DA Memo - January 8, 2007
Information for Local KPERS Employers
1. Contribution Reporting Deadline February 9
Annual contribution reports are due February 9. KPERS’ employer web portal is now available to complete your reports. If you would like to use the web portal and do not have access information or a password, please contact kpersfs@kpers.org or call the InfoLine.
Working After Retirement
The “Working After Retirement” section of the web portal is not yet functional. Please continue to use the current form, Report of Employment for KPERS Retirees (KPERS-1R), available as an Excel spreadsheet at www.kpers.org/form.htm, to enroll new employees. Instructions to report annual compensation for these employees will be issued in a future mailing. Do not report any “working after retirement” information on the portal at this time.
2. Local Employers ― New Employer Contribution Rate
New employer contribution rates for local employers became effective for payroll dates
after January 1, 2007.
KPERS Employer Rate |
varies by employer - please refer to www.kpers.org/contributionrates.htm |
|---|---|
Group Life and Disability Rate |
1.00 percent |
Total Employer Rate |
=(Total Rate) |
The payroll date is the date the employee is actually paid.
Example #1 |
|
|---|---|
| Pay Period | December 16 to December 29 |
| Pay Day | December 29 |
| This pay period is covered by the previous contribution rates because the payroll date is before January 1, 2007. | |
Example #2 |
|
|---|---|
| Pay Period | December 16 to December 29 |
| Pay Day | January 5 |
| This pay period is covered by the new contribution rates because the payroll date is after January 1, 2007. | |
3. New Life Insurance Portability Option
Beginning January 1, 2007, employees covered by basic and optional life insurance can continue their current term life insurance coverage through Minnesota Life. They now have a “portability” option in addition to the current conversion option when they retire, leave employment or lose eligibility.
In the next week, Securian Financial Group (parent company to Minnesota Life) will mail shipments of certificate endorsements and portability forms. If you are an “electronic communication employer,” you will receive your notice by e-mail. Please distribute the certificate endorsements to all covered employees and ask them to keep the endorsements with the certificate they already have. Portability information will be incorporated the next time insurance certificates are printed.
Employers that provide optional group life insurance coverage should have received their shipment last month. If you have not already, please distribute the endorsements.
What You Need to Do
- Distribute certificate endorsements to all covered employees.
- If you do not receive your supply in the next two weeks, please contact Minnesota Life Insurance toll-free at (877) 215-1476.
- Discuss conversion and portability options with employees when they retire, leave employment or lose coverage eligibility.
4. Increased Optional Group Life Insurance Rates
Employers that provide OGLI coverage received a shipment last month from Minnesota Life, including information about portability and the new premium rates for 2007. Please be sure to communicate these new rates with employees. The rate sheet is also available as a PDF or an Excel file at www.kpers.org/ogli.htm.
5. “Working After Retirement” Reporting Reminder
In July 2006, employers began reporting employment status and annual earnings for most KPERS retirees that they employ. Please see the chart below for guidelines. For more detailed information refer to the DA Memo dated June 9, 2006, www.kpers.org/damemos060906.htm.
Re-Employment Category |
Employer Requirements |
Retiree Requirements |
Same KPERS Employer |
Report status and earnings |
30-day waiting period before working |
| Different KPERS Employer |
Report status and earnings |
30-day waiting period before working |
Different KPERS Employer |
Report status and earnings |
30-day waiting period before working |
Non-KPERS Employer |
None |
No waiting period |
Special Exceptions • Licensed nurses at State Institutions (b) • Daily call substitute teachers • Certain legislative staff |
Report status and earnings None None |
30-day waiting period before working |
|
||
Questions?
- kpers@kpers.org
- toll-free (888) 275-5737
- in Topeka (785) 296-6166