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DSEA-Retired – the commitment continues…. What you need to know to prepare for retirement - by Rich Phillips, president, DSEARetired here are several ways you can retire from the State of Delaware: T Unreduced service pension: • 30 years of credited service at any age • Age 60 with at least 15 years of credited service • Age 62 with at least 5 consecutive years of credited service Retirement checklist provided by State of Delaware Office of Pensions, NEA-Retired and DSEA-Retired 4Pick a date that maximizes 4Schedule major medical and retirement income (birthday or anniversary of service) dental work to be done prior to retirement since there may be a waiting period for pre-existing conditions if you switch companies. 4Attend a DSEA-Retired PreRetirement Workshop. The next workshop will be held on Saturday, March 16th at Delaware Technical & Community College in Georgetown at 10 a.m. Registration forms will be available in the February issue of this publication. The workshop hosts a representative from the Office of Pension who will explain what you need to do before you retire. The Pension Office will also provide estimates to those who are within three years of retirement. Others are invited to attend for the information. The workshop is FREE to DSEA members and $5 for guests. 4Notify employer in advance, Reduced service pension: • Age 55 with at least 15 years of credited service (reduced 0.2% for each month the employee is under age 60) • 25 years of credited service at any age under age 60 (reduced 0.2% for each month the employee is short of 30 years of service) Vested pension: • Employee must have 5 consecutive years of service • Pension is effective first of the month following the employee's 62nd birthday Some changes were made to the pension benefits for those hired after January 1, 2012. Please see the Office of Pension website (listed at the end of this article) for those changes. in writing (DE Office of Pensions suggests that you notify your district supervisor or Human Resources office three months prior to retirement. Your HR office will then contact you to set up an appointment to complete the pension packet, which will include the following: • Joint and survivor benefits (75% or 50% of pension; selection is irrevocable and must be made prior to issuance of first pension check) • Burial benefits ($7,000 is provided at no cost for each pensioner) • Health insurance (State share paid by Office of Pension), dental insurance and Blood Bank of Delmarva are available • Supplemental benefits Several personal documents need to be taken to the HR appointment for employee, spouse and eligible dependents: • Birth certificates • Signed Social Security cards • Marriage or civil union license, death certificate or divorce decree, as applicable • Medicare card showing A and B coverage, if applicable • Additional documents may be required depending on individual cases. 14 Nov./Dec. 2012 DSEA ACTION! 4Determine amounts due from Social Security (for self and spouse). A personal employee benefit statement (PERBS) is available free. 4Notify Social Security, if 62+ to begin payments. This requires four months notice.) NOTE: In Delaware, you may work after retirement without penalty to your pension. There are no limits on the following employment: • Employment in the private sector • Employment in another state – public or private • Employment within the federal government • Volunteer work 4Determine how any shortfall of 4Sign up for Medicare, if 65+. monthly income will be generated from investments or savings. 4Make or update your will and 4Discuss with accountant or your spouse's will. Both of you should have separate wills and instructions in the event of serious illness. This is also the time to compose your living will and other legal documents, as needed. financial advisor the best way to generate monthly income. NOTE: Don't forget that DSEA entitles members to two free one-half hour consultations per membership year with a participating attorney listed at www.dsea.org/AboutDSEA /DiscountList.html#legal, plus 30% off posted rates for any of the following types of situations: real estate, wills and estate, domestic situations, consumer problems and traffic violations. 4Decide on payment option for any tax-deferred annuity Notify . the company issuing the taxdeferred annuity of the chosen payment option. 4Re-compute asset allocation investment plan for post-retirement risk tolerance and life expectancy . 4Change investment mix to reflect revised asset allocation. Once you have determined the best asset mix, begin gradually shifting assets. 4Review employer-paid life insur- 4Calculate the effect of part- ance which may be reduced upon retirement. Some term life benefits are drastically reduced at retirement. time work on Social Security payments. NOTE: If you have Minnesota Life Insurance, the face value of Group Universal Life Insurance reduces by 50% upon retirement; premiums are reduced accordingly Minnesota . Life will contact you directly for continuation or termination of policy; however, you must be enrolled in the program prior to retirement. 4Calculate how much income will be needed in retirement each month; 70-80% of pre-retirement income is suggested. 4Make a list of monthly retirement cash inflow from all sources. Consider pensions, 403 (b), IRA, 401(k), part-time work, a business or sale of assets. 4Pay off credit card debt and other loans. Consider paying off your house. 4Consider long-term health insurance. 4Sign up for DSEA-Retired membership. If you choose pension-deduction payment of dues, you can sign up six months prior to your retirement. If you sign up for annual cash/check dues, you must sign up after your retirement. Contact Debbie Weaver at 1-888734-5834 or debbie.weaver@dsea. org. www.dsea.org