15-P-013 New Deduction Codes for KPERS Tier 3 Deductions (Issued October 29, 2014)
Informational Circular No.: 15-p-013
Effective Date: January 1, 2015
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Deduction Codes/Benefit Plans for Future Members of KPERS (Tier 3)
Pursuant to Sub House Bill (HB) 2333 passed in the 2012 legislature, a new Kansas Public Employees Retirement System (KPERS) Tier 3 cash balance retirement plan is created for new hires beginning January 1, 2015. This plan includes new employees hired after January 1, 2015 and inactive KPERS Tier 1 and Tier 2 members who are not vested and return to work January, 2015 and after. Correctional Officers are not included in the new Tier 3 plan. As a result of this legislation, future members of the KPERS system will begin contributing 6% of their salary to the new cash balance retirement plan. This will be effective with the first day of employment in an eligible position. Employer contribution percentages are the same for Tier 3 as they are for Tier 1 and Tier 2. Further information on the specifics of this new KPERS cash balance plan can be found at http://www.kpers.org/pdf/KPERS3plan.pdf.
Current Tier 1 members include those first employed before July 1, 2009. Current Tier 2 members include those first employed between July 1, 2009 and December 31, 2014; the existing KPERS deduction codes and benefit plans will continue to be used for current Tier 1 and Tier 2 members. For future KPERS members (Tier 3), which includes employees first hired on or after January 1, 2015, two new KPERS deduction codes and ten benefit plans are being added in SHARP effective for the payroll period beginning December 21, 2014, ending January 3, 2015, paid January 16, 2015.
The new KPERS deduction codes and benefit plans are:
|
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
BENEFIT PLAN |
BENEFIT PLAN DESCRIPTION |
GTL DED CD |
|---|---|---|---|---|---|---|
|
70 |
RETRE3 |
KPERS- Regular Tier 3 |
KPERS-Reg |
PT3 |
KPERS Ret Code P Tier 3 |
GTLREG |
|
4X |
RETLE3 |
KPERS- Legislator Tier 3 |
KPERS-Leg |
L1T3 |
KPERS Ret Code L1 Tier 3 |
GTLL1 |
|
|
|
|
|
L5T3 |
KPERS Ret Code L5 Tier 3 |
GTLL5 |
|
|
|
|
|
L7T3 |
KPERS Ret Code L7 Tier 3 |
GTLL7 |
|
|
|
|
|
LIT3 |
KPERS Ret Code LI Tier 3 |
GTLLI |
|
|
|
|
|
LJT3 |
KPERS Ret Code LJ Tier 3 |
GTLLJ |
|
|
|
|
|
LKT3 |
KPERS Ret Code LK Tier 3 |
GTLLK |
|
|
|
|
|
LLT3 |
KPERS Ret Code LL Tier 3 |
GTLLL |
|
|
|
|
|
LNT3 |
KPERS Ret Code LN Tier 3 |
GTLLN |
|
|
|
|
|
LUT3 |
KPERS Ret Code LU Tier 3 |
GTLLU |
(Note: these codes do not apply to the corrections, law enforcement or judges retirement plans)
The existing ‘GTL’ deduction codes and benefit plans as noted in the table above will continue to be used for the employer contributions for death and disability insurance provided to participating KPERS members.
The SMART Expenditure Account Code for Employer Contributions for the new deduction codes will be the same as the current KPERS deduction codes (518100 for Regular and Legislator).
The Office of Systems Management, 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.
SG:NTR:ewb
Printable version of 15-P-013
