DA Memo - March 21, 2003

March 21 , 2003

Moratorium on death and disability contributions

The fiscal year 2003 supplemental appropriation bill (Senate Substitute for HB 2026) was signed into law by the Governor and contains substantive language that establishes a contribution moratorium for the death and disability program starting April 1, 2003, through June 30, 2003. Trailing legislation contained in SB 47 is required to implement the intent of the language contained in this appropriation bill. SB 47 has passed the Senate but to date has not passed the House. Because SB 47 may be approved by the Legislature and Governor, we are notifying local employers in advance of the April 1 effective date.

Therefore, for payroll dates after April 1, 2003, do not remit the 0.6 percent insurance portion of the employer contribution rate. If SB 47, or similar legislation, does not pass this legislative session we will notify you to release these insurance contributions to KPERS.

Upon final action of Senate Bill 47, KPERS will notify all local employers of the duration of the moratorium along with the certified employer contribution rates for calendar year 2004.