Young money - WEA Member Benefits

your $
A magazine from WEA Trust Member Benefits
™
WINTER
Young money
Ryan Robarge plans to retire
your insurance
What goes into your auto insurance rates?
your account
Tips for jumping through 403(b) TPA hoops
your kiosk
2010 Guaranteed Investment rate
Share your benefits with your family
Pop Quiz: Test your financial knowledge
weabenefits.com
2010
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your
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{
™
CONTENTS
WINTER 2010
3 YOUR ACCOUNT
- 403(b) fees to change.
- Watch for your 1099R.
6
- Do you qualify for Saver’s Tax
Credit?
4 YOUR INSURANCE
4
9 YOUR ACCOUNT,
6 YOUR STORY
10 YOUR KIOSK
- Want to convert an IRA? This may
be the year for you.
- What goes into your auto
insurance rate?
- First-year teacher Ryan Robarge
prepares for retirement.
CONT.
- Why 403(b) transactions involving
TPAs can take longer.
- Family members share the benefits.
- 2010 Guaranteed Rate.
- Pop Quiz: Test your financial
knowledge.
{
president’s letter
9
© 2010 WEA Member Benefit Trust
All Rights Reserved
Dave Kijek, President/CEO, WEA Trust Member Benefits
Start saving early and have no regrets later
2
American workers
admit they save too
little, too late. In fact,
nearly half of those in
the workforce—and
a third of those who
have already retired—
say saving too late is
their biggest financial
regret.
Getting motivated
to put money aside for something as
distant and nebulous as retirement can
be a challenge when you’re just starting
out. But, finding even a small amount
early on to contribute to a retirement
savings account can significantly impact
when and how you retire.
Member Ryan Robarge has the right
idea. He’s a first-year educator making
sure to invest in his future right from
the start. I know he won’t regret it. And
hopefully he’ll pass along this wisdom to
others.
Speaking of wisdom, have you
heard about Words of Wisdom? We’re
collecting advice for future education
professionals. Take a moment to provide
a new or future educator with the advice
you wish you would’ve had. See page 8
for more details.
Finally, I would like to welcome the
Milwaukee Public School employees.
They finally have access to our WEA TSA
Trust’s 403(b) program. We are happy to
be able to provide these members with
a quality, low-cost retirement savings
option.
As always, we are here for you. Let
us help you in 2010 with your personal
insurance and retirement savings needs.
P.S. Check out the Guaranteed Rate for
2010 on page 10.
weabenefits.com
{ your account
IRA and 403(b) News
If your d
istr
works w ict
ith
a TPA,
see pag
e 9.
403(b) fee change
Effective June 1, 2010, the WEA TSA Trust’s annual administrative fee
will increase from 0.32% to 0.35% (an increase of 30¢ per $1,000), and the
annual fee cap will increase from $225 to $300. This minor fee increase is
the result of a recent program evaluation and fee analysis and is necessary
to continue to provide the superior levels of service and best-of-class
products you are accustomed to receiving. As a not-for-profit, we are
committed to keeping fees low so more of your money is working for you.
This is only the second fee adjustment in 18 years.
Watch for your 1099R
If you took a reportable distribution from your WEA TSA Trust and/or
WEAC IRA account(s) during 2009, we will send you a 1099R to the address
we have on file on or before January 31, 2010.
Do you qualify for the Saver’s Tax Credit?
The Saver’s Tax Credit allows retirement plan participants with annual
adjusted gross income of up to $26,000 (filing individually) or $52,000
(filing jointly) to save on their federal income tax. The maximum annual
contribution eligible for the credit is $2,000 per person. The rate is based
on your income in the taxable year for which you claim the credit.
WEAccess user ID and passwords
A PIN was assigned to you when you opened your TSA or IRA
account. For a PIN reminder, call the Account Information Line at
1-800-279-2490 or go to weabenefits.com and click on Access Your Account.
Contribution limits unchanged for 2010
Contribution limits for 403(b) accounts will remain at $16,500 for 2010.
Employees age 50 and older can contribute an additional $5,500 for a total
of $22,000. If you have 15 years or more of service with your employer, you
may have an additional “catch-up” opportunity. IRA contribution limits will
remain at 5,000 for 2010. If you are age 50 or older, you may contribute an
additional $1,000 to your IRA.
IRA conversions in 2010
The IRS lifted the conversion cap on Roth IRAs (effective January 1, 2010),
allowing workers at any income level to take advantage of the Roth. When
converting a Traditional IRA to a Roth, you will have to pay income tax on the
entire amount converted. However, the IRS is allowing you to spread your
taxes over two years. Convert in 2010 and you won’t have to pay taxes on
the conversion until 2011. Please note that at the time of this printing, this
applies to federal taxes and not Wisconsin state taxes. This is for informational
purposes only and not intended to be legal or tax advice. Consult your tax-advisor or attorney
before taking any action.
$2.1
billion
Participant assets held
in the WEA TSA Trust and
WEAC IRA programs.
$5k
2010 contribution limit for IRA.
Add an extra $1,000
if you are age 50 or older.
4.15.10
The last day to make IRA
contributions for the 2009 tax year.
Contributions must be
postmarked by April 15, 2010.
63
Average retirement age in
the U.S., according to
the U.S. Census Bureau.
20%
The percentage of the average
American’s lifespan that will
need to be funded with
retirement savings.
Winners!
Pictured here with Dave Kijek and WEAC leadership are Anne
Feyen, Glorie Salas, Paul Jutrzonka, Sally Conway, and Michael
Parkinson. These WEAC members were winners of prizes donated by
WEA Trust Member Benefits at the 2009 WEAC Convention in Milwaukee.
weabenefits.com
3
{ your insurance
YOUR ROAD MAP
Auto insurance rates can vary dramatically from
So what exactly do insurance companies look at when
factors insurance companies consider and explain why
A
uto insurance can be confusing.
Or maybe the better phrasing
is: auto insurance is confusing
to most of us. You get a quote
from Company A and it’s significantly
different than a quote from Company B.
Why is that?
Auto insurance rates are affected by a
combination of factors—many of which
are unique to each insurance company.
One company may look at your credit
history to help determine your rate, while
others won’t. Some companies may look
back three years in your driving history
for traffic violations and accidents, while
others only look back two years.
Insurance companies also offer different
coverage amounts and deductibles. It’s
{
4
WANT MORE?
Find and compare
vehicle safety ratings
iihs.org/ratings
safercar.gov
Vehicles most frequently
targeted for theft
nicb.org
hldi.org
important to understand that when you’re
comparing quotes, not only do insurance
companies use different factors and data
to compute rates, but their coverages can
also vary. So before you automatically take
the cheapest insurance you can find, ask
yourself whether the coverages and limits
are appropriate for you and your situation.
Credit history
More and more insurance companies
are using consumer’s credit histories as a
factor in determining not only your auto
insurance rate but also whether they will
insure you.
It might seem that credit history would
have nothing to do with insurance, but
insurers have found a correlation between
credit scores and claims.
In 2004, the Texas Department of
Insurance studied the claims records of
two million insurance policies. The study
found that people with lower credit scores
were more likely to file insurance claims
than people with higher scores. The 10% of
policyholders with the worst credit scores
were 1.5 to 2 times more likely to file an
auto claim than the 10% of policyholders
with the best credit scores.
How heavily your credit score will
be weighed depends on the insurance
company. WEA Property & Casualty
Insurance Company (WEA P&C)
currently does not use credit scores in
determining insurance rates.
Driving record
Traffic violations and accidents on your
driving record can translate into higher
auto insurance costs.
Each insurance company has its own
procedure rules that determine:
1. Who they will and will not insure
based on an individual’s driving
record.
2. The rate increases and/or surcharges
applied for traffic violations and
accidents.
3. How far back they look at your
driving history.
In addition, the driving record of any
licensed driver in your household (such
as your spouse or child) can affect the
decision of the insurance company to
insure your vehicle(s). It can cause you to
be turned down for insurance coverage or
to pay higher insurance premiums.
Age
Drivers between the ages of 16 and 25
are statistically considered the least safe
age group on the road—a fact that is often
weabenefits.com
TO AUTO RATES
company to company—and even vehicle to vehicle.
determining your rate? We list some of the biggest
rates can vary.
2010 TOP SAFETY PICKS
LARGE CARS
• Buick LaCrosse
• Ford Taurus
• Lincoln MKS
reflected in higher premiums.
According to the Insurance Institute for
Highway Safety, the crash rate for 16–19
year-olds is four times higher than drivers
age 20 and older. Thus, as anyone with a
teenage driver knows, adding a teen driver
to the family policy can significantly
increase your auto rates.
“The good news is that most auto
insurance companies give rate reductions
at age 21 and again at age 25 (assuming the
driver has a clean driving record),” explains
Skip Miller, Underwriting Manager at
Member Benefits. “WEA P&C not only
gives rate reductions at these ages, but also
at ages 17 and 19.”
In addition, WEA P&C Company gives
students a 20% discount on their premium
if they obtain a 3.0 GPA or higher.
Vehicle choice
Vehicle price, cost to repair, loss
experience, performance, size, and safety
rating are all important to auto insurance
companies. Vehicles that tend to be
involved in more accidents, incur more
damage, and involve more bodily harm
to passengers when in accidents will likely
carry higher insurance rates.
“If you want a lower auto rate, you
should avoid vehicles that rate low in
weabenefits.com
crashworthiness (e.g., small, light vehicles
such as sports cars), vehicles that are not
considered to be top-of-class in safety, and
expensive vehicles that will cost a lot to
repair,” says Miller.
Another important factor is whether or
not your vehicle is on the list of those most
frequently targeted for theft. The National
Insurance Crime Bureau (NICB) and the
Highway Loss Data Institute (HLDI) track
the most commonly stolen vehicles. The
NICB list tends to track all vehicles on the
road (often meaning the most popular cars
are the most commonly stolen), while the
HLDI tracks results based on the number
of insured vehicles on the road (meaning
those with higher theft claims top the list).
Location
Auto insurance rates can vary
significantly depending on where you live.
Factors such as the amount of traffic in
your area, urban vs. rural areas, number of
car thefts, and accident rates can all play
into your rate.
The amount of miles you commute to
work can also play a role. Some insurance
companies will rate different for someone
driving 10 miles to work versus someone
driving 50 miles.
MIDSIZE CARS
• Audi A3
• Chevrolet Malibu built after
November 2009
• Chrysler Sebring 4-door with
optional electronic stability
control (ESC)
• Dodge Avenger with optional ESC
• Mercedes C class
• Subaru Legacy
• Subaru Outback
• Volkswagen Jetta sedan
• Volkswagen Passat sedan
• Volvo C30
SMALL CARS
• Honda Civic 4-door with optional
ESC, except Si
• Kia Soul
• Nissan Cube
• Subaru Impreza except WRX
• Volkswagen Golf 4-door
MIDSIZE SUVs
• Dodge Journey
• Subaru Tribeca
• Volvo XC60
• Volvo XC90
SMALL SUVs
• Honda Element
• Jeep Patriot with optional side
torso airbags
• Subaru Forester
• Volkswagen Tiguan
Source: Insurance Institute
for Highway Safety.
5
{ your story
Ryan wisdom
YOUNG
MONEY
MODEL
Eau Claire, Wisconsin
R
6
● Don’t be afraid to ask
questions. It’s the only way
you’re going to figure it out.
● Figure out your budget.
Put a budget together and see
where you spend your money. You
should be able to find a few bucks
here and there to put away.
● Don’t wait. If you don’t do it
right away, you put it off and put it
off. You just have to do it.
● Start small. Start saving
something now, and look for ways
to increase your contributions
from there.
● Make it automatic. Use
payroll deduction or have the
money transferred electronically
from your bank account. It’s easy
and you’ll learn to live without it.
Ryan Robarge
yan Robarge is planning to
retire…someday. He’s just 25
years old, and while retirement
is the furthest thing from the
mind of most people his age, he’s thinking
and planning ahead. “I’m not sure it’s
possible, but I’d like to retire by age 55 or
60. That would be ideal.” Ryan is a firstyear teacher at Sam Davey Elementary in
the Eau Claire School District, and he’s
contributing to two retirement savings
accounts—a Roth IRA and a 403(b).
The average retirement age in the U.S.
hovers around 63, so if Ryan is successful,
he’ll be retiring early. The desire to retire at
an age when you’re still young enough to
enjoy it is shared by the majority of working
Americans according to an MSN survey.
Unfortunately, many will be disappointed
because the Retirement Risk Index
indicates that 50% of today’s households
will not have enough retirement income to
● Get out there and
research. A lot of people don’t
know what a 403(b) or Roth IRA
is. That’s okay. Go to seminars
and learn.
maintain their pre-retirement standard of
living, even if they work to age 65.
The earlier the better
Retiring early requires some early
planning. “The reality is that if you
want to retire early, you have to save a
lot of money,” says Michelle Slawny, a
Certified Financial Planner™ and
Senior Retirement Income Consultant at
WEA Trust Member Benefits. She works
with educators who are preparing to retire.
“Ryan has started his career off by
making a really good financial decision,”
says Slawny. “His chances of retiring early
are greater because he’s taking advantage of
his greatest asset—time.”
When it comes to retirement planning,
people often underestimate the importance
of saving early. Fortunately for Ryan,
family members encouraged him to start
investing for his future as soon as possible.
“I’m seeing more people who are 5 to
10 years from retirement who are NOT
on track to meet their retirement goals.
They have their heart set on retiring early,
but the fact is they just don’t have enough
money saved,” Slawny says.
Getting motivated
Ryan could be the poster child for what
new educators—and young people in
general—need to be doing when it comes
to retirement savings. But, the fact is that
saving for retirement is not a priority for
the 20-somethings just starting out in
the workforce. “It’s a mind set that needs
to change,” says Slawny. The benefits of
early saving are many. Of course there’s
compounding interest. “It’s a beautiful
thing,” says Slawny, “but on a very basic
level you are doing two important things
when you save for retirement. First, you’re
putting money away for your future,
weabenefits.com
and second, you are learning to live on
less. Both will help you in retirement.”
Most people don’t realize that the typical
retirement calculation is based on your
ability to live on 80% of your current
income.
So far, so good
It’s only been a few months since Ryan
started his accounts, but he is comfortable
with his new savings habit. “My 403(b)
contributions are taken out of my
paycheck every two weeks, and the Roth
IRA money comes out of my checking
account automatically. It’s easy. I don’t
even realize it’s gone because it’s never
really been there for me to access.”
Like most college graduates, Ryan has
student loans, a car payment, and other
expenses that make it difficult to think
about saving for retirement.
“The economy makes it tough, too,”
says Ryan, “but if you put a budget
together and really see where and how you
spend, you can find $20 or more to put
away. It’s so easy to blow $20 or even $100
in a weekend. If you look, you’ll find the
money.”
Slawny sees the economic situation as
an opportunity for investors of any age,
but especially for the young. “This is a
great time to start investing because when
the market is down, you’re buying shares
at a reduced price. Everything is on sale.”
Ryan acknowledges that thinking about
retirement 30 years from now is hard. “It’s
hard to set money aside for something
that’s so far off. Yet, you have to realize that
it’s money for your future. I don’t have a
lot of extra money to save, but I’m starting
small and hope it will grow from there.”
Increasing the contribution is key, says
Slawny. “When your discretionary income
gets a raise, either from increased salary
or reduced expenses—say you pay off
a loan—you need to give your savings a
raise, too.
It’s a journey
Growing your savings to a level that will
support you in retirement is a journey. The
mere fact that you’re saving is not going
to guarantee a financially sound retirement
and definitely not an early retirement,
according to Slawny.
Granted, Wisconsin public school
employees will receive retirement income
from the Wisconsin Retirement System
weabenefits.com
Retirement Reality 4
Don’t expect to retire based on how others have done it. You must
look forward and recognize that the landscape has changed. Here
are retirement realities you need to be prepared to deal with.
4 You need to save more on your own
According to the Center for Retirement Research at Boston College, there has been
a shift from a defined benefit plan where workers receive pension benefits based
on years of service and final salary to a self-funded model where individuals are
responsible for their own savings. Their research shows that the percentage of defined
pension benefits decreased nationally from 62% in 1983 to 12% in 2007, while the
percentage of 401(k)-only pension plans increased from 17% in 1983 to 63% in 2007. Be
aware of the new landscape, know that your retirement picture will be different from
that of your parents or older colleagues, and be proactive. Take advantage of 401(k) or
403(b) savings options, as well as IRAs, to help you achieve your retirement goals.
4 WRS Formula Benefit Calculation has changed
Wisconsin Act 11, passed in 1999, modified the way the WRS formula benefit is
calculated, giving years prior to 1999 greater value. As time passes, more members will
have a greater number of years applied after 2000, reducing their WRS benefits.
4 Second- or late-career educators short on WRS years
Education professionals who started late or made a career shift may not have enough
time to accumulate the 30 years of service required to reach an unreduced WRS
benefit. More of your retirement income will have to come from other sources. Beef up
your personal savings to help cover the gap.
4 Social Security full benefit age is now 67
At any given retirement age, Social Security benefits will replace a smaller fraction
of pre-retirement earnings as full retirement age rises from 65 to 67. Social Security
income replacement rates for the average earner retiring at age 65 is projected to be
approximately 28% in 2030, down from 41% in 2002 (after personal income taxation).
4 Health insurance costs are number 1 concern
Health insurance is the number one retirement issue whether you are thinking of
retiring early or at age 65 (when you are eligible for Medicare). Someone retiring today
at age 57, for example, would need over $100,000 to pay for a single health insurance
policy for 8 years until they qualify for Medicare. (This assumes current monthly
premiums of $700 and 8% annual increases.) In addition, another $150,000 will be
needed to cover Medicare Part B and Medicare supplement insurance from age 65 until
age 85.
(WRS), which may replace up to 50% of
your income needs if you have 30 or more
years in the system. However, Slawny
warns that there are some sobering realities
to be aware of that are contributing to
the retirement challenge facing many
Wisconsin public school employees.
In her experience, Slawny says there
are five things that generally contribute
to members having their retirement plans
delayed.
• Not saving enough on your own.
• Changes to the WRS formula benefit
calculation in 1999.
• Increase in Social Security full benefit
age to 67.
• Changes to employer-paid postemployment benefits.
• Health insurance cost, which Slawny
refers to as the greatest ruiner of
retirement.
(See sidebar above for more details.)
“I love giving members the green light
for retirement,” says Slawny. But, when
members are not on track to meet their
goals, their options are to work longer,
Continued on page 8
7
spend less in retirement, save a lot more,
and/or get aggressive with their investment
strategy.
Instructions not included
Another reason Ryan feels it’s difficult
for young people to save is that they
don’t really know much about investing
and where to start. “It’s scary. I didn’t
know much about investing, but I knew
I wanted to invest money in addition to
what was being put aside for me in the
Wisconsin Retirement System.”
With encouragement from Ron “Duff”
Martin, President of the Eau Claire
Association of Educators, Ryan attended
one of the monthly seminars offered by
the association—Finances 101 presented
by Ana Bonjour of WEA Trust Member
Benefits.
“Ana provided really good information,
and I left with a good understanding of
what I should be doing as a new educator.”
Ryan later enrolled in both the 403(b) and
Roth IRA offered through WEA Trust
Member Benefits. “She basically said,
‘here’s what you need to know, here are
your options, and here’s what we’re about.’
There was no pressure.”
“What stood out for me were the
unique things that make Member Benefits
different, like that it’s a not-for-profit
and that it was created specifically for
Wisconsin public school employees.”
Ryan has contacted Ana a few times
since enrolling. “The customer service
is excellent. You don’t get a computer.
You always talk to someone. And when
she wasn’t available, Ana has been really
prompt in returning my calls and e-mails.”
Ryan’s retirement plans
I do love Wisconsin and the outdoors.
I would love to invest in land someday. I
know it’s expensive, but hopefully if I do
things right when I do get that…” He
starts to say “old” but corrects himself. “…
when I get to that age, I will have the funds
to live comfortably and do some things I
want to do.”
You can do it
Achieving your retirement goals,
whether you plan to retire at age 50 or
70, requires you to take some action.
Plan, save, and save some more. Be
aware of factors that will impact your
retirement plans, and don’t expect to
get there the same way your parents or a
former colleague did. “New educators will
likely face greater financial pressures and
challenges as they work toward retirement.
Be proactive: save early and save more,”
encourages Slawny.
{ MEMBER PROFILE
Ryan Robarge is a first-year physical
education teacher in the Eau Claire
School District. He also coaches freshman
basketball. He grew up in Chetek in
northwest Wisconsin, and after graduating
from UW LaCrosse, he returned to the area
and subbed for two years before landing a
full-time position at Sam Davey Elementary
this year. “It’s a perfect position for me. I
love working with children and watching
people learn and grow. I just like to be
around the whole learning process. Every
day is a little different. I really love it.”
TSA program securities offered through WEA Investment Services,
Inc., member FINRA.
The Trustee for the WEAC IRA program is First Business Trust &
Investments.
Words of Wisdom
What piece of advice would
you give to a new educator?
weabenefits.com
◊ Share your Words of Wisdom
◊ View videos
◊ Read advice from your colleagues
8
weabenefits.com
JUMPING
THROUGH
No getting around it—when a TPA is involved,
403(b) transactions take more time. There
are more regulations, more people involved,
more paperwork. Here’s an explanation of the
problem and tips to minimize your frustration
and expedite the process.
F
or the last two years, school districts
have been adjusting to new 403(b)
regulations that increased their
responsibility and added more
stringent compliance requirements. Some
districts chose to contract with third-party
administrators (TPAs) to help them manage
their 403(b) plans.
The problem, according to Lisa Ritschard,
Retirement and Investment Assistant
Manager at WEA Trust Member Benefits, is
that participants in districts using a TPA are
experiencing frustrations when requesting
account transactions. These frustrations,
she says, are primarily due to delays.
“Unfortunately, there are more hoops to jump
through, which adds time.”
Where it used to be just you—the account
holder—and your 403(b) provider, now
there is the district, the provider, the IRS,
and the TPA. “Participants accustomed to
working directly with us on transactions need
to recognize that things are different now,”
says Ritschard. “We continue to have high
standards for quick processing, but we have
little control over the TPA processing.”
If you have a 403(b) in a district that works
with a TPA—even if you are retired or don’t
weabenefits.com
work there any longer—add 2–3 weeks onto
the processing time for your 403(b) requests,
Ritschard suggests. This is because all
403(b) transactions, including withdrawals,
exchanges, and transfers, must go through the
TPA. Each TPA has its own set of forms and
processes.
Further delays may be experienced if a
participant sends in an incomplete form or is
requesting a transaction that requires a letter
of eligibility from the school district, such as
a qualified withdrawal. Planning ahead and
making sure to thoroughly read and fill out all
required forms is key.
What should you do?
“Call us first,” says Ritschard. “We can tell
you exactly what you need to do to complete
the desired transaction, including how to
contact the TPA and what forms you will need
to fill out. We can even walk you through the
forms if necessary.”
Who does this impact?
If you made contributions to a 403(b)
after January 1, 2005—even if you are now
retired or separated from service—you are
forever connected to the district plan and the
TPA (if there is one).
Getting through the
hoops unscathed
Plan ahead
If a TPA is involved, add 2–3 weeks
onto the transaction. That’s just
how long it takes.
Call us first at 1-800-279-4030
We are very familiar with how the
TPAs work. We can tell you who
to contact, what forms you need,
and we can even help you fill out
the appropriate forms.
Read and complete all
forms carefully
Incomplete forms will be sent
back to the participants, adding
even more time to the process.
Follow up with the TPA
Keep track of your transaction by
keeping a log of when forms were
completed and who you talked
to and when. Call the TPA periodically to check on the status of
your request.
9
{ your kiosk
Grow the family. Share the benefits.
As a Wisconsin public school employee, you have the unique
opportunity to participate in the insurance and retirement savings
programs offered by WEA Trust Member Benefits. Did you
know that your family—including your spouse, children,
You
grandchildren, parents, and parents-in-law—may
also participate in many of these great programs?
Plus, once enrolled, you and your family can continue
Children
Spouse
participating in these programs even if you leave or change
jobs.
Parents
✓ Auto Insurance
Grandchildren
✓ Homeowners/Renters/Condo Insurance
Parents in-law
✓ Additional Liability Insurance
✓ WEAC IRA (Traditional and Roth)
✓ Retirement Income Analysis
To learn more, give us a call at 1-800-279-4010 for personal
insurance or 1-800-279-4030 for retirement savings and
investments.
Restrictions may apply. Wisconsin residency required.
{ FEEDBACK
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10
UAL
GUARANTEED ANN
FOR
RATE OF RETURN
2010
5.0%
*
WEA TSA Trust & WEAC IRA Guaranteed Investm
Investment
More info at weabenefits.com
*Interest is compounded daily to produce a 5.0% annual yield prior to the deduction of administrative fees of the WEA TSA Trust and
WEAC IRA program. Principal and net credited interest are fully guaranteed by Prudential Retirement Insurance and Annuity Company.
Such guarantees are based upon the strength and claims-paying ability of the insurance company issuing the contract.
weabenefits.com
POP QUIZ
1. Pre-tax 403(b) contributions are:
Just one more way the
WEA Trust makes a
difference ...
2. What percentage of your Wisconsin
Retirement System contributions are made
by your employer?
As of January 1, 2010, the Trust will
cover health insurance premiums
of Trust health plan members who
have been laid off, based on years of
coverage by the Trust.
3. Flex spending accounts allow you to:
For more information, visit
weatrust.com or talk to your field
representative.
A. Taken out of your salary before taxes.
B. Taxed before being deducted from your pay.
C. Exempt from taxes.
A. 50%
B. 75%
C. 100%
A. Decide how often you want to receive your paycheck (i.e.,
biweekly, monthly).
B. Pay for out-of-pocket medical and dependent care expenses
with tax-free money.
C. Purchase life insurance through your employer with taxfree money.
4. Roth IRA contributions are:
Defining Excellence.
Delivering Value.
THE TRUST DIFFERENCE.
A. Taxed now as regular income, but all qualified withdrawals,
including interest you earn, are tax-free when you withdraw
the money.
A. Pre-tax contributions, meaning you don’t pay taxes until
you start taking money out of the account.
B. Made by your employer as part of your retirement pension
plan.
5. FICA is Social Security tax that is:
A. A percentage of your income paid solely by the employer.
B. A percentage of your income paid solely by the employee.
C. A percentage of your income that is split equally between
the employer and the employee.
6. You have until what date to make IRA
contributions for the 2009 tax year:
A. Too late! It was December 31, 2009.
B. January 30, 2010.
C. April 15, 2010.
e
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t
f
o
n
io
t
a
n
la
p
x
e
n
For a
quiz answers, go t/opopquiz
weabenefits.com
Answers: 1. A 2. C 3. B 4. A 5. C 6. C
weabenefits.com
Personal Loan Special:
6.5
%*
APR
Borrow up to
$3
$3,000 for 24 months.
800-457-1142 . weacu.com
*Membership eligibility required. APR = Annual
Percentage Rate. Approval subject to normal credit
standards. Repayment example: $3,000 for 24 months at
6.5% APR is $133.62. Restrictions apply.
11
PRESORTED
STANDARD
US POSTAGE
PAID
MADISON WI
PERMIT NO 2750
PO Box 7893, Madison, WI 53707-7893
I believe...
I belIeve every KId deserves a Great school. Wisconsin’s public schools are among the very best
in the nation because of our state’s talented, caring and committed teachers and education support
professionals. Wisconsin students have their best chance at a successful future with high graduation
rates and individualized attention from highly qualified teachers and education support professionals.
Children reach their potential as students and human beings when they have a well rounded
education that includes a wide variety of courses and programs. Students learn best with up-to-date
learning tools and safe, secure facilities. ■ I belIeve Investments In Great schools buIld stronG
communItIes. Every great school is the result of successful teamwork: students, educators, parents
and communities working together for a brighter future.
Public schools work with parents and
communities to instill the character values that help children become lifelong learners, responsible
adults, and kind, caring people.
Public schools build local economies by preparing young people
and attracting the jobs of the future to our communities.
Local public schools are the heart of their
communities and provide a place for friends and neighbors to come together. ■ I belIeve WIsconsIn
taKes PrIde In Great schools.
The public schools we have today are the result of the investments,
ingenuity and commitment of our parents, grandparents and great grandparents.
We take pride in the quality of our public schools and our Wisconsin way of
living: successful students; happy and caring young people; a high quality of
life; top graduation rates; the most highly qualified teachers and staff; top
scores on the ACT and other tests.
Elected officials should take the same
pride in our public schools that we take.
Together we can maintain our
traditions and keep Wisconsin at the forefront of quality and innovation in
public education. ■ We belIeve Great schools benefIt everyone.
■
33 Nob HIll Road | PO Box 8003 | Madison, Wisconsin 53708-8003 | 608.276.7711 | 800.362.8034 | 608.276.8203 FAX