![[WKU HUMAN RESOURCES:Employee Benefits]](banben2.gif)
Service Retirement Benefits (KTRS)
Upon approval of your retirement application, you will receive monthly
a guaranteed lifetime annuity. The amount of your annuity depends on your
total years of service, the average of your best five annual salaries,
and your option selection. Our pamphl et "Service Retirement" explains
the retirement formula in detail.
Under the existing retirement law, your retirement annuity is automatically
increased 1.5% each July provided you have been retired at least ten months.
Periodic increases have been made in the past in addition to the regular
one and one-half percent ann ual increment.
Do not confuse the Survivor Benefit Plan with your Retirement
Plan. Survivor benefits apply only to active members. To provide for someone
after your death, you must select a retirement option that will meet your
needs. See The
O ptional Retirement Plans for descriptions of the available plans.
Taxes
Your retirement annuity is exempt from Kentucky income tax, but you have
to report your retirement income to the Internal Revenue Service (IRS).
Under federal tax law, members must pay taxes on their tax-sheltered annuities
immediately upon retirement. If you made contributions prior to August
1982 or made personal payments to the Kentucky Teachers' Retirement System
(KTRS), you may exclude a small portion of your retirement annuity. When
you retire, you must complete Form W-4P instructing KTRS how to withhold
taxes from your annuity.
All members receiving benefits from KTRS receive a Form 1099R,
Statement for Recipients of Annuities, Pensions, Retired Pay, or IRS Payments.
This statement shows the member's total benefits received, taxes withheld,
and taxable income for the preceding year. KTRS mails these statements
to its retirees each January. The IRS is also provided this information.
Medical Insurance
The Teachers' Retirement System is served by the Kentucky Health Purchasing
Alliance. Upon retirement, you have the opportunity to be covered by a
comprehensive medical insurance and prescription drug program. The health
insurance coverage becomes effective the first day of the month your retirement
begins, unless you are hospitalized the day your retirement becomes effective.
If so, coverage is delayed until the end of that hospitalization or until
the end of a six-month period, whichever is the earlier date. Your spouse
and dependent minor children (to age 19) may also qualify for this coverage.
There is a monthly charge for you and your spouse's coverage.
If you retired with less than 27 years service and less than age 55,
you will not have insurance coverage until July 1 following your 55th birthday.
Most retirees do not carry additional group medical insurance
until they reach age 65 because the KTRS insurance plan will not reimburse
expenses paid by another group plan. Our coverage is based on the assumption
that each individual eligible for all or part of Medicare coverage has
enrolled and qualified for such coverage. Since the KTRS insurance plan
will not reimburse you for expenses that would have been covered by Medicare,
it is very important that you and your spouse apply for full Medicare coverage
as soon as you are qualified to do so.
KTRS has contracted with Aetna Insurance Company to provide Medicare
coverage. Shortly after you retire, you will receive identification cards
and a booklet explaining your coverage. Insurance claims for Medicare participants
are made directly to the Aetna Insurance Company, Group Claim Department,
P.O. Box 35890, 10401 Linn Station Road, Louisville, Kentucky 40232.
Death Benefit
All retirees are covered by a $2, 800 death benefit, which can be paid
either to a designated beneficiary or to the member's estate. The beneficiary
designation must be on a form provided to you by the KTRS office.
Employment After Retirement
Generally, any other employment or income you may have, regardless of its
sources, has no effect on your retirement annuity. However, your employment
is limited to teaching 12 hours in any one school year when you are employed
by a designated employer of KTRS members and the employment is in a position
that entails duties or qualification requirements similar to positions
subject to participation in the retirement system. Designated employers
are required to report annually to KTRS the employme nt of all retired
KTRS members. KTRS reserves the right to reduce the monthly retirement
annuity of any retired member whose employment exceeds the limitation.
You are strongly urged to contact KTRS if you have any questions about
your employment after retirement. For more information see
www.ktrs.state.ky.us
Comments or questions about this section of Western
Online should be directed to Ivy
Roberson@WKU.edu
Last Modified: September 22, 1998
All contents copyright (C) 1995.
Western Kentucky University.