It is never too early or too late to start planning for retirement. 果冻传媒 is committed to making sure employees are well prepared for retirement. Below is a checklist to help you get started.
Pre-Retirement Checklist
1. Meet with Human Resources Benefits
Arrange a meeting with the HR Benefits Team to address any retirement-related questions you may have and to discuss any required paperwork. This will ensure you have all the information you need for a smooth transition.
2. Determine your Eligibility
To be eligible for normal-age service retirement under the Teacher Retirement System (TRS), you must meet one of the following conditions:
- You are age 65 with at least five years of service credit, or
- You meet the Rule of 80 (your age and years of service credit total at least 80) and have at least five years of service credit. *Note: Some retirement tiers also have a minimum age requirement.
Employees in the Optional Retirement Plan (ORP) have more flexibility compared to those in the Teacher Retirement System (TRS) regarding retirement timing. With the Optional Retirement Program (ORP) in Texas, you can retire and access your funds once you terminate employment with all ORP employers. There are no minimum age or years of service requirements for retirement. However, there are important considerations to keep in mind:
- Tax Penalties: Withdrawing funds from your ORP account prematurely can result in additional tax penalties.
- Required Minimum Distributions (RMDs): The IRS mandates that you begin taking minimum distributions from your ORP account at a certain point.
- Eligibility for Withdrawals: You can access your ORP funds once you have terminated employment with all Texas public institutions of higher education.
Understanding these factors can help you plan effectively for retirement. Note: You must leave some funds in your ORP account to continue retiree insurance benefits.
3. Contact Your Retirement Plan Provider
- Teacher Retirement System (TRS)
Visit the page on the TRS website. The website outlines the steps to retirement and offers helpful resources.
- Optional Retirement Program (ORP)
Contact your ORP retirement provider (or financial advisor) three months before retirement to review distribution options and beneficiary designations.
4. Contact Social Security (if applicable)
benefits are available at age 62 or older. If eligible, you should apply for retirement benefits (at least three months prior to the date you want your benefits to start.
is typically available at age 65. To avoid significant financial penalties, contact the Social Security Office at least three months before retirement if covered dependents will be 65 or older at that time to discuss Medicare enrollment options. Ensure enrollment in Medicare Parts A and B no later than the first of the month following the retirement date to avoid gaps in coverage or late enrollment penalties. If already covered through an employer group health plan, consider delaying Medicare Part B enrollment.
5. Notify Your Department
Inform your department of your retirement plans in writing, following departmental policy, at least two months before your intended retirement date. This allows the department time for processing the separation steps and notifying Human Resources. Copy benefits@lamar.edu on your notification.
6. Review Your Retiree Insurance Options - .
- Life Insurance
- The Texas Employees Group Benefits Program (GBP) offers three types of life insurance for retirees: Basic Term Life Insurance, Optional Term Life Insurance and Retiree Fixed Optional Life Insurance. Retirees are eligible for Basic Term Life Insurance when enrolled in a GBP health plan and only one of the optional life plans.
- Accidental Death and Dismemberment (AD&D) insurance coverage will end on the last day of the month in which you retire.
- Medical, Dental, Vision and Prescription Insurance
- You can continue your medical, dental, vision and prescription insurance elections through the Texas Employees Group Benefits Program (GBP) into retirement, including coverage for your spouse and dependents. Health plan options for retirees are based on Medicare enrollment and the retiree’s place of residence.
- You need 10 years of eligible service credit with a state agency or higher education institution that participates in the GBP to qualify for retiree health insurance. Eligibility criteria for age and years of service must be satisfied.
- The state pays a portion of your health insurance premiums based on length of service and when you started state employment. The contribution can range from 50% to 100% of the premium for retirees, and 25% to 50% for eligible dependents.
- Flexible Spending Accounts (FSA) – TexFlex
- TexFlex plans will end on the last day of the month in which you retire. If you are enrolled in TexFlex, ensure that you spend the funds in your account(s) before this date. Any funds remaining in your account after that date will be forfeited.
All retiree insurance elections and changes must be completed within 31 days of the retirement date.
7. Decide How to Utilize Your Accrued Paid Time Off
- Unused vacation time can be paid out or deferred, either fully or partially, into a Deferred Compensation Plan (DCP) or a Tax-Sheltered Annuity account. To defer, send an email to benefits@lamar.edu and complete the Participant Enrollment Governmental 457 Plan or Tax-Sheltered Annuity (TSA) Salary Reduction Agreement before your last day of employment.
- Unused sick time can be donated.
8. Ensure Your Contact Information is Current
- Update your address, phone number and personal email address to receive important plan and enrollment updates in Banner Self Service.
9. Secure Email Access as a Retiree