Life Plans - Public School Teachers' Pension and Retirement Fund ...

Life PlansUnderstandingYour RetirementBenefitsAfter years of making lesson plans to guide yourdaily instruction, you have reached retirement andnow have the opportunity to make plans of yourown. This brochure illustrates the benefits youwill receive as a retiree and outlines the resourcesavailable to you through the Chicago Teachers’Pension Fund.

Life PlansThe BasicsCongratulations and welcome to retirement,the next chapter in your life plans. As avested member of the Chicago Teachers’Pension Fund you qualify for a lifetimepension, guaranteed by Illinois law. Thisbrochure summarizes information aboutyour pension and health insurance andprovides other important information youwill need as a retiree.2

Di r e c t De p o s i t Ad v i c e sYou will receive a deposit advice notifying you of theamount and the date of deposit:n when your first pension check is depositedn whenever your payment amount changesn in December to show your total yearlypayments and deductionsn in January to show the automatic annualincrease (AAI), which begins after age 61The direct deposit advice provides you with abreakdown of the current month’s payment as wellas year-to-date figures. If you prefer to receive yourdeposit advice monthly, please call Member Servicesto request this option.Dividing Yo u r De p o s i tIf you would like to divide your deposit betweentwo accounts, you can indicate this on your DirectDeposit Authorization. If you deposit into twoaccounts, you must specify a flat dollar amount forone account, and the balance will be deposited intothe other account.Automatic Annual Increase (AAI)*Your pension is protected against inflation with a3% automatic annual increase (AAI) that is appliedevery January.You qualify for an AAI when you turn 61 or one yearafter your pension begins, whichever is later.* The benefit described here applies to Tier 1 teachershired before January 1, 2011. If you were hired on orafter January 1, 2011, you are considered Tier 2. Seethe additional information for Tier 2 employees.4

1099-R FormsAll retirees receive the 1099-R form that reportspension income and tax withholding information tothe IRS. A copy is mailed no later than January 31each year. Contact Member Services if you do notreceive this form by the end of February.Changes to Tax WithholdingChanges to your tax withholding can be made atany time by submitting a new tax withholding form,W-4P, to CTPF. Your W-4P form must be in theCTPF office by the 15th of the month for the changeto be applied to the following month’s pensioncheck. You may download the form at www.ctpf.orgor call Member Services to request one.5

ReemploymentAfter you retire, you may work for any non-CTPF employer without restriction. You mayreturn to work with a CTPF employer as long asthe employment is part time, temporary, or noncontractual,without benefits.Each Illinois retirement system has its own rulesgoverning the employment of annuitants. It isa retiree’s responsibility to understand thereemployment rules before accepting employment.Health InsuranceSelecting Your CoverageWhen you retire, you have many options for healthinsurance coverage for yourself and your family,and you will be given the opportunity to reviewand change your choices annually. Your options forcontinuing your health insurance coverage include:n COBRA – is a federal mandate under whichemployers must allow former employees tocontinue their health insurance after certainevents, including retirement and involuntarytermination, for 18 months. If you are under6

age 65 at retirement and not covered byanother health insurance plan, CTPF requiresyou to continue your health insurance coveragethrough COBRA for the 18-month period.n CTPF-sponsored health insuranceplans – CTPF sponsors several health insuranceplans for retirees.n Medicare – when you reach age 65, you becomeMedicare eligible. CTPF requires that youenroll in Medicare if you participate in a CTPFsponsoredhealth insurance planFor further details regarding your health insuranceoptions, please see the Life Plans brochureUnderstanding Your Health Insurance, available atwww.ctpf.org or from Member Services.7

CTPF deducts $300 from Jane’s monthly pensioncheck, pays the $700 balance, and remits the entireamount directly to Jane’s insurance carrier.Pr i v a t e He a l t h In s u r a n c e RebatesIf you pay health insurance premiums to anotherprovider, CTPF will rebate a percentage of your costonce per year. The rebate is calculated based on thetotal cost of the insurance plan, times the rebatepercentage, minus any subsidy that may be paid onthe pensioner’s behalf. Rebates are capped based onthe premiums for the CTPF-sponsored plans.Health insurance rebate forms are mailed out in thesummer. Rebates are only available for the member’sportion of the health insurance coverage; spouses,domestic partners, or other dependants do notqualify for the rebate.ExampleJohn is enrolled in a private health insurance planthrough his spouse’s employer. The total cost of hisspouse’s monthly insurance premium is $1,000.Assume the current CTPF rebate is 70%. John iseligible for a rebate of 70% of his portion of thehealth insurance premium. The rebate cannot exceedthe amount CTPF would have paid for a CTPFsponsoredhealth insurance plan.11

Survivor andDeath BenefitsThree types of survivor and death benefits areoffered by CTPF:n survivor pensions payable to your eligiblespouse and/or childrenn a refund of any remaining contributionspayable to designated beneficiaries or yourestaten a lump-sum death benefit payable to designatedbeneficiaries or your estateLump-sum death benefits and any refund ofcontributions are paid according to the person(s)named on your Designation of Beneficiary form. Forfurther information refer to our Life Plans brochureUnderstanding Survivor and Death Benefits, availableat www.ctpf.org or from Member Services.Designation of Beneficiary FormPlanning ahead and designating your beneficiariesensures that the refund of contributions and deathbenefit are paid according to your wishes. Anyperson, trust, church, charity, or organization maybe named a beneficiary. If you name more than oneindividual or organization, all share equally in thebenefit unless you designate specific percentages.It is important to keep your Designation ofBeneficiary form current as life changes, includingmarriage, death, births, or divorce, occur. You maychange or name new beneficiaries at any time bysubmitting a new Designation of Beneficiary formto CTPF. The designation form must be on filein CTPF offices prior to the member’s death.13

Please Note: The only person who may sign and/or change a Designation of Beneficiary form isthe CTPF member. A representative, including apower of attorney, guardian, conservator, trustee, orrepresentative payee, cannot change or sign this form.ConfidentialityThe information contained on your Designationof Beneficiary form is confidential and will not bedisclosed to anyone. In the event thatyou cannot locate a copy of your current formand/or cannot recall whom you named as beneficiary,contact CTPF at 312.641.4464 to request a newdesignation form.Other InformationAddress ChangesIt is important that you keep your address current.If your address changes, please submit a Change ofAddress Notification form to CTPF. You may obtaina form at www.ctpf.org or call Member Services.You may also inform CTPF of an address change inwriting. Please include the first four digits of yourSocial Security number and your complete old andnew contact information. The letter must be signedby you or your legal representative.Legal RepresentativeYou or the court may appoint a legal representativeto act on your behalf. Your legal representative maydirect CTPF regarding your pension payment andhealth insurance. Letters of office must comply withIllinois law and be submitted to CTPF.14

Additional ResourcesThe CTPF newsletter Pension News and the website,www.ctpf.org, contain important informationabout your pension benefits and health insurance.The organizations listed below provide additionalinformation.n Dental InsuranceRetired Teachers Association of Chicago(RTAC), 312.939.3327www.rtac.orgChicago Teachers Union, 312.329.9100www.ctunet.comn COBRAChicago Public SchoolsDepartment of Human Resources773.553.1142www.cps-humanresources.orgn Centers for Medicare andMedicaid Services (CMS)800-MEDICAREwww.medicare.govn Social Security800-772-1213www.ssa.gov15

Contact InformationMember ServicesChicago Teachers’ Pension Fund203 North LaSalle Street, suite 2600Chicago, Illinois 60601-1231312.641.4464 phone312.641.7185 faxwww.ctpf.orgmemberservices@ctpf.orgBoard of TrusteesJohn F. O’Brill, presidentMaria J. Rodriguez, vice presidentWalter E. Pilditch, financial secretaryMary Sharon Reilly, recording secretaryLois W. AshfordJeffery BlackwellAlberto A. Carrero, Jr.Peggy A. DavisJeanne Marie FreedChris N. KotisJay C. RehakJames F. WardKevin B. Huber, executive directorPChicago Teachers’ Pension FundVisit us at www.ctpf.orgRevised on Web January 2011