Applying for Retirement

Ready to retire? Remember that the transition from career to retirement includes not only financial planning and lifestyle changes, but also paperwork. When TRSL receives a retirement application, a process is set into motion that can take several months to complete. Members sometimes forget to plan for the time between applying for retirement and receiving a finalized benefit check, and it can be a financial strain if steps haven't been taken to prepare. That's why TRSL recommends that members apply for service retirement four to six months in advance.

Why does it take so long? Before TRSL can finalize your retirement, we need certain information from all of your employers. Your current employer cannot certify your earnings and leave for the current year until after your employment has ended. Your contributions for the current year also need to be posted.

Initial processing

TRSL acknowledges your retirement application within two weeks of receiving it. If you do not receive an acknowledgement letter, call TRSL at 225-925-6446. We probably haven't received your application.

In four to six weeks, you should receive an estimated affidavit, which is a preliminary estimate (based on information currently on file at TRSL) of your retirement benefit for each of the available retirement options. Only after you choose an option and return the affidavit can TRSL establish the estimated amount of your retirement benefit.

Direct deposit, also known as electronic funds transfer (EFT), is mandatory if you retire on or after January 1, 2002. You must complete and submit a Direct Deposit of Benefits (Form 15D). The first estimated check will be sent to your home address, but subsequent payments must be made by EFT, unless a waiver has been granted. A waiver can be obtained by sending a written request to Randall Harrison.

You must be retired for a minimum of 30 days before being eligible to receive a benefit check. For example, if your retirement date is June 6, your payment can be set up for the August 1 benefit payroll if TRSL receives your completed affidavit by the first week of July. You will continue to receive estimated checks until all the necessary documents have been received and processed.

After the final benefit amount has been calculated, a process that usually takes four to eight months, TRSL will compute the amount of your retroactive benefits. This retro check will include the difference between your estimated checks and your final monthly amount plus any partial or whole months not paid after your retirement date.

An example

If you retired June 6 and received an estimated benefit check August 1 and September 1 for $2,000 each and your final benefit is $2,100, TRSL would owe you $4,049.93, which is calculated as follows:

June 6-Sept 30 = 3.8333 months
3.833 months x $2,100 = $8,049.93
$8,049.93 - $4,000 = $4,049.93

A retro check is issued in this amount. Then, your next retirement payment would be the final monthly amount of $2,100.

Using this example, it's easy to see that the first few months of retirement can be a financial strain. Any of the following problems can slow the process down even more:

• You file your application late or don't return the affidavit promptly
• Legal injunctions
• Delay in receiving certifications from employers

A little planning on your part can ease these problems. Here are a few tips to get ready for retirement.

Preparing for financial changes

Many retirement advisors suggest cutting costs gradually as retirement approaches to see whether you'll be comfortable on a tighter budget. For example, you might pretend for awhile that you're retired by adjusting your budget for less income.

While you're still working, save about three months of earnings for the first few months of retirement.

A timetable for TRSL retirement

Two to three years before retirement

1. Request a printout of your years of service with TRSL. This can be done by calling 1-877-ASK-TRSL (1-877-275-8775) and pressing "4" for the active member menu.
   
2. Complete any necessary purchases or transfers of service well in advance of applying for retirement.

One to two years before retirement

1. Request an estimate of your retirement benefits by sending TRSL a completed Benefit Estimate Request (Form 10). You may also ask your employer to certify your employment history with TRSL. You can also obtain an unofficial projection of your retirement benefits by using TRSL's online calculator.
   

2. Be sure you have submitted the following documents to TRSL:
   -Copies of birth certificates for you, your spouse, and any option beneficiary.
   -Copies of Social Security cards, as issued by the Social Security Administration, for you, your spouse, and all named beneficiaries.
   -Certified copies of legal separation or divorce papers, including community property settlements.
   -Copy of spouse's death certificate, if applicable.
   

3. Attend a one-day preretirement workshop in your area. Check the schedule of workshops here on the website or call 225-925-6582 for a seminar being held in your area.

Four to six months before retirement

Submit an Application for Service Retirement, ILSB, or DROP (Form 11) if you are entering DROP rather than retiring. If you are applying for service retirement, you must also submit a Direct Deposit of Benefits (Form 15D) to designate the financial institution that is to receive your funds. (Direct deposit is mandatory for retirements on or after January 1, 2002.)

Two weeks after applying for retirement

TRSL will acknowledge your application within two weeks of receipt. If you do not receive this acknowledgement, contact TRSL's Member Information Center (MIC) at 225-925-6446.

TRSL sends retirement affidavit

Once your application is processed, TRSL will send you an Affidavit of Retirement Option Election based on the most current information available to TRSL. The affidavit will list the benefit amount for each of the retirement options.

Wthin 15 days, return notarized retirement affidavit

1. Review your estimated affidavit, carefully select a retirement option, and return the affidavit promptly. Be sure to complete the federal income tax withholding information on the back. It is vitally important that this affidavit be completed, notarized, and returned to TRSL within 15 days of receipt. By selecting an option and returning the affidavit, you indicate under which option you wish to retire. This is a critical step in the retirement process. Remember that the option you select on your affidavit is irrevocable, no matter how your situation may change in the future!
   
2. If you are planning to leave the country after terminating employment and retiring, it is in your best interest to see that your affidavit is completed and returned before you leave.
   
3. If you are entering DROP, this affidavit must be returned within 90 days of receipt or 90 days after DROP participation has begun, whichever is later. If you do not return the affidavit within that time, you will be removed from DROP participation effective the date you began DROP. Then you and your employer will have to pay retroactive TRSL contributions for the time you did not contribute.

Take note

It is your responsibility to coordinate your date of retirement with your employer and to inform TRSL of any change before cashing or depositing a retirement check. Once you cash or deposit a retirement check, you are retired as of the effective date of your retirement application, and your retirement cannot be canceled.

Any earnings after the effective date of retirement are subject to the return-to-work laws.

Service retirement applications may be canceled before any benefit check is cashed, including estimated benefit payments. DROP participants may not cancel their DROP participation once the designated beginning DROP participation date has passed. You do, of course, end your DROP participation if you terminate all TRSL-eligible employment or die.

TRSL's booklet Planning for Your Retirement may be helpful if you're thinking of retiring. You can request this or any of our publications by contacting TRSL by phone at 225-922-2822 or by e-mail at web.master@trsl.org.