11-P-025 Employer KPERS Death and Disability Insurance Contributions Moratorium (Supersedes 10-P-030)
|DATE:||February 21, 2011|
|SUBJECT:||Employer KPERS Death and Disability Insurance Contributions Moratorium|
|EFFECTIVE DATE:||April 1, 2011|
|CONTACT:||Cindy Lo||(785) 296-2259||Cindy.Lo@da.ks.gov|
Suspension of Employer Contributions for KPERS Death and Disability Insurance for the period of April 1, 2011 to June 30, 2011
S Sub for HB 2219, passed in the 2010 legislative session, suspended employer contributions for KPERS Death and Disability Insurance beginning April 1, 2010 until June 30, 2010, and then again from April 1, 2011 to June 30, 2011. As a result, the Division of Accounts and Reports will not collect or remit the employer portion of KPERS Death and Disability insurance contributions for pay periods that have an original check issue date on and after April 1, 2011. The KPERS Death and Disability Insurance moratorium will commence again effective with the pay period beginning March 6, 2011 and ending March 19, 2011, paid April 1, 2011.
The KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after April 1, 2011 for an original check issue date and pay period that does NOT fall within a moratorium period will continue to have the contributions collected and remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate ‘GTL’ code be established in SHARP’s Retirement Plans page ( Plan Type 7U) under Benefits, or for Legislators the Life and AD/D Benefits page ( Plan Type 22) for new employees hired after March 6, 2011, even though the agency will not be charged for KPERS Death and Disability contributions. If the appropriate ‘GTL’ code is not established, the imputed income, if applicable, will not be properly calculated for the new employee.
Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does not extend to members of Board of Regents retirement plans who elect to continue the Death and Disability Insurance coverage while on leave without pay under the provisions of K.S.A. 74-4927a(8), which specifically requires the "employee" to remit the required contribution while on leave without pay.
The Division of Accounts and Reports, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.