Grace Chee provides retirement, tax, and financial planning tips for faculty. She recommends saving through 403b and IRA accounts to reduce taxes. Credits like the Saver's Credit can provide tax refunds for low-income savers. Choosing CalSTRS over the default Apple plan offers lifetime retirement benefits. Sick days and classes can boost retirement income and salary. Travel and conferences are worth it for networking benefits despite costs. Part-time faculty can receive unemployment benefits between semesters. Overall, her advice is to save, spend wisely, and help other faculty.

1. or
What I wish someone had told me
when I first started…
For the Young and Young at Heart.
Palomar Faculty Federation
Adjunct Faculty Retirement
January 24, 2019
Grace Chee
Retirement, Taxes & Other Financial Tips:
Save, Spend & Play Nice Nice!

2. Grace Chee, all rights reserved © 2019
Sempai (先輩, "earlier colleague” or upper classperson)
Kōhai (後輩, "later colleague” or lower classperson)
Chinese-Korean-Japanese terms, East Asian concepts
Disclaimer: I am neither a tax attorney nor accountant, but a union
colleague with some experience and studies on retirement, taxes and
other benefits for faculty. The information presented does not represent
any official organization position. Please consult a tax professional.
Story of the other Grace.

3. I was the Poster Child for 403Bs
in one U.S. Department of Labor Article
“Fee Disclosures Lead to Action
We were pleased to hear recently from Grace Chee, a
Community College professor in California. Grace not only
reviewed her 403(b) fee disclosure statements that resulted from
the Department of Labor's recent new rule, but decided to take
the information and make some changes.
‘I thought my retirement accounts were free, so when I received statements
disclosing how much I was paying in fees for my various accounts, I was
shocked. When I realized the fees, I called to inquire and they stated that the
fees had always been there, but that new federal laws require the fees to be
disclosed. Great to see that our government is working for us people,
requiring more transparency! Thank you! As a young teacher/professor, I
can't put away much for retirement, and every dollar counts!
I decided to consolidate my accounts. I'm telling all my friends and family
to take a look at how much they are paying in fees as it is going to make a
real difference over time.’”
December 10, 2012

4. Love, Love Tax CREDITS! 
o Credits vs. deductions
o IRS Cash Back! Credits
are $ per $ or straight
subtractions to your Tax.
e.g. $2000 TAX - $1000 CREDIT
= $1000 tax – WOOHOO!!!

5. Saver’s Credit for Low-Moderate Income
Tax CREDIT (aka Retirement Savings Contributions Credit)
for low- moderate workers
+ IRS cash back 
+ TIP: a good safety net, as IRS allows for other emergency or
education expense withdrawals
+ TIP: First-time home buyer? no-penalty withdrawal and/or
loan against your retirement savings
2019
o $64k for married couples filing jointly, up from $63,000
o $48,000 for heads of household, up from $47,250;
o $32K for singles and married individuals filing separately, up from
$31,500

6. Save! IRAs
ROTH IRA (Post-tax) delayed gratification
(never pay taxes on your future investment earnings)
Traditional IRA (Pre-tax) instant!
means your taxes might be significantly lower this year
2019 - Save up to $6000 (increased $500 from 2018 and same if
you’re age 50 or older in 2019)
2018 IRA ($5500/year, you have ‘til April 2019)

7. Save! 403B!
403B – PRE-tax voluntary retirement plan through
calstrs: http://calstrs403bcomply.com/
+ Tip: Today is a fantastic time to start investing!
+ Calstrs 2 or your own through a financial management
firm
+ PRE-Tax (means your taxes will be significantly lower)
+ $18,500/year (2018) + $6K catch up for over 50+
+ $19,000/year (2019) + $6K catch up for over 50+

8. Default @Palomar for Adjunct Faculty:
Why Apple?
What is APPLE? (like a Savings Account)
“alternative to Social Security … as a Profit Sharing Plan under 401(a) or a
Deferred Compensation Plan under 457(b) …not covered under the Public
Employees’ Retirement System (PERS) or the State Teachers’ Retirement
System (STRS)”
Contributions
+ 5% Employee
+ 2.5% EmployeR
- Must wait until age 70½
“Combined employee/employer contribution is 7.5% of compensation”
https://www.mymidamerica.com/employers/retirement-plan-solutions/apple-plan/
800-444-9995

9. Why Calstrs DB?
+ 10.2% Employee
+ 16.3% EmployeR
+ Benefits for life, once retirement starts (like social security)
+ Target year ~62 but flexibility
+ Other college districts within California counts
- 5 full-time equivalent years to get vested (If you leave calstrs before
getting vested, would lose the employeR contributions, but would keep
your own)
+ 2013 – legislative changes for retirement, age 60 to 62
Check out the salary calculator:
https://www.calstrs.com/calculators
For me personally, I wish I had made a better choice when I started ~10 years ago.
https://www2.palomar.edu/pages/hr/employees/retirement/
One adjunct faculty hypothetical:
$1011/month – age 60
1480/month – age 65
2020/month – age 70

10. Calstrs & Social Security
The intersection of SS & Calstrs:
“As a California public school educator, you do not contribute to Social
Security, so you will not receive a Social Security benefit for your CalSTRS-
covered employment when you retire.”
https://www2.palomar.edu/pages/hr/files/2013/02/FAC.socialsecurity2016
_15.pdf
Windfall Elimination Provision – may reduce your Social Security benefit by
$428 maximum (in 2016) but NOT eliminate it.
Government Pension Offset - for a spouse or surviving spouse, a Calstrs
retirement benefit will reduce your Social Security benefit by 2/3 of your
CalSTRS retirement benefit.
www.socialsecurity.gov/gpo-wep
Social Security Administration 800-772-1213

11. Save Sick Days!
Use them if you are sick, but otherwise
Save!
Calculated into your Calstrs retirement
formula for Defined Benefit Members
http://resources.calstrs.com/CalSTRSComResourcesWebUI/Calculators/Pages/RetirementBenef
it.aspx
Multiple Districts?
Sick days migrate.

12. Spend! Classroom-related $Expenses?
Adjusted Gross Income, #23
Educator expenses, books, supplies, computers,
hardware, software, ink, or other educational
material important to teaching. Up to $250
would be subtracted directly from your income.

13. Spend! Classes?
o Hope Lifetime Learning Credit: 25% tax
CREDIT! (Form 8863 sent in the mail)
o Plus salary may go up? (grades?)
o Professional development, new hobbies,
health, and other benefits to taking classes
o Tuition reimbursement?

14. SPEND: Student Loans?
Student loan payments getting you down?
Full-time faculty: federal loan forgiveness programs:
https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/teacher#who-is-
considered
Part-time faculty: Complex, but AFT national is working on this:
http://www.aft.org/resolution/public-service-loan-forgiveness-program-eligibility-part-time-
faculty
TIP: All Faculty: 6+ units of classes = halftime, defer your
government subsidized student loans @ 0% interest
o You can still make loan payments, but without hefty interest
payments to banks
TIP: Keeping student loan debt versus credit card debt? a question
of math! (story of my friend Terri)

15. Spend! Travel!
o Story of my colleagues, Bill & NK
o Travel & Leisure Magazine reported that short (4-
days) and longer vacations (8+days) bring
happiness to workers
o American workers versus others
o TIP: Why I practice self-care, both physical and
mental… good for student success!
o How to travel on a student, I mean, adjunct
faculty budget 

16. Spend & Play Nice Nice!
Networking & Conferences?
Networking and professional development have benefits.
o Colleagues refer each other
Publishers contact me for
o text reviews
o text companion teaching material
o networking dinners
o Consulting business taxes more complicated. Please contact a
tax professional.
TIP: Create Community & Help Other Adjunct Faculty!
Sempai-Kohai?

17. Part-Time Faculty: Job market got you down?
EDD: Adjunct Faculty PERK!
California’s EDD (Employment Development
Department) is insurance! (just like car, homeowner,
renter, etc)
+ Up to $450/week
+ Potential $7200/year in unemployment benefits
when you fall unemployed or underemployed when
the semester ends
+ TIP: You can earn EDD even after retirement, if the
retirement was employee-contributed (assuming you
go back to work and fall unemployed)
+ TIP: Why I vote with my feet.

18. Copyright © 2019 Grace Chee
Taxes & Other Financial Planning Tips
1. Save
2. Spend
3. Play nice nice!
Grace Chee, all rights reserved © 2019
Disclaimer: I am neither a tax attorney nor accountant, but a union colleague
who have some experience on taxes, retirement and benefits for faculty.
Former elected Treasurer of a local union, worked as the EDD Ombudsperson
5 years, a long-term advocate for contingent faculty issues in the California
Federation of Teachers (CFT) and consulted for a number of non-profit
organizations as individuals… However, the information presented is does not
represent any official organization, other than Grace Chee. If you have any
suggestions or corrections, please contact
Gchee99@yahoo.com