Your SPTRFA lifetime pension benefits, paid at retirement, are earned throughout your career with St. Paul Public Schools. You make biweekly payroll deductions to help fund those benefits.
Good news: Beginning with the 2015 – 2016 school year, the value of your pension benefits will increase as a higher multiplier takes effect. You will see this change reflected in your June 30, 2016 SPTRFA annual statement.
To pay for this benefit increase, your contribution rate will adjust to 7% on July 1, 2015, and 7.5% on July 1, 2016. Contribution rate increases will be shared with the District through 2017.
Are you retired and returning to work?
What you need to know about the Break In Service rule.
In order to have a right to receive your retirement benefit from SPTRFA, Minnesota law requires a “complete and continuous separation for 90 days from employment in any form with Independent School District No. 625.” Importantly, “employment” for this purpose includes “service provided to the school district as an independent contractor or as an employee of an independent contractor.”
Under this rule, for example, employment with Teachers on Call for service as a substitute teacher in District 625 within 90 days of your final date of employment with District 625 would result in a failure of the Break in Service rule. Please be advised that Minnesota law requires the SPTRFA to recover, with interest, amounts received by a member who fails to satisfy the Break in Service rule.
Are you over age 50 and retiring in the near future? View your member estimate mailed in April for an estimated benefit.
Estimates were mailed on April 3 to those SPTRFA members actively working at least 50% full-time equivalency with Saint Paul Public Schools, vested with 3 years of service credit, and at least 40 years of age (as of June 30, 2014.)
The projected gross monthly pension values on the estimate assume continued employment with SPPS until July 1st of each year listed, as well as a projected salary increase of 1% occurring every school year. It is important to note that any final benefit is contingent upon actual service and salary with the Saint Paul Public Schools and Minnesota laws and statutes effective at the time of retirement.
Once you review your estimate, if you wish to update your record with new beneficiaries you may do so by returning the Designation of Beneficiary form to the SPTRFA office by fax or mail. If an error was found please contact the office by submitting an email to email@example.com with your Full Name and DOB and a staff member will reply within 1-3 business days.
Thinking of Retiring in 2015-2016?
If you are retiring at the end of school year 2015-2016, we are giving you first priority for a one-on-one appointment with our pension benefit counselors. We strongly encourage you to meet with us prior to submitting SPTRFA application documents.
Before your appointment gain an understanding of the pension benefit application process using the links below:
Important Reminder: You must complete all SPTRFA Retirement Application paperwork and provide the required documentation prior to receiving your pension benefit.
St. Paul Teachers’ Retirement Fund Association invites you to read the Winter 2014 Newsletter!
- Memo to our Members from the Team at SPTRFA
On behalf of the entire SPTRFA Staff and our Board of Trustees, we want to thank each of you for your service in support of educating our future leaders and citizens. We are pleased to report that your Fund ended the 2014 fiscal year with assets of $1,045,435,000 and an 18.5% (net) return on investments, significantly exceeding our annual return target of 8%
- Retirement: Ready or Not
One of our goals is to provide you with educational tools to prepare you for retirement. This newsletter includes the first installment of our “Recommended Financial Reading” section. We’ve also included a section that explains the differences between a defined benefit and a defined contribution retirement plan.
- An Overview of New GASB rules for Public Pension Plans
New accounting rule changes for reporting public pension costs from the Governmental Accounting Standards Board (GASB) will be implemented in 2014-15. These GASB changes will require that school districts and other local governments, such as cities and counties, show their share of pension costs on their balance sheet.
NIRS study indicates defined benefit pensions plans are the most the economically efficient retirement plan – costing up to 48% less than 401(k) plans;
Read more the new analysis from the National Institute on Retirement Security (NIRS) online. NIRS is a non-profit, non-partisan organization established to contribute to informed policymaking by fostering a deep understanding of the value of retirement security to employees, employers, and the economy as a whole.