1	Retirement Preparation
2	History Created in 1943 through an Act of the Georgia General Assembly First monthly benefit paid in 1946 $48.00 __________________________________________ TRSGA is a defined benefit plan under 401(a) of IRS code (mandated and guaranteed for life under Georgia law). Examples of defined contribution plans: VALIC, TIAA-CREF, Fidelity, Lincoln, etc. These plans are voluntary (or supplemental).
3	Our Mission To provide exceptional service in the administration of pension benefits and related services to TRSGA members, retirees and employers.
4	Our Vision To be the model Retirement System providing comprehensive customer service to TRSGA members, retirees and employers.
5	TRSGA Highlights Financial 3 Sources of Income Employee Contributions (5%) Employer Contributions (9.24%) Investment Income (majority of income) Total Assets Approximately $39.3 Billion $1.6 Billion (+) Investment Income For Fiscal Year ‘03 Statistical Active Members 227,000 + 33% Vested Retirees 58,000 + Monthly Payroll Over $129 Million. Annual Payroll Over 1.4 Billion
6	Creditable Service Membership service Withdrawn service Military service Out-of-state service Study leave service Retroactive Service State of Georgia employment
7	Creditable Service Visiting Scholar Service Maternity Leave Service All service purchases may be made by a rollover from another qualified plan. *Examples: 401(k), 403(b), 457 Governmental Plan, IRA’s (with the exception of Roth IRA’s) and 401(a)
8	Private School The employment must have been on a permanent not less than half-time basis with a private elementary or secondary school or any private college or university located in the State of Georgia; The private school must have been accredited by the Southern Association of Colleges and Schools, the Georgia Accrediting Association or a nationally recognized accrediting agency by the State Board of Education; The member must have completed at least five consecutive years of membership service in the public schools of Georgia or the University System of Georgia immediately prior to applying for the first year of private school service; and With the completion of each additional year of Georgia service thereafter, a member may establish a year of private school service, to a maximum of ten years. Must pay full actuarial value.
9	Air Time Allows up to 3 years of service credit to be purchased by members with at least 25 years of service (specific conditions apply). Must pay full actuarial value.
10	Unused Sick Leave Credit Sick leave credit is awarded to members who retire on or after July 1998, and it can only apply to Georgia teaching service. The employer must certify unused sick leave at the time the member applies for retirement Sick leave cannot be used for vesting; member must have10 years of service with TRS to qualify for any credit for unused sick leave Member cannot be paid for unused sick leave and get credit for the time toward retirement The maximum amount that may be accumulated in one year is 1¼ days per month of actual service. Must have 60 days to qualify for credit. Eight hours equals one day and twenty days equals one month.
11	Sick Leave Calculation The number of unused sick leave days reported will be divided by the number of years for which there are records. This will provide an average number of days per year that you did not use. This average is then multiplied by the number of years for which there are no records. The estimated days are added to the reported number of days to determine a final number of unused sick leave days.
12	Sick Leave Calculation John worked for 26 years in a position covered by TRSGA. The first 10 years, he worked for County A, where unfortunately, the records were never kept. The last 16 years, he worked in County B, which has kept their records. County B reports that over his 16 years with them, he retained 100 days of sick leave. 100 days/16 years = 6.25 average unused days/year 6.25 days/year X 10 years = 62.5 estimated days 62.5 estimated days + 100 days = 162.5 days 162.5 days = 8 months
13	Unused Sick Leave Conversion Chart
14	Eligibility for Retirement Service retirement 30 years of creditable service regardless of age 10 years of creditable service and age 60 Disability retirement 9½ years of service and permanently disabled
15	Eligibility for Early Retirement 25 years of creditable service Must have an active account Penalties apply - lesser of: Benefit reduced by 1/12 of 7% for each month below age 60, or Benefit reduced by 7% for each year or fraction of year below 30 years of service Note: not eligible for COLA until member reaches age 60 or would have attained 30 years of service
16	Retirement Plans Plan A- Maximum Plan B Option 1 Plan B Option 2 Plan B Option 3 Plan B Option 2 & 3 pop-ups Plan B Option 4
17	Plan A - Maximum Produces the largest possible monthly benefit for the member All benefits stop at the death of the member If the death of the retiree occurs before accumulated contributions and interest have been paid out, the balance will be paid in a lump sum to the beneficiary. In most cases, the total contributions and interest will be depleted within 18 months of retirement Beneficiary designation may be changed after retirement
18	Plan B - Option 1 Member accepts a small reduction from maximum monthly benefit At member’s death, all monthly benefits stop Extends the time period of member’s contributions and interest that are used to pay the annuity portion of the monthly benefit, generally 10-14 years Any remaining portion of the member’s contributions will be refunded in a lump sum to the beneficiary
19	Plan B - Option 2 Member receives a reduced monthly benefit based on their age and their beneficiary’s age Upon death, the named living beneficiary will receive for life the same monthly benefit as the retiree received at the date of retirement, plus cost-of-living increases
20	Plan B - Option 3 Member receives a reduced monthly benefit based on their age and the age of their beneficiary Upon death, the named living beneficiary will receive a lifetime benefit of one-half the initial monthly benefit for life as the retiree, plus one-half the cost-of-living increases
21	Plan B - Option 2 & 3 Pop-ups Receive a monthly benefit based on age and beneficiary’s age Upon death, the named living beneficiary will receive a monthly benefit for life, plus cost-of-living increases If the beneficiary predeceases member, monthly benefit for retiree will “pop-up” to the Maximum Plan
22	Plan B - Option 4 Allows the member to specify a monthly amount, other than that provided for in the other options, to be paid to a beneficiary at the member’s death May be a dollar amount or a percentage
23	Comparison of Retirement Options
24	Changes in Plan of Retirement & Beneficiary If the member selects a survivorship option, and the beneficiary predeceases the member, the member may change their beneficiary. If the member selects a survivorship option, with the spouse as beneficiary and they subsequently divorce, the member may change their beneficiary. If one of these occur and you change your beneficiary, the resulting benefit would be of the same actuarial value as the benefit you were receiving prior to the change.
25	Retirement Benefit Formula 2% multiplier 2 times your years of creditable service Maximum of 40 Based on highest paid consecutive 24 months of service
26	Example Retirement Date 7/1/2004 Plan A - Maximum plan
27	Example Retirement Date 7/1/2004
28	When Should You Apply for Retirement? May apply no earlier than 180 calendar days (6 months) before your anticipated retirement date Should apply no later than 2 full months from your effective date of retirement in order to receive your first check in the month in which you retire Call the TRSGA office well in advance of your retirement date and get an estimate of your monthly benefits. No surprises!
29	Important Tips Even if you have a number of years before retirement, you should pay attention to your Membership Statement from TRS each year. This is a picture of your active account and reflects the following: contributions and interest in your account service credit - years of service beneficiary designation Be sure all your creditable service is established well in advance of your retirement
30	Service Enhancements Call Center Improved Website
31	Call Center Hours of operation are Monday through Friday 7:30 A.M. to 6:00 P.M. Will be immediately connected with one of 12 highly trained customer service representatives No more recorded menus to navigate through Average of 500-600 daily calls handled by the call center staff with 97% of the calls currently being handled by speaking with only one (1) TRSGA representative (800) 352-0650 (only within Georgia) or (404) 352-6500. Peak call volume at 4:00 P.M.
32	Website www.trsga.com Easier to navigate Clearly defined areas for active members, retired members and employers Pension calculator E-mail request capability Future ability for active and retired members to view and change “member specific” information with user ID and password Current ability for retired members to access READ ONLY information
33	In Closing… Questions???