Frozen Lay Pension Plan Instructions 

Employees who worked full time prior to 01/01/2014 at an archdiocesan retirement location may be eligible for a Lay Pension Plan benefit. 
CBIZ is the administrator for Retiree Frozen Pension Benefits.
(Link at the bottom to the Employee handouts and CBIZ contact information.)

From the employee/retiree:

1.  Employees who worked full time before 01/01/2014 may be eligible for the Lay Pension Frozen Plan benefit. CBIZ will need a copy of the employee’s proof of age. This should be a copy of a driver’s license OR a copy of a state certified birth certificate OR a copy of a baptism certificate OR a copy of an old or new passport (copy the page with the birth date & photo).  Original documents are no longer required.

2.  CBIZ will also need the employee’s Letter of Intent to retire or CBIZ Notice of Retirement Form, with the date they want to begin receiving retirement benefits. The date must be the 1st of the month, since retirement benefits are paid on the 1st of each month. To retire from active service (for benefits), the retirement date should be the 1st of the month after the month that benefits terminate.  Be sure the letter is signed by the employee. For teachers, the first of the month for retirement should be after the last paycheck; for example if the last paycheck is during the summer in July, retirement would be August 1st.

(Please scroll down and link to the Employee handouts.)

From your office:

1. The retirement date will be the 1st of the month following the last day they are paid.  Be sure to terminate employment for this employee in Paylocity.

2.  If your employee participates in FSA deductions they have 2 options to chose from to close out their FSA Account without losing funds (see the “FSA Options” form for the employee).  Be sure their decision is made before retirement.

3. If the employee is under age 65 and has less than 10 years of full time services, they are not eligible for any Retiree health coverage. The Chancery Human Resources office will provide the offer of Continuation for medical insurance with Blue Cross and Blue Shield. Continuation of Coverage link  

4. If there is a spouse under age 65 or a dependent age 26 or under who are covered by the employee’s Family medical coverage, that family member is eligible for Continuation of medical coverage, if the Family policy ends for an employee who has less than 10 years of service.  The Chancery Human Resources office will provide the family member with the offer of Continuation for medical insurance with Blue Cross and Blue Shield. Continuation of Coverage link

If the employee has 7 or more years of full time service with us:

The employee can retire as early as age 60.  Because their monthly benefit will pay out over more months, their monthly amount will decrease approximately 5% a year for each year they retire before age 65, normal retirement. For example if they retire 3 years early at age 62, the monthly benefit would pay out 36 additional months and be decreased 15%.

If the employee has 10 years or more of full time service with us:

Some benefits can continue.  If the employee is age 65 or older, medical benefits will end since he or she is eligible for Medicare. However if the employee has active dental benefits those benefits can continue at the retiree premium.
If the employee or the employee’s spouse is under 65 and/or there are dependents under age 26 that are covered by our medical benefits and the employee retires before age 65, the employee can continue the medical benefit at the retiree premium. Employees who retire before age 65 are eligible for 2 years of Retiree health care for each 5 years they worked full time. For example, if the employee retires early at age 60 and has 14 years of service, he or she would qualify for 4 years of Retiree health benefits and then 1 year of Continuation health benefits before age 65 when eligible for Medicare.  An individual policy cannot change to a family policy at retirement.  The Continuation health policy has a higher premium than the Retiree Health Plan.  Both Retiree Health and Continuation Health plan premiums are subject to change.

If the employee has the Hartford Basic Life & Disability Insurance Benefit as an active policy and has 10 years or more years of service, there is a $5,000 Term Life Insurance Policy available for .44 cents a month (rarely does anyone turn this down).  When requested, the employee may also receive a Hartford continuation form for the balance of their current life insurance.  The price to continue their life insurance will be quoted by Hartford as an individual term policy priced for their age group. It is a no-obligation quote. The employee can choose to continue the policy or discontinue the policy. 

Please advise your employee to allow about 90 days for processing of pension benefits.

CBIZ will calculate the employee’s retirement options. The employee will then receive a Retirement Packet mailed to the home address, with a letter of instructions, a list of different monthly payment options to choose from and each of the forms that needs to be completed and signed. 

“Retro retirement” is possible – if the paperwork or final gross salary gets to CBIZ late. For example, if the employee wants to retire June 1st with a monthly $300 benefit and the completed & signed paperwork does not arrive until June 5th, their 1st retirement payment would go out in July and July’s payments would be for 2 months, $600.  Timely retirements are preferred whenever possible.

Because of privacy laws, CBIZ cannot discuss retirement details with the spouse or a relative unless there is a signed Power of Attorney or the employee provides direct permission.

RETIREMENT EMPLOYEE HANDOUTS

CBIZ RETIREMENT PLAN SERVICES
Attn: Archdiocese Service Team
6900 College Blvd, Suite 300
Overland Park KS 66211

Toll Free Phone: 866-715-1354
Local Office Phone: 913-345-0500
ask for the Archdiocese Pension Plan Team

Email address:
archkck@cbiz.com

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