DA Memo Update – June 15, 2009
FOR SCHOOL EMPLOYERS
Working After Retirement Update
Information to clarify the June 3 DA Memo, “Working After Retirement Changes From Recent Legislation”
Who Is “Licensed” and Eligible for the Earnings Limit Exemption?
The Department of Education is responsible for accepting licenses from school personnel and has provided a list of positions eligible for the earnings limit exemption.
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Community college employers are not affected by Sen. Sub for HB 2072.
Employer Reporting and Contributions
We have added specific contribution rates. The rate is based on the actuarially required rate, not the current statutory employer rate. If a KPERS retiree is in a licensed position, contributions should be for all compensation, even compensation for duties in addition to the licensed position.
When you hire a retiree, use the enrollment section in the employer web portal. Remember to select “Plan 6” when entering your employer number on the login page. For retirees with an earnings limit, complete a Retiree Earnings Limitation Form (KPERS-15S) if they reach $20,000.
Non-Licensed Employee ─ Return to Work for Same Employer
|
Return to Work Eligibility Date |
Employer Requirements |
Earnings Limit |
Normal
Retirement & |
On & after July 1, 1988 |
Report status & earnings |
$20,000 |
Non-Licensed Employee ─ Return to Work for Different Employer
|
Return to Work Eligibility Date |
Employer Requirements |
Earnings Limit |
|
Normal
Retirement & |
Before July 1, 2006 |
Report status & earnings |
None |
|
On & after July 1, 2006 |
Report status & earnings |
None |
||
| 7/1/09 to 6/30/10 | 16.07% | |||
| 7/1/10 to 6/30/11 | 16.48% | |||
Licensed Employee ─ Return to Work for Same Employer
Return to Work Eligibility Date |
When Compensation Paid |
Employer |
Earnings |
||||||
Normal |
Anytime |
July 1, 2009, through |
Report status & earnings |
None |
|||||
| 7/1/09 to 6/30/10 | 20.07% | ||||||||
| 7/1/10 to 6/30/11 | 20.48% | ||||||||
Early |
Before March 28, 2009 |
July 1, 2009, through |
Report status & earnings |
None |
|||||
| 7/1/09 to 6/30/10 | 20.07% | ||||||||
| 7/1/10 to 6/30/11 | 20.48% | ||||||||
On & after March 28, 2009 |
July 1, 2009, through |
Report status & earnings |
$20,000 |
||||||
Licensed Employee ─ Return to Work for Different Employer
Return to Work Eligibility Date |
When Compensation Paid |
Employer Requirements |
Earnings Limit |
||||
Normal Retirement |
Before July 1, 2006 |
All dates |
Report status & earnings |
None |
|||
July 1, 2006, through |
July 1, 2006, through |
Report status & earnings |
None |
||||
| 7/1/08 to 6/30/09 | 15.95% | ||||||
On & after July 1, 2009 |
Report status & earnings |
None |
|||||
| 7/1/09 to 6/30/10 | 20.07% | ||||||
| 7/1/10 to 6/30/11 | 20.48% | ||||||
On & after July 1, 2009 |
July 1, 2009, through |
Report status & earnings |
None |
||||
| 7/1/09 to 6/30/10 | 20.07% | ||||||
| 7/1/10 to 6/30/11 | 20.48% | ||||||
Early Retirement |
Before July 1, 2006 |
All dates |
Report status & earnings |
None |
|||
July 1, 2006, through |
July 1, 2006, through |
Report status & earnings |
None |
||||
| 7/1/08 to 6/30/09 | 15.95% | ||||||
On & after July 1, 2009 |
Report status & earnings |
None |
|||||
| 7/1/09 to 6/30/10 | 20.07% | ||||||
| 7/1/10 to 6/30/11 | 20.48% | ||||||
On & after March 28, 2009 |
July 1, 2009, through |
Report status & earnings |
None |
||||
| 7/1/09 to 6/30/10 | 20.07% | ||||||
| 7/1/10 to 6/30/11 | 20.48% | ||||||
Licensed Employee ─ Return to Work for Third-Party Entity (TPE) Employer
|
Returned to Work Eligibility Date |
When Compensation Paid |
Employer Requirements |
Earnings |
||
Normal Retirement |
USD contracts with TPE |
All dates |
None |
None |
||
USD contracts with TPE |
July 1, 2009, through |
Report status & earnings |
None |
|||
| 7/1/09 to 6/30/10 | 20.07% | |||||
| 7/1/10 to 6/30/11 | 20.48% | |||||
| Early Retirement | USD contracts with TPE |
All dates |
None |
None |
||
Same Employer contracts with TPE on & after April 1, 2009 |
July 1, 2009, through |
Report status & earnings |
$20,000 |
|||
Different Employer contracts with TPE on & after April 1, 2009 |
July 1, 2009, through |
Report status & earnings |
None |
|||
| 7/1/09 to 6/30/10 | 20.07% | |||||
| 7/1/10 to 6/30/11 | 20.48% | |||||
Current “Working After Retirement” Employees
Later in June, KPERS will send you a list of employees you have already reported as working after retirement before the new legislation. Please confirm this list and note whether the employee is in a licensed or non-licensed position.
The new employer rate will start July 1 for current employees finishing out a 2008-09 school contract. If a school is paying over 12 months or paying a lump sum to an employee, the employer needs to change the contribution rate for compensation paid on or after July 1.
Example:
- Jane Schoolteacher's contract runs from August 2008 through July 31, 2009. The employer remits 15.95 percent for January through June, then remits 20.07 percent for the compensation paid to Jane in July.
- Jack Schoolteacher’s contract runs from August 2008 through July 31, 2009. The employer decides to pay off the 12-month contract in a lump sum in May or June. The entire amount is then at the 15.95 percent rate.
Questions?
Toll-free, 1-888-275-5737
In Topeka, 785-296-6166
E-mail, kpers@kpers.org
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