KPERS 2 Retirement

Employer Manual

Revised:

3/19



If You Have Questions




Full Retirement - Unreduced Benefit Early Retirement - Reduced Benefit
Age Years of Service Age Years of Service
65 5 55 At least 10 years, but less than 30 years
60 30

There is a different actuarial factor table for each scenario listed above.

* Two quarters round up to one year; 18 quarters round up to 5 years.

Full retirement eligibility
Group A Group B
Age 55 with 10 years of service Age 60 with 10 years of service
Must be a Group A Correctional Officer at least 3 years immediately before retirement and retire on the first day of the month after the last day on the payroll Must be a Group B Correctional Officer at least 3 years immediately before retirement and retire on the first day of the month after the last day on the payroll
Early retirement eligibility
Group A Group B
Age 50 with 10 years Age 55 with 10 years of service
Must be a Group A Correctional Officer at least 3 years immediately before retirement and retire on the first day of the month after the last day on the payroll. Must be a Group B Correctional Officer at least 3 years immediately before retirement and retire on the first day of the month after the last day on the payroll.

Note: If a correctional officer leaves employment before retiring, regular KPERS age and service requirements apply, not correctional eligibility requirements.

Retirement benefits are calculated using a formula set by state statute. When a KPERS covered employee retires, the formula takes into account the following:

  • The employee's final average salary
  • A statutory multiplier
  • The employee's years of service

The final average salary for KPERS 2 employees is calculated using a 5-year final average salary without add-on compensation (such as sick leave and annual [vacation] leave paid to employee).

Final average salary "Cap law"

Kansas law states that if a KPERS 2 member’s compensation used in calculating his or her final average salary is more than 7.5% higher than the preceding year, the amount which exceeds the 7.5% will not be included in compensation.

Compensation that is capped:

  • Part-time employees who stay in the same position and whose salary is over the 7.5% because they work more hours (not overtime hours)
  • Raises
  • Bonuses
  • Extra duties, teaching extra classes (without a supplemental contract)

Compensation that is NOT capped:

  • Any increase in compensation for any member due to reclassification or reallocation to a higher range or level
  • Overtime

Requesting an estimate from KPERS

A retirement estimate is calculated the same way as an actual retirement benefit but may use projected salary information. KPERS requires a Retirement Benefit Estimate Request form (KPERS-15E) for all estimate requests. If the member requests the estimate, he or she will sign the form. If the designated agent requests it, he or she will need to sign it. Processing will take approximately four weeks.

To calculate the actual retirement benefit we will use salary information reported on the retirement certification. In the event of a discrepancy between an estimate and the actual monthly benefit, the benefit received will be paid in accordance with applicable laws and regulations.

KPERS 2 online calculator

Remind employees they can estimate their benefits at any time using their online account.
KPERS 2 Calculator

Completing retirement application

When a member retires, he or she must do the following:

  • Submit a retirement application 30 to 60 days before the member's retirement date.
  • From the KPERS forms page, click on the Application for Retirement Booklet (KPERS-15 Booklet). Click to order a supply of printed retirement applications.

Documents needed for retirement

Use Secure Upload on the EWP to send documents to KPERS.

Member

  • A photocopy of the member's birth document.
  • A photocopy of member’s name change document if name is different than name on birth document.

Joint annuitant

  • A photocopy of the joint annuitant’s birth document.
  • A photocopy of the joint annuitant’s name change document if name is different than name on birth document.

Acceptable proof of birth | A photocopy of one of the following:

  • Marriage or other court records showing birth name and present name (If a person has had more than one name change, records submitted must reflect all name changes.)
  • Name Change Affidavit (KPERS-40NC) or other affidavit from a parent listing all name changes
  • Request for Member Information Change form (KPERS-12) signed and submitted to KPERS by designated agent at the time of the name change will be acceptable for name changes occurring during employment at the time of the name change will be acceptable for name changes occurring during employment.
  • Federal Employment Eligibility Verification form (I-9)
  • Driver’s License
  • Social Security card

If unable to provide proof of birth with any of the above, submit photocopies of two of the following:

  • Military record
  • Passport
  • School record, certified by the custodian of the record
  • Vaccination record, certified by the custodian of the record
  • Insurance policy application that shows the age or date of birth
  • Marriage records showing date of birth or age (application for marriage license or church record, certified by the custodian of the record or marriage certificate)
  • Other evidence such as signed statements from persons who have knowledge of the date of birth

Acceptable proof of name change | A photocopy of one of the following:

  • Marriage or other court records showing birth name and present name (If a person has had more than one name change, records submitted must reflect all name changes.)
  • Name Change Affidavit (KPERS-40NC) or other affidavit from a parent listing all name changes
  • Request for Member Information Change form (KPERS-12) signed and submitted to KPERS by designated agent at the time of the name change will be acceptable for name changes occurring during employment at the time of the name change will be acceptable for name changes occurring during employment.
  • Federal Employment Eligibility Verification form (I-9)
  • Driver’s License
  • Social Security card

Request for Member Information Change form (KPERS-12) signed and submitted to KPERS by designated agent at the time of the name change will be acceptable for name changes occurring during employment.

If unable to provide proof of birth with any of the above, submit photocopies of two of the following:

  • Name Change Affidavit (KPERS-40NC) or other affidavit from two persons declaring that the persons have known the applicant by all names in question.
  • Birth documents of natural child if document shows both the given name and the married name.
  • Other documents showing both names in question, such as school records, medical records, insurance policy application, etc.

School non-licensed employee

Non-licensed employees may retire the first of any month after their last day on payroll. KPERS must receive the member’s retirement application at least 30 days before his or her retirement date. Ideally, encourage members to submit their application 60 to 90 days ahead of time. This gives KPERS’ staff time to process the applications with the required documents and time for you to certify member pay.

School licensed employee (including teachers at community college)

Licensed employees have special guidelines for selecting a retirement date. School members under the “Continuing Contract Law” must wait until June 1 or after to retire.

If licensed employees choose to retire June 1, they must complete all work on their contract before June 1. Even if your employer’s second quarter does not end until after June 1, you cannot report salary past May 31 if the employee selects a June 1 retirement date. He or she cannot retire June 1 if working any part of June.

Licensed employee - Retirement & End Date: (June 1 & May 31), (July 1 & June 30), (August 1 & July 31), (September 1 & August 31)

Note: Employers must pay all compensation owed to the employees by the first payroll date after their selected retirement date.

Non-school retirement date

Non-licensed employees may retire the first of any month after their last day on payroll. KPERS must receive the member’s retirement application at least 30 days before his or her retirement date. Ideally, encourage members to submit their application 60 to 90 days ahead of time. This gives KPERS’ staff time to process the applications with the required documents and time for you to certify member pay.

Example: Kim submits her retirement application in early April. Her last day on the payroll is May 25. The retirement date she selects is the first of the following month, June 1. Kim could also retire the first of any month June 1 or after.

Non-school end date

Using the employer web portal, enter the employee’s last day on payroll as the end date. Choose retirement as the reason code.

Non-school members and non-licensed school employees

Employees may use pay earned through their last day at work as part of their final average salary.

Whether you deduct KPERS contributions from pay depends on the contract end date and retirement date.

Retirement date Contract end date Contributions
June 1 June 30 Deduct KPERS contributions from all pay through May 31
Do not deduct KPERS contributions from employee's June pay.
June 1 July 31 Deduct KPERS contributions from all pay through May 31
Do not deduct KPERS contributions from employee's June and July pay.
June 1 July 31 Deduct KPERS contributions from all pay through May 31
Do not deduct KPERS contributions from employee's June, July, August pay.
June 1 June 30 Deduct KPERS contributions from all pay through June 30
June 1 July 31 Deduct KPERS contributions from all pay through June 30
Do not deduct KPERS contributions from employee's July pay.
June 1 August 31 Deduct KPERS contributions from all pay through June 30
Do not deduct KPERS contributions from employee's July and August pay.
August 1 July 31 Deduct KPERS contributions from all pay through July 31
August 1 August 31 Deduct KPERS contributions from all pay through July 31
Do not deduct KPERS contributions from employee's August pay.
September 1 August 31 Deduct KPERS contributions from all pay through August 31

Note: Current statutes provide freedom in how you write contracts for your employees.

However, K.S.A. 74-4940 state that compensation must be paid in 12 equal monthly installments when reporting to KPERS.

Cheat Sheet: Summer Pay for Retiring School Employees

Reminder: Do not deduct KPERS contributions form any early retirement incentives or severance payments.

Early retirement incentive: a bonus paid to all retiring employees because of their pending retirement.

Early notification pay/Early resignation bonus: when an employee notifies the school of his/her plan to resign and in turn receives a stipend/bonus for letting the school know in advance. This stipend/bonus is KPERS wages.

  • If a nine-month or 10-month employee has previously been paid in 12 monthly checks and elects to take a payout at the end of May for the balance earned, the final average salary is subject to the 7.5% cap law for KPERS 2 members.
  • If a nine-month or 10-month employee has previously been paid in 12 monthly checks and does not elect to be paid for the balance earned in May, the employee must wait to retire until all wages have been paid (including all summer pay).
  • Please designate on the employer certification if employee was paid over nine, 10, or 12 months in previous years.

If licensed employees retire before the end of the school year, the following applies:

  • When reporting compensation, KPERS can only accept a prorated contribution amount based on the number of days of service in the last month.
  • Do not report additional pay such as sick leave, vacation leave, etc.
  • Do not give daily per diem or daily rates of pay.

For example:

Teacher’s last day is March 10. The teacher’s school contract is $48,000. Report 1/12 of the contract amount for each month in the calendar year through February $48,000/12 = $4,000.

Month Compensation Contributions
January $4,000 $240 (6%)
February $4,000 $240 (6%)
March $1,290.30 $77.62 (6%)
$4,000/31 (days in March) = $129.03 x10 days of service = $1,290.30

Board of Education's list of licensed employees:

  • Educator (teacher, administrator)
  • Audiologist
  • Speech pathologist
  • Occupational therapists
  • Physical therapist
  • Social Worker
  • Registered Nurse
  • Dietitian
  • Licensed professional counselor
  • Licensed clinical professional counselor
  • Psychologist
  • Orientation and mobility instructor

KPERS will calculate the member’s maximum monthly benefit amount. This amount will provide a basis for the rest of the options. The member may choose the maximum monthly benefit amount without any additional options. The member will receive a payment each month for the member’s entire lifetime. When the member dies, there is no continued benefit to a joint survivor. The member’s beneficiary will receive any remaining account balance that has not been paid out in benefits.

Joint-survivor options Retirement benefit If member dies first beneficiary receives
1/2 Maximum benefit (adjusted for age difference) 50% of member's reduced benefit for life
3/4 75% of member's reduced benefit for life
Same 100% of member's reduced benefit for life

Members cannot change the retirement option after he or she retires.

On all the joint-survivor options, if the joint survivor dies before the member dies, the retirement option chosen is canceled. The member’s benefit will increase to the original maximum monthly benefit amount. This is called the “pop-up feature.” The member cannot choose someone else to continue to receive a monthly benefit after their death.

With a life-certain option, the member will receive a reduced benefit for the rest of his or her lifetime. If the member dies within a guaranteed period of time from his or her retirement date, the beneficiary will receive the same monthly benefit for the rest of the guaranteed period of time.

The member can change his or her beneficiary at any time, and the member can have more than one beneficiary. The named beneficiaries will share equally the benefit for the remaining time period.

Option Percentage of max. benefit
5-year life-certain option 98%
10-year life-certain option 95%
15-year life-certain option 88%
The longer the guaranteed period the more the member's benefit is reduced to pay for the continuing benefit.

The partial lump-sum option is available in 10%, 20%, 30%, 40% or 50% amounts. The percentage the member selects determines the size of the lump sum and the resulting decrease in the member’s monthly benefit amount.

For example, a 40% PLSO payment would result in a single lump-sum payment equal to 40% of the actuarial present value of the member’s lifetime benefit, along with a permanent 40% reduction in the member’s regular monthly benefit.

If the member has chosen the maximum option, one of the life-certain options or the partial lump-sum option, the spouse must complete the spousal consent section of the retirement application. This verifies that the spouse has read, understands and agrees with the retirement option that the member has chosen. The spouse’s signature must be notarized.

In the event a Retirement System member divorces, any annuity, benefit, or accumulated contributions from the Retirement System may be subject to claims by a former spouse under the provisions of a qualified domestic relations order (QDRO).

A QDRO is a court order providing for:

  • Maintenance.
  • Child support.
  • Property division.

Retirement account assets are considered marital assets to the extent they have accumulated during the marriage. Most QDROs result from an agreement between the parties. A former spouse may not receive payment from the Retirement System under a QDRO unless and until the member:

  • Retires - If the member becomes eligible to retire with monthly benefits, the former spouse may be awarded either a lump-sum distribution or a percent of each monthly benefit.
  • Withdraws - If the member ends employment and withdraws his/her contributions, the former spouse may be awarded a portion of the lump-sum distribution.
  • Dies - If a member dies before retirement, the former spouse’s award may be enforceable against the refund of accumulated contributions or the lump-sum death benefit.

Retired members: The QDRO in the proper form may become effective immediately, resulting in the division of the member’s benefits.

Check your EWP To-Do list for certification

When KPERS receives an application for retirement, we will require a last day on payroll and certified contributions for that member. You will receive a request on your EWP To-Do list and under Certifications, asking you to report pay info for the employee who is retiring.

Quick Vid: Certifications