Kansas Department of Administration

06-P-032 Fiscal Year 2007 Payroll Contribution Rates (Supersedes 05-P-033)

DATE: June 21, 2006
SUBJECT: Fiscal Year 2007 Payroll Contribution Rates
EFFECTIVE DATE: Pay Period Beginning June 18, 2006; Ending July 1, 2006; Paid July 14, 2006
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: director's signature
SUMMARY: Fiscal Year 2007-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans

The attached schedules contain employer's contribution rates for KPERS, unemployment insurance, state leave assessment, group health insurance, and worker's compensation insurance for fiscal year 2007. The fiscal year 2007 rates will become effective with the on-cycle payroll period beginning June 18, 2006, ending July 1, 2006 and paid July 14, 2006. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2006.

In FY2007, the employer's contribution to KPERS Death and Disability Insurance increases to 1.00% (except for retirement codes J1, J2, J3 which are .4%). Agencies are reminded of the moratoriums for KPERS Death and Disability Insurance contribution that were in place for payroll periods with an original check date between April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; and between April 1, 2003 and June 30, 2004. Since SHARP uses pay period end dates to determine if the KPERS Death and Disability Insurance contribution is taken, no contribution will be taken for paycheck adjustments with payroll period end dates that contain an original check date within the moratorium period.

New legislation (House Substitute for SB 270) changed rules about KPERS retirees who work after retirement for the same or a different KPERS employer. More detailed information on these changes can be found in the KPERS DA Memo - April 21, 2006, located at http://www.kpers.org/damemos042106.htm. These changes do not affect KP&F or the Retirement System for Judges. For retirees who begin work for a different KPERS employer, the employer must make contributions based on retiree compensation. This includes all retirees who first begin actively working in KPERS-covered positions on or after July 1, 2006. Employees who meet these criteria should be enrolled in the newly established Benefit Plan 'PR' and Deduction Code 'RETRET'. For fiscal year 2007, employer rates are 5.84% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 9.84%. Retirees enrolled in the 'PR' benefit plan are not subject to KPERS life and disability insurance.

The Division of Accounts and Reports, Payroll Systems Team will update the SHARP system to reflect the changes in employer's contribution rates. Regents' institutions are responsible for ensuring the changes in rates are made in their individual systems. Regents' institutions are also responsible for ensuring that the STARS funding file and DA175/176 impact the correct fiscal year expenditures, and that all appropriate payroll clearing fund indexes are established for fiscal year 2007.

RLM:JJM: kao

Attachments A, B & C (.pdf)

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