KU Retirement Plans Information

Since 1982, McDaniel Knutson has worked with KU faculty and staff on their retirement plans. Whatever stage of life you’re in, we can help you with your retirement-planning questions.

KU features three retirement programs: the “Mandatory Plan,” the “Voluntary Plan” (often referred to as the “VTSA” program) and the “457 Deferred Compensation Plan.”

The Mandatory Plan is just like it sounds — you must participate. Once you have satisfied the qualifications, you are eligible for the program. Generally speaking, you are eligible if:

• You are unclassified staff and have been at KU for one year, OR
• You were eligible for a similar plan at your previous institution

Contributions to this plan amount to 14% of your income – 5½% from your paycheck and 8½% matched from the Kansas Board of Regents. There are two choices for you to invest this money: ING and TIAA-CREF. We can help advise you on both.

The Voluntary Plan allows you to contribute additional money out of your paycheck on a tax-deductible basis up to limits set by the IRS. In 2011, you can contribute up to $16,500 into your voluntary plan. If you are over the age of 50, you can contribute an additional $5,500 in what is called a “catch up” provision. This money is tax-deductible going into the account and grows tax-deferred until you withdraw the money (presumably at retirement). Depending on the company you choose, you may also have the ability to access your funds in this account via a loan. There are several investment options on this plan, and we can counsel you on all your choices for the voluntary plan.

When you take money out of your accounts at retirement, all money withdrawn from either the Mandatory Plan or the Voluntary Plan are exempt from Kansas State income taxes.

The 457 Deferred Compensation Plan is also available for KU employees. ING is the sole carrier available for this program. Like the Voluntary Plan, you can contribute money over and above the Mandatory amount with the same maximum limits as the Voluntary Plan. All contributions are tax-deductible and grow tax-deferred, but there are no loan provisions. We can help you with this program as well.

Managing these retirement benefit plans is a complicated process. We’ve been helping faculty and staff at KU for nearly 30 years, and we'd happy to help you too.