Retirement Guide 2022-2023

Retirement Timeline

Planning for retirement should start for you once you reach 50 years old. There are many steps you’ll want to take, and information to gather, before you make the decision to retire from MMSD. Below is a timeline of retirement activities.

Retirement Eligibility and Notification Requirements

Eligibility for retirement varies by the employee unit you are in immediately prior to your retirement date. Additionally, it is important to notify MMSD of your retirement no later than the dates outlined below. Failure to meet these dates will result in a resignation rather than retirement, voiding your ability to access MMSD’s retirement benefits.

Income Sources

Wisconsin Retirement System Pension:

The Wisconsin Retirement System (also known as Employee Trust Funds, ETF and/or WRS) is your state pension. As an employee of a public school district, you and MMSD have contributed to your state pension (along with any of your other past public school district(s) or state employment).

Your pension benefit is an individualized calculation based on your age, total years of service contributing into the pension plan and your top 3 years of total income. You can determine your pension benefit by visiting: etf.wi.gov/retirement/calculators. This calculator is helpful if you are unsure when to retire or what your pension benefit will be, as you can recalculate your pension based on different retirement dates and income. Note, your pension benefit is taxable income .

When you are ready to retire, you will want to contact WRS for an official estimate and claim form. It is best to contact WRS 5 months prior (or as soon as possible) to your last day worked to request this estimate, as it takes up to 2 months to calculate and send it to you and another 2 months to process your official retirement after the paperwork is completed and returned. You can contact WRS at 877-533-5020.

Once you receive your official pension estimate, you may have as few as 3 options and as many 14 options as to how you will receive your pension. Below you will find the most common 7 options. Each of these options can be taken as a regular annuity or an accelerated annuity. The accelerated annuity is available to those who retire under the age of 62 while providing a larger pension benefit up to age 62 and a reduced benefit age 65+ (usually offset by a Social Security estimate).

Single Annuity

These options provide you with a benefit and it does not provide any continuation of benefits to a survivor when you pass away.

• Annuitant’s Life Only (No Death Benefit)
  • This option is payable to you for life.
  • The monthly payment will end when you pass away.
  • There is no death benefit payable to any beneficiary.
• Life Annuity – With 60 Payments Guaranteed
  • This option is payable to you for life.
  • If you die before 60 monthly payments have been made, the remainder of the 60 monthly payments are paid to your beneficiary(ies).
• Life Annuity – With 180 Payments Guaranteed
  • This option is payable to you for life.
  • If you die before 180 monthly payments have been made, the remainder of the 180 monthly payments are paid to your beneficiary(ies).

Joint and Survivor

These options provide death benefits for one person who you choose as your named survivor

• 75% Continued to Named Survivor
  • This option is payable to you for life.
  • When you die, your named survivor will receive 75% of your monthly payment for the rest of their life.
  • If your named survivor dies before you, all payments stop upon your death.
  • You may not choose this option if your named survivor is more than 19 years younger than you and is not your spouse.
• 100% Continued to Named Survivor
  • This option is payable to you for life.
  • When you die, your named survivor will receive will receive the same monthly payment that you did for the rest of their life.
  • If your named survivor dies before you, all payments stop upon your death.
  • You may not choose this option if your named survivor is more than 10 years younger than you and is not your spouse.
• Reduced 25% on Death of Annuitant or Named Survivor
  • This option is payable to you for life.
  • When you or your named survivor dies, the remaining individual will receive 75% of the monthly amount for the rest of their life.
  • If your named survivor dies first, your monthly payment will reduce by 25% beginning with the payment for the month after your named survivor’s death.
  • You may not choose this option if your named survivor is more than 19 years younger than you and is not your spouse.
• 100% Continued to Named Survivor with 180 Payments Guaranteed
  • This option is payable to you for life.
  • When you die, your named survivor will receive the same monthly payment that you did for the rest of their life.
  • If both you and your named survivor die before 180 payments have been made, the remainder of the 180 payments are made to the designated beneficiary(ies).
  • You may not choose this option if your named survivor is more than 10 years younger than you and is not your spouse.

Your WRS retirement benefit is taxable as income. You will complete the income tax withholding on your retirement application when you apply for your annuity. Your application will include a worksheet to help you determine your federal withholding. You can also use ETF’s Income Tax Withholding Calculator or review the tax withholding tables online at etf.wi.gov/retirees.htm to help you decide how much to have withheld. State of Wisconsin income tax withholding is voluntary. Generally, federal income tax withholding is also voluntary. However, if you do not specify how you want taxes withheld, federal regulations require ETF to withhold according to the tax tables assuming that you are married with three exemptions. If you have federal tax withheld, your withholding must be based on the IRS tax tables–you cannot request a specific dollar amount. Every January you will receive a 1099-R form, which should be used to report your retirement income when you file your taxes.

Once retired and collecting your pension, there are a few work limitations you will need to be aware of if you return to any employment through a public school district or state employer. First, annuitants must have a valid termination of employment and be separated from WRS employment for at least 75 calendar days before they can return to WRS-covered employment. If an annuitant does not separate for at least 75 days, the retirement will be considered invalid. If you are rehired and meet the current WRS eligibility standards (working 880 hours per rolling calendar year, or a .67 FTE position), your annuity will be suspended until you re-retire.

If you are rehired and you work less than 880 hours/.67 FTE job your new position, what happens to your annuity depends on when you were first employed in a WRS position:

• If you first began work under the WRS before July 1, 2011, and you return to work for a WRS employer in a position that is at least one-third of full time, you may elect whether you want to continue or stop your annuity.

• If you first began work under the WRS on or after July 1, 2011, and you return to work for a WRS employer in a position that is less than 880 hours / .67 FTE, you may not become a participating employee. Your annuity will continue.

Social Security

When you work and pay Social Security taxes, you earn “credits” toward Social Security benefits. You need 40 credits (10 years of work) to be eligible to receive Social Security. Your Social Security benefit payment is based on how much you earned during your working career. Higher lifetime earnings result in higher benefits. If there were some years you didn’t work or had low earnings, your benefit amount may be lower than if you had worked steadily.

You may start collecting your Social Security benefit as early as age 62. Depending on your date of birth, your full retirement age may be between 66 and 67 years. Starting your Social Security prior to your full retirement age will cause your monthly benefit to be reduced. Additionally, delaying your benefits after your full retirement age will increase your monthly benefit. For example, if you start receiving your benefit at 62, your monthly benefit will be 70% of your full social security benefit; or, if you start receiving your benefit at age 70, your monthly benefit will be 124% of your full social security benefit.

You can use Social Security’s online Retirement Estimator to get immediate and personalized retirement benefit estimates to help you plan for your retirement. For more information, visit the calculator at www.socialsecurity.gov/estimator.

Social Security benefits may be subject to federal tax laws, depending on your annual income. Additionally, some states require state taxation of your Social Security benefit. Fortunately, if you live in Wisconsin, you will not be subject to state taxes for your Social Security benefit. You may want to speak to your tax advisor to determine how much federal (and/or state) taxes should be withheld from your Social Security benefit.

You can work while you receive Social Security retirement (or survivors) benefits. When you do, it could mean a higher benefit for you in the future. Each year Social Security reviews the records for all working Social Security recipients. If your earnings for the prior year are higher than one of the years used to compute your retirement benefit, Social Security will recalculate your benefit amount and will pay the increase retroactive to January the year after you earned the money. If you are younger than full retirement age and make more than the yearly earnings limit, your earnings may reduce your benefit amount.

• If you are under full retirement age for the entire year, Social Security will deduct $1 from your benefit payments for every $2 you earn above the annual limit. For 2018, that limit is $17,040.

• In the year you reach full retirement age, Social Security will deduct $1 in benefits for every $3 you earn above a different limit. In 2018, the limit on your earnings is $45,360 but Social Security will only count earnings before the month you reach your full retirement age.

When you reach full retirement age:

• Beginning with the month you reach full retirement age, your earnings no longer reduce your benefits, no matter how much you earn.

• Social Security will recalculate your benefit amount to leave out the months when they reduced or withheld benefits due to your excess earnings.

Retirement Savings Plans (403b, 401k, IRA)

You will want to consider other avenues of income once retired. There are many different retirement plans you may have contributed to through your career: 403bs through school districts, 401ks through private employers or IRAs through your personal savings.

Through MMSD, you may have contributed to a 403b plan. You are not required to take any funds out of your 403(b) account when you retire. You can leave funds in your 403(b) account and they will continue to accumulate until you withdraw them or roll them over later. Note: your contributions to your 403b plan ends upon retirement from MMSD.

However, if you do plan to make withdrawals – and you retire before age 55 – you will have to pay regular income taxes, plus a 10% penalty on the amount for at least five years or until you reach the age of 591⁄2 (whichever is longer). If you are 55 or older when you retire, you can choose to withdraw some or all of your funds in a lump sum.

When you turn 70 1⁄2, you are required to start withdrawing funds from your account. There's a required minimum distribution that you must take annually, which is based on your age and the age of your spouse. If you fail to take the correct distribution one year, you will be subject to a 50% nondeductible excise tax. Most plan administrators provide for automatic calculation and distribution of RMDs annually.

You may wish to roll over part (or all) of your 403(b) such as a traditional IRA, a Roth IRA so that you have easier access to your funds, different and more varied investment options, or better money management during your retirement years.

TERP (Teacher Emeritus Retirement Program)

TERP is available to employees in the Teacher Unit whose age + years of service = at least 75 (or years of service of at least 30 years). Additionally, if you are currently working part-time, you must have worked at least one year in a full-time status in the previous 10 years prior to retirement.

You will also continue to receive TERP if you return as a substitute or return as a regular employee. Please note: TERP benefits must begin immediately following retirement (it cannot be put on hold).

You have 2 options on how TERP can be used. Please note, TERP cannot be transferred to your Retirement Insurance Account balance to pay for future insurance premiums.

1. TERP can be taxed and direct deposited monthly into your checking and/or savings account. This option is helpful if cash-flow is important to you and/or you are not continuing MMSD’s insurance benefits immediately after retirement.

2. TERP can be used to pay for your monthly family or single health and dental insurance premiums. This option allows for insurance premiums to be taken from your TERP payment pre-tax, similar to your current paychecks, extending the period of time insurance is paid for by MMSD. Any remaining income after insurance premiums have been paid will be taxed and then direct deposited into your checking/savings account.

You will have the opportunity to elect Option 1 or Option 2 during your retirement process and annually thereafter while receiving TERP. Your election will remain in-force through the calendar year and cannot be changed.

The benefit is direct-deposited by MMSD monthly, 12 months out of the year. The direct deposit will be made the 1st day of each month. Your TERP benefit is calculated by taking 19% of your highest base contract:

Annual TERP Benefit Calculation Example
Highest Base Contract	$70,000
TERP Benefits	x0.19
Pre-Tax Annual TERP Benefit	$13,300
# Months Per Year	÷ 12
Per-Tax Monthly TERP Benefit	$1,108.33

TERP is taxable income that begins September 1 after your retirement date and continues for 3 years (36 months). As you can see in the above example, your tax bracket for your TERP benefit will be different than what you are in as a current employee (as the tax bracket calculation is based only on your TERP earnings and nothing else). Normally, TERP payments fall below the lowest tax bracket, therefore State and Federal taxes are not withheld. You may want to speak to a tax advisor to determine if you need to change your tax withholdings for your TERP payments. You will receive a W-2 in January for your TERP income.

ARP (Administrator Retirement Program)

The ARP 403b lump-sum payment is available to employees in the Administrator and Professional- Instructional Units whose age + Administrator / PR-I years of service = at least 70. To be eligible for ARP, the Administrator / PR-I would need to be employed for at least 12 years and contributed a minimum of $50 per paycheck into a 403b for at least 5 years.

The lump-sum payment is divided into two equal contributions, one in July of the year of retirement and the other in January of the year following retirement. The amount of the payment varies based on the years of service and years contributing to the plan. An individualized calculation of the payment will be provided to the eligible retiring Administrator / PR-I.

If receiving ARP, you must keep your 403b account active and open through the 2nd contribution. You will be required to complete a form confirming your account information (including 403b plan name, account number and deposit information) prior to the contributions being made. This information request will be mailed to your home.

Note, there is a non-competitive clause with ARP, requiring no other K-12 employment during the time in which the lump-sum payment is paid out.

Other Income

In addition to the income listed above, you may have other income sources you will want to consider, such as previous retirement plans, out-of-state pensions survivorship Social Security or even a part-time job. It’s recommended you speak to a financial planner about your total income and budget needs.

Insurance Continuation

MMSD Insurance Continuation Coverage

When you retire from MMSD, you have the ability to continue some of your insurance coverage into retirement. The information below only applies if you have MMSD insurance the day prior to your retirement date.

You can elect to continue your coverage immediately following retirement or you can cancel your coverage and come back to MMSD’s plans at a later date. Cancelling your MMSD coverage and enrolling in another plan is a great way to extend how long you have paid insurance coverage. This is usually possible if you or your spouse/domestic partner than has insurance coverage available through another employer. If you decide to enroll in other coverage, you can only re-enroll in MMSD’s plan within 30 days of when the other coverage ends.

As a retiree, you can continue the following coverage as a single or family policy (including child(ren)).

Health Insurance

You may continue your MMSD health insurance when you retire or you can end it at retirement (and reenroll at a later date if you experience a qualifying life event). MMSD’s retiree health insurance coverage can continue for you and any covered family members Some retirees cancel their MMSD coverage when retiring and enroll in a spouse’s insurance coverage until that coverage ends (this is allowable as a “Qualifying Life Event”).

Health insurance can continue for covered members through Dean or Group Health Cooperative. You may elect to enroll in the HMO, POS or PPO (for those who live outside of Southern Wisconsin) plan. The plan you elect will continue for the calendar year in which you retire and you may switch to another plan during Open Enrollment (October-November).

Coverage may continue until you and/or your spouse turn 65 and/or when your child(ren) turn 26. When you or your spouse turns 65, the coverage for the individual turning 65 will transfer to a Medicare Supplement Plan. MMSD will provide Medicare Supplement information for Dean, Group Health Cooperative and WPS – you may enroll in one of these plans or can find a plan on your own. There are no premium discounts by continuing with a MMSD provided Medicare Supplement plans vs finding your own plan (the plans offered are the same plans available to all Wisconsin residents over the age of 65). Refer to the Medicare Section in this document for more information about Medicare Coverage.

The Dean and Group Health Cooperative HMO, POS and PPO insurance premiums increase annually on July 1. Medicare Supplement insurance premiums increase annually on January 1. As a retiree, you will be notified by MMSD when the premium increases occur, as long as MMSD is paying for your retiree insurance coverage. If you are paying the premiums directly to Dean, Group Health Cooperative or WPS, they will notify you of premium increases.

*Important Information: If you or your spouse has access to the State of Wisconsin Sick Leave Credit Conversion Program (for those who have worked and retired through a State of Wisconsin job), it is strongly suggested you do not continue MMSD’s health insurance plan into retirement until after the Sick Leave Credit Conversion Program funds have been exhausted. Failure to exhaust these funds through the Wisconsin Sick Leave Credit Conversion Program prior to turning 65, while continuing on MMSD’s health insurance plan, will force forfeiture of any remaining balance with the Wisconsin Sick Leave Credit Conversion Program. Refer to ETF Publication 4132 for more information.

Dental Insurance

You may continue your MMSD dental insurance when you retire or you can end it at retirement (and reenroll at a later date if you experience a qualifying life event). MMSD’s retiree dental insurance coverage can continue for you and any covered family members – single or family coverage. (self, spouse and/or child(ren)). Some retirees cancel their MMSD dental coverage when retiring to enroll in a spouse’s insurance coverage until their coverage ends (this is allowable as a “Qualifying Life Event”) or they cancel coverage completely and pay for dental services out-of-pocket.

Dental insurance can continue for covered members through Delta Dental of Wisconsin. The Delta Dental of Wisconsin Network utilizes the national Delta Dental network, giving you access to more than 155,000 dentists nationally.

Coverage may continue indefinitely for you and your spouse; coverage for your child(ren) ends when they turn 26.

The Delta Dental insurance premiums increase annually on July 1. As a retiree, you will be notified by MMSD when the premium increases occur, as long as MMSD is paying for your retiree insurance coverage. If you are paying the premiums directly to Delta Dental, Delta Dental will notify you of premium increases.

Life Insurance

There are multiple types of life insurance coverage available at MMSD, all are impacted differently in retirement.

Basic + Retirement Life Insurance: Your coverage can continue into retirement if premiums are paid. After retirement, when you turn 65, your Basic + Retirement Life Insurance plan becomes paid-in-full and premiums are no longer due. The policy has an age-reduction provision built in, reducing the life insurance benefit based on the age at death:

• Up to Age 65: 100% of preretirement policy value
• Age 65 – Age 67: 75% of preretirement policy value
• Age 68 – Age 71: 50% of pre-retirement policy value
• Age 72 +: 25% of pre-retirement policy value

Basic Life Insurance: Your coverage through MMSD ends at retirement. You will have the opportunity to Convert or Port your coverage through The Standard Life Insurance Company.

Voluntary Life Insurance for Yourself: Your coverage can continue into retirement, up to age 65, if premiums are paid. After retirement, when you turn 65, your Voluntary Life Insurance ends and cannot be continued.

Voluntary Life Insurance for Spouse: The coverage can continue into retirement, up to when your spouse turns 65, if premiums are paid. After retirement, when your spouse turns 65, their Voluntary Life Insurance ends and cannot be continued.

Voluntary Life Insurance for Child(ren): The coverage can continue into retirement, up to when your child(ren) turn 26. When your child(ren) turns 26, their coverage ends.

Long Term Care

You may continue your Long Term Care insurance for yourself and/or your spouse into retirement by continuing to pay for premiums. Contact UNUM at 688-679-3054 to file a claim when benefits are needed.

Coverage Not Continuing into Retirement

Federal regulations (COBRA) require MMSD to notify you of your rights to continue flexible spending coverage and vision coverage through MMSD after your retirement. You will be responsible for 100% of the premium to continue COBRA. This premium cannot be taken from your MMSD retirement benefits. More about your COBRA continuation rights will be mailed to your home after retirement.

Disability

If you have short-term disability or long-term disability when you retire, your coverage will end and cannot be continued into retirement. Disability coverage is not eligible for COBRA.

When Does My Insurance End as an Employee?

Once you retire, your employee insurance will continue for a short period of time before changing to retiree coverage. Below is a chart to help you determine when coverage your ends as an employee and then transitions to retiree coverage.

SCHOOL BASED EMPLOYEE (TE Unit, EA Unit, Food Service Unit, Security Assistants, SEE Unit (10 mo.)

I am retiring on the last day of the school year:
Health Insurance Ends	8/31
Dental Insurance Ends	8/31
Vision Insurance Ends	8/31
Flex Spending Ends	6/30 (claims for services prior to 7/1 due within 90 days)
Long Term Care Ends	6/30
Life Insurance Ends	Last day worked
Long Term Disability Ends	Last day worked
I am retiring any other time of the year:
Health Insurance Ends	At the end of the month of your last day worked
Dental Insurance Ends	At the end of the month of your last day worked
Vision Insurance Ends	At the end of the month of your last day worked
Flex Spending Ends	At the end of the month of your last day worked (claims for services prior to 7/1 due within 90 days)
Long Term Care Ends	At the end of the month of your last day worked
Life Insurance Ends	Last day worked
Long Term Disability Ends	Last day worked

YEAR ROUND EMPLOYEE (CU Unit, PR/PR-I, ADMIN, NUC, TRADES, SEE (12 mo.)

Regardless of when I retire:
Health Insurance Ends	At the end of the month of your last day worked
Dental Insurance Ends	At the end of the month of your last day worked
Vision Insurance Ends	At the end of the month of your last day worked
Flex Spending Ends	At the end of the month of your last day worked (claims for services prior to 7/1 due within 90 days)
Long Term Care Ends	At the end of the month of your last day worked
Life Insurance Ends	Last day worked
Short & Long Term Disability Ends	Last day worked

Payment of Post-Retirement Insurance

When you retire at MMSD, your Personal Illness balance is converted into an account to pay for retiree insurance. This account can only be used for insurance premiums and cannot be taken as a cash benefit. Additionally, the RIA account does not earn interest. If you do not continue MMSD’s insurance immediately following retirement, your Personal Illness bank will remain at MMSD indefinitely. Please note, if you pass away, any remaining funds in your Personal Illness bank will be transferred to your spouse.

You have the option to put your Personal Illness bank into an Escrow Account or Health Reimbursement Arrangement Account. This is a one-time election and cannot be changed once you have retired. Once your Personal Illness bank has been exhausted, you will have the ability to continue your retiree insurance coverage by paying your premiums directly to the insurance carrier(s).

Escrow Account

The Escrow Account is an account where MMSD pays your insurance premiums directly to the insurance carriers. The Escrow Account will pay for:

• District provided medical paid by MMSD:
  • Dean HMO, POS, PPO and Medicare Part B Supplement
  • GHC HMO, POS, PPO and Medicare Part B Supplement
  • WPS Medicare Part B Supplement
• District provided dental paid by MMSD through Delta Dental of Wisconsin
• District provided Basic+Retirement Life and Voluntary Life paid by MMSD through The Standard
• District provided long-term care paid by MMSD through UNUM

Health Reimbursement Arrangement

The Health Reimbursement Arrangement (HRA) Account is an account where MMSD pays your insurance premiums directly to the insurance carriers listed below and/or can reimburse you directly for non-MMSD coverage, such as an individual health plan, Medicare Part B Supplement and/or Medicare Part D Supplement, and

• District provided medical paid by MMSD:
  • Dean HMO, POS, PPO and Medicare Part B Supplement
  • GHC HMO, POS, PPO and Medicare Part B Supplement
  • WPS Medicare Part B Supplement
• District provided dental paid by MMSD through Delta Dental of Wisconsin
• District provided Basic+Retirement Life and Voluntary Life paid by MMSD through The Standard
• District provided long-term care paid by MMSD through UNUM

The HRA gives you more flexibility in healthcare coverage options and also allows for reimbursement of a Medicare Part D Supplement plan. Unfortunately, though, the HRA does have some limitations. It does not pay for or reimburse you for life insurance coverage, therefore if you wish to continue life insurance you will need to pay for it out of your pocket. It also cannot be used to reimburse you for medical expenses, such as copays or deductibles.

Finally, you cannot receive reimbursement of insurance premiums from your HRA while still working for MMSD (such as if you work as a Substitute or Coach).

If you elect the HRA, you can complete the “Request for Reimbursement from Health Reimbursement Arrangement” form to set up reoccurring reimbursements for your individual coverage. This form would need to be return to Human Resources, along with proof of the incurred premium, before reimbursement can be made. Once returned and processed, MMSD will send you a check for your reimbursement request.

Retirement Process

Congratulations on deciding to retire from MMSD! We appreciate your hard work, dedication and commitment to MMSD’s students and families. Now that you’ve made the decision to retire, there are a few things you’ll need to do. It is imperative you follow the deadlines below. Failure to meet these deadlines will result in delayed benefits and possibility the inability to retire from MMSD.

4 months – 2 weeks before retirement (depending on employee type)

• Submit your Retirement Notice at https://www.madison.k12.wi.us/human-resources/resignationretirement-notice

  • January 15th for Administrators and Professional-Instructional employees

  • February 15th for employees in the Teacher Unit

  • At least 4 weeks prior to retirement for Supportive Educational Employee, Custodian and Trades

  • At least 2 weeks prior to retirement for all other employees

7- 10 months before retirement

• Contact Wisconsin Retirement System for a Retired Annuitant Estimate at 877-533-5020
• If eligible for Social Security, request estimate 1-866-770-2262 or SSA.gov

3 months before retirement

• Attend MMSD Retirement Counseling Session
• Send in WRS Retired Annuity Election to Wisconsin Retirement System (WRS)
• If eligible, apply for Social Security at SSA.gov

1 - 3 months before retirement

• Enroll in Medicare, Medicare Supplement/Advantage and Medicare Part D if age 65, or soon to be age 65

Download a pdf version of this checklist

Escrow and Health Reimbursement Account Balance

Shortly after your last day worked, MMSD will complete a final calculation of your estimate Escrow or HRA account since the information you received previously was an. Your official account balance information will be mailed to your home.

If you decided to cancel your MMSD insurance when you retired, your Personal Illness bank will remain in your name indefinitely. At the time in which your non-MMSD insurance ends, please reach out to MMSD to re-enroll in retiree coverage. You will have 30 days from the date in which your non-MMSD insurance ended to re-enroll in MMSD’s retiree coverage.

You will receive a semi-annual statement of your Escrow / HRA account balance. When your account balance runs low, usually covering approximately 2 additional months of paid insurance, you will receive a notification from MMSD that your account will end. If you have the Escrow account, MMSD will pay the full balance of the last month of insurance and will request you reimburse MMSD for any difference. You will then be given the opportunity to transition to paying the insurance carriers directly for coverage. Information on how to transition to paying the carriers directly will be included in your account ending letter.

WRS Limits

If you plan on working for a WRS employer, you must have a 75 calendar-day break in employment before you can return to work. This includes working as a substitute, coaching or working for MSCR. If you do not take a 75 day break, WRS will recuperate all of the pension paid to you.

While collecting your WRS pension, there are also restrictions in the amount of hours you can work when you return to a WRS employer (such as MMSD, MSCR, Madison College, UW Madison, etc.). You are restricted to working less than 880 hours per WRS employer within a 12 month rolling period of time. When calculating the 880 hours, the first 12 months is measured from your first pay check date to 12 months later. At that time, WRS will look at your hours worked to see if you are under 880 hours. If you are under than your calendar becomes a rolling 12 months. This means that the newest pay check hours are added to the total and the oldest are subtracted.

As an example, you are a sub teacher and your first day worked was 11/20/2017. The first pay check would be 01/2/2018. The report would total your hours paid from check dates 01/02/18 - 11/30/18 (12/1/18). After the first 12 months the calendar becomes rolling. With the check dated 01/02/19, the hours from the check dated 01/02/18 fall off and the newest hours are added to the total. With the next check dated 02/01/19, the hours from the check dated 02/01/18 fall off and this is how the calendar become rolling, etc. Example illustrated:

Check Date	Hours
1/02/2018	80	Total 659.2
2/01/2018	56		Total 671.2
3/01/2018	116
3/30/2018	56
5/01/2018	83.2
6/01/2018	80
6/15/2018	60
10/1/2018	16
11/1/2018	39.2
11/30/2018	72.8
1/02/2019	92

If you decide to return to work for a WRS employer, it will be your responsibility to track your hours. If you are paid hourly, your hours will be reported on each of your pay stubs. If you are paid in quantities of days, each day is based on 8 hours for WRS purposes.

403(b) Distributions

Through MMSD, you may have contributed to a 403(b) plan while you were an active employee. You are not required to take any funds out of your 403(b) account when you retire. You can leave funds in your 403(b) account and they will continue to accumulate until you withdraw them or roll them over later.

However, if you do plan to make withdrawals – and you retire before age 55 – you will have to pay regular income taxes, plus a 10% penalty on the amount of at least five years or until you reach the age of 591⁄2 (whichever is longer). If you are 55 or older when you retire, you can choose to withdraw some or all of your funds in a lump sum. When you turn 701⁄2, you are required to start withdrawing funds from your account. There’s a required minimum distribution that you must take annually, which is based on your age and the age of your spouse. If you fail to take the correct distribution one year, you will be subject to a 50% nondeductible excise tax. Most plan administrators provide for automatic calculation and distribution of required minimum distributions annually.

To request a distribution or to roll your account into an IRA, you will need to reach out to your 403b plan provider and request the appropriate forms for the distribution/rollover. MMSD is required to sign your completed form before being returned to the plan provider for processing. Please contact the Human Resources Department to set up a time to have your form signed

TERP (Teacher Emeritus Retirement Program)

You will begin receiving your TERP payment on September 1st following your retirement date. TERP will be paid for 3 years or 36 months. Your payment will be direct- deposited into the checking or savings account you have on file with MMSD. As a reminder, TERP usually falls below all tax brackets, meaning taxes are normally not withheld, but the income is taxable. If you’d like to have taxes withheld, please complete a State W-4 and Federal W-4 requesting an additional flat dollar amount, to be withheld. The W4’s should be returned to MMSD’s Payroll Department.

If you requested to have insurance premiums withheld from TERP, they will be taken out pre-tax. If your TERP payment cannot cover the entire insurance premium, the remainder of the premium will automatically be taken from your Escrow or HRA Account.

You can decide to have insurance premium taken from TERP on an annual basis. Every fall, you will receive a TERP election from which designates how you would like to designate TERP. Please complete and return this form to MMSD.

Survivor Benefits

In the unfortunate event that you pass away, your health and dental coverage may be continued for your spouse and dependent(s). Coverage will continue under the same rules your coverage follows. Your spouse and/or dependent(s) will have access to any remaining Escrow / HRA Account funds to continue to pay for the insurance premiums.

If you have a MMSD retiree life insurance policy, your beneficiaries have up to 1 year following your death to file a life insurance claim. They will want to contact MMSD Human Resources to start the claim process. If the claim is started after the 1 year timeframe, any claim benefits will be denied.

Your family will need to notify WRS as soon as possible after your death to determine your pension payouts. Call 877-533-5020 with the following information about you:

• Full name

• Address

• Date of death

• Social Security Number

WRS will then stop your monthly payments and recover any payments issued after your death. They will then determine whether any death benefits are payable from the annuity (dependent on the option you selected when you first started receiving your pension). If any death benefits are payable, they will send the death benefit estimates and application to the eligible beneficiaries. This process can take up to 90 days.

4 months – 2 weeks before retirement (depending on employee type)

• Submit your Retirement Notice at https://www.madison.k12.wi.us/human-resources/resignationretirement-notice

  • January 15th for Administrators and Professional-Instructional employees

  • February 15th for employees in the Teacher Unit

  • At least 4 weeks prior to retirement for Supportive Educational Employee, Custodian and Trades

  • At least 2 weeks prior to retirement for all other employees

7- 10 months before retirement

• Contact Wisconsin Retirement System for a Retired Annuitant Estimate at 877-533-5020
• If eligible for Social Security, request estimate 1-866-770-2262 or SSA.gov

3 months before retirement

• Attend MMSD Retirement Counseling Session
• Send in WRS Retired Annuity Election to Wisconsin Retirement System (WRS)
• If eligible, apply for Social Security at SSA.gov

1 - 3 months before retirement

• Enroll in Medicare, Medicare Supplement/Advantage and Medicare Part D if age 65, or soon to be age 65

Month of retirement

• Return MMSD post-retirement forms (example found in Appendix A) received at the Retirement Counseling Session to Benefits Division prior to your last day worked. All insurance forms are found in Appendix B.
  • Escrow/HRA Election Form
  • Insurance Election Form
  • Individual Enrollment Forms (if continuing coverage)
    • Health
    • Dental
    • Life Election
    • Life Beneficiary
  • TERP Election Form (Teachers only)
    • Turn in any Laptops, IPads and/or phones to Computer Technician in school
    • Turn in Keys and ID badge to Building Secretary/Supervisor

Download a pdf version of this checklist

Download the Irrevocable Election for Escrow or Health Reimbursement Arrangement (HRA) in Retirement Form

Download the Retirement Insurance Account Balance Form

Download the Retirement Insurance Contination Election Form

Download the Teacher Emeritus Retirement Agreement (TERP) Form

Download the Teacher Emeritus Retirement Plan Annual Election Form

Download the HRA Reimbursement Form

In the following pages you will find the forms needed to retire from MMSD and insurance continuation enrollment forms for health insurance, dental insurance and life insurance. You do not need to complete a separate form to continue your long- term care insurance.

Retirement Forms

• All forms below must be returned to the Benefits Division prior to your last day worked.
  • Irrevocable Election for Escrow or Health Reimbursement Arrangement in Retirement
  • Retirement Insurance Continuation
  • Health insurance carrier form (GHC or Dean)
  • Delta Dental Enrollment Form
  • Retirement Life Insurance Election
  • Retirement Life Insurance Beneficiary Form
  • Teachers Only:
    • Teacher Emeritus Retirement Agreement
    • Teacher Emeritus Retirement Plan
    • Annual Election Form

All sections outlined in RED below are required to be completed.

Health & Dental

• If you wish to continue single health and/or dental coverage, complete 1 insurance enrollment form for the plan you wish to continue. Please note, your Social Security Number and date of birth is required.

• If you wish to continue family health and/or dental coverage, complete 1 insurance enrollment form for the plan you wish to continue. Please note, Social Security Numbers and dates of birth are required.

In addition to completing the insurance continuation forms, you must also complete the Retiree Insurance Continuation Form in your Retirement Estimate Packet.

Download the Group Health Cooperative Health Insurance Form

Fill out the following areas:

• Applicant Name & Address Sections.
• Coverage, Phone Number, Marital Status and Reasons for enrollment sections.
• The plan type you are applying for.
• The list of people to be covered by this plan.

Download the Dean Health Insurance Form

Fill out the following areas:

• Section A
• Section B
• Section C
• Sign at the bottom of the page

Download the Delta Dental Insurance Form

Fill out the following areas:

• The section labeled "Complete this section if you are accepting, changing, or terminating coverage"
• Coverage Type section of the page.

Download the Retirement Life Insurance Beneficiary Form

Fill out the following areas:

• Member/Employee Information (Group Name & Group No. can be left blank)
• Beneficiary Information at the bottom of the page.