Kpers Life Insurance After Retirement

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Withdrawal Options & Process

Life Insurance to Fund Retirement (IUL Explained)

You can apply to withdraw anytime 31 days after you end employment. If you withdraw, you will give up all Retirement System rights, benefits and service credit. Employer contributions made on your behalf stay with the Retirement System.

You can receive your contributions and interest as a direct payment to you or roll over the amount into an eligible retirement plan. The decision to withdraw could affect your financial future, especially if you have many years of public service and accumulated contributions. Seek professional tax advice before withdrawing.

Options for Withdrawing Your Contributions

Option #1

Roll your contributions over into an eligible retirement plan. This option allows you to defer paying taxes later.

  • 457 deferred compensation plan
Have your contributions paid directly to you. You will owe federal taxes and possibly a 10% federal penalty.
Reasons to Rollover Contributions Instead of Taking a Direct Payment
  • Preserve your past efforts toward saving for retirement.
  • Keep from paying taxes right away, giving your money more time to compound.
  • Avoid paying federal penalties for early distribution.

The Withdrawal Process

Helpful Links

Kpers And Your Retirement

When you are working, your employer may contribute to KPERS. Depending on your employer, your benefit may be taxable or nontaxable, or it may be both. If you are unsure of your benefits, you should talk to your HR manager or other employee benefits representatives about KPERS. You can also take advantage of in-person retirement counseling sessions. A benefits representative will explain the various options available and help you make the right decision.

Working after retirement is possible through KPERS, but you will have to be over 62 years old in order to participate. KPERS allows you to work for up to ten years after retiring, but there is no limit on how much you can earn in that time. In addition, you will not be contributing to KPERS for any additional years. If you have 10 years of service, you can also retire early from KPERS. However, you will receive a reduced benefit based on your age.

Your employer must be a member of KPERS before you can receive benefits. Employees are allowed to contribute 7.15% of their income to KPERS. You are not allowed to borrow from your contributions. You can review the contributions as of December 31 each year. Some employers print out year-to-date contributions on their pay notices. State employees can check their contributions at the Employee Self-Service Center. In order to get the most from KPERS, its best to sign up for the states retirement program and be a member of the states pension system.

City Of Prairie Village

Besides offering competitive wages and a great working environment, the City of Prairie Village offers a wide range of benefits to employees and their families. Below is a brief summary of benefits offered to City employees.

For more information about the City’s benefit program, contact Human Resources at 913-385-4664.

Vacation

Full-Time EmployeesEmployees begin earning paid vacation time upon date of hire. Paid Vacation Time is accrued on a per-pay period basis, resulting in the following annual vacation benefit based on years of service:

0 – 5 years of service: 11 days
6 – 10 years of service: 15 days
11 – 15 years of service: 20 days
16 – 20 years of service: 23 days

Part-Time, Seasonal and Temporary EmployeesPart-Time, Seasonal and Temporary employees do not earn vacation benefits.

Sick Leave

Employees begin earning paid sick leave upon date of hire. A trial or regular employee earns and accrues 3.39 hours of sick leave on a bi-weekly basis to a maximum of 11 days per calendar year. Sick leave with pay may be accumulated to a maximum of ninety four days.

Part-Time, Seasonal and Temporary EmployeesPart-Time, Seasonal and Temporary employees do not earn sick leave benefits.

Paid Holidays

The City recognizes the following paid holidays:

  • President’s Day
  • The Friday following Thanksgiving Day

Insurance Benefits

Health Insurance

Dental Insurance

Vision Insurance

Life Insurance

Long-Term Disability Insurance

Also Check: Is It Better To Have Multiple Retirement Accounts

Debt & Your Financial Goals

Do you set financial goals and work reach them?

Its often said that youre more likely to achieve your goals if you write them out. Take some time to think about the financial things you want to accomplish . Consider the cost and your timeline to see how much money you need to save. Its also a good idea to size up your finances at least once a year. Then do a year-to-year comparison to see how far youve come.

How much debt and do you have a plan for it?

Knowing how much you owe and working your payoff plan is key. Getting that monkey off your back will help you find the money for other things like saving for retirement or your kids education. Debt Repayment.

Helpful Links

  • Kansas Public Employee Retirement System
  • 611 S. Kansas Ave, Topeka, KS 66603
  • Toll-free: 1-888-275-5737

Save Save More Save Often

Career Opportunities

Are you saving 10-15% for your retirement?

KPERS and Social Security wont be enough. You need to save on your own, too. Some experts suggest saving 10-15% of your income. Youre already contributing to KPERS, so you are part of the way there. The State of Kansas and some local employers offer KPERS 457, a deferred compensation plan. Check with your employer about savings options where you work.

Does your net worth grow each year?

This is the difference between what you own and what you owe. Its a good snapshot of where your finances stand. As you pay off debt and increase your savings, your net worth should grow. If it starts to decrease, that can be a sign you need to review your spending.

Do you have 3 months saved in an emergency fund?

Cars in the shop? Owe the doctor? Need a new dishwasher? Your emergency fund is there to help with those surprises..

3 months enough?

3 months is a standard time, but you need to decide if you need to save more. You can figure out how much you’ll need by looking at what you spend.

Recommended Reading: How Do You Calculate Retirement Income

Upon Termination Of Employment Or Retirement

Within 31 days after ending employment an employee may convert or port their life insurance to an individual policy. An individual policy is not available at group rates.

While the cost of this insurance is competitive with that of other carriers, the primary advantage is that issuance of the policy does not require proof of good health of the former employee. The employee should contact their designated agent to receive information on converting group life insurance.

Kansas Public Employees Retirement System

  • Employee Benefits & Leaves
  • KPERS is a state-wide defined benefit retirement plan that provides a monthly benefit upon your retirement. Eligible JCCC employees are required to participate in KPERS. All JCCC employees hired in a covered position must contribute 6 percent of their monthly gross earnings to KPERS.

    After five years of service, you become vested and are guaranteed a retirement benefit even if you leave covered employment. You can receive reduced benefits from KPERS beginning as early as age 55 if you have 10 years of service.

    Please utilize the following link that will take you to the KPERS member portal where you can access the KPERS Membership Guide publication and find more detailed information on KPERS benefits

    NOTE: JCCC KPERS retirees who go to work for another KPERS Retirement System employer are subject to KPERS post-retirement earnings limitation provisions. Information on the earnings limitation provisions are provided below and can be found utilizing the KPERS link above.

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    Kpers Optional Group Life Insurance

    Benefits-eligible employees may purchase from $5,000 to $300,000 in optional group life insurance coverage. Coverage of $250,000 is guaranteed, regardless of health, when the insurance company receives the employees application within the first 30 days of employment. Premiums are paid through payroll deduction.

    This coverage may be continued after retirement or resignation by converting the term policy to an individual life policy and paying the applicable premium directly to the insurance company.

    When Eligible: Coverage is available at any time during employment, subject to underwriting approval. The guaranteed coverage is available only when the application is received by the insurance company within 30 days from the employees date of employment.

    Who Pays: The employee pays premiums based on age and amount of insurance coverage purchased.

    Are You In Debt

    Health Insurance After Retiring

    Ideally, you will arrive at retirement age debt-free, but thats not always the case. In fact, a 2018 report stated that 46% of homeowners age 65 and older still carried a mortgage 32% of people age 70 and over were still making house payments in 2019.

    Student loan debt is forecast to be a problem for an increasing number of retirees in the future. Over the past five years, student loan debt held by senior citizens has increased 71.5%either the remnants of their own loans or because of co-signing loans for children or grandchildren.

    Experts say that continuing life insurance coverage might be well-advised if youre still paying off debt. Take a better safe than sorry approach unless those debt payments are such a small part of your net worth that there would be no risk of financial difficulty.

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    Do You Still Earn Outside Income

    Given the basic function of life insurance, you may have a pretty good idea of your need for ongoing coverage. In the most basic sense, if you retire and no longer work to make ends meet, you probably dont need it. If youre living off Social Security along with your retirement savings, theres no income to replace.

    When you die, your family will continue to receive payouts from your retirement accounts, and Social Security pays a survivor benefit. However, that survivor benefit varies based on your unique situation and it won’t be as much as Social Security paid while you were alive. Make sure you know your benefit before making a decision on life insurance.

    Know What You Can Afford

    Do you spend less than you make?

    Your cash flow compares the money coming in to what’s going out . If you do the math and you’re coming up in the red, it’s time to check your spending. It’s a good idea to check your cash flow as often as you get. But remember, most bills are monthly, So if you’re paid bi-weekly, review your cash flow every two week to help plan for all your expenses and due dates.

    Does your net worth grow each year?

    This is the difference between what you own and what you owe. Its a good snapshot of where your finances stand. As you pay off debt and increase your savings, your net worth should grow. If it starts to decrease, that can be a sign you need to review your spending.

    Do you use a budget?

    Want to be financially fit? You need to budget. Its a big key to paying off debt, growing your nest egg and setting aside money for the fun things in life.

    50/30/20 Rule

    Try the 50/30/20 rule for an easy way to budget responsibly. It divides your month after-tax income into three spending catergories: 50% for needs, 30% for wants and 20% for savings/investing/paying off debt.

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    Optional Group Life Insurance

    Optional group life insurance is coverage beyond your basic life insurance. You pay the cost of this coverage through payroll deduction. Many employers offer optional group life insurance, including the State of Kansas. Check with your employer.

    Coverage amounts range from $5,000 to $400,000 in $5,000 increments. New employees are eligible for $250,000 of guaranteed coverage within 31 days of their hire date. You must provide proof of good health for amounts over $250,000.

    Guaranteed Coverage :

    only available w/new hire, open enrollment or family status change
    Other Optional Insurance Details
    • You can start or increase coverage any time with proof of good health.
    • With the “Accelerated Death Benefit,” if you are diagnosed as terminally ill with 24 months or less to live, you may be eligible to receive up to 100% of your life insurance instead of your beneficiary receiving the insurance amount.
    • Starting in January 2022: You have accidental death and dismemberment benefits. This covers you if you experience an occupational assault, or accidental death and dismemberment. Some exclusions apply. For full details, see the Optional Life Insurance brochure or the Certificate of Insurance.
    OGLI Documents

    Life insurance ends when you leave employment. However, you can continue your .

    Do You Need Life Insurance After You Retire

    Career Opportunities

    For most of your adult life, youve probably had life insurance. If it was offered by your employer as part of your benefits package, you may not have given it a second thought. You knew it was there but didnt know much about it. Or you might have taken out a policy as part of good financial planning, especially if you have children.

    But now youre about to enter retirementor maybe youre already there. Your employer isnt paying for life insurance anymore, and you have to decide whether to take out a new policy or enter your later years without one. Whats the right choice?

    Dont you get tired of hearing that theres no easy answer? Thats because of your bank and investment accountsand your needsare different from your neighbors’ or friends’. Whats appropriate for them may or may not be appropriate for you.

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    Teachers And Employee Association Term Life Insurance

    The Teachers and Employee Association Term Life Insurance plan provides optional life insurance protection in amounts from $10,000 to $500,000 in $10,000 increments. The plan is administered by the Teachers and Employees Association of the University of Kansas and underwritten by Reliance Standard.

    New members are offered up to $100,000 of term life insurance, and up to $500,000 of accidental death and dismemberment on a guaranteed issue basis.

    How Life Insurance Fits In

    Prior to retirement, most families use most or all of their household income to support their lifestyle. If two people work, both incomes are generally essential to maintaining the familys standard of living. If just one person works, the same holds true. If one of those income earners were to pass away, the household could find itself in a financial emergency at one of the worst possible times.

    The function of life insurance is to protect family members from the loss of income if you or another primary wage earner were to pass away.

    Like any insurance product, there are multiple types of life insurance. Term life insurance offers coverage for a set period of timenormally 10 to 30 years. Permanent life, also called cash-value, is a lifetime policy thats often used in estate planning. It comes in two flavorswhole life and universal life. Here are some questions that may help you decide what you need.

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    Would It Help Your Estate

    Some people with considerable assets can use life insurance strategicallyfor instance, as a way to take care of estate taxes. It could pay off business debt, fund any buy-sell agreements related to your business or estate, or even fund retirement plans.

    As you can imagine, how you use life insurance as a tax-efficient part of your estate plan is very complicated. Youll need the help of an attorney who specializes in estate planning. Keep in mind that unless you have an estate that reaches into the millions of dollars in net worth, estate tax considerations probably dont apply. You, therefore, may not need life insurance for this purpose, but to be sure, its a good idea to ask a qualified expert.

    Are Your Children And Spouse Self

    Karo #LifekiSearch Shuru | Kotak e-Invest – Retire Rich | 15 secs

    If you reach retirement and your children are out of your home, providing for their own families, and your spouse is self-sufficient, you probably dont need life insurance. On the other hand, if you have children with special needs or kids who are still living in your home, you might want to keep it. Also, if your spouse would lose a substantial amount of your pension income or other monthly payment, life insurance can fill that gap.

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    How Kpers Works

    The KPERS Trust Fund is made up of contributions and investment income. You put 6% of every paycheck into the Retirement System. And your employer contributes, too. Then we invest the money to pay you a lifetime monthly benefit in retirement. Once you reach 5 years of service, your benefit is “vested.” That means you’re guaranteed a monthly lifetime benefit when you retire.

    Membership is mandatory by Kansas law. But when retirement gets here, you’ll be glad you saved. KPERS is your fiduciary. That means we put members first. The KPERS Trust Fund is your money. It’s not going anywhere except to pay your benefits. It can never be withdrawn for any other purpose, not even by the Legislature.

    KPERS is “prefunded.” That means your benefits are funded ahead of time throughout your career. KPERS is not like Social Security that uses current contributions to pay current benefits. Over time, investments have paid for about 50% of member benefits.

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