(no subject)
"Dear Faculty and Staff:
Given several individual questions, Robbin suggested that I provide a bit of additional information and clarification concerning SB 65 and its impact for our campus and the other comprehensive universities. Previously, institutions have been required (by statute) to send a portion of the standard employer contribution to KTRS for each individual who participates in the ORP (Optional Retirement Plan--TIAA-CREF, ING, AIG). The contribution to KTRS is, for lack of better words, a "tax" that is used toward KTRS' unfunded accrued liabilities and does not benefit the (ORP) employee in any way. The required payment to KTRS, as determined each fiscal year period, has steadily increased over time to a current high of 9.43%. This increasing rate has resulted in a declining employer contribution to each ORP participant's account. The current employer contribution is 6.64%
Passage of SB 65 sets the required payment to KTRS at a fixed rate (will remain constant each fiscal year) of 5.1%. Because of the reduced KTRS rate, the "employer" contribution to each ORP participant's account will increase from the current rate of 6.64% to 8.74% (13.84% regular employer contribution less 5.1% to KTRS)."
if i am interpreting this correctly, it means that work is going to start contributing more to my retirement - significantly more. yay!