2018 EMPLOYER WORKSHOP. non-school #3 webinar. welcome Employer Workshop 2 Non-School #3

Transcription

1 2018 EMPLOYER WORKSHOP non-school #3 webinar welcome 2018 Employer Workshop 2 Non-School #3

2 welcome Topics Welcome Useful Tools Leaving Employment Retirement Working After Retirement KPERS Employer Workshop 3 Non-School #3 welcome Designated Agent Role Liaison between the Retirement System and the employer Relay Retirement System information to members in a timely manner Perform transactions using the Employer Web Portal KPERS Designated Agent Members 2018 Employer Workshop 4 Non-School #3

3 welcome Little Things That Help Send documents with Social Security numbers through Secure Upload on the Employer Web Portal. Include your agency ID number when contacting KPERS. Contact Fiscal Services for all pay reporting and option life questions. For everything else, contact Member Services. Refer to the Employer Manual. Include member s name and last 4 of SSN 2018 Employer Workshop 5 Non-School #3 welcome Employer Web Portal (EWP) User Roles Designated agents need to assign and closely maintain user roles for the EWP. Designated Agent Message Admin Bank OGLI (Optional Life Insurance) Death & Disability Pay Reports Enrollment Read Only Invoice 2018 Employer Workshop 6 Non-School #3

4 useful tools 2018 Employer Workshop 7 Non-School #3 useful tools Website (kpers.org) 2018 Employer Workshop 8 Non-School #3

5 useful tools KPERS Website (active member section) 2018 Employer Workshop 9 Non-School #3 useful tools Forms and Publications Click Forms and Publications to print needed member forms and publications. On Publications page, click Request a Paper Copy to order multiple forms Employer Workshop 10 Non-School #3

6 useful tools Member Web Portal Click here Member Login 2018 Employer Workshop 11 Non-School #3 useful tools kpers.org (employer section) 2018 Employer Workshop 12 Non-School #3

7 useful tools Employer Manual 2018 Employer Workshop 13 Non-School #3 useful tools Training and Webinars Register for webinars, watch recordings, get handouts & schedules 2018 Employer Workshop 14 Non-School #3

8 useful tools Resource Page for New EWP Quick Vid help videos, webinar recordings, archive, fliers, etc Employer Workshop 15 Non-School #3 useful tools Employer Web Portal 2018 Employer Workshop 16 Non-School #3

9 useful tools 2018 Employer Workshop 17 Non-School #3 useful tools Orientation Help From KPERS 3 Mobile App Specifically for new KPERS 3 employees Integrated with online KPERS account KPERS benefits intro Designate a beneficiary Sign up for optional life insurance Highlight budgeting & saving on their own 2018 Employer Workshop 18 Non-School #3

10 useful tools Screen Samples KPERS 3 Mobile App 2018 Employer Workshop 19 Non-School #3 useful tools Screen Samples 2018 Employer Workshop 20 Non-School #3

11 useful tools Contact KPERS 2018 Employer Workshop 21 Non-School #3 leaving employment 2018 Employer Workshop 22 Non-School #3

12 leaving employment Importance of End Dates Add to employee record as soon as possible If not vested, employee groups status determined by end date from old employer and enrollment date from new employer Can submit end dates in employee record, Pay Report and OGLI (up to 90 days ahead) 2018 Employer Workshop 23 Non-School #3 leaving employment Employee Search 2018 Employer Workshop 24 Non-School #3

13 leaving employment Employee Search 2018 Employer Workshop 25 Non-School #3 leaving employment Entering End Dates Click on Enter Date Select end date and reason Leave comments when applicable 2018 Employer Workshop 26 Non-School #3

14 leaving employment Leave of Absence What do I do? More about employees on leave of absence in Leaving Employment section of Employer Manual 2018 Employer Workshop 27 Non-School #3 leaving employment Leave of Absence Checklists In the employer manual, find employer checklists for different situations, like employee health, administrative and military leave Employer Workshop 28 Non-School #3

15 leaving employment Employee Resource 2018 Employer Workshop 29 Non-School #3 leaving employment Vested Members KPERS 1 & KPERS 2 Vested with 5 years Can withdraw at any time after 31 days If don t withdraw, guaranteed lifetime retirement benefit Account continues earning interest Can apply for retirement benefits when eligible 2018 Employer Workshop 30 Non-School #3

16 leaving employment Non-Vested Members KPERS 1 & KPERS 2 Not guaranteed a retirement benefit May leave contributions/interest w/retirement System for 5 years Account accrues interest for 5 years After 5 years, member forfeits service If return to KPERS-covered employment outside of grace period, member will be KPERS Employer Workshop 31 Non-School #3 leaving employment KPERS 3 Members Vested Vested with 5 years Accrue interest until eligible to retire At retirement, benefit is based on contribution account and retirement credits Non-Vested Member forfeits retirement credits If account is not withdrawn and member returns to KPERS-covered employment within 5 years, retirement credits are restored Interest paid for 2 years 2018 Employer Workshop 32 Non-School #3

17 leaving employment Withdrawal KPERS 1, 2 & 3 Employee must: Wait 31 days after employment ends. Submit KPERS-13 Application to Withdraw (takes about 4 weeks to process). Give up all Retirement System rights, benefits and services. KPERS sends 1099 tax form the following January 2018 Employer Workshop 33 Non-School #3 leaving employment Withdrawal When Ineligible Non-vested member moves from covered position to noncovered position with same employer (IRS: not a distributable event ) Contributions continue to earn interest while employee is in non-covered position Member goes on leave of absence, including military leave There s a legal dispute with employer 2018 Employer Workshop 34 Non-School #3

18 leaving employment Withdrawal Options Roll over contributions and interest into eligible retirement plan 457(b) deferred compensation plan 403(b) taxed deferred annuity 401(k) plan Traditional IRA Directly pay contributions and interest to employee KPERS withholds 20% for federal income tax If under age 59-1/2, IRS may assess additional 10% penalty 2018 Employer Workshop 35 Non-School #3 retirement 2018 Employer Workshop 36 Non-School #3

19 retirement Benefits Will Be Here Over $19 billion in assets and growing Keep funding needs in front of the Legislature About $1 billion in contributions each year Over $1 billion in investment income in FY2017 About $1 billion in benefits each year 2018 Employer Workshop 37 Non-School #3 retirement Retirement Dates 12 possible retirement dates First of the month following member s last day on payroll (or first of the month after KPERS receives application) 2018 Employer Workshop 38 Non-School #3

20 retirement Regular Retirement Eligibility (Unreduced Benefit) KPERS 1 Age 65 with 1 year Age 62 with 10 years Any age when age & years of service equal 85 points KPERS 2 Age 65 with 5 years Age 60 with 30 years 2018 Employer Workshop 39 Non-School #3 retirement Early Retirement Eligibility (Reduced Benefit) KPERS 1 Age 55 with 10 years KPERS 2 Age 55 with 10 years Greater reduction tables apply Early retirement permanently reduces monthly benefit 2018 Employer Workshop 40 Non-School #3

21 retirement Benefit Calculation KPERS 1 EXAMPLE 40,000 x 1.75% x 20 = $14, = $1,167 40,000 x 1.85% x 10 = + $7, = + $617 Combined (Total) $21, $1,784 KPERS 1: Service before January 1, 2014, is calculated at 1.75%. Service January 1, 2014, and after is calculated at 1.85%. KPERS 2 EXAMPLE Final Avg Salary x Statutory Multiplier x Years of Service = Annual Benefit Months in Year = Monthly Benefit 40,000 x 1.85% x 30 = $22, = $1, Employer Workshop 41 Non-School #3 retirement Calculating Final Average Salary KPERS 1 Hired before July 1, 1993, or in your Year of Service on July 1, 1993 Highest three years (12 quarters), or Highest four years (16 quarters) including additional compensation Hired on or after July 1, 1993 Highest three years (12 quarters) KPERS 2 Highest five years (20 quarters) 2018 Employer Workshop 42 Non-School #3

22 retirement Spike Law When add-on pay for accumulated sick leave, vacation or annual leave, etc., increases FAS by 15% more than if the employee had not been eligible to use add-ons in his final average salary. Applies only to KPERS 1 with membership date before July 1, 1993, or was in year of service. Employer pays actuarial increase Employer Workshop 43 Non-School #3 retirement Cap Law If an employee s compensation used in calculating the final average salary is more than 15% higher than the preceding year, the amount which exceeds the 15% will not be included in final average salary (FAS). KPERS 1 = Cap 15% KPERS 2=Cap 7.5% Compensation that is not capped Add-on (if membership date is before July 1, 1993, and 4-year FAS is used) Increase in compensation due to reclassification or re-allocation Overtime Compensation that is capped Part-time members over 15% because they work more hours (not overtime hours) Extra duties, like lawn mowing and landscaping Raises & bonuses 2018 Employer Workshop 44 Non-School #3

23 retirement Payment Options KPERS 1 & KPERS 2 Maximum Option Joint-Survivor Options Life-Certain Options Partial Lump-Sum Options 2018 Employer Workshop 45 Non-School #3 retirement Maximum Option Retiree will receive a monthly payment for life After retiree dies, KPERS will decide if there are any unused contributions payable to retiree s beneficiary No monthly benefit continuing to anyone else 2018 Employer Workshop 46 Non-School #3

24 retirement Joint-Survivor Option Retiree takes reduced monthly benefit based on age difference between retiree and joint survivor After retiree dies, joint survivor receives percentage of benefit Choose from 50%, 75% or 100% Pop-up feature: If joint survivor dies first, retiree s benefit pops back up to maximum monthly benefit amount and retiree can t choose someone else 2018 Employer Workshop 47 Non-School #3 retirement Life-Certain Options Choose 5, 10 or 15 years (starts on retiree s retirement date, not death date) Scenario Employee chooses 15-year life certain w/reduction to monthly benefit amount Employee dies 5 years after retirement date Beneficiary(s) receives benefit for 10 more years and then it stops If employee lives past 15 years, he or she receives reduced monthly benefit for life 2018 Employer Workshop 48 Non-School #3

25 retirement Partial Lump-Sum Options Taking a partial lump sum will permanently reduce benefit by that percent Partial lump-sum percentages are: KPERS 1 10%, 20%, 30%, 40% or 50% KPERS 2 10%, 20%, or 30% Rollover to another retirement account or paid to retiree If paid directly to retiree, KPERS withholds 20% for federal income taxes IRS may assess additional 10% penalty if retiree is under age 59 ½ 2018 Employer Workshop 49 Non-School #3 retirement Retirement Options 2018 Employer Workshop 50 Non-School #3

26 retirement Eligibility (KPERS 3) Monthly benefit is based on the employee s account balance (contribution account and retirement credit value) Normal Retirement (unreduced) Age 60 with 30 years Age 65 with 5 years Early Retirement (reduced) Age 55 with 10 years 2018 Employer Workshop 51 Non-School #3 retirement Benefit Calculations (KPERS 3) Employee s account balance (contribution account and retirement credit value) Actuarial factors 2018 Employer Workshop 52 Non-School #3

27 retirement Payment Options (KPERS 3) Base monthly option (10-year life-certain) Life-certain options based on a single-life annuity with 5-year 10-year 15-year Joint-survivor options 50% 75% 100% Partial lump-sum option for any dollar amount or percentage (up to 30%) with normal retirement Cost-of-living adjustment choice of 1% or 2% increase each year 2018 Employer Workshop 53 Non-School #3 retirement Retirement Options (KPERS 3) Age 24 & retiring at age Employer Workshop 54 Non-School #3

28 retirement Retirement Options (KPERS 3) With 2 years of service & retiring at age 65 Same person with a 6-year service purchase 2018 Employer Workshop 55 Non-School #3 retirement? Retirement Dates Help employees choose the best retirement date. Rounding quarters Using add-on pay Completing estimates 2018 Employer Workshop 56 Non-School #3

29 retirement Completing KPERS- 15E 2018 Employer Workshop 57 Non-School #3 retirement Estimates Using Member Account 2018 Employer Workshop 58 Non-School #3

30 retirement Estimates on KPERS Website 2018 Employer Workshop 59 Non-School #3 retirement Estimates on Employer Web Portal 2018 Employer Workshop 60 Non-School #3

31 retirement Retirement Information Center 2018 Employer Workshop 61 Non-School #3 retirement Certifications KPERS needs you to confirm that member received final pay 2018 Employer Workshop 62 Non-School #3

32 retirement 2018 Employer Workshop 63 Non-School #3 retirement Certifications 2018 Employer Workshop 64 Non-School #3

33 retirement Certifications 2018 Employer Workshop 65 Non-School #3 retirement Certifications 2018 Employer Workshop 66 Non-School #3

34 retirement Certifications 2018 Employer Workshop 67 Non-School #3 retirement 2018 Employer Workshop 68 Non-School #3

35 retirement 2018 Employer Workshop 69 Non-School #3 working after retirement 2018 Employer Workshop 70 Non-School #3

36 working after retirement No Prearrangement No pre-arrangement (written or verbal) to return to work Anytime before KPERS retirement date During the waiting period Penalties could apply Jeopardizes KPERS Qualified Status with the IRS Definition of Prearrangement SB 168 Section 2, subsection (9) facts and circumstances of the situation indicate that the employer and employee reasonably anticipated that further services would be performed after the employee s retirement Employer Workshop 71 Non-School #3 working after retirement No Prearrangement Employee Employee certifies on the Application for Retirement Benefits, as required by Kansas law, that he has made no prearrangement. Penalty for retiree Benefit suspended starting the month he returns to work, ending 6 months after he ends employment Will repay benefits paid while working after retirement 2018 Employer Workshop 72 Non-School #3

37 working after retirement No Prearrangement Employer Employer's appointing authority certifies there have been no prearrangements on the Employer Certification of No Prearranged Employment (KPERS-15R-E) form. Penalty for employer Pays all IRS-associated costs Pays costs of legal defense Pays costs for collecting repayment from the employee 2018 Employer Workshop 73 Non-School #3 working after retirement Waiting Period If under age 62, 180-day waiting period If 62 or older, 60-day waiting period Begins with KPERS retirement date 2018 Employer Workshop 74 Non-School #3

38 working after retirement Waiting Period Applies to all KPERS employers Permanent, seasonal and temporary positions Covered and non-covered positions 3rd-party positions Same or different employer No waiting period for any non-kpers employer 2018 Employer Workshop 75 Non-School #3 working after retirement Third Party and Independent Contractors Exempt from working-after-retirement rules if meet all these criteria. 3rd Party Not returning to position similar to one held before retirement Position activities not normally performed exclusively by employees Services are on limited-term basis Independent Contractors Not returning to position similar to one held before retirement Position activities not normally performed exclusively by employees Position meets IRS criteria for independent contractor Still must follow no- prearrangement and waiting-period rules Employer Workshop 76 Non-School #3

39 working after retirement Position Types Covered Positions Non-Covered Positions Earnings Limit No Limit No Limit Employer Contributions Waiting Period Up to $25,000: Reg Rate Above $25,000: 30% No Contributions (still enroll & report wages) Retire before age 62: 180 Days Retire age 62 or after: 60 Days 2018 Employer Workshop 77 Non-School #3 working after retirement Keep track of wages 2018 Employer Workshop 78 Non-School #3

40 working after retirement Getting Close to $25,000 Notification on EWP when retiree hits $22,000 A warning when retiree goes past $25, Employer Workshop 79 Non-School #3 working after retirement Getting Close to $25,000 You can also see the warning on the employee s Pay Reports Detail screen 2018 Employer Workshop 80 Non-School #3

41 working after retirement Exceptions (Do Not Enroll) Election poll workers Sub teachers without a contract Legislative staff Positions covered by KBOR Mandatory Retirement Plan Still must follow no- prearrangement and waiting-period rules Employer Workshop 81 Non-School #3 working after retirement Enrollment 2018 Employer Workshop 82 Non-School #3

42 KPERS Employer Workshop 83 Non-School #3 KPERS 457 What is KPERS 457? KPERS 457 is the State of Kansas Public Employees 457(b) Deferred Compensation Plan. It s an optional savings plan to help employees supplement their KPERS or KP&F pension for a more sound retirement Employer Workshop 84 Non-School #3

43 KPERS 457 Retirement Planning Replace 80% of income Consider expenses like health care KPERS + Social Security won t be enough Personal savings can fill the gap Start early to unleash power of compound interest 2018 Employer Workshop 85 Non-School #3 KPERS 457 Why KPERS 457? No cost to join and no minimum number of employees Matching contribution not required employers can if choose to Low administrative, service and fund costs for employees Salaried, noncommissioned local counselors across the state to educate and assist employees no sales pitches Interactive participant website that includes vested KPERS or KP&F pension no other savings plan can offer that KPERS does heavy lifting, taking on many fiduciary responsibilities for you and offering guidance in others you re not in it alone 2018 Employer Workshop 86 Non-School #3

44 KPERS 457 Your employer, no matter what size, can enjoy the benefits of this group plan. Even if you already have a voluntary plan, KPERS 457 might be a good fit Employer Workshop 87 Non-School #3 KPERS 457 More Information To find out more about making KPERS 457 or KPERS 401(a) available to your employees Laurie Rueschhoff (KPERS), 457 Plan Officer lrueschhoff@kpers.org phone: Employer Workshop 88 Non-School #3

45 education & training 2018 Employer Workshop 89 Non-School #3 Educational Opportunities Presentations Presentations and Webinars Basic KPERS 1,2, & 3 New Employees KPERS 3 Pre-Retirement Benefit Fairs One-on-One Counseling Employees New Designated Agent 2018 Employer Workshop 90 Non-School #3

46 Educational Opportunities Educational and Training Staff Dianna Berry Topeka Office Manager of Training/Education Justin Quick Topeka Office Cathy Rafferty Topeka Office Paige Ashley Topeka Office Alan Schuler Eastern Kansas Mel Abbott Central Kansas Ardith Dunn Western Kansas 2018 Employer Workshop 91 Non-School #3 Educational Opportunities Contact us To arrange educational opportunities, us 2018 Employer Workshop 92 Non-School #3

47 Thank you!