DA Memo – February 24, 2009

New Moratorium on Death and Disability Contributions Begins March 1, 2009

Active KPERS members are covered by death and long-term disability benefits. Employers pay for the cost of these benefits with employer insurance contributions equal to 1.0 percent of covered payroll.

In light of current and ongoing state budget issues, an appropriations bill has been passed and signed into law that creates a moratorium on employer insurance contributions to the death and disability program. This includes first-day coverage, if you have it. The moratorium is set to begin March 1, 2009, and continue through November 30, 2009. Substantive legislation is still needed to implement the appropriations bill. This legislation (SB 219) has passed in the Senate and is pending in the House. Because of the quick implementation, we are notifying employers in advance.

While employer insurance contributions will stop, benefits will continue. Actual death and disability benefits are not affected and employees will still be covered.

What’s Next
1. Do not remit the 1.0 percent insurance portion of your employer contribution rate for payroll dates after March 1, 2009. “Payroll dates” means the date employees are actually paid. Some may call it a payroll warrant date.

2. KPERS will notify you when SB 219 passes. We will also provide certified employer contribution rates
for calendar year 2010.

3. If SB 219 does not pass, we will notify you to remit the death and disability insurance contributions.

Questions?
• Toll-free, 1-888-275-5737
• In Topeka, 296-6166
• E-mail, kpersFS@kpers.org