RETIREMENT

When Cops Retire.....

When a good man leaves the job and retires to a better life, many are jealous, some are pleased and yet others, who may have already retired, wonder. We wonder if he [she] knows what they are leaving behind, because we already know. We know for example that after a lifetime of camaraderie that few experience, it will remain as a longing for those past times.  We know in the law enforcement life there is a fellowship which lasts long after the uniforms are hung up in the back of the closet. We know even if he throws them away, they will be on him with every step and breathe that remains in his frame. We also know how the very bearing of the man speaks of what he was and in his heart still is.

These are the burdens of the job. You will still look at people suspiciously, still see what others do not see or choose to ignore and always will look at the rest of the law enforcement world with a respect for what they do; only grown in a lifetime of knowing. Never think for one moment you are escaping from the life. You are only escaping the job and we are merely allowing you to leave active duty.

So what I wish for you is that whenever you ease into retirement, in your heart you never forget for one moment that Blessed are the Peacemakers for they shall be called children of God, and you are still a member of the greatest fraternity the world has ever known.        Author Unknown

PLANNING FOR YOUR RETIREMENT: Retirement involves complex choices—DROP, health care, annuities. Please use this page to help plan for your retirement. OP&F encourages you to visit their offices for a one-on-one pre-retirement interview three to four months before your retirement date. During this interview, retirement counselors provide an overview of the retirement process, provide an estimate of your pension benefits, and explain the health care program currently available. You can also receive an estimate of your pension benefit that will be deposited in your DROP account should you elect to enroll in DROP in addition to providing you with an eight year projection of your DROP benefit.  This interview is rather enjoyable as the customer service representatives at OP&F go that extra mile to ensure that all your questions are answered and concerns addressed.  There is absolutely no obligation to make a decision at any time during or after your personal interview.  The pension system is there for you; use it to your advantage. They encourage you to bring along your spouse.  Make a day of it. After the interview, visit the police memorial adjacent to the OP&F building, and then have lunch in Germantown. Service Retirement and DROP interview appointments are available Monday through Friday at 9:00, 1:00 and 2:00. Disability appointments are available at 11:00 only. Parking is provided at no charge. You should plan to spend approximately two hours in the interview. To schedule an interview, call customer service at 1-888-864-8363. Ohio Police & Fire Pension Fund (OP&F) produces a series of guides to inform members about benefit options available as they approach retirement. Each guide provides a general overview of subjects ranging from public re-employment to OP&F-sponsored health care benefits. Each book is available to download from the OP&F web site. ARE YOU AWARE that the National Rifle Association (NRA) provides a $25,000 no strings attached death benefit to the survivor of an officer killed in the line of duty? They even offer a yearly discount rate of $20.00 (regularly $35.00) only to law enforcement officers.  Whether you believe in the philosophy of the organization or not, twenty bucks per year for $25,000 of life insurance money is a benefit worthy of your survivor to receive.  Check their website for details or contact me for an application. Although this column is entitled Retirement Tips and Talk, I will from time to time, incorporate information useful for both pre and post retirement members. It is essential that all active and retired members of the division be kept informed. REMEMBER: Those who fail to plan, plan to fail.

The following is courtesy of Sgt. Bob Stanek and is worthy of your time. RETIREMENT TIPS AND TALK By Bob Stanek Benefits Officer      Retirement is not the end of our life, but a new beginning.  It’s the next chapter in our book of life that now we get to write. How creative we are can mean the difference between a best seller and a complete flop.    When planning your retirement, it is important to remember that money, more than any other factor, will dictate most of your retirement decisions. Your level of financial preparedness for your retirement years will determine when you retire, what type of lifestyle you and your family will enjoy during retirement, and what might be left as a legacy to your heirs.      There are many ways that proper planning can improve your current retirement outlook. The more time you have to prepare, the more change you can effect in your retirement income. A sound financial plan and ongoing professional advice can help you obtain your retirement objectives.      It has been said that no one plans to fail, they simply fail to plan. Nowhere is this idea more applicable than when it comes to meeting our retirement objectives. A sound financial plan can be the difference between meeting one's retirement objectives and facing the discouraging surprise of one caught unprepared and with too little time remaining to change their financial course.      At the very least, ongoing retirement planning will help you understand the financial demands of retirement, and make those decisions that are best suited to applying limited resources to potentially unlimited demands.      Retirement is a life altering decision, not one to be made lightly.  It is important to retire on your timetable, so that you can enjoy the fruits of your labor. Two key words in retirement consideration is PLAN and PREPARE.  Remember, THOSE WHO FAIL TO PLAN, PLAN TO FAIL.

RETIREMENT TIPS AND TALK By Bob Stanek Benefits Officer Pension Protection Act of 2006: Gross income exclusion up to $3,000 for health insurance premiums:      The federal Pension Protection Act of 2006 included a provision allowing retired public safety officers to take up to a maximum of $3,000 income exclusion from their taxes beginning with the 2007 tax year if they have health insurance premiums deducted directly from their regular pension benefits. OP&F members qualify as eligible public safety officers as defined by this act who have: Retired with a normal service retirement (i.e., age 48 with 25 years of service); Retired with an age commuted service retirement (i.e., age 62 with 15 years of service), or Retired as a disability benefit recipient.      The gross income exclusion will benefit these public safety officers who have qualified health insurance premiums deducted directly from their pension. This exclusion can include premiums paid on behalf of the member, spouses and dependents when the premiums are paid directly from the eligible public safety officer’s service or disability pension.      This gross income exclusion only applies to a distribution if the payment of premiums is made directly to the provider of the accident or health care plan or qualified long-term care insurance contract by deduction directly from a service or disability pension distribution from an eligible retirement plan. This would include the OP&F-sponsored health care plan. However, long-term health care is currently not deducted from OP&F health care coverage and therefore not eligible.      To take advantage of the gross income exclusion, those eligible will need to claim the associated tax benefits on their individual tax return IRS Form 1040 IRS outlines how to report the new $3,000 gross income exclusion for public safety officers:      The Internal Revenue Service (IRS) now has tax forms, publications and instructions on its Web site for the 2007 tax year. These up-to-date materials include a provision for the Public Safety Officer exclusion from gross income of up to $3,000 for qualified health insurance premiums. While the form has not been changed, Line 16b on Form 1040 is able to accommodate this exclusion. Retired public safety officers should report their total pension distributions on line 16a of Form 1040. If the individual qualifies for the insurance premium exclusion, it should be indicated on line 16b of Form 1040. To take this exclusion, reduce the otherwise taxable amount of your pension or annuity by the amount excluded. Remember that the amount shown in box 2a of Form 1099-R does not reflect the health care premium exclusion. The amount of health care contributions for 2007 is listed on your OP&F monthly benefit statement for December.      When taking this exclusion the public safety officer should write “PSO” next to the adjusted taxable amount received on line 16b. Detailed information appears on page 22 of the 1040 Instructions for 2007. For those who do not use Form 1040, the exclusion can also be reported on Form 1040A (lines 12a and 12b) and on Form 1040NR (line 17a and 17b). If you have any questions on this exclusion, please consult a tax professional for advice.

RETIREMENT TIPS AND TALK By Bob Stanek Benefits Officer SEPARATING FROM THE DIVISION OF POLICE: Members are reminded to review General Police Order 1.1.33, Separating from the Cleveland Division of Police, prior to their separation to ensure timely and proper completion of their departure paperwork. Section 1. B. of GPO 1.1.33 states in pertinent part that members shall report to the personnel Unit to complete their separation forms. Section 1. C. of GPO 1.1.33 delineates the equipment (if applicable) that members shall return to the Division of Police at the Personnel Unit. Most significantly, failure to report to the Personnel unit to complete the separation forms may leads to gaps in insurance coverage or delays in disbursement of funds due. In other words, follow this procedure: 1) Call me on line x 5153 or stop in my office located in the Personnel Unit at least one week prior to your anticipated retirement date to set up an appointment.  At that time we will review the list of equipment that needs to be returned and discuss any other pertinent matters relating to your retirement, including service weapon purchase. PURCHASE OF SERVICE WEAPON:   (In part, relating to retirements)      Officers may purchase their Division issued handgun, prior to, or within one year of, retirement from the Cleveland Division of Police, by completing a Form-1 if the conditions below apply: I.    Division handguns may be purchased when one of the following apply:      A.    Officers with a minimum of 23 years of service who are 46 or more years of age may purchase their Glock 9mm at fair market value, determined by the Officer in Charge (OIC) of the Ordnance Unit. To purchase their 9mm Glock officers may use their clothing allowance. Certified check or money order is required to purchase service weapons other than the 9mm.      B.    Officers who leave the employment of the Division and are awarded a Police and Fire Disability Pension are eligible to purchase their Glock handgun regardless of years of service or age by certified check or money order. II.    Officers utilizing their clothing allowance to purchase their 9mm shall complete the top portion of the Firearms Purchase Form-1; make a copy to attach to the clothing allowance form, and hand carry the original through the chain of command. Make plans to purchase your service weapon prior to your retirement appointment date with me.  If retiring on a medical disability pension bring me a copy of your award and acceptance letter prior to your anticipated departure and I will give you a Form 1 authorizing the purchase. Unless extenuating circumstances exits, WALK-IN retirements are not in your best interest. Information and pre-planning before you retire leads to a stress free and enjoyable retirement.