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

DATE:  April 1, 2010

Employer KPERS Death and Disability Insurance Contributions Moratorium

EFFECTIVE DATE:   April 1, 2010

Cindy Lo

(785) 296-2259

(Cindy.Lo@da.ks.gov )


Suspension of Employer Contributions for KPERS Death and Disability Insurance for the period of April 1, 2010 to June 30, 2010

A moratorium that suspends employer contributions for KPERS Death and Disability Insurance is being implemented from April 1, 2010 to June 30, 2010. 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 April 16, 2010. The KPERS Death and Disability Insurance moratorium will start effective with the pay period beginning March 21, 2010 and ending April 3, 2010, paid April 16, 2010. 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 April 1, 2010 for pay period end dates prior to April 3, 2010 will continue to have the contributions collected and remitted. Refer to Informational Circular 10-P-008 at the following link http://www.da.ks.gov/ar/infocirc/fy2010/ic10p008.htm to review the dates the previous moratorium was in effect for 2009. 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 March 21, 2010, 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 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.