Part Time Retirement
City employees participate in several plans designed to provide them with a source of income during retirement. Participation in the Deferred Compensation Plan (457) is voluntary and is funded by payroll deduction; participation in the other plans is mandatory, based on employment classification.
Federal Insurance Contributions Act (FICA)
This federally required plan is administered through the Social Security Administration and requires all employees to contribute 7.65% of their gross salary; the city is required to contribute an additional 7.65% as an employer match.
This plan provides retirement, survivor, disability and health insurance benefits.
(a defined benefit plan)
Participation is mandatory for Full-Time and Part-Time B employees, who become members on the first day of employment and contribute 6% of their salary. Employees are vested after five years of service.
Retirement benefit amounts are determined by a formula (final average salary x years of service x a factor of 1.75%).
Participants may retire with unreduced benefits at age 65 with five years of service or at age 60 with 30 years of service.
Employees enrolled in KPERS also receive additional term life insurance coverage equal to 1 1/2 times their annual salary. This coverage is in addition to the coverage provided by Standard Life Insurance. The employer contribution pays for this coverage.
KPERS membership also provides long term disability benefits. The employer contribution pays for this coverage.
Deferred Compensation Plan (457)
This is a supplemental retirement plan. Participation is voluntary and there is no waiting period to begin contributing. Contributions (up to the lesser of $16,500 in 2011 or 100% of annual salary) are made on a pre-tax basis, thus reducing a participant's immediate taxable income.
Employees are 100% vested at all times, although monies are not available until retirement or termination except in cases of extreme financial hardship
There are no employer contributions to this plan.
Participants choose their own investment options from a choice of more than 60 mutual funds and similar investment products that are offered through two different deferred compensation providers: