Retiring from the University

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.

For more information visit the KPERS Retiree Home Page.

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. Now that you have decided to leave Kansas State University:

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 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.

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.

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.

When will my last paycheck come?

In most cases, your last paycheck will be issued consistent with the regular payroll cycle.

What happens to my accrued leave?

At retirement, the university pays out an employee’s accrued Compensatory Time (both regular and holiday), Vacation Leave, and a portion of Sick Leave. This payment is included in the employee’s final University paycheck unless you want to defer the amount into an Optional Savings Plan. Complete Form PER-19 if you wish to defer this payout. This will protect the amount tax-free until you start taking it out of the Optional Savings Retirement Plan. If you have not done so yet, we would recommend that you talk with your Financial and/or Tax Advisor prior to your retirement.

Vacation Leave

A retiring employee will be paid for accumulated vacation leave at the time of retirement to a maximum of 240 hours at the employee’s regular hourly rate of pay.

Sick Leave

The Sick Leave payout is determined based on years of service and amount of accrued leave as indicated in the table below. All leave is paid out at the employee’s hourly rate of pay. Also we would encourage you to consider if you want the difference between your total Sick Leave and the amount that is available to be paid/deferred at retirement to be donated to KSU’s Shared Leave program. If you do decide to donate, the Shared Leave Donation Form needs to be completed and returned to benefits@ksu.edu 2 weeks before you retire.

Years of Service	Leave Balance (in hours)	Hours Paid
8 or more	800	240
15 or more	1000	360
25 or more	1200	480

Compensatory Time

Accumulated overtime and holiday compensatory time are paid at retirement.

Discretionary Time

You are not eligible to receive any Discretionary Time due to retirement with Kansas State University

How do I start the Retirement Process?

Employees interested in retiring from the university should do the following:

• Determine retirement eligibility for KPERS retirement or Kansas Board of Regents Retirement
• Make an appointment to meet with the benefits team if more information is needed regarding retirement
• Complete the Notification of Retirement or write a letter of retirement and give to your supervisor.
• Human Resources will process the retirement when the PER-39, Change or Separation of Employment and notification of retirement/letter of retirement are received from the department.
• KPERS retirees should submit the Application for Retirement form (KPERS-15) at least 30 days prior to the KPERS retirement date. The retirement application can be submitted to KPERS via the Benefits Administration office. Please contact Benefits for more information.

Kansas Public Employees Retirement System (KPERS)

As a KPERS retiree, there are certain rules and limitations if you return to work for a KPERS covered employer after you retire. These rules and limitations do not apply if you work for an employer that is not a KPERS covered employer.

The State of Kansas is considered one employer. State agencies, boards, commissions and Board of Regents institutions are all part of the State of Kansas. Going from one to another is not considered changing employers.

Any rehire of a retiree is subject to normal university recruitment approval process. In addition, Human Resources Benefits must approve the rehire of all retirees. You can find more information on the KPERS website.

No Prearrangements
KPERS retirees cannot make prearrangements to return to work for any KPERS covered employer. That means no communication in any way about an intent to return to work. This includes both before retirement and during the waiting period discussed below.

Waiting Period
As a retiree you cannot return to work for any KPERS covered employer until a waiting period is satisfied. The time is calculated based on your KPERS retirement date (which will be the first day of a month), not your last day on the university’s payroll.

For individuals that retired before January 1, 2018, the waiting period is 60 days.

For individuals that retire on or after January 1, 2018, the waiting period is 60 days if you were age 62 or older at the time of retirement. If you were under age 62 at the time of retirement, the waiting period is 180 days.

Kansas Board of Regents (KBOR) Mandatory Retirement Plan

IRS rulings and case law confirm that access to retirement funds requires a bona fide separation from service. Consequently, rehiring a retiree must be in the best interest of the University and within the bounds of this policy. The retiree may not be rehired into the same position with job duties and job title identical to those which he/she held before retirement. Any rehire is subject to the normal university recruitment approval process. In addition, Human Resources must approve the initial rehire of all retirees prior to allowing the retiree to work in order to document compliance with the following policies.

A retiree who participated in the KBOR mandatory retirement plan may be rehired no earlier than 60 calendar days after the retirement date. Access to retirement funds will be dependent upon prevailing KBOR and retirement provider policy. See the Kansas Board of Regents Bona fide Separation from Service (pdf) directive.

Group Health Insurance (GHI) (30 day deadline)

If you had health insurance as an active employee, your coverage is discontinued on the date of separation from the University. If you elected to continue with the State of Kansas GHI plan, you will receive an email from the State of Kansas to enroll in coverage as a retiree on-line. Should you need assistance please contact the Retiree/Direct Bill Membership Group: 866-541-7100.

Health Savings Account (HSA)

Funds in your HSA are yours to use until the funds are exhausted. Contact NueSynergy at 855-750-9440 for questions concerning your account.

Health Reimbursement Account (HRA)

Funds in the HRA are only available for use through the end of month in which you terminated. Contact NueSynergy at 855-750-9440 for questions concerning your account.

Flexible Spending Account (FSA)

If you had a health care or dependent care flexible spending account, contact NueSynergy 855-750-9440 for questions regarding your account and claim submission.

Standard Basic and Optional Life Continuation Options

Retiring employees are eligible to continue life insurance. Please contact Standard Insurance Company 844-289-2306 should you have questions.

Should you desire to continue your basic and optional group life policy, you may port (pdf), premiums do increase. You may also elect to convert your basic and optional coverage to a whole life policy (pdf), premiums are significantly more expensive.

Faculty and unclassified professionals who have completed at least ten years of honorable full-time service at Kansas State University may request to be designated at the time of their full retirement by an emeritus title equivalent to their highest rank or title.

The retiring faulty or unclassified professional will make a request to the department/unit head who will forward the request and approval on to the provost or appropriate vice president for a final determination.

The Limited Health Care Bridge provides a mechanism through which the University may contribute to the cost of health insurance to assist unclassified employees wanting to retire before qualifying for Medicare coverage.

What is it?

The program provides for payment of both the employee and employer medical and dental insurance premiums for a negotiable length of time up to the date the employee becomes eligible for Medicare, but no longer than three years. The premiums will be based on the coverage level (Employee Only, Employee and Spouse, etc.) enrolled in by the employee at the time of retirement and will be paid by the University directly to the State Employee Health Plan Retiree/Direct Bill program.

Who is Eligible?

Faculty and unclassified staff who are eligible for retirement with a minimum of ten years of full-time service and who are at least 55 years old will be eligible to propose retirement with limited health care bridge participation. Participants in the Phased Retirement Program or any other State of Kansas or University retirement incentive program are not eligible to participate in the Limited Retirement Health Care Bridge Program.

Participation in the Limited Retirement Health Care Bridge Program is a privilege, not a right, and is voluntary for both the employee and the University. This program is used only when in the best interest of the University and the employee.

How Do I Apply?

An employee who wants to participate in the program must submit a written request to retire and to participate in this program to the department/unit head or academic dean.

Who Approves the Request?

If the department/unit head supports the request, the department will complete the Limited Health Care Bridge Transmittal Form and submit to the dean. If the dean supports approval, he/she will then forward to Human Resources – Benefits for processing and to route for final approval by the provost or appropriate vice president.

Common Questions

Who pays for this program?

• The program is paid by the department. Therefore approval of the Limited Health Care Bridge Agreement is often determined by funding available.

Questions?

Contact Benefits or call (785) 532-6277.