Thinking about retirement in June 2012? 

Now is the time to P.L.A.N. 

"If you plan to retire next June, now is the time to start the process. It's not enough to simply tell your principal you're retired and walk out the door on the last day of school," explains Sheron Banks-Fallis, CTPF Member Services manager.

"There is a process to follow. The more our members understand before retirement, the smoother the transition."

If you're considering retirement, now is the time to P.L.A.N. for next year - June will be here faster than you can imagine.

Consider your Future Income 

When you study your financial situation, you'll want to understand what your future income will be. You can request a pension estimate from Member Services. The estimate can give you an idea of the amount of retirement income you can expect. If you want a quick and simple way to estimate your monthly income, you can click here to use the M.A.P. (Monthly Annuity Planner). The M.A.P. will calculate an estimated monthly benefit based on the information you enter.

You may be able to maximize your pension by increasing your service credit. You may choose to convert sick days to service credit, consider purchasing optional service if you took an unpaid, employer-approved leave of absence, or apply for the 2.2 upgrade if you have service credit earned before July 1, 1998.

Factor in the cost of Health Insurance

As an employee, your employer may have paid for a portion of your health insurance premium. Many retirees are shocked to learn that they must pay for the cost at retirement, and in general, premium costs will be higher. Make sure you understand your health insurance options and choices, and have a plan in place so that your coverage is not interrupted when you leave your job. 

CTPF offers a variety of plans and options and you can find out more about CTPF health insurance and how CTPF helps to pay for the cost by clicking here.

Learn   

As an educator, you've made a career out of preparing children for the challenges of the future - now it's your turn. Educating yourself about the retirement process will make the transition to retirement smoother.

Plan to attend a 2012 Retirement Seminar. Click here for more information. Retirement seminars provide an overview of the retirement process and offer assistance completing the retirement application.  

Apply 

Downloading or requesting a Retirement Application Packet can help take the retirement process from intangible to tangible. When you retire you will need copies of your vital records including your birth certificate, and your partner's birth certificate (or death certificate) if you are married or in a civil union. You will also need a copy of your marriage or civil union license or a divorce decree, if applicable. Make sure you can document your identity properly. Downloading and reading through the forms in the Retirement Application can help you organize the process.

Reciprocal Considerations

If you plan to retire under the provisions of the Illinois Retirement Systems Reciprocal Act, you must declare your intent at retirement, meet each system's requirements, and request and file a retirement application with each system.  

Notify

One important step is notifying your employer. Your employer has a separate application and paperwork that must be completed before you can officially retire. CTPF must receive confirmation of your resignation from your employer before it can process your CTPF application. Once CTPF receives confirmation, it takes up to 90 days to process a retirement application.

You may also need to notify CTPF if you return to work after retirement. Click here for a copy of CTPF's return to work policy.

Start Now

Now is the time soon to start planning for retirement in June 2012. The more work you do in advance of your retirement date, the smoother the transition will be. If you need additional assistance contact a Member Services counselor at 312.641.4464.

2012 Retiree Health Insurance Update

BCBS Supplement to Medicare 

BCBS HMO Illinois (Medicare)    

 AARP Medicare Plan F (UnitedHealthcare)

If you participate in the Humana Group Medicare HMO, this change does not affect you. 

What does this mean?

Beginning January 1, 2012, CTPF retirees who participate in plans listed above will have retail prescription benefits and mail-order prescription benefits provided by the Medco Medicare Prescription Plan (PDP). This change does not impact your medical benefits, only your prescription provider. 

Medco manages prescription benefits for hundreds of America's largest companies. The Centers for Medicare & Medicaid Services (CMS) have awarded the Medco Medicare Prescription Plan (PDP) 4 out of 5 stars for quality and service.

How much will prescriptions cost?

The new Medco plan is an enhanced prescription plan that will continue to cover the same drugs your current BCBS or UnitedHealthcare plan covers, including prescription drugs not normally covered by Medicare Part D plans. 

Prescription copays up to a 31-day retail supply are $5 generic, $30 preferred brand, and $45 non-preferred brand; 90-day supply copays at retail or mail order are $10 generic, $60 preferred brand, and $90 non-preferred brand. 

Although standard Medicare Part D plans may include a coverage gap (doughnut hole), the Medco enhanced plan offers continued coverage through the coverage gap (copays apply).  

You can find specific information about the cost of drugs and coverage on the CTPF MEDCO website. You can also get an estimate of your yearly pharmacy expenses. Click here to explore the resources available on the MEDCO website.   

What do I have to do?

Participants in the plans listed above will automatically be enrolled in the new Medco Medicare Prescription Plan (PDP) beginning January 1, 2012. Medco has begun to mail welcome kits to enrollees. Kits include a prescription drug card, formulary, and mail service order form.

Show your pharmacy provider your new Medco ID card the first time you fill a prescription in 2012.

Prior Authorization

Enrollees taking prescription drugs that require prior authorization will need to obtain new prior authorization approval from their physicians. Ask your pharmacist to help you initiate this process.

Mail Order Users

MEDCO will also be the mail order pharmacy service. MEDCO will attempt to automatically transfer any remaining mail order prescription refills from Prime Therapeutics and UnitedHealthcare. You can contact MEDCO Customer Service after January 1, 2012, to make sure your prescription refills have been transferred. 

Additional Information

If you have coverage questions or need assistance, call Medco at 1-800-864-1416 or 1-800-716-3231 TTY/TDD (24 hours a day, 7 days a week), or click here to visit the dedicated website.  

Medicare has released its monthly premium rates for 2012.

  

For those who do not qualify for premium-free Part A, but have 30-39 quarters of Medicare-covered employment, the monthly Part A premium will be $248. Individuals with less than 30 quarters of Medicare-covered employment pay $451 monthly.

CTPF helps pay for Medicare Part A premiums by subsidizing 60% of your premium cost.*

Part B: (Medical Insurance) Premium    
Members who currently have Part B premiums deducted from a Social Security benefit will see a Part B premium increase to $99.90. All others will see their Part B monthly premiums decrease to $99.90.

CTPF helps pay for Part B premiums by subsidizing 60% of your premium cost.*

Medicare Premiums for Higher-Income Individuals   
The Social Security Administration requires that individuals with higher incomes pay an income-related adjustment amount (IRMAA) in addition to their standard Medicare premiums. These IRMAA premiums apply to Part B as well as prescription coverage. High income earners are defined as those with adjusted gross incomes more than $85,000 individually or $170,000 for married couples filing jointly.

CTPF does not subsidize any part of the IRMAA premium. CTPF only subsidizes the standard portion of Medicare premiums.

*CTPF retirees whose final teaching service was with the Chicago Public or Charter Schools may qualify for partial subsidy of their Medicare premiums and health insurance premiums. A surviving spouse and/or dependent children who receive a survivor's pension may also qualify for a premium subsidy. Dependents are not eligible for subsidy. CTPF does not subsidize any penalties for late enrollment into Medicare Parts A, B, and D.

Illinois Senate Bill 512

Illinois Senate Bill 512 which proposed a series of "reform" measures, but failed to require employers to fund pensions, passed out of committee in the fall veto session, but was not called for a vote. The measure will likely be brought up during the spring General Assembly.

Action Items

CTPF encourages all members to take time during the holidays and winter to meet with legislators while they are in their home offices. It's important for legislators to understand that pensions are the primary source of retirement security for CTPF members and that protecting these constitutionally guaranteed benefits is a priority for teachers.

Need information to prepare for a visit or to share with friends and neighbors? Click here to read some important facts about CTPF pensions.

Read Executive Director Kevin B. Huber's written testimony about SB512 here.