Countdown to Retirement

We hope that you find preparing for your retirement an exciting and gratifying experience. You may want to refer to this list every few months to ensure you are on track for meeting your retirement date goals.

24 months to retirement

• Login to miAccount and review your service credit totals for accuracy. Consider whether any credit for military or other service is available.
• Review your current living expenses and project what these will be at retirement. Will your income from all sources cover your projected expenses? Click on Ready to Retire for financial things to consider.
• Anticipate new or recurring expenses (car, medical, home repairs) and perhaps take care of some of these before you retire.
• Evaluate your other investments. Think about how, and when, you plan to draw your savings, deferred compensation funds, and other retirement accounts. When will these funds be available? What are the withdrawal options: lump sum or recurring payments? ING can tell you payout options and tax ramifications. You can also consult a financial advisor who can help you gauge how long your savings might last into your golden years, and maybe even tell you how to minimize taxes and make your money go further.
• Will you be eligible to receive Social Security benefits from previous employment? If so, request an estimate from the Social Security Administration.
• Consider your tax situation. Your pension is subject to federal income tax (except for any portion of the pension representing personal contributions or service credit purchases made with post-tax dollars). Federal taxes will be withheld from your pension according to the withholding instructions you give us when you retire. Your pension is exempt from Michigan and local income taxes. If you live outside of Michigan, you should check the state and local income tax regulations in your area.

18 months to retirement

• Research medical insurance for your family and verify your postretirement eligibility. Consider:
  • State-sponsored plan.
  • Medicare supplement.
  • Spouse's employment. Will you be able to continue coverage in the event of your spouse's retirement or death?
• Will you still need individual disability coverage? Ask your insurance provider if there is an offset provision for other income received.
• Consider long-term care insurance that may help you and your family with costs associated with prolonged nursing home stays, extended home care services and other forms of daily care.
• Evaluate your life insurance needs in comparison to your coverage and consider any conversion rights. In retirement, your state-sponsored life insurance continues at no charge to you. Your coverage level is 25 percent of the coverage you had as an active member. You may also choose to continue your ReliaStar coverage at your cost.
• Review your estate plan and make sure your will, trust, and powers of attorney are up to date. Understand how your assets pass to others under Michigan law.
• If you are buying service credit using a plan-to-plan transfer (rollover), be sure you're on target with your rollover institution to fully complete the payment before you terminate employment.

12 months to retirement

• Put the finishing touches on your financial plans.
• If you are eligible, request an updated estimate from the Social Security Administration.

6 months to retirement

• Download or request a retirement application from ORS.
• Read through the medical, dental, and vision plan information to learn what benefits are available to you and your dependents in retirement.
• If you have any questions after you've reviewed our materials, ask an ORS representative by using the secure message board in miAccount.
• If you divorced while an active or deferred member, the court may order that a portion of your pension be paid to an alternate payee such as your former spouse or dependent child. The order (known as an eligible domestic relations order, or EDRO) must contain specific information in a specific format, and must be on file with ORS prior to your retirement effective date. Details and sample language can be found in the ORS publication Eligible Domestic Relations Orders (EDRO) (R259X). The EDRO Act doesn't apply to a divorce after retirement. Note: A former spouse is not eligible for insurance benefits.
• Gather any proofs and supporting documents needed to apply as described in the How to Apply section.

3 months to retirement

• Review the health insurance plans offered and decide on a plan.
• Notify your human resource office of your intention to retire.
• File your application and any other forms with ORS.

Retired at last!

• ORS will send you an award letter. It explains what happens next and things that you should report.
• Watch for your pension payments on the 25th of each month.
• Enjoy reading Connections, a semiannual newsletter we send to our retirees so that we stay connected.