Plan Information
Kentucky Teachers Retirement System (KTRS)
**For employees in Non-Workforce Development Cabinet positions requiring a minimum of a Bachelor's Degree or Certificate.**
Participants Prior to 7/1/2008
Overview:
-Employees contribute 6.16%, and KCTCS contributes 13.84%. Social Security is paid by the employee and employer.
-You are vested after five years of service.
-Vesting entitles members to all benefits offered by the system upon meeting eligibility either by service or disability.
-Employees are eligible for Long Term Disability after 5 years of service.
-The normal retirement age is 60.
-You can retire with full benefits regardless of age after 27 years of service.
-The retirement plan is not portable.
-Any premature withdrawal of your contribution to the retirement fund will be subject to substantial tax penalties unless transferred to a recognized retirement fund.
-The retirement system offers a number of payout options upon retirement.
-Retirement income is based on member's contributions and years of service. For information on the appropriate formula to calculate monthly benefit see http://ktrs.ky.gov
New Participants After 7/1/2008
Overview:
-Employees contribute 7.16%, and KCTCS contributes 14.84%. Social Security is paid by the employee and employer.
-You are vested after five years of service.
-Vesting entitles members to all benefits offered by the system upon meeting eligibility either by service or disability.
-Employees are eligible for Long Term Disability after 5 years of service.
-The normal retirement age is 60.
-You can retire with full benefits regardless of age after 27 years of service.
-The retirement plan is not portable.
-Any premature withdrawal of your contribution to the retirement fund will be subject to substantial tax penalties unless transferred to a recognized retirement fund.
-The retirement system offers a number of payout options upon retirement.
-Medical insurance available after minimum of 15 years of service
-Retirement income is based on member's contributions and years of service. For information on the appropriate formula to calculate monthly benefit see http://ktrs.ky.gov
Kentucky Employee's Retirement System (KERS)
**For Staff employees that work in excess of 100 hours per month.**
Participants Prior to 9/1/2008
Overview:
-Member contributes 5%, and KCTCS contributes 8.50%. (10.01% effective 7/1/2008)
-You are vested after five years of service.
-Vesting entitles members to all benefits offered by the system upon meeting eligibility either by service or disability.
-Employees are eligible for Long Term Disability after 5 years of service.
-The normal retirement age is 65.
-You can retire with full benefits regardless of age after 27 years of service.
-The retirement plan is not portable.
-Any premature withdrawal of your contribution to the retirement fund will be subject to substantial tax penalties unless transferred to a recognized retirement fund.
-The retirement system offers a number of payout options upon retirement.
-Retirement income is based on member's contributions and years of service. For information on the appropriate formula to calculate monthly benefit see www.kyret.com
New Participants After 9/1/2008
-Member contributes 6%, and KCTCS contributes10.01% -You are vested after five years of service.
-Vesting entitles members to all benefits offered by the system upon meeting eligibility either by service or disability.
-Employees are eligible for Long Term Disability after 5 years of service.
-The normal retirement age is 65.
-You can retire with full benefits at age 57 or more and after satisfying the rule of 87 (age plus years of service) -The retirement plan is not portable.
-Any premature withdrawal of your contribution to the retirement fund will be subject to substantial tax penalties unless transferred to a recognized retirement fund.
-The retirement system offers a number of payout options upon retirement.
-Retirement income is based on member's contributions and years of service. For information on the appropriate formula to calculate monthly benefit see www.kyret.com
KCTCS 403(b) Matching Plan
**Faculty and Staff positions throughout the KCTCS System.**
Overview:
-Member contributes 5%, and KCTCS contributes 10%
-Employee has full control of investment options and decisions. They have 4 carriers to choose from: American Century, Fidelity, ING, and TIAA-CREF.
-You are vested immediately.
-Vesting entitles members to all benefits, (contributions and/or investment gains/losses.)
-Employees are eligible for Long Term Disability after one year of service.
-Employee may begin taking distributions, without tax penalties in the year they turn age 55 and have separated from service.
-Employee may not take distributions if they have not separated from service.
-For a retiree to obtain the full employer healthcare credit at retirement he/she must have 15 years of full-time continuous' service, and meet the rule of 75 (age plus years of service.).
-There are numerous payout options available at retirement.
Note: The choice of a retirement plan is irrevocable with one exception - members of the KCTCS 403(b) plan may, if their position is eligible (their position requires a four-year degree as a condition of employment), make a one-time decision to become a member of the Kentucky Teachers' Retirement System (KTRS) on a prospective basis. They may not purchase their time in the 403(b) plan for service credit in KTRS. New members will participate at the university rate (se above plan description) and must pay social security. Once the decision is made to join KTRS employees may not elect to return to the 403(b) plan, and will receive other benefits, such as retiree health insurance and long term disability based on their KTRS eligibility.
Legal Information
THE INFORMATION AND CONTENT PROVIDED ON THIS WEBSITE IS GENERAL IN NATURE AND FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION AND PRODUCTS MADE AVAILABLE TO YOU ARE NOT INTENDED TO BE AND SHOULD NOT BE CONSTRUED AS: .i.) A RECOMMENDATION, ii.) LEGAL OR TAX ADVICE, or iii.) A. LEGAL OPINION. KCTCS DOES NOT PROVIDE LEGAL OR TAX ADVICE. YOU SHOULD CONTACT YOUR LEGAL OR TAX ADVISOR REGARDING YOUR SPECIFIC TAX SITUATION PRIOR TO TAKING ANY ACTION BASED UPON THIS INFORMATION.
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