15-P-035 Fiscal Year 2016 Payroll Contribution Rates (June 18, 2015)
Informational Circular No.: 15-p-035
Supersedes Informational Circular No: 14-p-030
Effective Date: Pay Period Beginning June 7, 2015; Ending June 20, 2015; Paid July 2, 2015
Contact Name: Carmen Waters
Ph: (785) 296-7059
Approval: Nancy Ruoff (Original Signature on File)
Summary: Fiscal Year 2016-Employeee/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 2016. The fiscal year 2016 rates will become effective with the on-cycle payroll period beginning June 7, 2015, ending June 20, 2015 and paid July 2, 2015. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2015.
For Fiscal Year 2016, the employer’s contribution to KPERS Death and Disability Insurance will be 1.00% (except for retirement codes J1, J2, J3 which are .4%). 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 a moratorium period. Previous moratoriums for KPERS Death and Disability Insurance contributions 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; between April 1, 2003 and June 30, 2004; between March 1, 2009 and November 30, 2009; between April 1, 2010 and June 30, 2010; between April 1, 2011 and June 30, 2011; between April 1, 2012 and June 30, 2012; and between April 1, 2013 and June 30, 2013.
For Regent institutions, moratoriums do 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.
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 2016, employer rates are 11.44% Actuarial Employer Rate, 6.00% Statutory Employer Rate, for a Total Combined Rate of 17.44%. Retirees enrolled in the ‘PR’ benefit plan are not subject to KPERS death and disability insurance.
The Office of the Chief Financial Officer, 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 SMART INF06 impacts the correct fiscal year and account codes.