Effect of Increased Contributions

  The following table shows the impact of increasing the employee

contribution rate by 2.0% over two years for a Tier 1 and a Tier 2 member,
each earning $40,000.
Annual KPERS Contribution
Tier 1 Member Tier 2 Member*
Current Rate: 4.0% $1,600 6.0% $2,400
Rate effective 1/1/2014 5.0% $2,000 7.0% $2,800
Increase 1.0% $ 400 1.0% $ 400

Rate effective 1/1/2014 5.0% $2,000 7.0% $2,800

Rate effective 1/1/2015 6.0% $2,400 8.0% $3,200
Increase 1.0% $ 400 1.0% $ 400

Total Increase 2.0% $ 800 2.0% $ 800

*Assumes IRS approval of one-time, irrevocable option for members of Tier 2 as of July 1, 2013, to increase contributions by
2.0%, receive a 1.85% multiplier for future service, and retain existing 2.0% COLA.
Kansas Public Employees Retirement System • 1
Effect of Increasing Multiplier
  The following table shows the impact of increasing the benefit multiplier
factor to 1.85% for all future service, assuming an average final salary of
$40,000.
Years of Final Average
Service X Multiplier X Salary = Annual Benefit

Subtotal Total

Current Law 30 X 1.75% X $40,000 = $21,000

25 1.75% $40,000 $17,500.00

Example 1: X X = = $21,200
5 1.85% $40,000 $3,700.00

15 1.75% $40,000 $10,500.00

Example 2: X X = = $21,600
15 1.85% $40,000 $11,100.00

5 1.75% $40,000 $3,500.00

Example 3: X X = = $22,000
25 1.85% $40,000 $18,500.00

Example 4: 30 X 1.85% X $40,000 = $22,200

Kansas Public Employees Retirement System • 2