Updated October 8, 2026. Quick answer: Wichita Employees’ Retirement System (WERS) covers noncommissioned City of Wichita employees. Plan 2 pays 2.25% of final average salary per year of creditable service, capped at 75%, from age 62 with 7 years, or from age 55 with 0.6% a month off. Plan 3, a defined contribution plan, converts to Plan 2 at 7 years unless a member irrevocably elects to stay within 90 days. A Plan 3 refund has 20% withheld unless rolled over. The booklets read do not cover police and fire.
What this page covers and what it does not
This page works from two member booklets published by the City of Wichita’s Pension Management office for the Wichita Employees’ Retirement System (WERS): the Plan 3 booklet, marked “REVISED SEPTEMBER 2023”, and the Plan 2 booklet, dated “August, 2004”, plus a city form for buying back service. Both booklets were read through an archived copy on October 8, 2026, because the city’s website blocked automated access. Any figure here is the city’s, or is labeled as a computed example from assumed inputs.
The group covered is the city’s noncommissioned workforce; the Plan 3 booklet excludes “Commissioned police and fire officers”. The Wichita Police and Fire Retirement System, the older Plan 1 and the optional 457 deferred compensation plan are not covered. The booklets are summaries, and the Plan 3 booklet says “The actual provisions, as set forth in Chapter 2.28 of the City Code, will govern the rights of all system members, their spouses, and minor children”. For Kansas income tax on pensions see Kansas retirement taxes and does Kansas tax pensions; the separate state system is on Kansas KPERS retirement decisions.
Which plan you are in, and the choice at seven years
Membership is by hire date. “Plan 3 applies to all employees hired or rehired on or after January 1, 1994 who have not become members of Plan 2.” The Plan 2 booklet covers full-time employees hired after July 18, 1981 and before January 1, 1994, plus vested Plan 3 members who transfer to Plan 2. The Plan 3 booklet explains that “The retirement benefit from a defined contribution plan is determined by a number of factors, including how much was contributed to your account, how long the funds were invested, rate of return, and years of life expectancy beyond retirement”; the Plan 2 booklet sets out a formula benefit instead, covered below.
The bridge is a seven-year clock. “When vested with seven (7) years of service, Plan 3 membership automatically converts to Plan 2 membership.” “The membership defaults to Plan 2 unless you elect to remain a member of Plan 3.” The account does not stay separate: “the employee’s contributions, City’s matching contributions and their earnings become a part of the Retirement Fund”. “To remain in Plan 3, an irrevocable decision must be made within ninety (90) days of becoming vested and submitted in writing to the Pension Management Office.” Staying means the member directs the investments: “employees who opt to remain in Plan 3 will direct the investment of their individual accounts”.
The booklets do not compare the two plans in dollars. Plan 3’s own booklet says its result depends on contributions, time invested and the rate of return, and states “There is no guarantee of future returns”.
Plan 2: when the pension starts and how it is calculated
Plan 2 sets two retirement ages. “Members are eligible for service retirement upon attaining age 62 and completion of 7 full years of actual service with the City.” “A Plan 2 member is eligible for early retirement at age 55 and having at least 7 full years of actual service with the City.” Creditable service is defined as “Actual service plus accumulated unused sick leave (SL) equals creditable service”, though “Unused SL credit may not be used to meet either the minimum age or actual service requirements”.
The formula: “2.25% each year (0.1875% per month) of creditable service, not to exceed 75%.” Final average salary is “The 3 consecutive years, 78 consecutive pay periods, having the highest salary within the last 10 years of actual service”. There is no forced exit: “There is NO mandatory retirement age under the WER System”.
A computed example from assumed figures, not a WERS figure: an assumed 20 years of creditable service earns 20 times 2.25%, a computed 45.00% of final average salary. On an assumed final average salary of $3,000 a month, that is 45% of $3,000, a computed $1,350 a month.
Retiring early at 55 or deferring the pension
Early retirement costs a reduction for each month under 62: “The monthly benefit is reduced by 0.6% per month (or part of a month) that the employee is below age 62 (normal retirement age).” A computed example from assumed figures, not a WERS figure: a member retiring at an assumed age 57 is 60 months below 62, so at 0.6% a month the reduction is a computed 36.0%. Applied to an assumed full benefit of $1,350 a month, the early benefit is a computed $864 a month.
A member who leaves City service short of retirement can defer. “Plan 2 members who leave City service may elect to leave their contributions in the Retirement System and defer their benefit until they reach age 55 for early (reduced) benefit or age 62 for normal (unreduced) benefit.” “This election must be made in writing to the Pension Management Office within 60 days of their termination.” While deferred, “the amount of their pension benefit is indexed annually by the same ratio as the change in the National Average Earnings Index determined by Social Security to a maximum of 5.5%”.
The options and what each does for a survivor
The table compares the choices the booklets describe. The survivor column reflects only what the booklets state.
| Option | What it pays | What it does for a survivor |
|---|---|---|
| Plan 2 service pension (no option elected) | 2.25% of final average salary per year of creditable service, capped at 75% | Surviving spouse of a retired member: 50% of the member’s benefit, if married to the member for 12 months before death |
| Plan 2 optional annuity | A reduced benefit, set by actuarial equivalence, in exchange for a larger survivor benefit | A larger benefit for a spouse, or for an unmarried member a specified beneficiary; never more than the reduced benefit |
| Plan 2 early retirement at 55 | Normal benefit less 0.6% per month below age 62 | Not described separately in the pages read |
| Plan 2 DROP | Monthly benefit plus 5% annual interest accumulates for 1 to 60 months, then a lump sum | Not described in the pages read |
| Plan 2 refund of contributions | Contributions plus 5% annual interest; gives up the pension right | None |
| Plan 3 refund | Vested account: all of the member’s own money, and the City match as vested (25% at 3 years, 50% at 5, 100% at 7) | Beneficiary named on the membership record form |
The optional annuity: a smaller check for a bigger survivor benefit
“An employee may elect a reduced retirement benefit and thereby provide an increased benefit for a surviving spouse or, if unmarried, a retirement benefit for a specified beneficiary.” For scale, the booklet names “the 50% benefit allowed the surviving spouse, or the 10% or 20% benefit allowed for a dependent child”. The price is actuarial: “The amount of reduction and the pension to both member and beneficiary are based on approximate equivalent formulas established by the actuary.” “If the designated beneficiary(ies) dies before the retired employee, the retiree’s pension benefit increases to their normal retirement benefit.” The reduction percentages are not published in the pages read, so the cost must come from Pension Management; the booklet says to “request an estimate of benefits form at least 45 days prior to retirement”.
A computed example from an assumed $1,350 monthly benefit, not a WERS figure: the default 50% spouse benefit would be 50% of $1,350, a computed $675 a month. To get more than that the member takes a reduced benefit, sized by the actuary. Compare single-life versus joint-and-survivor pension and survivor benefit with a government pension.
The default itself is conditional: “Upon proof of marriage to retired member for 12 months prior to death, surviving spouse receives a lifetime benefit equal to 50% of the member’s benefit at the time of death”. With no spouse or minor child, “Refund of any remaining balance of member’s contributions to the Retirement System, plus 5% annual interest”.
A filing that cannot be undone
The Plan 2 booklet says that an application for retirement based on age and length of service “is an irrevocable waiver of any future claim for disability benefits”. A member who may later need a disability pension should confirm with Pension Management before filing.
The DROP: working on while the pension builds into a lump sum
Plan 2 has a Deferred Retirement Option Plan, open to members eligible to retire who “continue their employment for 1 to 60 months”. The booklet lists the steps: “30 days prior to normal retirement date, employee elects to retire and participate in the DROP for a period of 1 to 60 months”; “Retirement benefit is calculated as of the day prior to the DROP beginning date”.
“Employee’s retirement benefit plus 5% annual interest accumulates during the DROP period”. At the end, “the retiree receives a lump sum distribution of their DROP balance and begins to receive their monthly retirement benefit on the first of the month following termination of service”. The payout choices are “the DROP balance will be distributed, within 90 days, according to direction of the employee (lump sum payment, direct rollover, or combination of the two)”. A lump sum paid to the member is a distribution subject to the tax rules below; a direct rollover moves it without the member receiving it.
Two costs are stated. “Failure to complete the DROP period as a result of employee’s actions (voluntary resignation or termination with cause) results in loss of the 5% annual interest accumulation.” And “Sick leave used in the retirement benefit calculation is no longer available to the employee”.
A computed example from assumed figures, not a WERS figure: an assumed benefit of $1,350 a month credited over an assumed 24-month DROP period is 24 times $1,350, a computed $32,400 before the 5% annual interest, which the booklet does not show how to compute month by month.
Cost-of-living increases after retirement
“All participants retiring after February 18, 2000, receive a post-retirement adjustment (PRA) to their benefit following 12 months of retirement and each year thereafter.” “The annual PRA increase is equal to 2% of their retirement benefit (not compounded).” A computed example from an assumed $1,350 monthly benefit, not a WERS figure: one 2% adjustment is a computed $27 a month, and because it is not compounded, three adjustments bring the benefit to a computed $1,431 a month.
Leaving before retirement: refund or leave it in
For Plan 2: “Any employee leaving service before becoming eligible for retirement may, upon written request, withdraw all contributions made to the Retirement System”. The refund carries interest, “plus 5% annual interest”, and the member “will receive a refund check approximately 4 to 6 weeks following their termination date”.
The cost is the lifetime pension. The Plan 2 booklet says “All Plan 2 members are vested with at least 7 years of service”, and its guarantee of a lifetime benefit applies only if “the employee has not received a refund of contributions”. The choice mirrors the one on pension refund versus leaving it, and the alternative is the deferred pension above, with its written election due within 60 days of leaving.
Plan 3: refund of the account, with vesting of the City match
Plan 3 has no formula pension. “The vested portion of Plan 3 accounts, including earnings, is refundable upon termination of employment.” “An application for refund, available in the Pension Management Office, must be submitted within ninety (90) days of termination.” The member’s own contributions are always the member’s: “Employee contributions and their earnings are always one hundred percent (100%) vested”. The City match vests on a schedule: 25% at 3 years and 78 service credits, 50% at 5 years and 130, and 100% at 7 years and 182, with one service credit earned “for each pay period worked”.
The booklet’s example: “She is eligible to receive 100% of her contributions and gains/(losses) and 50% of the City’s contributions and gains/(losses)” Her own balance of $8,090 plus half of the City’s $8,090 gives $12,135.
How a Plan 3 refund is paid, taxed and rolled over
The booklet lists three ways to direct the money. First: “If a refund is issued to an employee, twenty percent (20%) federal income tax will be withheld.” “If the employee is under the age of 59 1/2 when receiving the refund, an additional 10% excise tax may apply in accordance with IRS rules”. Second: “A refund that is rolled into a qualified pension plan or IRA is not subject to income tax or additional taxes”. Third: “A refund may be a combination between the above options with a portion of the refund issued to the employee”.
A computed example from an assumed $9,000 refund paid to the member, not a WERS figure: 20% of $9,000 is a computed $1,800 withheld, leaving a computed $7,200, and if the 10% additional tax applied it could be another computed $900, depending on age and circumstances. The booklet’s own illustration uses a $12,135 refund with $2,427 withheld. See 20% withholding on a pension lump sum for the general rule.
Buying back service after a refund
Plan 2’s booklet lets a returning member buy back prior Plan 2 service “by paying into the Retirement System the amount of the refund, plus 7% annual compounded interest”. It adds that “Up to 10 years of prior service may be purchased”, and that the member “must make an election to transfer to Plan 2”. A city form covers the cost request: “Terminated Plan 2 members and received a refund of their contributions may, upon reemployment, redeposit in the Retirement System.”
The Plan 3 booklet prices it differently: “Prior defined benefit service credit may be purchased after completing seven (7) years of service by paying the Retirement Fund an amount equal to 4.7% of the salary previously earned plus seven percent (7%) annual interest.” See the pension buyback calculator for a general method. A computed example from an assumed $40,000 of prior salary, not a WERS figure, using the Plan 3 booklet’s formula: 4.7% of $40,000 is a computed $1,880 before the 7% annual interest.
What the IRS adds on tax
A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of WERS’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that if you roll it over yourself “you’ll have to add funds from other sources equal to the amount withheld”. The Plan 3 booklet describes the same 20% withholding and rollover treatment for its refunds, and the Plan 2 booklet names direct rollover as a DROP payout choice. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.
On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan”. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.
Where the sources disagree
The Plan 3 booklet (2023) says prior defined benefit service may be bought back for “an amount equal to 4.7% of the salary previously earned plus seven percent (7%) annual interest”, while the Plan 2 booklet (2004) says the buyer pays “the amount of the refund, plus 7% annual compounded interest”. The booklets use different bases for the same purchase, and the newer one is the Plan 3 booklet. Confirm the formula and the amount with Pension Management.
What this page could not settle
- The pages read do not state how much an optional annuity reduces the monthly benefit; the booklet says the reduction is set by the actuary.
- The pages read do not state whether a DROP participant’s survivor is treated differently, or what happens to the DROP balance on death.
- The Plan 2 booklet is dated August 2004. The pages read do not show whether the DROP, the 2% adjustment or the early-retirement reduction were changed afterward.
- The pages read do not give the text of City Code Chapter 2.28, which the booklets say controls over the booklets.
- The Wichita Police and Fire Retirement System, Plan 1, and the 457 deferred compensation plan were not read for this page.
- The pages read do not state spousal consent rules for a Plan 3 refund.
Common mistakes
- Missing the 90-day window after vesting; staying in Plan 3 requires a written, irrevocable election, and silence converts the account to Plan 2.
- Assuming a Plan 3 account can be borrowed against; the booklet says withdrawals, including loans, are not permitted.
- Taking a refund check and expecting full cash; 20% federal withholding applies unless the money goes straight to a qualified plan or IRA.
- Forgetting that applying for a Plan 2 age-and-service retirement waives future disability claims.
- Assuming the 2004 Plan 2 booklet is current; check each rule with Pension Management at 316-268-4544 before filing.
Related on this site: Kansas retirement taxes, does Kansas tax pensions, Kansas KPERS retirement decisions, pension refund versus leaving it, single-life versus joint-and-survivor pension, survivor benefit with a government pension, 20% withholding on a pension lump sum and public pension retirement decisions by system.
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Answer againSources
- City of Wichita Pension Management, Wichita Employees’ Retirement System Plan 3: A benefits guide booklet (revised September 2023): https://www.wichita.gov/DocumentCenter/View/8498/WERS-Plan-3-PDF
- City of Wichita Pension Management, Wichita Employees’ Retirement System Plan 2 (booklet dated August 2004): https://www.wichita.gov/DocumentCenter/View/8497/WERS-Plan-2-PDF
- City of Wichita Pension Management, Wichita Employees’ Retirement System Request for Calculation of Cost to Purchase Prior Service Credit (form): https://www.wichita.gov/DocumentCenter/View/8505/Form—WERS-Purchase-Prior-Service-PDF
- IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
- IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558
Sources: the primary documents linked above, read on October 8, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.