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.
(Scroll to the bottom for the Employee handouts and CBIZ contact information.)
From the employee/retiree:
1. For employees who were full time employees before 01/01/2014, eligible for the Lay Pension Frozen Plan, CBIZ will need a copy of the employee’s proof of age; this can be a copy of a driver’s license, 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, 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 on August 15th, Retirement would be September 1st.
(Please scroll down for 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 termniate the employee in Dayforce.
2. If your employee participates in FSA deductions there are 2 options they have to chose from to close out their FSA Account without losing funds, (see the “FSA Retirement Options” form below for the employee). Be sure their decision is made before retirement.
3. If the employee is under age 65 and has active Health & Dental coverage and has less than 10 years of service, they are not eligible for any Retiree Health or Dental coverage, you are required by Federal Law to offer Continuation Health & Dental coverage & have the forms completed before retirement.
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 policy, that family member is eligible for Healthcare Continuation coverage if the Family policy ends for an employee who has less than 10 years of service. The family member should be given the Healthcare Continuation form. found on the Continuation Web Page.
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 at age 62, 3 years early, their 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 health benefits and the employee retires before age 65, the employee can continue the health 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). The employee will 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.
You can probably answer most of the basic retirement questions, but the retiree is welcome to call the CBIZ Archdiocese Service Team anytime (see contact information at the bottom). Because of privacy laws, CBIZ cannot discuss retirement details with the spouse or a relative unless there is a signed Power of Attorney or we are give permission by the employee.
RETIREMENT EMPLOYEE HANDOUTS:
RETIREMENT PLAN EMPLOYEE HANDBOOK
Lay Pension Administrator
Toll Free Phone # 866-715-1354
KC Local # 345-0500
ask for the Archdiocese Pension Group