Kansas Department of Administration

16-P-024 New Benefit Plans/Rules for KPERS Working After Retirement (June 9, 2016)

Posted on 10/21/2021 at 12:50 PM by Kansas Department of Administration

Informational Circular No.

16-P-024


Effective Date:

July 1, 2016


OCFO Contact Name:
Jude Overton

OPS Contact Name:
Connie Guerrero

Ph:
(785) 296-2290


(785) 296-0754

Email:
jude.overton@ks.gov


connie.guerrero@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:

New Benefit Plans for KPERS Working After Retirement and New Rules/Instructions for Tracking in SHARP

Pursuant to Sen Sub for House Bill 2095 passed in the 2015 legislature, changes are being implemented for KPERS working after retirement (WAR) rules for both employers and members effective July 1, 2016.  Agencies can refer to the Working After Retirement flyer as well as the attached notes from KPERS for additional information. As a result of these changes, nine new KPERS benefit plans will be added in SHARP effective for the payroll period beginning July 3, 2016, ending July 16, 2016, paid July 29, 2016, as follows:

PLAN TYPE

BENEFIT PLAN CODE

DESCRIPTION

SHORT DESCRIPTION

70

AC

Working After Ret EEs-7/1/16

KPERS AC

70

ANC

Non-Covered HIR bef 5/1/15

KPERS ANC

70

AW

Same ER HIR bef 5/1/15

KPERS AW

70

AU

Retired Nurses

KPERS AU

70

AD

Hardship Positions

KPERS AD

70

AXD

1yr Extended Hardship Position

KPERS AXD

70

ALE

KLETC Instructors

KPERS ALE

70

AB

Same ER HIR bef 7/1/06

KPERS AB

70

ABD

Different ER HIR bef 7/1/06

KPERS ABD


These nine new benefit plans will be linked to the existing RETRET deduction code (KPERS-Hired Retirees) in SHARP the same as the current PR benefit plan (KPERS AT member code) for hired retirees.  The PR benefit plan (KPERS AT member code) will continue to be used for any WAR employee currently in SHARP who accepted their position before 5/1/15.  These employees will be grandfathered in.

The FY17 employer only rates (and Earnings Limit) for each of the new benefit plans are listed on the attached document from KPERS.  These employer rates will also be listed on the FY2017 Payroll Contribution Rates informational circular that will be published in the near future.

NOTE:  There is an additional KPERS member code being added to the KPERS system only (NOT added in SHARP), ACTR – Working after Retirement – 3rd party or independent contractor, that is subject to a $25,000 limitation and employer rate of 10.81%,  effective start date July 3, 2016.  This KPERS member code is established for retirees who return to an agency in a staff position, but the agency is paying a third party (example, Westaff).  KPERS will work directly with the agencies or third party vendors to identify and report the necessary information for KPERS.  Third party/independent contractor retirees will not be tracked in SHARP.

The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system.  Regents’ Institutions are responsible for ensuring that these changes are reflected in their individual systems.

DH:NTR:ewb

 

Attachment

Printable version of 16-P-024


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