DA Memo - December 19, 2002
December 19 , 2002
- Final Average Salary Clarification for School Members
- Possible Change in the Usual Open Enrollment Schedule For Optional Group Life Insurance
- Withdrawals & the 30-Day Special Tax Notice Waiver
(1) Final Average Salary Clarification for School Members
Information in our May 31, 2002 memo relating to final average salary was incomplete for determining who should and should not have KPERS contributions withheld from termination payments. In the case of school members, the correct membership date for determining contributions is July 1, 1993.
Please use the following membership date when determining who should and should not have KPERS contributions withheld from termination payments. Do withhold KPERS contributions from termination payments made to school members whose date of membership in the system is prior to July 1, 1993. For all other school employees, do not withhold from termination payments.
Note: If your employer makes lump-sum payments for accumulated sick and/or annual leave at the end of each calendar year that is not due to termination, please do not withhold KPERS contributions from those payments.
We apologize for any confusion we may have caused. If you have questions on a specific member, please do not hesitate to contact the InfoLine.
Back to Top(2) Possible Change in the Usual
Open Enrollment Schedule
For Optional Group Life Insurance
The KPERS Board of Trustees has solicited requests for proposals on the life insurance program. Bids were taken on the current basic group life plan. There may be changes in the provisions of the optional life plan which could result in changes in upcoming enrollment periods. KPERS staff will keep designated agents informed of any changes to the optional group life insurance program.
(3) Withdrawals & the 30-Day Special Tax Notice Waiver
Within the instructions of the Withdrawal of Contributions form (K-13) is a section titled "Special Tax Notice Regarding Payments." Within that section is a paragraph called "Your Right to Waive the 30-Day Notice Period." This 30-day notice period that may be waived is not the mandatory 30 days a member must wait from the time a member leaves covered employment to the time a member applies to withdraw.
This is a different 30-day time period when the member can have his or her contributions and interest either rolled over into a qualified individual retirement account or an eligible employer plan, or paid to the member directly. Depending on which option the member chooses, different tax consequences apply. This waiver merely offers the member the opportunity to move forward with a rollover or direct payment before the end of that particular 30-day notice period. That is an entirely separate issue from the statutory 30-day wait to withdraw. Members must wait 30 days from their last day on payroll to apply to withdraw.