Retirement

• Deferred Compensation (KPERS 457)

  Deferred compensation is a voluntary defined contribution retirement plan established by the state to help employees provide a supplement to their KPERS retirement income.  Deferred compensation reduces income taxes while helping retirement savings grow and this is how it works:

  • The employee decides how much money he or she wants to defer.
  • The money set aside from the employee is invested in the investment options chosen by the employee.
  • The employee pays no federal or state income tax on the deferred amounts or its earnings.
  • The employee pays no up-front administrative charges or annual fees, so 100% of the employee’s contribution is invested in the employee’s account.

  There is no open enrollment period for deferred compensation. More information is available at 1-800-232-0024, option 5 for a live representative.  More information is also available online at http://www.kpers.org/kpers457.html. 

  KDA’s local representative is Scott Kober with Empower Retirement. He may be reached at (816) 853-4210 or e-mail him at scott.kober@empower-retirement.com.

• KPERS

  The Kansas Public Employees Retirement System (KPERS) was established in 1961.  KPERS membership is mandatory for all employees in eligible positions.  KPERS Tier 1 employees currently contribute at a rate of 6%.  Employees hired effective July 1, 2009, are considered Tier 2  and also contribute at a rate of 6%.  KPERS employee contributions are taxable for state income tax purposes. The State contribution fluctuates, depending on the funding needs of KPERS. A new KPERS Tier 3 was implemented in January 2015.  A benefit summary may be viewed at the following locations:

  KPERS Tier 1:   http://www.kpers.org/pdf/benefitsataglance_kperstier1.pdf

  KPERS Tier 2:   http://www.kpers.org/pdf/benefitsataglance_kperstier2.pdf

  KPERS Tier 3:   http://www.kpers.org/pdf/benefitsataglance_kpers3.pdf

  As you consider retirement, contact the Human Resources team, who will able to facilitate your acquisition of information pertinent to retirement, including retirement estimates.  Prior to retiring, we encourage employees to make an appointment with KPERS to finalize paperwork.  KPERS requests a minimum of 30 days notice prior to retirement.  The KDA Human Resources team can also assist you in securing retirement estimates from KPERS by completing KPERS 15E and submitting it on your behalf.

  KPERS Retirement Estimate form:  http://www.kpers.org/forms/k15e.pdf

• Social Security

  The State of Kansas participates in the Federal Social Security Program. Under the plan, both the employee and the employer, the State of Kansas, pay an equal social security tax on the wages of the employee, up to a maximum set by law.  The employee's share is deducted from his/her biweekly paycheck. If you have questions or need more information about this tax or any other payroll tax issue contact human resources.