Kansas Department of Administration

08-P-034 Fiscal Year 2009 Payroll Contribution Rates (Supersedes 07-P-032)

DATE: June 18, 2008
SUBJECT: Fiscal Year 2009 Payroll Contribution Rates
EFFECTIVE DATE: Pay Period Beginning June 15, 2008; Ending June 28, 2008;
Paid July 11, 2008
CONTACT: Earl Brynds (785) 296-5376 Earl.Brynds@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: Fiscal Year 2009-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 2009. The fiscal year 2009 rates will become effective with the on-cycle payroll period beginning June 15, 2008, ending June 28, 2008 and paid July 11, 2008. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2008.

In FY2009, the employer’s contribution to KPERS Death and Disability Insurance remains at 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.

Legislation passed in 2006 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 Benefit Plan ‘PR’ and Deduction Code ‘RETRET’. For fiscal year 2009, employer rates are 7.35% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 11.35%. 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 2009.

KEO:ewb

Attachments A, B & C (.pdf)

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