RETIREMENT PLANS

Effective: August 15, 2024

Purpose: To outline the different retirement plans available to University employees.

Scope: This policy applies to all employees campus wide.

Responsible Office: Human Resources; Academic Affairs

Policy Statement:

Mandatory Retirement Plan – Unclassified Positions

The Kansas Board of Regents established a mandatory retirement plan in accordance with K.S.A. 74-4925.

All faculty and unclassified employees, who are employed .5 FTE time or more, are eligible and will participate in the plan. Any faculty or unclassified employee who enters into the Phased Retirement Program, as authorized by K.S.A. 76-746, and who is employed at least .25 FTE or more, will participate in the mandatory retirement plan in the manner as prescribed by the law.

All employees, who are deemed eligible, will begin participation in and contribution to the retirement plan on the first day of the pay period coinciding with or next following the completion of one (1) year of service in a benefits-eligible position. Failure of an employee to participate when eligible in the retirement plan will be cause for the immediate termination of the employee.

K.S.A. 74-4925 provides a newly employed person, in an eligible position, may have the required one (1) year waiting period waived and begin immediate participation in the Kansas Board of Regents Mandatory Retirement Plan, if the prospective employee obtains from Human Resources and completes a document which provides acceptable documentation to the Human Resources Office by the effective date of appointment that the employee:

• Participated in a retirement program resulting from employment with an institution of higher education located in the United States to which employer contributions have been made for one (1) year (365 days) within the five (5) year period immediately preceding employment with Emporia State University; OR
• Participated in a State of Kansas mandatory retirement plan (other than the KBOR plan) in which the employee served at least one (1) year (365 days), including time in a waiting period, within the five (5) year period immediately preceding employment with Emporia State University.

Contributions to the mandatory retirement plan will be made on a regular basis during years of participation and will be paid on the gross salary according the following schedule:

Plan Contributions as a Percent of Gross Earnings

Employee Pays: 5.5%
University Pays: 8.5%
Total: 14.0%

All of the money in the employee’s retirement account is vested immediately. All accumulations must remain in the mandatory retirement account as long as the individual is employed in the university system governed by the Kansas Board of Regents. Contributions are made on a pre-tax basis in accordance with Section 403(b) of the Internal Revenue code, which reduces federal and state taxes immediately.

There shall be no mandatory retirement age for eligible employees. For purposes of eligibility for certain statutory retirement benefits, such retirement shall not occur before the 55th birthday. However, individuals who seek to retire from age fifty-five (55) to fifty-nine (59) must have ten (10) years of service in a benefits-eligible position at a Regents institution or with the Board of Regents staff.

Kansas Public Employees Retirement System (KPERS)

University Support Staff

Participation in the Kansas Public Employees Retirement System (KPERS) is mandatory for all state University Support Staff employees who are employed in qualifying, permanent positions. KPERS is a State of Kansas program, and Emporia State University administers the program in compliance with state requirements. Additional information on KPERS is available through the ESU Office of Human Resources or the KPERS website.

Unclassified Positions

In lieu of participating in the Kansas Board of Regents mandatory retirement plan, eligible employees, having accrued retirement benefits under the Kansas Public Employees Retirement System (KPERS), may elect to continue participation in KPERS. Conversely, participants in the Board of Regents plan, transferred or reclassified to a position that qualifies for participation in KPERS, may elect to continue participating in the Board of Regents retirement plan. Only one (1) such election may be made by an employee during an employee’s lifetime.

Kansas Police and Firefighter’s Retirement System

The Kansas Police and Firefighters (KP&F) is a division of and fully coordinated into the administrative structure of KPERS. Membership in KP&F is mandatory for all University classified police officers who are employed in permanent positions which require at least 1,000 hours of work per year. There is no waiting period; membership is effective upon the date of hire.

Both the University and the employee contribute to KP&F. The employee's contribution currently is seven percent (7%) of gross wages earned and is a federally tax-sheltered deduction from the employee's check. The University's contribution rate is established annually by the KPERS Board of Trustees. The University makes a contribution to purchase death and disability insurance for each participating employee at no cost to the employee.

Vesting in KP&F is dependent on an employee's date of hire and length of service. Employees who are terminating employment before retirement may make an application to withdraw their contributions plus interest; employer contributions would be forfeited. Accumulated interest is credited to accounts on June 30 of each year, based on accumulations through December 31 of the previous year.

Other items discussed under KPERS are also applicable to KP&F members, such as: Accidental Work-Related Death Benefit, Group Disability Insurance, Group Life Insurance, and Optional KPERS Group Life Insurance.

Group Life Insurance

Employees in regular positions who are employed half-time or more have this coverage from the date of employment. The amount of this coverage is currently 150% of the employee's annual salary. Coverage continues until age eighty-five (85), termination of employment, or retirement, whichever occurs first. This coverage may be converted to an individual policy at the option of the employee within thirty-one (31) days of when group coverage ceases.

Phased Retirement – Unclassified

This program is available to faculty and unclassified employees who are benefit eligible, have attained the age of fifty-five (55), and have completed ten (10) years of full-time service with one (1) or more of the Board of Regents institutions. The program provides a faculty member or unclassified employee the opportunity to phase retirement over a selected period of time not to exceed five (5) years.

The participant’s appointment must be at least .25 FTE but not more than .75 FTE in the phased retirement program. The participant’s salary is reduced according to the FTE appointment, but benefits (health insurance, retirement contributions, death and disability coverage, leave earnings) remain at the full-time rate. Participants may partially withdraw or annuitize their Board of Regents mandatory retirement plan while on the phased retirement plan. Participants must retire at the end of the agreement period. Information regarding the Phased Retirement Program is available in Human Resources or in the Office of Vice President for Academic Affairs.

Social Security

The University participates in the federal social security program. All employees are covered. Employees are required to contribute to social security and ESU matches the contributions.

The amount of tax withheld from the paycheck is in accordance with current rates and is matched by the state. Employees desiring more information should contact Human Resources or a Social Security branch office.

Voluntary Tax-Sheltered Annuity Program

Eligible employees may participate in a voluntary tax-sheltered annuity program (VoTSA) immediately upon employment. This program allows employees to set aside part of their salary and postpone the income tax liability on it until it is paid to them at some future date, such as retirement. Employees may purchase an annuity with any company selected by the employee and approved by the Board of Regents. To receive an individualized maximum exclusion allowance calculation and for more information about the VoTSA plan, contact the Payroll Office.

Deferred Compensation

A voluntary 457(b) tax-sheltered annuity plan is available to State employees. Employees who are interested in this plan should contact the Payroll Office for more information.

Definitions: All words and phrases shall be interpreted utilizing their plain meanings unless otherwise defined in another University or Board of Regents policy or by statute or regulation.

Procedures: All procedures linked and related to the policies above shall have the full force and effect of policy if said procedures have first been properly approved by the University’s administrator in charge of Human Resources or Academic Affairs Procedures.

[Human Resources procedures - coming soon]

[Academic Affairs procedures - coming soon]

Related Policy Information: K.S.A. 74-4925; K.S.A. 76-746;