POST RETIREMENT EMPLOYMENT OPTION (PREO)

ESI is an employee leasing company incepted in 1999 by three retired educators.

Founder and leader of the Return-to-Work (RTW) program in Arizona.

Ushered original legislation to make the RTW concept legal.

Currently in over 160 Arizona school districts, colleges, cities, and towns.

Offices in Tucson, Phoenix and Northern Arizona (Corporate Office).

Normal Retirement◦ 1.) 80 Points (age + years of ASRS service)◦ 2.) Age 62 with 10 or more years of ASRS service◦ 3.) At age 65

Early Retirement◦ At least age 50 with 5 or more years of ASRS

service

1.) Average Monthly Compensation (highest 36 consecutive months of salary within the last 120 months of service or 60 months*)

2.) Total ASRS Credited Service 3.) Graded Multiplier

◦ 0-19.99 YOS 2.10%◦ 20-24.99 YOS 2.15%◦ 25-29.99 YOS 2.20%◦ 30+ YOS 2.30%

1.) 20/20 Rule◦ RTW effective immediately part-time

2.) 12 Consecutive Month Rule◦ RTW must wait 12 consecutive months

3.) Work for Non-ASRS Employer

4.) ESI ◦ RTW effective immediately full-time

Alternate Contribution Rate (ACR)◦ SB1609-Signed by Governor: April 29, 2011◦ 8.64% Fiscal Year 2012-2013◦ Effective date of July 1, 2012◦ Employer is responsible for ACR

Current Employee◦ Pay Rate 100%◦ ASRS Contribution Rate (10.74%)◦ FICA (SS & Medicare) (7.65%)◦ Total Pay Before Taxes 81.61%

ASRS Retiree (30 Years of Service and No Joint & Survivor Option)◦ Pay Rate 69%◦ ASRS Contribution Rate 0%◦ FICA (SS & Medicare) 0%◦ Total Pay Before Taxes 69%

12% Difference!!!

Current Employee◦ Pay Rate $54,000◦ ASRS Contribution Rate (10.74%) ($5,800)◦ FICA (SS & Medicare) (7.65%) ($4,131)◦ Total Pay Before Taxes $44,069

ASRS Retiree (30 Years of Service and No Joint & Survivor Option)◦ Pay Rate (69%) $37,260◦ ASRS Contribution Rate (10.74%) $0◦ FICA (SS & Medicare) (7.65%) $0◦ Total Pay Before Taxes $37,260

$6,809 Difference!!or

$3.27/Hour!!

COBRA?◦ Medical-Base EPO $297 ($447-$150)◦ Medical-Buy-up PPO $386 ($536-$150)◦ Medical-HDHP $253 ($403-$150)◦ Dental-Low Option (Delta) $29.01◦ Dental-High Option(Delta) $46.68◦ Dental-EDS $8.42

ASRS Premium Benefit $150/$260 ASRS Retiree Plan?

◦ UnitedHealthcare Non-Medicare Plan $491 ($641-$150)

ASRS Premium Benefit $150/$260 Medicare Plans $190-$342

ASRS Premium Benefit $100/$170 Dental-Low Option $16.67 Dental-High Option $35.51

Spousal Plan?

401(k) Tax-Sheltered Account (TSA)◦ ING Financial◦ 20 + Mutual Funds◦ No surrender charge among separation of service

No obligation financial advisement Worksite benefits/Cafeteria plan

◦ Dental and Vision◦ Life Insurance and Long-Term Care◦ Flexible Spending Account (FSA)

Speak to your financial advisor ESI can provide an advisor if desired ASRS Retirement Option Concerns

◦ Seven Joint & Survivor Options…◦ Service purchase buy-backs?◦ Health Insurance?

What about sick, personal, vacation leave? What about extra duty assignments? How do I get paid and how often? What about evaluations? Is the program calendar sensitive? Can I “un-retire”? What is the termination clause? Should I attend an ASRS group meeting? Everything looks great! How do I start?

ESI ◦ www.educationalservicesinc.com

Arizona State Retirement System◦ www.azasrs.gov

Social Security◦ www.ssa.gov

Internal Revenue Service◦ www.irs.gov

Corporate Office PO Box 235 Cottonwood, AZ 86326 toll free: (877) 303-7639 office: (928) 634-7639 fax: (928) 634-5639 esi@esiaz.us

Tucson Office SJI Financial (Financial Advisor Group) Jim Fogltance Jim Bishopp 5355 North Estelle Drive 7481 East Broadway BLVD #100 Tucson, AZ 85718 Tucson, AZ 85710 office: (520) 465-2579 office: (520) 326-6133

Phoenix Office Phil Tavasci  5450 East High Street #300 Phoenix, AZ 85054 office: (480) 236-5074 fax: (480) 794-1703