13-P-020 Employer KPERS Death and Disability Insurance Contributions Moratorium
Employer KPERS Death and Disability Insurance Contributions Moratorium
|EFFECTIVE DATE:||April 1, 2013|
(Original Signature on File)
Suspension of Employer Contributions for KPERS Death and Disability Insurance for the period of April 1, 2013 to June 30, 2013
House Sub for SB 294, passed in the 2012 legislative session, calls for an additional moratorium that suspends employer contributions for KPERS Death and Disability Insurance from April 1, 2013 to June 30, 2013. As a result, the Office of Systems Management will not collect or remit the employer portion of KPERS Death and Disability insurance contributions for pay periods during the moratorium. The KPERS Death and Disability Insurance moratorium will start effective with the pay period beginning March 17, 2013 and ending March 30, 2013, paid April 12, 2013 and end with the pay period beginning May 26, 2013 and ending June 8, 2013, paid June 21, 2013. Please note that the KPERS Death and Disability contributions for off-cycle payrolls are calculated based on the original pay period end dates, so paycheck adjustments processed after April 1, 2013 for pay period end dates prior to March 30, 2013 will continue to have the contributions collected and remitted. Refer to Informational Circulars 11-P-025 and 12-P-023 at http://www.da.ks.gov/ar/infocirc/fy2012/IC12p023.htm to review the dates the previous moratoriums were in effect for 2010 through 2012. 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 17, 2013, 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 require the "employee" to remit the required contribution while on leave without pay.
The Office of Systems Management, 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.