Full-Time and Public Safety Positions
City employees participate in several plans designed to provide 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 percent of their gross salary; the city is required to contribute an additional 7.65 percent as an employer match.
This plan provides retirement, survivor, disability and health insurance benefits.
Kansas Public Employees Retirement System (KPERS)
(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 percent of their salary. Employees are vested after five years of service.
Employees enrolled in KPERS also receive additional term life insurance coverage equal to 1.5 times their annual salary. This coverage is in addition to the coverage provided by the city. The employer contribution pays for this coverage.
KPERS membership also provides long term disability benefits. The employer contribution pays for this coverage.
Kansas Police and Firemen's Retirement System (KP&F)
(a defined benefit plan)
Participation is mandatory for public safety employees, who become members on their first day of employment and contribute 7.15 percent of their salary. Employees are vested after 15 years of credited service.
Retirement benefits are determined by a formula (final average salary x years of service x a factor of 2.5 percent). Members may retire with unreduced benefits at age 50 with 25 years of service, at age 55 with 20 years of service, or at age 60 with 15 years of service.
KP&F membership also provides disability and death benefits.
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 $18,000 in 2015 or 100 percent of annual salary) are made on a pre-tax basis, thus reducing a participant's immediate taxable income.
Employees are 100 percent 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:
Municipal Employees Pension Plan (MEPP) Tier 2
(a defined contribution plan)
Participation is automatic after three continuous years of employment for full-time employees.
The city contributes an amount equal to 4 percent of the employee's annual base salary. Vesting begins at 40 percent after four years of service, including the three year waiting period, and increases 10 percent per year and continues up to 100 percent after 10 years of service.
Employees may contribute up to an additional 10 percent of their salary on an after-tax basis.
In addition, if an employee contributes to the Deferred Compensation Plan, the City will make an additional annual contribution to the employee's MEPP account. This additional contribution will match 50 percent of the employee's contribution up to a maximum of 2 percent. For example, if an employee contributes 4 percent to the Deferred Compensation Plan, the City will contribute 2 percent to the employee's MEPP account.
Participants choose their own investment options from a variety of mutual funds.