Kansas Department of Administration, Office of General Services
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Accounts and Reports


INFORMATIONAL CIRCULAR NO. 09-P-024  
DATE:  February 23, 2009
SUBJECT: Employer KPERS Death and Disability Insurance Contributions
EFFECTIVE DATE:   March 1, 2009
A & R CONTACT: Cindy Lo   (785) 296-2259   (cindy.lo@da.ks.gov)
APPROVAL: Kent Olson
SUMMARY:

Suspension of Employer Contributions for KPERS Death and Disability Insurance for the period of March 1, 2009 to June 30, 2009


SB23, passed in the 2009 legislative session, suspends employer contributions for KPERS Death and Disability Insurance from March 1, 2009 to June 30, 2009. As a result of this legislation, the Division of Accounts and Reports will not collect or remit the employer portion of KPERS Death and Disability insurance contributions for pay periods that have an original check issue date on and after March 6, 2009. The KPERS Death and Disability Insurance moratorium will start effective with the pay period beginning February 8, 2009 and ending February 21, 2009, paid March 6, 2009. Please note that the KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after March 1, 2009 for pay period end dates prior to February 21, 2009 will continue to have the contributions collected and remitted. 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 8, 2009, even though the agency will not be charged for KPERS Death and Disability contributions. If the appropriate ‘GTL’ code is not established, then 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 requires the "employee" to remit the required contribution while on leave without pay.

The Division of Accounts and Reports, 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.

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