16-P-024 New Benefit Plans/Rules for KPERS Working After Retirement (June 9, 2016)
Informational Circular No.: 16-P-024
Effective Date: July 1, 2016
OCFO Contact Name: Jude Overton
OPS Contact Name: Connie Guerrero
Ph: (785) 296-2290, (785) 296-0754
Email: jude.overton@ks.gov, connie.guerrero@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Benefit Plans for KPERS Working After Retirement and New Rules/Instructions for Tracking in SHARP
Pursuant to Sen Sub for House Bill 2095 passed in the 2015 legislature, changes are being implemented for KPERS working after retirement (WAR) rules for both employers and members effective July 1, 2016. Agencies can refer to the Working After Retirement flyer as well as the attached notes from KPERS for additional information. As a result of these changes, nine new KPERS benefit plans will be added in SHARP effective for the payroll period beginning July 3, 2016, ending July 16, 2016, paid July 29, 2016, as follows:
|
PLAN TYPE |
BENEFIT PLAN CODE |
DESCRIPTION |
SHORT DESCRIPTION |
|---|---|---|---|
|
70 |
AC |
Working After Ret EEs-7/1/16 |
KPERS AC |
|
70 |
ANC |
Non-Covered HIR bef 5/1/15 |
KPERS ANC |
|
70 |
AW |
Same ER HIR bef 5/1/15 |
KPERS AW |
|
70 |
AU |
Retired Nurses |
KPERS AU |
|
70 |
AD |
Hardship Positions |
KPERS AD |
|
70 |
AXD |
1yr Extended Hardship Position |
KPERS AXD |
|
70 |
ALE |
KLETC Instructors |
KPERS ALE |
|
70 |
AB |
Same ER HIR bef 7/1/06 |
KPERS AB |
|
70 |
ABD |
Different ER HIR bef 7/1/06 |
KPERS ABD |
These nine new benefit plans will be linked to the existing RETRET deduction code (KPERS-Hired Retirees) in SHARP the same as the current PR benefit plan (KPERS AT member code) for hired retirees. The PR benefit plan (KPERS AT member code) will continue to be used for any WAR employee currently in SHARP who accepted their position before 5/1/15. These employees will be grandfathered in.
The FY17 employer only rates (and Earnings Limit) for each of the new benefit plans are listed on the attached document from KPERS. These employer rates will also be listed on the FY2017 Payroll Contribution Rates informational circular that will be published in the near future.
NOTE: There is an additional KPERS member code being added to the KPERS system only (NOT added in SHARP), ACTR – Working after Retirement – 3rd party or independent contractor, that is subject to a $25,000 limitation and employer rate of 10.81%, effective start date July 3, 2016. This KPERS member code is established for retirees who return to an agency in a staff position, but the agency is paying a third party (example, Westaff). KPERS will work directly with the agencies or third party vendors to identify and report the necessary information for KPERS. Third party/independent contractor retirees will not be tracked in SHARP.
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.
DH:NTR:ewb
Attachment
Printable version of 16-P-024
