Licensed EmployeesTier 2

Davis School DistrictBenefits Orientation

If you were newly hired into a retirement eligible position (20 hours or more per week) at any Utah Retirement Systems (URS) employer on or after July 1, 2011 you are on Tier 2. If you were hired into a retirement eligible position before July 1,

2011 your are on Tier 1 and will want to view that presentation.

Welcome Educators – Tier 2

The members of the Payroll Department are always happy to answer your questions. Feel free to call us anytime at (801)402-5282.

This orientation will cover your Leave, Retirement Benefits, Flexible Spending, etc. If you are eligible for Insurance coverage (working 30+ hours per week) the Human Resources/Insurance Department will notify you of those benefits.

Everything covered in this orientation is current policy. Things can (and do) change all the time. Make sure you stay informed about District and State policy updates that might affect you.

Before We Begin

Less than 15 years of experience*: 2 days of PLA will be accrued each year

15 or more years of experience*: 1 additional day of PLA will be accrued

A maximum of 30 PLA days can be carried over

A maximum of 10 PLA days can be used per school year

PLA is accrued at the beginning of each fiscal year (July 1st)

*As determined by the Teacher Salary Schedule

Personal Leave (PLA)

First 3 FULL years of employment*: 7 days of Sick Leave will be accrued

Beginning with the 4th year*: 10 days of Sick Leave will be accrued

Sick Leave balances will carry over from year to year. There is no maximum.

Leave accrual begins on July 1st every year and continues each month until all leave for the year has been accrued.

* If you don’t work a full contract your first year of employment, your leave will be prorated and that year will not count as a full year for leave accrual purposes.

Sick Leave

Notify Human Resources in writing if you will miss more than 10 consecutive contract days.

Catastrophic Sick Leave Bank: Enroll during Open Enrollment

Employees who wish to participate must donate 1 day of Sick Leave every contribution year (whenever the Sick Leave Bank is low). Employees who would like to start participating during a non-contribution year must donate

1 day of Sick Leave to initiate eligibility

Only participating employees will be eligible to request Catastrophic Sick Leave from the Sick Leave Bank for a catastrophic event (after all Sick Leave and Personal Leave has been used). All requests for Catastrophic Leave must be submitted to Human Resources in writing

For more information, see the Davis Educators’ Agreement

Extended Leave

Advanced Leave Requests Sick Leave – Employees can request an advance of up to 5 days per school year

Personal Leave – Employees can request an advance of up to 5 days per school year, which can be paid back with one and a half days of Sick Leave (per day advanced) 1 Day of Advanced Personal Leave = 1.5 Days of Sick Leave

Family Medical Leave Act (FMLA) Employees can request a leave of absence of up to 12 calendar weeks (in a 12 month

period: Protects your job during your absence The District will continue to pay its portion of your Insurance premium (if applicable) Must have regularly worked a minimum of 20 hours per week for the District for the

previous 12 months

For more information, see the Davis Educators’ Agreement

Extended Leave (cont.)

Flexible Spending Account Set aside pre-tax dollars to pay for qualifying medical/dental and daycare expenses not

covered by Insurance. Benefits:

It’s an automatic Payroll deduction Reimbursement Claims can be submitted anytime You have full access to your annual healthcare contribution anytime The NBS “Flex Card” (optional) works just like a credit card!

Have immediate access to your Flex funds without submitting claims• There is an $18 charge for the card per tax year

If you have questions about Flexible Spending, please call Elizabeth in Payroll at (801)402-5236

National Benefit Services1-800-274-0503 or 801-532-4000

www.nbsbenefits.com

What you need to know: As a NEW HIRE you can enroll in Flexible Spending for this year within 30 days of your hire date,

which is your first contract day. If you would like to enroll in Flex for next year you will need to enroll during Insurance Open Enrollment, which is usually in November. You have to re-enroll in the Flexible Spending plan every year during Open Enrollment Flex is based on the tax year (January 1st to December 31st)*

There is a “Grace Period” that allows participants to incur additional expenses until March 15th of the next tax year if necessary.*

Keep your receipts, even if you are using the “Flex Card”.

All funds need to be claimed through NBS by the last BUSINESS day in March of the next tax year.*

Don’t overestimate your expenses: Use It or Lose It: If you don’t claim the money you have contributed by the deadline … you WILL lose it.* Contribution amounts cannot be adjusted unless you have a qualifying change of status.

*These deadlines may be different if you resign or retire in a year when you are enrolled in Flexible Spending. Please

contact Elizabeth in Payroll at (801) 402-5236 if you have any questions.

Utah Educational Savings Plan –Utah’s 529 College Savings PlanCollege is hard, but saving for it doesn’t have to be.

UESP makes it a cinch to start saving for college. Does not require a minimum deposit or balance

Stretch your educational dollars AND receive some wonderful tax incentives

Get more information or open an account online at www.uesp.org or call UESP at 1-800-418-2551.

Investments in UESP are not guaranteed.

Utah Retirement SystemsChoose Your Path

Hybrid PlanTwo Parts: 10% Retirement Package

Pension Guaranteed lifetime benefit Basic benefit is based on a formula:*

Years of Service x 1.5% x Average of 5 highest years) = Basic Annual Benefit

Minimum age and service requirements* You are fully vested after 4 years of

eligible employment

*See “How Much Will My Pension Pay?” and “When Can I Retire?” for more information on the Pension.

401(k) 10% of salary will be split between the

Pension and the 401(k) The “Contribution Rate” goes to the

pension The difference between the contribution

rate and the 10% employer contribution goes to the 401(k)

4 year vesting = Manage investment options after 4 years During the 4 year vesting period funds will

be invested in the Medium Horizon Fund.

+

Hybrid Contribution Rates2013-2014

Employer Contribution

Pension Rate

=401(k) Contribution

10% 8.41%

=1.59%

Hybrid Contribution Rates

Employer Contribution

Pension Rate=

401(k) Contribution

Example 1 Example 2

10%

8.1%=

1.9%

10%

11%=

0%

Employer Contribution

Pension Rate=

401(k) ContributionEmployee Contribution =

1.0%

Possible Employee Contribution:If the contribution rate ever exceeds 10%, the employee pays the difference.

How Much Will My Pension Pay?

Pension Benefit Calculation

Number of Eligible Years of Service

X

1.5%

X

Average Salary

(average of 5 highest years salary)

=

Basic Annual Benefit

/12

=

Basic Monthly Benefit

Example

35 Years

X

1.5% (=52.5%)

X

$40,000

(average of 5 highest years salary)

=

$21,000/year

/12

=

$1,750/month

When Can I Retire? Your pension eligibility depends on

your age and years of service. Here are the minimum qualifications: 65 with at least 4 years of service

62 with at least 10 years of service*

60 with at least 20 years of service*

Any age with at least 30 years of service*

(only with service purchase)

Any age with at least 35 years of service

*There is an early age reduction if you retire under age 65 with fewer than 35 years of service

Early Age ReductionIf you have fewer than 35 years of service credit and retire before age 65, your monthly benefit will be reduced by approximately 7% for each year between the ages of 60 and 63 and approximately 9% for each year between the ages of 64 and 65.

Defined Contribution Plan 10% of salary will be contributed to the 401(k) each month

4 year vesting period

You can choose the investment options after 4 years During the 4 year vesting period funds will be invested in the Medium

Horizon Fund.

Amount of Money Received at Retirement is Based On: Contributions Investment Performance Payout Period

Which Plan is Right for You?Hybrid

Guaranteed monthly income for life (Pension payment)

Lower risk Professional investment managers Cost of living adjustment (COLA) Possible 401(k) contribution if pension rate

is below 10% Required contribution if rate ever exceeds

10% Guaranteed monthly payout options for

spouse

Defined Contribution Not guaranteed - Your income is based on

investment performance Higher risk You manage your investments No COLA Full 10% of your salary will be contributed to

your 401(k) You will never be required to contribute to

the plan Pass on 401(k) balance to spouse or other

beneficiary(ies)

All 401(k) investments will default to theMedium Horizon Plan for the first 4 years.

After the 4 year vesting period you will be ableto choose where your contributions are invested.

Please see the URS “Investment Options” brochurefor more information on your different options.

Consider the advantages and disadvantages of each plan

Choose your plan at www.urs.org

You have one year from your hire date to decide which plan you want You can change your mind anytime during the first year After one year you cannot change plans!

Choosing Your Path

If you do not choose a plan within the first year, your plan will default to the:

HYBRID PLAN!

401(k)

457

403(b) – Annuities

Traditional IRA

Roth IRA

You can contribute to none, one or more. The choice is yours.

Employee Contributions (Voluntary)

11

22

33

44

55

Consider your tax bracket before and after retirement:Pre-tax Deductions

Lower your taxable income now• 401(k)• 457• 403(b)• Traditional IRA

Post-tax Deductions Pay your taxes now

• Roth IRA (Tax free growth)

Which Investment PlanShould I Choose?

For a complete listing of the Annuity companies and representatives that are authorized to provide 403(b)’s and other

investment options to Davis School District employees, please contact the Payroll Department at 801-402-5282.

Authorized Annuity Companies

www.urs.org

If you have questions about the URS website or online

enrollment, call 801-366-7750

The URS website has a lot of information available on the two Tier 2 plan options to help you choose the best plan for YOU.

Your Account Number will be included with your URS Enrollment Packet ,which URS will mail to your home.

Once you have made a plan selection you can come to this screen to change your selectionANYTIME prior to the deadline, which will be reflected above in the (DATE) field.During your first year you will be defaulted to the Hybrid Plan for the full year –

even if you have selected the Defined Contribution Plan.Once your deadline has passed URS will get you permanently set up in the plan of your choice.

Call Payroll: (801) 402-5282

Questions?

Personal Leave and Sick Leave Twyla: (801) 402-5326

Extended Leave and Catastrophic Leave

Marilyn: (801) 402-5327

Flexible Spending Elizabeth: (801) 402-5236

Retirement and 401(k) Holly: (801) 402-5176 Cindy: (801) 402-5324

Thank You!If you would like step-by-step

instructions for accessingMyDSD Payroll Management(where you can enter your

Direct Deposit and W-4 information, make changes to Payroll and Personal Profile information, and view/printyour pay stubs and W-2’s),

please see theMyDSD Payroll Management

Orientation.