KPERS payment options, in dollars

Partial lump sum

KPERS 1 can take 10, 20, 30, 40, 50%; KPERS 2 can take 10, 20, 30%. Your monthly benefit drops by the same percent. Pre-Retirement Guide, p. 15

KPERS 3: If you're eligible for full retirement you can take any percent or dollar amount up to 30% of your account balance in a lump sum; the rest is turned into your monthly benefit. Not available with early retirement. Asking for more than 30% defaults to 30%. Dan's $200,000 with 30%: $60,000 cash, $140,000 for the monthly benefit. KPERS 3 Retirement Options, PDF p. 2

A joint annuitant's survivor share is the main protection for a spouse after you retire; survivor benefits covers the rest, including the retiree death benefit. A lump sum at retirement is exempt from Kansas income tax but federally taxable (see Taxes). KPERS 3 figures start from your balance: how KPERS 3 works.

What KPERS says

• KPERS 1 options as a share of the maximum benefit: life with 5, 10 or 15 years certain 98%, 95%, 88%; joint and 50%, 75% or 100% survivor start from 91%, 87%, 83% and drop 0.4, 0.5, 0.6 points for each year your joint annuitant is younger.Pre-Retirement Guide, p. 14, Adjusting for age difference and Example-KPERS 1 ($1,500 x .898 = $1,347; Sue $673.50)
• KPERS's example: Dan's maximum is $1,500 a month. With the 50% joint-survivor option for Sue, 3 years younger, he gets $1,500 x 0.898 = $1,347, and Sue would get $673.50 after he dies.Pre-Retirement Guide, p. 14, Example-KPERS 1
• Check with KPERSKPERS 2 has the same seven choices, but both the joint-survivor and the life-certain reductions come from actuarial tables: the life-certain cut grows with your age at retirement. KPERS publishes only a few sample factors.Pre-Retirement Guide, pp. 14-15; KPERS 1 & 2 retirement booklet, p. 7KPERS 2 joint-survivor and life-certain factors come from actuarial tables. Published: 0.931764 (50% joint, member 65, spouse 62) and 0.97398 (10 years certain at 65).
• KPERS's KPERS 2 example: the 10-year life-certain factor at age 65 is 0.97398, so $1,500 becomes $1,460.97 a month.Pre-Retirement Guide, p. 15 ('reduction factor for age 65 from an actuarial table (0.97398 or about 97.4%) for a monthly benefit of $1,460.97')
• Check with KPERSKPERS 3: Six monthly choices: the Base Benefit (life with 10 years certain), 5- or 15-year life certain, or 50%, 75% or 100% joint-survivor; plus an optional 1% or 2% self-funded COLA and a partial lump sum of up to 30% at full retirement. All are worked out with actuarial factors from your account balance; only the base factor appears in KPERS's examples.KPERS 3 retirement booklet, p. 7, Part B; KPERS 3 Retirement Options, PDF p. 2KPERS 3 joint-survivor, 5- and 15-year certain, and self-funded COLA factors are set by the Board and not published.
• Partial lump sum at retirement: KPERS 1 up to 50% and KPERS 2 up to 30%, in 10% steps; your monthly benefit is cut by the same percent. KPERS 3: any amount up to 30% of your account balance, at full retirement only.Pre-Retirement Guide, p. 15; KPERS 1 & 2 retirement booklet, p. 13, Part C
• Check with KPERSThe lump-sum dollar amount depends on present-value factors (the valuation names the basis: 7.00% interest, 1983 Group Annuity Mortality, blended 50/50) that aren't published as a table, so the calculator shows the monthly cut and the percent, not the lump sum.2025 actuarial valuation, p. 172, PLSO Factors; Pre-Retirement Guide, p. 15For KPERS 1 and 2 the monthly cut equals the lump-sum percent (PRG p. 15), but the lump-sum dollars depend on present-value factors (7.00%, 1983 GAM; valuation p. 172) that aren't published. Only one example: 30% for Dan, 65, $1,500 a month: $49,659.
• KPERS's KPERS 3 example: Dan's balance is $200,000. A 30% lump sum pays $60,000 and leaves $140,000 to turn into a monthly benefit.KPERS 3 Retirement Options, PDF p. 2

Questions

See your options in dollars → Survivor benefits