Working After Retirement

Transcription

1 KPERS Webinar Working After Retirement Kansas Board of Regents

2 TOPICS Review 2015 Look at 2016 Legislation Preview EWP Screens Schedule 2

3 2015 LEGISLATION OVERVIEW Enroll all retirees (KPERS & KBOR) Employer contributions on all retiree compensation day 1, dollar 1 (KPERS & KBOR) Earnings limit $25,000 (KPERS & KBOR) New hardship exemption Grandfathered retirees 3

4 2016 LEGISLATION OVERVIEW No prearrangement o Certifications o Penalties Hardship exemption o Extension limits/approval o Employer rate o 4-year individual limit Sunset date

5 KBOR RETIREMENT PLAN KPERS Retirees Returning to Work in KBOR Plan Position Enroll all KPERS retirees Earnings limit $25,000 No prearrangement o Certifications o Penalties 60-day waiting period Contribution rate 5

6 NO PREARRANGEMENTS (EMPLOYEE) Before retirement During 60-day waiting period Employee certifies no prearrangement on retirement application K-15 Penalties 6

7 NO PREARRANGEMENTS (EMPLOYER) Before retirement During 60-day waiting period: No work and no prearrangement to work Employer (appointing authority) certifies when hiring retiree 7

8 NO PREARRANGEMENTS Definition 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. SB 168 Section 2, subsection (9) Penalties o Employee: suspend benefit; repay o Employer: all associated costs Qualified status with IRS 8

9 HARDSHIP EXEMPTION Exemption for one year (3) one-year extensions 4-year individual limit Employer contribution rate on exempt retiree wages 30% 9

10 EMPLOYER CONTRIBUTION RATES STATE Category Same or Different employer Accepted position 5/1/15 or after Same employer Accepted position after 7/1/06 but before 5/1/15 (grandfathered) Different employer Accepted position after 7/1/06 but before 5/1/15 (grandfathered) Same employer Returned before 7/1/06 & working on 5/15/15 (great-grandfathered) Different employer Returned before 7/1/06 & working on 5/15/15 (great-grandfathered) Earnings Limit $25,000 Contribution Rates FY % (reg statutory) FY % (reg statutory) $25,000 0% 0% None 16.77% (ADC+6) 15.62% (ADC+6) $25,000 0% 0% None 0% 0% Hardship (beings 7/1/16) None 30% 30% 10

11 HARDSHIP EXEMPTION Assurance protocol (KPERS) o o Advertised position 30 days And one of following: No applications None met screening criteria None w/credentials 11

12 NEW RULES SUNSET 2020 June 30, 2020 Most new rules Stays after sunset: o o prearrangement certification prearrangement penalties 12

13 GRANDFATHERED RETIREES Accepted position before 5/1/2015 Stay with same job/employer and have no break in service 13

14 ON THE WEB PORTAL (HARDSHIP) 14

15 ON THE WEB PORTAL (HARDSHIP) 15

16 ON THE WEB PORTAL (HARDSHIP) 16

17 ON THE WEB PORTAL (HARDSHIP) 17

18 EXISTING EMPLOYEES Enroll only new hires and non-covered employees Automatic categorizing Current employees moved automatically 18

19 ON THE WEB PORTAL (ENROLL) 19

20 ON THE WEB PORTAL (ENROLL) 20

21 ON THE WEB PORTAL (ENROLL) 21

22 ON THE WEB PORTAL (ENROLL) 22

23 ON THE WEB PORTAL (ENROLL) 23

24 ON THE WEB PORTAL (ENROLL) 24

25 SCHEDULE Now SSN Lookups Now Screen Capture Preview (PDFs) End of May Two-Week EWP Preview June 6 In Production (Start Enrolling) July 1 New Rules Start 25

26 EMPLOYER RESOURCES Employer Manual EWP How-To (Lite) Webinar recording 26