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 receive life insurance coverage equal to 1 1/2 times their annual salary. The employer contribution pays for this coverage.
Deferred Compensation Plan (457)
This is a supplemental retirement plan. Participation is voluntary and there
is no waiting period to begin contributing.
Employee contributions (up to the lesser of $15,000 in 2006 or 100 percent 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 generally not available until retirement or termination.
There are no employer contributions made 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: