OPERS Retiree Newsletter

OPERSNEWS Fourth Quarter 2018 News and information for retired members of OPERS.

Get

for

2019

Open Enrollment is behind us and January is right around the corner. We’ve made it easy for you to start the New Year off right. Here you’ll find important information to get you ready for 2019.

Ready!

2019 benefit payment dates Turn to page 2 for a list of benefit payment dates — snip it and clip it to the fridge. Or, you can call us at the end of any month and listen to the automated “Fast Facts” message for these important dates. Simply press 2 for “Fast Facts.”

Changes in your benefits Any time there is a change in your monthly benefit amount, we send you a Benefit Change Notice. You’ll likely receive one in January due to changes in health care premiums—it will also be viewable through your OPERS online account, usually a few days prior to the end of the month. If there are changes to the annual IRS tax tables (which affects your withholdings), another Benefit Change Notice will be issued in February.

2019 Health Care Premium Receipts Health Care Premium Receipts for 2019 were mailed to Medicare retirees with a Health Reimbursement Arrangement, or HRA, beginning Dec. 10. This receipt is required to set up recurring reimbursements for next year and will be provided within a special Get Ready for 2019 mailing. Beginning in mid-December, Via Benefits will mail personalized recurring reimbursement forms. Put the two mailings together and file for your reimbursements for 2019.

Changing your tax withholding Most retirees review their tax withholdings once they file taxes for the previous year. The best way to do this is through your online account, which allows you to see the impact a change will make to your net monthly benefit amount.

Tax documents OPERS will mail the 2018 1099-R and 1095-B documents by the end of January. If you would like to access them early, log into your OPERS online account. You can also access them through your online account up to a week before they are mailed.

Watch your mail, mark your calendar, set up reimbursements and be ready for 2019.

Get

for

2019

Ready!

Your 1099-R will not provide your health care deductions for 2018. This information is available by signing in to your OPERS online account and accessing your 2018 OPERS Health Care Premium Receipt.

OPERS members are evaluated for disability from their OPERS-covered position, not as a person who is permanently disabled as defined by the IRS. As such, if you are a disability benefit recipient, Box 7 on your 1099-R will have a code number 7 or 2 depending on your age. Your tax advisor may incorrectly indicate this code should be a 3.

OPERS News

Legislative update United States Representatives Kevin Brady (R-TX) and Richard Neal (D-MA) have recently introduced the Equal Treatment of Public Servants Act of 2018 (HR 6933) to restart the debate regarding reform of the Social Security Windfall Elimination Provision (WEP). Under the current WEP law, retirees who are eligible to receive a pension from OPERS, or another public retirement system, as well as Social Security for working a portion of their career in the private sector often see their Social Security benefit reduced based on a formula.

At this time, it is unclear whether there is a path forward for HR 6933 in the current Congress. With little time remaining in the session, passage would require considerable concessions from various interested parties. OPERS is working directly with Congressional staff in an effort to shape the development of HR 6933. We will continue to advocate for the best possible solution – for all of OPERS’ members.

For a more detailed discussion of this legislation, please visit opers.org and access the PERSpective Blog.

OPERS News is a quarterly newsletter providing news and information to retired members of the Ohio Public Employees Retirement System.

This publication allows us to communicate vital information concerning retirement benefits to our members.

This newsletter is written in plain language for use by members of the Ohio Public Employees Retirement System. It is not intended as a substitute for federal or state law, nor will its interpretation prevail should a conflict arise between it and the Ohio Revised Code, Ohio Administrative Code or Internal Revenue Code.

If you have questions about this material, please contact our office or seek legal advice from your attorney.

Contact information: opers.org 1-800-222-7377 Monday - Friday 8 a.m. to 4:30 p.m. newsfeedback@opers.org Connect with us on social media youtube.com/ohiopers1 facebook.com/ohiopers linkedin.com/company/opers twitter.com/ohiopers

OPERS benefit payments schedule

OPERS Board of Trustees For more information on the OPERS Board of Trustees, visit www.opers.org.

Pension benefit payments will be issued on the first business day of the month. If that day falls on a weekend or holiday, payments will be issued on the last business day of the previous month. The exception to this rule is in January when, for tax purposes, the payment must be issued on the first business day of the month.

- 2019 -

Wed. May 1

Tues. Oct. 1

Wed. Jan. 2

Fri. May 31

Fri. Nov. 1

Fri. Feb. 1

Mon. July 1

Fri. Nov. 29

Fri. March 1

Thurs. Aug. 1

- 2020 -

Mon. April 1

Fri. Aug. 30

Thurs. Jan 2

Elected Board Members Randy Desposito Non-teaching College/ University Employees

Statutory Board Members Robert Blair Director, Department of Administrative Services

Julie Albers County Employees

Appointed Board Members Vacant Investment Expert, Governor Appointee

Christopher Mabe Vice Chair State Employees Tim Steitz Retirees Cinthia Sledz Miscellaneous Employees Ken Thomas Board Chair Municipal Employees Steve Toth Retirees

Seth Metcalf Investment Expert, Treasurer of State Appointee James R. Tilling Investment Expert, General Assembly Appointee Karen Carraher Executive Director

2019 health care coverage reminders Reminders for Medicare participants

General reminders

Any changes made to your medical, prescription drug, or OPERS vision and/or dental plans during open enrollment are effective Jan. 1, 2019. If you have questions about your medical or prescription drug plans, call Via Benefits at 1-844-287-9945.

If you began receiving a disability benefit on or after Jan. 1, 2014, OPERS health care coverage is only available during the first five years of receiving a disability benefit.

To continue health care coverage through OPERS beyond this time period, you must enroll in Medicare due to a disability, or meet the minimum age and service requirements.

Health Reimbursement Arrangement Action needed: If you currently receive recurring reimbursement for Medicare Part B premiums, OPERS vision and dental premiums or premiums for plans that Via Benefits does not offer auto reimbursement, you must resubmit recurring reimbursement claim forms for 2019. These forms must be submitted to Via Benefits along with the required documentation.

No action needed: If you arranged auto reimbursement for plan premiums through Via Benefits for 2018 and you did not change plans for 2019, these arrangements will continue.

You can access your personalized reimbursement forms through your online Via Benefits account or call Via Benefits at 1-844-287-9945.

Reminders for pre-Medicare and re-employed participants Any adjustments made to your OPERS medical or optional vision and/or dental coverage during open enrollment are effective Jan. 1, 2019.

If you or your spouse enrolled in a plan outside of OPERS, you must terminate the OPERS plan or you will be charged the monthly premium. If your spouse enrolled in the Medical Mutual Pre-Medicare Plan and has found the premium amount to be too costly, they may cancel coverage at any point in the year. Spouses will not be retroactively reimbursed for premium and claim dollars spent during months they were covered under the plan.

Check with Medicare regarding your coverage eligibility.

Medicare enrollment can take up to two years. You may qualify for health care coverage through Medicare even if you do not qualify for Social Security disability insurance.

OPERS requires documentation within 30 days of receiving your Medicare eligibility confirmation from Social Security. Send us the Notice of Award letter from Social Security. This letter includes the date Social Security provided notification of eligibility and your Medicare Parts A and B effective dates.

You must provide notification of your Medicare eligibility within the 30-day time frame and you will be responsible for repaying OPERS the cost of claims incurred, dating back to your Medicare effective date.

OPERS Tip: Authorize a caregiver You can grant OPERS permission for a caregiver to have access to your OPERS account information by completing the Authorization: Release of Account Information form.

A separate HIPAA authorization form needs to be completed to release protected health information.

When completing the HIPAA Authorization form, you can choose which information you want to disclose to the third party you select (health care enrollment and coverage information, monthly premiums, HRA).

Additionally, Via Benefits may have different rules and forms for caregivers and guardians. You can contact Via Benefits directly for more information.

Medical Mutual changes preventive service coverage If you or your family members are enrolled in OPERS group medical coverage administered by Medical Mutual, and you use the in-network services listed below, you may have received notification about a change to your plan. While previously covered at 100 percent, effective Jan. 1, 2019, these services will be subject to a deductible and 75 percent co-insurance. With this change, the plan more closely aligns with the Affordable Care Act’s preventive services requirements.

• Blood glucose

• Electrocardiogram

• Cholesterol

• Urinalysis • Screening

screening screening

• Electrolyte panel • Complete blood count

(EKG)

proctoscopy

• Screening

proctosigmoidoscopy

• Comprehensive

metabolic panel

Check out Medical Mutual’s My Care Compare tool at medmutual.com. My Care Compare helps participants find the most cost-effective facility and provides more information about the coverage maximum which may apply to these services.

Accessing the Aetna vision program just got easier The Aetna Vision Preferred plan offers a network of thousands of private practice and optical retail locations to choose from including LensCrafters®, Sears Optical®, Target Optical®, JCPenney Optical® and most Pearle Vision® locations. Whether at home or on the road, you can find a provider with convenient hours and locations.

When you arrive at your appointment, present your ID card. No ID card, no problem – just provide your name and date of birth and the Aetna Vision Preferred provider will take care of the rest.

To find an Aetna Vision Preferred network provider near you, visit aetnavision.com, the Aetna Vision mobile app or call 866-591-1913.

Questions?

Contact Medical Mutual at 1-877-520-6728.

You can access an online version of your ID card using the Aetna mobile app or print your card from aetnavision.com.

Return Employment and Earnings Statement to avoid interruption of benefits and health care coverage For Disability Benefit Recipients Annually, OPERS disability benefit recipients are required to complete and mail to OPERS an Employment and Earnings Statement, even if work did not occur in the previous year. The statement allows disability benefit recipients to report any employment as well as total earnings, employer information and job descriptions. Only income from employment should be reported; spousal support, child support and volunteer service is not required information.

However, if you applied for Disability Benefits on or after Jan. 7, 2013, you are required to report any Social Security income.

In 2019, there will be a change to the Employment and Earning Statement process. The Employment and Earning Statement submission will be waived for disability recipients meeting one of the following criteria:

OPERS will mail Employment and Earnings Statements beginning Feb. 12, 2019. If you do not mail back the completed statement, a second notice will be sent on March 12, 2019.

Four tips for completing and submitting this form:

If OPERS does not receive your completed statement by April 15, 2019, your May disability benefit payment and subsequent payments will be suspended until we receive the form. In addition, if you do not provide this form, your Health Reimbursement Arrangement (HRA) monthly allowance and coverage for any dependents enrolled in OPERS health care coverage will be terminated as of May 1, 2019.

• A disability recipient who is under legal guardianship.

• A disability recipient who resides in a skilled nursing facility.

• A disability recipient is age 70 and older as of Dec. 31, 2017.

1. Provide your signature within the Member Acknowledgment and Authorization section.

2. Provide all requested employer notification (if employed in 2018) as noted/requested in Section three.

3. Provide the amount of total earnings within the Employment Information section.

4. Provide Social Security Disability Insurance (SSDI) declaration within the Social Security Disability Insurance Income section.

OPERS education seminars Retiree health care 65 and older This seminar provides retirees with health care funding information and helps them understand how to manage their Health Reimbursement Arrangement account.

Retiree health care under age 65 This seminar includes two presentations which provide retirees under age 65 with health care coverage and funding information, as well as information to help them prepare for their transition to the OPERS Medicare Connector.

An up-to-date schedule of meeting dates and locations can always be found within the Member Education Center at opers.org. Registration must be completed through your OPERS online account or by calling OPERS at 1-800-222-7377. Seating is limited.

Health Reimbursement Arrangement small group workshops OPERS offers 30-minute, hands-on HRA workshops facilitated by OPERS educators that guide small group participants through how to complete HRA reimbursement forms. These workshops are designed to offer assistance; it is still the individual’s responsibility to mail completed reimbursement claim requests. Watch your e-mail for workshops being conducted in your area.

Listen from your Living Room Log in to a live Transitioning to the Connector online webinar session or watch a variety of educational videos and recorded presentations. All videos and recorded presentations are found within the Member Education Center at opers.org.

Committed to a strong pension fund for current and future retirees Funding pensions is our first priority. In fact, in our more than 80 year history, OPERS has never missed a pension payment and we fully intend to continue this tradition.

How OPERS invests OPERS members and employers contribute funds toward OPERS pensions. The OPERS Investment Division invests and manages these assets, maintaining two separate portfolios: the Defined Benefit and Health Care funds.

How investing at OPERS works

1 2 3

Members pay 10 percent of their salary into OPERS and employers pay 14 percent of each member’s salary into OPERS.

With assistance from external consultants, the OPERS Board of Trustees approves the Annual Investment Plan and the portfolio’s asset allocation, which guides OPERS staff on how to invest.

OPERS staff invests the funds in a variety of asset classes and strategies, seeking to reach a target rate of return while minimizing risk.

4 5

The returns help OPERS pay pensions and provide health care coverage.

Checks and balances: The Board provides governance and oversight of OPERS investment activities through a set of 28 investment policies reviewed annually.

OPERS adjusts rate of return The assumed rate of return is the percentage that OPERS expects to earn on its investment portfolio each year. On the advice of independent financial experts and its own analysis, OPERS lowered its assumed rate of return for the Defined Benefit Fund and Health Care Fund.

Faced with declining market expectations, the OPERS Board of Trustees lowered the interest rate it expects to earn on long-term investments. A lower interest rate means OPERS must set aside more to pay future commitments.

Lowering the rate of return is expected to lower the funding level for OPERS’ liabilities and increase the time it will take to pay off those liabilities.

Assumed Rate of Return 7.5% 7.2%

6.5%

2017

2017

2018

Defined Benefit Fund

6.0% 2018

Health Care Fund

Individual vs. institutional investing You may have heard, or even thought to yourself...

Member and Employer Contributions vs. Pension and Health Care Payments

Why doesn’t OPERS earn a higher rate of return on its investments? The S&P 500 has averaged 10 percent since the 1920’s. Why does OPERS set their return expectation at only 7.2 percent?

$7.0B

There is a very good reason OPERS has set the assumed rate of return at 7.2 percent. Let’s talk about the difference between an individual investor and an institutional investor.

An individual investor is a person, such as yourself, investing their personal income. As an individual investor, your portfolio receives contributions and grows until you retire. At retirement, the account switches to pay-out status.

OPERS is an institutional investor. An institutional investor invests not only to pay future benefits, but current and continuous benefits, even as payouts sometimes exceed contributions to the fund. The OPERS portfolio must be designed to grow and distribute assets at the same time.

$3.4B

For example, in 2017, OPERS received approximately $3.4 billion in member and employer contributions. Also in 2017, OPERS paid out approximately $7 billion in pension and health care payments.

As you can see, we are paying out more than twice the amount that is received through contributions. The difference is made up through investment returns.

Even though we take in far less than we pay out, our investments staff does an excellent job growing our net assets and meeting our current obligations. The OPERS portfolio grew 41 percent from 2008 through 2017, but if we annualize that return its only 4.6 percent.

Contributions Pension & Received Health Care Paid

in 2017 OPERS paid out more than double the amount of contributions we received.

If you would like to view our specific investment plans and policies, you can find them on opers.org.

Click on OPERS Investments at the bottom left of the home page and then click on Investment Plans & Policies.

Ohio Public Employees Retirement System 277 East Town Street Columbus, OH 43215-4642

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Fourth quarter 2018

OPERSNEWS News and information for retired members of the Ohio Public Employees Retirement System.

Get

for

2019

Ready!

Open Enrollment is behind us and January is right around the corner. We’ve made it easy for you to start the New Year off right.