Federal Insurance Contributions Act (FICA)
This is a federally required plan that is administered through the Social
Security Administration requiring all employees to contribute 7.65 percent
of their gross salary to the plan. 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)
This is a defined benefit plan, and participation is mandatory after a
one-year waiting period. Employees contribute 4 percent of their salary and
the city contributes an additional amount that varies each year. Employees
are vested after ten years of service.
Retirement benefit amounts are determined by a formula (final average salary times years of service times a factor of 1.75 percent).
Once enrolled in KPERS, employees also receive additional term life insurance coverage equal to 1 1/2 times their annual salary. This coverage is in addition to the coverage provided by Fortis Life Insurance. The employer contribution pays for this coverage.
Also, disability income benefits are available to KPERS members.
Municipal Employees Pension Plan (MEPP)
This is a defined contribution plan. Participation is automatic after a three-year
waiting period.
The city contributes an amount equal to 10 percent of the employees annual base salary. Vesting begins at 40 percent after 4 years of service, including the three year waiting period, and increases 10 percent per year 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.
Participants choose their own investment options from a variety of different mutual funds.
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 $15,000 in 2006 or 100% 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 over 60 different mutual funds and similar investment products that are offered through two different deferred compensation providers: