Teacher Retirement Plans and Pay Structure at East Allen County Schools

EAST ALLEN COUNTY SCHOOLS

AGENDA

TEACHERS FIRST YEAR PAY All East Allen County Schools teachers are paid over 12 months in 26 equal installments. The contract pay schedule is available on our website. The contract schedule runs from mid-September through the end of August each school year. To accommodate new teachers so they don t need to wait until mid-September for their first pay, East Allen County Schools will divide the contract total into 27 equal pays. New teachers receive their first pay the end of August.

INDIANA PUBLIC RETIREMENT SYSTEM (INPRS) TEACHER RETIREMENT FUND The Teachers Retirement Fund (TRF) was created by the Indiana General Assembly in 1921. Members of TRF include teachers in a public school corporation. The purpose of TRF is to provide retirement income for public school educators and their designated beneficiaries.

There are two teacher retirement plans from which to choose. You may not change plans once you have chosen a plan. Both plans are funded entirely by East Allen County Schools. Teachers may make additional contributions to either plan - up to 10% of their post tax wages.

TRF HYBRID THE PLAN WITH A PENSION This plan is made of two parts: a defined benefit (DB) and a defined contribution (DC) account. The defined benefit is 6% of your wages. This contribution is what funds a teacher s pension. You are eligible for the pension if you have 10 years of service in a TRF covered position. Once you have reached retirement requirements your monthly pension is calculated based on years of service and the average of your top five years of earnings. The defined contribution is 3% of your wages contributed to an account which, at the time of retirement, can be distributed monthly or distributed in a lump sum. If you leave education, this defined contribution can be distributed, regardless of your years of service.

TRF MY CHOICE PLAN The TRF My Choice Plan is the Defined Contribution account- only alternative to the TRF Hybrid plan and is available for members who become first-time participants in TRF at a school corporation or a state agency. This contribution is 9% of your wages, equal to the contributions made to the Hybrid plan. Teachers, if they should leave a TRF covered position, are eligible for 20% of this contribution at the end of the first year and an additional 20% each year, fully vested after 5 years and eligible for the total contribution. There is no monthly pension with this plan.

TRF DECISION PAGE If you were already enrolled in a Teacher Retirement Fund, you do not need to choose a retirement fund. EACS will continue to make contributions to your existing retirement account. If you are new to TRF, you were emailed more detailed information and a decision page. This decision page needs to be completed before your first pay. Please call Human Resources if you have additional questions. 446-0100 ext. 1024

EMPOWER 403(B) EACS also offers a voluntary 403(b) retirement plan through Empower. EACS does not make contributions to this plan, nor do we match funds, but these contributions can be made through a payroll deduction and can be designated as a pre-tax or Roth (post-tax) contribution. The enrollment forms can be found on our website. More detailed location directions are found in your welcome letter. There is no deadline for participating in this retirement plan.

HEALTH INSURANCE East Allen County Schools teachers are insured on their first day of employment as long as they have signed up for health insurance within the first 30 days. East Allen County Schools offers three kinds of health insurance policies: a PPO and two high-deductible policies. More details on the three policies is available on our website, or please feel free to call the Human Resources Department for assistance understanding these plans. Insurance premiums are paid by payroll deduction over 18 pays per year. No premiums are paid the first week of January or through the summer.

HEALTH INSURANCE PPO Our PPO plan has a $1000 ($2000 per family) in-network deductible, a 20% coinsurance and a $2000 out of pocket maximum ($4000 per family). All preventative care is covered at 100%. A Flexible Spending Plan (FSA) is available with a PPO plan. This money is available up front but the employee reimburses the FSA through payroll deduction. FSA funds that are not spent during the year are lost.

HEALTH INSURANCE HIGH DEDUCTIBLE OPTION 1 Our HDHP 1 plan has a $3200 ($6400 per family) in-network deductible. All services are paid at 100% after the deductible is met. All preventative care is covered at 100%. East Allen County Schools makes an annual contribution to the employees Health Savings Account (HSA) in the following amounts: Employee only $250 Employee and Spouse $750 Employee and Children $750 Employee and Family $1000

HEALTH INSURANCE HIGH DEDUCTIBLE OPTION 2 Our HDHP plan has a $3200 ($6400 per family) in-network deductible. After the deducible the employee then pays 20% for services until they reach the out-of-pocket maximum of $5200 ($14,000 per family). All services are paid at 100% after the out-of-pocket maximum is met. All preventative care is covered at 100%. East Allen County Schools makes an annual contribution to the employees Health Savings Account (HSA) in the following amounts: Employee only $750 Employee and Spouse $1500 Employee and Children $1500 Employee and Family $2000

EACS LIFE INSURANCE Each East Allen County Schools teacher is eligible for a $25,000 life insurance policy and East Allen County Schools will pay 100% of the premium. You are automatically enrolled at the time of hire. Additional voluntary life insurance is available through Guardian. EACS DISABILITY INSURANCE East Allen County Schools has a disability policy for all employees and East Allen County Schools will pay 100% of the premium. You are automatically enrolled at the time of hire. Disability begins after 90 calendar days of the start of the disability and pays 60% of the employee s wages.

GUARDIAN INSURANCE VOLUNTARY POLICIES East Allen County Schools has optional employee-paid, voluntary benefits available at group premium rates through The Guardian Life Insurance Company of America. These policies are available within 30 days of hire and you may enroll every year during open enrollment. Premium rates are available on our website or contact the Human Resources Department for assistance.

GUARDIAN INSURANCE VOLUNTARY POLICIES Life Insurance Life insurance coverage for employees is also available for eligible dependents based on the amount of coverage you approved for yourself. Accident Insurance Cash payments to cover additional expenses for an accidental injury. Critical Illness Insurance Cash benefits for up to 33 covered illnesses including heart attack, stroke or cancer. Short Term Disability Designed to replace a portion of your income should you become disabled. Hospital Indemnity Insurance Helps cover out-of-pocket expenses associated with being hospitalized.

SECURITY BENEFIT-VEBA EACS offers a VEBA HRA (Health Reimbursement Arrangement) to all teachers. EACS makes an annual contribution of $650 into this account. The funds in this account can be used after retirement for out-of-pocket healthcare costs for the employee and their spouse. This account is vested after ten years of employment with EACS. All teachers are required to enroll online with Security Benefits. A link to the Security Benefit site is included in your welcome letter. Be sure to contact Human Resources if you have any questions.

Please contact the Human Resources Department with any questions regarding benefits. Patty Prosser-Executive Director of Human Resources ext 1009 Jennifer Rose-Benefits Specialist ext 1025 Dawn Bair-Human Resources Coordinator ext 1005