Full-Time Employee Retirements in FY16/17 and FY17/18

Full‐Time Employee Retirements in FY16/17 and FY17/18 Frequently Asked Questions 1. Who is eligible to retire? Full‐time employees who meet the qualifications of any of the retirement options below: Option Qualification Normal Retirement 65+ Age 65+ with at least 5 years of full‐time service at Madison College Age 57+ with at least 30 years of full‐time service at Madison College
or age 60+ with at least 20 years of full‐time service. Other WRS years of service count toward WRS benefits, but the Early Retirement early retirement benefits at Madison College require all of the full‐time service to be at Madison College. Normal Retirement 55+ Age 55+ with at least 5 years of full‐time service at Madison College 2. What benefits are available to retirees? The benefits available to a retiree depend on the retirement option (refer to Question #1 for the qualifications for each option): Option Sick Leave Payout* Health/Dental Insurance Normal Retirement 65+  75% sick leave balance up to 150 days earned before 7/1/2015  Pay rate as of 6/30/2015  Dental insurance may continue at the retiree’s expense None  75% sick leave balance up to 150 days earned before 7/1/2015  Pay rate as of 6/30/2015  Contribution toward single health insurance premiums until retiree is Medicare eligible (normally age 65)  Dental insurance may continue at the retiree’s expense College pays cost to eliminate the WRS age penalty for early retirement
(this is a lump‐sum payment to ETF for actuarial reduction)
Early Retirement Normal Retirement 55+  Single or family health insurance  75% sick leave may continue at the balance up to 150 retiree’s expense days earned until Medicare before 7/1/2015 eligible  Pay rate as of  Dental insurance 6/30/2015 may continue at the retiree’s expense *See question #8 for more details on the sick leave payout. WRS Penalty Retiree incurs the WRS penalty for retiring prior to age 65 Page 1 of 3 Full‐Time Employee Retirements in FY16/17 and FY17/18 Frequently Asked Questions 3. How and when do I notify Human Resources of my intent to retire? Use the online web form at madisoncollege.edu/in/preparing‐retire to submit your retirement notice. After submitting this web form, you will receive a confirmation email with a date stamp. You have 30 days from the notification date to rescind. 
For normal retirements, a 60‐day notice is required. See grid below to determine your retirement date. 
For early retirements, you must submit your notification between September 1 and October 31. See grid below to determine your retirement date. Option Notification Window Normal Retirement 65+ OR 60‐day notice Normal Retirement 55+ Early Retirement For FY16/17: Submit notice between Sept. 1 ‐ Oct. 31, 2015, the year before you retire For FY17/18: Submit notice between Sept. 1 ‐ Oct. 31, 2016, the year before you retire Retirement Date  Faculty ‐ End of a semester  PSRP ‐ No date restriction  Admin ‐ End of 1st semester or end of contract (June 30) Between July 1 and December 31 of either 2016 or 2017:  Faculty ‐ End of a semester and within the window  PSRP ‐ No date restriction within the window  Admin ‐ End of 1st semester or end of contract (July 1 ) 4. What happens to my sick leave over 150 days? Any sick leave balance over 150 days as of June 30, 2015 will not be paid out at retirement. See question #8 to learn how vested sick leave will be distributed at retirement. You may also view the sick leave payout video and FAQs that are posted at madisoncollege.edu/in/preparing‐retire for more information. 5. What other leaves are paid out at retirement? For PSRP, vacation balances are paid out upon retirement. For administrators, Human Resources will determine non‐contract days that may be paid out according to the administrator’s contract. Full‐time faculty do not receive leave payouts. 6. Can I retire on a non‐work day, such as December 31 (a holiday)? Yes, the retirement date can be different from the last day worked. 7. Can I change my health insurance plan after retirement? Currently, retirees may switch health insurance plans during the open enrollment period in June. However, the Benefits Committee is exploring other health insurance options for retirees. Page 2 of 3 Full‐Time Employee Retirements in FY16/17 and FY17/18 Frequently Asked Questions 8. How will vested sick leave be paid out? Vested sick leave (balance as of June 30, 2015) will be distributed to either a Health Reimbursement Arrangement (HRA) or an employer‐sponsored 403(b) Special Pay Plan (SPP), or a combination of both, based on the grid below. This is driven by your health insurance choice in June, Medicare eligibility, and coverage of spouse. Please view the sick leave payout video and FAQs at madisoncollege.edu/in/preparing‐retire. Vested Sick Leave Distribution Grid Medicare Eligible Health Plan at Time of Retirement Full Time Retirement Purchasing health insurance for spouse
Medicare Eligible No spouse in retiree health plan Enrolled in WPS and switching to WPS Retiree Plan (includes deferring 100% HRA 100% HRA NA effective date due to employed spouse on active plan) Continuing GHC plan as retiree or through employed spouse’s Madison College coverage 50% HRA 50% HRA NA OR 50% SPP 50% SPP Continuing WPS Active Employee Plan as retiree or through employed spouse’s Madison College coverage Enrolled in any active WPS: 100% HRA employee plan, but ineligible NA GHC: 50% HRA 100% HRA to continue in Madison 50% SPP College plans due to Medicare eligibility No Madison College health insurance as least one month prior to retirement OR 100% SPP NA 100% SPP Declining opportunity to continue in Madison College health plans 9. Where can I get more information about the Wisconsin Retirement System? You can get more information, including retirement benefit calculators, from the ETF website: etf.wi.gov. 10. What benefits do I receive at retirement if I am not retiring until 2018‐19? There will be an assessment of the early retirement program in 2016‐17. Through this assessment, a recommendation will be made to continue, modify, or end the early retirement program for the next 3‐year period (2018‐19 through 2020‐21). We anticipate that the current normal retirement options will remain available with the same benefits in future years. Page 3 of 3