Retirement Planning

Retirement 101

So, you're thinking about retiring. Congratulations! We know that making the decision to retire is not an easy one. That is why we are here to help every step of the way. We encourage you to utilize the checklist below and the tabs above to help guide you through the process. Thank you for all your hard work and contributions to helping Austin Peay State University thrive.

The 2024 Straight Talk About Retirement webinar wil be available until December 31, 2024.

2024 Straight Talk About Retirement

The State of Tennessee provides benefits-eligible faculty and staff who meet certain age and service requirements access to various benefits in retirement. Per the state's plan:

For individuals who terminate employment, one of the following conditions must be met for continuation in the plan:
- The retiree must have at least ten (10) years of employment with the employer, with three continuous years of insurance coverage in a state-sponsored insurance plan immediately prior to final termination for retirement.
- The retiree with 20 or more total years of employment with the employer with one year of insurance coverage in a state-sponsored insurance plan immediately prior to final termination for retirement.

Retirees whose first employment with the state commenced on or after July 1, 2015, will not be eligible to continue insurance coverage at retirement and will not be eligible for special enrollment under this provision, unless that retiree was also employed by the state or a participating local education agency before July 1, 2015, and did not accept a lump sum payment from the Tennessee Consolidated Retirement System before July 1, 2015.

To review the entire plan document, visit here.

Schedule a counseling meeting with your retirement advisor to discuss your benefit payment options, Social Security options, and account balances.
Create a monthly retirement budget.
- This will help you decide if you'll need to increase your contributions in your last few years of working.
Consider your eligibility for 401(k)/457(b) catch-up contributions.
- Members age 50 and over at the end of the calendar year may make additional contributions above the annual contribution.

Apply for your Social Security benefits when you become eligible and desire to activate this benefit. To do so, you must file a separate application with the Social Security Administration. You can find this application here: https://www.ssa.gov/benefits/retirement/
Determine the source of medical insurance for you and your family post retirement.
- If you have worked for the State of Tennessee for at least 10 years and you started working for the state of Tennessee or a participating local education agency for the first time prior to July 1,
  2015, you are eligible to continue or enroll in health and vision insurance at retirement, provided you did not accept a lump-sum payment from the TCRS before July 1, 2015, and that you satisfy all other eligibility requirements.
  - If you are under the age of 65 at your retirement, you'll be able to continue in health, dental, and vision as a retiree. Please note, if your spouse is over the age of 65 and they are currently covered under your insurance plan at APSU, they cannot enroll in the Tennessee Plan until you, the retiree, becomes Medicare-eligible.
  - If you are over the age of 65 at your retirement, you'll be able to continue in dental insurance and you can enroll in the Tennessee Plan (POMCO), which is a supplement to Medicare. Medicare would be your primary health insurance and you'd be responsible for finding vision coverage.
  - If you plan on continuing insurance as a retiree, you'll need to complete the Application to Continue Insurance at Retirement prior to your last day of work.
  - For information about enrolling in Medicare, please visit here.
Submit your intent to retire with the effective date to your department. Make sure to copy Human Resources.

Report changes or make updates to your address, direct deposit, and tax withholdings as needed with your retirement vendor (TCRS or the ORP).
After you reach age 72, or 70 1/2 if you reach 70 1/2 before January 1, 2020, you are required to start withdrawing money from your traditional 401(k) or 457(b) account. For more information, visit here.
You will maintain many perks as a retiree of Austin Peay State University. For a full list of perks, review the Retiree Perks tab.

Accrued Annual Leave: Upon termination of employment with the University, an employee shall be paid for all accrued but unused annual leave. Upon retirement, payment shall be, at the option of the employee, either by terminal leave or by lump sum payment. Terminal leave is that period during which an employee remains on the payroll beyond their last working day until all of their accrued annual leave has been exhausted. If a retiring employee elects terminal leave, the date on which their annual leave is exhausted shall be the official date of retirement. For more details regarding the University's leave policies, visit here.
Accrued Sick Leave: If you are a member of TCRS, your unused sick leave will transfer into creditable service. Every 20 days of unused sick leave will equal one month of creditable service with TCRS. If you are an ORP member, your sick leave will stay in your bank or you can donate the balance to the sick leave bank if you are a member.
Change of Address: Please notify the Office of Human Resources at humanresources@apsu.edu or by phone at (931) 221-7177 if you move after retirement.
Contribution Limits: The 2023 contribution limits are as follows:
- 401(k): $22,500; catch-up contribution of additional $7,500. Please note the maximum is an aggregate total of the 401(k) and 403(b).
- 457(b): $22,500; catch-up contribution of additional $7,500.
- 403(b): $22,500; catch-up contribution of additional $7,500. Please note the maximum is an aggregate total of the 401(k) and 403(b).
Life Insurance: You will be able to continue life insurance on a direct bill basis. You will receive a letter in the mail prior to your loss of coverage explaining the coverage and premium levels. If you do not receive this letter, please contact us as soon as possible.
University Property: You must return all University property during your clearance meeting. This would include your laptop, keys, and ID card. These items should be turned into HR, not left with your department.
W2: If you cannot access your electronic W2 upon retirement, please email payroll@apsu.edu with three pieces of identifying information in order to receive a copy.

TCRS Members

Here are some steps to take as a TCRS member to prepare for retirement:

Before anything else, you'll want to request a benefit estimate by calling (800) 922-7772. This will give you an estimate of what your benefit will be when you retire. To expedite the process, you can ask for your estimate to be sent via secure email.
Once you have your benefit estimate, you'll want to schedule a counseling meeting with a RetireReadyTN Plan Advisor well in advance of retiring. During the counseling session, you will review your benefit estimate, payment options, review your 401(k)/457(b) account balances, and discuss how to execute your retirement plan.
- To schedule the counseling meeting, call (800) 922-7772.
Once you meet the TCRS retirement eligibility requirements, you can apply for retirement online by logging into Self-Service at MyTCRS.com. You'll need to submit the application at least 90 days prior to your last day of work!
- To complete the application, you will need to have the following:
  - The social security number(s) for you and your beneficiary(s).
  - Bank routing and account number for establishing your direct deposit.
  - Tax withholding information - determine if you would like your taxes withheld, and if so, the desired number of allowances you wish to claim or the percent/dollar amount you wish to be withheld.

You are a member of the TCRS Legacy Plan if you were hired prior to July 1, 2014. Being a Legacy member means:

You are non-contributory; meaning, your contributions have been paid through Austin Peay or your previous state institution.
There is a five year vesting period.
You can draw from your full retirement once you have 30 years of service or are 60 years of age and vested. A vested member becomes eligible for reduced early retirement benefits upon attainment of age 55.
There is voluntary participation in the 401(k) and 457(b); there is no automatic enrollment in these programs.

You are a member of the TCRS Hybrid Plan if you were hired on or after July 1, 2014. Being a Hybrid member means:

Members are contributory to TCRS at 5%.
There is automatic enrollment in the 401(k).
There is a five year vesting period for TCRS and immediate vesting into the 401(k).
You can draw from your retirement at age 65 and vested or by meeting the rule of 90 (years of service + age = 90). A member becomes eligible for reduced early retirement benefits upon attainment of age 60 and completion of five years of creditable service or the Rule of 80 (years of service + age = 80).

ORP Members

Prior to retiring, you'll want to contact your ORP vendor(s) to discuss your account balances, your retirement budget, and if you need to make any changes to your contributions prior to retiring.

Austin Jefferson

ajefferson@tiaa.org

(615) 783-2956 ext. 25-2956

www.tiaa.org

To schedule a meeting please select: Schedule Meeting

Timothy Tubbs

Timothy.Tubbs@tiaa.org

865-347-5011

www.tiaa.org

Michael V. Biggs, ChFC, CLU, MBA

michael.biggs@equitable.com

(931) 245-5480

https://www.voya.com/

Healthcare Premiums

The healthcare options upon retiring from Austin Peay State University are based on the retiree's age:

Under age 65
Age 65 and older

Employees under the age of 65 at the time of retirement, who meet the eligibility requirements for the State of Tennessee, may elect to participate in a retiree medical plan for oneself and one's eligible dependents. If you started working for the state of Tennessee or a participating local education agency for the first time on or after July 1, 2015, you are not eligible to continue or enroll in health and vision insurance at retirement. If you started working for the state of Tennessee or a participating local education agency for the first time before July 1, 2015, you will not be prohibited from continuing or enrolling in insurance at retirement, provided you did not accept a lump-sum payment from the TCRS before July 1, 2015, and that you satisfy all other eligibility requirements. Retirees could enroll in health, dental, and/or vision at this time.

If you are currently covered under APSU's health insurance, you can delay enrolling in Medicare Part A and Part B and you won't have to pay a lifetime late enrollment penalty. Once your employment ends at APSU, you have eight months to sign up for Part B without a penalty.

Upon attainment of age of 65, the retiree would move to Medicare as the main healthcare provider and would need to search the independent marketplace for vision coverage. The retiree could continue on the state's dental plan and/or enroll in the Tennessee Plan (also known as POMCO) at that time.

Approximately three months prior to turning 65, retirees and/or their eligible spouse should enroll in Medicare Parts A, B, and D. Contact the Social Security Administration (SSA) at 877-531-4695 or visit the SSA website.

Employees 65 years of age or older at the time of retirement, who meet the eligibility requirements for the State of Tennessee, can continue dental insurance and/or enroll in the Tennessee Plan. Vision coverage would need to be found through the independent marketplace. Medicare would be your primary health insurance provider.

Approximately three months prior to retiring, retirees and/or their eligible spouse should enroll in Medicare Parts A, B, and D. Contact the Social Security Administration (SSA) at 877-531-4695 or visit the SSA website.

The Tennessee Plan, also called POMCO, is one of the options for Medicare Part C. This is a supplement plan that helps to cover the out of pocket costs not covered by Medicare. More information about The Tennessee Plan can be found here.

Application to Continue Insurance at Retirement: Needed to continue insurance as a retiree for health, dental, vision, and/or the Tennessee Plan. If applicable, return form along with any dependent documentation and your Medicare card.
Enrollment Change Form: Needed from your eligible spouse if you, the retiree, are planning to be added to their insurance plans upon your retirement and the spouse is an APSU employee.

Medicare 101

You qualify for social security by earning "credits" when you work and paying social security taxes. You need 40 credits (10 years of work) and be at least age 62 to draw social security benefits.

If you are currently covered under APSU's health insurance, you can delay enrolling in Medicare Part A and Part B and you won't have to pay a lifetime late enrollment penalty.

To contact the local Clarksville Social Security Administration office, dial (877) 531-4695.

Another helpful resource is TN SHIP (State Health Insurance Assistance Program) for Medicare Participants.

Another useful guide to see the comparison between traditional Medicare and the Medicare Advantage plans can be found here.

Medicare Parts	Explanation
Medicare Part A	This covers the hospital insurance. There is no premium for this coverage. You can enroll once you turn 65 years of age, regardless if you are covered by APSU health insurance. When you're eligible for premium-free Part A, you can enroll at any time after you're first eligible for Medicare. Your Part A coverage will go back (retroactively) six months from when you sign up (but no earlier than the first month you're eligible for Medicare). Most individuals get premium-free Part A. For more information click here.
Medicare Part B	This covers your doctor visits. Medicare should cover 80% of your visits so you'll want to look at a supplemental plan to help cover the difference (See Part C). There is a premium associated with this plan. The premium is based on your gross income. See this page for assistance. Once your employment ends at APSU, you have eight months to sign up for Part B without a penalty.
Medicare Part C	Medicare Advantage Plus is one supplement option. The Tennessee Plan (POMCO) is another option. There is a premium associated with this plan. With POMCO, the state pays a portion of your premium based on your years of service with the State of Tennessee. To view The Tennessee Plan premiums, visit here.
Medicare Part D	This covers your prescription drugs. There are many options based on what prescriptions you need covered so we recommend looking for the right option ahead of time. There is a premium associated with this plan. For more information, visit here.

Retirees of the University are entitled to the following perks:

Austin Peay State University identification card for retiree.

E-Mail – Retirees may receive a new email address pattern of first.last@apsu.edu upon request by the retiring employee. Access to the retiree email may be granted up to 30 days prior to retirement, and the active employee email will automatically forward to the new email address for 6 months following the retirement date. Passwords must be changed every 90 days and multi-factor authentication (MFA) will be required. For more information on setting up MFA, please visit: https://govstech.apsu.edu/TDClient/2071/Portal/KB/?CategoryID=23561.

Use of Library - Retirees enjoy many of the same services that current faculty and staff receive for the Library. These services are described on the Library’s website: http://library.apsu.edu/.

Use of Recreational Facilities - Austin Peay State University retiree identification card permits the retiree, spouse, and dependents to use the outdoor tennis courts. The retiree, spouse, and dependents may use facilities in the Foy Fitness Center such as racquetball courts, weight room, etc. The retiree pays no monthly fee. The spouse and dependents may use the facility at the same rate as those of current employees.

Parking Permits - Retirees may obtain a retiree virtual parking permit by logging into the APSU parking portal https://apsu.aimsparking.com/. The login is the APSU single sign on. The retiree parking permits are valid in 5-year increments. The physical decals provided in previous years are still recognized as valid permits.

Tickets to Athletic Events – The retiree will be provided 2 season tickets in general seating at the same rate as current faculty and staff.

Tickets to University Sponsored Concerts - Retirees will receive tickets at the same rate as current faculty and staff to University sponsored concerts and other University functions.

Post Office Box - A box will be furnished upon availability at the current rate charged to current faculty and staff.

Bookstore Discount – A discount of 20% is available at the Anne Ross Bookstore. Exclusions apply, including but not limited to textbooks and sale items.

Free Notary Services – The Office of Human Resources will provide free notary services by appointment to all retirees. A photo ID is required, and the document must be signed in front of a Notary.

Meal Plans – Sodexo meal plans will be available to retirees at the same rate available to current faculty and staff.

The All State - Current retirees may receive The All State upon request made at retirement. The All State is located online, on campus, and in the community.

APSU Retirees Association – A one-year free membership in the APSU Retirees Association is available for the fiscal year (July to June) immediately following retirement. Retirees must complete and submit a membership form to the APSU Retirees Association. Thereafter to retain membership the retiree is responsible for membership dues at the current rate.
Bus Pass – A bus pass may be requested and issued to the retiree to ride the Clarksville City Transit for no cost. Contact the Office of Human Resources in order to obtain a pass.