Employer Manual
Revised:
The Retirement Info Center is the resource for members within 5 years of retirement. Find answers to the when, how-much and how-to questions, and a lot more.
| 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 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:
Compensation that is NOT capped:
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:
Documents needed for retirement
Use Secure Upload on the EWP to send documents to KPERS.
Member
Joint annuitant
Acceptable proof of birth | A photocopy of one of the following:
If unable to provide proof of birth with any of the above, submit photocopies of two of the following:
Acceptable proof of name change | A photocopy of one of the following:
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:
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 licensed employees retire before the end of the school year, the following applies:
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:
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:
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:
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.