@portlandoregon.gov
Anne Hogan
Benefits Analyst
(503) 823-6228 View rates, retiree checklist
Anne.Hogan@portlandoregon.gov & other presentations online:
www.portlandoregon.gov/retiree
General Benefits Line
Deferred Compensation Questions
(503) 823-6031
benefits@portlandoregon.gov
Retiree Benefits
Email Inbox
retireebenefits@portlandoregon.govYou can also read
