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Are you retired?

Are you about to retire?

Thinking about retiring next year?

Are you retired or are you retiring prior to 7-1-08?

If so, click the link below!
http://www.apscuf.com/news/RETIRED-prior-7.1.08.pdf

Planning on retiring on or after 7-1-08?

If so, click the link below!
http://www.apscuf.com/news/Retire-on-or-after-7.1.08.pdf

Planning on retiring on or after 7-1-09? If so, click the link below!
http://www.apscuf.com/news/Retire-on-or-after-7.1.09.pdf

News & Information

Q - I have submitted my letter of intent to retire as of June 29, 2007. I want to make sure that by using this date I am securing my retirement benefits under the current contract.

R - from SERS: Just for clarification purposes, the date of termination and the effective date of retirement are often confused. A member who terminates employment with a date of June 29, 2007 has an effective date of retirement of June 30, 2007.

The APSCUF Retirement Committee provides retirement information, advocacy and research to faculty and their spouses. The committee educates faculty on getting answers to faculty retirement questions. Below, you will see a list of resources for active and retired APSCUF/APSCURF members.

Summary on Retirement Options for APSCUF members

APSCUF faculty members have the option of participating in the State Employees Retirement System (SERS), the Public School Employees Retirement System (PSERS) or the Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF).  SERS and PSERS are defined benefit plans.  TIAA-CREF is a defined contribution plan.  In 2003, three additional defined contribution retirement plans became available.  They are ING, MetLife, and Fidelity. The State System of Higher Education (SSHE) categorizes TIAA-CREF, ING, MetLife, and Fidelity as parts of the Alternative Retirement Plan (ARP).

Choosing a defined benefit plan:

In defined benefit plans like SERS and PSERS, the retirement benefit is determined by a statutory formula that includes an employee's final average salary, years of service and a multiplier.  According to state law, new SERS members contribute 6.25% of their gross salary and new PSERS members contribute 7.50% of their gross salary.  The state contributes a percentage of the employee's gross salary.  An actuary annually establishes the employer contribution rate.  Both SERS and PSERS require five years of service to be vested.  Cost of living adjustments for SERS and PSERS annuitants may be provided on an ad-hoc basis by an act of the state legislature.     

Choosing a defined contribution plan:

TIAA-CREF, ING, MetLife, and Fidelity are defined contribution plans, also referred to as alternate retirement plans.  In these plans, the retirement benefit is determined by employee contributions, employer contributions, and the interest and earnings of the employee-selected investment funds at the time of retirement.  To state it another way, stock and bond market performance affect the value of the retirement benefit.  Employees contribute 5% of their gross salary.  State law requires the employer to contribute 9.29% of the employee's gross salary. There is immediate vesting with defined contribution plans. 

If you participated in TIAA-CREF prior to coming to the SSHE and were pleased with the performance, you might want to continue with that provider. Also, if you intend to leave the SSHE before the five-year vesting period for the two state systems, chances are you'll be able to continue in the TIAA-CREF program at your next job in higher education. Due to APSCUF's effort, the TIAA-CREF members now have the same benefit that SERS members acquired in December of 1982 (i.e., the tax sheltering of the individual's retirement contribution for federal income tax purposes only.)

The major advantage of the defined contribution option is that it reduces your losses if you leave the SSHE before the five year vesting period. Under SERS and PSERS, if you leave before being vested, you lose the employer contributions to the retirement fund. You are eligible to receive the employee contributions plus statutory interest.  With the defined contribution option, the employer contributions have purchased shares in your name that are yours forever, regardless of when you leave state employment.

Purchasing service credit:

If you taught in another state before accepting your post at the SSHE, both SERS and PSERS offer an option that permits you to purchase your out-of-state service time. This is only for public school or public higher education service or service as a state employee, not for private school or private university service. Both the PSERS and SERS have options that permit participants to purchase credits for military time, a factor you might take into consideration when making your decision.

PLEASE REMEMBER THAT YOU HAVE 30 DAYS TO MAKE YOUR SELECTION OR YOU WILL BE AUTOMATICALLY PLACED IN THE STATE EMPLOYEES RETIREMENT SYSTEM.

 

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