When Employees Are Called
to Active Military Service
When members are called to active military service, they need to contact you to arrange a military leave of absence. KPERS needs to know if a member is off the payroll.
- Enter "Code 2" for the employee on your Employer Annual Report for the time he or she is on military leave and off your payroll.
- Submit a Report of Member Status form (KPERS-1) when the employee returns to the payroll.
By law, employers are required to give employees on military leave the same rights and benefits that they would give to an employee on a "non-military" leave of absence. Active military personnel also have a few additional KPERS benefits.
Basic Group Life Insurance
- Applies to KPERS, Judges, Board of Regents, State employees in their year of service, and local employees whose employer has first-day coverage for death and disability.
- Basic group life insurance continues while an employee is on active military duty, at no cost to the employee.
- Once the employee returns from active military duty, basic life insurance coverage stops if the employee does not immediately return to covered employment.
Optional Group Life Insurance
- Applies to all employers who are affiliated for optional insurance, including KP&F.
- Optional life insurance continues for the first 16 months an employee is on active duty. Employees pay the premiums directly to Minnesota Life Insurance. Each employee must complete an Optional Group Life Insurance Continuation form (KPERS-79C). Designated agents then need to complete the employer section and send the form to the Retirement System within 30 days of the last day the employee is on the payroll.
- After 16 months, employees have the option to convert to an individual policy. They can do this by completing a Minnesota Life Insurance Conversion form and sending it to Minnesota Life.
- Optional insurance coverage is reinstated if an employee returns to work in a covered position within five years, even if he or she did not choose to convert to an individual policy. Premiums will be based on his or her age when returning to work.
Service Credit
- If employees are in their "year of service" when called to active duty, their time in active military duty is counted toward completion of their "year of service" if they return to the same employer.
- If employees are in the middle of a service purchase when called to active military duty, their purchase resumes when they get back and nothing changes.
- When employees return from active duty, the Retirement System might be able to grant them service credit for their time away at no cost to them. (See "Receiving Granted Service" below.)
Disability Insurance
Employees are not covered by disability insurance while on active
military duty.
When an Employee Returns From Active Military Duty
-
When an employee returns to work after
serving on active military duty, you need to notify the Retirement
System by completing a Report of Member Status form (KPERS-1),
giving the date the member returned to your payroll.
-
Ask the employee if he or she wishes
to reinstate his or her optional insurance. To notify KPERS that
the employee wants to reinstate coverage, complete an Optional Group
Life Insurance Return to Payroll form (KPERS-79R)
and send it along with the KPERS-1 form.
Minnesota Life will reinstate coverage at the previous coverage
level with no waiting period or approval process.
-
Ask the employee if he or she would
like to apply for granted or purchased service credit for the time
he or she was on active military duty. The maximum amount of credit
allowed for military service is six years, whether purchased or
granted. Employees cannot receive military service credit for service
they are already getting credit for. For example, if an employee
leaves in the middle of a quarter, he or she is already receiving
participating service credit for that quarter and cannot apply for
purchased or granted military service credit for that quarter.
For KP&F, purchased military service does not count toward their eligibility to retire, but it does increase the dollar amount of their retirement benefit.
Receiving Granted Service Credit for Military
Service
In certain circumstances, Kansas law allows the Retirement System
to grant KPERS service credit for active military duty, at no cost
to employees, if the military duty interrupts their public service.
They must be employed immediately before and immediately after the
active military duty. This type of service is limited to five years
and they must apply for it. Have the employee send a copy of his or
her DD-214 military discharge papers, showing the period of military
duty along with a letter to the Retirement System requesting granted
service credit.
Purchasing Service Credit for Military Service
Employees are eligible to purchase KPERS service credit for active
military service. Such service will be converted to months and divided
by three to determine the number of quarters that may be purchased.
Any fractional number shall constitute a quarter that may be purchased.
Reserve and National Guard service may be purchased at a rate of one
quarter for each year of service in active or inactive reserves. Have
the employee complete a Service Credit Purchase Application form (KPERS-67)
and send it to the Retirement System.