The retirement plans at Kansas State University are mandatory when the requirements for membership are met and are based on whether the person is employed in the Classified or Unclassified Service.
The Regents Retirement Plan is authorized by K.S.A. 74-4925, as amended, and first became effective January 1, 1962. The plan has been amended several times since that date.
Eligibility - All unclassified personnel employed .5 time or more, except those Cooperative Extension employees covered by a Federal retirement plan, are eligible and shall participate in the Kansas Board of Regents Mandatory Retirement Plan. Any unclassified faculty member who is employed at least .25 time and who has entered into a reduced service program agreement as authorized by K.S.A. 76-746, as amended, is eligible and shall participate in the Kansas Board of Regents Mandatory Retirement Plan.
No employment as a (i) student, (ii) seasonal or temporary employee, or (iii) employee who works less than half-time per year shall count toward the satisfaction of the year of service requirement.
Participation - All eligible employees shall begin participation in and make contributions to the Kansas Board of Regents Mandatory Retirement Plan on the first day of the pay period coinciding with or next following the completion of one year of service in a benefits eligible position. Failure of an employee to participate when eligible shall be cause for the immediate termination of employment of the employee.
Waiver of one-year waiting period - A newly employed person shall begin participation in the Kansas Board of Regents Mandatory Retirement Plan upon employment and upon establishment of eligibility for immediate participation pursuant to the law; provided; however, that said permissive "establishment period" shall not continue beyond ninety days from the appointment date. Criteria for waiver of the one-year waiting period are:
Student employment does not count.
To be considered for a waiver, documented proof must be received in the Kansas State University, Division of Human Resources office within 90 calendar days from the employee's appointment date. Participation will begin after receipt and acceptance of waiver documentation in the Kansas State University Division of Human Resources office. To document such covered employment, new employees must have the "Documentation of Service for Immediate Participation in the Kansas Board of Regents Mandatory Retirement Plan" form, PER-33 (PDF), completed by the former employer and forwarded to the Kansas State University Division of Human Resources office.
Plan Contributions - The participant contributes 5.5% of gross earnings for the purchase of these retirement annuities and KSU contributes 8.5%. Participant contributions will be made on a tax-deferred basis under an agreement for salary reduction executed in accordance with Section 403(b) of the Internal Revenue Code.
Eligible participants who have entered into a Reduced Service or Phased Retirement Program agreement, authorized by K.S.A. 76- 746, as amended, are entitled to receive a plan contribution by the institution as if the participant is serving in their current FTE level of appointment for the term of the reduced service or phased retirement agreement subject to applicable Internal Revenue Service limitations. See paragraph .030 of this chapter for more information about the Phased Retirement Program.
Participants who become eligible for the insured disability benefit, as described in PPM Chapter 4820, Insurance Programs, will have provided by KSU both the employer's and employee's contributions (currently 14% of salary) to the Regents Retirement Plan. This assistance will continue until the attainment of age 65, return to employment, or the date of retirement, whichever occurs first.
Effective December 31, 2006:
Approved Companies - The Board of Regents has selected Teachers
Insurance and Annuity Association - College Retirement Equities Fund
(TIAA-CREF) and ING Financial Advisers to provide investment options
to participants in the Regents Retirement Plan.
Employee Selection of Provider - Each eligible employee is responsible for selecting an investment provider and the investment options to which the retirement contributions are to be deposited. Only one investment provider can be selected for use by an employee at a time. Only once during a calendar year, but at any time during each calendar year, the eligible employee will be able to direct all future contributions to a different investment provider.
Employee Enrollment - The Division of Human Resources will provide enrollment materials to each eligible employee prior to the expiration of the one-year waiting period. A Kansas Board of Regents Mandatory Retirement Plan Investment Agreement(PER-13) (PDF), must be completed by each eligible employee along with an enrollment form provided by the investment provider. Failure to do so is grounds for employment termination.
Distribution Prior to Retirement or Disability - In the event a participant terminates employment for reasons other than retirement or disability and requests the distribution of his or her accounts, the Division of Human Resources will certify that the employee has terminated employment. Distributions will be based on the established policies of the plan providers and in accordance with applicable Internal Revenue Service requirements.
Retirement Age - There is no mandatory retirement age. For purposes of eligibility for certain statutory retirement benefits, retirement may be no earlier than the 55th birthday. Employees who retire at age 55-59 must have ten years of service in a benefits- eligible position at a Regents institution or with the Board of Regents staff. There is no minimum service requirement at age 60 or older.
Effective December 17, 1982, administrative officers (i.e., department heads, deans, associate and assistant deans, directors, associate and assistant directors of major University divisions, vice presidents, and the president) are no longer required to resign from administrative duties at the age of 65.
The 1994 Kansas Legislature authorized the Board of Regents to develop and implement a phased retirement program for unclassified employees of state educational institutions. This program allows a qualified unclassified employee the opportunity to phase retirement over a selected period of time. This program is open to all benefits-eligible unclassified employees who have attained age 55 and who have completed at least 10 years of full-time service with one or more Board of Regents educational institutions or with the Board of Regents staff. Entry into a phased retirement agreement shall be voluntary on the part of Kansas State University and the individual unclassified employee, except that the University shall refuse to enter into a phased retirement agreement when entry into the agreement is not in the best interest of the University.
Program Features -
Procedures for Applying - An interested unclassified employee is to submit a written proposal to their department head/dean. The department head/dean discusses the proposal with the interested employee and makes a recommendation to the Provost, Vice President for Administration and Finance, or Vice President for Institutional Advancement, as appropriate. A transmittal form to accomplish this is available in the Office of Academic Personnel. Proposals must be forwarded to the Provost or the appropriate Vice President by March 15 of the year preceding that which the leave is requested. Following approval, the faculty or staff member will be provided a written agreement outlining the terms and conditions of the phased retirement. Upon approval, the agreement along with a Change or Separation Form (PER-39) (PDF) and supporting documents are submitted to the Division of Human Resources.
The Kansas Public Employees Retirement System was created by an act of the 1961 Kansas Legislature (K.S.A. 74-4901 et seq). The State became a participating employer January 1, 1962. The purpose of the retirement system is "To provide an orderly means whereby employees of participating employers who obtain retirement age may be retired from active service without prejudice and without inflicting a hardship upon the employees retired and to enable such employees to accumulate reserves for themselves and their dependents to provide for old age, death, and termination of employment and for the purpose of effecting economy and efficiency in the administration of governmental affairs."
Eligibility - All employees who meet the following criteria are covered by KPERS:
Vested members of KPERS, vested members of Kansas School Retirement System, and other qualifying KPERS members who have not withdrawn their accumulated contributions become contributing members of KPERS immediately upon appointment to an eligible position. Other qualifying KPERS members are:
Participation - Each eligible employee becomes a member of KPERS on the first day of the payroll period coinciding with or next following the completion of one year of continuous service with a KPERS employer. Occasional breaks in service which do not exceed a total of ten days in any such year shall not constitute a break in service for purposes of determining the membership date of such employee. Any period of time on military leave counts toward the fulfillment of the one-year period; however, the employee must provide the original or a certified copy of his or her military discharge or separation papers within three months after re-employment to receive credit for military service.
Plan Contributions - The individual contributes 4% of gross earnings. Employer contributions are made by the State at a rate set annually by the KPERS board of trustees, upon recommendation of the actuary, based on amounts required to establish and maintain the system on a sound actuarial reserve basis. Effective July 1, 1984, employee contributions to KPERS annually are excluded from gross income for federal income tax purposes, thus deferring taxation until withdrawal of contributions or retirement benefits are received.
Employee Enrollment - Prior to the expiration of the one-year waiting period, the Division of Human Resources will provide a "Report of Member Status" form, KPERS-1, to each eligible employee for their completion.
Withdrawal of Contributions - Upon termination of employment, not followed by employment with another KPERS participating employer, the member may make application to withdraw his or her accumulated contributions and forfeit all benefits accrued from the employer contributions. Members with less than ten years of credited service (38 quarters) at the date of termination have their memberships protected for five years from their last day on the payroll or date of resignation, whichever is later. So long as contributions are not withdrawn, interest will continue to be credited during the five-year period and upon reemployment with a participating employer, retirement coverage would be immediate. If he employee has completed ten years of credited service (38 quarters) at time of termination, he or she will automatically be granted vested retirement benefits in the system, except that any time prior to the commencement of retirement benefit payments, the member may withdraw his or her accumulated contributions and forfeit all benefits accrued from the employer contributions.
Upon receipt of a Change or Separation Form (PER-39) (PDF), the Division of Human Resources will provide terminating employees an "Application for Withdrawal of Accumulated Contributions" form, KPERS-13, for their use if desired. Effective July 1, 1998, employees desiring to withdraw or rollover their KPERS contributions, upon termination of employment, must wait 30 calendar days from the date of employment termination before completing the KPERS-13 form. In the event the terminating employee withdraws his or her accumulated contributions then renews employment with the State of Kansas within 60 days of termination, the employee, as a condition of employment, must return to KPERS the amount withdrawn.
Retirement Age - Normal retirement for KPERS members is at age 65 and there is no minimum service requirement, age 62 and 10 years of credited service, or any combination of age plus years to equal 85. Members may retire with reduced benefits as early as age 55 if they have at least 10 years of credited service (38 quarters). There is no mandatory retirement age.
Effective July 18, 1989, Kansas State University elected to affiliate with the Kansas Police & Firemen's Retirement System (KP&F).
University Police Officers participate in KP&F immediately upon appointment as long as they are in a position which requires at least 1000 hours of work per year. The individual contributes 7% of gross wages and the State contributes an amount determined by the KPERS Board of Trustees. Enrollment forms should be attached to the Appointment Form (PER-38) upon submission to the Division of Human Resources.
Employees who were employed at least .5 time in the Cooperative Extension Service prior to July 1, 1986, except those covered by the Kansas Board of Regents retirement plan, are covered either by the Federal Civil Service Retirement System or the Federal Employees Retirement System. Deductions for these plans begin immediately upon appointment. Contact Extension Personnel and Recruitment for further information.
The Social Security Administration provides a variety of insurance protection for contributing workers and their dependents. These protections are: disability insurance, survivors insurance, medicare hospital insurance and medical insurance, and retirement insurance. Retirement insurance provides a monthly income after you retire.
All employees contribute to Social Security with the following exceptions:
Contributions - Both the employee and the State contribute to Social Security at a rate set by Federal law. Any contributions made to the State of Kansas Flexible Benefits Plan (KanElect) are exempt from Social Security tax.
Retirement Age - Normal retirement is at age 65, with reduced benefits available at age 62. Persons born in 1938 and later will gradually have a normal retirement age greater than age 65 up to age 67. Contact the Social Security Administration for additional information.
The Kansas Board of Regents has authorized employees under its control the option of requesting to have their salaries reduced and to place the amount of reduction in an annuity contract or account owned by the employee. Under these provisions, the University may place a portion of the employee's compensation in an annuity contract or account that will not be currently subject to income tax, but will be taxed when the funds are received by the employee or the beneficiary. Any tax sheltered annuities purchased must be by payroll deduction and executed in accordance with section 403(b) of the Internal Revenue Code.
Eligibility - Any person who is employed half-time or more and who is
either serving in a waiting period or participating in one of the
retirement plans is eligible for participation.
Plan Contributions - The maximum annual amount that may be tax-deferred is limited by the Internal Revenue Code. The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), effective January 1, 2002, increases the maximum annual amount that can be set aside before taxes for later use as a retirement income, as shown below:
| Year | Amount | Year | Amount | 2002 | $11,000 | 2005 | $14,000 | 2003 | $12,000 | 2006 | $15,000 | 2004 | $13,000 | 2007 and 2008 | $15,500 |
|---|
An additional $3,000 per year may be contributed for employees with 15 or more years of service at KSU and an additional $5,000 (effective January 1, 2006) per year may be contributed for employees age 50 or older.
An employee may participate in both the Voluntary Tax Sheltered Annuity plan and the Deferred Compensation at the same time. They do not offset each other.
The university does not contribute to this plan.
Approved Companies - Companies authorized to issue voluntary tax-sheltered annuities are any life insurance company authorized to do business in Kansas and any company offering retirement plans that meet the requirements of section 403(b) of the Internal Revenue Code (mutual funds). Companies must be approved by the Kansas Board of Regents prior to enrollment by employees. A listing of approved companies may be found at:
http://www.kansasregents.org/download/vtsa.html.
Employee Enrollment - The employee must select an investment provider and sign a Kansas Board of Regents Voluntary Retirement Plan Investment Agreement (PER-19) (PDF). The agreement will continue until canceled or changed by the employee as long as it continues to be in conformance with the regulations of the Internal Revenue Code.
Deferred compensation is a voluntary plan for retirement savings. The plan allows employees to defer receiving part of their current salary until retirement.
Eligibility - All state classified employees, unclassified employees, and student employees, reqardless of appointment type or hours.
Plan Contributions - There is a minimum deferral of $300 per year. The maximum annual amount that may be tax-deferred is limited by the Internal Revenue Code. The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), effective January 1, 2002, increases the maximum annual amount that can be set aside before taxes for later use as a retirement income, as shown below:
| Year | Amount | Year | Amount | 2002 | $11,000 | 2005 | $14,000 | 2003 | $12,000 | 2006 | $15,000 | 2004 | $13,000 | 2007 and 2008 | $15,500 |
|---|
An employee may participate in both the Deferred Compensation plan and the Voluntary Tax Sheltered Annuity plan at the same time. They do not offset each other.
The university does not contribute to this plan.
Employee Enrollment - Employees should contact ING Financial Advisers, the plan provider, at (785) 296-7095 for enrollment information.
As a result of change of position, it may sometimes be necessary to change an individual from one retirement plan to another plan.
Change from the Regents Retirement Plan to KPERS - Employees who are contributing members of the Regents Retirement Plan who are transferred or reclassified to a position covered by the KPERS Retirement Plan are eligible immediately to participate in KPERS or may elect to remain under the Regents Retirement Plan. Such election must be made on the "Election of Continuation of KPERS Membership or TIAA/CREF Assistance" form, KPERS-3TK, and must be submitted to the Division of Human Resources in duplicate with the Change or Separation Form (PER-39) (PDF). Failure to file such written election shall be presumed to be an election not to remain a member of the Regents Retirement Plan but to begin participation in the KPERS Retirement Plan. Such election, whether to remain a member of the Regents Retirement Plan or to become eligible for KPERS, shall be effective as of the date of such reclassification or transfer and shall be irrevocable. Any person in the one-year waiting period for the Regents Retirement Plan who transfers to a KPERS position must be placed in a one-year waiting period for KPERS, since no portion of the Regents Retirement Plan waiting period is applicable to the KPERS waiting period.
A new or returning employee who was a member of the Regents Retirement Plan who is employed in a KPERS covered position is required to serve a one-year waiting period and become a member of KPERS.
Change from KPERS to the Regents Retirement Plan - Any person who is presently a participating member of KPERS and who has completed a minimum of one year of service with the Kansas Board of Regents or with an institution of higher education in the State of Kansas who transfers or is reclassified to a position that qualifies under the Regents Retirement Plan is eligible immediately to participate in the Regents Retirement Plan or may elect to remain under KPERS. Such election must be made on the "Election of Continuation of KPERS Membership or TIAA/CREF Assistance" form, KPERS-3TK, and must be submitted to the Division of Human Resources in duplicate with the Change or Separation Form (PER-39) (PDF). Failure to file such written election shall be presumed to be an election not to remain a member of the KPERS Retirement Plan but to begin participation in the Regents Retirement Plan. Such election, whether to remain a member of KPERS or to become eligible for the Regents Retirement Plan, shall be effective as of the date of such reclassification or transfer and shall be irrevocable. Conversely, an employee who is under KPERS without a total of one year of service, who transfers to a position that qualifies under the Regents Retirement Plan must be placed into a waiting period to complete the total of one year of service prior to becoming a participating member of the Regents Retirement Plan.
Change from the Federal Retirement Plans to KPERS - Any person who is presently a participating member of a Federal plan who has been employed with the State of Kansas for more than one year who changes to a position that qualifies under KPERS must participate immediately in KPERS. Conversely, an employee who is under a Federal plan without one year of service must be placed into a one-year waiting period prior to becoming a participating member of KPERS.
Change from the Federal Retirement Plans to Regents Retirement Plan -
Any person who is presently a participating member of a Federal plan who has completed a minimum of one year of service with Cooperative Extension, with the Kansas Board of Regents, or with an educational institution under its management, or with participating employers under the Kansas Public Employees Retirement System during the five years immediately preceding appointment to a qualifying Regents Retirement Plan position is eligible immediately to participate in the Regents Retirement Plan. Conversely, an employee who is under a Federal plan without one year of such experience who transfers to a position which qualifies under the Regents Retirement Plan must be placed in a waiting period to complete the total of one year of service prior to becoming a participating member of the Regents Retirement Plan.
Change from KP&F to KPERS and from KPERS to KP&F - Any member transferring to or from a KP&F position or to or from a KPERS covered position participates immediately in the retirement plan normally provided at the new position.
Whom To Contact - Persons contemplating retirement should contact the Division of Human Resources three to six months prior to retirement. The Division of Human Resources staff will give counsel and assistance in preparation of applications for retirement. Employees should also notify their department head of their impending retirement either by letter or through the completion of the "Notification of Retirement form, PER-37 (PDF).
KPERS Benefits - To begin annuity income from prior and/or participating service credit from KPERS, the employee must complete an "Application for Retirement Benefits" form, KPERS-15, available from the Division Human Resources, and return it to the Division of Human Resources so that it may be forwarded to KPERS prior to the retirement date.
KPERS also requires proof of date of birth and any name change since birth for the retiree. If a joint annuitant retirement option is chosen, proof of date of birth and any name change are also required for the joint annuitant. Effective with all retirements occurring on or after July 1, 1994, KPERS must obtain a notarized signature of the member's spouse, signifying agreement with the retirement option chosen, if the member selects a retirement option under which the spouse would receive less than one-half the member's monthly benefit upon the member's death.
Detailed information on the various annuity payment methods under KPERS and assistance in choosing the best time to retire may be obtained from the Division of Human Resources.
Regents Retirement Plan Benefits - To begin annuity income from the Regents Retirement Plan the employee should request an application and income estimates from their Regents Retirement Plan provider. Once the application form is received, the Division of Human Resources staff are available for counseling and to assist in completion.
Social Security Benefits - Employees should contact the local Social Security Administration Office to make application to begin Social Security income no earlier than three months prior to retirement.
Group Health Insurance Benefits - Retirees receiving a pension from KPERS or from one of the Regents Retirement Plan providers may continue participating in the state group health insurance plan along with his or her spouse for lifetime by paying the full individual or family premium.
Annual Leave Benefits - Unclassified and classified employees are paid, at the time of retirement, for up to a maximum of 30 days (240 hours) of accumulated annual leave.
This leave payout is normally paid along with the employee's final pay from KSU. (See PPM Chapter 4860, Classified Employee Leaves, and PPM Chapter 4865, Unclassified Employee Leaves.
Sick Leave Benefits - Retiring employees meeting certain minimum years of service and sick leave accrual levels are compensated for a portion of their sick leave accumulation, as follows:
This leave payout is normally paid along with the employee's final pay from KSU. (See PPM Chapter 4860, Classified Employee Leaves, and PPM Chapter 4865, Unclassified Employee Leaves.
Life Insurance Benefits - The KPERS insured death benefit and optional group life policies may be converted within 31 days of retirement to individual policies at increased rates by contacting the Division of Human Resources. The Teachers and Employees Association of KSU life insurance may be retained after retirement at reduced coverage levels.
Other Benefits - The Division of Human Resources coordinates and sponsors annually a pre-retirement planning seminar series covering such topics as financial planning; estate planning; social security; medicare and group health insurance.
Athletic season tickets may be purchased at faculty/staff rates by contacting the Athletic Ticket Office.
Retirees are eligible to retain their KSU identification card and use all services which require the card such as use of libraries, recreational facilities and services, K-State Union activities, etc.
A permanent KSU parking permit may be obtained at no cost by contacting KSU Parking Services.
Unclassified Employees - Kansas Board of Regents Retirement Plan: KSU unclassified employees who were participating in the Kansas Board of Regents retirement plan at the time of their retirement from KSU are elegible for re-employment in new or vacant positions without regard to their retirement status.
Unclassified Employees - Cooperative Extension Service: Employees retired from the Cooperative Extension Service (CES) under either the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS) retirement plan may be re-employed at Kansas State University in any position except one funded by the Cooperative Extension Service.
Unclassified Employees - Kansas Public Employees Retirement System (KPERS): KSU unclassified employees who were participating in the Kansas Public Employees Retirement System at the time of their retirement from KSU are elegible for re-employment in new or vacant temporary positions (less than .5 FTE) without regard to their retirement status.
Classified Employees - Kansas Board of Regents Retirement Plan: KSU classified employees who were participating in the Kansas Board of Regents Retirement Plan at the time of their retirement from KSU are eligible for re-employment in new or vacant positions without regard to their retirement status.
Classified Employees - Kansas Public Employees Retirement System (KPERS): KSU classified employees who were participating in the Kansas Public Employees Retirement Plan at the time of their retirement from KSU are eligible for re-employment in new or vacant temporary positions (less than .5 FTE) without regard for their retirement status.
KPERS Provisions --
Returning retirees may also be subject to a reduction of their Social Security Benefits if they are under age 65.
Any questions regarding the Kansas Board of Regents and Kansas Public Employee Retirement System (KPERS) retirement plans, policies and procedures should be addressed to the Division of Human Resources, (785) 532-6277.
