Transcript Compensation & Benefits Workshop

Welcome to the
Compensation & Benefits
Presentation
Spring 2009
Presented by
Human Resource Services
PSU provides many benefits to its employees.
Some benefits you pay for or share in the cost
and other benefits are paid for by PSU.
When we think of our jobs, most of us only
think in terms of the amount of money we take
home. But your job with PSU is worth so much
more in what are referred to as “fringe
benefits.”
HRS provides many ways for employees to
“see what your job is worth.”
Employees receive both individualized and
general summaries
• Individualized summaries include:
– Total Compensation Statement
– Individual Benefit Summary
– Both are located on GUS under Payroll &
Personnel Information
• General Employee Benefits Summary
– Located on the HRS Website under Employee
Benefits
– http://www.pittstate.edu/office/hr/employeebenefits/benefits-summary.dot
Following is an example of what your GUS
Payroll and Personnel Information menu
contains:
Let’s look at the Total Compensation
Statement which is provided in late January
of each year. It contains information based
on the previous calendar year.
You might want to take a minute at this
time to print out a copy of your own Total
Compensation Statement.
The next slide shows a sample of what the
Total Compensation will look like.
The Total Compensation Statement
shows your Direct Compensation.
Direct Compensation is the total amount you are
paid during the calendar year.
It includes:
Regular Pay
Extra Duty Compensation
Worker’s Compensation payments
Overtime Pay
Shift Differential
Leave Pay, such as Vacation, Sick, Holidays, &
other type of paid leave
Bonus Pay, such as Longevity Bonus
The Total Compensation Statement also
shows your Indirect Compensation.
Indirect Compensation is the amount the University
contributes to your total compensation package in the
calendar year.
Indirect Compensation is the part of your benefit package
that you don’t really notice, but it is very important to
consider when making decisions regarding your
employment.
It includes employer contributions to:
Benefits , such as Group Health Insurance, Life
Insurance. Disability Insurance
Retirement
Taxes, such as Social Security, Medicare, Worker’s
Compensation, Unemployment
Let’s look at the Individual Benefit
Summary which is provided in March of
each year. It is a “snap shot” of one
paycheck.
You might want to take a minute at this
time to print out a copy of your own
Individual Benefit Summary.
The following slides will explain the
different sections of the Individual Benefit
Summary.
The information in the top section provides
information on your salary.
Notice that it also gives your length of service date.
This date is important for Classified Employees because it
determines when a Longevity Bonus is paid and when the
vacation factor increases.
The following slides show the employee paid
deductions on top and the corresponding employer
paid deductions at the bottom.
Notice that some taxes have employer paid deductions
and other do not.
Retirement Plan contributions vary depending on the
type of plan in which you participate.
Unclassified employees – Regents Mandatory Retirement Plan
Classified employees – Kansas Public Employees Retirement
System or KPERS
University Police Officers – Kansas Police and Firemen’s
Retirement System or KP&F
Group Health Insurance is one of the largest employer
paid items in the benefit package.
There is a presentation on Group Health Insurance
Basics that explains in detail the health insurance
benefit.
Notice that optional employee elections, such as
Foundation and United Way deductions do not
have any corresponding employer deductions.
The HRS web site has links to employee
policies and procedures, and benefits and
payroll information.
HRS Employee Benefit Summary
The summary is the final item that is available to
employees and prospective employees regarding the
benefit package offered by PSU and the State of
Kansas.
Some benefits may be prorated for positions that are
less than 100%.
Let’s take a closer look at some of your
employee benefits.
Since Group Health Insurance is one of
the most important benefits provided to
you, there is a separate presentation on
Group Health Insurance Basics available
on the HRS Website and will not be
discussed at this time.
HRS strongly encourages you to view the
Group Health Insurance Basics
Presentation.
Other Types of Insurance Coverage are
covered next.
All life insurance programs are administered by
Minnesota Life Insurance Company and provided
by the Kansas Public Employees Retirement
System (KPERS) for all benefits-eligible classified
and unclassified employees.
Classified employees that are eligible for KPERS
can designate the same beneficiaries for both
retirement and life insurance or different
beneficiaries for each on a beneficiary form.
Unclassified employees that are eligible for the
Regents Mandatory Retirement Plan have a form
to designate beneficiaries for life insurance only.
Basic Employer Provided Life Insurance
• Provided at no cost to employee
• Coverage is equal to 150% of employees annual
salary
• Paid to beneficiary in lump sum
• Remember to keep beneficiaries up to date and
make changes when you experience a family
status change such as marriage, divorce, child
birth, adoption, etc.
Employee Paid Optional Group Life
Insurance
• Employees can apply for $5,000 - $250,000 of
coverage
• Premiums are determined by age and amount of
coverage
• Premiums deducted from 2nd paycheck of each
month
• There is no Open Enrollment period. Can apply
for coverage at any time but must provide “proof
of good health.”
• Can apply to increase coverage by $25,000
without providing “proof of good health” within
30 days of a qualified family status change.
Accidental Death Benefit
• Spouse or Dependent Children receive
$50,000 lump sum
• Monthly payment of 50% of annual salary
Long Term Disability Insurance
• There is a 180 day waiting period before disability
payments would begin
• Pays 60% of annual salary up to $5,000 per month
• You will continue to receive benefits for up to 24
months for disability from your occupation.
• If you are disabled from any occupation you will
continue to receive benefits according to the
following limits:
– If you become disabled before age 60, you can
continue to receive disability benefits until you retire
or reach age 65, whichever comes first.
– If you become disabled at or after age 60, you can
continue to receive disability benefits for five years
or until you choose to retire, whichever comes first.
Workers Compensation Insurance and
Reporting Accidents at Work
• Employees that have Minor / Non-Life Threatening
Injuries should seek treatment at the PSU Student
Health Center.
• Employees that have Serious / Life Threatening
Injuries or Incidents that occur after hours or on
weekends should seek treatment at the Emergency
Department at Mt. Carmel Regional Medical Center.
• Employee must complete an Incident Report and the
Supervisor must complete an Employer’s Report of
Accident within 10 days.
• Wage replacement rate is 66 2/3% of salary.
• Not eligible to receive wage replacement for the first 7
days unless off work for 21 consecutive days.
Unemployment Compensation Insurance
• Most PSU employees are covered by unemployment
compensation insurance which provides temporary
pay to eligible unemployed individuals.
• Student employees and graduate assistants, as well
as certain non-resident aliens, are exempt from
unemployment compensation insurance and are not
covered.
• The current employer percentage rate is 0.17% of the
applicable gross wages.
Another important benefit to employees is
the different types of leave available.
Before we discuss the different types of leave, it is
important to understand that some policies have
different rules depending on the type of employee.
Classified employees or Civil Service employees are
governed by policies established by the Department of
Administration Kansas Administrative Regulations.
Unclassified employees are governed by policies
established by the Kansas Board of Regents.
Vacation or Annual Leave
• Classified Employees
– Less than 5 years – 3.7 hrs
– 5 to 10 years – 4.7 hrs
– 10+ years – 6.7 hrs
• Unclassified 12-month Employees
– 8 hrs per pay period up to 176 hrs per fiscal year
– Do not earn vacation leave on 3rd paycheck of
the month or in the month of June
• Maximum accumulation of 304 hours
• Maximum payout at separation is 176 hours
• Maximum payout at retirement is 240 hours
Holidays
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New Year’s Day
Martin Luther King Day
Memorial Day
Independence Day
Labor Day
Veterans Day
Thanksgiving – 2 days
Christmas Day
Discretionary Day
For detailed information regarding Holidays,
reporting time worked on Holidays and
eligibility for Holiday pay, see the HRS web
page on Holidays.
Sick Leave
• Both classified and unclassified benefits-eligible
employees earn 3.7 hours per pay period
• Accumulated sick leave is not paid out upon
separation from employment
• A Sick Leave Bonus is paid upon Retirement only
according to the following table
Years of
Service
8 years
15 years
25 years
Sick Leave
Accumulation
800 hours
1000 hours
1200 hours
Hours Paid
240 hours
360 hours
480 hours
.
• Funeral Leave – up to 6 working days of
paid leave for the death of a “close relative”
defined as spouse, parent, grandparent, sister,
brother, child or grandchild, including in-laws.
• Jury Duty Leave – paid leave for required
jury duty and certain required court
appearances
• Military Leave
– Leave without pay for service in the Armed
Forces
– Up to 15 working days with pay in a 12month period for service with a reserve
component of the Armed Forces.
• Leave Without Pay - may be requested for
absences of over 30 days if employee does not
have accumulated vacation or sick leave
available to use.
• Donor Leave
– Up to 30 working days paid leave for recovery
from an organ or tissue procedure
– Up to 7 working days of paid leave following
the donation of bone morrow
– Up to 3 hours every 4 months for the donation
of blood platelets or other approved blood
products.
• Shared Leave – eligible employees may receive
donations of leave if all leave balances have been
exhausted for a serious, extreme or life-threatening
illness, injury, impairment or physical or mental
condition for themselves or an eligible family
member.
• Family & Medical Leave (FMLA)
– Can use up to 480 hours of job protected
leave
– Can be “leave with pay” or “leave without
pay”
– Must complete FMLA Leave Request Form
and Medical Certification for all conditions
except pregnancy
– Approved absences cannot be used against
you for disciplinary purposes
It’s now time to discuss Retirement Plans
available to employees.
Unclassified employees participate in the
Regents Mandatory Retirement Plan.
• It is an IRS 403(b) Defined Contribution Plan,
similar to a 401(k) retirement plan
• Employees choose 1 of 2 approved companies to
administer their funds - TIAA-CREF or ING.
• Contributions are taken out on a pre-tax basis.
– Employee contribution is 5.5%
– Employer contribution is 8.5%
• Plan has immediate vesting
• Full retirement at age 55 with 10 years of
Regents Service or age 60.
Classified employees participate in the
Kansas Public Employees Retirement System
(KPERS).
• It is an IRS 401(a) Defined Benefit Plan, similar to a
pension plan
• Employee contributions are taken out on a pre-tax
basis.
– KPERS -4%
– KP&F – 7%
• Employer contributions are not credited to the
employee’s account, but go to KPERS to cover the
cost to administer the plan.
• Effective July 1, 2009, vesting after 5 years of
service
• Full retirement at age 65 with 1 year of service, age
62 with 10 years of service or with 85 points (age +
years of service).
In addition to the Mandatory Retirement
Plan, employees can elect to participate in
Voluntary Retirement Plans.
• Deferred Compensation Plan – IRS 457 Plan
– Administered by ING
• Voluntary Tax Sheltered Annuity Program – IRS
403(b) Plan
– Choose from list of approved companies
Limit is $16,500 per calendar year
Limits may be higher depending on catch up provisions
Can do maximum contributions to both plans
No employer contribution
Next let’s focus on the miscellaneous benefits
employees can elect to participate. Notice that
there is no employer contribution to these
benefits.
• Direct Deposit of Paycheck
– Up to 6 accounts and/or financial institutions
– Can do dollar amounts or percentages
• 9 Pay 12 Salary Option 9-month faculty
only
– Faculty get 20 State of Kansas Regular Payroll
Checks and 6 PSU Foundation Reimbursement
Checks.
– About 25% of the employee’s net pay is
deposited into a reimbursement account at the
PSU Foundation, and the money is returned to
the employee over 6 pay periods in the
summer.
• Savings Bonds
– Employee can purchase Series EE Bonds in
$100, $200, $500, $1K, $5K, $10K
denominations by payroll deduction.
• Longevity Pay (Classified Employees
employed prior to June 15, 2008)
– $500 after 10 years of service + $50 for each
year thereafter
– $1250 maximum
• LIFELINE Employee Assistance Program
– Free confidential counseling service offered to
employees, spouses and dependents under
age 23
– Administered by a third party administrator.
• Learning Quest Education Savings Plan –
IRS 529 Plan
– Contributions can be taken out as payroll
deductions.
– Kansas taxpayers receive an annual adjusted
gross income deduction of up to $3,000 ($6,000
if married, filing jointly) for their
contributions per student, per year.
– Earnings grow on a tax-deferred basis at the
federal and Kansas state levels.
– The earnings portion of withdrawals used to
pay for qualified education expenses is tax
free at the federal and Kansas state levels for
years 2002-2010.
Employees can make contributions to the
following through payroll deduction
• Organizational Dues – to KAPE or KNEA
• PSU Foundation
• United Way
Employees can elect to make the following
payments through payroll deduction
• PSU Parking Deduction – this is a pre-tax
deduction taken out on the 2nd paycheck in
September and 2nd paycheck in February
• PSU Campus Recreation Center Membership Fee –
this deduction is taken out on the 2nd paycheck in
September and 2nd paycheck in February
The last thing to discuss is taxes.
All employees must complete the following
forms to let HRS know the amount of state
and federal income taxes to be withheld from
each paycheck.
• K-4 - State Income Tax
• W-4 Federal Income Tax
A new K-4 and/or W-4 can be completed at
any time during the year to change tax
withholding.
Most PSU employees are required to contribute a
percentage of gross wages for FICA taxes (Social
Security and Medicare).
Certain employees may be exempt from FICA, such
as student employees and graduate assistants who
meet specific enrollment criteria and certain nonresident aliens.
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Social Security is the program that provides
retirement income. The current contribution
rate is 6.2% for both the employee and
employer.
Medicare provides health care benefits for
social security eligible retirees. The current
contribution rate is 1.45% for both the
employee and employer.
This concludes the Compensation and
Benefits Presentation.
For more detailed information regarding
employee benefits and payroll issues, see the
HRS web site
http://www.pittstate.edu/office/hr/