Retirement Plans

What happens when I terminate or retire?
Because you are 100% vested in the entire account balance in the KBOR 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 age 73 or older, 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.

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.

When am I able to retire?
Normal retirement age at Kansas State University 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 HR Specialist will complete Form PER-39 which starts the retirement process within Human Resources.

Faculty and Professional Staff who are benefits-eligible participate in the Kansas Board of Regents mandatory retirement plan. Retirement plan providers are Voya Financial, (formerly ING Financial Advisers) and TIAA .

Each participant establishes a retirement account with the selected company. The company will then invest the participant’s funds as the participant directs. At retirement, the employee will determine the withdrawal rate and method for his/her retirement funds.

Regular retirement is available at age 60 with no minimum service requirement. Early retirement is available at age 55 with at least 10 years of service.

When Eligible: Faculty and Professional Staff must participate in the mandatory retirement plan after one year of service in an eligible position. This one-year wait may be waived if the employee has participated in a qualified retirement plan at an institution of higher education in the United States to which employer contributions have been made for at least one year (365 days) within the five-year period immediately preceding employment with Kansas State University. A waiver may also be granted for participation in a State of Kansas mandatory retirement plan (other than the Kansas Board of Regents) in which the employee participated at least one year (365 days), including time in a waiting period, within the five-year period immediately preceding employment with Kansas State University. A Documentation of Service form for the waiver must be received by HR within the first 90 days of employment. Participation will begin when all needed forms are received in the Division of Human Resources.

Who Pays: The employee contributes 5.5% of salary in pre-tax funds and the University contributes 8.5% of employee’s salary to the employee’s selected provider.

Related Information

• Investment Agreement - Mandatory Retirement Plan (Kansas Board of Regents) (PER-13)
• Long-term Disability Benefits Available to Participants in Kansas Board of Regents Mandatory Retirement Plan (pdf)
• Documentation of Service for Immediate Participation in Regents Retirement Program (PER-33)
• Voya Financial Advisor Contacts
• KBOR How to Enroll Flyer

This retirement plan ONLY applies to Faculty and Professional Staff/Regents Mandatory Retirement Plan Members. Participation means a reduction in appointment and salary but retention of current employer-paid benefits. Participation is voluntary and available from one to five years. At the end of the agreed upon participation period (not to exceed five years) the employee is required to retire.

When Eligible: Age 55 with 10 years of full-time service at KSU or another Board of Regents educational institution.

Who Pays: The university continues to pay the employer provided benefits at the employees FTE rate prior to participation in the Phased Retirement Program even though the employee’s salary is reduced.

Related Information

• Long-term Disability Benefits Available to Participants in Kansas Board of Regents Mandatory Retirement Plan (pdf)

Only university police officers participate in KP&F. Participants are vested after 15 years of service and may select from various income options at retirement.

Regular retirement is available at these age and service combinations:

• 50 years of age with at least 25 years of service credit
• 55 years of age with at least 20 years of service credit
• 60 years of age with at least 15 years of service credit

Early retirement is available at age 50 with at least 20 years of service credit. Early retirement benefits are permanently reduced.

When Eligible: Participation in this retirement plan is mandatory on the first day of employment in a KP&F-covered position.

Who Pays: The employee contributes 7.15% of salary before taxes. The University also contributes to the retirement system. The University contribution is not credited to any specific employee or group of employees.

Your KPERS retirement benefit will begin effective the 1^st day of the month following your last day actively on Kansas State University’s payroll. You will need to submit your Application for Retirement form (KPERS-15) at least 30 days before the day you want to retire. You need to apply to receive your benefits from KPERS. They do not begin automatically. You will need to provide birth and name change documents. Your retirement application can be submitted to KPERS via the Benefits Administration office. Please contact Benefits to obtain more information.

Once your application has been received, KPERS will process your application and notify you if they require additional information. You will receive a letter at your home address regarding your benefit amount and taxes.

Your monthly benefit payments will be directly deposited at your financial institution on the last working day of each month. You will receive your first benefit payment at the end of the month after your retirement date.

University support staff in KPERS-covered positions participate in KPERS. Participation in KPERS retirement is mandatory at date of hire into a KPERS covered position.

Successful retirement planning will convert potentially complex decisions into a manageable process. Human Resources staff members provide information and confidential counsel throughout the retirement planning process. There are three Optional Savings Plans. Now that you have decided to leave Kansas State University:

Voluntary 403(b) Retirement Plan

What happens when I terminate or retire?
Because you are 100% vested in the entire account balance in the Voluntary 403(b) 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 for distributions from the Voluntary 403(b) Retirement Plan 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 Voluntary 403(b) Retirement Plan?
While you worked at Kansas State University, you made a wise decision to sign up for the Voluntary Retirement Plan. There were no 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 Voluntary 403(b) 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.

When am I able to retire?
Normal retirement age at Kansas State University is based on the retirement provisions of the 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 HR Specialist will complete Form PER-39 which starts the retirement process within Human Resources.

KPERS 457 Retirement Plan

What happens when I terminate or retire?
Because you are 100% vested in the entire account balance in the KPERS 457 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.

Am I vested in the KPERS 457 Retirement Plan?
While you worked at Kansas State University, you made a wise decision to sign up for the KPERS 457 Retirement Plan. There were no 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 457 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 KPERS 457 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 457 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.

When am I able to retire?
Normal retirement age at Kansas State University is based on the retirement provisions of the 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 HR Specialist will complete Form PER-39 which starts the retirement process within Human Resources.

LearningQuest

While you worked at Kansas State University, you made a wise decision to sign up for the Kansas Learning Quest Education Savings Program. The program was established by the State of Kansas and administered by the Treasurer of the State of Kansas. American Century Investment Company is the program manager for employee investments. These investment plans, sometimes called 529 plans, offer tax-deferred earnings growth and potentially reduced taxes on withdrawals. Contributions are made on an after-tax basis for the benefit of named beneficiaries.

What happens when I terminate or retire? This Education Savings Program program belongs to you and the beneficiary of the account. You will need to notify then that you have left the University.

What happens if due to Death? This education Savings Program would be owned by the Beneficiary of Record.

Where can I get additional information on Learning Quest? Visit the Learning Quest website for more information.

Kansas Public Employees Retirement System (KPERS)