2018 EMPLOYER WORKSHOP. state #3 webinar. welcome Employer Workshop 2. State

Transcription

1 2018 EMPLOYER WORKSHOP state #3 webinar welcome 2018 Employer Workshop 2

2 welcome Topics Welcome Useful Tools Membership Enrollments Long-term Disability Death Benefits Optional Life Insurance Pay Reporting Leaving Employment Service Purchases Retirement Working After Retirement KPERS Employer Workshop 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

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 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

4 useful tools 2018 Employer Workshop 7 useful tools Website (kpers.org) 2018 Employer Workshop 8

5 useful tools KPERS Website (active member section) 2018 Employer Workshop 9 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

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

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

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

9 useful tools 2018 Employer Workshop 17 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

10 useful tools Screen Samples KPERS 3 Mobile App 2018 Employer Workshop 19 useful tools Screen Samples 2018 Employer Workshop 20

11 useful tools Contact KPERS 2018 Employer Workshop 21 leaving employment 2018 Employer Workshop 22

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 leaving employment Searching for Employee 2018 Employer Workshop 24

13 leaving employment Searching for Employee 2018 Employer Workshop 25 leaving employment Entering End Dates Click on Enter Date Select end date and reason Leave comments when applicable 2018 Employer Workshop 26

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 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

15 retirement 2018 Employer Workshop 29 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 30

16 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 31 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 32

17 retirement Early Retirement Eligibility 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 33 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 34

18 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 35 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 36

19 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 37 retirement Payment Options Maximum Option Joint-Survivor Options Life-Certain Options Partial Lump-Sum Options 2018 Employer Workshop 38

20 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 39 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 40

21 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 41 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 42

22 retirement Retirement Options 2018 Employer Workshop 43 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 44

23 retirement Benefit Calculations (KPERS 3) Employee s account balance (contribution account and retirement credit value) Actuarial factors 2018 Employer Workshop 45 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 46

24 retirement Retirement Options (KPERS 3) Age 24 & retiring at age Employer Workshop 47 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 48

25 retirement Retirement Dates Help employees choose the best retirement date.? Rounding quarters Using add-on pay Completing estimates 2018 Employer Workshop 49 retirement Completing KPERS- 15E 2018 Employer Workshop 50

26 retirement Estimates Using Member Account 2018 Employer Workshop 51 retirement Estimates on KPERS Website 2018 Employer Workshop 52

27 retirement Estimates on Employer Web Portal 2018 Employer Workshop 53 retirement Retirement Information Center 2018 Employer Workshop 54

28 retirement Certifications KPERS needs you to confirm that member received final pay 2018 Employer Workshop 55 retirement 2018 Employer Workshop 56

29 retirement Certifications retirement Certifications 2018 Employer Workshop 58 Non-School

30 retirement Certifications 2018 Employer Workshop 59 retirement Certifications 2018 Employer Workshop 60

31 retirement 2018 Employer Workshop 61 retirement 2018 Employer Workshop 62

32 working after retirement 2018 Employer Workshop 63 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 64

33 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 65 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 66

34 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 67 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 68

35 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 69 working after retirement Position Types Covered Positions Non-Covered Positions Earnings Limit No Limit No Limit Employer Contributions Up to $25,000: Reg Rate Above $25,000: 30% No Contributions (still enroll & report wages) Waiting Period Retire before age 62: 180 Days Retire age 62 or after: 60 Days 2018 Employer Workshop 70

36 working after retirement Keep track of wages 2018 Employer Workshop 71 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 72

37 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 73 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 74

38 working after retirement Enrollment 2018 Employer Workshop 75 KPERS Employer Workshop 76

39 KPERS 457 What is KPERS 457? KPERS 457 is the 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 77 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 78

40 KPERS 457 More Information To find out more about KPERS 457, Laurie Rueschhoff (KPERS), 457 Plan Officer phone: Employer Workshop 79 education & training 2018 Employer Workshop 80

41 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 81 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 82

42 Educational Opportunities Contact us To arrange educational opportunities, us 2018 Employer Workshop 83 Thank you!