(by Gary Day)

When I retire what happens to the in-service death benefit from TRS? If you are in Tier 1, the benefit ends at the time of your retirement. For almost all members in Tiers 2, 3, & 4 the death benefit extends into your retirement. During the first year of retirement in is 50% of the death benefit in effect at the time of retirement. In year 2 of retirement it is equal to 25% and in the 3rd and ensuing years it is 10% of the benefit at age 60 or at retirement if earlier. This is a good reason to keep your designated beneficiary up to date.

How do I calculate the value of my unused personal illness days when I leave the district? There is a chart for this on page 29 of the contract. Divide your accumulated number of days by your years of service in Middletown to determine the correct column. Then use your years of service to find the appropriate row. The point of intersection is the amount that will be used for each of your days.

I am a Tier 3 member with 29 years of experience at age 55. Must I wait until age 62 to collect my pension? No, you can collect at age 55, but because you are less than age 62 with fewer than 30 years of service you will be penalized. This year you would collect 42.3% of your FAS. Next year, with 30 years of service you could collect 60% of your FAS.

When I select an option at the time of retirement, can I name my child as a beneficiary? You can name a child as a beneficiary, but if you select a survivor option (pop-up or not), your pension will be reduced dramatically as your child’s age will be a factor in the “cost” of selecting the option. The age of a beneficiary has no impact if you select a 5 or 10 year guarantee option.

Any questions regarding retirement, salary, or the Benefit Fund, may be e-mailed to: questions@middletownteachers.org. All questions will receive a reply; some may appear in future newsletters.