16-P-004 New Buyback Benefit Plan/Deduction Code for Members of KPERS 3
Informational Circular No.: 16-P-004
Effective Date: September 13, 2015
Contact Name: Earl Brynds
Ph: (785) 296-5376
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Service Buyback Deduction Code for Members of KPERS 3
Pursuant to Sub House Bill (HB) 2333 passed in the 2012 legislature, a new Kansas Public Employees Retirement System KPERS 3 cash balance retirement plan was created for new hires under the KPERS Regular retirement program 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 thereafter. Beginning with the fourth quarter of calendar year 2015, KPERS 3 members will be allowed to purchase back previous years of service. Therefore, a new KPERS 3 Buyback deduction code will be added in SHARP effective for the payroll period beginning September 13, 2015, ending September 26, 2015, paid October 9, 2015, as follows:
|PLAN TYPE||BEN PLAN/DEDUCTION CODE||DESCRIPTION||SHORT DESCRIPTION|
(Note: this code does not apply to the corrections, law enforcement or judges retirement plans)
The KPERB3 service buybacks will be set up differently in the Savings Plan table than the current service buybacks for Tier 1 and 2 members which are calculated as a percentage of pay. The KPERB3 service buybacks will be set up and calculated as a flat amount each pay period for a fixed amount of time with a beginning and ending date. However, the final flat amount payment will possibly need to be changed in order to complete the service purchase.
The Office of the Chief Financial Officer, 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.