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LATE,[TMRS Employee Education on March 12, 2025.]
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THERE'S[00:32:51]
GONNA[00:32:51]
BE,[00:32:52]
THERE'S[00:32:52]
GONNA BE MORE MONEY, RIGHT? IF I RETIRE BETTER VERSUS DECEMBER VERSUS JANUARY.JANUARY IS ALWAYS GONNA BE HIGHER THAN DECEMBER.
DECEMBER ALWAYS GONNA BE HIGHER THAN NOVEMBER ONE.
ONE MONTH OF ONE MORE MONTH OF DECEMBER'S NUMBERS COMPARED TO JANUARY'S NUMBERS.
JANUARY JUMPED AT 200 A MONTH.
ARE YOU SAYING FOR ONE MORE MONTH? FOR AN EXTRA 200 A MONTH? NOW MAY NOT A LOT.
YOUR 8-YEAR-OLD SON, THANK YOU FOR HAVING THAT EXTRA $200, RIGHT? SO THAT'S WHEN YOU'RE MAKING THAT INFORMED DECISION.
YOU BROUGHT ALL THOSE NUMBERS AND YOU'RE MAKING THAT INFORMED DECISION.
I SO IT, EVERYONE'S IN ALL DECISION, BUT AT LEAST IF YOU, THOSE NUMBERS, WHEN YOU LOOKED AT IT, YOU'RE MAKING AN INFORMED DECISION.
SO ESTIMATES, HOPEFULLY EVERYONE HAS GONE OUR WEBSITE, REGISTERED YOUR ACCOUNT, MY CAMERAS, AND RUN THOSE NUMBERS, RIGHT? RUN THE NUMBERS.
NOW, THOSE OF YOU ARE REALLY KIND OF FAR AWAY FROM RETIREMENT.
THEY'RE NOT GONNA BE AS ACCURATE.
I'M GONNA SHOW YOU THE CLOSER YOU ARE, THE MORE ACCURATE THOSE NUMBERS ARE.
IT'S A GREAT TOOL TO USE AND HAVE A BASELINE, ESPECIALLY IF YOU WANNA LIVE ALIVE.
RETIREMENT, 65, I SHOULD SAY RETIREMENT, YOU'RE BEHIND.
SOMETHING HAPPENED, OKAY? WHEN YOU GOTTA RUN YOUR ESTIMATE, AND THIS IS A SCREENSHOT FOR ALL MY TM RS, IT'S ASKING YOU FOR A MONTH, ANY YEAR.
IT IS NOT ASKING YOU FOR A DAY, BECAUSE
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DATES ARE ALWAYS THE LAST DAY OF MONTH, OKAY? ALWAYS THE LAST DAY OF MONTH.YOUR FIRST CHECK FROM US IS THE LAST DATE OF THE FOLLOWING.
SO THIS ESTIMATE ON JANUARY, IF YOU RETIRE IN JANUARY, HIS FIRST CHECK IS NOVEMBER 28TH, REGARDLESS OF WHO HE STOPS WORKING.
SO IF YOU STOP WORKING JANUARY 5TH, HE'S NOT GETTING PAID.
FEBRUARY 5TH, HE'S GONNA PAY FEBRUARY 28TH.
OKAY? LAST THING, WHEN YOU'RE GONNA RETIRE, THAT'S STEP ONE OF THE RETIRE PROCESS.
STEP TWO IS CHOOSING WHAT PAYMENT OPTION TO PAY.
NOW, YOU DO NOT CHOOSE THIS OPTION YOU TO RETIRE.
YOU, I NEVER ONE OPTION TELL YOU GOING OFF PAPERWORK.
THIS IS WHEN YOU CHOOSE YOUR OPTION OF THE SEVEN PAYMENT OPTIONS.
EACH ONE OF 'EM ARE GONNA PAY YOU FOR LIFE, YOUR FOR LIFE, WHAT YOU ARE CHOOSING, AND YOU CHOOSE THAT PAYMENT OPTION IS WHAT HAPPENS TO YOUR BENEFIT FROM YOUR DAD.
THE DARK SIDE, SORRY, WE TALK ABOUT IT A LOT.
WHAT'S GONNA HAPPEN TO YOUR MONEY UPON YOUR PASSING? THAT IS ESSENTIALLY WHAT YOU WERE CHOOSING WHEN YOU CHOOSING YOUR RIGHT.
THERE ARE SEVEN DIFFERENT OPTIONS.
RETIRING LIFE ONLY, PRETTY SIMPLE.
EXACTLY AS IT SAID, YOU'RE LIFE ONLY WHEN YOU DIE.
WHETHER YOU PASS AWAY IN THREE YEARS OR ANOTHER 23 YEARS DOWN THE ROAD, WE'RE GONNA PAY YOU THIS HIGHEST POSSIBLE PAYMENT FOR THE REST OF YOUR LIFE.
WHEN YOU PASS, THERE ARE NO FURTHER PAYMENTS.
THERE IS ONE EXCEPTION, ONE CAVEAT THAT APPLIES TO ALL OF S AND THAT SAYS, YOUR MONEY HAS TO YOUR PAY SHEET.
SO THE MONEY, YOUR MONEY IS YOUR PAY BACK, YOUR PAYCHECKS AND THE INTEREST EARN BUY LAW HAS TO PAY THAT.
WE DO NOT RETURN TO THE STATE OF TEXAS.
WE DO NOT GIVE IT BACK TO THE, SO IF YOU DO CHOOSE RETIRED LIFE ONLY OPTION, YOU STILL HAVE TO DESIGNATE A BENEFICIARY BECAUSE IN A TRAGIC EVENT, HE'S GONNA HELP YOU.
OKAY, CAN EVERYONE HEAR ME? COULD YOU NOT HEAR ME BEFORE? NOW I FEEL KIND OF BAD.
OKAY, SO THE RETIRED LIFE ONLY YOU GUYS ARE GONNA GET PAID FOR LIFE RIGHT NOW IN THE TRAGIC EVENT, YOU MAY PASS AWAY THREE MONTHS INTO RETIREMENT.
WE HAVE TO PAY THAT MONEY OUT TO SOMEONE.
SO THAT'S WHY YOU STILL HAVE TO DESIGNATE A BENEFICIARY.
NOW THAT MONEY THAT GETS PAID OUT IS YOUR CONTRIBUTIONS AND INTEREST, NOT CITY'S MATCH.
THE FLIP SIDE TO THAT IS IF YOU'RE STILL ALIVE IN 99, YOU'RE STILL GETTING PAID, RIGHT? SO THAT'S HOW PENSIONS WORK.
SOME WILL OUTLIVE IT, OTHERS WILL NOT.
IF YOU ARE CHOOSING RETIRE LIFE ONLY AND YOU'RE MARRIED, GUESS WHAT HAS TO HAPPEN? ANY GUESSES? ABSOLUTELY.
YOUR SPOUSE HAS TO SAY IT'S OKAY.
TEXAS IS A COMMUNITY PROPERTY STATE.
SO IF YOU ARE RETIRING AND NOT LEAVING YOUR SPOUSE A LIFETIME BENEFIT, YOU CAN DO IT.
MOST PEOPLE SAY, I CAN'T DO THAT.
NO, YOU CAN, AS LONG AS YOUR SPOUSE AGREES TO IT.
OKAY? I'VE MET A LOT OF PEOPLE ACROSS THE STATE, UM, AND THAT THE BEST EXAMPLE IS THEY HAD A SPECIAL NEEDS CHILD AND THEY WANTED TO PROVIDE FOR THEIR CHILD, AND THEY HAD PROVIDED OTHERWISE IN ANOTHER PLAN FOR THEIR SPOUSE.
SO YEAH, YOU CAN LEAVE YOUR CHILD AS THE, AS YOUR BENEFICIARY, AS I, IF YOU'RE MARRIED, JUST MAKE SURE YOUR SPOUSE SIGNS IT, OKAY? OH, I DO FEEL LIKE NOW I'M WHISPERING
OKAY? SO THE NEXT SET OF OPTIONS ARE CALLED SURVIVOR OPTIONS.
OKAY? PRETTY MUCH YOU UNDERSTAND YOU GET TO LEAVE A BENEFIT TO A SURVIVOR, ONE SURVIVOR SINGULAR, ONE SURVIVOR, HOW THESE PLANS WORK.
AND THERE'S THREE OF 'EM THAT WORK EXACTLY THE SAME,
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EXCEPT FOR THE PERCENTAGES ARE DIFFERENT.YOU GET TO CHOOSE A PERCENTAGE, A HUNDRED PERCENT, 75 OR 50%.
WHAT THIS MEANS IS YOU GET A CHECK FOR LIFE UPON YOUR DEATH.
ONE PERSON CONTINUES RECEIVING YOUR CHECK, A PERCENTAGE OF YOUR CHECK FOR THE REST OF THEIR LIFE.
SO YOU'RE COVERING NOT ONLY YOURSELF, BUT ONE OTHER PERSON.
EITHER THEY'RE GONNA CONTINUE GETTING A HUNDRED PERCENT OF YOUR CHECK, 75% OR 50% OF YOUR CHECK FOR THE REST OF THEIR LIFE.
SOME PEOPLE ARE LIKE, I'VE BEEN MARRIED FOR 30 YEARS, OBVIOUSLY IT'S GONNA BE, THAT'S WHAT I'M GONNA TAKE.
I'M GONNA PUT MY SPOUSE DOWN, RIGHT? BUT YOU GET A LOT OF QUESTIONS WHEN YOU COME UP TO THESE SURVIVOR OPTIONS.
THREE BIG QUESTIONS I ALWAYS GET, WHO CAN BE A SURVIVOR? WHO CAN BE, WHO DO I HAVE TO PUT MY SPOUSE? WELL, I JUST TOLD YOU, NO, YOU DON'T HAVE TO PUT YOUR SPOUSE, YOU JUST NEED SPOUSAL CONSENT IF YOU'RE NOT PUTTING YOUR SPOUSE.
UM, ONE IS, CAN I PUT MY KID DOWN AND I PUT MY KID, MY GRANDCHILD, MY NIECE, MY NEPHEW, GET ALL KINDS OF QUESTIONS LIKE THAT? YES, YOU CAN.
THE IRS HAS AN ISSUE WITH ONE OF THE LEVELS THOUGH, RIGHT? SO IF YOUR SURVIVOR IS SOMEONE YOU'RE CHOOSING WHO IS NOT YOUR SPOUSE AND IS MORE THAN 20 YEARS YOUNGER THAN YOU ARE, THE IRS KEEPS YOU FROM DOING A HUNDRED PERCENT.
THEY SAY, NOPE, YOU CAN'T DO A HUNDRED PERCENT, YOU CAN DO 50%.
AND IT, REGARDLESS OF THE AGE DIFFERENCE BETWEEN YOU AND THE RI, YOU CAN ALWAYS DO 50%, 75% ACTUALLY DEPENDS ON WHAT THE AGE DIFFERENCE IS.
OKAY? SO IF I'M WANTING TO LEAVE MY CHILD WHO IS MORE THAN 20 YEARS YOUNGER THAN I AM AS MY 50% SURVIVOR, YEAH, I CAN DO IT.
I CAN CHOOSE TO DO SO, OKAY? NOW, AND IF I'M MARRIED, I CAN STILL DO IT AS LONG AS HE AGREES TO IT, AS LONG AS HE SIGNS OFF ON IT.
THE OTHER QUESTION, YES, YOU WERE RECEIVING, YES.
SO THAT'S HOW THE 50%, WHATEVER I'M GETTING WHEN I DIE, THAT 50% OF MY CHECK WOULD CARRY ON TO THE SURVIVOR OR 75% OR A HUNDRED PERCENT.
THAT'S A PERCENTAGE OF YOUR CHECK THAT CARRIES ON TO THE SURVIVOR.
IF I LEAVE MY CHILD DOWN AS MY 50% SURVIVOR, THEY'RE LOOKING AT MY LIFE EXPECTANCY AND HIS LIFE EXPECTANCY.
HE'S GOT A MUCH LONGER LIFE EXPECTANCY.
SO THEY'VE GOTTA TAKE THAT FROM ME TO MAKE SURE HE'S GONNA HAVE A CHECK.
OKAY? BUT YOU CAN, NO ONE SAYS YOU CAN'T.
I'M NOT, I WON'T DO IT, BUT ALL RIGHT,
SO ANOTHER QUESTION THAT I GET IS, WELL, WHAT HAPPENS IF MY SURVIVOR DIES? FIRST? I'VE PUT MY HUSBAND DOWN.
STATISTICALLY, MEN USUALLY DIE BEFORE US WOMEN.
UM, IF HE DIES FIRST, WHAT TMS WILL DO IS THEY WILL INCREASE MY CHECK TO THE RETIREE LIFE ONLY OPTION FOR THE REST OF MY LIFE.
SO I DO NOT GET TO REPLACE MY HUSBAND WITH SOMEONE ELSE.
I JUST GET THE BENEFIT OF A HIGHER PAYMENT FOR THE REST OF MY LIFE.
OKAY? AND THE OTHER ONE IS, CAN I CHANGE MY SURVIVOR? NO, YOU CANNOT CHANGE YOUR SURVIVOR.
ONCE YOU HAVE CHOSEN THAT SURVIVOR AND YOU HAVE RECEIVED YOUR FIRST CHECK, YOU ARE LOCKED IN.
OKAY? THAT FIRST CHECK LOCKS YOU IN.
WORST CASE SCENARIO,
NOW, IT WASN'T FUNNY AT THE TIME WAS I WAS WORKING IN OUR LEGAL DEPARTMENT, AND A GENTLEMAN CALLED IN AND OUR CALL CENTER SENT IT STRAIGHT TO ME.
AND THEY, AND HE WAS A GENTLEMAN WHO HAD RETIRED TWO MONTHS EARLIER, AND I'M PULLING UP HIS ACCOUNT AND I SEE HE RETIRED INTO THE A HUNDRED PERCENT SURVIVOR OPTION.
AND HE GOES, I NEED TO TAKE HER OFF
I WAS LIKE, I'M SORRY, SIR, THAT'S, YOU CAN'T DO THAT.
BECAUSE I HAD ALREADY LOOKED AT HIS FORMS. GUESS WHAT THE RELATIONSHIP WAS BETWEEN HIM AND HER.
IT WAS NOT SPOUSE, IT WAS FIANCE.
THAT'S A LEGAL ISSUE, RIGHT? A FIANCE IS NOT A LEGAL RELATIONSHIP SPOUSE.
NONS SPOUSAL IS THE ONLY TWO LEGAL RELATIONSHIPS.
YOU'RE THEIR SPOUSE OR NONS SPOUSE.
AND I GO, I, I'M, I'M SORRY, SIR.
HE RETIRED BEFORE THEY GOT MARRIED AND HE PUT HER DOWN AS A HUNDRED PERCENT SURVIVOR.
AND HE GOES, BUT, BUT, BUT, BUT, BUT YOU DON'T UNDERSTAND.
AND HE STARTED TELLING, HE TOLD ME THE WHOLE STORY.
HE WALKED IN ON HER WITH SOMEONE ELSE AND HIS BED AND WASN'T GOOD.
AND I GO, BUT, BUT, BUT YOU DON'T UNDERSTAND WHEN YOU'VE CHOSEN THIS PERSON, TM R HAS DONE THE ACTUARIAL
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TABLES TO MAKE SURE YOUR RETIREMENT SYSTEM IS SOUND AND THAT WE'RE NOT GONNA RUN OUTTA MONEY.WE DON'T CHANGE THAT UP AND DOWN, RIGHT? SO HE IS NOT, WAS NOT ABLE TO REMOVE HER.
NOW HAD THEY BEEN MARRIED AND GOTTEN A DIVORCE, WHOLE OTHER CAN OF WORMS. OKAY? THAT'S A DIFFERENT STORY.
THAT'S A DIFFERENT, THAT'S A, THAT'S A WHOLE OTHER TWO HOURS.
TALK ABOUT DIVORCES AND QUADROS, RIGHT? SO THE LESSON HERE IS, IF YOU'RE GOING TO RETIRE AND YOU'RE CHOOSING ONE OF THESE OPTIONS AND YOU'RE MAYBE GETTING MARRIED OR MAYBE GETTING DIVORCED, ASK, ASK THE QUESTIONS.
ASK US, CALL US AND SAY, HEY, WHAT IF THIS HAPPENS? OR WHAT IF THAT HAPPENS? BECAUSE WHAT WE THINK IS COMMON SENSE, MOST OF US, THE LAW DOESN'T ALWAYS FOLLOW COMMON SENSE.
SO YOU DON'T WANNA BE IN THAT SITUATION.
YOU DON'T WANNA BE THAT GUY WHO CALLED AND SAID, TAKE HER OFF BECAUSE HE DIDN'T LIKE MY ANSWER.
IN MY HEAD, I WAS LIKE, SHE'S GONNA LOVE YOU WHEN YOU DIE BECAUSE SHE GETS YOUR MONEY.
SO THINK ABOUT THOSE THINGS ON THE SURVIVOR, BECAUSE YOU CANNOT CHANGE WHO THAT SURVIVOR IS ONCE YOU RETIRE.
OKAY? ANY QUESTIONS ON THE SURVIVOR? DID I ANSWER ANY CHANGES? HE CAN'T MAKE ANY CHANGES.
WELL, WHEN HE DIES AND WE SEND HER THE LETTER THAT WE'RE GONNA START PAYING HER PRIOR TO THAT, NO, NO.
I, I WAS TELLING THAT STORY ONE TIME IN A MEETING AND THE GUY GOES, WELL, WHAT HAPPENS IF YOU DIE IN A BOAT ACCIDENT? AND I GO, THAT IS AWFULLY DETAILED.
AND I SAID, SOMEONE WRITE HIS NAME DOWN BECAUSE IF SOMETHING COMES UP, WE'RE, WE'RE KIND OF WORRIED ABOUT THAT.
UM, YOU KNOW, YOU CANNOT BENEFIT FROM THE DEATH OF SOMEONE, BY THE WAY.
LIKE IF YOU CAUSE THE PERSON'S DEATH AND YOU'RE THE BENEFICIARY, YOU DON'T GET THE MONEY.
AND THAT'S, WE WERE TALKING ABOUT INTERESTING CASES THAT LAUNCHED.
I COULD GO ON FOR A LONG TIME.
THERE ARE PEOPLE MURDER SUICIDES THAT HAPPENED ACROSS THE STATE, MURDER SUICIDES.
UM, ONE OF MY FIRST INTERESTING CASES WAS A LADY HAD, OR HE HAD RETIRED, THEY HAD MOVED TO ANOTHER STATE AND SHE SHOT HIM IN THE BACK WITH A SHOTGUN.
AND I HAD TO MONITOR THE CASE BECAUSE SHE WAS THE SURVIVOR, THE A HUNDRED PERCENT SURVIVOR BENEFICIARY.
AND I'M LIKE, BUT SHE KILLED HIM.
AND THEY WERE LIKE, I KNOW THAT'S WHY YOU GOTTA MONITOR TO SEE WHAT SHE ACTUALLY GETS CHARGED WITH AND IF SHE GETS CONVICTED, IF SHE GETS CONVICTED OF THE CRIME, SHE DOESN'T GET HIS MONEY.
AND I WAS LIKE, OH, THIS IS SO FUN.
THIS IS INTERESTING, RIGHT? BUT THEN I'M TRYING TO MONITOR AND I'M TRYING TO GOOGLE AND OUR, IT HAD SO MANY FIREWALLS THAT BECAUSE THE, THE STORY HAD THE WORD GUN IN IT, IT WAS BLOCKED.
SO I HAVE TO GET, YOU KNOW, SPECIAL PERMISSIONS AND ALL THIS STUFF AND COME, THE END RESULT IS SHE WAS ACTUALLY PROVED DOMESTIC VIOLENCE.
AND SO SHE WAS NOT CHARGED AND SHE GOT HIS MONEY.
I'M LIKE, OH, THERE'S HOPE FOR ME YET.
SO WE HAD RETIRE LIFE ONLY, WE HAVE GUARANTEE OR SURVIVOR OPTIONS.
NOW WE HAVE, OH WAIT, THIS WILL BE CLEAR.
SO WHEN YOU RUN THE NUMBERS, LET'S SAY SORT OF OUR, UH, HIRING ONLY, LET'S SAY, AND THEN YOU SELECT, UH, A HUNDRED PERCENT, YOU'RE SELECTING ONE OR THE OTHER, RIGHT? SO LET'S JUST SAY 50.
OKAY? AND THEN SURVIVOR YOU PERCENT, AND THAT DROPS DOWN TO DROP DOWN FIVE, RIGHT? LET'S SAY YOU GO 75%.
ON THE SURVIVOR OPTIONS, THAT PERCENTAGE THAT YOU PICK IS A PERCENTAGE OF YOUR CHECK THAT CARRIES ON TO THE SURVIVOR.
SO IF, IF MY 50% SURVIVOR IS A THOUSAND DOLLARS I DIE, THEY GET 500 FOR THE REST OF THEIR LIFE.
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OH, IT'S A GREAT QUESTION.IF YOU CAN'T HEAR, HE SAYS, WHAT IF YOU AND THE SURVIVOR BOTH DIE AT THE SAME TIME AND IT'S SHORTLY INTO RETIREMENT? SO THAT RULE THAT I SAID, THAT CAVEAT THAT I SAID, NO MATTER WHAT YOUR MONEY HAS TO GET PAID OUT STILL APPLIES.
SO IN RETIREMENT, LET'S SAY YOU RETIRE, YOU AND YOUR WIFE A HUNDRED PERCENT SURVIVOR, AND TWO MONTHS INTO RETIREMENT, YOU, YOU GUYS GO ON A VACATION AND TRAGICALLY DIE DOESN'T END WELL AT ALL.
NOT A GREAT VACATION, RIGHT? UM, WE HAVEN'T PAID OUT ALL YOUR MONEY, BUT THE SURVIVORS NOW GONE.
SO WE THEN LOOK TO SEE IF YOU DESIGNATED AN ALTERNATE BENEFICIARY.
SO HERE'S MY PLUG, EVERYONE SHOULD HAVE AN ALTERNATE BENEFICIARY IN THEIR ACCOUNT.
THAT ALTERNATE BENEFICIARY WOULD GET THE BALANCE.
BUT STATISTICALLY, YOU GO THROUGH YOUR MONEY IN THREE TO FIVE YEARS OF RETIREMENT, IT'S GONE.
IF YOU ARE GOING, OH, I'M GONNA DO RETIREE LIFE ONLY, AND IF I DIE, THEN THEY CAN JUST GET THE BALANCE.
YOU HAVE TO DIE IN THAT FIRST THREE TO FIVE YEARS, OR THERE IS NO BALANCE, RIGHT? SO THERE IS NO BALANCE.
BUT YEAH, THAT SAME LAW APPLIES.
I THINK YOU JUST ANSWERED, YOU DO RETIRE ONLY SOMETHING HAPPENS.
I, I ASSUME S PAYS THAT MONEY PUT FIRST THAT WAY FIRST.
BECAUSE LEGALLY WE, I MEAN IT'S ALL ONE.
IT'S CALLED THE BENEFITS ACCUMULATION FUND.
BUT BECAUSE THAT LAW TELLS US WE HAVE TO PAY OUT YOUR CONTRIBUTIONS AND INTEREST.
SO ANYTIME A MEMBER DIES WITHIN A FIVE YEAR WINDOW OF RETIREMENT, WE HAVE TO GO DO THE MATH.
THE COMPUTER DOES THE MATH FOR US, RIGHT? IT JUST TELLS US, HEY, YOU OWE 'EM MONEY.
BUT IT'S WITHIN THAT FIVE YEAR WINDOW.
SO, SO JUST KNOW YOUR MONEY IS ALWAYS GONNA GET PAID OUT, RIGHT? SO THE GUARANTEED TERM OPTIONS, THESE WORK A LITTLE BIT DIFFERENTLY.
YOUR FOR LIFE, DON, DON'T, DON'T FORGET THAT YOU, THE RETIREE, YOU'RE FOR LIFE THESE TERMS. AND THERE'S THREE OF 'EM CALLED FIVE, 10 OR 15 YEAR TERMS. WHAT THESE MEAN, IF YOU CHOOSE IT, IS THAT YOU'RE GONNA GET A CHECK FOR LIFE.
BUT IF YOU HAPPEN TO DIE WITHIN THE FIRST FIVE, 10, OR 15 YEARS, WHICHEVER ONE YOU CHOOSE OF RETIREMENT, YOUR CHECK WILL CARRY ON UNTIL THE TERM IS UP.
SO IN LAYMAN'S TERM, IF I CHOOSE 10 YEAR GUARANTEE TERM AND I DIE IN YEAR EIGHT FOR THE NEXT TWO YEARS, MY BENEFICIARY GETS MY CHECK, WHATEVER CHECK I WAS GETTING, WE'LL JUST START GOING OVER TO MY BENEFICIARY BY DIE IN YEAR SIX.
THEY GET IT FOR FOUR YEARS JUST TO FINISH OFF THAT 10 YEAR WINDOW, NOT FOR 10 YEARS.
SO IF I DIE IN YEAR THREE, MY BENEFICIARY GETS A CHECK FOR SEVEN YEARS.
THEY DO NOT GET A CHECK FOR 10 YEARS, RIGHT? THEY'RE JUST FINISHING OFF THAT TERM.
IF I DIE IN YEAR 12, WELL I WAS A RETIREE, SO I'M, I'M COVERED.
BUT BECAUSE 10 YEARS HAS ALREADY EXPIRED, MY BENEFICIARIES GET NOTHING.
MOST MISUNDERSTOOD AGAIN, WORST CALL WAS THE LADY CALLING IN TO SAY, HEY, DO YOU GUYS KNOW THAT WHEN, WHEN SOMEONE PASSES AWAY YOUR SPOUSE OR SOMEONE, WHOEVER'S ON YOUR BANK ACCOUNT, THE BANK SHUTS DOWN YOUR ACCOUNT AND MAKES SURE REOPEN A NEW ACCOUNT? OKAY? SO THIS LADY CALLED IN AND SAID, YOU KNOW, HER HUSBAND HAD PASSED AWAY.
SHE WENT TO THE BANK, THEY MADE HER DO ALL THIS.
SO SHE JUST NEEDED A NEW DIRECT DEPOSIT FORM TO SO THAT WE COULD START PAYING HER TO HER NEW ACCOUNT.
LOOKED AT THE ACCOUNT HER HUSBAND HAD RETIRED INTO THE 15 YEAR TERM.
GUESS WHEN THAT HAD EXPIRED? LITERALLY THE MONTH PRIOR.
HARD, HARD CONVERSATIONS TO HAVE WITH PEOPLE.
'CAUSE SHE WAS IN HER SEVENTIES.
WHAT DO YOU THINK HER EARNING CAPABILITIES ARE? AND TMRS WAS, THE BULK OF HER RETIREMENT WAS THE BULK OF HER INCOME.
AND I HAD TO TELL HER, I'M SO SORRY, BUT YOU KNOW WHAT I DID? I WAS SO HEARTBROKEN BY IT.
I TOLD HER I NEEDED TO RESEARCH IT AND THAT I WOULD CALL HER BACK IN THE MORNING
'CAUSE I HAD TO WRAP MY HEAD AROUND TELLING THIS WOMAN, THERE'S NO FURTHER PAYMENTS.
AND IT WAS LIKE $2,300 AND THIS WAS LIKE 20 YEARS AGO.
THAT'S A LOT OF MONEY TO SAY I'M SORRY.
THEY JUST DIDN'T UNDERSTAND HOW IT WORKED.
OKAY? THE GUARANTEED TERM DOES NOT MEAN YOUR BENEFICIARY WILL EVER GET A PAYMENT.
IT JUST, IF YOU HAPPEN TO DIE DURING THE TIMEFRAME, OKAY? YOU CAN HAVE AS MANY BENEFICIARIES AS YOU WANT AND YOU CAN CHANGE 'EM AS OFTEN AS YOU WANT.
OKAY? SO IF I HAVE MY KIDS AS MY BENEFICIARIES ON THIS ONE AND I'M, THEY MAKE ME MAD, I CAN PUT MY SIBLINGS RIGHT? I PUT MY FRIENDS, I COULD SWITCH IT UP.
I'LL BE LIKE, MAKE ME MAD CHILD, MAKE ME MAD, I WILL TAKE YOU OFF.
RIGHT? SO THOSE ARE THE OPTION.
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WHAT IS THAT GOOD IDEA.OH, I'M GONNA TELL YOU IN JUST A SECOND.
I PROMISE YOU I KEEP PUTTING OFF THESE QUESTIONS, BUT I PROMISE I HAVE ANSWERS.
SO YOU'VE CHOSEN, WHEN YOU'RE GONNA RETIRE, YOU HAVE CHOSEN WHAT OPTION.
YOUR THIRD AND FINAL MAJOR DECISION IS, ARE YOU TAKING SOME MONEY OUT UPFRONT? SO IN TMRS, WE ALLOW YOU TO TAKE SOME OF YOUR MONEY OUT UPFRONT IN A ONE-TIME PAYMENT.
WE'RE YOU'RE TAKING SOME MONEY OFF THE TOP.
YOU TAKE SOME MONEY OUT OF TMRS, WE HAVE LESS TO ANNUITIZE.
THAT'S ALL IT COMES DOWN TO IS WE'RE GONNA, OKAY, IF YOU WANNA TAKE SOME MONEY OUT, TAKE SOME OUT.
SO YOUR MONTHLY PAYMENT IS GOING TO GO DOWN, RIGHT? THERE'S THREE DIFFERENT OPTIONS.
ALL WE'RE DOING IS TAKING YOUR HIGHEST POSSIBLE PAYMENT, NOT THE FACT THAT YOU HAVE TO TAKE RETIREE LIFE ONLY.
JUST THAT'S THE NUMBER WE USE.
WE TAKE THAT RETIREE LIFE ONLY OPTION, MULTIPLY IT BY 1224 AND 36.
NOW THE FUN THING WITH THE LUMP SUM PAYMENT IS THE IRS DOES NOT VIEW IT AS YOUR ANNUITY, WHICH IS TAXED ONE WAY, IT VIEWS IT AS A REFUND.
SO NOW IF YOU'RE REFUNDING MONEY FROM A RETIREMENT ACCOUNT, YOU NOW HAVE A CHOICE TO EITHER CASH IT TO YOU DIRECTLY OR ROLL IT TO ANOTHER QUALIFIED PLAN.
OR WE LET YOU DO A COMBINATION OF THE TWO.
YOU CAN SAY, HEY, I WANNA PUT 50% TO MY 4 57 PLAN AND THE OTHER 50% COMES TO ME.
OKAY? WHAT YOU DO WITH THE MONEY DETERMINES THE TAXES.
ANY MONEY PAID DIRECTLY TO YOU.
OKAY? THAT'S AN IRS 20% RIGHT OFF THE TOP.
WHETHER THAT IS ENOUGH OR TOO MUCH TO FULFILL YOUR TAX LIABILITIES TO THE IRS IS BETWEEN YOU AND THEM.
COME APRIL 15TH, OKAY? WE ARE REQUIRED TO WITHHOLD 20%.
NOW ALONG WITH THAT 20% COULD BE AN EARLY WITHDRAWAL PENALTY.
THAT'S THE FUN STUFF, RIGHT? EVERYONE'S LIKE, WELL, I'M ELIGIBLE TO RETIRE, BUT YOU'RE GONNA PENALIZE ME.
I'M JUST THE MESSENGER, RIGHT? WE ARE NOT PENALIZING YOU.
BUT BECAUSE TIMUS IS THAT 20 AN OUNCE SYSTEM, YOU COULD BE 49 YEARS OLD RETIRING, RIGHT? THE LUMP SUM PAYMENT, IF YOU CHOOSE A LUMP SUM PAYMENT AND YOU DO NOT MEET THE AGE EXCEPTION, THE IRS IS GONNA PENALIZE YOU 10%.
YOU HAVE NOT PAID ANY TAXES ON THE MONEY THAT'S IN TMRS. THE 10% IS AN ACTUAL TRUE PENALTY.
THE PENALTY IS APPLICABLE WHEN IF YOU TERMINATE EMPLOYMENT IN THE YEAR YOU TURN 55 OR OLDER, THAT PENALTY IS WAIVED.
AND WE'VE HEARD ABOUT THE RULE, WE SEE IT ON TAX STATEMENTS AND TAX NOTIFICATIONS 59 AND A HALF.
BUT THE EXCEPTION TO THE RULE BY IRS SAYS, IF YOU TERMINATE EMPLOYMENT IN THE YEAR, IN THE CALENDAR YEAR IN WHICH YOU WILL TURN 55 OR OLDER, PENALTY IS WAIVED FOR IF WE HAVE ANY FIRST RESPONDERS IN THE ROOM, IT'S AGE 50.
SO POLICE FIRE AN EMS, THEIR EXCEPTION AGE IS 50.
SO IF I AM TURNING 55 IN DECEMBER AND I WANT TO TAKE THIS LUMP SUM OUT AND I QUIT MY JOB IN JANUARY AND I'M RETIRING, WELL, I'M IN THE CALENDAR YEAR, I'M GONNA TURN 55.
REMEMBER, THE PENALTY IS ONLY APPLICABLE TO THE MONEY YOU HAVE PAID DIRECTLY TO YOU.
IF YOU CHECK MARK THE BOX THAT SAYS ROLL IT OVER TO ANOTHER QUALIFIED PLAN, A HUNDRED PERCENT OF IT, AND YOU'RE ROLLING IT TO YOUR 4 57 PLAN, NOT A TAXABLE EVENT YET.
SO WE'RE NOT GONNA PENALIZE YOU.
IRS ISN'T GOING TO PENALIZE YOU, OKAY? NO TAXES ARE COMING OUT, OKAY.
BUT ANY PORTION OF THE MONEY PAID DIRECTLY TO YOU, 20%.
AND IT IS GROSS INCOME COMING TO YOU.
SO LET'S SAY YOU CHOOSE 24 MONTH AND THAT HAPPENS TO BE A HUNDRED THOUSAND DOLLARS.
AND YOU SAY, OOH, I WANT THIS MONEY.
YOU'RE GONNA GET 80,000, RIGHT? SO WE HAVE TO WITHHOLD THE FIRST 20%.
WHEN YOU FILE YOUR TAXES THE FOLLOWING YEAR, YOUR 10 99 WILL BE CODED TO TELL THE IRS YOU OWE THE 10% PENALTY.
SO YOU START THE YEAR OFF 10% OF THE WHOLE, OKAY? BUT ANYTHING YOU ROLL OVER, IT'S NOT SUBJECT TO A PENALTY.
OKAY? ANY QUESTIONS ON THAT? WHO WANTS THAT? I, I, I COUNSELED WITH THE GUY WHO HAD A $300,000 LUMP SUM PAYMENT AND WE WERE TALKING, I WAS HELPING HIM FILL OUT THE PAPERWORK AND I, I'M JUST ABOUT TO CHECK THE ROLLOVER BOX 'CAUSE WHO'S NOT GONNA ROLL OVER 300,000.
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NO, THAT'S COMING TO ME.I WAS LIKE, OH, DIRECTLY
AND I GO, OKAY, WELL WE'RE GOING WITHHOLD 20%.
AND HE WASN'T SUBJECT TO THE PENALTY.
BUT I'M LIKE, YOU REALIZE THIS GOES AGAINST YOUR GROSS INCOME FOR THE YEAR.
WHAT TAX BRACKET DO YOU THINK HE'S IN? IF HE WORKED, HE WAS RETIRING IN LIKE OCTOBER.
SO HE HAD WORKING INCOME THROUGH THE ENTIRE YEAR AND THEN WE'RE GONNA SEND HIM A CHECK FOR $335,000.
HE IS NOT IN THE 20% TAX BRACKET.
I GUARANTEE YOU HE WAS CUSSING US THAT FOLLOWING APRIL
AND I TOLD HIM, I'M LIKE, OH, ARE YOU SURE YOU'RE GONNA GET THAT 10 99? THAT'S, IT'S AS IF THE CITY JUST PAID YOU THAT MUCH MONEY AND ONE FELL SWOOP 20 PERCENT'S NOT CUTTING IT.
SO ANY QUESTIONS ON THE LUMP SUM PAYMENT? PRETTY GOOD, RIGHT? SO, SO MAKING YOUR DECISIONS, UM, PUTTING IT ALL TOGETHER.
I'M GONNA SAY THAT REALLY LOUD SAMPLE, NOT YOUR ESTIMATE, RIGHT? IS EVERYONE CLEAR? IT'S NOT YOUR ESTIMATE, OKAY? BUT IT IS A REAL ESTIMATE.
SO IF YOU'RE LOOKING AT THIS, PUTTING EVERYTHING THAT WE JUST TALKED ABOUT TOGETHER, THOSE ARE YOUR SEVEN PAYMENT OPTIONS ON THE LEFT WITHOUT A LUMP SUM, YOU'RE GONNA GET THE HIGHER PAYMENTS, RIGHT? YOU, YOU DON'T HAVE TO REDUCE THE MONEY BECAUSE YOU DIDN'T TAKE ANY MONEY OUT FRONT.
THERE ARE YOUR THREE DIFFERENT LUMP SUM PAYMENTS.
YOU COULD DO THE MATH 36, 22 TIMES, 12 TIMES 24 TIMES 36.
UM, AND THEN IT REDUCES YOUR MONTHLY BENEFIT.
SO IF THIS WAS MY ESTIMATE AND I'M GONNA CHOOSE 50% SURVIVOR AND I'M GONNA TAKE THAT MIDDLE LUMP SUM, WHAT IS MY MONTHLY PAYMENT? ANYONE SHOUT IT OUT.
THAT'S WHERE, HOW YOU GET THAT RIGHT? NOW LET'S TAKE IT A STEP FURTHER.
IF I, AM I UNDER THAT 50% SURVIVOR GETTING 28, 24, I DIE.
HOW MUCH DOES MY BENEFICIARY GET? MY SURVIVOR GET 14, 12.
SEE I PICKED A NUMBER THAT WAS EASY TO DIVIDE.
MY SURVIVOR CONTINUES RECEIVING 14, 12 A MONTH FOR THE REST OF THEIR LIFE.
OKAY? NOW WHAT HAPPENS IF THEY DIED? FIRST I PUT MY HUSBAND DOWN, HE DIES FIRST.
WHAT DOES TEAMWORK DO WITH MY CHECK? 31 17.
EVERYONE'S LIKE, OH THEY GO BACK TO THAT 36, 22.
NO, IT STAYS IN THE SAME COLUMN BECAUSE I TOOK 86,000 OUT UP FRONT.
OKAY? SO I'M GONNA TAKE THIS ESTIMATE ONE STEP FURTHER AND SHOW YOU A DIFFERENT ESTIMATE.
BUT THIS ONE INCLUDES THE BACKGROUND NUMBERS THAT YOU DON'T SEE WHEN YOU'RE RUNNING AN ESTIMATE.
OKAY? THIS IS A REAL ESTIMATE, I PROMISE YOU IT'S A REAL ESTIMATE.
I WAS COUNSELING WITH THIS PERSON AND I GO, THIS IS A GREAT EXAMPLE OF HOW THIS WORKS.
YOUR BENEFIT IS BASED ON HOW MANY PENNIES ARE IN YOUR ACCOUNT AND YOUR AGE.
THIS IS WHERE WE GET ALL THOSE PENNIES.
SO IF YOU LOOK AT THIS CURRENT BALANCE, ANYTIME YOU RUN AN ESTIMATE, THIS IS HOW IT WORKS.
WE'RE TAKING WHAT WE KNOW, WHICH IS YOUR CURRENT BALANCE.
WHAT WE THINK IS GONNA HAPPEN BETWEEN THE DAY YOU RUN THE ESTIMATE AND YOUR RETIREMENT DATE ADDED TOGETHER AND ANNUITIZE THEM DOLLARS.
OKAY? SO IN THIS CASE, WHEN I RAN THIS ESTIMATE, THIS PERSON HAD 733,000 IN RESERVES.
RESERVES IS THE WHOLE KIT AND CABOODLE ALL THE MONEY.
YOU SEE THAT FIRST LINE IS EMPLOYEE CONTRIBUTIONS.
THAT'S WHAT CAME OUTTA YOUR PAYCHECKS INTEREST.
THAT'S WHAT THEY'VE EARNED IN INTEREST.
CITIES MATCH IT SEEMS LIKE, OH THAT'S A LOT.
REMEMBER THE CITY MATCHES CONTRIBUTIONS AND INTEREST ON A TWO TO ONE BASIS.
OKAY? SO THEY HAVE TO DOUBLE THAT 131 AND 98.
NOW THIS PERSON EARNED THAT UPDATED SERVICE CREDIT.
OKAY? SO NOW THIS, YOU ADD IT ALL UP, THEY HAVE 733,000.
NOW THIS PERSON'S SAYING, HEY, I WANNA RETIRE.
BUT IT'S ONLY TWO MONTHS AWAY.
SO WE HAVE TO LOOK AT HISTORICAL DATA OF THEIR DEPOSITS.
WE LOOK AT THE LAST 12 DEPOSITS AND WE SAY, OH, OKAY, BASED ON THE LAST 12 DEPOSITS, YOUR NEXT TWO DEPOSITS WILL PROBABLY EQUAL 1300, 13 36.
ONCE YOU KNOW THAT, YOU KNOW HOW MUCH THE INTEREST IS, IS 5%, YOU KNOW THE CITY'S MATCH.
UM, WHEN YOU RETIRE YOU GET PRORATED INTEREST.
SO IF YOU RETIRE IN SEPTEMBER, YOU GET NINE MONTHS WORTH OF PRORATED INTEREST, UPDATED SERVICE CREDITS.
IF YOU HAVE THAT BONUS MONEY, IT'S EARNING 5% INTEREST.
AND SO IN TWO MONTHS THIS PERSON'S ACCOUNT GROWS BY $10,000.
[01:05:01]
AND THAT'S THE NUMBER WE USE TO ANNUITIZE.SO WHEN YOU'RE RUNNING AN ESTIMATE, THE CLOSER YOU ARE TO THAT RETIREMENT DATE, THE LESS THAT PROJECTED EARNINGS WE HAVE TO GUESS, RIGHT? AND ANYTIME YOU DO A GUESS COULD BE OFF, RIGHT? SO GO AHEAD.
IS THERE 5%
THE LEGALLY IT CAN BE NO LESS THAN 5% INTEREST.
BUT THERE'S NO LAW THAT SAYS IT CAN'T BE MORE.
WE JUST, WE'RE JUST NOT THERE YET.
SO OUR ACCOUNTS US EMPLOYEES, WE GET 5% INTEREST.
THE CITY'S ACCOUNT TAKES THE VARIABLE RATE.
SO WE HAVE OUR MEMBER ACCOUNTS AND THEN YOU HAVE THE CITY'S ACCOUNT.
THE MONEY THAT THE CITY SENDS INTO US EACH MONTH, THAT'S ALSO INVESTED AND THEY EARN INTEREST AND THEIR RATE IS BASED ON ALL OF THAT.
THEIR ASSUMED RATE OF RETURN IS 6.75.
BUT IF WE ONLY EARN 2%, WE ALL STILL GET 5%.
BUT THE CITY'S ACCOUNT ONLY GETS TWO.
SO THAT'S KIND OF A LOSS FOR THE CITY.
SO IT COMES AND GOES, RIGHT? IT'S GONNA EBB AND FLOW THROUGHOUT YOUR ENTIRE CAREER WHERE IT LOOKS LIKE, OH I COULD'VE GOT A LOT MORE INTEREST.
BECAUSE IF THE CITY'S RATES CONTINUE TO CLIMB AND CLIMB AND CLIMB IN ORDER TO PROVIDE THIS BENEFIT, GUESS WHAT? THEY TAKE AWAY BENEFITS TO YOU 'CAUSE IT ENDS UP COSTING SOMETHING.
SO I'M CONFUSED ON YOU, YOUR SPOUSE'S AND WHEN YOU DIE, SHE WILL CONTINUE TO GET 34 6.
A HUNDRED PERCENT OF THAT 34 64, YES.
BUT IF I ONLY LEAVE HER 50%, I GET 36.
AND IF I DIE, SHE DOESN'T GIVE THAT 36.
'CAUSE YOU'VE CHOSEN THE 50% LINE.
SO YOU GET MORE BECAUSE SHE'S GETTING LESS, RIGHT? YOU'RE NOT GETTING 34, YOU'RE GETTING 36 BECAUSE WHEN YOU DIE SHE GETS ONLY HALF OF THAT.
THE MATH, I DON'T EVEN LOOK AT THE 75% 'CAUSE I DON'T WANNA DO THE MATH, YOU KNOW? BUT ALL YOU DO IS DO THE MATH.
IF YOU WANTED TO KNOW WHAT YOU, YOU CAN DO THE MATH AND SAY, OH WELL IF I DO 35, 48 TIMES 75%, THAT'S WHAT WOULD CARRY ON TO YOUR BENEFICIARY.
NOW LET ME MAKE ANOTHER POINT.
I'M GLAD THEY GAVE ME TWO HOURS.
IT'S 100% OF WHAT YOU WERE GETTING AT THE TIME OF YOUR DEATH.
WHICH MEANS IF YOU HAD BEEN RETIRED FOR 15 YEARS AND HAVE RECEIVED COST OF LIVING THROUGHOUT THAT WHOLE TIME, IT'S WHATEVER, A HUNDRED PERCENT OF WHATEVER YOU ARE GETTING AT TIME OF DEATH.
OKAY? SO SOMETHING TO JUST THINK ABOUT DOWN THE ROAD, RIGHT? OKAY.
SO ANY QUESTIONS ON THE ESTIMATE AND HOW TO READ THAT? YES MA'AM.
SO IF YOU CONTINUE TO WORK PAST YOUR RETIREMENT ELIGIBILITY AGENT, HOW DOES THAT IMPACT OBJECTIVE
JUST LIKE IF YOU WERE GOING TO YOUR BANK EVERY MONTH AND STILL PUTTING DEPOSITS, EVEN THOUGH YOU'RE ELIGIBLE, IT JUST CONTINUES TO GROW AND GROW AND GROW.
AND I'LL TELL YOU A STORY THAT I TOLD THIS MORNING.
HOW MANY YEARS DO YOU GUYS THINK IS THE LONGEST PERSON THAT WE HAVE STILL IN TEAM IS CONTRIBUTING? THAT HAS WORKED THE LONGEST.
IF ANYONE ALREADY KNOWS THE ANSWER.
'CAUSE THEY HEARD ME LAST SUMMER.
YOU DON'T HAVE TO SAY IT, BUT WE HAVE TWO GENTLEMEN HERE THAT HAVE 30 YEARS.
OKAY? ANY GUESS AS TO WE HAVE, WE HAVE A MEMBER IN TS WHO HAS MORE YEARS THAN THAT.
AND I MET HER LAST SUMMER, LAST JULY, SHE CAME UP TO ME AT A, AN EVENT.
I WAS DOING MEETINGS AND I HAD A TABLE.
I WAS SITTING UP AND SHE COME UP TO ME AND SHE SAID, WELL PEOPLE TELL ME I WOULD MAKE MORE MONEY IF I RETIRED.
WELL YOU HAVE TO BE HERE A LONG TIME TO GET TO THAT POINT.
AND I GO, WELL HOW MANY YEARS HAVE YOU BEEN HERE? AND I'M SITTING, RIGHT? AND SHE'S STANDING AND LITTLE LADY.
I GO, I'M SORRY, EXCUSE ME, EXCUSE ME MA'AM, WHAT DID YOU SAY? AND I STOOD UP
[01:10:01]
AND I GO, DID DID YOU SAY 33 YEARS? AND SHE GOES, NO, 53 MARY, MEEK AND MILD.I WENT, DID YOU SAY 40? DID YOU SAY 53 YEARS YOU'VE BEEN WITH THE CITY? AND SHE SAID, AND SHE WAS NOT A DIRECTOR, SHE WAS NOT IN MANAGEMENT, SHE WAS AN ACCOUNTANT WITH THE CITY AND HAD BEEN SINCE SHE HAD STARTED THE JOB AT 18.
AND I WENT, I HAVE TO LOOK UP YOUR ACCOUNT.
WHAT IS YOUR NAME? AND I'M LOOKING UP HER ACCOUNT.
SURE ENOUGH, SHE GOT HIRED IN JULY OF 1971 AND IS STILL WORKING TODAY 53 YEARS.
OKAY, WHEN I RUN AN ESTIMATE, I KNOW EXACTLY HOW MUCH MONEY YOU MADE LAST MONTH.
'CAUSE IT TELLS ME THE AVERAGE MONTHLY SALARY SO I CAN SEE HOW MUCH MONEY SHE'S MAKING.
AND I LOOKED AT THAT 50% SURVIVOR AND IT DOUBLED.
IT DOUBLES WHAT SHE'S CURRENTLY MAKING.
IF YOU RETIRED, YOU CAN MAKE MORE MONEY.
IN FACT YOU COULD DOUBLE YOUR INCOME.
AND SHE GOES, OH, I SAID, WHAT'S, WHAT'S YOUR HOLDUP? I WANT YOUR HOLDUP.
AND SHE'S LIKE, OH, I'M THE BREADWINNER.
SO I JUST WANNA MAKE SURE MY HUSBAND'S ALWAYS TAKEN CARE OF.
AND I GO, YOU REALIZE YOU COULD DOUBLE YOUR INCOME AND EVEN IF YOU DIED, HE'S STILL GONNA BE MAKING THE SAME AMOUNT OF MONEY YOU'RE MAKING RIGHT NOW AT 50%.
'CAUSE IT WOULD REDUCE IT BY 50%.
I WAS LIKE, OKAY, WHAT'S UP NOVEMBER? INTEREST GOES IN DECEMBER.
YEAH, DECEMBER, RIGHT? MM-HMM
CAN YOU SEE THE UPDATED SERVICE? YOU CANNOT.
THE, SO THE UPDATED SERVICE CREDIT IS ALWAYS IN THE BACKGROUND NUMBER, JUST LIKE THE CITY'S MATCHES.
THAT FOUR 60, ALL THAT MONEY IS ALL THERE, BUT YOU CAN'T SEE IT.
BUT IT IS REFLECTED IN THOSE MONTHLY AMOUNTS.
SO WHEN I WAS SAYING EARLIER, IT WOULD BEHOOVE YOU TO GO TO JANUARY TO RUN THAT ESTIMATE.
IT'S ALREADY THAT UPDATED SERVICE CREDIT IS ALREADY PREDICTED.
SO IN ORDER TO TELL, AGAIN, IS JUST RUN AN ESTIMATE FOR DECEMBER, TURN AROUND AND RUN IT FOR JANUARY.
THE JANUARY IS ALWAYS GONNA BE SLIGHTLY HIGHER 'CAUSE IT'S AN EXTRA MONTH.
BUT IF YOU DID GET THAT EXTRA MONEY, IT'S GONNA SKYROCKET YOUR NUMBERS.
OKAY? JUST IT, IT'S A GOOD PLANNING TOOL.
BUT THE ESTIMATES DO NOT ASSUME PAY INCREASES.
SO IF YOU PUSH IT OUT TW 20 YEARS, IT'S LOOKING AT YOUR LAST 12 DEPOSITS AND GOING, OH, THIS IS WHAT SHE MAKES AND THIS IS WHAT SHE'S GONNA CONTINUE TO MAKE FOR THE NEXT 20 YEARS.
AND YOU MENTIONED IT, I, SO 5 45, UH, IT'S NOT BECAUSE AGAIN, MCKINNEY IS A MC CADILLAC PLAN, RIGHT? MCKINNEY'S CADILLAC, WHICH MEANS YOU HAVE COLAS, WHICH IS IN A COUPLE OF SLIDES.
DID YOU HAVE A QUESTION? AH, SHE JUST, JUST SO I ALWAYS GET ASKED, WHAT WOULD I CHOOSE? BECAUSE I'VE BEEN WITH TS FOR 23 YEARS, I'M ELIGIBLE TO RETIRE.
AND YOU KNOW HOW, LIKE YOU JUST THINK THAT, OH, I, I MUST HAVE THE INSIDE INFORMATION AND WHAT IS ACTUALLY REALLY THE BEST.
NO, YOU CHOOSE THE OPTION THAT WORKS THE BEST FOR YOU.
BUT IF I WERE TO RETIRE RIGHT NOW, I WOULD LOOK AT ONE OF THE GUARANTEED TERM OPTIONS.
THAT OPTION THAT THIS, THAT YOU ASKED.
WHO WOULD TAKE THAT? AND WHY WOULD THEY TAKE THAT LEAST CHOSEN OPTION? RIGHT? MOST CON, MOST MISUNDERSTOOD OPTION.
WHY WOULD I TAKE IT? WELL, I WOULD TAKE IT BECAUSE OF THOSE KNUCKLEHEADS.
THAT'S WHAT MY DAD USED TO CALL US KNUCKLEHEADS.
I CALL MY KIDS KNUCKLEHEADS, RIGHT? I'M NOT MARRIED, I'M SINGLE.
NO, NO PROSPECTS, NO ONE IN MIND.
SO I AM STILL RESPONSIBLE FOR RAISING MY KIDS.
NOW MY DAUGHTER'S RAISED, I DID A GOOD JOB.
SHE LEFT, RIGHT? SHE, SHE'S ALMOST, I HATE TO SAY IT, SHE'S SHE'S, SHE SENT ME A MESSAGE THE OTHER DAY AND SAID, IN FOUR MONTHS I TURNED 29.
DO YOU FEEL OLD? AND I GO, SHUT UP.
SO SHE HAS ALREADY WENT TO COLLEGE, GRADUATED WORKING HER JOB.
SHE WENT TO OKLAHOMA STATE AND HER JOB TOOK HER TO NORMAN.
SO SHE'S AN, UM, AN OKLAHOMA STATE COWBOY IN SOONER TERRITORY, RIGHT? SHE'S WORKING THERE, SHE'S LIVING, SHE'S LOVING LIFE.
AND THEN HER BROTHER, THE ONE IN THE SOLID GREEN SHIRT, HE'S 20, HE'S A SOPHOMORE AT OU.
HE DECIDED TO GO TO OKLAHOMA AND BE FOR WHATEVER REASON, 'CAUSE UT DIDN'T ACCEPT HIM.
SO HE'S AT OU AND HE'S A SOPHOMORE.
[01:15:01]
STILL SUPPORTING HIM, RIGHT? I'M STILL RESPONSIBLE FOR HIM FINANCIALLY.THE KID IN THE CAMEL GRADUATES IN LIKE 76 DAYS.
I'M DOWN TO THE DAYS HE GRADUATES HIGH SCHOOL.
HE DOESN'T EVEN TURN 18 TILL THE SUMMER.
OKAY? SO THOSE TWO BOYS ARE STILL ON MY DIME, BUT THEY'RE NOT GONNA BE ON MY DIME PERMANENTLY.
I, THAT'S, AND THAT'S MY OWN PHILOSOPHY, RIGHT? SO IF I WERE TO RETIRE RIGHT NOW, I NEED TO MAKE SURE THEY'RE GOOD.
SO THAT 10 YEAR GUARANTEE OR THAT FIVE YEAR GUARANTEE WOULD SAY, HEY, IF I DIED IN THE FIRST FIVE OR 10 YEARS OF RETIREMENT, THEY WOULD HAVE INCOME COMING TO THEM.
BUT I DON'T WANT THAT INCOME TO BE FOR LIFE BECAUSE ONE ON THE SURVIVOR OPTIONS, YOU HAVE TO PICK ONE PERSON.
IT DEPENDS ON THE WEEK, WHICH ONE IS MY FAVORITE, RIGHT? THOSE OF YOU WHO HAVE KIDS, YOU KNOW WHAT I'M TALKING ABOUT.
SO I CAN'T REALLY, I, AND I DON'T WANNA LEAVE A LIFETIME PAYMENT FOR MY KIDS, BUT THAT'S MY OWN PHILOSOPHY.
I'VE MET LOTS OF PEOPLE ACROSS THE STATE WHO DO, WHO WANT TO LEAVE THEIR CHILD A LIFETIME PAYMENT.
BUT IF I KEEP WORKING AND I'M LIVING AND THEY'RE GROWN AND THEY'RE ON THEIR OWN AND THEY'RE FINANCIALLY SECURE, I'M GOING RETIRE LIFE ONLY, RIGHT? I'M TAKING THE MOST.
'CAUSE EVEN IF I MEET SOMEONE AND MARRY HIM, HE'S NOT GETTING MY MONEY.
I EARNED ALL THIS PRE-MARRIAGE.
IT IS NOT COMMUNITY PROPERTY, RIGHT? SO THAT'S SITUATIONS THAT I'VE SEEN PEOPLE TAKING THE GUARANTEED TERM OPTIONS IS THEY NEED TO SUPPORT SOMEONE, BUT IT'S NOT FOR LIFETIME.
OKAY? SO APPLYING FOR RETIREMENT, THIS IS I THINK ONE OF THE SIMPLER PROCESSES THAT WE HAVE AND WE'RE TRYING TO MAKE IT EVEN SIMPLER.
UM, EVENTUALLY, HOPEFULLY BY THE END OF THIS YEAR IT WILL BE ONLINE PROCESS.
UM, IT IS AN APPLICATION, IT'S A PAPER PROCESS RIGHT NOW.
YOU DOWNLOAD THE PAPERWORK, IT IS FOUR PAGES OF PAPERWORK.
FOUR PAGES OF INFORMATION THAT'S GONNA START THIS LIFETIME PAYMENT, OKAY? YOU'RE CHOOSING YOUR OPTION, YOU'RE CHOOSING WHEN YOU'RE RETIRING.
AND AGAIN, YOU DO NOT FILL THIS PAPERWORK OUT IN 30 TO 45 DAYS IN ADVANCE.
OKAY? YOU'RE SELECTING YOUR RETIREMENT DATE, YOU'RE SELECTING YOUR OPTION.
HEY, AM I DOING A RETIREE LIFE ONLY SURVIVOR OPTION? GUARANTEED TERM.
AND THEN IF YOU'RE TAKING THAT LUMP SUM PAYMENT, YOU'RE TELLING US WHICH ONE AND HOW YOU WANNA PAY TO YOU LUMP SUM PAYMENT.
YOU ONLY HAVE RETIREMENT AT RETIREMENT.
THAT IS THE ONLY OPPORTUNITY YOU HAVE TO TAKE THAT LUMP SUM.
SO TAKE IT OR DON'T, BUT YOU DON'T GET TO CHANGE YOUR MIND, RIGHT? THOSE ARE YOUR IMPORTANT CHOICE, IMPORTANT CHOICES.
YOU
IT'S ONLY SET IN STONE WHEN YOU GET YOUR FIRST CHECK.
SO YOU, LET'S SAY TWO MONTHS IN, IN ADVANCE, YOU DECIDE, HEY, I'M GONNA RETIRE IN JULY.
SO IN MAY YOU PUT IN YOUR APPLICATION AND SOMETHING TRAFFIC CHECK HAPPENS IN JUNE, YOU CAN WITHDRAW YOUR APPLICATION OR CHANGE ANY OF THE CHOICES, OKAY? BUT ONCE YOU GET THAT FIRST CHECK AT THE END OF JULY, YOU'RE LOCKED IN AND THERE'S NO CHANGING.
IF SOMEONE HAS A WILL,
SO IF, IF YOU DESIGNATE YOUR ESTATE AS A BENEFICIARY, LIKE RIGHT NOW, THEN NOW IT'S IF YOU, IF YOU DIE, WE'RE GONNA PAY YOUR ESTATE THE MONEY.
BUT WHEN YOU ARE RETIRING, WHO YOU CHOOSE AS YOUR BENEFICIARY IS DICTATED BY THE OPTION THAT YOU ARE CHOOSING.
SO IF YOU'RE CHOOSING A SURVIVOR OPTION, YOU HAVE TO PUT A REAL PERSON.
YOU CAN'T PUT YOUR ESTATE AS A SURVIVOR.
OKAY? SO YOU MADE ALL THOSE IMPORTANT CHOICES AND THERE'S ADDITIONAL INFORMATION THAT AUXILIARY PAPERWORK THAT'S ALWAYS GONNA BE REQUIRED.
YOUR MONTHLY BENEFIT IS REQUIRED TO BE DIRECT DEPOSITED.
SO GIVE US YOUR BANK ACCOUNT INFORMATION, RIGHT? UM, TAX WITHHOLDING YOUR MONTHLY CHECK IS SUBJECT TO FEDERAL INCOME TAX WITHHOLDING ONLY, FEDERAL INCOME TAX, NO SOCIAL SECURITY, NO MEDICARE.
SO THE NUMBERS YOU SEE ON YOUR ESTIMATE ARE GROSS, MEANING WE STILL HAVE TO WITHHOLD FEDERAL INCOME TAXES, WHICH IS ANYWHERE FROM SEVEN TO 15%, OKAY? DEPENDING ON YOUR OWN TAX SITUATION.
UM, AND THEN THE LAST PIECE OF DOCUMENTATION THAT WE NEED TO START, THE BENEFIT IS YOUR PROOF OF BIRTH, WHICH IS A GOVERNMENT DOCUMENT THAT HAS YOUR DATE OF BIRTH ON IT.
YOU CAN DO A BIRTH CERTIFICATE, BUT FIRST FEMALES, IF WE'VE EVER HAD A NAME CHANGE, THAT'S JUST GONNA MEAN WE HAVE TO DO ANOTHER DOCUMENTA, ANOTHER PIECE OF PAPER.
OKAY? 'CAUSE MY BIRTH CERTIFICATE SAYS MY MAIDEN NAME, BUT I DON'T GO BY MY MAIDEN
[01:20:01]
NAME, RIGHT? I NEVER WENT BACK TO IT.I SHOULD HAVE, BUT I NEVER WENT BACK TO IT.
OKAY? THAT'S ALL THE INFORMATION THAT IS NECESSARY TO START THIS BENEFIT.
OKAY? NOW, UH, I DID SAY IT'S TAXABLE, JUST LIKE HERE AT THE CITY.
IF YOUR PAYCHECK, THEY'RE TAKING TOO MUCH OUT OR NOT ENOUGH, YOU CAN CHANGE IT, RIGHT? YOU CAN GO TO YOUR HR, YOU CAN LOG INTO YOUR INTRANET AND CHANGE YOUR TAX WITHHOLDING.
SAME THING IN TMRS. IF YOU GET THAT FIRST CHECK AND THEY'RE GO, OH, TMS HASN'T TAKEN ENOUGH OUT IN TAXES, CHANGE IT, LOG ON AND CHANGE IT.
NOT A LOT OF STUFF THAT YOU CAN CHANGE IN RETIREMENT, BUT YOU'LL CHANGE THAT.
CHANGE YOUR BANK ACCOUNT, RIGHT? UM, NOW HERE'S THE COLA.
HE, HE ASKED, IS IT GONNA BE THE SAME IN 2045? YOUR CITY CADILLAC PLAN, THEY HAVE COLAS IN PLACE FOR RETIREES.
SO, WHICH IT MEANS YOUR BENEFIT'S GOING TO GROW BASED ON INFLATION THROUGHOUT YOUR RETIREMENT YEARS.
IT IS AT 70%, THAT IS THE HIGHEST.
AGAIN, MCKINNEY CAN'T GO ANY HIGHER AND IT'S 70% OF THE CHANGE IN INFLATION MEASURED BY THE CPI.
SO IF INFLATION IS 3%, YOU GET 70% OF 3%, 2.1% INCREASE.
YOU HAVE TO BE RETIRED FROM ONE FULL YEAR BEFORE YOU'RE ELIGIBLE FOR AN INCREASE.
AND INCREASES ARE APPLIED ON THE JANUARY CHECK.
SO THE JANUARY AFTER YOUR 12TH CHECK, YOU CAN EXPECT TO SEE AN INCREASE BASED ON 70% OF THE RATE OF INFLATION.
OKAY? THAT IT'S, IF YOU CAN UNDERSTAND THE IMPACT A COLA CAN HAVE ON A RETIREE, THE CITY OF GARLAND, NOT THAT FAR AWAY, RIGHT? THEY DID AWAY WITH THEIR COLAS IN 99.
ALL OF THEIR RETIREES HAVE NOT RECEIVED AN INCREASE UNTIL THIS LAST YEAR WHEN THEY FINALLY READOPTED IT.
SO ANYONE WHO HAD BEEN RETIRED PRIOR TO 99, THEIR CHECK HAS NOT CHANGED.
AND WE ALL KNOW INFLATION IS REAL, RIGHT? WE ALL KNOW IT.
I GO TO THE GROCERY STORE AND I USED TO BE ABLE TO EYEBALL WHAT WAS IN MY GROCERY CART TO HOW MUCH IT IS.
THOSE OF YOU WHO SHOP EVERY, EVERY SUNDAY, LET'S GO TO THE GROCERY STORE, YOU COULD EYEBALL.
AND NOW IT'S LIKE, I GOTTA ADD ANOTHER 75, A HUNDRED DOLLARS INFLATION IS REAL.
SO THAT COLA THAT'S WHAT I SAID, THEY READOPTED IT.
SO GARLAND READOPTED IT, BUT AT A, AT A 30%.
SOMEONE ELSE WE WERE TALKING ABOUT TOO, HAVING OTHER CITIES, ONE-TO-ONE MATCH, TWO TO ONE MATCH IN THE BACKGROUND.
WE KNOW EXACTLY HOW MUCH MONEY CAME FROM MCKINNEY AND HOW MUCH CAME FROM GARLAND.
SO IT IS PROPORTIONATE THE AMOUNT THAT CAME FROM GARLAND GETS THE 30%
SO IT'S NOT GETTING A COLA NOW BECAUSE YOU'RE NOT RETIRED YET, RIGHT? BUT WHEN YOU DO RETIRE, THE PORTION THAT'S THAT'S ASSOCIATED WITH GARLAND WILL HAVE THAT 30%.
I MEAN, KENNY WILL HAVE THEIR 70%.
WE'RE DOING ALL OF THAT IN THE BACKGROUND, BUT IT'S ONE NUMBER TO YOU.
SO, UM, THE CITY DO THE OPPOSITE AWAY.
OH YES, IN FULL TRANSPARENCY, YES, THE CITY CAN TAKE IT AWAY.
UM, IT'S, IT'S THINK OF THAT MAYBE YOU COUNT ON, DON'T, DON'T COUNT ON IT.
IT, IT'S KIND OF LIKE YOUR MERIT RAISES.
WE HOPE THAT WE GET A RAISE EVERY YEAR, BUT DOESN'T MEAN WE'RE GOING TO, JUST BECAUSE YOU RETIRE AND THE COLA'S IN PLACE DOESN'T MEAN IN 10 YEARS IT WILL, IT WILL CONTINUE TO BE, YOU'RE NOT GRANDFATHERED IN AT THAT TIME.
BECAUSE IF YOU'VE BEEN RETIRED FOR 15 YEARS AND ALL OF A SUDDEN MCKINNEY GOES BROKE AND THEY GO, WE GOTTA PULL BACK THIS PLAN, IT'S TOO EXPENSIVE.
THEY CAN DO IT WITH THE COLAS.
AND THEY GOT SO MUCH, THEY GOT SO MUCH, UM, FEEDBACK.
THAT'S A POSITIVE WAY OF SAYING THAT.
FOR IT TO THE POINT THAT MY NUMBER GOT PASSED AROUND TO ALMOST EVERY GARLAND RETIRED COP, AND MY PHONE RANG OFF THE HOOK EVERY JANUARY.
ARE WE GETTING A RAISE? ARE WE GETTING A RAISE? ARE WE GETTING A RAISE? AND I'M LIKE, NO, I'M SORRY.
AND WHO GAVE YOU MY NUMBER? 'CAUSE EVERY GAR YOU DID, EVERY GARLAND RETIREE WAS CALLING ME AND IT FELT HORRIBLE TO GO LOOK AT THEIR ACCOUNTS TO SEE THAT THEY'D BEEN RETIRED FOR SO LONG WITH NO INCREASES.
SO WHILE THE, THE CURRENT PLAN IS AWESOME, UPDATED SERVICE CREDITS ARE AWESOME WHEN YOU'RE RETIRED, THAT LITTLE TICK EVERY YEAR, IT, IT COULD BE THE DIFFERENCE IN, IN
[01:25:01]
YOU BUYING A GALLON OF MILK OR NOT, RIGHT? SO, SO WHEN YOU'RE MAD AT MCKINNEY OR YOU'RE MAD AT WORK AND YOU'RE SITTING AT YOUR DESK GOING, OH, THINK ABOUT WHAT YOU HAVE, YOU REALLY DO HAVE A LOT.OKAY? I KNOW I'M PROBABLY, I DON'T KNOW HOW LONG I'VE GONE, I JUST, WE'RE ALMOST TO THE END, I PROMISE.
AND YOU CAN GO OUT AND GET YOUR ICE CREAM, UM, YOUR TREAT FOR SITTING WITH ME FOR TWO HOURS.
SO ONCE YOU'VE RETIRED AND YOU ARE DONE AND YOU'RE SITTING AT HOME AND YOU'RE LIKE, OH, I'M BORED, I WANNA GO BACK TO WORK.
WHO WANTS TO GO BACK TO WORK? HAS ANYONE RETIRED YET ALREADY? NOT YET.
SO GREAT THING WHEN TMRS IS, YOU CAN, AGAIN, WE'RE NOT SAYING YOU GOTTA GO SIT OUT IN THAT ROCKING CHAIR.
IF YOU WANNA GO BACK TO WORK, GO BACK TO WORK.
BUT THE QUESTION TO ASK, WELL, WHAT HAPPENS TO MY ANNUITY IF I GO BACK TO WORK? WELL HAPPENS TO THIS CHECK THAT TMRS IS PAYING ME, OKAY? IF YOU GO BACK TO WORK FOR TARGET, WE DON'T CARE, RIGHT? IT'S NOT A TM RS CITY.
GO MAKE SIX FIGURES AT ANY OTHER COMPANY.
GO DO WHATEVER YOU WANT, RIGHT? GO BE GREAT.
YOU'RE GONNA CONTINUE GETTING YOUR CHECK FROM US EVERY MONTH, OKAY? IF YOU DECIDE TO GO BACK TO WORK FOR ANOTHER TMRS CITY, YOU LE YOU RETIRE FROM MCKINNEY AND THREE MONTHS LATER, PLANO HAS A POSITION AND YOU'RE BORED, AND YOU GO BACK TO PLANO, GO BACK TO GO TO PLANO.
AS LONG AS YOU HAVE CROSSED OVER INTO A NEW MONTH, YOU ABSOLUTELY CAN DO SO.
OKAY? SO IF YOU RETIRE IN JULY, I DON'T CARE IF YOUR LAST DAY OF WORK IS JULY 2ND, YOUR RETIREMENT MONTH IS JULY.
YOU CANNOT GO WORK FOR PLANO UNTIL AUGUST.
YOU GOTTA CROSS OVER TO THE NEW MOM.
YOU WALK IN THE DOOR TO PLANO VESTED AND RETIREMENT ELIGIBLE, YOU HAVE THAT STATUS THIS MINUTE YOU WALK IN THE DOOR, YOU HAVE NO MONEY, BUT YOU HAVE STATUS, RIGHT? YOU GOT THE STATUS, JUST NO MONEY.
SO WHAT IT MEANS THOUGH, IS IF YOU WORK FOR FOUR YEARS FOR PLANO AND THEN YOU'RE DONE, OKAY? BE DONE.
YOU'RE GONNA RETIRE THAT ACCOUNT.
YOU'RE GONNA GET YOUR MONEY, YOUR INTEREST, YOUR CITY'S MATCH.
PLANOS GONNA STILL MATCH IT, EVEN THOUGH YOU DIDN'T WORK THERE FOR FIVE YEARS, YOU WERE VESTED WHEN YOU WALKED IN THE DOOR, RIGHT? SO NOW YOU'RE GONNA HAVE TWO RETIREMENT ACCOUNTS, TWO SEPARATE CHECKS COMING TO YOU.
DO YOU HAVE A QUESTION ABOUT THAT? OH, OKAY, YOU DO.
SO IF YOU GO BACK TO WORK FOR PLANO, IN THIS CASE, WE'RE GONNA CONTINUE ON THE LAST DAY OF THE MONTH, DEPOSITING YOUR RETIREMENT CHECK FROM MCKINNEY.
YOU'RE EARNING A SALARY AND YOU'RE NOW PUTTING 7% OF THAT SALARY BACK INTO TMRS IN A BRAND NEW MEMBERSHIP.
OKAY? THESE ARE YOUR OPTIONS, RIGHT? AND YOU, AGAIN, YOU'RE RETIREMENT ELIGIBLE, YOU WORK FOR FOUR YEARS AND THEN SAY, PEACE OUT, JULIA, I'M GONE.
SO, AND THEN YOU LEAVE, RIGHT? AND YOU RETIRE THAT ACCOUNT AND NOW YOU HAVE TWO DIRECT DEPOSITS COMING TO YOU.
AND THE IT, THE RETIREMENTS DO NOT HAVE TO MIRROR EACH OTHER.
YOU CAN PICK A TOTALLY DIFFERENT OPTION, OKAY? SO IF YOU DECIDE TO COME BACK TO MCKINNEY, BECAUSE IT'S AMAZING AND EVERYONE'S REALLY HAPPY HERE, AND IT'S AWESOME, RIGHT? YOU GUYS ARE HAVING AN ICE CREAM SOCIAL, RIGHT? IT'S AWESOME.
IF YOU DECIDE TO COME BACK TO MCKINNEY, YOU HAVE TO HAVE A ONE YEAR BREAK, OKAY? YOU HAVE TO BE GONE.
YOU HAVE TO SUFFER THAT WHOLE YEAR BY NOT WORKING HERE.
YOU GOTTA RETIRE, BE GONE FOR A YEAR.
IF YOU COME BACK AFTER THAT YEAR, YOU KEEP GETTING YOUR CHECK, YOU, YOU GET YOUR SALARY AND YOU GET RE-ENROLLED BACK INTO TMRS. AND AGAIN, YOU'RE VESTED IN RETIREMENT ELIGIBLE RIGHT FROM THE START.
OKAY? OH, DON'T, BUT SHE ASKED, WHAT IF YOU GO, WHAT? THAT, THAT'S A HARD ONE.
SHE SAYS, WHAT IF YOU COME BACK WITHIN, PRIOR TO THAT YEAR'S TIMEFRAME, IF YOU GO BACK TO YOUR LAST EMPLOYEE IN CITY, THAT'S ALWAYS GONNA BE YOUR RETIRING CITY.
OKAY? WHETHER YOU HAD 18 YEARS IN PLANO AND TWO YEARS HERE, MCKINNEY'S YOUR RETIRING CITY, RIGHT? IF YOU GO BACK TO MCKINNEY WITHIN THAT YEAR, THE CHECK THAT WE'RE SENDING YOU IS GONNA BE FROZEN.
MEANING STOPPED SUSPENDED, YOU'RE NOT GETTING IT.
OKAY? WE PAID YOU YOUR LUMP SUM, WE PAID YOU A COUPLE OF MONTHS.
THIS GIRL, IF SHE CHOSE A LUMP SUM, AND UNFORTUNATELY PEOPLE DO THAT 'CAUSE THEY WANT THAT MONEY, THEY'LL ALL FOREGO THAT.
HERE'S THE CATCH, THAT MONEY ISN'T MADE UP.
SO IF YOU COME BACK AND YOU'RE LIKE, I DON'T CARE, OH, MY EARRING, IF, IF YOU COME BACK AND WE'RE GONNA SUSPEND YOUR BENEFIT AND YOU GO, OKAY, I'LL SUSPEND IT.
AND YOU END UP WORKING FOR FOUR YEARS, RIGHT? THIS IS AN EXAMPLE.
WHAT IF YOUR CHECK WAS A THOUSAND DOLLARS
[01:30:01]
AND YOU WERE GONE FOR FOUR YEARS AND YOU CAME BACK FOR FOUR YEARS? HOW MUCH MONEY DID YOU NOT GET? EASY MATH.$48,000 THAT WE ARE NOT MAKING UP TO YOU.
NOW, WHEN YOU RETIRE THE SECOND TIME, WE KICK BACK IN THAT CHECK, OKAY? BUT ALL THAT MONEY YOU DIDN'T GET DOESN'T GET MADE UP, OKAY? RIGHT? YOU HAVE TO COME BACK IN A OUS ELIGIBLE POSITION.
SO, AND WE, WE REALLY ARE WINDING DOWN.
WE'RE GETTING DOWN TO THE, TO THE END NOW HERE.
SO THIS SUPPLEMENTAL DEATH BENEFIT HAS NO EASY SEGUE.
THERE'S NOTHING TO CONNECT IT, LIKE, RIGHT? WE'RE TALKING ABOUT RETIREMENT.
AND NOW I'M GONNA TELL YOU ABOUT A LIFE INSURANCE THAT YOU HAVE HERE AT THE CITY THROUGH TMRS. SO AGAIN, CADILLAC PLAN, YOU GUYS HAVE THIS PROVISION THROUGH TMRS CALLED SUPPLEMENTAL DEATH BENEFIT.
THAT ACTS LIKE LIFE INSURANCE, WHICH MEANS WHEN YOU PASS AWAY AS A RETIREE, YOUR BENEFICIARY IS GONNA GET A CHECK FROM US FOR $7,500 TAX FREE.
OKAY? IF YOU DID RETIRE, IT DOESN'T MATTER WHAT OPTION YOU CHOSE, RIGHT? THIS IS A SEPARATE PAYOUT.
IF YOU DIE AS AN EMPLOYEE PRE-RETIREMENT, THAT IS EQUAL TO YOUR ANNUAL SALARY, YOUR BENEFICIARY'S GONNA GET A PAYOUT THAT'S EQUAL TO YOUR ANNUAL SALARY.
SO IF YOU MAKE 60,000 A YEAR, THEY'RE GONNA GET A TAX FREE CHECK FOR $60,000 ABOVE AND BEYOND WHAT YOU MAY HAVE THROUGH YOUR HEALTH INSURANCE PLAN HERE.
THIS IS THROUGH TMRS. THAT'S WHAT I SAID IT, IT HAS NOTHING TO DO WITH RETIREMENT.
BUT I TOLD YOU, WE TALK ABOUT DEATH A LOT.
WE GO TO THE DARK SIDE, I GO TO THE DARK SIDE.
THIS IS, THIS IS ANOTHER PLAN.
AND BECAUSE THIS IS A SEPARATE PAYOUT FROM YOUR RETIREMENT ACCOUNT, YOU CAN HAVE SEPARATE BENEFICIARIES.
OKAY? SO IF I WANT MY KIDS TO BE MY RETIREMENT ACCOUNT BENEFICIARY, BUT MY SISTER TO BE MY SUPPLEMENTAL DEATH BENEFIT BENEFICIARY, I CAN HAVE THAT.
JUST HOP ON MY APP, HOP ON MY, MY TMRS, DO MY RETIREMENT ACCOUNT BENEFICIARIES AND MY SUPPLEMENTAL DEATH BENEFITS BENEFICIARY.
AND IT'LL BE, YOU'LL SEE IT AS SDB.
'CAUSE THAT'S A REALLY LONG WORD TO TYPE OUT ON AN APP, RIGHT? SDB.
SO, BUT WITH THAT BEING SAID, I'M GONNA TALK ABOUT ONE MORE THING AND IT HAS, IT HAS TO DO WITH DEATH.
SO LET'S MAKE SURE RETIREMENT, IS THERE ANY OTHER QUESTIONS ON RETIREMENT? YOU WANNA TALK ABOUT DEATH? NO ONE EVER WANTS TO TALK ABOUT DEATH.
HE ASKED, CAN WE PUT ADDITIONAL MONIES INTO TIMOROUS? THE ONLY MONEY IN TIMOROUS IS BASED ON COMPENSATION FROM YOUR CITY.
DOES THIS RETIREMENT AFFECT YOUR SOCIAL SECURITY? NO, MA'AM.
BECAUSE THE FEDERAL GOVERNMENT DID AWAY WITH A WINDFALL ELIMINATION PROVISION.
IF YOU HAD ASKED ME THAT A YEAR AGO, I WOULD'VE SAID YES, DEPENDING.
ARE YOU GUYS A SOCIAL SECURITY CITY? YEAH.
SO IF YOU'RE PAYING SOCIAL SECURITY AND YOU'VE EARNED YOUR BENEFIT AND YOU HAVE TMRS, GREAT.
YOU GET IT ALL RIGHT? YOU GET TMRS, YOU GET SOCIAL SECURITY AND EVERYTHING, AND I'M GONNA USE PLANO AGAIN BECAUSE YOU'RE A NEIGHBOR IN CITY, THEIR EMPLOYEES DO NOT PAY INTO SOCIAL SECURITY AT ALL.
SO BACK IN THE EIGHTIES, CITIES COULD HAVE OPTED OUT OF SOCIAL SECURITY IN 86 AND LOTS OF CITIES OPTED OUT OF SOCIAL SECURITY.
OFF THE TOP OF MY HEAD, PLANO, LEWISVILLE, HUNTSVILLE, THEIR EMPLOYEES DO NOT PAY INTO SOCIAL SECURITY.
IF YOU DON'T PAY INTO IT, YOU DON'T GET IT RIGHT.
SO WAIT, SO IF YOU HAVE IT THROUGH YOUR HEALTH INSURANCE, THIS IS A DIFFERENT BENEFIT.
SO WHOEVER IS YOUR RETIREMENT ACCOUNT BENEFICIARY AUTOMATICALLY DEFAULTS TO BE THE SUPPLEMENTAL DEATH BENEFITS.
BUT IF YOU WANT SOMEONE DIFFERENT, HOP ON YOUR APP AND DESIGNATE THEM.
OKAY?
I USED TO JOKE AND SAY I COULD PUT MY HUSBAND AS MY RETIREMENT ACCOUNT AND MY BOYFRIEND IS MY SUPPLEMENTAL DEATH BENEFITS
AND IT, IT HIT YOU DON'T NEED SPOUSAL CONSENT.
THIS IS LIFE INSURANCE, NOT A PENSION.
OKAY? SO THE REASON I SAY I'M GONNA GO TO THE DARK SIDE IS LET'S TALK ABOUT BENEFICIARY DESIGNATIONS AND WHAT HAPPENS TO YOUR MONEY IF YOU DON'T MAKE IT TO RETIREMENT, RIGHT? SO WE'VE BEEN TALKING ABOUT ALL THE RETIREMENT, THE OPTIONS AND ALL THIS.
WHAT HAPPENS IF YOU DON'T MAKE IT TO RETIREMENT? WHAT HAPPENS TO YOUR MONEY? WELL, WHEN YOU
[01:35:01]
GET HIRED AT TMRS IN YOUR OR AT THE CITY, YOU ARE ASKED TO DESIGNATE A BENEFICIARY STRAIGHT UP, DESIGNATE YOUR BENEFICIARY.WELL, WHY IS THAT? WELL, GUESS WHAT? I SAID IT EARLIER.
IF YOU DIE, WE HAVE TO PAY IT TO SOMEONE.
WE DON'T SEND IT BACK TO THE CITY.
WE DON'T GIVE IT TO THE STATE OF TEXAS AND WE DON'T KEEP IT.
OKAY? SO YOU DESIGNATE A BENEFICIARY WHEN YOU BECOME VESTED.
THAT'S WHY I ASKED WHO'S ALL VESTING? THIS ALSO TIES INTO THAT VESTING IS SO VALUABLE AND EVERYONE WANTS TO BE VESTED.
THERE'S A DEATH BENEFIT ATTACHED TO BE INVESTED.
SO WHEN YOU BECOME VESTED, YOU GET THAT EMAIL FROM TEAM RUSS.
YOU GET THAT LETTER THAT SAYS, RECONFIRM YOUR BENEFICIARY BECAUSE NOW THAT THERE'S DEATH BENEFITS ATTACHED, YOU NEED TO CHECK THAT BENEFICIARY AND TELL US THAT THIS IS FOR SURE THE PERSON YOU WANT TO GET YOUR BENEFIT, OKAY? SO WHEN YOU DIE AS A RETIREE, WE KNOW EXACTLY WHAT'S HAPPENING TO YOUR MONEY BASED ON THE OPTION THAT YOU CHOSE, RIGHT? IT'S EITHER STOPPING OR IT'S GONNA CONTINUE.
IF YOU DIE AS A NOT VESTED EMPLOYEE, YOU'VE ONLY BEEN HERE TWO YEARS, YOU'RE NOT VESTED, YOU DON'T HAVE A BENEFIT ATTACHED TO IT YET.
SO THAT MEANS WE JUST ISSUE A REFUND TO YOUR BENEFICIARY.
WE GIVE THEM WHATEVER'S IN YOUR ACCOUNT INTEREST PLUS THE SUPPLEMENTAL DEATH BENEFIT.
YOU DON'T HAVE TO BE VESTED TO BE ELIGIBLE FOR THAT.
YOU JUST HAVE TO BE AN EMPLOYEE, OKAY? THIS MIDDLE GROUND OF BE INVESTED MEANS YOU HAVE A DEATH BENEFIT ATTACHED.
SO IF YOU PASS AWAY AS A VESTED EMPLOYEE, PRE-RETIREMENT, TMRS LOOKS AT YOUR ACCOUNT.
OKAY? LET'S SAY I'VE BEEN HERE FOR 12 YEARS, I'M VESTED, BUT I'M NOT RETIREMENT INELIGIBLE, BUT I'M VESTED.
SANDRA CALLS TMRS AND SAYS, WE LOST OUR EMPLOYEE.
AND THEY'RE SAD, RIGHT? YOU GUYS ARE ALL CRYING FOR ME.
WELL, THEY GO INTO MY ACCOUNT AND THEY SAY, WHO'S HER BENEFICIARY? IF MY HUSBAND SPOUSE IS MY ONLY BENEFICIARY, I ONLY LISTED HIM, HE'S GONNA GET A LETTER FROM S THAT GIVES HIM FOUR OPTIONS ON WHAT TO DO WITH MY MONEY.
OKAY? OPTION NUMBER ONE IS TO LEAVE THE MONEY IN TUSS UNTIL I WOULD HAVE TURNED AGE 60.
OKAY? AS LONG AS I WASN'T ALREADY 60.
WHAT THAT DOES FOR HIM IS THE MONEY CONTINUES TO GROW, AND THEN WHEN I TURN THE MONTH, I WOULD'VE TURNED 60.
WE START PAYING HIM A LIFETIME CHECK, OKAY? OPTION TWO IS HE CAN RETIRE MY ACCOUNT IMMEDIATELY AND START RECEIVING A MONTHLY CHECK.
I'M NOT EVEN ELIGIBLE TO RETIRE, RIGHT? I ONLY HAD 12 YEARS WITH THE CITY JUST BY WAY OF ME BEING INVESTED GIVES HIM THAT, RIGHT? OKAY.
THIRD OPTION IS HE CAN JUST CHOOSE TO TAKE A CHECK FOR 15 YEARS.
SO I DON'T WANT, WANT A LIFETIME PAYMENT.
I JUST WANNA CHECK EVERY MONTH FOR THE NEXT 15 YEARS.
OKAY? FOURTH OPTION IS HE CAN TAKE MY MONEY, HE CAN CASH OUT MY MONEY.
HE LOSES ALL OF THE CITY'S MONEY, RIGHT? YOU CASH OUT YOUR MONEY, YOU LOSE IT ALL.
WHY WOULD YOU EVER DO IT? OKAY? NOW, I'M NOT MARRIED.
SO LET'S SAY I JUST PUT MY SISTER DOWN AND MY SISTER'S LISTED AS MY BENEFICIARY.
SHE GETS THAT SAME LETTER, BUT THERE'S ONLY THREE OPTIONS.
LIFETIME PAYMENT, 15 YEAR PAYMENT, OR A REFUND.
SO A NOT A A SPOUSE IS THE ONLY ONE WHO GETS THAT AGE 60 OPTION.
OKAY? NOW, YOU GUYS ALREADY KNOW I HAVE THREE KIDS AND I'M NOT MARRIED.
SO GUESS WHO ARE MY BENEFICIARIES? MY THREE KIDS.
SO IF YOU HAVE MULTIPLE BENEFICIARIES ON THE ACCOUNT, THEY HAVE TWO OPTIONS.
SO I DIE, MY, MY THREE KIDS GET A LETTER THAT SAID, HEY, YOU HAVE TWO OPTIONS ON WHAT TO DO WITH MOM'S MONEY.
TAKE A 15 YEAR PAYMENT DIVIDED EQUALLY BETWEEN THEM OR CASH OUT, RIGHT? ALL THREE OF THEM HAVE TO AGREE ON THE SAME OPTION, OR WE DON'T PAY.
I HELD A FILE FOR OVER A YEAR, RIGHT? 'CAUSE A BROTHER AND SISTER COULD NOT AGREE ON WHAT TO DO WITH MOM'S MONEY A YEAR.
AND THEY WOULD, THEY WERE FIGHTING.
SO I TOLD MY KIDS, YOU BETTER TAKE THAT 15 YEAR PAYMENT.
'CAUSE IF YOU DON'T GUESS WHAT I'M DOING, I'M HAUNTING THEM FOR 15 YEARS, I'M GONNA HAUNT THEM FOR 15 YEARS.
SO, UM, MULTIPLE BENEFICIARIES DO NOT GET A LIFETIME PAYMENT.
SO IN YOUR OWN WORLD, IF YOU HAVE ONE PERSON THAT YOU WANT TO MAKE SURE HAS, WILL GET PROTECTED FOR LIFE, WILL HAVE A LIFETIME PAYMENT.
THEY HAVE TO BE THE ONLY BENEFICIARY, BUT THEN YOU DESIGNATE ALTERNATES, RIGHT? SO IF YOU HAVE YOUR WIFE AS THE BENEFICIARY, YOU GO UNDER THE NEXT LINE AND YOU DESIGNATE ALTERNATES BECAUSE IF SOMETHING HAPPENS TO YOU AND YOUR WIFE AT THE SAME TIME, THE ALTERNATES NOW BECOME THE BENEFICIARIES AND NOW THEY GET TO RETIRE YOUR
[01:40:01]
ACCOUNT.OKAY? SO I BELIEVE IF PEOPLE UNDERSTOOD HOW IT PLAYS OUT, THEY MIGHT CHOOSE THEIR BENEFICIARIES DIFFERENTLY.
I'VE MET A LOT OF PEOPLE WHO PUT THEIR SPOUSE AND THEIR KID, AND I'M LIKE, WHAT DO YOU WANT TO HAPPEN? DO YOU UNDERSTAND WHAT HAPPENS HERE? AND THEY'RE LIKE, WELL, I GUESS THEY JUST GET THE MONEY.
AND I'M LIKE, IF YOU WANT YOUR WIFE OR YOUR HUSBAND TO GET A LIFETIME PAYMENT, YOU NEED TO TAKE THAT KID OFF.
BUT PUT THE KID AS THE ALTERNATE.
OKAY? SO LET'S GET OUT OF THE DARK SIDE.
BUT ONE LAST THING I WILL SAY, I WILL ASK YOUR QUESTION.
I, I HAVE TOLD YOU THAT MY KID IS 17 AND YES, HE'S MY BENEFICIARY.
AND A LOT OF PEOPLE SAY, OH, YOU CAN'T HAVE MINORS AS YOUR BENEFICIARY.
I'VE BEEN DOING THIS, RIGHT? BUT I ALSO KNOW THAT WHEN I PUT MY SON'S NAME AND DATE OF BIRTH IN, I GOT A LITTLE POPUP BOX THAT SAID, BECAUSE HE'S A MINOR, DO YOU WANNA DESIGNATE A CUSTODIAN? THE CUSTODIAN IS FOR T'S PURPOSES ONLY.
AND I PUT MY MOM'S NAME DOWN AND GRANDMA SHEILA GRANDMA, IF THE MONEY BECOMES DUE, MY SON, AND HE'S STILL A MINOR, MY MOM IS THE ONE MAKING THE CHOICES FOR HIM AND SIGNING THE PAPERWORK FOR HIM.
THAT'S ALL THAT CUSTODIAN IS FOR.
I SO IF YOU HAVE A MINOR AND YOU GO, I CAN'T PUT THEM DOWN BECAUSE THEY'RE A MINOR, YES YOU CAN.
OKAY, BUT PUT A CUSTODIAN PLEASE, PLEASE.
BECAUSE IF I DIDN'T PUT A CUSTODIAN AND I DIED, MY SON'S STILL GETTING THE MONEY.
BUT GUESS WHO GETS TO MAKE THE DECISIONS FOR HIM? MY EX, HIS DAD, WHICH IS FINE.
SO IF YOU HAVE TWO CHILDREN PROVISIONS, SECOND CHILD EQUAL, UM, A LIFETIME.
NOW THE 15 YEAR PAYOUT'S GONNA BE EQUAL TO MAKE SURE ALL YOUR MONEY IS PAID OUT, INCLUDING THE CITY'S MATCH.
SO I I'VE, I'VE HEARD THERE'S A LOT OF DIFFERENT STRATEGIES, WHICH I, YEAH, YOU COULD DO THAT.
UM, THE ONE THING THAT I DO KNOW IS THAT TEAMWORKS CANNOT ENFORCE ANYTHING WHERE I HAVE A MOM SAYING, I'M GONNA PUT MY KIDS, I'M GONNA PUT MY OLDEST DOWN, AND THEN SHE'LL JUST PAY, SHE'LL JUST DIVIDE IT UP BETWEEN THE REST, WE, OKAY, GOOD LUCK WITH THAT.
WE'RE NOT GONNA, WE CAN'T ENFORCE THAT.
BUT NOW THE TAX LIABILITY IS ALL ON THAT ONE CHILD.
SO THERE'S A, THERE'S SOME, THERE'S SOME STRATEGIES THAT CAN BE DONE THERE.
YOU AGAIN, YOU COULD ALSO PUT 'EM AS THE SUPPLEMENTAL DEATH BENEFITS, RIGHT? BUT DESIGNATE YOUR BENEFICIARIES IF YOU JUST PLEASE, PLEASE DO.
I GET ON MY HIGH HORSE ALL THE TIME ABOUT BENEFICIARY DESIGNATIONS.
OTHER THAN THAT, UM, HERE ARE SOME RESOURCES.
CALL OUR OFFICE, CALL ME SCHEDULE AN INDIVIDUAL COUNSELING SESSION.
IF YOU GO TO OUR WEBSITE, YOU'LL SEE ON THE LEFT HAND SIDE SCHEDULE AN ONLINE COUNSELING SESSION.
THAT IS A 30 MINUTE SESSION WITH ME OR THREE OF MY OTHER COLLEAGUES.
WE'RE THE ONLY ONES WHO DO THESE SESSIONS.
AND OUR ENTIRE JOB IS JUST TO EDUCATE.
SO IF YOU HAVE, IF YOU ARE NEARING RETIREMENT AND YOU ARE WITHIN LIKE A 3, 4, 6 MONTH WINDOW OF RETIREMENT AND YOU WANNA HAVE A VIRTUAL MEETING WITH ME OR ONE OF MY COWORKERS THAT INCLUDES YOUR FINANCIAL PLANNER OR YOUR SPOUSE, LOG ON THE WEBSITE, SCHEDULE AN APPOINTMENT, A CALENDAR WILL COME UP, SCHEDULE THAT APPOINTMENT, GET YOUR QUESTIONS ANSWERED.
UM, TAKE A PICTURE OF THIS SCREEN.
THIS IS MY CONTACT INFORMATION, MY NAME, MY EMAIL, MY PHONE NUMBER.
THE QR CODE GOES TO A SURVEYMONKEY, LIKE A FOUR QUESTION.
I WOULD APPRECIATE ANY FEEDBACK THAT YOU HAVE ON THE PRESENTATION, BUT IF YOU HAVE ANY QUESTIONS, WHETHER IT'S NEXT WEEK OR NEXT YEAR, REACH OUT TO ME.
I DO NOT PLAN TO RETIRE ANYTIME SOON UNLESS THEY FIRE ME.
BUT THAT'S WHAT THOSE SURVEYS ARE FOR.
UM, BUT YEAH, SEND ME AN EMAIL CALLS, I WILL ANSWER YOUR PHONE CALL IF I'M NOT DOING THIS.
BUT THIS IS THE MAJORITY OF MY JOB.
BUT IF YOU WANNA TEXT ME, TEXT ME, THAT'S A CELL PHONE.
JUST SAY, HEY, I WAS IN THE MCKINNEY MEETINGS AND YOU SAID THIS.
CAN YOU CLARIFY OR DOES THIS REALLY MEAN ME? YES, IT DOES MEAN YOU, IT MEANS EVERYBODY, RIGHT? UM, BUT OTHER THAN DOES ANYONE ELSE HAVE ANY OTHER QUESTIONS? YOU CAN CALL THE ONE 800 NUMBER ANYTIME MONDAY THROUGH FRIDAY, AND YOU'RE GONNA GET, UM, A MEMBER OF REPRESENTATIVE ANSWERING THE QUESTIONS.
UM, BUT IF YOU WANNA SET UP AN ACTUAL APPOINTMENT WITH A 30 MINUTE COUNSELING, YOU GO ONLINE TO SCHEDULE THAT MEETING.
I'M SORRY, THE CALL CENTER'S NOT GONNA SIT THERE WITH YOU FOR 30 MINUTES.
THEY'RE NOT GOING TO, THE 30 MINUTE APPOINTMENTS ARE BY ZOOM.
[01:45:01]
I CAN ACTUALLY SHARE MY SCREEN WITH YOU AND PULL IT UP AND SHOW YOU ALL THOSE NUMBERS.WE CAN GO A LITTLE BIT MORE IN DEPTH IN THAT 30 MINUTE MEETING THAN THE MEMBER SERVICE CENTER.
THE CALL CENTER COULD IN A, IF YOU'RE LOCKED OUT OF YOUR MY TEAM E ACCOUNT BECAUSE YOU FORGOT YOUR PASSWORD, CALL THE ONE 800 NUMBER, RIGHT? JUST THREE OR FOUR.
SCHEDULE THAT, THAT SESSION AND JUST MAKE SURE YOU HAVE ALL THE QUESTIONS ANSWERED.
DON'T THINK YOU KNOW THE ANSWER.
DID YOU HAVE A QUESTION? IS THAT AND THE 15 YEAR, WHAT IS IT? JUST DIVIDED? WELL, WE'RE LOOKING AT THE TOTAL RESERVES.
UM, IF YOU, ARE YOU THE BENEFICIARY? YOU AS BOTH MEMBERS? NO, JUST SO YOU'RE THE, YOU'RE THE THE WIFE.
JUST, JUST WANNA MAKE SURE IF HE PASSES AWAY BEFORE RETIREMENT, WE'RE GONNA SEND YOU A LETTER THAT SAYS, HEY, HERE ARE YOUR OPTIONS.
AND THEN IT'S GONNA BE THAT A HUNDRED PERCENT SURVIVOR OPTION BECAUSE WE'RE GONNA LOOK AT YOUR DATE OF BIRTH AND ALL OF HIS MONEY AND PAY YOU OUT BASED ON THAT.
BUT, BUT AGAIN, YOU GET COLAS, IF YOU'RE GETTING A MONTHLY PAYMENT, YOU GET COLAS TOO.
THAT'S NOT JUST FOR THE MEMBER.
YOU'RE GETTING YOUR MONEY, YOUR BENEFIT WOULD INCREASE EVERY MONTH AS WELL.
YOU JUST DON'T HAVE THE OPTION TO TAKE A LUMP SUM PAYMENT.
SO IF YOU HAVE TWO PEOPLE, THEY'RE BOTH MEMBERS OF TMRS, YOU CAN, YOU HAVE TO LOOK AT HOW IT'S ALL GONNA WORK OUT.
SO IF MY HUSBAND WAS A MEMBER OF TMRS AT ONE CITY AND I'M, OR EVEN IN THE SAME CITY, YOU'RE BOTH HUMOROUS MEMBERS, YOU'RE BOTH GONNA RETIRE.
LET'S SAY HE DOES A HUNDRED PERCENT SURVIVOR AND I DO 50% SURVIVOR AND WE'RE EACH OTHER SURVIVORS, RIGHT? YOU HAVE TO THINK ABOUT IT.
IF HE DIES FIRST, NOW I'M GONNA GET A HUNDRED PERCENT OF HIS BENEFIT, BUT MY OWN BENEFIT'S GONNA INCREASE TO THAT RETIREE LIFE ONLY OPTION.
SO WHEN YOU'RE PUTTING PEN TO PAPER, IF YOU HAVE TWO, LIKE YOU SAID, YOU KIND OF, IF YOU'RE TRYING TO PUT PEN TO PAPER AND LOOK AT THE FINANCIALS OF IT, MY OWN BENEFIT'S GONNA INCREASE BECAUSE MY SURVIVOR DIED FIRST.
BUT YEAH, YOU'RE, WE'RE NEVER GONNA COMBINE THE ACCOUNTS.
IT'S ALWAYS GONNA BE SEPARATE.
WELL, HE'S ASKING ABOUT THE UPDATED SERVICE CREDIT.
I CAN GET INTO THE NITTY GRITTY OR I CAN STAY HIGH LEVEL.
I CAN GET IN THE WEEDS OR I CAN STAY HIGH LEVEL.
IT'S JUST A CALCULATION THAT WE RUN EVERY JANUARY.
YOU'VE BEEN HERE 30 YEARS, RIGHT? SO IN JANUARY, 2025, WE WENT TO HIS ACCOUNT AND WE LOOKED AT YOUR SALARY FROM 23, 22, AND 21.
WE DIDN'T EVEN LOOK AT YOUR SALARY FOR 24.
OKAY? WE LOOKED AT THIS THREE YEAR WINDOW, WHICH HAS 36 DEPOSITS IN IT, RIGHT? JANUARY TO DECEMBER WE DROPPED THE HIGH AND THE LOW.
SO NOW WE HAVE 34 DEPOSITS AND WE AVERAGED IT AND WE SAID, OH, YOU MAKE THIS MUCH MONEY.
WHAT IF YOU HAD BEEN MAKING THIS MUCH MONEY 30 YEARS AGO, DEPOSITING AT THE CURRENT PLAN, 7%, TWO TO ONE MATCH, WHAT WOULD THIS HYPOTHETICAL ACCOUNT BALANCE BE COMPARED TO HIS REAL ACCOUNT BALANCE? IF HYPOTHETICAL IS HIGHER THAN REAL, YOU GET THE DIFFERENCE.
WHATEVER THE DIFFERENCE IS ADDED TO YOUR ACCOUNT IN A BONUS, BASICALLY BONUS DEPOSIT, IT'S ANOTHER LINE ITEM.
WHEN YOU LOOKED AT THAT ESTIMATE THAT SAID CONTRIBUTIONS, INTEREST, THAT MATCH UPDATED SERVICE CREDIT.
AND IN THE EXAMPLE I HAD, IT WAS 42,000.
SO THIS PERSON HAD $42,000 ADDED TO THEIR ACCOUNT.
MCKINNEY PAYS FOR IT, RIGHT? MCKINNEY PAYS FOR IT.
BUT WHEN YOUR CASH BALANCE PLAN, EVERY PENNY IN YOUR ACCOUNT DETERMINES YOUR MONTHLY CHECK.
SO IF MCKINNEY DID NOT HAVE THIS PROVISION, IN THAT EXAMPLE I SHOWED THERE'D BE $42,000 LESS IN THE ACCOUNT.
SO ALL OF THOSE CHECKS WENT DOWN, WOULD GO DOWN THREE YEARS, AND THEN YES, YOU PAY, RIGHT?
[01:50:01]
SO LET'S, LET'S SAY IN THAT THREE YEAR AVERAGE, IT SAYS YOUR AVERAGE SALARY IS $5,000.BUT WHEN YOU STARTED 30 YEARS AGO, YOU WERE MAKING $800, RIGHT? AND YOU WERE DEPOSITING 5% OF $800.
BUT NOW WE'RE GONNA SAY, WELL, WHAT IF YOU HAD BEEN DEPOSITING 7% OF $5,000 EVERY MONTH? THAT'S HOW WE COME UP WITH THAT HYPOTHETICAL VERSUS REAL
SO IF 30 YEARS AGO MCKINNEY WAS AT 5% OR 6%, YOU ARE DOING THAT PERCENTAGE OF YOUR GROSS PAY.
BUT NOW MCKINNEY IS A 7% CITY.
SO WE'RE LOOKING AT THE AVERAGE SAYING, WHAT IF YOU HAD BEEN PUTTING 7% OF THIS AVERAGE SALARY FROM DAY ONE OF EMPLOYMENT? IT COULD HAVE BEEN, I DON'T OFF THE TOP OF MY HEAD.
WE, IT'S ALREADY PREDICTED IN THE ESTIMATE.
THE ONLY REALLY BIG, THE BIG PIECE OF ADVICE ON UPDATED SERVICE CREDITS IS IF YOU ARE LOOKING AT RETIRING IN DECEMBER, RUN THE NUMBERS FOR JANUARY.
BECAUSE IF IN THIS EVERY JANUARY IT'S A NEW CALCULATION.
SO NEXT JANUARY IN 26, WE'RE GONNA SKIP YOUR 25 SALARY AND LOOK AT 24, 23 AND 22.
SO LET'S SAY YOU HAD GOTTEN A BIG RAISE IN 24, UH, IT'S AVERAGES, LAWS OF AVERAGES.
YOU GOT 12 MONTHS AT A HIGH SALARY, BUT 24 MONTHS AT A LOW SALARY, LOWER SALARY.
BUT NOW WHEN YOU GET OUT FOUR YEARS FROM THAT BIG RAISE, OOH, THAT AVERAGE SALARY SKYROCKETED EVERY JANUARY.
IT'S A NEW ROLLING THREE YEAR WINDOW TO CALCULATE YOUR AVERAGE SALARY.
OKAY? SO IF
IF YOU'VE HAD A BIG PAY INCREASE, YOU HAVE TO BE AT THAT HIGH INCREASE FOR FOUR FULL YEARS TO REAP THE FULL BENEFIT OF UPDATED SERVICE CREDITS.
YOU DON'T HAVE, I MEAN IF YOU'RE READY TO RETIRE, RETIRE, BUT THERE ARE SOME STRATEGIES THAT YOU CAN LOOK AT.
BUT THE ESTIMATE PROGRAM, LIKE SANDRA SAID, ALREADY PREDICTS THAT WE ALREADY KNOW YOUR SALARY IN 24, RIGHT? WE ALREADY KNOW IT FOR ONE MONTH OF 25.
SO IT ALREADY PREDICTS THOSE UP.
FUTURE UPDATED SERVICE CREDITS.
DID I HIT MY WHOLE TWO HOURS? KIND OF FEEL BAD.
OKAY, IF YOU GUYS DON'T HAVE ANY OTHER QUESTIONS OR IF YOU WANNA TALK TO ME INDIVIDUALLY, I WILL STICK AROUND HERE UNTIL THE ROOM IS EMPTY AND THEN I WILL HEAD BACK TO AUSTIN.
THANK YOU GUYS FOR COMING AND SPENDING YOUR TWO HOURS WITH ME.