Presentation on theme: "Welcome to the Compensation & Benefits Presentation"— Presentation transcript:
1 Welcome to the Compensation & Benefits Presentation Spring 2011Presented byHuman Resource Services
2 PSU provides many benefits to its employees 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.”
3 Employees receive both individualized and general summaries Individualized summaries include:Total Compensation StatementIndividual Benefit SummaryBoth are located on GUS under Payroll & Personnel InformationGeneral Employee Benefits SummaryLocated on the HRS Website under Employee Benefits
4 Following is an example of what your GUS Payroll and Personnel Information menu contains:
5 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.
7 The Total Compensation Statement shows your Direct Compensation. Direct Compensation is the total amount you are paid during the calendar year.It includes:Regular PayExtra Duty CompensationWorker’s Compensation paymentsOvertime PayShift DifferentialLeave Pay, such as Vacation, Sick, Holidays, & other type of paid leaveBonus Pay, such as Longevity Bonus
8 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 InsuranceRetirementTaxes, such as Social Security, Medicare, Worker’s Compensation, Unemployment
9 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.
10 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.
11 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.
12 Retirement Plan contributions vary depending on the type of plan in which you participate. Unclassified employees – Regents Mandatory Retirement PlanClassified employees – Kansas Public Employees Retirement System or KPERSUniversity Police Officers – Kansas Police and Firemen’s Retirement System or KP&F
13 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.
14 Notice that optional employee elections, such as Foundation and United Way deductions do not have any corresponding employer deductions.
15 The HRS web site has links to employee policies and procedures, and benefits and payroll information.
16 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%.
17 Let’s take a closer look at some of your employee benefits 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.
18 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.
19 Basic Employer Provided Life Insurance Provided at no cost to employeeCoverage is equal to 150% of employees annual salaryPaid to beneficiary in lump sumRemember to keep beneficiaries up to date and make changes when you experience a family status change such as marriage, divorce, child birth, adoption, etc.
20 Employee Paid Optional Group Life Insurance Employees can apply for $5,000 - $250,000 of coveragePremiums are determined by age and amount of coveragePremiums deducted from 2nd paycheck of each monthThere 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.
21 Accidental Death Benefit Spouse or Dependent Children receive $50,000 lump sumMonthly payment of 50% of annual salary
22 Long Term Disability Insurance There is a 180 day waiting period before disability payments would beginPays 60% of annual salary up to $5,000 per monthYou 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.
23 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 Via Christi Hospital.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.
24 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 0.19% of the applicable gross wages.
25 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.
26 Vacation or Annual Leave Classified EmployeesLess than 5 years – 3.7 hrs5 to 10 years – 4.7 hrs10+ years – 6.7 hrsUnclassified 12-month Employees8 hrs per pay period up to 176 hrs per fiscal yearDo not earn vacation leave on 3rd paycheck of the month or in the month of JuneMaximum accumulation of 304 hoursMaximum payout at separation is 176 hoursMaximum payout at retirement is 240 hours
27 Holidays New Year’s Day Martin Luther King Day Memorial Day Independence DayLabor DayVeterans DayThanksgiving – 2 daysChristmas DayDiscretionary DayFor detailed information regarding Holidays, reporting time worked on Holidays and eligibility for Holiday pay, see the HRS web page on Holidays.
28 Sick LeaveBoth classified and unclassified benefits-eligible employees earn 3.7 hours per pay periodAccumulated sick leave is not paid out upon separation from employmentA Sick Leave Bonus is paid upon Retirement only according to the following tableYears of Sick LeaveService Accumulation Hours Paid8 years 800 hours hours15 years 1000 hours hours25 years 1200 hours hours
29 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 appearancesMilitary LeaveLeave without pay for service in the Armed ForcesUp to 15 working days with pay in a 12-month 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.
30 Donor LeaveUp to 30 working days paid leave for recovery from an organ or tissue procedureUp to 7 working days of paid leave following the donation of bone morrowUp 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.
31 Family & Medical Leave (FMLA) Can use up to 480 hours of job protected leaveCan be “leave with pay” or “leave without pay”Must complete FMLA Leave Request Form and Medical Certification for all conditions except pregnancyApproved absences cannot be used against you for disciplinary purposes
32 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 planEmployees 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 vestingFull retirement at age 55 with 10 years of Regents Service or age 60.
33 Classified employees participate in the Kansas Public Employees Retirement System (KPERS). It is an IRS 401(a) Defined Benefit Plan, similar to a pension planEmployee contributions are taken out on a pre-tax basis.KPERS Tier 1 - 4% - Employees hired before July 1, 2009KPERS Tier 2 – 6% - Employees hired after July 1, 2009KP&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
34 Classified employees participate in the Kansas Public Employees Retirement System (KPERS). Tier 1 - 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).Tier 2 – Full retirement at age 65 with 5 years of service or age 60 with at least 30 years of service.
35 In addition to the Mandatory Retirement Plan, employees can elect to participate in Voluntary Retirement Plans.Deferred Compensation Plan – IRS 457 PlanAdministered by INGPre Tax DeductionVoluntary Tax Sheltered Annuity Program – IRS 403(b) PlanChoose from list of approved companiesRoth After Tax Voluntary Annuity Program – IRS 403(b) PlanAfter Tax DeductionLimit is $16,500 per calendar yearLimits may be higher depending on catch up provisionsCan do maximum contributions to both a 457 and 403(b) planNo employer contribution
36 Direct Deposit of Paycheck Next let’s focus on the miscellaneous benefits employees. Notice that there is no employer contribution to these benefits.Direct Deposit of PaycheckMandatory for All Employees Effective Fall 2010Up to 6 accounts and/or financial institutionsCan do dollar amounts or percentages9 Pay 12 Salary Option 9-month faculty onlyFaculty 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.
37 Longevity Pay (Classified Employees employed prior to June 15, 2008) $500 after 10 years of service + $50 for each year thereafter$1250 maximumHealthQuest Employee Assistance Program (EAP)Free confidential counseling service offered to employees and spouses and dependents under age 26 covered on the State’s Employee Health Insurance Plan.Administered by a third party administrator.
38 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
39 Employees can make contributions to the following through payroll deduction Organizational Dues – to KAPE or KNEAPSU FoundationUnited WayEmployees can elect to make the following payments through payroll deductionPSU Parking Deduction – this is a pre-tax deduction taken out on the 2nd paycheck in September and 2nd paycheck in FebruaryPSU Campus Recreation Center Membership Fee – this deduction is taken out on the 2nd paycheck in September and 2nd paycheck in February
40 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 TaxW-4 Federal Income TaxA new K-4 and/or W-4 can be completed at any time during the year to change tax withholding.
41 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 non-resident aliens.Social Security is the program that provides retirement income. The current contribution rate is 4.2% 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.
42 This concludes the Compensation and Benefits Presentation This concludes the Compensation and Benefits Presentation. For more detailed information regarding employee benefits and payroll issues, see the HRS web site