KCTCS Retiree

Retirement Planning

Planning for retirement is an exciting journey—and we're here to help you every step of the way. Whether you're just beginning to explore your options or you're nearing your retirement date, this section offers the guidance, tools, and checklists you need to make confident, informed decisions. From understanding eligibility and setting a timeline to healthcare options and completing paperwork, KCTCS is committed to making your transition smooth and stress-free.

Eligibility Requirements for KCTCS Employees Participating in 403(b) Retirement

Understanding your retirement eligibility is an important step in planning for the future. At KCTCS, we’ve designed clear criteria to help you determine when you can begin enjoying the benefits of retirement. Take time to review the requirements, and feel free to reach out to Human Resources if you have any questions or need guidance along the way.

  • The ‘Rule of 75’ is a key milestone in your retirement planning. If your age and years of service (15 years minimum) combined amount to 75 or more, you may be eligible to retire with full benefits.
  • For the purpose of calculating years of service toward retirement under KCTCS personnel policies, a faculty or staff member's hire date is determined by their total years of continuous service with KCTCS, the University of Kentucky (UK), and/or under the 18A/151B personnel policies.
  • To be eligible for KCTCS-sponsored retiree health benefits, your hire date must be before July 1, 2009. Employees hired on or after that date are not eligible for retiree health coverage under KCTCS Board of Regents Policy 3.7.

planning timeline and your responsibility

When you're ready to retire, notifying KCTCS is an important step to ensure a smooth transition. As an employee, it's your responsibility to inform your local Human Resources department of your retirement plans in advance, allowing ample time to finalize benefits, retirement paperwork, and other important details. We are here to support you every step of the way as you prepare for this exciting next chapter. Below are key steps to take and important responsibilities to keep in mind as you move forward with your retirement.

  • KCTCS Administrative Policies and Procedures 2.8.4 states that an employee must provide their intent to retire three (3) months in advance of their intended retirement date. This requirement may be waived by your local College President/CEO.
  • You must provide a written statement of your intent to retire to your local Human Resources (HR) Department.
  • If you are eligible for KCTCS-sponsored retiree health benefits, your college HR department will provide you with a packet of information and enrollment forms based on your age at the time of retirement. You will complete and return the enrollment forms to your college HR department.

Things to Consider

  • If you are age 65 or older, or within 3 months of turning 65 at the time of your retirement, you should contact the Social Security Administration to sign up for Medicare Parts A and B.
    • Please note: Premiums for Medicare Part B are not included in your KCTCS- sponsored retiree health billings. Part B premiums are generally deducted from your Social Security direct deposit.
  • If you wish to begin drawing your Social Security benefits, you will need to contact the Social Security Administration.

acessing your retirement funds

After separating from employment, you may be eligible to access the retirement funds you’ve accumulated during your service. Depending on your plan, you can choose to leave your funds invested, roll them over to another qualified plan, or request a distribution. Our plan carrier representatives are ready to help you understand your options and make informed decisions for your financial future.

Your employment and vesting status will be updated with your plan carrier after your final paycheck and retirement contribution are processed. Once updated, you may request a rollover or distribution.

What do I do with my KCTCS retirement account?

After you retire or leave KCTCS, you have several options for your retirement account:

  • Keep your money in the current account (no penalties).
  • Move your money to another retirement account like an IRA.
  • Transfer your money to your new employer’s retirement plan (if allowed).
  • Withdraw your money (may be taxed and penalized).

When may I begin receiving distributions?

  • Your retirement funds will be available after your final paycheck is processed. Distributions cannot begin before this date because you are still making contributions to your account.
 
Personnel System Pay Schedule
KCTCS Paid in arrears (i.e., you work on the 1st through 15th of the month and get paid for that work on the 30th), so you will receive your last paycheck on the 15th or the 30th of the month after you leave employment.
UK Paid current (i.e., you work on the 1st through 15th of the month and get paid for that work on the 15th), so you will receive your last paycheck on the 15th or the 30th of the month that you leave employment.

How do I access funds under each of the retirement systems offered at KCTCS?

  • 403(b) Plan: After leaving KCTCS, contact your retirement provider to manage your funds.
    • Once you have separated from service, you may work with your retirement carrier to determine the best option for your funds.
  • KPPA: Notify KPPA and submit Form 6000. If you have less than 5 years of service, you may get a refund.
    • You must notify KPPA and your employer of your intent to retire and submit Form 6000 (Notification of Retirement) to KPPA.
    • A refund of employee contributions can be made if the employee has less than five years of service with KPPA.
  • TRS: Notify TRS and submit a retirement application. Refunds are available if you have less than 5 years of service.

The Basics of Social Security and Medicare

Social Security:

The Social Security Retirement benefit is a monthly check that replaces part of your income when you reduce your hours or stop working altogether.

Before choosing your retirement date, you should contact the Social Security Administration (SSA) about 3 months before the date you would like to retire to make sure you understand the available options and to determine the best month in which to start collecting benefits.

For more information, you can visit your local Social Security office, call 1-800-772-1213 Monday through Friday between 8:00 AM and 7:00 PM, or go online at www.ssa.gov/prepare.

Note: KCTCS Benefit Operations is not involved in the application process for Social Security benefits. You must work directly with the SSA to apply.

Medicare FAQs:

Where can I find information about Medicare?

Do I need to sign up for Medicare Part B while still working?

  • At age 65, most people should enroll in Original Medicare (Parts A and B).
  • However, if you are still working and covered by an employer’s health plan, you may choose to enroll in Part A only.
  • You may qualify for a Special Enrollment Period to delay Part B enrollment without penalty.

When should I sign up?

  • If you are 65 at the time of retirement, you must enroll in Medicare Parts A and B to be eligible for the KCTCS Medicare Advantage Plan.
  • Begin the enrollment process at least 3 months before your retirement date to avoid delays or gaps in coverage.

What are the parts of Medicare?

  • Part A (Hospital Insurance)
    • Covers inpatient hospital care, skilled nursing, hospice, and more.
    • No cost to the retiree (funded by Social Security taxes).
  • Part B (Medical Insurance)
    • Covers doctor visits, outpatient care, and other medical services.
    • Monthly premium deducted from your Social Security benefit.
    • Not included in your KCTCS-sponsored retiree health billing.
  • Part C (Medicare Advantage)
    • Offers coverage through provider organizations (similar to PPOs).
    • May include extra benefits and lower costs.
    • Requires enrollment in both Parts A and B.
  • Part D (Prescription Drug Coverage)
    • Voluntary enrollment.
    • You can opt in by completing a form and selecting an approved plan.