16-P-018 Employer KPERS Death and Disability Insurance Contribution Moratorium (March 2, 2016)
Informational Circular No.: 16-P-018
Supersedes Informational Circular No: 13-P-025
Effective Date: Payroll Period Beginning February 28, 2016 and Ending March 12, 2016, paid March 25, 2016
Contact Name: Earl Brynds
Ph: (785) 296-5376
Approval: Nancy Ruoff (Original Signature on File)
Summary: Suspension of Employer Contributions for KPERS Death and Disability Insurance for the Final Seven Pay Periods of Fiscal Year 2016
House Sub for SB 112, passed in the 2015 legislative session, calls for an additional moratorium that suspends employer contributions for KPERS Death and Disability Insurance for the final seven payroll periods of fiscal year 2016. As a result, the Office of the Chief Financial Officer 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 February 28, 2016 and ending March 12, 2016, paid March 25, 2016 and end with the pay period beginning May 22, 2016 and ending June 4, 2016, paid June 17, 2016. 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 March 14, 2016 for pay period end dates prior to March 12, 2016 will continue to have the contributions collected and remitted. Refer to Informational Circulars 11-P-025 at https://www.admin.ks.gov/offices/office-of-accounts--reports/informational-messages-and-circulars/payroll-circulars/p-fy-2011, 12-P-023 at https://www.admin.ks.gov/offices/office-of-accounts--reports/informational-messages-and-circulars/payroll-circulars/p-fy-2012 and 13-P-020 at https://www.admin.ks.gov/offices/office-of-accounts--reports/informational-messages-and-circulars/payroll-circulars/p-fy-2013 to review the dates the previous moratoriums were in effect for 2010 through 2013. 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 February 27,2016 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 the Chief Financial Officer, 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.