09-P-041 Fiscal Year 2010 Payroll Contribution Rates (Supersedes 09-P-034)
|DATE:||June 29, 2009|
|SUBJECT:||Fiscal Year 2010 Payroll Contribution Rates|
|EFFECTIVE DATE:||Pay Period Beginning June 14, 2009; Ending June 27, 2009;
Paid July 10, 2009
Fiscal Year 2010-Employee/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 2010. The fiscal year 2010 rates will become effective with the on-cycle payroll period beginning June 14, 2009, ending June 27, 2009 and paid July 10, 2009, except for the new KPERS Tier 2 deductions, which will become effective with the on-cycle payroll period beginning June 28, 2009, ending July 11, 2009 and paid July 24, 2009. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2009.
In FY2010, the employer’s contribution to KPERS Death and Disability Insurance remains at 1.00% (except for retirement codes J1, J2, J3 which are .4%). However, SB219, Section (4)(A), passed in the 2009 legislative session extended the suspension of employer contributions for KPERS Death and Disability Insurance until November 30, 2009. As a result, the Division of Accounts and Reports will not resume collecting or remitting the employer portion of KPERS Death and Disability insurance contributions until the pay period beginning November 15, 2009 and ending November 28, 2009, paid December 11, 2009. For Regent institutions, 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 requires the “employee” to remit the required contribution while on leave without pay.
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 the moratorium period. Agencies are reminded also of previous moratoriums for KPERS Death and Disability Insurance contributions that 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; and between April 1, 2003 and June 30, 2004.
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 2010, employer rates are 7.34% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 11.34%. Retirees enrolled in the ‘PR’ benefit plan are not subject to KPERS death and disability insurance.
The Division of Accounts and Reports, 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 STARS funding file and DA175/176 impact the correct fiscal year expenditures, and that all appropriate payroll clearing fund indexes are established for fiscal year 2010.