Presentation on theme: "Welcome to the Compensation & Benefits Presentation Spring 2011 Presented by Human Resource Services."— Presentation transcript:
Welcome to the Compensation & Benefits Presentation Spring 2011 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/employee- benefits/benefits-summary.dot
Following is an example of what your GUS Payroll and Personnel Information menu contains:
Lets 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 Workers 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 dont 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, Workers Compensation, Unemployment
Lets 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 Firemens 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%.
Lets 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 2 nd 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 Via Christi Hospital. Employee must complete an Incident Report and the Supervisor must complete an Employers 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 0.19% 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 3 rd 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 New Years 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 Sick Leave Service Accumulation Hours Paid. 8 years 800 hours 240 hours 15 years1000 hours 360 hours 25 years1200 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 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.
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
Its 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 Tier 1 - 4% - Employees hired before July 1, 2009 –KPERS Tier 2 – 6% - Employees hired after July 1, 2009 –KP&F – 7% Employer contributions are not credited to the employees account, but go to KPERS to cover the cost to administer the plan. Effective July 1, 2009, vesting after 5 years of service
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.
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 –Pre Tax Deduction Voluntary Tax Sheltered Annuity Program – IRS 403(b) Plan –Choose from list of approved companies –Pre Tax Deduction Roth After Tax Voluntary Annuity Program – IRS 403(b) Plan –Choose from list of approved companies –After Tax Deduction Limit is $16,500 per calendar year Limits may be higher depending on catch up provisions Can do maximum contributions to both a 457 and 403(b) plan No employer contribution
Next lets focus on the miscellaneous benefits employees. Notice that there is no employer contribution to these benefits. Direct Deposit of Paycheck –Mandatory for All Employees Effective Fall 2010 –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 employees 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.
Longevity Pay (Classified Employees employed prior to June 15, 2008) –$500 after 10 years of service + $50 for each year thereafter –$1250 maximum HealthQuest Employee Assistance Program (EAP) –Free confidential counseling service offered to employees and spouses and dependents under age 26 covered on the States Employee Health Insurance Plan. –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
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 2 nd paycheck in September and 2nd paycheck in February PSU Campus Recreation Center Membership Fee – this deduction is taken out on the 2 nd paycheck in September and 2 nd 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 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.
This concludes the Compensation and Benefits Presentation. For more detailed information regarding employee benefits and payroll issues, see the HRS web site