12-P-003 Addition of Earnings Codes for Voluntary Retirement Incentive Program Implementation

The 2011 State of Kansas Voluntary Retirement Incentive Program has been implemented effective August 2, 2011 and continues through September 19, 2011. 

As a result of the implementation of this program, new earnings codes have been added to SHARP effective August 7, 2011 to administer the Voluntary Retirement Incentive program. The State Leave Assessment Fund may not be used to fund these payouts. The following earnings codes are eligible to be used starting with the pay period beginning August 7, 2011, in accordance with the provisions set out in the materials regarding the Voluntary Retirement Incentive Program, which can be seen at the following link:  http://www.da.ks.gov/vrip/default.htm.

Pursuant to the completion of the Voluntary Retirement Incentive Program, the new earnings codes should no longer be used for payroll processing after the on-cycle is confirmed for the pay period beginning September 18, 2011 through October 1, 2011 paid October 14, 2011.

VRI is an Amounts Only earnings code and the lump sum earnings ($ 6,500.00) distributed by its use will not be subject to KPERS.    Following the insertion of the standard vacation and sick leave payout codes on Tuesday night of payroll calc week in SHARP, agency personnel are responsible for updating the default codes to the appropriate new earnings codes/time reporting codes on the employee time sheet as follows for employees retiring under the incentive program only:

VLP must be updated to VLV

VLK must be updated to VLX

SLP must be updated to SLV

SLK must be updated to SLX

Time and Labor agencies: The Division of Personnel Services has created corresponding Time Reporting Codes (TRCs) to coincide with the Earnings Codes listed above.  They are also effective August 7, 2011.  Time and Labor agencies will continue to use the SLH (Sick Leave Payout Hours) and VLH (Vacation Leave Payout Hours) TRCs to record the payout hours.

Agencies/Positions funded solely from State sources:

For agencies/positions funded solely from State funding sources, Sick and Vacation leave payouts, as well as the lump sum retirement incentive ($6,500) will be funded by the agencies and will charge to the applicable funding splits that are used to fund the final paycheck for the retiree.  Agencies who wish to fund the lump sum retirement incentive or payouts from a state funding source available to the agency that is different from the employee’s regular payroll funding can set up funding for the applicable earnings codes (VRI,VLV, VLX, SLV, SLX) using combo codes in the Department Budget Tables in SHARP and/or on the timesheet in Time and Labor.

Agencies/Positions funded in part or in full from Federal sources:

For agencies/positions funded in part or in full from Federal sources, agencies are responsible for the determination of which payments (if any) related to the voluntary retirement incentive (vacation leave payout, sick leave payout, and the lump sum incentive) are eligible to be funded from the Federal programs/funding sources utilized to fund the employee/position.  If the agency determines that the payments cannot be funded using the same funding/splits for the employee’s final paycheck, the agency is then responsible for ensuring the appropriate funding (Federal or State) is established through set up of the applicable earnings codes (i.e. VRI, VLV, VLX, SLV, SLX) using combo codes in the Department Budget Tables in SHARP and/or on the timesheet in Time and Labor in order to insure the appropriate funding is charged to State sources or Federal sources.

The Office of General Services, Payroll Systems Team, is responsible for adding the new earnings codes in the SHARP system.  Regents’ institutions are responsible for implementing the new earnings codes in their payroll systems.

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