Leaving the University
Human Capital Services would like to thank you for your service to the University. We wish you all the best in your future endeavors
Below you will find helpful information about your benefits and next steps for finishing your separation from the University.
What happens when I leave?
Final PaycheckIn most cases, your last paycheck will be issued consistent with the regular payroll cycle.
When you leave employment for any reason other than retirement, the university will pay out to you your accrued Compensatory Time (both regular and holiday) and your Vacation Leave (up to a maximum of 176 hours). No payment is made for Sick Leave. This payout will be included in your final paycheck in most cases.
For university support staff, many departments will conduct an exit interview. For unclassified staff and faculty, you will receive an exit interview survey approximately a month after you leave. If you do not have a scheduled exit interview with your department, you are encouraged to schedule one with your unit head.
What happens to my retirement benefits? – KPERS
If you have 5 years of KPERS covered service then you are vested in the retirement system. Vested means you are guaranteed a retirement benefit.
If You Are Vested
You are guaranteed a monthly retirement benefit for the rest of your life if you leave your contributions in your account. Often, if you have a significant amount of service, your benefit is more valuable than your actual contributions. If you keep your contributions with the Retirement System, you can apply for retirement benefits when you become eligible. They will continue to earn interest and you can withdraw at any time if you change your mind.
If you do not withdraw, and you return to KPERS covered employment, you will immediately become an active member again and keep your service credit.
If You Are Not Vested
You are not guaranteed a retirement benefit. You need to withdraw your account within five years. After five years, your contributions stop earning interest and you forfeit your service credit.
If you do not withdraw or retire and you return to employment in a KPERS covered position within five years, you will immediately become an active member again and keep your service credit.
Withdrawing your Contributions
You can apply to withdraw contributions to KPERS anytime 31 days after you end employment. If you withdraw, you will give up all Retirement System rights, benefits and service credit. Employer contributions made on your behalf stay with the Retirement System.
You can receive your contributions and interest as a direct payment to you or roll over the amount into an eligible retirement plan. The decision to withdraw could affect your financial future, especially if you have many years of public service and accumulated contributions. Seek professional tax advice before withdrawing.
To withdraw your KPERS contributions you must complete the Application for Withdrawal of Contributions (pdf) form and submit directly to KPERS.
Keep in mind, KPERS is the retirement system for many public employees in Kansas. If you are leaving KSU to work for another agency in a KPERS covered position then your retirement benefits will transfer with you to your new position. You can see a list of KPERS affiliated employers (pdf) on the KPERS website
More information on how leaving employment affects your KPERS retirement benefit can be found on the KPERS website.
What happens to my retirement benefits? – KBOR
Successful retirement planning will convert potentially complex decisions into a manageable process. Human Capital Services staff members provide information and confidential counsel throughout the retirement planning process. Now that you have decided to leave Kansas State University:
What happens when I terminate?
Because you are 100% vested in the entire account balance in the KBOR Mandatory Retirement Plan, you are now responsible for determining not only the investment choices but when you want to make withdrawals from this plan. Keep in mind that you should meet with not only your Investment Provider but also a Financial Advisor if applicable. This will enable you to determine what the tax consequences will be once you start withdrawing from your retirement account or rolling this retirement account to another program. Each cash withdrawal will be taxable to you as income and if you are under Age 59 ½, there will be an additional IRS penalty of 10%. If you are older than 70 ½, you are required by the IRS to begin taking a Required Minimum Distribution. For tax reporting purposes, keep in mind that because you are a State of Kansas Employee, there will be no State of Kansas taxes required to be paid as long as you reside in Kansas. If you are planning on moving to another state, you may want to see how distributions from this retirement plan will be handled per their state tax laws.
Am I vested in the KBOR Mandatory Retirement Plan?
While you worked at Kansas State University, you were enrolled in the KBOR Mandatory Retirement Plan and employee pre-tax contributions were required. The University was also required to make employer contributions into this retirement program. You are 100% vested, which means that when you leave the University, the retirement account is yours. This retirement plan is a 403(b) Plan, which the IRS allows for the employee contributions to be made with pre- tax dollars. When you begin taking distributions, they will be taxed to you as income and some distributions may have an additional penalty assessed by the IRS. You might want to consider other distribution alternatives such as rolling the account into another qualified retirement program. The more you have saved for retirement, the more you will have available to you once you retire.
Do I need to take a distribution from the KBOR Mandatory Retirement Plan if I am terminating or retiring from Kansas State University?
Once you have made the decision to leave KSU, you will need to notify your manager and provide them with your last day. The termination date will be sent to your investment provider via an updated payroll file. You should reach out to your Investment Provider and talk about what the next steps are for your retirement account. Should you keep the account? Should you transfer it to another 403(b) retirement program or an IRA? Or should you liquidate the account. If you withdraw money, it will be taxable to you as income and there may be some IRS penalties. Keep in mind that the more you save for retirement, the more you will have available to you once you retire.
Due to privacy rules, Kansas State University will not have the ability to see or access your account information once you leave the University.
What happens to my Accrued Leave when I terminate?
There are some decisions that need to be made regarding the payout of your Accrued Leave. If you have not done so yet, we would recommend that you talk with your Financial and/or Tax Advisor prior to your termination. The Human Capital Services staff are also available to discuss your benefits and how leaving the University will affect the retirement plan.
Vacation Leave Payout: You will be paid for any Vacation Leave that has not yet be taken in your last pay check unless you want to defer the amount into an Optional Savings Plan. Complete PER-19 if you wish to defer this payout. This will protect the account to be tax-free until you start taking it out of the Optional Savings Retirement Plan. The completed form needs to be returned to email@example.com at least two weeks prior to leaving the University.
Sick Leave Payout: You are not eligible for any payout of Sick Leave due to terminating your employment with Kansas State University.
Compensatory Time Payout
Accumulated overtime and holiday compensatory time are paid at retirement.
Discretionary Time Payout: You are not eligible to receive any Discretionary Time due to terminating your employment with Kansas State University
What happens to my Kansas State University Email?
It will no longer be available to you for your use 1 year after your termination from KSU.
When am I able to retire?
Normal retirement age at Kansas State University is based on the retirement provisions of KBOR Mandatory Retirement Plan. Normal Retirement is the earlier of (a) Ages 55-59 with 10 Years of Service or Age 60 with no service requirement.
If you are eligible to retire, you need to complete Form PER-37 and return it to your Manager. Once the form is received, your HCS Specialist will complete Form PER-39 which starts the retirement process within Human Capital Services.
What Happens to my Accrued Leave if I Retire?
There are some decisions that need to be made regarding the payout of your Accrued Leave. If you have not done so yet, we would recommend that you talk with your Financial and/or Tax Advisor prior to your retirement.
Vacation Leave Payout:
A retiring employee will be paid for accumulated vacation leave at the time of retirement to a maximum of 240 hours at the employee’s regular hourly rate of pay. This payment is included in the employee’s final University paycheck unless you want to defer the amount into an Optional Savings Plan. Complete form PER-19 to defer this payout. This will protect the amount tax-free until you start taking it out of the Optional Savings Retirement Plan.
Sick Leave Payout
Payment for part of an employee’s sick leave balance will be paid at retirement only when these conditions are met:
Years of Service
Minimum Sick Leave Balance
8 or more
15 or more
25 or more
The payout is calculated using the employee’s hourly wage rate at the time of retirement and included in the retiree’s final paycheck from the University unless you wish to defer the amount into an Optional Savings Plan. Complete form PER-19 if you wish to defer this payout. This will protect the amount tax-free until you start taking it out of the Optional Savings Retirement Plan.
Also we would encourage you to consider if you want the difference between your total Sick Leave and the amount that is available to be paid/deferred at retirement to be donated to KSU’s Shared Leave program. If you do decide to donate, Form PER-64D needs to be completed and returned 2 weeks before you retire to Human Capital Services: firstname.lastname@example.org. Click on Shared Leave Policy for more information on this program.
Compensatory Time Payout:
Accumulated overtime and holiday compensatory time are paid at retirement.
Discretionary Time Payout:
You are not eligible to receive any Discretionary Time due to retirement with Kansas State University
Are there any other Benefits At Retirement? Retirees are eligible to retain their KSU Wildcat ID card and to use all services which require the card such as the libraries. Contact the ID Center for more information.
Retirees are also eligible to keep their KSU email accounts. Enjoy the Rec Center facilities with a free membership. Additionally, talk to Parking about obtaining a free parking permit. Additional questions concerning such retirement benefits should be directed to the office administering the service.
Can I return to work after I have retired from KSU?
IRS rulings and case law confirm that access to retirement funds requires a bona fide separation from service. Consequently, rehiring a retiree must be in the best interest of the University and within the bounds of this policy. The retiree may not be rehired into the same position with job duties and job title identical to those which he/she held before retirement. Any rehire is subject to the normal university recruitment approval process. In addition, Human Capital Services must approve the initial rehire of all retirees prior to allowing the retiree to work in order to document compliance with the following policies.
A retiree who participated in the KBOR mandatory retirement plan may be rehired no earlier than 60 calendar days after the retirement date. Access to retirement funds will be dependent upon prevailing KBOR and retirement provider policy. See the Kansas Board of Regents Bona fide Separation from Service directive.
To assist you in planning for retirement, the following checklist has been created. Please note that this checklist is intended to give you a general guide to help you in your retirement planning process.
What Happens to My Current Benefits?
Group Health Insurance (GHI) (30 day deadline)
If you had health insurance as an active employee, your coverage ends on your last day of employment. You will automatically receive information from the State of Kansas for COBRA.
Health Savings Account (HSA)
Funds in your HSA are yours to use until the funds are exhausted. Contact US Bank 877-470-1771 for questions concerning your account.
Health Reimbursement Account (HRA) (60 day deadline)
Funds in the HRA are only available for use through the end of month in which you terminated. Claims for unspent funds must be filed within 60 days after your termination date. Any funds remaining in in the account will be returned to the State of Kansas. Contact US Bank, 877-470-1771 for questions concerning your account.
Flexible Spending Account (FSA)
If you had a flexible spending account for health care expenses or dependent care, you have until April 15 following the end of the plan year to file claims that were incurred up to the end of the month you leave employment. Contact NueSynergy for further information.
Hartford Optional Life Insurance Continuation Options (31-day Deadline)
Separating employees are eligible to continue life insurance through conversion or portability. Should you desire to continue coverage, contact email@example.com Premiums will be based on your age and coverage amount.
Minnesota Basic and Optional Life Continuation Options (31-day Deadline)
Separating employees are eligible to continue life insurance as indicated below if action is taken within 31 days from last day on payroll. Basic term life insurance is a no-cost benefit for active employees equal to 150% of current salary.
Questions? Minnesota Life 877-215-1476